<Page>
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OMB APPROVAL
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OMB Number: 3235-0570
Expires: November 30, 2005
Estimated average burden
hours per response....... 5.0
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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 811-05309
---------------------------------------------
First American Investment Funds, Inc.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
800 Nicollet Mall Minneapolis, MN 55402
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jonathan P. Lillemoen 800 Nicollet Mall Minneapolis, MN 55402
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(Name and address of agent for service)
Registrant's telephone number, including area code: 800-677-3863
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Date of fiscal year end: September 30, 2003
--------------------------
Date of reporting period: September 30, 2003
-------------------------
Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its
regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street,
NW, Washington, DC 20549-0609. The OMB has reviewed this collection of
information under the clearance requirements of 44 U.S.C. Section 3507.
<Page>
Item 1. Report to Shareholders
<Page>
[GRAPHIC]
[FIRST AMERICAN FUNDS(TM) LOGO]
2003
ANNUAL REPORT
STOCK
FUNDS
"NOTHING BUT HARMONY, HONESTY, INDUSTRY, AND FRUGALITY ARE NECESSARY TO MAKE US
A GREAT AND HAPPY PEOPLE."
GEORGE WASHINGTON
JANUARY 29, 1789
<Page>
FIRST AMERICAN FUNDS
OUR IMAGE-GEORGE WASHINGTON
HIS RICH LEGACY AS PATRIOT AND LEADER IS WIDELY RECOGNIZED AS EMBODYING THE
SOUND JUDGMENT, RELIABILITY, AND STRATEGIC VISION THAT ARE CENTRAL TO OUR BRAND.
FASHIONED IN A STYLE REMINISCENT OF AN 18TH CENTURY ENGRAVING, THE ILLUSTRATION
CONVEYS THE SYMBOLIC STRENGTH AND VITALITY OF WASHINGTON, WHICH ARE ATTRIBUTES
THAT WE VALUE AT FIRST AMERICAN FUNDS.
TABLE OF CONTENTS
<Table>
Message to Shareholders 1
Report of Independent Auditors 29
SECTOR FUNDS 30
Schedule of Investments 36
Statements of Assets and Liabilities 37
Statements of Operations 38
Statements of Changes in Net Assets 40
Financial Highlights
INTERNATIONAL FUND 42
Schedule of Investments 45
Statement of Assets and Liabilities 46
Statement of Operations 47
Statements of Changes in Net Assets 48
Financial Highlights
SMALL CAP FUNDS 50
Schedule of Investments 59
Statements of Assets and Liabilities 60
Statements of Operations 61
Statements of Changes in Net Assets 62
Financial Highlights
MID CAP FUNDS 70
Schedule of Investments 77
Statements of Assets and Liabilities 78
Statements of Operations 79
Statements of Changes in Net Assets 80
Financial Highlights
LARGE CAP FUNDS 82
Schedule of Investments 91
Statements of Assets and Liabilities 92
Statements of Operations 93
Statements of Changes in Net Assets 94
Financial Highlights
GROWTH & INCOME FUNDS 98
Schedule of Investments 109
Statements of Assets and Liabilities 110
Statements of Operations 111
Statements of Changes in Net Assets 112
Financial Highlights
Notes to Financial Statements 114
Notice to Shareholders 130
</Table>
MUTUAL FUND INVESTING INVOLVES RISK; PRINCIPAL LOSS
IS POSSIBLE.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
<Page>
MESSAGE TO SHAREHOLDERS November 14, 2003
DEAR SHAREHOLDERS:
We invite you to take a few minutes to review the results of the fiscal year
ended September 30, 2003.
This report includes comparative performance graphs and tables, portfolio
commentaries, complete listings of portfolio holdings, and additional fund
information. We hope you will find this helpful in monitoring your investment
portfolio.
Also, through our website firstamericanfunds.com, we provide quarterly
performance fact sheets on all First American funds, the economic outlook as
viewed by our senior investment officers, and other information about fund
investments and portfolio strategies.
Please contact your financial professional if you have questions about First
American Funds or contact First American Investor Services at 800.677.FUND.
We appreciate your investment with First American Funds and look forward to
serving your financial needs in the future.
Sincerely,
/s/ Virginia L. Stringer /s/ Thomas S. Schreier, Jr.
VIRGINIA L. STRINGER THOMAS S. SCHREIER, JR.
CHAIRPERSON OF THE BOARD PRESIDENT
FIRST AMERICAN INVESTMENT FUNDS, INC. FIRST AMERICAN INVESTMENT FUNDS, INC.
1
<Page>
REAL ESTATE SECURITIES FUND
Investment Objective: TO PROVIDE ABOVE-AVERAGE CURRENT INCOME AND LONG-TERM
CAPITAL APPRECIATION
First American Real Estate Fund Class Y shares returned 26.19% for the fiscal
year (Class A shares returned 25.83% at net asset value for the same period). By
comparison, the Fund's benchmark, the Morgan Stanley REIT Index*, returned
25.11%.
Weakness in the U.S. economy was responsible for deterioration in real estate
fundamentals, leading to a decrease in occupancy levels and rental rates for
most property types during the fiscal year. Despite this deterioration,
investors remained attracted to "hard assets" with attractive yields, such as
real estate. This helped advance real estate securities prices as well as the
performance of the Fund.
During the fiscal year, the Fund took a moderately defensive position and
maintained its emphasis on high-quality stocks that have the potential for
superior earnings growth. Overall, the Fund's holdings in the office, hotel,
mall, shopping center, and industrial sectors were the top sector strategies
that contributed to performance, while the diversified, specialty, and
self-storage sectors detracted from performance.
The Fund's outperformance relative to the Morgan Stanley REIT Index was
primarily due to its overweight positions in the regional mall and industrial
sectors. Consumers, despite the general weakness in the economy, continued to
spend during the fiscal year leading to outperformance in the regional mall
sector relative to the benchmark. Additionally, the Fund's overweight position
in the industrial sector proved beneficial as investors sought its defensive
characteristics relative to the office and apartment sectors.
The Fund's position in Starwood Hotels & Resorts, the top-performing hotel in
the hotel sector during the fiscal year, added to performance. Overweight
positions relative to the Fund's benchmark in Chelsea Property Group, a factory
outlet center owner, and General Growth Properties, a regional mall owner, also
benefited performance. An underweight position in Equity Office Properties
Trust, the nation's largest office building owner and manager, also contributed
positively to performance.
Conversely, the Fund's underweight position in Equity Residential Properties
Trust, the largest publicly traded owner and operator of multifamily residential
properties, detracted from performance. Also detracting from performance was the
Fund's overweight position in Prentiss Properties, an office property developer.
Finally, the Fund's benchmark neutral position in Hospitality Properties Trust
in the hotel sector hurt performance as this holding underperformed relative to
the Fund's benchmark.
2
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
--------------------------------------------------
1 YEAR 5 YEARS 6/30/1995 9/29/1995 2/1/2000 9/24/2001
Class A NAV 25.83% 12.42% -- 12.37% -- --
Class A POP 18.88% 11.16% -- 11.58% -- --
Class B NAV 24.93% 11.59% -- 11.50% -- --
Class B POP 19.93% 11.33% -- 11.50% -- --
Class C NAV 24.88% -- -- -- 18.27% --
Class C POP 22.62% -- -- -- 17.94% --
Class S 25.80% -- -- -- -- 20.31%
Class Y 26.19% 12.72% 12.94% -- -- --
Morgan Stanley REIT Index(3) 25.11% 11.59% 12.14% 11.97% 15.07% 16.54%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CLASS A
<Table>
<Caption>
FIRST AMERICAN REAL ESTATE FIRST AMERICAN REAL ESTATE
SECURITIES FUND, CLASS A NAV SECURITIES FUND, CLASS A POP MORGAN STANLEY REIT INDEX(3)
9/1995 10000 9452 10000
9/1996 11817 11171 11827
9/1997 16163 15279 16661
9/1998 14155 13381 14285
9/1999 13321 12592 13445
9/2000 16875 15952 16302
9/2001 18341 17338 18197
9/2002 20203 19098 19755
9/2003 25421 24030 24713
</Table>
[CHART]
CLASS Y
<Table>
<Caption>
FIRST AMERICAN REAL ESTATE
SECURITIES FUND, CLASS Y MORGAN STANLEY REIT INDEX(3)
6/1995 10000 10000
9/1995 10519 10411
9/1996 12468 12313
9/1997 17091 17346
9/1998 15009 14872
9/1999 14163 13998
9/2000 17980 16972
9/2001 19601 18945
9/2002 21639 20567
9/2003 27306 25724
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Index is for illustrative purposes
only and is not available for investment. Sector funds such as the First
American Real Estate Securities Fund are more vulnerable to price
fluctuation as a result of events that may affect the industry in which
they focus than are funds that invest in multiple industries. Share prices
of sector funds also will fluctuate with changing market conditions, as
will share prices of other stock funds. Sector funds should not be treated
as a core investment; rather, their role is to round out the growth portion
of a well-diversified investment portfolio.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares.
Total returns assume reinvestment of all distributions at NAV.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) An unmanaged index of the most actively traded real estate investment
trusts.
(4) The performance since inception for the index is calculated from the month
end following the inception of the class.
3
<Page>
TECHNOLOGY FUND
Investment Objective: LONG-TERM GROWTH OF CAPITAL
First American Technology Fund Class Y shares returned 64.71% for the fiscal
year (Class A shares returned 64.34% at net asset value for the same period). By
comparison, the Fund's benchmark, the Merrill Lynch 100 Technology Index*,
returned 84.99%.
Economic and market conditions were generally positive during the fiscal year
ended September 30, 2003. Given that the recession ended nearly a year ago and
that inventories of technology components and production equipment were
generally low, modest economic growth during the year had a significant impact
on the profitability of many technology companies. However, anticipation of
higher-than-normal technology profitability, reminiscent of the "bubble" period
in the late 1990s, caused more volatile, lower-quality stocks to appreciate more
rapidly than technology companies with proven business models and sustainable
cash flows, such as those in which the Fund seeks to invest. This was the
primary reason for the Fund's underperformance vs. its benchmark during fiscal
2003.
The Fund's strategy is to hold positions in companies that exhibit positive cash
flow, a strong competitive position, strong and ongoing relationships with
customers, above-average growth in revenues, and a sound balance sheet.
Investments that met these requirements, and outperformed the benchmark, include
Amkor, Chippac, Altiris, ATI Technologies, and Applied Films. However, these
solid performers were offset by underperforming holdings in Monolithic Systems
and Given Imaging, and by stocks in the benchmark that we didn't hold, including
Corning, Seagate Technology, and Scientific-Atlanta.
The Fund benefited from its consistent underweight position in
telecommunications equipment companies, which were relative underperformers
during the year. It's worth noting, however, that many of the Internet stocks
(e.g., Amazon.com, Yahoo, and eBay), which are in the Fund's benchmark, but
which the Fund either owned briefly or not at all, were among the benchmark's
best performers for the year. These names were among those that helped the
benchmark outperform the Fund during the year.
4
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
-----------------------------------------------
1 YEAR 5 YEARS 4/4/1994 8/15/1994 2/1/2000 9/24/2001
Class A NAV 64.34% -5.28% 5.41% -- -- --
Class A POP 55.29% -6.35% 4.79% -- -- --
Class B NAV 62.95% -6.00% -- 4.99% -- --
Class B POP 57.95% -6.22% -- 4.99% -- --
Class C NAV 63.33% -- -- -- -38.26% --
Class C POP 60.80% -- -- -- -38.43% --
Class S 63.64% -- -- -- -- 0.50%
Class Y 64.71% -4.99% 5.66% -- -- --
Merrill Lynch 100 Technology Index(3) 84.99% 4.89% 12.81% 12.65% -23.52% 9.84%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CHART A
Technology Fund
<Table>
<Caption>
FIRST AMERICAN TECHNOLOGY FUND, FIRST AMERICAN TECHNOLOGY FUND, MERRILL LYNCH 100 TECHNOLOGY
CLASS A NAV CLASS A POP INDEX(3)
4/1995 10000 9452 10000
9/1994 11190 10577 10739
9/1994 18600 17580 16929
9/1996 22060 20851 19600
9/1997 25966 24542 25694
9/1998 21632 20446 24509
9/1999 49474 46762 51920
9/2000 89108 84223 88894
9/2001 14879 14063 25790
9/2002 10036 9486 17013
9/2003 16493 15589 31492
</Table>
CLASS Y
<Table>
<Caption>
FIRST AMERICAN TECHNOLOGY FUND, MERRILL LYNCH 100 TECHNOLOGY
CLASS Y INDEX(3)
4/1995 10000 10000
9/1996 11190 10739
9/1997 18600 16929
9/1998 22106 19600
9/1999 26074 25694
9/2000 21794 24509
9/2001 50022 51920
9/2002 90393 88894
9/2003 15131 25790
9/2003 10242 17013
9/2003 16868 31492
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Index is for illustrative purposes
only and is not available for investment. Sector funds such as the First
American Technology Fund are more vulnerable to price fluctuation as a
result of events that may affect the industry in which they focus than are
funds that invest in multiple industries. Share prices of sector funds also
will fluctuate with changing market conditions, as will share prices of
other stock funds. Sector funds should not be treated as a core investment;
rather, their role is to round out the growth portion of a well diversified
investment portfolio.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares.
Total returns assume reinvestment of all distributions at NAV.
The Technology Fund's 1999 returns were higher due in part to its strategy
of investing in IPOs and technology-related stocks in a period favorable
for IPO investing. Of course, such favorable returns involve accepting the
risk of volatility, and there is no assurance that the Fund's future
investment in IPOs and technology stocks will have the same effect on
performance as it did in 1999. Investments in the First American Technology
Fund are more vulnerable to price fluctuation as a result of the narrow
focus of technology investing and the fact that the products of companies
in which the Fund invests may be subject to rapid obsolescence.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) An equally weighted index of the 100 largest technology companies, as
measured by market capitalization.
(4) The performance since inception for the index is calculated from the month
end following the inception of the class.
5
<Page>
INTERNATIONAL FUND
Investment Objective: LONG-TERM GROWTH OF CAPITAL
First American International Fund Class Y shares returned 22.97% for the fiscal
year (Class A shares returned 22.65% at net asset value for the same period). By
comparison, the Fund's benchmark, the MSCI EAFE Index*, returned 26.54%.
The Fund was positioned to benefit from anticipated economic and earnings growth
during the fiscal year. To take advantage of this conviction, the Fund took an
overweight position relative to its benchmark in the Asian markets as well as in
the industrial and consumer discretionary sectors. Unfortunately, these economic
and market conditions did not develop until midway through the second quarter of
2003, detracting from performance for the overall fiscal year.
The Fund's strategy is to hold securities that provide steady, sustainable
earnings growth rates and that sell at a multiple lower than the average for
that growth rate in the local market. While the managers of the Fund remained
focused on the growth prospects of companies in 2004 and beyond, the market was
preoccupied with shorter-term issues. Until the second quarter of 2003, investor
confidence in growth-oriented companies and the quality of their longer-term
earnings estimates was compromised by weak economic growth, tension in Iraq,
banking and deflation concerns in Japan, Severe Acute Respiratory Syndrome
(SARS) in China and Southeast Asia, and higher oil prices. However, in the last
two quarters of the fiscal year, general global stability increased and
corporate earnings began to expand and exceed expectations. This environment was
more favorable to the strategy of the Fund, providing better results for the
second half of the fiscal year.
The Fund's underperformance for the year can also be attributed to stock
selection in Europe, specifically in the European consumer discretionary sector
(media, retailing, and consumer durables), with continental European growth
still quite slow. The Fund's Japanese financials sector exposure also diminished
results. These disappointments were largely offset, however, by good relative
returns from the Fund's exposures to the emerging markets, to the European
financials sector, and to the Japanese consumer discretionary and information
technology groups, which posted strong returns in the last two quarters of the
fiscal year.
6
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
-------------------------------------------------------------
1 YEAR 5 YEARS 4/4/1994 4/24/1994 5/2/1994 3/6/1995 9/24/2001
Class A NAV 22.65% 1.83% -- -- 3.15% -- --
Class A POP 15.85% 0.68% -- -- 2.54% -- --
Class B NAV 21.75% 1.06% -- -- -- 3.37% --
Class B POP 16.75% 0.75% -- -- -- 3.37% --
Class C NAV 21.72% -- -- -- -- -- 1.89%
Class C POP 19.54% -- -- -- -- -- 1.41%
Class S 22.85% 1.80% -- 3.32% -- -- --
Class Y 22.97% 2.10% 3.55% -- -- -- --
MSCI EAFE Index(3) 26.54% 0.87% 2.50% 2.50% 2.58% 2.53% 3.55%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CLASS A
<Table>
<Caption>
FIRST AMERICAN INTERNATIONAL FUND, FIRST AMERICAN INTERNATIONAL FUND,
CLASS A NAV CLASS A POP MSCI EAFE INDEX(3)
5/1994 10000 9452 10000
11/1994 9778 9242 9998
11/1995 10641 10058 10788
11/1996 11920 11266 12092
11/1997 12220 11550 12076
11/1998 14097 13324 14103
11/1999 19260 18204 17127
10/2000 18562 17545 16107
9/2001 13365 12632 11830
9/2002 10921 10322 10024
9/2003 13394 12660 12684
</Table>
[CHART]
CLASS Y
<Table>
<Caption>
FIRST AMERICAN INTERNATIONAL FUND,
CLASS Y MSCI EAFE INDEX(3)
4/1994 10000 10000
11/1994 9924 9943
11/1995 10807 10729
11/1996 12147 12025
11/1997 12497 12010
11/1998 14458 14025
11/1999 19817 17032
10/2000 19167 16017
9/2001 13813 11764
9/2002 11320 9968
9/2003 13920 12614
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Index is for illustrative purposes
only and is not available for investment. International investing involves
risks not typically associated with domestic investing, including risks of
adverse currency fluctuations, potential political and economic instability,
different accounting standards, foreign government regulations, currency
exchange rates, limited liquidity, and volatile prices.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares. Total
returns assume reinvestment of all distributions at NAV.
On July 1, 2001, Clay Finlay Inc. was hired as subadvisor to manage the
Fund's assets. On September 24, 2001, the First American International Fund
merged with Firstar International Growth Fund and Firstar International
Value Fund, both subadvised by Clay Finlay Inc. Performance history prior to
September 24, 2001, represents that of the Firstar International Growth
Fund.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) The MSCI EAFE (Morgan Stanley Capital International, Europe, Australasia,
Far East) Index is an unmanaged index including approximately 1,000
companies representing the stock markets of 21 countries in Europe,
Australasia, and the Far East.
(4) The performance since inception for the index is calculated from the month
end following the inception of the class.
7
<Page>
SMALL CAP GROWTH OPPORTUNITIES FUND
Investment Objective: GROWTH OF CAPITAL
First American Small Cap Growth Opportunities Fund Class Y shares returned
58.74% for the fiscal year (Class A shares returned 58.37% at net asset value
for the same period). By comparison, the Fund's benchmark, the Russell 2000
Growth Index*, returned 41.72%.
After several years of a bear market, our outlook anticipated that fiscal
stimulus and cheap valuations would combine to deliver positive investment
returns. Therefore, the Fund was positioned to emphasize the technology and
consumer discretionary sectors while limiting its relative exposure to more
defensive sectors such as financials and healthcare. Our positioning proved
successful, as the Fund outperformed its benchmark during the fiscal year ended
September 30, 2003.
Throughout the course of the year, the Fund was skewed toward a smaller weighted
average market capitalization relative to the Russell 2000 Growth Index. This
proved to be the primary driver of outperformance relative to the Fund's
benchmark. As the war in Iraq came to a close, the perceived risk within the
stock market decreased, leading to an increase in the trading activity of
smaller-cap stocks.
The smallest of these stocks proved to be the largest beneficiaries of these
events. Additionally, several of the Fund's small-cap holdings were involved in
merger and acquisition activity as they represented solid growth opportunity at
an attractive price. Acquirers paid significant premiums for these companies,
adding further to Fund performance.
The Fund benefited from a consistent overweight position in the technology
sector, specifically in the semiconductor and semiconductor capital equipment
industries, which significantly outperformed the market. The largest individual
contributors to performance included Applied Films Corporation, Photon Dynamics,
and Wabash National Corporation.
Our positions in the media and retail sectors had the largest negative impact on
overall performance for the year. Individual positions with the largest negative
contribution included 4Kids Entertainment, Array BioPharma, Inc., and Cosi.
Among these securities, only 4Kids Entertainment remained in the Fund as of
September 30, 2003.
8
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
-------------------------------------------------
1 YEAR 5 YEARS 8/1/1995 3/1/1999 12/11/2000 9/24/2001
Class A NAV 58.37% 28.42% 24.24% -- -- --
Class A POP 49.62% 26.96% 23.39% -- -- --
Class B NAV 57.21% -- -- 26.49% -- --
Class B POP 52.21% -- -- 26.30% -- --
Class C NAV 57.23% -- -- -- -- 15.05%
Class C POP 54.65% -- -- -- -- 14.46%
Class S 58.37% -- -- -- 3.40% --
Class Y 58.74% 28.76% 24.56% -- -- --
Russell 2000 Growth Index(3) 41.72% 2.75% 2.62% -0.54% -6.37% 7.70%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CLASS A
<Table>
<Caption>
FIRST AMERICAN SMALL CAP GROWTH FIRST AMERICAN SMALL CAP GROWTH
OPPORTUNITIES FUND, CLASS A NAV OPPORTUNITIES FUND, CLASS A POP RUSSELL 2000 GROWTH INDEX(3)
8/1995 10000 9452 10000
10/1995 11100 10492 9870
10/1996 17137 16197 11120
10/1997 22240 21021 13415
10/1998 17411 16456 11241
10/1999 30736 29051 14471
10/2000 57608 54450 16754
9/2001 45215 42736 10436
9/2002 37151 35114 8498
9/2003 58835 55610 11954
</Table>
[CHART]
CLASS Y
<Table>
<Caption>
FIRST AMERICAN SMALL CAP GROWTH
OPPORTUNITIES FUND, CLASS Y RUSSELL 2000 GROWTH INDEX(3)
8/1995 10000 10000
10/1995 11110 9870
10/1996 17189 11120
10/1997 22366 13415
10/1998 17555 11241
10/1999 31083 14471
10/2000 58403 16754
9/2001 45943 10436
9/2002 37848 8498
9/2003 60080 11954
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Index is for illustrative purposes
only and is not available for investment. Stocks of small-capitalization
companies involve substantial risk. These stocks historically have
experienced greater price volatility than stocks of larger companies, and
they may be expected to do so in the future.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares. Total
returns assume reinvestment of all distributions at NAV.
On December 12, 2002, the Fund changed its main investment strategy such
that it was permitted to invest in securities of companies with market
capitalizations within the range of companies in the Russell 2000 Index.
Previously, the Fund invested primarily in companies with market
capitalizations of below $500 million at the time of purchase.
On September 24, 2001, the First American Small Cap Growth Opportunities
Fund became the successor by merger to the Firstar MicroCap Fund, a series
of Firstar Funds, Inc. Prior to the merger, the First American fund had no
assets or liabilities. Performance presented prior to September 24, 2001,
represents that of the Firstar MicroCap Fund.
The First American Small Cap Growth Opportunities Fund's 1999 returns were
higher due in substantial part to its strategy of investing in IPOs in a
period favorable for IPO investing. Of course, such favorable returns
involve accepting the risk of volatility, and there is no assurance that the
Fund's future investment in IPOs will have the same effect on performance as
it did in 1999.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) An unmanaged index that measures the performance of those companies in the
Russell 2000 Index with higher price-to-book ratios and higher forecasted
growth values. The Russell 2000 Index is an unmanaged index that measures
the performance of the 2,000 smallest companies in the Russell 3000 Index,
which represents approximately 8% of the total market capitalization of the
Russell 3000 Index. The Russell 3000 Index measures the performance of the
3,000 largest U.S. companies based on total market capitalization, which
represents approximately 98% of the investable U.S. equity market.
(4) The performance since inception for the index is calculated from the month
end following the inception of the class.
9
<Page>
SMALL CAP SELECT FUND
Investment Objective: CAPITAL APPRECIATION
First American Small Cap Select Fund Class Y shares returned 36.18% for the
fiscal year (Class A shares returned 35.96% at net asset value for the same
period). By comparison, the Fund's benchmark, the S&P SmallCap 600 Index*,
returned 26.86%.
Decreasing interest rates, rising housing values, inventory reductions, and
personal income tax cuts offset concerns over the war in Iraq and provided a
catalyst for economic and profit recovery during the fiscal year. In
anticipation, the Fund took overweight positions in the information technology
and consumer discretionary sectors as these sectors would benefit from increased
corporate capital expenditures and consumer spending. The Fund took underweight
positions in traditionally defensive sectors such as utilities and consumer
staples, as they presented very few attractive investment opportunities. These
strategies proved successful and were the primary drivers of outperformance
relative to the Fund's benchmark.
Within the small-cap universe, micro-cap stocks (companies with market
capitalizations ranging from approximately $23 million to $2.6 billion)
dramatically outperformed small-caps overall as these issues were the biggest
beneficiaries of increased liquidity in the small-cap universe. Broadly
characterized as lower-quality companies due to business continuation risks
during recessions, the micro-cap issues soared when the economy and stock market
showed signs of life. While most of the micro-cap universe doesn't offer the
characteristics we seek, select investments were made in the micro-cap sector
when possible and contributed positively to performance.
During the first half of the fiscal year, the Fund increased its exposure to
economically sensitive stocks, especially growth stocks. The majority of the
opportunities fell within the information technology and consumer discretionary
sectors. Individual stocks within the technology sector that were the biggest
contributors to the Fund's return were Research in Motion (a provider of
wireless solutions), Skyworks (a manufacturer of semiconductors for cellular
phones) and Photon Dynamics (a manufacturer of flat panel screens). Within the
consumer discretionary sector Navistar (a manufacturer of truck engines) and
Cracker Barrel (a restaurant) were the biggest contributors to the Fund's
performance.
Additionally, the Fund benefited from a large overweight in the energy sector in
the first half of the year. Specifically, stocks that had exposure to the
nation's natural gas supply shortage drove significant relative outperformance
vs. the Fund's benchmark. Patterson UTI Energy (a manufacturer of land-based
drilling rigs) and Ultra Petroleum (an exploration and production company) were
the largest contributors to the Fund's performance within this sector.
Overall, there were no sectors that materially detracted from performance.
Individual stocks that detracted from performance were spread across a number of
sectors, with the biggest detractors falling in the technology sector. THQ (a
software publisher and developer) and Integrated Device Technology (a
manufacturer of semiconductors for telecommunications networking equipment) were
the largest detractors in the technology sector. 4Kids Entertainment (a
licensing agent) was the biggest detractor in the consumer discretionary sector.
10
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
--------------------------------------
1 YEAR 5 YEARS 10 YEAR 12/31/1993 3/6/1995 9/24/2001
Class A NAV 35.96% 13.16% 9.69% -- -- --
Class A POP 28.50% 11.89% 9.07% -- -- --
Class B NAV 34.88% 12.37% -- -- 8.80% --
Class B POP 29.88% 12.12% -- -- 8.80% --
Class C NAV 34.84% -- -- -- -- 14.20%
Class C POP 32.47% -- -- -- -- 13.63%
Class S 35.93% 13.21% -- 9.11% -- --
Class Y 36.18% 13.47% 9.98% -- -- --
S&P SmallCap 600 Index(3) 26.86% 10.20% 10.11% 10.17% 11.79% 11.62%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CLASS A
<Table>
<Caption>
FIRST AMERICAN SMALL CAP SELECT FUND, FIRST AMERICAN SMALL CAP SELECT FUND,
CLASS A NAV CLASS A POP S&P SMALLCAP 600 INDEX(3)
11/1993 10000 9452 10000
11/1994 10737 10150 9634
11/1994 13042 12329 12617
11/1995 14132 13359 15379
11/1996 16881 15958 19153
11/1997 14486 13694 18126
11/1999 16979 16051 20030
10/2000 22014 20810 24083
9/2001 19233 18182 21392
9/2002 18357 17353 21009
9/2003 24957 23593 26652
</Table>
[CHART]
CLASS Y
<Table>
<Caption>
FIRST AMERICAN SMALL CAP SELECT FUND,
CLASS Y S&P SMALLCAP 600 INDEX(3)
11/1993 10000 10000
11/1994 10755 9634
11/1994 13089 12617
11/1995 14239 15379
11/1996 17053 19153
11/1997 14682 18126
11/1999 17262 20030
10/2000 22441 24083
9/2001 19638 21392
9/2002 18816 21009
9/2003 25624 26652
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Index is for illustrative purposes
only and is not available for investment. Stocks of small-capitalization
companies involve substantial risk. These stocks historically have
experienced greater price volatility than stocks of larger companies, and
they may be expected to do so in the future.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares.
Total returns assume reinvestment of all distributions at NAV.
On September 24, 2001, the First American Small Cap Select Fund became the
successor by merger to the Firstar SmallCap Core Equity Fund, a series of
Firstar Funds, Inc. Prior to the merger, the First American fund had no
assets or liabilities. Performance presented prior to September 24, 2001,
represents that of the Firstar SmallCap Core Equity Fund. The Firstar
SmallCap Core Equity Fund was organized on November 27, 2000, and prior to
that, was a separate series of Mercantile Funds, Inc.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) An unmanaged, capitalization-weighted index that measures the performance
of selected U.S. stocks with small market capitalizations.
(4) The performance since inception for the index is calculated from the month
end following the inception of the class.
11
<Page>
SMALL CAP VALUE FUND
Investment Objective: CAPITAL APPRECIATION
First American Small Cap Value Fund Class Y shares returned 27.10% for the
fiscal year (Class A shares returned 26.86% at net asset value for the same
period). By comparison, the Fund's benchmark, the Russell 2000 Value Index*,
returned 31.66%.
After a modest early rally and a subsequent sell-off in the first half of the
fiscal year ended September 30, 2003, equity markets began to rebound sharply in
the fiscal third quarter in anticipation of stronger economic conditions and a
recovery in corporate earnings. The Fund benefited from the particular strength
in small-caps over the second half of the year. While they underperformed
small-cap growth stocks, small-cap value stocks did perform better than most
broad market measures, providing the Fund with strong absolute performance.
Fund performance relative to the benchmark lagged, with the Fund underweight in
the two best performing sectors of the year, technology and telecommunications.
The Fund's investment bias toward high-quality stocks also contributed to its
relative underperformance as the market preferred riskier stocks, believing that
an economic rebound would have a more profound effect on the more volatile
companies. The Fund's performance relative to the benchmark was further hampered
by lower exposure to stocks possessing dividend income, higher earnings
variability, and price volatility. While the Fund does not attempt to time the
market, a modest cash position in the Fund was also a drag on performance given
the overall strength of the equity markets during the fiscal year.
The Fund benefited from an overweight position relative to its benchmark in the
healthcare sector as strong earnings trends allowed the group to outperform the
broader index. Additionally, the Fund benefited from an underweight position in
consumer staples, a sector that underperformed given its less-cyclical nature.
Lingering concerns about capacity and pricing in the basic materials sector also
helped performance given the Fund's relatively small exposure in that sector.
Several individual stocks had a notable impact on Fund performance. The Fund's
position in ITT Educational Services, a provider of technology-oriented
post-secondary degree programs, outperformed the benchmark as enrollment trends
increased. Similarly, strong disk drive markets aided the performance of
Innovex, a stock that has recently been sold from the Fund for deviating from
our valuation discipline. Budget concerns among government and public customers
slowed growth at ProQuest (a provider of information and content to the
library/education and automotive/power sports industries), the Fund's largest
holding, causing the stock to fall. The general underperformance of defense and
aerospace names, combined with the tragic space shuttle Columbia disaster,
weighed on the shares of Alliant Techsystems, one of the Fund's largest
holdings.
12
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
--------------------------------------
1 YEAR 5 YEARS 10 YEARS 11/24/1997 2/1/1999 9/24/2001
Class A NAV 26.86% 9.72% 11.56% -- -- --
Class A POP 19.83% 8.49% 10.92% -- -- --
Class B NAV 25.93% 8.85% -- 3.52% -- --
Class B POP 20.93% 8.56% -- 3.42% -- --
Class C NAV 25.94% -- -- -- 7.96% --
Class C POP 23.58% -- -- -- 7.72% --
Class S 26.79% -- -- -- -- 13.65%
Class Y 27.10% 9.99% 11.79% -- -- --
Russell 2000 Value Index(3) 31.66% 10.84% 11.29% 6.99% 10.14% 13.90%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CLASS A
<Table>
<Caption>
FIRST AMERICAN SMALL CAP VALUE FUND, FIRST AMERICAN SMALL CAP VALUE FUND,
CLASS A NAV CLASS A POP RUSSELL 2000 VALUE INDEX(3)
9/1993 10000 9452 10000
9/1994 10847 10247 10200
9/1995 15324 14476 11800
9/1996 17724 16743 13070
9/1997 25130 23739 18209
9/1998 18768 17729 15544
9/1999 20855 19701 16047
9/2000 25691 24270 18026
9/2001 24057 22726 18580
9/2002 23530 22228 17928
9/2003 29849 28198 23129
</Table>
[CHART]
CLASS Y
<Table>
<Caption>
FIRST AMERICAN SMALL CAP VALUE FUND,
CLASS Y RUSSELL 2000 VALUE INDEX(3)
9/1993 10000 10000
9/1994 10847 10200
9/1995 15254 11800
9/1996 17794 13070
9/1997 25278 18209
9/1998 18932 15544
9/1999 21082 16047
9/2000 26050 18026
9/2001 24421 18580
9/2002 23975 17928
9/2003 30471 23129
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Index is for illustrative purposes
only and is not available for investment. Stocks of small-capitalization
companies involve substantial risk. These stocks have historically
experienced greater price volatility than stocks of larger companies, and
they may be expected to do so in the future.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares.
Total returns assume reinvestment of all distributions at NAV.
Performance prior to August 1, 1994, is that of the Small Company Value
Trust Fund, a predecessor collective trust fund. On August 1, 1994,
substantially all of the assets of the Small Company Value Trust Fund were
transferred into Qualivest Small Companies Value Fund, a mutual fund
registered under the Investment Company Act of 1940. On November 21, 1997,
the First American Small Cap Value Fund became the successor by merger to
Qualivest Small Companies Value Fund. Small Company Value Trust Fund was
not registered under the Investment Company Act of 1940 and therefore was
not subject to certain investment restrictions that might have adversely
affected performance.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) An unmanaged index that measures the performance of those Russell 2000
companies with lower price-to-book ratios and lower forecasted growth
values. The Russell 2000 Index is an unmanaged index comprised of the
smallest 2,000 companies in the Russell 3000 index, which represent
approximately 8% of the total market capitalization of the Russell 3000
Index. The Russell 3000 Index is composed of 3,000 large U.S. companies
based on total market capitalization, representing approximately 98% of the
investable U.S. equity market.
(4) The performance since inception for the index is calculated from the month
end following the inception of the class.
13
<Page>
MID CAP GROWTH OPPORTUNITIES FUND
Investment Objective: CAPITAL APPRECIATION
First American Mid Cap Growth Opportunities Fund Class Y shares returned 27.63%
for the fiscal year (Class A shares returned 27.33% at net asset value for the
same period). By comparison, the Fund's benchmark, the Russell Midcap Growth
Index*, returned 38.89%.
The market's strong advance during the fiscal year ended September 30, 2003, was
in direct response to an improving economic environment. This was particularly
the case following the war in Iraq. The government passed tax concessions, and
when combined with continued "cash-out" refinancing activity, the U.S. consumer
had a dramatic increase in purchasing power. Increased consumer spending and a
return of capital spending by corporations started to translate into higher
corporate profits, and equities responded favorably.
During the past year, the Fund's benchmark changed from the S&P MidCap 400 Index
to the Russell Midcap Growth Index. The Fund's benchmark changed as a result of
the advisor's belief that the Russell Midcap Growth Index was a better measure
of the Fund's investment objective-capital appreciation. This change led to a
repositioning of the Fund relative to the Russell Midcap Growth Index as the
Fund's previous benchmark, the S&P MidCap 400 Index, had significantly lower
weightings in the healthcare, consumer discretionary, and technology sectors and
significantly higher weightings in the financial, energy, and utility sectors.
The most significant factor in the Fund's underperformance, relative to the
benchmark, was the underweight position in technology, the best performing
equity sector during the fiscal year. Another sector that had a negative impact
on performance was consumer discretionary. This negative impact was due to an
overweight position in the media sector throughout the year, as well as poor
stock selection within the sector. This included significant positions in
Scholastic Corporation, Westwood One, and Catalina Marketing, which were all
down for the year on disappointing fundamentals. Other companies in other
sectors that detracted from performance were Arthur J Gallagher in financials,
HealthSouth and Laboratory Corporation of America in healthcare, and SPX
Corporation in industrials.
On the positive side, individual securities that contributed to performance were
spread across a number of sectors. In healthcare, solid fundamentals drove
strong returns in Gilead Sciences, Express Scripts, and Omnicare. Other strong
performers included Iron Mountain, Career Education, Everest Re, and InterActive
Corporation.
14
<Page>
FIRST AMERICAN FUNDS ANNUAL REPORT 2003
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(5)
-----------------------------------------------
1 YEAR 5 YEARS 10 YEARS 1/9/1995 3/1/1999 12/11/2000 9/24/2001
Class A NAV 27.33% 7.79% -- 10.33% -- -- --
Class A POP 20.33% 6.58% -- 9.62% -- -- --
Class B NAV 26.37% -- -- -- 6.95% -- --
Class B POP 21.37% -- -- -- 6.65% -- --
Class C NAV 26.43% -- -- -- -- -- 10.06%
Class C POP 24.16% -- -- -- -- -- 9.50%
Class S 27.36% -- -- -- -- -2.13% --
Class Y 27.63% 8.05% 9.21% -- -- -- --
Russell Midcap Growth Index(3) 38.89% 4.49% 8.50% 9.59% 0.11% -10.48% 8.34%
S&P MidCap 400 Index(4) 26.81% 11.96% 12.82% 14.93% 9.36% 0.65% 9.93%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CLASS A
<Table>
<Caption>
FIRST AMERICAN MID CAP FIRST AMERICAN MID CAP
GROWTH OPPORTUNITIES FUND, GROWTH OPPORTUNITIES FUND,
CLASS A NAV CLASS A POP RUSSELL MIDCAP GROWTH INDEX(3) S&P MIDCAP 400 INDEX(4)
1/1995 10000 9452 10000 10000
9/1995 12873 12166 12666 12449
9/1996 14453 13658 14940 14608
9/1997 17658 16688 18620 19381
9/1998 16615 15702 19093 20681
9/1999 16832 15907 26287 25038
9/2000 24783 23421 36455 32962
9/2001 19826 18736 18891 27636
9/2002 18510 17493 15969 26338
9/2003 23569 22274 22182 33399
</Table>
[CHART]
CLASS Y
<Table>
<Caption>
FIRST AMERICAN MID CAP
GROWTH OPPORTUNITIES FUND,
CLASS Y RUSSELL MIDCAP GROWTH INDEX(3) S&P MIDCAP 400 INDEX(4)
10/1993 10000 10000 10000
10/1994 10277 10256 10238
10/1995 12927 12744 12410
10/1996 14554 15032 14563
10/1997 17820 18735 19320
10/1998 16811 19210 20616
10/1999 17073 26448 24960
10/2000 25199 36679 32860
9/2001 20199 19007 27550
9/2002 18902 16067 26256
9/2003 24134 22319 33295
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Index is for illustrative purposes
only and is not available for investment. Stocks of mid-capitalization
companies may be slightly less volatile than those of small-capitalization
companies, but they still involve substantial risk and may be subject to
more abrupt or erratic price fluctuations than large-capitalization
companies.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares.
Total returns assume reinvestment of all distributions at NAV.
On September 24, 2001, the First American Mid Cap Growth Opportunities Fund
became the successor by merger to the Firstar MidCap Core Equity Fund, a
series of Firstar Funds, Inc. Prior to the merger, the First American fund
had no assets or liabilities. Performance presented prior to September 24,
2001, represents that of the Firstar MidCap Core Equity Fund.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) An unmanaged index that measures the performance of those Russell Midcap
companies with higher price-to-book ratios and higher forecasted growth
values. The stocks are also members of the Russell 1000 Growth Index. The
Russell Growth 1000 Index is an unmanaged index that measures performance
of those Russell 1000 companies with higher price-to-book ratios and higher
forecasted growth values. Russell 1000 companies include the 1,000 largest
companies in the Russell 3000 Index, which represents approximately 92% of
the total market capitalization of the Russell 3000 Index. The Russell 3000
Index measures the performance of the 3,000 largest U.S. companies based on
total market capitalization, which represents approximately 98% of the
investable U.S. equity market.
(4) An unmanaged, capitalization-weighted index that represents the aggregate
market value of the common equity of 400 companies chosen by Standard &
Poor's with a median capitalization of approximately $700 million and
measures the performance of the mid-range sector of the U.S. stock market.
(5) The performance since inception for each index is calculated from the month
end following the inception of the class.
15
<Page>
MID CAP VALUE FUND
Investment Objective: CAPITAL APPRECIATION
First American Mid Cap Value Fund Class Y shares returned 24.06% for the fiscal
year (Class A shares returned 23.71% at net asset value for the same period). By
comparison, the Fund's benchmark, the Russell Midcap Value Index*, returned
28.30%.
Over the course of the fiscal year, the Fund was positioned to anticipate an
economic recovery with larger-than-benchmark positions in economically sensitive
sectors such as industrials and technology, and smaller-than-benchmark positions
in more defensive sectors such as utilities, consumer staples, and aerospace and
defense. As signs of an economic recovery presented themselves, the Fund
participated in the market rally and showed solid absolute returns for the
fiscal year, but underperformed its benchmark due to a lack of exposure to
inexpensive, lower-quality stocks.
The strategy of the Fund management team is to seek stocks that are undervalued
relative to other securities in the same market, exhibit good or improving
fundamentals, and exhibit an identifiable catalyst that could close the gap
between market value and fair value over the next one to two years. Overall,
lower-quality, inexpensive stocks that did not exhibit these fundamental
characteristics led the market rally over the course of the fiscal year, which
resulted in the Fund's underperformance relative to the benchmark.
There were no holdings in the portfolio that experienced extreme negative
performance. Stocks that the Fund did not own, but which were top-performing
constituents of the Russell Mid Cap Value Index, caused the Fund's relative
underperformance. For example, Delta Airlines was a holding in the portfolio.
Because of the improving outlook for commercial airline travel the stock
appreciated. However, the low-quality and potentially bankrupt candidates,
American Airlines and Continental, both in the Fund's benchmark but not in the
Fund at the beginning of the fiscal year, appreciated significantly more.
Additionally, the Fund's cash position was kept low throughout the year, but
still contributed to the Fund's relative underperformance.
16
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
-----------------------------------------------
1 YEAR 5 YEARS 10 YEARS 2/4/1994 8/15/1994 2/1/1999 9/24/2001
Class A NAV 23.71% 6.98% 8.86% -- -- -- --
Class A POP 16.93% 5.77% 8.25% -- -- -- --
Class B NAV 22.84% 6.24% -- -- 7.51% -- --
Class B POP 17.84% 5.92% -- -- 7.51% -- --
Class C NAV 22.84% -- -- -- -- 3.88% --
Class C POP 20.65% -- -- -- -- 3.65% --
Class S 23.81% -- -- -- -- -- 11.59%
Class Y 24.06% 7.27% -- 8.31% -- -- --
Russell Midcap Value Index(3) 28.30% 8.42% 11.43% 11.85% 12.13% 6.65% 10.13%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CLASS A
<Table>
<Caption>
FIRST AMERICAN MID CAP VALUE FUND, FIRST AMERICAN MID CAP VALUE FUND,
CLASS A NAV CLASS A POP RUSSELL MIDCAP VALUE INDEX(3)
9/1993 10000 9452 10000
9/1994 11877 11224 10102
9/1995 13377 12641 12603
9/1996 16752 15831 14588
9/1997 23441 22152 20459
9/1998 16683 15766 19700
9/1999 18023 17032 21537
9/2000 20470 19344 24336
9/2001 19363 18298 24327
9/2002 18897 17858 23000
9/2003 23378 22093 29509
</Table>
[CHART]
CLASS Y
<Table>
<Caption>
FIRST AMERICAN MID CAP VALUE FUND,
CLASS A POP RUSSELL MIDCAP VALUE INDEX(3)
9/1994 10000 10000
9/1994 10731 10017
9/1995 12108 12497
9/1996 15209 14464
9/1997 21331 20286
9/1998 15220 19533
9/1999 16508 21354
9/2000 18810 24130
9/2001 17800 24122
9/2002 17423 22806
9/2003 21614 29260
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Index is for illustrative purposes
only and is not available for investment. Stocks of mid-capitalization
companies may be slightly less volatile than those of small-capitalization
companies, but they still involve substantial risk and may be subject to
more abrupt or erratic price fluctuations than large-capitalization
companies.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares.
Total returns assume reinvestment of all distributions at NAV.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) An unmanaged index that measures the performance of those Russell mid-cap
companies with lower price-to-book ratios and lower forecasted growth
values.
(4) The performance since inception for the index is calculated from the month
end following the inception of the class.
17
<Page>
LARGE CAP GROWTH OPPORTUNITIES FUND
Investment Objective: LONG-TERM GROWTH OF CAPITAL
First American Large Cap Growth Opportunities Fund Class Y shares returned
19.78% for the fiscal year (Class A shares returned 19.50% at net asset value
for the same period). By comparison, the Fund's benchmark, the Russell 1000
Growth Index*, returned 25.92%.
During the fiscal year ended September 30, 2003, investors in general operated
within an environment of recovery from the post-bubble economic downturn, a
profit decline, and the fall of the stock market. Although this was temporarily
interrupted by the war in Iraq, the Fund's returns recovered throughout the
year.
During the past year, the Fund's benchmark changed from the S&P 500 Composite
Index to the Russell 1000 Growth Index. The benchmark was changed to reflect the
advisor's belief that the Russell 1000 Growth Index was a better measure of the
Fund's investment objective, long-term growth of capital. This change led to a
repositioning of the Fund relative to the Russell 1000 Growth Index as the
Fund's previous benchmark, the S&P 500 Composite Index, had significantly lower
weightings in the healthcare and technology sectors and significantly higher
weightings in the financial, energy, and industrial sectors.
The Fund's underweight in the technology sector, the best performing sector
during the fiscal year, and its overweight position in the financial sector were
the primary drivers of underperformance relative to the Fund's benchmark. The
Fund also underperformed its benchmark because it placed an emphasis on stocks
that exhibit earnings momentum and low volatility. These stocks on average had
larger capitalizations relative to the Fund's benchmark. In general, stocks
within the Fund that exhibited these characteristics caused the Fund to
underperform.
Apart from the broad sector and market-cap themes, several individual stocks had
an important impact on our relative performance during the past year. On the
negative side, large overweights relative to the Fund's benchmark in Baxter
International, IDEC Pharmaceuticals, HCA, Autozone, and Clear Channel as well as
large underweights in IBM, Merck, and Genentech hurt our relative performance.
On the positive side, the Fund had large overweights in Apache Corp, Capital One
Financial, Intel, Dollar General, Flextronics, and Gilead Sciences, all of which
were strong performers during the year.
18
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(5)
-----------------------------------------------------------
1 YEAR 5 YEARS 10 YEARS 12/29/1992 1/9/1995 3/1/1999 11/27/2000 9/24/2001
Class A NAV 19.50% -1.88% -- -- 6.92% -- -- --
Class A POP 12.85% -2.98% -- -- 6.22% -- -- --
Class B NAV 18.58% -- -- -- -- -7.00% -- --
Class B POP 13.58% -- -- -- -- -7.34% -- --
Class C NAV 18.60% -- -- -- -- -- -- -2.43%
Class C POP 16.44% -- -- -- -- -- -- -2.91%
Class S 19.51% -- -- -- -- -- -14.31% --
Class Y 19.78% -1.62% -- 6.22% -- -- -- --
Russell 1000 Growth Index(3) 25.92% -2.46% 6.25% 7.83% 8.85% -7.79% -13.96% -1.22%
S&P 500 Composite Index(4) 24.40% 1.00% 10.05% 10.09% 10.94% -4.17% -7.93% -0.53%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CLASS A
<Table>
<Caption>
FIRST AMERICAN LARGO CAP FIRST AMERICAN LARGO CAP
GROWTH OPPORTUNITIES FUND, GROWTH OPPORTUNITIES FUND, RUSSELL 1000 S & P 500
CLASS A NAV CLASS A PDP GROWTH INDEX(3) COMPOSITE INDEX(4)
1/1995 10000 9452 10000 10000
10/1995 12347 11666 12703 12603
10/1996 14635 13828 15287 15640
10/1997 17753 16774 19729 20662
10/1998 21051 19890 24365 25206
10/1999 24823 23453 32475 31676
10/2000 29768 28126 35337 33606
9/2001 19103 18049 20061 24764
9/2002 15006 14178 15413 19691
9/2003 17922 16933 19194 24495
</Table>
[CHART]
CLASS Y
<Table>
<Caption>
FIRST AMERICAN LARGE CAP GROWTH RUSSELL 1000 S & P 500
OPPORTUNITIES FUND, CLASS Y GROWTH INDEX(3) COMPOSITE INDEX(4)
10/1993 10000 10000 10000
10/1994 10056 10536 10386
10/1995 12022 13613 13132
10/1996 14285 16615 16297
10/1997 17368 21678 21530
10/1998 20649 27020 26265
10/1999 24404 36273 33007
10/2000 29344 39658 35018
9/2001 18868 22629 25805
9/2002 14863 17536 20519
9/2003 17803 22081 25524
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Index is for illustrative purposes
only and is not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares.
Total returns assume reinvestment of all distributions at NAV.
On September 24, 2001, the First American Large Cap Growth Opportunities
Fund became the successor by merger to the Firstar Large Cap Core Equity
Fund, a series of Firstar Funds, Inc. Prior to the merger, the First
American fund had no assets or liabilities. Performance presented prior to
September 24, 2001, represents that of the Firstar Large Cap Core Equity
Fund. Prior to January 10, 1995, the Firstar fund offered one class of
shares to investors without a distribution or shareholder servicing fee.
Performance presented prior to January 10, 1995, does not reflect these
fees.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) An unmanaged index that measures the performance of those Russell 1000
companies with higher price-to-book ratios and higher forecasted growth
values. Russell 1000 companies include the 1,000 largest companies in the
Russell 3000 Index, which represents approximately 92% of the total market
capitalization of the Russell 3000 Index. The Russell 3000 Index measures
the performance of the 3,000 largest U.S. companies based on total market
capitilization, which represents approximately 98% of the investable U.S.
equity market.
(4) An unmanaged index of large-capitalization stocks.
(5) The performance since inception for each index is calculated from the month
end following the inception of the class. Performance represents cumulative
return since the Fund has been in operation less than one year.
19
<Page>
LARGE CAP SELECT FUND
Investment Objective: CAPITAL APPRECIATION
First American Large Cap Select Fund Class Y shares returned 15.02% for the
period starting January 31, 2003, and ending September 30, 2003 (Class A shares
returned 14.91% at net asset value for the same period). By comparison, the
Fund's benchmark, the S&P 500 Composite Index*, returned 17.80%.
First American Large Cap Select Fund was introduced on January 31, 2003, shortly
before the mid-March bottom of the Fund's benchmark. During the period, the Fund
had a generally cautious posture that emphasized higher-quality firms and
defensive sectors that are inherently less sensitive to contraction.
This Fund combines the strategies of the First American Large Cap Growth
Opportunities Fund and the First American Large Cap Value Fund, selecting
companies based on a combination of both value and growth objectives. The Fund
attempts to invest in the highest-quality companies found in the First American
Large Cap Growth Opportunities Fund and the First American Large Cap Value Fund
and to incorporate the sector strategies used by these funds. Overall, the Fund
underperformed its benchmark because, like the First American Large Cap Growth
Opportunities Fund and the First American Large Cap Value Fund, the Fund placed
an emphasis on stocks that exhibit earnings momentum and low volatility. These
stocks on average had larger capitalizations relative to the Fund's benchmark.
In general, stocks within the Fund that exhibited these characteristics caused
the Fund to underperform.
Three sectors were individually important in their effect on portfolio returns.
Significant overweights in information technology and healthcare were favorable
to the Fund during the year. However, an emphasis on energy stocks was
ill-timed. On balance, sector allocations provided a slight benefit.
From an individual stock standpoint, PeopleSoft, Novellus, and Nokia were the
biggest detractors of performance while Intel, Schlumberger, and Texas
Instruments were the biggest contributors.
20
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
------------------
1/31/2003
Class A NAV 14.91%
Class A POP 8.61%
Class B NAV 14.18%
Class B POP 9.18%
Class C NAV 14.27%
Class C POP 8.00%
Class S 14.76%
Class Y 15.02%
S&P 500 Composite Index(3) 17.80%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CLASS A
<Table>
<Caption>
FIRST AMERICAN LARGE CAP FIRST AMERICAN LARGE CAP
SELECT FUND, CLASS A NAV SELECT FUND, CLASS A POP S&P 500 COMPOSITE INDEX(4)
1/2003 10000 9452 10000
9/2003 11490 10860 11780
</Table>
[CHART]
CLASS Y
<Table>
<Caption>
FIRST AMERICAN LARGE CAP
SELECT FUND, CLASS Y S&P 500 COMPOSITE INDEX(4)
1/2003 10000 10000
9/2003 11501 11780
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Index is for illustrative purposes
only and is not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares.
Total returns assume reinvestment of all distributions at NAV.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) An unmanaged index of large-capitalization stocks.
(4) The performance since inception for the index is calculated from the month
end following the inception of the class. Performance represents cumulative
return as the Fund has been in operation less than one year.
21
<Page>
LARGE CAP VALUE FUND
Investment Objective: PRIMARY-CAPITAL APPRECIATION; SECONDARY-CURRENT INCOME
First American Large Cap Value Fund Class Y shares returned 19.04% for the
fiscal year (Class A shares returned 18.71% at net asset value for the same
period). By comparison, the Fund's benchmark, the Russell 1000 Value Index*,
returned 24.37%.
During the fiscal year ended September 30, 2003, investor sentiments shifted
from fear of bear market-generated losses and economic recession to hope for
both a market and economic recovery. Investors began to anticipate a rising
economic tide and favored more volatile, lower-quality, and generally smaller
companies that, in turn, led the market rebound.
The Large Cap Value Fund's investment strategy is to typically select companies
that have a market capitalization of at least $3 billion at the time of purchase
and that exhibit attractive valuations, good or improving fundamentals, and an
identifiable catalyst that could close the gap between market value and fair
value. However, the Fund underperformed its benchmark because it placed an
emphasis on larger stocks relative to its benchmark, which exhibit earnings
momentum and low volatility. In general, stocks within the Fund that exhibited
these characteristics caused the Fund to underperform.
The sector weightings in the portfolio did not vary much from the benchmark
weightings during the period. Positive relative performance from slight
overweightings in the technology and healthcare sector was more than offset by
the negative impact caused by a slight overweighting in the energy sector and a
slight underweighting in the financial sector.
The largest contributors to performance relative to the Fund's benchmark in
terms of individual stocks were Computer Associates, Caterpillar, and Eastman
Kodak. The largest detractors from performance were Motorola, Ford, and British
Petroleum.
22
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
---------------------------------------------
1 YEAR 5 YEARS 10 YEARS 2/4/1994 8/15/1994 2/1/1999 9/24/2001
Class A NAV 18.71% 0.32% 8.03% -- -- -- --
Class A POP 12.21% -0.81% 7.42% -- -- -- --
Class B NAV 17.83% -0.43% -- -- 7.03% -- --
Class B POP 12.83% -0.70% -- -- 7.03% -- --
Class C NAV 17.76% -- -- -- -- -4.13% --
Class C POP 15.58% -- -- -- -- -4.33% --
Class S 18.64% -- -- -- -- -- -0.10%
Class Y 19.04% 0.58% -- 7.88% -- -- --
Russell 1000 Value Index(3) 24.37% 4.00% 10.37% 10.85% 11.15% 0.74% -1.63%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CLASS A
<Table>
<Caption>
FIRST AMERICAN LARGE CAP FIRST AMERICAN LARGE CAP
VALUE FUND, CLASS A NAV VALUE FUND, CLASS A POP RUSSELL 1000 VALUE INDEX(3)
9/1993 10000 9452 10000
9/1994 10836 10241 9929
9/1995 13574 12828 12681
9/1996 16818 15894 14957
9/1997 23346 22064 21286
9/1998 21298 20128 22051
9/1999 25969 24542 26178
9/2000 26207 24768 28512
9/2001 22611 21369 25971
9/2002 18231 17229 21570
9/2003 21642 20453 26825
</Table>
[CHART]
CLASS Y
<Table>
<Caption>
FIRST AMERICAN LARGE CAP
VALUE FUND, CLASS Y RUSSELL 1000 VALUE INDEX(3)
2/1994 10000 10000
9/1994 10170 9935
9/1995 12763 12686
9/1996 15867 14963
9/1997 22076 21294
9/1998 20206 22059
9/1999 24707 26188
9/2000 24995 28523
9/2001 21614 25980
9/2002 17471 21585
9/2003 20796 26845
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Index is for illustrative purposes
only and is not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares.
Total returns assume reinvestment of all distributions at NAV.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) An unmanaged index that measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth
values. Russell 1000 companies include the 1,000 largest companies in the
Russell 3000 Index, which represents approximately 92% of the total market
capitalization of the Russell 3000 Index. The Russell 3000 Index measures
the performance of the 3,000 largest U.S. companies based on total market
capitalization, which represents approximately 98% of the investable U.S.
equity market.
(4) The performance since inception for the index is calculated from the month
end following the inception of the class.
23
<Page>
BALANCED FUND
Investment Objective: MAXIMIZE TOTAL RETURN (CAPITAL APPRECIATION PLUS INCOME)
First American Balanced Fund Class Y shares returned 15.35% for the fiscal year
(Class A shares returned 14.98% at net asset value for the same period). By
comparison, the Fund's benchmarks, the Russell 3000 Index* and the Lehman
Aggregate Bond Index*, returned 25.92% and 5.41%, respectively. Over the long
term, the Fund's asset mix is likely to average approximately 60% equity
securities and 40% debt securities.
Among market factors impacting performance during the fiscal year ended
September 30, 2003, the most important was the return of rally conditions in the
stock market in the second half of the year. This coincided with the start of
the war in Iraq, as investors acted on expectations of a brief conflict. Since
then, the rally has been sustained by signs of global economic recovery and
expectations of improved corporate earnings.
Prior to the second half, stocks followed a strong start to the year with
several months of falling prices as investors showed concern about the
sustainability of the economic recovery. These concerns helped push bond yields
to low levels during the second half of the period, where they more or less
stayed until late in the year, resulting in positive returns for
investment-grade bonds. Significant volatility in the bond market has recently
returned, as investors gain confidence in the equity market.
As a balanced, broadly diversified portfolio, the Fund was buoyed by its bond
positions when stocks were falling early in the year and then boosted by its
majority position in stocks later in the year. During the fourth quarter of the
fiscal year, the Fund's normal allocation of approximately 60% stocks was
increased to as much as 65%, thereby enabling the Fund to benefit from
outperformance in the equity market. Throughout the year, allocation decisions
of this type added to the Fund's return.
The stocks of larger companies in general had the most impact on the Fund's
return during the period, as they demonstrated strong performance on average and
made up a large allocation of the Fund's assets. Because the Fund is managed to
maintain exposure to a broadly diversified portfolio of domestic equities, the
Fund's performance was also impacted by the strong returns of smaller stocks.
The information technology sector generally staged a strong recovery during
fiscal year 2003. Shares of companies in this sector were especially strong
contributors to the Fund. Shares of companies in the consumer staples sector and
energy sector provided returns that, while positive on average, were relatively
weak contributors to the Fund's 2003 return.
The Fund experienced higher turnover in fiscal year 2003 due to a midyear
restructuring of the equity portfolio. This restructuring was intended to better
address the equity portion of the Fund's blended benchmark, the Russell 3000
Stock Index, which spans large, midsize, and small companies. The transition
required selling of large numbers of existing holdings and purchasing similar
numbers of replacement holdings, resulting in turnover higher in fiscal year
2003 than in previous years.
24
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(5)
---------------------------------------------
1 YEAR 5 YEARS 10 YEARS 1/9/1995 3/1/1999 11/27/2000 9/24/2001
Class A NAV 14.98% 2.34% -- 7.66% -- -- --
Class A POP 8.63% 1.19% -- 6.96% -- -- --
Class B NAV 14.25% -- -- -- 0.03% -- --
Class B POP 9.25% -- -- -- -0.30% -- --
Class C NAV 14.24% -- -- -- -- -- 2.03%
Class C POP 12.03% -- -- -- -- -- 1.54%
Class S 15.08% -- -- -- -- -3.97% --
Class Y 15.35% 2.62% 6.68% -- -- -- --
Russell 3000 Index(3) 25.92% 1.93% 9.68% 10.72% -2.07% -6.63% 1.10%
Lehman Aggregate Bond Index(4) 5.41% 6.63% 6.92% 8.14% 7.42% 8.61% 6.99%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CLASS A
<Table>
<Caption>
FIRST AMERICAN BALANCED FIRST AMERICAN BALANCE LEHMAN AGGREGATE BOND
FUND, CLASS A NAV FUND, CLASS A POP RUSSELL 3000 INDEX(3) INDEX(4)
1/1995 10000 9452 10000 10000
10/1995 12197 11522 12386 11288
10/1996 13707 12949 14824 11948
10/1997 16182 15287 19171 13010
10/1998 17578 16606 22000 14225
10/1999 18541 17516 27096 14300
10/2000 22152 20926 29359 15345
9/2001 18380 17363 21215 17218
9/2002 16561 15645 16963 18699
9/2003 19042 17989 20976 19710
</Table>
[CHART]
CLASS Y
<Table>
<Caption>
FIRST AMERICAN BALANCED LEHMAN AGGREGATE BOND
FUND, CLASS Y RUSSELL 3000 INDEX(3) INDEX(4)
10/1993 10000 10000 10000
10/1994 9910 10014 9633
10/1995 11872 12316 11140
10/1996 13361 14741 11792
10/1997 15819 19063 12840
10/1998 17219 21877 14039
10/1999 18233 26944 14114
10/2000 21860 29193 15144
9/2001 18182 21096 16994
9/2002 16410 16867 18454
9/2003 18929 20858 19453
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Indexes are for illustrative
purposes only and are not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares.
Total returns assume reinvestment of all distributions at NAV.
On September 24, 2001, the First American Balanced Fund combined with
Firstar Balanced Growth Fund and Firstar Balanced Income Fund. Performance
history prior to September 24, 2001, represents that of Firstar Balanced
Growth Fund.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) An unmanaged index that measures the performance of the 3,000 largest U.S.
companies based on total market capitilization, which represents
approximately 98% of the investable U.S. equity market.
(4) An unmanaged index composed of the Lehman Government/Credit Bond Index, the
Lehman Mortgage Backed Securities Index, and the Lehman Asset Backed
Securities Index. The Lehman Government/Credit Bond Index is comprised of
Treasury securities, other securities issued or guaranteed by the U.S.
government or its agencies or instrumentalities, including U.S. agency
mortgage securities and investment-grade corporate debt securities. The
Lehman Mortgage Backed Securities Index is comprised of the mortgage-backed
pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. The
Lehman Asset Backed Securities Index is comprised of debt securities rated
investment grade or higher that are backed by credit card, auto, and home
equity loans.
(5) The performance since inception for each index is calculated from the month
end following the inception of the class.
25
<Page>
EQUITY INCOME FUND
Investment Objective: LONG-TERM GROWTH OF CAPITAL AND INCOME
First American Equity Income Fund Class Y shares returned 23.20% for the fiscal
year (Class A shares returned 22.81% at net asset value for the same period). By
comparison, the Fund's benchmark index, the S&P 500 Composite Index*, returned
24.40%.
Investor expectations shifted from the fear of possible deflation and a
double-dip recession at the beginning of the period to the expectation of a
meaningful economic recovery by year-end. The Fund benefited from anticipation
of this change in perception and was positioned for an economic recovery.
The Fund is generally expected to lag the benchmark during a strongly rising
stock market (and hold up better during a falling stock market) because it
invests primarily in dividend-paying stocks, which typically behave in that
fashion. However, during late 2002 and early 2003, the Fund opportunistically
increased exposure to sectors and individual dividend-paying stocks that were
expected to perform well in a rising stock market. As a result, the Fund's
volatility relative to the market was raised significantly. This helped it keep
pace with the benchmark during the market rebound.
The Fund benefited from increasing exposure to the technology sector during the
year. Standout performers included SAP, Lucent Technology convertible preferred
stock, Qualcomm, Hewlett Packard, IBM, Intel, Texas Instruments, and Electronic
Data Systems. The Fund's significant holdings in market-sensitive companies
within the financials sector enhanced performance, with strong contributions
from Merrill Lynch, JP Morgan, Legg Mason, American Express, and Morgan Stanley
Dean Witter. Above-average exposure to property and casualty insurance companies
Chubb, Hartford Financial, and St. Paul Companies also helped performance.
Maintaining an underexposed position in the consumer staples and healthcare
sectors aided Fund results as performance by these two sectors significantly
lagged that of the general market.
The Fund's modestly overweight position in the energy sector lagged the
benchmark during the fiscal year. The main detractors in this sector were
Amerada Hess, Royal Dutch, and British Petroleum. Additionally, while a slight
overweight relative to the Fund's benchmark in consumer staples helped
performance, stock selection in the sector more than offset the positive
allocation effect. Cadbury Schweppes, Newell Rubbermaid, Kimberly-Clark, and
Kraft were the main detractors from performance in the consumer staples sector.
26
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
---------------------------------------------
1 YEAR 5 YEARS 10 YEARS 8/2/1994 8/15/1994 2/1/1999 9/24/2001
Class A NAV 22.81% 3.00% 9.04% -- -- -- --
Class A POP 16.14% 1.84% 8.42% -- -- -- --
Class B NAV 21.97% 2.27% -- -- 8.67% -- --
Class B POP 16.97% 2.00% -- -- 8.67% -- --
Class C NAV 21.95% -- -- -- -- -0.12% --
Class C POP 19.69% -- -- -- -- -0.34% --
Class S 22.91% -- -- -- -- -- 1.82%
Class Y 23.20% 3.27% -- 9.68% -- -- --
S&P 500 Composite Index(3) 24.40% 1.00% 10.05% 10.37% 10.37% -3.88% -0.55%
</Table>
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[CHART]
CLASS A
<Table>
<Caption>
FIRST AMERICAN EQUITY FIRST AMERICAN EQUITY
INCOME FUND, CLASS A NAV INCOME FUND, CLASS A POP S&P 500 COMPOSITE INDEX(3)
9/1993 10000 9452 10000
9/1994 10490 9908 10369
9/1995 12384 11698 13453
9/1996 14416 13618 16188
9/1997 18909 17862 22735
9/1998 20493 19358 24792
9/1999 22489 21243 31685
9/2000 24987 23603 35895
9/2001 24014 22684 26399
9/2002 19320 18250 20943
9/2003 23752 22436 26052
</Table>
[CHART]
CLASS Y
<Table>
<Caption>
FIRST AMERICAN EQUITY
INCOME FUND, CLASS Y S&P 500 COMPOSITE INDEX(3)
8/1994 10000 10000
9/1994 10045 9756
9/1995 11877 12657
9/1996 13871 15231
9/1997 18234 21391
9/1998 19848 23325
9/1999 21853 29806
9/2000 24358 33765
9/2001 23455 24777
9/2002 18924 19704
9/2003 23314 24512
</Table>
* Unlike mutual funds, index returns do not reflect any expenses, transaction
costs, or cash flow effects.
(1) Past performance does not guarantee future results and does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. The principal value of an investment and
investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
reflects voluntary fee waivers in effect. In the absence of such fee
waivers, total returns would be reduced. Index is for illustrative purposes
only and is not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the Fund's maximum sales charge and
assume reinvestment of all distributions at NAV
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 5.50% for Class A
shares, 1.00% for Class C shares, and the maximum contingent deferred sales
charge ("CDSC") for Class B and Class C shares for the relevant period.
Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares.
Total returns assume reinvestment of all distributions at NAV.
On May 18, 1994, the Equity Income Fund became the successor by merger to
the Boulevard Strategic Balance Fund. Prior to the merger, the First
American fund had no assets or liabilities. Performance prior to May 18,
1994, is that of the Boulevard Strategic Balance Fund.
(2) Performance for Class B, Class C, and Class S shares is not presented.
Performance for Class B and Class C is lower due to higher expenses.
Performance for Class S is substantially similar to Class A share NAV
performance due to similar expenses.
(3) An unmanaged index of large-capitalization stocks.
(4) The performance since inception for the index is calculated from the month
end following the inception of the class.
27
<Page>
(This page has been left blank intentionally.)
<Page>
REPORT OF INDEPENDENT AUDITORS September 30, 2003
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments of the Real Estate Securities,
Technology, International, Small Cap Growth Opportunities (formerly Micro
Cap), Small Cap Select (formerly Small Cap Core), Small Cap Value, Mid Cap
Growth Opportunities (formerly Mid Cap Core), Mid Cap Value, Large Cap Growth
Opportunities (formerly Large Cap Core), Large Cap Select, Large Cap Value,
Balanced, and Equity Income Funds (certain funds constituting First American
Investment Funds, Inc.) (the "Funds") as of September 30, 2003, and the
related statements of operations and changes in net assets and financial
highlights for each of the periods indicated therein, except as noted below.
These financial statements and the financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights of the International, Small Cap Growth
Opportunities, Small Cap Select, Mid Cap Growth Opportunities and Balanced
Funds for the periods presented through October 31, 2000, were audited by
other auditors whose reports dated December 29, 2000 and January 21, 2000,
expressed unqualified opinions on those financial highlights.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. 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 and financial highlights. Our
procedures included confirmation of securities owned as of September 30,
2003, by correspondence with the custodian and brokers or by other
appropriate auditing procedures where replies from brokers were not received.
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 audited by
us as referred to above present fairly, in all material respects, the
financial position of the Funds listed above of First American Investment
Funds, Inc. at September 30, 2003, the results of their operations, the
changes in their net assets and their financial highlights for each of the
periods indicated herein, in conformity with accounting principles generally
accepted in the United States.
Ernst & Young LLP
Minneapolis, Minnesota
November 7, 2003
29
<Page>
SCHEDULE OF INVESTMENTS September 30, 2003
REAL ESTATE SECURITIES FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 97.0%
REAL ESTATE INVESTMENT TRUSTS - 97.0%
DIVERSIFIED - 4.5%
Cousins Properties 61,900 $ 1,718
St Joe 73,900 2,371
Vornado Realty Trust 142,510 6,846
-------------
10,935
-------------
FINANCIAL SERVICES - 2.5%
Anthracite Capital 197,930 1,910
Istar Financial 24,790 966
Newcastle Investment 135,130 3,107
Newcastle Investment Holdings (a) (b) 35,000 175
-------------
6,158
-------------
HEALTH CARE - 0.4%
Senior Housing Properties Trust 62,220 896
-------------
HOTELS - 8.3%
Ashford Hospitality Trust* 118,320 1,061
Equity Inns 128,100 965
Fairmont Hotels & Resorts 74,700 1,923
Hilton Hotels 126,000 2,044
Host Marriott* 474,680 5,093
Innkeepers USA Trust 83,200 724
La Quinta* 201,320 1,254
Lasalle Hotel Properties 76,190 1,320
Starwood Hotels & Resorts Worldwide 120,700 4,200
Winston Hotels 150,000 1,365
-------------
19,949
-------------
OFFICE/INDUSTRIAL - 29.6%
Alexandria Real Estate Equities 67,630 3,248
AMB Property 116,250 3,582
Boston Properties 123,270 5,359
Brookfield Properties 100,800 2,369
CarrAmerica Realty Trust 66,350 1,981
Catellus Development* 100,860 2,466
Crescent Real Estate 73,660 1,068
Duke Realty Investments 206,490 6,029
EastGroup Properties 78,820 2,190
Equity Office Properties Trust 188,173 5,180
HRPT Properties 171,400 1,567
Keystone Property Trust 46,200 936
Kilroy Realty 114,980 3,283
Liberty Property 92,950 3,437
Maguire Properties 85,000 1,742
Parkway Properties 48,730 2,129
Prentiss Properties Trust 122,600 3,801
Prologis 305,120 9,230
PS Business Parks 71,000 2,680
Reckson Associates Realty 71,600 1,655
SL Green Realty 104,190 3,762
Trizec Properties 269,470 3,304
-------------
70,998
-------------
MANUFACTURED HOMES - 0.8%
Manufactured Home Communities 25,680 1,006
Sun Communities 20,430 805
-------------
1,811
-------------
RESIDENTIAL - 21.3%
AMLI Residential Properties Trust 86,130 $ 2,257
Apartment Investment & Management 121,400 4,778
Archstone-Smith Trust 249,130 6,572
AvalonBay Communities 40,000 1,872
Boardwalk Equities 306,000 3,504
BRE Properties, Cl A 50,000 1,649
Camden Property Trust 86,930 3,341
Equity Residential Properties Trust 305,210 8,937
Essex Property Trust 87,740 5,502
Gables Residential Trust 75,480 2,439
Home Properties of New York 93,900 3,681
Mid-America Apartment Communities 71,960 2,172
Summit Properties 97,030 2,204
United Dominion Realty Trust 121,290 2,221
-------------
51,129
-------------
RETAIL/MALLS - 25.8%
Acadia Realty Trust 314,680 3,455
CBL & Associates Properties 91,600 4,571
Chelsea Property Group 105,500 5,053
Developers Diversified 123,203 3,680
Equity One 61,860 1,052
Federal Realty Investment Trust 109,430 4,034
General Growth Properties 95,000 6,811
Kimco Realty 178,145 7,299
Mills 108,300 4,262
Pan Pacific Retail Properties 52,500 2,257
Regency Centers 122,530 4,515
Rouse 141,210 5,888
Simon Property Group 184,080 8,022
Taubman Centers 50,000 980
-------------
61,879
-------------
SELF STORAGE - 1.8%
Public Storage 74,700 2,930
Shurgard Storage Centers 40,000 1,412
-------------
4,342
-------------
SPECIALTY REAL ESTATE - 2.0%
Capital Automotive 111,300 3,396
Entertainment Properties Trust 47,200 1,416
-------------
4,812
-------------
TOTAL REAL ESTATE INVESTMENT TRUSTS 232,909
-------------
TOTAL COMMON STOCKS
(Cost $199,914) 232,909
-------------
PRIVATE REAL ESTATE COMPANIES - 0.3%
Beacon Capital Partnership* (a) (b) 33,750 384
Wyndham International* (a) (b) 2,017 202
Wyndham Voting Trust* (a) (b) 1,155 115
-------------
TOTAL PRIVATE REAL ESTATE COMPANIES
(Cost $660) 701
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
30
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
SHORT TERM INVESTMENTS - 2.7%
RELATED PARTY MONEY MARKET FUND - 2.7%
First American Prime Obligations Fund, Cl Z (c) 6,402,678 $ 6,403
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $6,403) 6,403
-------------
INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING - 25.0%
COMMERCIAL PAPER - 2.6%
Bluegrass
1.190%, 05/18/04 233 233
CS First Boston
1.415%, 10/01/03 931 931
Danske Bank
1.508%, 12/22/03 931 931
Independent IV
1.216%, 04/15/04 605 605
K2 USA
1.020%, 12/01/03 465 465
Leafs
1.339%, 04/20/04 642 642
Mitten Mortgage
1.130%, 10/08/03 652 652
Mortgage Interest Network
1.100%, 10/15/03 233 233
1.130%, 12/02/03 465 465
Orchard Park
1.245%, 04/06/04 93 93
1.220%, 07/06/04 1,033 1,033
-------------
TOTAL COMMERCIAL PAPER 6,283
-------------
CORPORATE OBLIGATIONS - 5.7%
Allstate Life Global
1.092%, 08/16/04 931 931
Bank of Scotland
1.100%, 03/05/04 466 466
Castle Hill III
1.176%, 09/16/04 279 279
Deutsche Bank
1.430%, 12/31/03 372 372
1.340%, 03/22/04 466 466
General Electric Capital Corporation
1.150%, 07/09/07 466 466
Halogen Fund
1.150%, 10/03/03 1,937 1,937
Lloyd's Bank
1.100%, 03/05/04 931 931
Metlife Global Funding
1.130%, 09/15/04 558 558
1.147%, 04/28/08 391 391
Monet Trust
1.210%, 12/28/03 931 931
Residential Mortgage Securities
1.140%, 09/11/04 698 698
Sigma Finance
1.268%, 08/09/04 931 931
SMM Trust 2002
1.140%, 09/23/04 1,560 1,560
Svenska Handlsbankn
1.100%, 03/03/04 931 931
1.100%, 03/15/04 168 168
Wells Fargo Bank
1.050%, 10/17/03 931 931
1.060%, 10/31/03 $ 652 $ 652
-------------
TOTAL CORPORATE OBLIGATIONS 13,599
-------------
MONEY MARKET FUNDS - 0.1%
AIM Short Term Liquid Asset Portfolio 37,244 37
Merrill Lynch Premier Institutional Fund 122,007 122
-------------
TOTAL MONEY MARKET FUNDS 159
-------------
OTHER SHORT-TERM INVESTMENTS - 2.1%
Commonwealth Life
1.430%, 10/01/03 470 470
General Electric Capital Assurance
1.370%, 12/19/03 186 186
Liquid Funding
1.130%, 8/23/04 465 465
1.130%, 9/14/04 465 465
Premium Asset Trust 02-7
0.110%, 06/01/04 1,387 1,387
Security Life Denver
1.381%, 01/13/04 1,210 1,210
1.490%, 03/15/04 931 931
-------------
TOTAL OTHER SHORT-TERM INVESTMENTS 5,114
-------------
REPURCHASE AGREEMENTS - 14.5%
Bear Stearns
1.240%, dated 9/30/03, matures 10/15/03,
repurchase price $1,863,170
(collateralized by Various securities:
Total Market Value $1,900,306) 1,862 1,862
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $2,327,833
(collateralized by U.S. Government Securities:
Total Market Value $2,374,336) 2,328 2,328
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $288,651
(collateralized by U.S. Government Securities:
Total Market Value $294,419) 289 289
CS First Boston
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $744,909 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $782,151) 745 745
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $465,566 (collateralized
by U.S. Government Securities:
Total Market Value $474,863) 466 466
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $1,862,263 (collateralized
by U.S. Government Securities:
Total Market Value $1,899,452) 1,862 1,862
Deutsche Bank
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $3,724,544 (collateralized
by Corporate Securities:
Total Market Value $3,910,636) 3,724 3,724
Goldman Sachs
1.268%, dated 9/30/03, matures 10/1/03,
repurchase price $1,396,705 (collateralized
by Corporate Securities:
Total Market Value $1,466,186) 1,397 1,397
</Table>
31
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Goldman Sachs
1.330%, dated 9/30/03, matures 10/1/03,
repurchase price $931,138 (collateralized
by Various securities:
Total Market Value $959,903) $ 931 $ 931
Goldman Sachs
1.380%, dated 9/30/03, matures 3/8/04,
repurchase price $465,570
(collateralized by Various securities:
Total Market Value $457,061) 466 466
Lehman Brothers
1.120%, dated 9/30/03, matures 10/1/03,
repurchase price $2,560,615 (collateralized
by U.S. Government Securities:
Total Market Value $2,611,753) 2,561 2,561
Lehman Brothers
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $931,133 (collateralized
by U.S. Government Securities:
Total Market Value $949,760) 931 931
Lehman Brothers
1.388%, dated 9/30/03, matures 10/1/03,
repurchase price $1,862,279 (collateralized
by Various securities:
Total Market Value $1,887,037) 1,862 1,862
Lehman Brothers
1.150%, dated 9/30/03, matures 10/27/03,
repurchase price $530,746 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $561,518) 531 531
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $2,793,397 (collateralized
by U.S. Government Securities:
Total Market Value $2,849,216) 2,793 2,793
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $84,065 (collateralized
by U.S. Government Securities:
Total Market Value $85,776) 84 84
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $232,783 (collateralized
by U.S. Government Securities:
Total Market Value $237,445) 233 233
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $558,679 (collateralized
by U.S. Government Securities:
Total Market Value $569,863) 559 559
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $1,862,265 (collateralized
by U.S. Government Securities:
Total Market Value $1,899,478) 1,862 1,862
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $2,327,831 (collateralized
by U.S. Government Securities:
Total Market Value $2,374,338) 2,328 2,328
Merrill Lynch
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $1,862,266 (collateralized
by Asset-Backed & U.S. Government Securities:
Total Market Value $1,899,515) $ 1,862 $ 1,862
Merrill Lynch
1.308%, dated 9/30/03, matures 10/1/03,
repurchase price $1,862,275 (collateralized
by Corporate Securities:
Total Market Value $1,955,322) 1,862 1,862
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $493,502 (collateralized
by Asset-Backed Securities:
Total Market Value $518,159) 493 493
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $2,895,834 (collateralized
by Collateralized Mortgage Obligations
& Asset-Backed Securities:
Total Market Value $3,041,186) 2,896 2,896
-------------
TOTAL REPURCHASE AGREEMENTS 34,927
-------------
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING
(Cost $60,082) 60,082
-------------
TOTAL INVESTMENTS - 125.0%
(Cost $267,059) 300,095
-------------
OTHER ASSETS AND LIABILITIES, NET - (25.0)% (60,096)
-------------
TOTAL NET ASSETS - 100.0% $ 239,999
-------------
</Table>
* Non-income producing security
(a) Securities considered illiquid investments under guidelines established by
the Board of Directors.
(b) Security is fair valued. As of September 30, 2003, the market value of this
investment is $876,092 or 0.37% of total net assets. See note 2 in Notes to
Financial Statements.
(c) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements.
Cl - Class
The accompanying notes are an integral part of the financial statements.
32
<Page>
TECHNOLOGY FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 100.1%
AEROSPACE & DEFENSE - 0.7%
L-3 Communications Holdings* 19,790 $ 856
-------------
COMMERCIAL SERVICES & SUPPLIES - 0.7%
Kroll* 45,870 853
-------------
COMMUNICATIONS EQUIPMENT - 14.8%
Advanced Fiber Communications* 56,900 1,193
Arris Group* 217,280 1,249
Avaya* 116,630 1,271
Comverse Technology* 82,610 1,236
Corning* 132,180 1,245
Foundry Networks* 54,600 1,174
Harris 32,620 1,168
Juniper Networks* 18,010 269
NetScreen Technologies* 26,760 595
Network Engines* 180,680 1,151
Nokia, ADR, Cl A 64,820 1,011
Nortel Networks* 276,840 1,135
Packeteer* 85,180 1,026
Sierra Wireless* 88,120 1,143
Tekelec* 76,640 1,196
UTStarcom* 28,990 922
-------------
16,984
-------------
COMPUTERS & PERIPHERALS - 9.1%
Advanced Digital Information* 87,510 1,227
Apple Computer* 71,910 1,484
Dell* 31,400 1,048
EMC* 111,550 1,409
Hewlett-Packard 76,824 1,487
Lexmark International Group, Cl A* 19,700 1,241
Maxtor* 97,340 1,185
Overland Storage* 56,540 834
Synaptics* 48,880 526
-------------
10,441
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 11.7%
Aeroflex* 187,040 1,655
Applied Films* 46,040 1,369
Benchmark Electronics* 35,350 1,494
Celestica* 77,850 1,235
Flextronics International* 128,100 1,817
Jabil Circuit* 68,150 1,775
LeCroy* 113,370 1,817
Newport* 75,820 1,069
Plexus* 20,960 326
Trimble Navigation* 34,930 809
-------------
13,366
-------------
HEALTH CARE EQUIPMENT & SUPPLIES - 2.9%
Beckman Coulter 25,350 1,154
Given Imaging* 102,050 1,107
STERIS* 46,680 1,075
-------------
3,336
-------------
HEALTH CARE PROVIDERS & SERVICES - 1.3%
United Surgical Partners* 51,777 1,465
-------------
HOUSEHOLD DURABLES - 1.7%
Garmin 27,750 $ 1,162
Sony 22,710 790
-------------
1,952
-------------
INTERNET SOFTWARE & SERVICES - 2.1%
Radware* 66,440 1,206
VeriSign* 85,110 1,146
-------------
2,352
-------------
IT SERVICES - 4.1%
Accenture* 64,000 1,430
Fiserv* 33,980 1,231
Infosys Technologies 17,510 1,192
SunGard Data Systems* 33,430 880
-------------
4,733
-------------
MEDIA - 3.7%
Championship Auto Racing Teams* 169,670 100
Clear Channel Communications 26,450 1,013
Comcast* 31,280 966
Cox Communications, Cl A* 30,240 956
Westwood One* 40,050 1,209
-------------
4,244
-------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT - 26.6%
Amkor Technology* 76,390 1,086
Analog Devices* 50,100 1,905
Applied Materials* 107,160 1,944
ASML Holding* 94,180 1,237
ChipPAC, Cl A* 137,950 813
Intel 61,700 1,697
Lexar Media* 63,420 1,081
Linear Technology 44,090 1,579
LogicVision* 261,480 860
Marvell Technology Group* 33,320 1,258
Maxim Integrated Products 29,630 1,170
Microchip Technology 56,270 1,347
Microtune* 238,280 591
MKS Instruments* 51,345 1,112
Monolithic System Technology* 137,170 1,154
Novellus Systems* 31,000 1,046
PDF Solutions* 152,070 1,711
Pixelworks* 140,640 1,212
Taiwan Semiconductor Manufacturing, ADR* 229,003 2,480
Teradyne* 65,760 1,223
Texas Instruments 48,004 1,095
United Microelectronics* 368,594 1,662
Xilinx* 46,050 1,313
-------------
30,576
-------------
SOFTWARE - 19.7%
Adobe Systems 33,200 1,303
Altiris* 79,280 2,084
Ascential Software* 72,425 1,342
Autodesk 86,320 1,469
Borland Software* 137,330 1,265
Computer Associates International 48,700 1,272
Concur Technologies* 102,930 1,221
Creo 78,800 831
Hyperion Solutions* 26,500 765
Intuit* 19,900 960
</Table>
33
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
JDA Software* 77,510 $ 1,153
Lawson Software* 225,200 1,597
Mercury Interactive* 32,000 1,453
Moldflow* 137,620 1,292
NetScout Systems* 148,940 743
RSA Security* 82,070 1,172
ScanSoft* 216,510 907
VERITAS Software* 55,700 1,749
-------------
22,578
-------------
WIRELESS TELECOMMUNICATIONS SERVICES - 1.0%
Wireless Facilities* 95,860 1,141
-------------
TOTAL COMMON STOCKS
(Cost $117,241) 114,877
-------------
SHORT TERM INVESTMENTS - 0.0%
RELATED PARTY MONEY MARKET FUND - 0.0%
First American Prime Obligations Fund, Cl Z (a) 98 --
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $--) --
-------------
INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 44.0%
COMMERCIAL PAPER - 4.6%
Bluegrass
1.190%, 05/18/04 $ 196 196
CS First Boston
1.415%, 10/01/03 783 783
Danske Bank
1.508%, 12/22/03 783 783
Independent IV
1.216%, 04/15/04 509 509
K2 USA
1.020%, 12/01/03 391 391
Leafs
1.339%, 04/20/04 540 540
Mitten Mortgage
1.130%, 10/08/03 548 548
Mortgage Interest Network
1.100%, 10/15/03 196 196
1.130%, 12/02/03 391 391
Orchard Park
1.245%, 04/06/04 78 78
1.220%, 07/06/04 869 869
-------------
TOTAL COMMERCIAL PAPER 5,284
-------------
CORPORATE OBLIGATIONS - 10.0%
Allstate Life Global
1.092%, 08/16/04 783 783
Bank of Scotland
1.100%, 03/05/04 392 392
Castle Hill III
1.176%, 09/16/04 235 235
Deutsche Bank
1.430%, 12/31/03 313 313
1.340%, 03/22/04 391 391
General Electric Capital Corporation
1.150%, 07/09/07 392 392
Halogen Fund
1.150%, 10/03/03 1,629 1,629
Lloyd's Bank
1.100%, 03/05/04 783 783
Metlife Global Funding
1.130%, 09/15/04 $ 470 $ 470
1.147%, 04/28/08 329 329
Monet Trust
1.210%, 12/28/03 783 783
Residential Mortgage Securities
1.140%, 09/11/04 587 587
Sigma Finance
1.268%, 08/09/04 783 783
SMM Trust 2002-M
1.140%, 09/23/04 1,312 1,312
Svenska Handlsbankn
1.100%, 03/03/04 783 783
1.100%, 03/15/04 141 141
Wells Fargo Bank
1.050%, 10/17/03 783 783
1.060%, 10/31/03 548 548
-------------
TOTAL CORPORATE OBLIGATIONS 11,437
-------------
MONEY MARKET FUNDS - 0.1%
AIM Short Term Liquid Asset Portfolio 31,323 31
Merrill Lynch Premier Institutional Fund 102,611 103
-------------
TOTAL MONEY MARKET FUNDS 134
-------------
OTHER SHORT-TERM INVESTMENTS - 3.7%
Commonwealth Life
1.430%, 10/01/03 395 395
General Electric Capital Assurance
1.370%, 12/19/03 157 157
Liquid Funding
1.130%, 8/23/04 391 391
1.130%, 9/14/04 391 391
Premium Asset Trust 02-7
0.110%, 06/01/04 1,167 1,167
Security Life Denver
1.381%, 01/13/04 1,018 1,018
1.490%, 03/15/04 783 783
-------------
TOTAL OTHER SHORT-TERM INVESTMENTS 4,302
-------------
REPURCHASE AGREEMENTS - 25.6%
Bear Stearns
1.240%, dated 9/30/03, matures 10/15/03,
repurchase price $1,566,982 (collateralized
by Various securities:
Total Market Value $1,598,215) 1,566 1,566
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $1,957,778 (collateralized
by U.S. Government Securities:
Total Market Value $1,996,889) 1,958 1,958
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $242,764 (collateralized
by U.S. Government Securities:
Total Market Value $247,615) 243 243
CS First Boston
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $626,491 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $657,812) 626 626
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $391,555 (collateralized
by U.S. Government Securities:
Total Market Value $399,374) 392 392
</Table>
The accompanying notes are an integral part of the financial statements.
34
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $1,566,220 (collateralized
by U.S. Government Securities:
Total Market Value $1,597,496) $ 1,566 $ 1,566
Deutsche Bank
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $3,132,454 (collateralized
by Corporate Securities:
Total Market Value $3,288,963) 3,132 3,132
Goldman Sachs
1.268%, dated 9/30/03, matures 10/1/03,
repurchase price $1,174,671 (collateralized
by Corporate Securities:
Total Market Value $1,233,107) 1,175 1,175
Goldman Sachs
1.330%, dated 9/30/03, matures 10/1/03,
repurchase price $783,115 (collateralized
by Various securities:
Total Market Value $807,307) 783 783
Goldman Sachs
1.380%, dated 9/30/03, matures 3/8/04,
repurchase price $391,558 (collateralized
by Various securities:
Total Market Value $399,541) 392 392
Lehman Brothers
1.120%, dated 9/30/03, matures 10/1/03,
repurchase price $2,153,554 (collateralized
by U.S. Government Securities:
Total Market Value $2,196,563) 2,153 2,153
Lehman Brothers
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $783,111 (collateralized
by U.S. Government Securities:
Total Market Value $798,777) 783 783
Lehman Brothers
1.388%, dated 9/30/03, matures 10/1/03,
repurchase price $1,566,233
(collateralized by Various securities:
Total Market Value $1,587,055) 1,566 1,566
Lehman Brothers
1.150%, dated 9/30/03, matures 10/27/03,
repurchase price $446,373 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $472,253) 446 446
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $2,349,331 (collateralized
by U.S. Government Securities:
Total Market Value $2,396,277) 2,349 2,349
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $70,701 (collateralized
by U.S. Government Securities:
Total Market Value $72,140) 71 71
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $195,778 (collateralized
by U.S. Government Securities:
Total Market Value $199,698) 196 196
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $469,866 (collateralized
by U.S. Government Securities:
Total Market Value $479,272) 470 470
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $1,566,221 (collateralized
by U.S. Government Securities:
Total Market Value $1,597,518) $ 1,566 $ 1,566
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $1,957,776 (collateralized
by U.S. Government Securities:
Total Market Value $1,996,890) 1,958 1,958
Merrill Lynch
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $1,566,222 (collateralized
by Asset-Backed & U.S. Government Securities:
Total Market Value $1,597,550) 1,566 1,566
Merrill Lynch
1.308%, dated 9/30/03, matures 10/1/03,
repurchase price $1,566,230 (collateralized
by Corporate Securities:
Total Market Value $1,644,484) 1,566 1,566
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $415,050 (collateralized
by Asset-Backed Securities:
Total Market Value $435,788) 415 415
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $2,435,484 (collateralized
by Collateralized Mortgage Obligations &
Asset-Backed Securities:
Total Market Value $2,557,730) 2,435 2,435
-------------
TOTAL REPURCHASE AGREEMENTS 29,373
-------------
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING
(Cost $50,530) 50,530
-------------
TOTAL INVESTMENTS - 144.1%
(Cost $167,771) 165,407
-------------
OTHER ASSETS AND LIABILITIES, NET - (44.1)% (50,659)
-------------
TOTAL NET ASSETS - 100.0% $ 114,748
-------------
</Table>
* Non-income producing security
(a) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements.
ADR - American Depositary Receipt
Cl - Class
35
<Page>
STATEMENTS OF ASSETS AND LIABILITIES September 30, 2003, in thousands, except
per share data
<Table>
<Caption>
REAL ESTATE TECHNOLOGY
SECURITIES FUND FUND
- ------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated securities, at value*+ $ 293,692 $ 165,407
Investments in affiliated securities, at value** 6,403 --
Cash 10 --
Dividends and interest receivable 1,218 18
Receivable for investment securities sold 2,568 2,706
Capital shares sold 697 148
Prepaid expenses and other assets 15 16
- ------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 304,603 168,295
==================================================================================================================
LIABILITIES:
Written options, at value -- 439
Capital shares redeemed 85 1,124
Payable upon return of securities loaned 60,082 50,530
Payable for advisory, co-administration, and custodian fees 148 91
Payable for investment securities purchased 4,278 631
Distribution and shareholder servicing fees 11 27
Bank overdraft -- 705
- ------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 64,604 53,547
==================================================================================================================
NET ASSETS $ 239,999 $ 114,748
==================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 201,818 $ 591,607
Undistributed net investment income (loss) 809 --
Accumulated net realized gain (loss) 4,336 (474,567)
Unrealized appreciation (depreciation) of investments 33,036 (2,364)
Unrealized appreciation of options written -- 72
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 239,999 $ 114,748
==================================================================================================================
* Investments in unaffiliated securities, at cost $ 260,656 $ 167,771
** Investments in affiliated securities, at cost $ 6,403 $ --
+ Including securities loaned, at value $ 58,700 $ 47,555
CLASS A:
Net assets $ 35,754 $ 27,936
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 2,235 3,963
Net asset value and redemption price per share $ 16.00 $ 7.05
Maximum offering price per share (1) $ 16.93 $ 7.46
CLASS B:
Net assets $ 3,559 $ 16,016
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 225 2,546
Net asset value, offering price and redemption price per share (2) $ 15.85 $ 6.29
CLASS C:
Net assets $ 3,229 $ 7,056
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 203 1,029
Net asset value and redemption price per share (2) $ 15.89 $ 6.86
Maximum offering price per share (3) $ 16.05 $ 6.93
CLASS S:
Net assets $ 2,524 $ 3,923
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 158 559
Net asset value, offering price, and redemption price per share $ 16.00 $ 7.02
CLASS Y:
Net assets $ 194,933 $ 59,817
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 12,138 8,218
Net asset value, offering price, and redemption price per share $ 16.06 $ 7.28
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.50%
(2) Class B and C have a contingent deferred sales charge. For a description of
this sales charge, see notes 1 and 3 in Notes to Financial Statements.
(3) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%
The accompanying notes are an integral part of the financial statements.
36
<Page>
STATEMENTS OF OPERATIONS For the fiscal year ended September 30, 2003, in
thousands
<Table>
<Caption>
REAL ESTATE TECHNOLOGY
SECURITIES FUND FUND
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest from affiliated securities $ 92 $ 45
Dividends 10,021 157
Less: Foreign taxes withheld (7) (4)
Securities lending 28 153
Other -- 384
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 10,134 735
==================================================================================================================
EXPENSES:
Investment advisory fees 1,160 700
Co-administration fees and expenses (including per account transfer agency fees) 484 288
Custodian fees 17 10
Directors' fees 4 2
Registration fees 23 32
Professional fees 6 3
Printing 6 3
Other 1 5
Distribution and shareholder servicing fees - Class A 60 61
Distribution and shareholder servicing fees - Class B 28 141
Distribution and shareholder servicing fees - Class C 19 63
Shareholder servicing fees - Class S 4 8
- ------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 1,812 1,316
==================================================================================================================
Less: Fee waivers (77) (63)
- ------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 1,735 1,253
==================================================================================================================
INVESTMENT INCOME (LOSS) - NET 8,399 (518)
==================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND WRITTEN OPTIONS - NET:
Net realized gain (loss) on investments 5,589 (12,773)
Net realized loss on written options -- (328)
Net change in unrealized appreciation or depreciation of investments 27,408 60,854
Net change in unrealized appreciation or depreciation of written options -- 70
- ------------------------------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 32,997 47,825
==================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 41,396 $ 47,307
==================================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
37
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
REAL ESTATE TECHNOLOGY
SECURITIES FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 10/1/02 10/1/01
TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02
- ----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income (loss) - net $ 8,399 $ 6,494 $ (518) $ (1,241)
Net realized gain (loss) on investments 5,589 7,010 (12,773) (131,635)
Net realized loss on written options -- -- (328) --
Net change in unrealized appreciation or depreciation of investments 27,408 (2,696) 60,854 88,614
Net change in unrealized appreciation or depreciation of written options -- -- 70 --
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 41,396 10,808 47,305 (44,262)
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (1,183) (410) -- --
Class B (120) (90) -- --
Class C (87) (16) -- --
Class S (86) (45) -- --
Class Y (7,094) (5,665) -- --
Net realized gain on investments:
Class A (368) -- -- --
Class B (63) -- -- --
Class C (28) -- -- --
Class S (34) -- -- --
Class Y (2,941) -- -- --
Tax return of capital:
Class A -- (84) -- --
Class B -- (14) -- --
Class C -- (5) -- --
Class S -- (7) -- --
Class Y -- (654) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions (12,004) (6,990) -- --
==================================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 26,968 14,894 11,348 12,200
Reinvestment of distributions 1,489 472 -- --
Payments for redemptions (12,978) (2,325) (13,072) (15,393)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 1,296
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions 15,479 13,041 (1,724) (1,897)
- ----------------------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 1,090 1,240 1,475 1,997
Reinvestment of distributions 169 99 -- --
Payments for redemptions (732) (535) (3,295) (4,909)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 4,194
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions 527 804 (1,820) 1,282
- ----------------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 2,174 1,085 1,303 1,541
Reinvestment of distributions 109 20 -- --
Payments for redemptions (437) (422) (2,252) (3,416)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 198
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C transactions 1,846 683 (949) (1,677)
- ----------------------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 2,686 1,043 2,553 1,105
Reinvestment of distributions 115 51 -- --
Payments for redemptions (1,825) (199) (1,840) (925)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 3,111
- ----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class S transactions 976 895 713 3,291
- ----------------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 80,412 42,995 33,169 55,312
Reinvestment of distributions 3,092 1,218 -- --
Payments for redemptions (32,025) (24,223) (42,450) (66,880)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 21,612
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 51,479 19,990 (9,281) 10,044
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 70,307 35,413 (13,061) 11,043
- ----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 99,699 39,231 34,246 (33,219)
NET ASSETS AT BEGINNING OF PERIOD 140,300 101,069 80,502 113,721
==================================================================================================================================
NET ASSETS AT END OF PERIOD $ 239,999 $ 140,300 $ 114,748 $ 80,502
==================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 809 $ 1,019 $ -- $ --
==================================================================================================================================
</Table>
(1) See note 4 in Notes to Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
38
<Page>
(This page has been left blank intentionally.)
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET GAINS FROM NET DISTRIBUTIONS FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET RETURN OF
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME REALIZED GAINS CAPITAL
- ----------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE SECURITIES FUND
Class A
2003 (1) $ 13.68 $ 0.69 $ 2.65 $ (0.69) $ (0.33) $ --
2002 (1) 13.12 0.71 0.61 (0.69) -- (0.07)
2001 (1) 12.71 0.76 0.32 (0.64) -- (0.03)
2000 10.78 0.74 2.00 (0.79) -- (0.02)
1999 12.17 0.65 (1.36) (0.67) -- (0.01)
Class B
2003 (1) $ 13.55 $ 0.57 $ 2.64 $ (0.58) $ (0.33) $ --
2002 (1) 13.02 0.59 0.61 (0.60) -- (0.07)
2001 (1) 12.61 0.65 0.33 (0.54) -- (0.03)
2000 10.69 0.64 2.00 (0.69) -- (0.03)
1999 12.08 0.55 (1.34) (0.57) -- (0.03)
Class C
2003 (1) $ 13.62 $ 0.59 $ 2.62 $ (0.61) $ (0.33) $ --
2002 (1) 13.08 0.62 0.59 (0.60) -- (0.07)
2001 (1) 12.68 0.69 0.30 (0.59) -- --
2000 (2) 10.61 0.50 2.14 (0.57) -- --
Class S (1)
2003 $ 13.69 $ 0.69 $ 2.64 $ (0.69) $ (0.33) $ --
2002 13.12 0.70 0.62 (0.68) -- (0.07)
2001 (3) 12.52 0.11 0.49 -- -- --
Class Y
2003 (1) $ 13.73 $ 0.73 $ 2.66 $ (0.73) $ (0.33) $ --
2002 (1) 13.15 0.73 0.63 (0.71) -- (0.07)
2001 (1) 12.73 0.84 0.28 (0.68) -- (0.02)
2000 10.80 0.77 2.00 (0.81) -- (0.03)
1999 12.19 0.68 (1.35) (0.69) -- (0.03)
TECHNOLOGY FUND
Class A
2003 (1) $ 4.29 $ (0.03) $ 2.79 $ -- $ -- $ --
2002 (1) 6.36 (0.07) (2.00) -- -- --
2001 (1) 47.68 (0.15) (33.55) -- (7.62) --
2000 34.22 (0.35) 24.87 -- (11.06) --
1999 15.60 (0.18) 19.55 -- (0.75) --
Class B
2003 (1) $ 3.86 $ (0.07) $ 2.50 $ -- $ -- $ --
2002 (1) 5.77 (0.11) (1.80) -- -- --
2001 (1) 44.40 (0.26) (30.75) -- (7.62) --
2000 32.59 (0.35) 23.22 -- (11.06) --
1999 14.99 (0.34) 18.69 -- (0.75) --
Class C
2003 (1) $ 4.20 $ (0.07) $ 2.73 $ -- $ -- $ --
2002 (1) 6.28 (0.12) (1.96) -- -- --
2001 (1) 47.49 (0.26) (33.33) -- (7.62) --
2000 (2) 50.30 (0.35) (2.46) -- -- --
Class S (1)
2003 $ 4.29 $ (0.03) $ 2.76 $ -- $ -- $ --
2002 6.36 (0.04) (2.03) -- -- --
2001 (3) 6.95 -- (0.59) -- -- --
Class Y
2003 (1) $ 4.42 $ (0.01) $ 2.87 $ -- $ -- $ --
2002 (1) 6.53 (0.05) (2.06) -- -- --
2001 (1) 48.60 (0.11) (34.34) -- (7.62) --
2000 34.64 (0.34) 25.36 -- (11.06) --
1999 15.73 (0.13) 19.79 -- (0.75) --
</Table>
(1) Per share data calculated using average shares outstanding method.
(2) Commenced operations on February 1, 2000. All ratios for the period have
been annualized, except total return and portfolio turnover.
(3) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except for total return and portfolio
turnover.
(4) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
40
<Page>
<Table>
<Caption>
RATIO OF NET
NET ASSET RATIO OF INVESTMENT
VALUE NET ASSETS EXPENSES TO INCOME (LOSS)
END OF TOTAL END OF AVERAGE TO AVERAGE
PERIOD RETURN (4) PERIOD (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------
REAL ESTATE SECURITIES FUND
Class A
2003 (1) $ 16.00 25.92% $ 35,754 1.23% 4.82%
2002 (1) 13.68 10.07 15,422 1.23 5.06
2001 (1) 13.12 8.69 2,421 1.04 5.89
2000 12.71 26.68 2,035 1.05 6.59
1999 10.78 (5.89) 1,518 1.05 5.52
Class B
2003 (1) $ 15.85 25.03% $ 3,559 1.98% 4.10%
2002 (1) 13.55 9.21 2,577 1.98 4.27
2001 (1) 13.02 7.93 1,724 1.79 5.13
2000 12.61 25.81 1,874 1.80 5.79
1999 10.69 (6.68) 2,192 1.80 4.75
Class C
2003 (1) $ 15.89 24.88% $ 3,229 1.98% 4.12%
2002 (1) 13.62 9.27 986 1.98 4.43
2001 (1) 13.08 7.93 341 1.79 5.27
2000 (2) 12.68 25.56 164 1.80 5.79
Class S (1)
2003 $ 16.00 25.80% $ 2,524 1.23% 4.87%
2002 13.69 10.13 1,224 1.23 5.00
2001 (3) 13.12 4.87 320 0.56 43.93
Class Y
2003 (1) $ 16.06 26.19% $ 194,933 0.98% 5.13%
2002 (1) 13.73 10.40 120,091 0.98 5.27
2001 (1) 13.15 9.01 96,263 0.80 6.50
2000 12.73 26.95 56,347 0.80 6.79
1999 10.80 (5.64) 51,181 0.80 5.78
TECHNOLOGY FUND
Class A
2003 (1) $ 7.05 64.34% $ 27,936 1.23% (0.52)%
2002 (1) 4.29 (32.55) 18,267 1.23 (0.89)
2001 (1) 6.36 (83.30) 29,084 1.15 (0.88)
2000 47.68 80.11 155,533 1.15 (0.93)
1999 34.22 128.71 21,491 1.15 (0.80)
Class B
2003 (1) $ 6.29 62.95% $ 16,016 1.98% (1.26)%
2002 (1) 3.86 (33.10) 11,190 1.98 (1.64)
2001 (1) 5.77 (83.42) 15,974 1.90 (1.63)
2000 44.40 78.77 97,003 1.90 (1.68)
1999 32.59 127.09 20,866 1.90 (1.56)
Class C
2003 (1) $ 6.86 63.33% $ 7,056 1.98% (1.25)%
2002 (1) 4.20 (33.12) 5,064 1.98 (1.64)
2001 (1) 6.28 (83.43) 9,010 1.90 (1.63)
2000 (2) 47.49 (5.59) 33,605 1.90 (1.67)
Class S (1)
2003 $ 7.02 63.64% $ 3,923 1.23% (0.53)%
2002 4.29 (32.55) 1,847 1.23 (0.79)
2001 (3) 6.36 (8.49) -- -- --
Class Y
2003 (1) $ 7.28 64.71% $ 59,817 0.98% (0.24)%
2002 (1) 4.42 (32.31) 44,134 0.98 (0.64)
2001 (1) 6.53 (83.26) 59,653 0.90 (0.62)
2000 48.60 80.71 436,938 0.90 (0.67)
1999 34.64 129.52 214,620 0.90 (0.53)
<Caption>
RATIO OF RATIO OF NET
EXPENSES TO INVESTMENT
AVERAGE INCOME (LOSS)
NET ASSETS TO AVERAGE NET PORTFOLIO
(EXCLUDING ASSETS (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------
REAL ESTATE SECURITIES FUND
Class A
2003 (1) 1.28% 4.77% 69%
2002 (1) 1.32 4.97 99
2001 (1) 1.25 5.68 85
2000 1.24 6.40 45
1999 1.18 5.39 21
Class B
2003 (1) 2.03% 4.05% 69%
2002 (1) 2.07 4.18 99
2001 (1) 2.00 4.92 85
2000 1.99 5.60 45
1999 1.93 4.62 21
Class C
2003 (1) 2.03% 4.07% 69%
2002 (1) 2.07 4.34 99
2001 (1) 2.00 5.06 85
2000 (2) 1.99 5.60 45
Class S (1)
2003 1.28% 4.82% 69%
2002 1.32 4.91 99
2001 (3) 1.01 43.48 85
Class Y
2003 (1) 1.03% 5.08% 69%
2002 (1) 1.07 5.18 99
2001 (1) 1.01 6.29 85
2000 0.99 6.60 45
1999 0.93 5.65 21
TECHNOLOGY FUND
Class A
2003 (1) 1.29% (0.58)% 110%
2002 (1) 1.70 (1.36) 288
2001 (1) 1.22 (0.95) 269
2000 1.15 (0.93) 195
1999 1.16 (0.81) 184
Class B
2003 (1) 2.04% (1.32)% 110%
2002 (1) 2.45 (2.11) 288
2001 (1) 1.97 (1.70) 269
2000 1.90 (1.68) 195
1999 1.91 (1.57) 184
Class C
2003 (1) 2.04% (1.31)% 110%
2002 (1) 2.45 (2.11) 288
2001 (1) 1.98 (1.71) 269
2000 (2) 1.88 (1.65) 195
Class S (1)
2003 1.29% (0.59)% 110%
2002 1.70 (1.26) 288
2001 (3) -- -- 269
Class Y
2003 (1) 1.04% (0.30)% 110%
2002 (1) 1.45 (1.11) 288
2001 (1) 0.96 (0.67) 269
2000 0.90 (0.67) 195
1999 0.91 (0.54) 184
</Table>
41
<Page>
SCHEDULE OF INVESTMENTS September 30, 2003
INTERNATIONAL FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS - 97.4%
AUSTRALIA - 3.7%
Macquarie Bank 346,800 $ 8,098
Patrick 695,000 6,195
QBE Insurance Group 1,342,000 9,047
Transurban Group 1,929,000 5,575
Wesfarmers 276,400 5,074
Westfield Holdings 616,200 5,923
---------------
39,912
---------------
BRAZIL - 0.7%
Banco Itau Holding Financiera* 30,800 1,115
Caemi Min E Metal 3,160,000 868
Companhia Siderurgica Nacional 71,000 3
Gerdau 74,000 1,008
Petroleo Brasileiro 132,200 3,031
Votorantim Celulose E Papel 61,300 1,616
---------------
7,641
---------------
CHILE - 0.0%
Genesis Chile Fund Limited 10,000 430
---------------
CHINA - 0.7%
Anhui Conch Cement 688,900 512
Beijing Cap Land 1,580,700 367
China Merchants 1,064,000 1,223
China Oilfield Series* 2,122,000 548
China Pharmaceutical Group 914,500 295
China Shipping Development 1,042,400 512
China Telecom* 2,842,400 734
CNOOC 403,000 687
Denway Motors 1,090,000 662
Global Bio-Chem 1,264,000 477
Huaneng Power International 770,000 1,054
Shanghai Industries Holdings 200,000 360
Weiqiao Textile 105,700 130
---------------
7,561
---------------
CZECH REPUBLIC - 0.1%
Komercni Banka 10,400 893
---------------
EGYPT - 0.1%
Orascom Construction 75,700 1,230
---------------
FINLAND - 2.2%
Nokia Oyj 1,481,600 22,810
---------------
FRANCE - 11.7%
BNP Paribas* 404,900 19,851
Carrefour 406,400 20,445
France Telecom 906,000 20,838
Groupe Danone 77,700 11,854
Sanofi-Synthelabo* 237,800 14,456
Schneider Electric* 276,600 14,334
TotalFinaElf, Cl B 142,000 21,431
---------------
123,209
---------------
GERMANY - 7.5%
Bayerische Motoren Werke AG 394,200 14,897
Deutsche Bank AG 283,800 17,219
Deutsche Boerse AG* 309,537 $ 15,681
Deutsche Telekom 674,800 9,705
Sap AG 63,100 7,716
Siemens AG 239,000 14,195
---------------
79,413
---------------
GREAT BRITAIN - 15.8%
Amvescap* 943,200 7,138
AstraZeneca 432,700 18,274
Aviva 1,533,000 11,894
BP 1,221,000 8,378
Compass Group 908,600 5,238
Glaxosmithkline 527,400 10,944
HBOS 1,079,800 12,343
Next* 536,000 10,009
Pearson 1,395,000 13,216
Reckitt Benckiser* 364,030 7,318
Royal Bank of Scotland Group* 759,400 19,304
Standard Chartered 1,188,200 16,592
Vodafone Group 13,082,000 26,081
---------------
166,729
---------------
HONG KONG - 2.6%
Hang Seng Bank 202,100 2,479
Hutchison Whampoa 1,307,500 9,540
Johnson Electric Holdings 2,290,000 3,519
Li & Fung 3,000,000 4,765
Peregrine Investment Holdings(a) 142,000 --
Swire Pacific 1,300,000 7,672
---------------
27,975
---------------
HUNGARY - 0.1%
OTP Bank 70,600 837
---------------
INDIA - 0.4%
ICICI Bank* 181,100 1,912
Infosys Technologies 18,800 1,280
Reliance Industries 48,600 992
---------------
4,184
---------------
INDONESIA - 0.2%
Bank Danamon 3,416,600 712
Dankos Labs 3,965,600 496
H M Sampoerna 658,900 355
P T Telekomunikasi Indonesia 63,000 859
---------------
2,422
---------------
IRELAND - 1.1%
Ryanair Holdings* 279,900 11,336
---------------
ISRAEL - 0.1%
Teva Pharmaceutical Industries 16,300 932
---------------
ITALY - 6.8%
Autogrill* 996,000 12,353
Banco Popolare di Verona 1,273,800 17,920
ENI* 1,188,800 18,164
Saipem 521,164 3,927
Unicredito Italian 4,089,000 19,333
---------------
71,697
---------------
</Table>
The accompanying notes are an integral part of the financial statements.
42
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
JAPAN - 23.2%
Bank of Yokohama 1,505,000 $ 5,739
Canon* 245,000 11,974
Eisai 301,400 7,042
Fanuc* 165,100 10,005
Fast Retailing 316,100 14,883
Fuji Television 1,511 7,371
Fujitsu 1,318,000 6,890
Funai Electric 52,900 7,056
Honda Motor 183,400 7,338
KDDI 877 4,443
Keyence 63,360 13,453
KONICA 864,000 11,431
Matsushita Elc Industries 517,000 6,224
Mitsubishi 1,586,000 13,586
Mitsubishi Tokyo Financial Group 2,036 12,849
Nikon 352,000 4,884
Nippon Oil* 925 4
Nissan Motor* 1,111,800 11,992
Nitto Denko 126,600 5,474
Nomura Holdings* 471,000 7,589
Nomura Research 20,000 1,821
NTT Docomo 3,350 8,186
OJI Paper 1,068,000 5,956
Rohm 58,300 7,567
Seiko Epson 290,100 9,037
Seven-Eleven Japan* 219,000 6,998
Sumitomo Metal Mining* 1,390,000 7,092
Sumitomo Trust and Banking* 983,000 4,787
Takara 480,000 3,244
Takeda Chemical Industries* 108,000 3,935
Ushio 696,000 10,168
Yamada Denki 216,600 6,398
---------------
245,416
---------------
MALAYSIA - 0.3%
Gamuda Berhad 1,020,000 1,758
Genting 356,400 1,407
Silverstone Berhad (a) 3,469 --
---------------
3,165
---------------
MEXICO - 0.5%
America Movil 54,000 1,248
Cemex S A 62,500 1,559
Coca-Cola* 41,300 876
Grupo Financiero Banorte 206,400 620
Grupo Imsa S A De C V 31,000 428
Telefonos De Mexico 400,900 610
Wal-Mart De Mexico, Cl U 90,600 261
---------------
5,602
---------------
NETHERLANDS - 4.2%
ASML Holding 480,000 6,289
ING Groep 743,800 13,625
Royal Dutch Petroleum 307,400 13,500
TPG 575,400 10,875
---------------
44,289
---------------
NEW ZEALAND - 0.5%
Auckland International Airport 1,256,280 4,940
---------------
PERU - 0.1%
Compania De Minas Buenaventura 16,700 $ 661
---------------
PHILIPPINES - 0.1%
Ayala 10,688,000 945
---------------
RUSSIAN FEDERATION - 0.1%
AO Vimpel* 14,500 882
LUKOIL 5,300 436
---------------
1,318
---------------
SINGAPORE - 1.3%
Venture Manufacturing 1,155,000 13,364
---------------
SOUTH AFRICA - 1.2%
Absa Group 599,000 2,964
Anglo American 179,400 3,256
Impala Platinum 26,700 2,227
MTN Group* 959,500 2,741
Sappi* 102,900 1,389
---------------
12,577
---------------
SOUTH KOREA - 1.4%
Daelim Industrial 30,000 631
Koram Bank 187,800 1,796
POSCO 53,200 1,522
Samsung Electronics, ADR 21,000 7,157
Samsung Fire & Marine Insurance 22,760 1,274
Shinsegae 13,350 2,362
---------------
14,742
---------------
SPAIN - 1.7%
Iberdrola 484,400 8,151
Inditex 468,500 10,039
---------------
18,190
---------------
SWEDEN - 3.4%
Atlas Copco 714,750 20,975
Securitas 544,600 6,618
Skandinaviska Enskilda 807,000 8,816
---------------
36,409
---------------
SWITZERLAND - 3.6%
Adecco 155,300 7,673
Julius Baer Holding 26,530 7,634
Roche Holdings 154,000 12,769
Zurich Financial Services Group 77,300 9,658
---------------
37,734
---------------
TAIWAN - 1.1%
Compal Electronic 232,680 1,640
CTCI 1,022,000 675
EVA Airways* 2,147,000 824
Hon Hai Precision Industries 123,200 1,066
Media Tek 88,000 967
Taiwan Semiconductor Manufacturing, ADR* 343,800 3,723
United Microelectronics* 248,882 1,122
Yangming Marine 134,000 1,155
---------------
11,172
---------------
</Table>
43
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
THAILAND - 0.6%
Land & Houses* 2,890,100 $ 992
National Finance* 1,384,900 607
PTT Public 469,000 975
Shin 3,215,200 1,908
Siam Cement 209,600 1,060
Siam Commercial Bank* 754,600 732
---------------
6,274
---------------
TURKEY - 0.3%
Akbank Turk Anonim Sirketi* 332,017 2,647
Anadolu Efes Biracilik Ve Malt* 238,500 565
---------------
3,212
---------------
TOTAL FOREIGN COMMON STOCKS
(Cost $901,338) 1,029,221
---------------
SHORT TERM INVESTMENTS - 1.9%
INVESTMENT COMPANY - 1.9%
SSgA Prime 20,692,329 20,692
---------------
TOTAL INVESTMENT COMPANY
(Cost $20,692) 20,692
---------------
INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 16.9%
Navigator Prime 178,089,242 178,089
---------------
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING
(Cost $178,089) 178,089
---------------
TOTAL INVESTMENTS - 116.2%
(Cost $1,100,119) 1,228,002
---------------
OTHER ASSETS AND LIABILITIES, NET - (16.2)% (170,816)
---------------
TOTAL NET ASSETS - 100.0% $ 1,057,186
---------------
</Table>
* Non-income producing security
(a) Security is fair valued. As of September 30, 2003, the market value of this
investment is $346 or 0.0% of total net assets. See note 2 in Notes to
Financial Statements.
ADR - American Depositary Receipt
AG - Aktienjesellschaft (German Stock Company)
Cl - Class
<Table>
<Caption>
% OF
NET ASSETS VALUE (000)
--------------- ---------------
FOREIGN COMMON STOCK
Banks 12.7% $ 133,677
Telecommunication Services 11.6 122,476
Diversified Financials 10.1 106,114
Automobiles & Components 6.1 64,843
Pharmaceutical & Biotechnology 6.0 63,780
Capital Goods 5.9 62,653
Commercial Services & Supplies 5.6 59,311
Technology Hardware & Equipment 5.3 56,038
Materials 4.9 52,030
Energy 4.8 50,545
Retailing 4.4 48,717
Insurance 3.6 38,491
Software & Services 3.5 36,330
Food & Drug Retailing 2.4 25,683
Food & Beverage 2.0 21,485
Utilities 1.5 15,939
Industrials 1.4 15,059
Transportation 1.4 14,337
Consumer Durables & Apparel 1.3 13,412
Hotels, Restaurants & Leisure 1.2 12,353
Household & Personal Products 0.7 7,318
Real Estate 0.6 5,922
Health Care 0.1 1,428
Information Technology 0.1 1,280
--------------- ---------------
TOTAL FOREIGN COMMON STOCKS 97.4 1,029,221
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING 16.9 178,089
TOTAL INVESTMENT COMPANY 1.9 20,692
--------------- ---------------
TOTAL INVESTMENTS 116.2 1,228,002
OTHER ASSETS AND LIABILITIES, NET (16.2) (170,816)
--------------- ---------------
NET ASSETS 100.0% $ 1,057,186
=============== ===============
</Table>
The accompanying notes are an integral part of the financial statements.
44
<Page>
STATEMENT OF ASSETS AND LIABILITIES September 30, 2003, in thousands, except per
share data
<Table>
<Caption>
INTERNATIONAL
FUND
- -------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value*+ $ 1,228,002
Cash denominated in foreign currencies, at value** 16,385
Dividends and interest receivable 2,632
Receivable for investment securities sold 9,056
Capital shares sold 464
Foreign withholding tax reclaim receivable 188
Prepaid expenses and other assets 301
- -------------------------------------------------------------------------------------------------------
TOTAL ASSETS 1,257,028
=======================================================================================================
LIABILITIES:
Payable for investment securities purchased 15,443
Capital shares redeemed 4,482
Payable upon return of securities loaned 178,089
Payable for advisory, co-administration, and custodian fees 1,128
Distribution and shareholder servicing fees 15
Bank overdraft 683
Accrued expense and other liabilities 2
- -------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 199,842
=======================================================================================================
NET ASSETS $ 1,057,186
=======================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 1,286,728
Undistributed net investment income 10,297
Accumulated net realized loss (367,980)
Net unrealized appreciation of investments 127,883
Net unrealized appreciation of foreign currency, and
translation of other assets and liabilities in foreign currency 258
- -------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,057,186
=======================================================================================================
* Investments in securities, at cost $ 1,100,119
** Cash denominated in foreign currencies, at cost 16,138
+ Including securities loaned 169,586
CLASS A:
Net assets $ 39,251
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 4,365
Net asset value and redemption price per share $ 8.99
Maximum offering price per share (1) $ 9.51
CLASS B:
Net assets $ 7,936
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 951
Net asset value, offering price and redemption price per share (2) $ 8.34
CLASS C:
Net assets $ 10,439
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 1,209
Net asset value and redemption price per share (2) $ 8.63
Maximum offering price per share (3) $ 8.72
CLASS S:
Net assets $ 8,533
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 951
Net asset value, offering price, and redemption price per share $ 8.98
CLASS Y:
Net assets $ 991,027
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 108,952
Net asset value, offering price, and redemption price per share $ 9.10
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.50%.
(2) Class B and C have a contingent deferred sales charge. For a description of
this sales charge, see notes 1 and 3 in Notes to Financial Statements.
(3) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
The accompanying notes are an integral part of the financial statements.
45
<Page>
STATEMENT OF OPERATIONS For fiscal year ended September 30, 2003, in thousands
<Table>
<Caption>
INTERNATIONAL
FUND
- -------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 360
Dividends 21,695
Less: Foreign taxes withheld (2,096)
Securities lending 491
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 20,450
=======================================================================================================
EXPENSES:
Investment advisory fees 9,391
Co-administration fees and expenses (including per account transfer agency fees) 2,342
Custodian fees 85
Directors' fees 20
Registration fees 34
Professional fees 17
Printing 33
Other 22
Distribution and shareholder servicing fees - Class A 100
Distribution and shareholder servicing fees - Class B 73
Distribution and shareholder servicing fees - Class C 107
Shareholder servicing fees - Class S 21
- -------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 12,245
=======================================================================================================
Less: Fee waivers (419)
- -------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 11,826
=======================================================================================================
INVESTMENT INCOME - NET 8,624
=======================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS - NET:
Net realized loss on investments (93,319)
Net realized gain on foreign currency transactions 1,056
Net increase from payment by affiliate (a) 621
Net change in unrealized appreciation or depreciation of investments 275,880
Net change in unrealized appreciation or depreciation of foreign currency,
and translation of other assets and liabilities denominated in foreign currency 247
- -------------------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 184,485
=======================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 193,109
=======================================================================================================
</Table>
(a) See note 7 in Notes to Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
46
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
INTERNATIONAL
FUND
- -----------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01
TO TO
9/30/03 9/30/02
- -----------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income - net $ 8,624 $ 2,255
Net realized loss on investments (93,319) (111,725)
Net realized gain (loss) on foreign currency transactions 1,056 (704)
Net increase from payment by affiliate (1) 621 --
Net change in unrealized appreciation or depreciation of investments 275,880 (21,835)
Net change in unrealized appreciation or depreciation of foreign currency, and
translation of other assets and liabilities denominated in foreign currency 247 (145)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 193,109 (132,154)
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A -- --
Class B -- --
Class C -- --
Class S -- --
Class Y -- --
Net realized gain on investments:
Class A -- --
Class B -- --
Class C -- --
Class S -- --
Class Y -- --
- -----------------------------------------------------------------------------------------------------------------------
Total distributions -- --
=======================================================================================================================
CAPITAL SHARE TRANSACTIONS (2):
Class A:
Proceeds from sales 160,663 159,656
Payments for redemptions (170,978) (180,477)
Shares issued in connection with the acquisition of Fund net assets 2,429
- -----------------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class A transactions (7,886) (20,821)
- -----------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 533 872
Payments for redemptions (1,796) (2,522)
Shares issued in connection with the acquisition of Fund net assets 254
- -----------------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class B transactions (1,009) (1,650)
- -----------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 1,964 2,445
Payments for redemptions (4,764) (6,687)
Shares issued in connection with the acquisition of Fund net assets 149
- -----------------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class C transactions (2,651) (4,242)
- -----------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 4,103 8,680
Payments for redemptions (8,219) (4,768)
Shares issued in connection with the acquisition of Fund net assets 43
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S transactions (4,073) 3,912
- -----------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 469,337 246,573
Payments for redemptions (243,349) (249,505)
Shares issued in connection with the acquisition of Fund net assets 46,678
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 272,666 (2,932)
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 257,047 (25,733)
- -----------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 450,156 (157,887)
NET ASSETS AT BEGINNING OF PERIOD 607,030 764,917
=======================================================================================================================
NET ASSETS AT END OF PERIOD $ 1,057,186 $ 607,030
=======================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) AT END OF PERIOD $ 10,297 $ (5)
=======================================================================================================================
</Table>
(1) See note 7 in Notes to Financial Statements for additional information.
(2) See note 4 in Notes to Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
47
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET GAINS FROM NET FROM NET
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT REALIZED
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME GAINS
- ----------------------------------------------------------------------------------------------------------
INTERNATIONAL FUND (1)
Class A
2003 (2) $ 7.33 $ 0.06 $ 1.60 $ -- $ --
2002 (2) 8.96 -- (1.63) -- --
2001 (2)(3) 13.96 0.10 (3.63) (0.10) (1.37)
2000 (2)(4) 15.94 (0.03) (0.42) (0.10) (1.43)
1999 (5) 12.42 -- 4.26 (0.04) (0.70)
1998 (5) 11.22 0.01 1.66 (0.07) (0.40)
Class B
2003 (2) $ 6.85 $ -- $ 1.49 $ -- $ --
2002 (2) 8.45 (0.06) (1.54) -- --
2001 (2) (3) 13.28 0.01 (3.43) (0.07) (1.34)
2000 (2) (4) 15.27 (0.10) (0.42) (0.07) (1.40)
1999 (5) 11.97 (0.09) 4.09 (0.01) (0.69)
1998 (5) 10.87 (0.08) 1.60 (0.02) (0.40)
Class C (2)
2003 $ 7.09 $ -- $ 1.54 $ -- $ --
2002 8.75 (0.06) (1.60) -- --
2001 (6) 8.31 0.01 0.43 -- --
Class S
2003 (2) $ 7.31 $ 0.04 $ 1.63 $ -- $ --
2002 (2) 8.96 0.01 (1.66) -- --
2001 (2) (3) 13.97 (0.04) (3.50) (0.10) (1.37)
2000 (2) (4) 15.95 (0.03) (0.42) (0.10) (1.43)
1999 (5) 12.43 (0.01) 4.27 (0.04) (0.70)
1998 (5) 11.23 -- 1.67 (0.07) (0.40)
Class Y
2003 (2) $ 7.40 $ 0.09 $ 1.61 $ -- $ --
2002 (2) 9.03 0.03 (1.66) -- --
2001 (2) (3) 14.03 0.07 (3.61) (0.11) (1.35)
2000 (2) (4) 15.97 0.01 (0.42) (0.12) (1.41)
1999 (5) 12.42 0.06 4.25 (0.06) (0.70)
1998 (5) 11.21 0.04 1.67 (0.10) (0.40)
</Table>
(1) The financial highlights for the International Fund as set forth herein
include the historical financial highlights of the Firstar International
Growth Fund. The assets of the Firstar Fund were acquired by the First
American International Fund on September 24, 2001. In connection with such
acquisition, (i) Class A shares of the Firstar International Growth Fund
were exchanged for Class A shares of the First American International Fund,
(ii) Firstar Class B shares were exchanged for Class B shares of the First
American International Fund, (iii) Firstar Class Y shares were exchanged for
Class S shares of the First American Fund, and (iv) Firstar Institutional
Class shares were exchanged for Class Y shares of the First American
International Fund. Historical per share amounts have been adjusted to
reflect the conversion ratios utilized for the merger of the International
Fund and Firstar International Growth Fund. Firstar International Growth
Fund is the accounting survivor.
(2) Per share data calculated using average shares outstanding method.
(3) For the period November 1, 2000 to September 30, 2001. Effective in 2001,
the Fund's fiscal year end was changed from October 31 to September 30. All
ratios for the period have been annualized, except total return and
portfolio turnover.
(4) For the period December 1, 1999 to October 31, 2000. Effective in 2000, the
Fund's fiscal year end was changed from November 30 to October 31. All
ratios for the period have been annualized, except total return and
portfolio turnover.
(5) For the fiscal year ended November 30.
(6) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio turnover.
(7) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
(8) In 2003, 0.14% of Class S share's and 0.13% of Class Y share's total return
was a result of a reimbursement as described in note 7 to the Financial
Statements by the advisor related to foreign currency principal trades
between the International Fund and U.S. Bank. Excluding the reimbursement,
total return for Class S and Class Y shares would have been 22.71% and
22.84%, respectively.
The accompanying notes are an integral part of the financial statements.
48
<Page>
<Table>
<Caption>
NET ASSET RATIO OF
VALUE NET ASSETS EXPENSES TO
END OF TOTAL END OF AVERAGE
PERIOD RETURN (7) PERIOD (000) NET ASSETS
- -------------------------------------------------------------------------------------------
INTERNATIONAL FUND (1)
Class A
2003 (2) $ 8.99 22.65% $ 39,251 1.60%
2002 (2) 7.33 (18.19) 37,232 1.60
2001 (2)(3) 8.96 (28.00) 64,907 1.49
2000 (2)(4) 13.96 (3.59) 3,591 1.58
1999 (5) 15.94 36.62 3,939 1.56
1998 (5) 12.42 15.33 3,154 1.58
Class B
2003 (2) $ 8.34 21.75% $ 7,936 2.35%
2002 (2) 6.85 (18.94) 7,459 2.35
2001 (2) (3) 8.45 (28.57) 10,857 2.17
2000 (2) (4) 13.28 (4.22) 732 2.28
1999 (5) 15.27 35.65 781 2.26
1998 (5) 11.97 14.48 624 2.28
Class C (2)
2003 $ 8.63 21.72% $ 10,439 2.35%
2002 7.09 (18.97) 11,027 2.35
2001 (6) 8.75 5.29 17,806 1.48
Class S
2003 (2) $ 8.98 22.85%(8) $ 8,533 1.60%
2002 (2) 7.31 (18.42) 10,817 1.60
2001 (2) (3) 8.96 (28.03) 9,461 1.46
2000 (2) (4) 13.97 (3.59) 16,373 1.58
1999 (5) 15.95 36.61 11,307 1.56
1998 (5) 12.43 15.37 8,058 1.58
Class Y
2003 (2) $ 9.10 22.97%(8) $ 991,027 1.35%
2002 (2) 7.40 (18.05) 540,495 1.35
2001 (2) (3) 9.03 (27.93) 661,886 1.23
2000 (2) (4) 14.03 (3.27) 122,329 1.28
1999 (5) 15.97 36.98 92,778 1.26
1998 (5) 12.42 15.73 60,647 1.28
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
INVESTMENT AVERAGE INCOME (LOSS)
INCOME (LOSS) NET ASSETS TO AVERAGE NET PORTFOLIO
TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE
- ----------------------------------------------------------------------------------------------------
INTERNATIONAL FUND (1)
Class A
2003 (2) 0.77% 1.65% 0.72% 82%
2002 (2) 0.04 1.66 (0.02) 72
2001 (2)(3) 1.02 1.59 0.92 72
2000 (2)(4) (0.26) 1.76 (0.44) 90
1999 (5) (0.01) 1.75 (0.20) 94
1998 (5) 0.02 1.75 (0.15) 89
Class B
2003 (2) 0.02% 2.40% (0.03)% 82%
2002 (2) (0.68) 2.41 (0.74) 72
2001 (2) (3) 0.06 2.27 (0.04) 72
2000 (2) (4) (0.96) 2.46 (1.14) 90
1999 (5) (0.71) 2.45 (0.90) 94
1998 (5) (0.70) 2.45 (0.87) 89
Class C (2)
2003 (0.01)% 2.40% (0.06)% 82%
2002 (0.71) 2.41 (0.77) 72
2001 (6) 4.15 1.48 4.15 72
Class S
2003 (2) 0.57% 1.65% 0.52% 82%
2002 (2) 0.16 1.66 0.10 72
2001 (2) (3) (0.33) 1.61 (0.48) 72
2000 (2) (4) (0.26) 1.76 (0.44) 90
1999 (5) -- 1.75 (0.19) 94
1998 (5) 0.01 1.75 (0.16) 89
Class Y
2003 (2) 1.08% 1.40% 1.03% 82%
2002 (2) 0.36 1.41 0.30 72
2001 (2) (3) 0.67 1.36 0.54 72
2000 (2) (4) 0.04 1.76 (0.44) 90
1999 (5) 0.28 1.75 (0.21) 94
1998 (5) 0.34 1.75 (0.13) 89
</Table>
49
<Page>
SCHEDULE OF INVESTMENTS September 30, 2003
SMALL CAP GROWTH OPPORTUNITIES
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------------
COMMON STOCKS - 92.9%
CONSUMER DISCRETIONARY - 16.4%
4Kids Entertainment* 231,920 $ 4,894
ACT Teleconferencing 579,730 1,287
Alliance Atlantis Communications, Cl B* 373,160 6,028
Alliance Gaming* 134,130 2,720
AnnTaylor Stores* 67,410 2,167
Casual Male Retail Group* 530,080 3,917
CBRL Group 50,390 1,788
Champion Enterprise* 307,690 1,954
Harris Interactive* 496,250 3,494
Kirkland's* 140,470 2,252
Landry's Restaurants 156,000 3,214
Men's Wearhouse* 172,020 4,412
Mothers Work* 169,145 5,134
Multimedia Games* 77,210 2,810
Penn National Gaming* 71,160 1,517
Regent Communication* 462,320 2,820
Ruby Tuesday 95,960 2,314
Saga Communications* 120,493 2,332
Sonic Automotive 167,670 4,034
Spanish Broadcasting System* 1,114,275 9,471
Sports Authority* 75,500 2,375
The Wet Seal, Cl A* 285,350 2,868
Tommy Hilfiger* 216,070 2,573
Triarc Companies 61,910 623
Triarc Companies, CI B 123,820 1,288
---------------
78,286
---------------
ENERGY - 5.8%
Cal Dive International* 72,470 1,409
Comstock Resources* 231,365 3,091
Grey Wolf* 597,540 2,079
Harvest Natural Resources* 300,995 1,851
Horizon Offshore* 599,400 2,464
Maverick Tube* 134,800 2,092
Quicksilver Resources* 158,600 3,875
Remington Oil & Gas* 108,700 1,973
Rowan* 42,440 1,043
Tetra Technologies* 182,450 3,762
Trico Marine Services* 434,800 917
Unit* 126,925 2,391
Varco International* 43,880 742
---------------
27,689
---------------
FINANCIALS - 2.9%
Friedman, Billings, Ramsey Group 304,070 5,245
Local Financial* 207,650 3,715
PrivateBancorp 48,660 1,611
Scottish Annuity & Life Holdings 124,360 3,003
---------------
13,574
---------------
HEALTH CARE - 12.3%
Angiotech Pharmaceuticals* 33,350 1,456
Bio-Rad Laboratories, Cl A* 43,980 2,243
Encore Medical* 745,050 5,067
First Horizon Pharmaceutical* 732,615 4,689
Hollis-Eden Pharmaceuticals* 96,340 2,347
Immucor* 41,410 1,116
Inspire Pharmaceuticals* 218,100 3,751
Isolagen 695,983 5,294
LifeCell* 129,870 $ 765
Martek Bioscience* 67,940 3,578
Neurocrine Biosciences* 65,180 3,228
Noven Pharmaceuticals* 173,895 1,982
Osteotech* 119,840 982
POZEN* 431,580 7,673
Select Medical* 173,500 4,997
Therasense* 123,760 1,546
United Surgical Partners* 220,130 6,230
Viasys Healthcare* 85,030 1,718
---------------
58,662
---------------
INDUSTRIALS - 11.6%
Allied Waste Industries* 285,880 3,087
Arbitron* 49,720 1,755
Career Education* 46,010 2,084
Casella Waste Systems* 227,390 2,824
Circor International 92,770 1,781
Corinthian Colleges* 45,455 2,598
Delta Air Lines 115,030 1,530
Electronic Clearing House* 148,160 1,043
Exult* 543,210 4,367
Integrated Alarm Services* 294,600 2,461
J.B. Hunt Transport Services* 72,680 1,891
Marten Transport* 87,590 2,286
Mesa Air Group* 583,805 6,480
Navigant Consulting* 176,380 2,171
Northwest Airlines* 171,090 1,660
Pacer International* 96,200 1,917
Swift Transportation* 184,920 4,196
Terex* 99,350 1,841
Wabash National* 593,760 9,470
---------------
55,442
---------------
INFORMATION TECHNOLOGY - 37.5%
Aeroflex* 571,990 5,062
Applied Films* 636,080 18,911
Arris Group* 705,070 4,054
Asyst Technologies* 591,790 8,326
ATMI* 76,835 1,942
AudioCodes* 579,680 4,348
August Technology* 85,320 1,215
BindView Development* 944,390 2,559
California Micro Devices* 86,390 631
Captiva Software* 231,590 1,735
Centillium Communications* 540,920 3,824
Ceragon Networks* 87,910 395
ChipPAC, Cl A* 496,145 2,922
Concur Technologies* 244,320 2,897
Digital Insight* 150,150 2,988
Digitas* 516,195 3,748
Ditech Communications* 394,800 3,466
DSP Group* 165,580 4,125
Extreme Networks* 313,750 1,980
Fairchild Semiconductor International, Cl A* 198,820 3,296
Genroco Warrants* (a) 103,794 --
Genus* 764,948 3,152
Genus Warrants* (a) 116,158 --
Integrated Silicon Solution* 421,370 4,193
JDA Software* 73,280 1,090
Lawson Software* 458,050 3,248
</Table>
The accompanying notes are an integral part of the financial statements.
50
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------------
Lionbridge Technologies* 414,460 $ 3,113
Microsemi* 99,400 1,515
Microtune* 1,490,620 3,697
Midway Games* 837,700 2,480
Mykrolis* 252,270 3,063
Neoware Systems* 248,560 4,243
Online Resources* 255,340 1,800
Open Text* 124,280 4,242
Overland Storage* 383,125 5,651
Photon Dynamics* 57,360 1,672
Photronics* 172,540 3,668
Radware* 121,010 2,196
REMEC* 235,170 2,399
Semtech* 81,770 1,509
SkillSoft* 342,750 2,553
Stellent* 526,970 4,089
Sykes Enterprises* 312,150 2,066
Synaptics* 361,670 3,892
Sypris Solutions 360,965 4,956
Take-Two Interactive Software* 177,200 6,055
THQ* 74,340 1,221
Tridium Warrant* (a) (b) 20,500 --
Tridium, Cl B (a) (b) 278,500 123
Tumbleweed Communications* 553,080 3,070
Ultimate Software Group* 510,300 4,312
Ultratech Stepper* 28,650 808
ValueClick* 223,040 1,876
Verso Technologies* 2,013,340 7,550
VideoPropulsion* (a) 809,856 --
White Electronic Designs* 100,580 1,081
Zoran* 171,891 3,352
---------------
178,359
---------------
MATERIALS - 3.1%
Buckeye Technologies* 138,560 1,259
Century Aluminum* 352,005 3,819
Crown Holdings* 587,700 3,967
Headwaters* 150,135 2,417
Silgan Holdings* 100,740 3,224
---------------
14,686
---------------
TELECOMMUNICATION SERVICES - 3.3%
Covad Communications Group* 1,349,910 7,465
General Communication* 388,905 3,236
Intrado* 172,930 3,939
KVH Industries* 44,670 1,126
---------------
15,766
---------------
TOTAL COMMON STOCKS
(Cost $361,492) 442,464
---------------
INVESTMENT COMPANIES - 1.7%
Oil Service HOLDRs Trust 39,735 2,286
iShares Nasdaq Biotechnology Index Fund 81,970 5,881
---------------
TOTAL INVESTMENT COMPANIES
(Cost $8,985) 8,167
---------------
SHORT TERM INVESTMENTS - 6.3%
RELATED PARTY MONEY MARKET FUND - 6.3%
First American Prime Obligations Fund, Cl Z (c) 29,959,135 29,959
---------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $29,959) 29,959
---------------
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------------------------------------
INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 26.9%
COMMERCIAL PAPER - 2.8%
Bluegrass
1.190%, 05/18/04 $ 495 $ 495
CS First Boston
1.415%, 10/01/03 1,981 1,981
Danske Bank
1.508%, 12/22/03 1,981 1,981
Independent IV
1.216%, 04/15/04 1,288 1,288
K2 USA
1.020%, 12/01/03 989 989
Leafs
1.339%, 04/20/04 1,367 1,367
Mitten Mortgage
1.130%, 10/08/03 1,387 1,387
Mortgage Interest Network
1.100%, 10/15/03 495 495
1.130%, 12/02/03 989 989
Orchard Park
1.245%, 04/06/04 198 198
1.220%, 07/06/04 2,198 2,198
---------------
TOTAL COMMERCIAL PAPER 13,368
---------------
CORPORATE OBLIGATIONS - 6.1%
Allstate Life Global
1.092%, 08/16/04 1,981 1,981
Bank of Scotland
1.100%, 03/05/04 991 991
Castle Hill III
1.176%, 09/16/04 594 594
Deutsche Bank
1.430%, 12/31/03 793 793
1.340%, 03/22/04 991 991
General Electric Capital Corporation
1.150%, 07/09/07 991 991
Halogen Fund
1.150%, 10/03/03 4,121 4,121
Lloyd's Bank
1.100%, 03/05/04 1,981 1,981
Metlife Global Funding
1.130%, 09/15/04 1,189 1,189
1.147%, 04/28/08 832 832
Monet Trust
1.210%, 12/28/03 1,981 1,981
Residential Mortgage Securities
1.140%, 09/11/04 1,486 1,486
Sigma Finance
1.268%, 08/09/04 1,981 1,981
SMM Trust 2002-M
1.140%, 09/23/04 3,319 3,319
Svenska Handlsbankn
1.100%, 03/03/04 1,981 1,981
1.100%, 03/15/04 357 357
Wells Fargo Bank
1.050%, 10/17/03 1,981 1,981
1.060%, 10/31/03 1,387 1,387
---------------
TOTAL CORPORATE OBLIGATIONS 28,937
---------------
</Table>
51
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- -------------------------------------------------------------------------------------
MONEY MARKET FUNDS - 0.1%
AIM Short Term Liquid Asset Portfolio 79,253 $ 79
Merrill Lynch Premier Institutional Fund 259,623 260
---------------
TOTAL MONEY MARKET FUNDS 339
---------------
OTHER SHORT-TERM INVESTMENTS - 2.3%
Commonwealth Life
1.430%, 10/01/03 $ 1,000 1,000
General Electric Capital Assurance
1.370%, 12/19/03 396 396
Liquid Funding
1.130%, 8/23/04 990 990
1.130%, 9/14/04 991 991
Premium Asset Trust 02-7
0.110%, 06/01/04 2,952 2,952
Security Life Denver
1.381%, 01/13/04 2,576 2,576
1.490%, 03/15/04 1,981 1,981
---------------
TOTAL OTHER SHORT-TERM INVESTMENTS 10,886
---------------
REPURCHASE AGREEMENTS - 15.6%
Bear Stearns
1.240%, dated 9/30/03, matures 10/1/03,
repurchase price $3,964,706 (collateralized
by Various securities:
Total Market Value $4,043,730) 3,963 3,963
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $4,953,480 (collateralized
by U.S. Government Securities:
Total Market Value $5,052,436) 4,953 4,953
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $614,232 (collateralized
by U.S. Government Securities:
Total Market Value $626,504) 614 614
CS First Boston
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $1,585,118 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $1,664,367) 1,585 1,585
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $990,694 (collateralized
by U.S. Government Securities:
Total Market Value $1,010,478) 991 991
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $3,962,777 (collateralized
by U.S. Government Securities:
Total Market Value $4,041,912) 3,963 3,963
Deutsche Bank
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $7,925,592 (collateralized
by Corporate Securities:
Total Market Value $8,321,583) 7,925 7,925
Goldman Sachs
1.268%, dated 9/30/03, matures 10/1/03,
repurchase price $2,972,098
(collateralized by Corporate Securities:
Total Market Value $3,119,950) 2,972 2,972
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------------------------------------
Goldman Sachs
1.330%, dated 9/30/03, matures 10/1/03,
repurchase price $1,981,402 (collateralized
by Various securities:
Total Market Value $2,042,612) $ 1,981 $ 1,981
Goldman Sachs
1.380%, dated 9/30/03, matures 10/1/03,
repurchase price $990,703 (collateralized
by Various securities:
Total Market Value $1,010,899) 991 991
Lehman Brothers
1.120%, dated 9/30/03, matures 10/1/03,
repurchase price $5,448,825 (collateralized
by U.S. Government Securities:
Total Market Value $5,557,644) 5,449 5,449
Lehman Brothers
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $1,981,391 (collateralized
by U.S. Government Securities:
Total Market Value $2,021,028) 1,981 1,981
Lehman Brothers
1.388%, dated 9/30/03, matures 10/1/03,
repurchase price $3,962,811 (collateralized
by Various securities:
Total Market Value $4,015,494) 3,963 3,963
Lehman Brothers
1.150%, dated 9/30/03, matures 10/1/03,
repurchase price $1,129,394 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $1,194,874) 1,129 1,129
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $5,944,171 (collateralized
by U.S. Government Securities:
Total Market Value $6,062,949) 5,944 5,944
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $178,884 (collateralized
by U.S. Government Securities:
Total Market Value $182,525) 179 179
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $495,348 (collateralized
by U.S. Government Securities:
Total Market Value $505,268) 495 495
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $1,188,834 (collateralized
by U.S. Government Securities:
Total Market Value $1,212,633) 1,189 1,189
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $3,962,781 (collateralized
by U.S. Government Securities:
Total Market Value $4,041,967) 3,963 3,963
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $4,953,476 (collateralized
by U.S. Government Securities:
Total Market Value $5,052,439) 4,953 4,953
Merrill Lynch
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $3,962,783 (collateralized
by Asset-Backed & U.S. Government Securities:
Total Market Value $4,042,047) 3,963 3,963
</Table>
The accompanying notes are an integral part of the financial statements.
52
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------------------------------------
Merrill Lynch
1.308%, dated 9/30/03, matures 10/1/03,
repurchase price $3,962,802
(collateralized by Corporate Securities:
Total Market Value $4,160,799) $ 3,963 $ 3,963
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $1,050,141 (collateralized
by Asset-Backed Securities:
Total Market Value $1,102,610) 1,050 1,050
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $6,162,149 (collateralized
by Collateralized Mortgage Obligations &
Asset-Backed Securities:
Total Market Value $6,471,450) 6,162 6,162
---------------
TOTAL REPURCHASE AGREEMENTS 74,321
---------------
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING
(Cost $127,851) 127,851
---------------
TOTAL INVESTMENTS - 127.8%
(Cost $528,287) 608,441
---------------
OTHER ASSETS AND LIABILITIES, NET - (27.8)% (132,389)
---------------
TOTAL NET ASSETS - 100.0% $ 476,052
---------------
</Table>
* Non-income producing security
(a) Security is fair valued. As of September 30, 2003, the market value of these
investments is $122,540 or 0.3% of total net assets. See note 2 in Notes to
Financial Statements.
(b) Securities considered illiquid investments under guidelines established by
the Board of Directors.
(c) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements.
Cl - Class
53
<Page>
SCHEDULE OF INVESTMENTS September 30, 2003
SMALL CAP SELECT
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------------
COMMON STOCKS - 98.1%
CONSUMER DISCRETIONARY - 25.8%
A.C. Moore Arts & Crafts* 595,450 $ 13,267
Abercrombie & Fitch* 716,640 19,858
Advanced Auto Parts* 172,260 12,213
ADVO* 103,770 4,320
Alliance Atlantis Communications, Cl B* 835,396 13,494
Anchor Glass Container* 190,040 3,098
AnnTaylor Stores* 223,460 7,182
Beazer Homes USA* 77,850 6,571
CBRL Group 158,980 5,641
CSK Auto* 459,750 7,089
Entercom Communications* 99,150 4,444
Fairmont Hotels & Resorts 230,220 5,928
Gaylord Entertainment* 435,600 10,694
Gray Television 612,320 7,152
Hancock Fabrics 514,060 8,112
Hearst-Argyle Television* 233,600 5,653
Jo-Ann Stores, Cl A* 213,250 5,950
Journal Communications* 107,170 1,774
Kirkland's* 570,035 9,138
Lin TV, Cl A* 362,280 7,702
Marvel Enterprises* 554,450 12,336
Michael's Stores 293,100 11,947
O'Charley's* 194,500 2,884
O'Reilly Automotive* 152,238 5,598
Polaris Industries 85,050 6,306
Radio One* 702,020 10,081
Ruby Tuesday 241,500 5,823
Ryland Group 81,820 5,982
Sharper Image* 280,870 6,477
Sinclair Broadcast Group, Cl A* 776,250 7,887
Sports Authority* 427,890 13,461
Standard Pacific 257,550 9,761
Station Casinos 228,760 7,000
TBC* 123,440 3,092
The Wet Seal, Cl A* 989,150 9,941
WCI Communities* 533,080 8,796
Young Broadcasting, Cl A* 293,590 5,751
---------------
292,403
---------------
CONSUMER STAPLES - 1.5%
American Italian Pasta* 217,750 8,425
Performance Food Group* 217,439 8,852
---------------
17,277
---------------
ENERGY - 5.3%
FMC Technologies* 235,850 5,052
Pioneer Natural Resources* 322,315 8,206
Premcor* 194,820 4,514
Ultra Petroleum* 1,506,800 21,020
Varco International* 901,600 15,246
Western Gas Resources 153,590 5,836
---------------
59,874
---------------
FINANCIALS - 12.8%
Amerus Group 301,490 10,251
Bank of Bermuda 137,300 5,320
City National 111,800 5,697
Commerce Bancorp 563,050 26,976
Cullen/Frost Bankers 185,280 6,898
Everest Re Group 63,650 $ 4,784
First Niagara Financial Group 459,250 6,935
Hudson City Bancorp 495,350 15,277
Investors Financial Services 370,440 11,632
Jefferies Group 602,308 17,316
Platinum Underwriter Holdings 377,700 10,613
PMI Group 158,170 5,338
Radian Group 188,375 8,364
RenaissanceRe Holdings 204,850 9,347
---------------
144,748
---------------
HEALTH CARE - 11.7%
Accredo Health* 51,550 1,443
Cephalon* 213,810 9,818
Cerner* 153,140 4,727
Community Health Systems* 663,846 14,405
Covance* 491,150 10,992
CTI Molecular Imaging* 636,150 9,396
Hollis-Eden Pharmaceuticals* 288,900 7,038
Inveresk Research Group* 104,850 2,081
Medicis, Cl A 92,800 5,438
Mid-Atlantic Medical Services* 83,850 4,312
NPS Pharmaceuticals* 312,880 8,714
Omnicare 265,685 9,581
Osteotech* 435,150 3,564
Pharmaceutical Product Development* 340,490 8,168
Respironics* 166,519 6,957
Techne* 118,580 3,770
Triad Hospitals* 535,265 16,208
United Surgical Partners* 221,220 6,261
---------------
132,873
---------------
INDUSTRIALS - 15.8%
Albany International, Cl A 400,950 12,365
Alliant Techsystems* 248,370 11,934
Allied Waste Industries* 852,000 9,202
Chicago Bridge & Iron 238,500 6,478
Heartland Express 243,500 5,849
Integrated Alarm Services* 1,154,070 9,641
Kennametal 233,100 8,718
Mercury Computer Systems* 377,500 8,052
Mesa Air Group* 442,900 4,916
MTC Technologies* 458,330 10,633
Navigant Consulting* 454,400 5,594
Navistar International* 401,110 14,953
Pacer International* 189,650 3,780
Republic Services 339,550 7,687
Ryder System 191,600 5,618
Shaw Group* 849,870 8,932
Swift Transportation* 406,150 9,216
Triumph Group* 247,600 7,378
United Defense Industries* 284,590 8,079
URS* 167,930 3,258
Waste Connections* 316,310 11,099
Werner Enterprises 236,950 5,428
---------------
178,810
---------------
INFORMATION TECHNOLOGY - 22.3%
Aeroflex* 1,032,224 9,135
ATI Technologies* 414,530 6,156
ATMI* 349,622 8,835
</Table>
The accompanying notes are an integral part of the financial statements.
54
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- -------------------------------------------------------------------------------------
BearingPoint* 1,921,530 $ 15,334
BMC Software* 535,500 7,459
Borland Software* 1,203,340 11,083
Brooks Automation* 111,440 2,329
Cabot Microelectronics* 65,050 3,626
Cognizant Technology Solutions* 193,430 7,055
Credence Systems* 1,035,963 11,914
Cypress Semiconductor* 266,740 4,716
Fairchild Semiconductor International, Cl A* 361,490 5,993
Inforte* 537,690 4,517
Internet Security Systems* 1,017,050 12,713
IXYS* 387,779 3,633
J2 Global Communications* 110,810 4,192
Logitech International* 182,640 5,662
Mykrolis* 653,128 7,929
Open Text* 504,810 17,229
Polycom* 403,940 6,709
Powerwave Technologies* 448,350 2,968
Research in Motion* 385,600 14,730
Semtech* 581,360 10,732
SERENA Software* 447,310 8,320
Take-Two Interactive Software* 515,271 17,607
TIBCO Software* 2,161,990 11,567
TriZetto Group* 351,400 2,354
UNOVA* 395,750 5,798
Varian Semiconductor Equipment Associates* 132,780 4,973
Vastera* 565,589 2,907
Verity* 617,600 8,072
Zoran* 283,850 5,535
---------------
251,782
---------------
MATERIALS - 2.4%
Bowater 225,600 9,489
Massey Energy 615,250 8,183
Methanex 675,080 6,319
Steel Dynamics* 186,400 2,822
---------------
26,813
---------------
TELECOMMUNICATION SERVICES - 0.5%
General Communication* 680,950 5,665
---------------
TOTAL COMMON STOCKS
(Cost $958,443) 1,110,245
---------------
SHORT TERM INVESTMENTS - 4.5%
RELATED PARTY MONEY MARKET FUND - 4.5%
First American Prime Obligations Fund, Cl Z (a) 50,660,012 50,660
---------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $50,660) 50,660
---------------
INVESTMENT PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 48.6%
COMMERCIAL PAPER - 5.1%
Bluegrass
1.190%, 05/18/04 $ 2,135 2,135
CS First Boston
1.415%, 10/01/03 8,539 8,539
Danske Bank
1.508%, 12/22/03 8,539 8,539
Independent IV
1.216%, 04/15/04 5,551 5,551
K2 USA
1.020%, 12/01/03 4,262 4,262
Leafs
1.339%, 04/20/04 $ 5,892 $ 5,892
Mitten Mortgage
1.130%, 10/08/03 5,976 5,976
Mortgage Interest Network
1.100%, 10/15/03 2,134 2,134
1.130%, 12/02/03 4,262 4,262
Orchard Park
1.245%, 04/06/04 854 854
1.220%, 07/06/04 9,474 9,474
---------------
TOTAL COMMERCIAL PAPER 57,618
---------------
CORPORATE OBLIGATIONS - 11.0%
Allstate Life Global
1.092%, 08/16/04 8,540 8,540
Bank of Scotland
1.100%, 03/05/04 4,270 4,270
Castle Hill III
1.176%, 09/16/04 2,562 2,562
Deutsche Bank
1.430%, 12/31/03 3,416 3,416
1.340%, 03/22/04 4,270 4,270
General Electric Capital Corporation
1.150%, 07/09/07 4,271 4,271
Halogen Fund
1.150%, 10/03/03 17,761 17,761
Lloyd's Bank
1.100%, 03/05/04 8,539 8,539
Metlife Global Funding
1.130%, 09/15/04 5,122 5,122
1.147%, 04/28/08 3,587 3,587
Monet Trust
1.210%, 12/28/03 8,540 8,540
Residential Mortgage Securities
1.140%, 09/11/04 6,405 6,405
Sigma Finance
1.268%, 08/09/04 8,538 8,538
SMM Trust 2002-M
1.140%, 09/23/04 14,304 14,304
Svenska Handlsbankn
1.100%, 03/03/04 8,539 8,539
1.100%, 03/15/04 1,537 1,537
Wells Fargo Bank
1.050%, 10/17/03 8,539 8,539
1.060%, 10/31/03 5,978 5,978
---------------
TOTAL CORPORATE OBLIGATIONS 124,718
---------------
MONEY MARKET FUNDS - 0.1%
AIM Short Term Liquid Asset Portfolio 341,581 341
Merrill Lynch Premier Institutional Fund 1,118,979 1,119
---------------
TOTAL MONEY MARKET FUNDS 1,460
---------------
OTHER SHORT-TERM INVESTMENTS - 4.1%
Commonwealth Life
1.430%, 10/01/03 4,311 4,311
General Electric Capital Assurance
1.370%, 12/19/03 1,708 1,708
Liquid Funding
1.130%, 8/23/04 4,268 4,268
1.130%, 9/14/04 4,269 4,269
Premium Asset Trust 02-7
0.110%, 06/01/04 12,724 12,724
Security Life Denver
1.381%, 01/13/04 11,101 11,101
1.490%, 03/15/04 8,540 8,540
---------------
TOTAL OTHER SHORT-TERM INVESTMENTS 46,921
---------------
</Table>
55
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 28.3%
Bear Stearns
1.240%, dated 9/30/03, matures 10/1/03,
repurchase price $17,087,912
(collateralized by Various securities:
Total Market Value $17,428,505) $ 17,079 $ 17,079
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $21,349,536 (collateralized
by U.S. Government Securities:
Total Market Value $21,776,038) 21,349 21,349
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $2,647,342 (collateralized
by U.S. Government Securities:
Total Market Value $2,700,238) 2,647 2,647
CS First Boston
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $6,831,872 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $7,173,434) 6,832 6,832
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $4,269,900 (collateralized
by U.S. Government Securities:
Total Market Value $4,355,167) 4,270 4,270
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $17,079,600 (collateralized
by U.S. Government Securities :
Total Market Value $17,420,670) 17,079 17,079
Deutsche Bank
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $34,159,359 (collateralized
by Corporate Securities:
Total Market Value $35,866,084) 34,158 34,158
Goldman Sachs
1.268%, dated 9/30/03, matures 10/1/03,
repurchase price $12,809,767
(collateralized by Corporate Securities:
Total Market Value $13,447,007) 12,809 12,809
Goldman Sachs
1.330%, dated 9/30/03, matures 10/1/03,
repurchase price $8,539,859
(collateralized by Various securities:
Total Market Value $8,803,672) 8,539 8,539
Goldman Sachs
1.380%, dated 9/30/03, matures 10/1/03,
repurchase price $4,269,936
(collateralized by Various securities:
Total Market Value $4,356,984) 4,270 4,270
Lehman Brothers
1.120%, dated 9/30/03, matures 10/1/03,
repurchase price $23,484,476 (collateralized
by U.S. Government Securities:
Total Market Value $23,953,488) 23,484 23,484
Lehman Brothers
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $8,539,812 (collateralized
by U.S. Government Securities:
Total Market Value $8,710,645) 8,540 8,540
Lehman Brothers
1.388%, dated 9/30/03, matures 10/1/03,
repurchase price $17,079,746
(collateralized by Various securities:
Total Market Value $17,306,809) $ 17,079 $ 17,079
Lehman Brothers
1.150%, dated 9/30/03, matures 10/1/03,
repurchase price $4,867,696 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $5,149,917) 4,868 4,868
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $25,619,422 (collateralized
by U.S. Government Securities:
Total Market Value $26,131,357) 25,619 25,619
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $770,991 (collateralized
by U.S. Government Securities:
Total Market Value $786,686) 771 771
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $2,134,952 (collateralized
by U.S. Government Securities:
Total Market Value $2,177,707) 2,135 2,135
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $5,123,884 (collateralized
by U.S. Government Securities:
Total Market Value $5,226,456) 5,124 5,124
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $17,079,614 (collateralized
by U.S. Government Securities:
Total Market Value $17,420,909) 17,079 17,079
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $21,349,518 (collateralized
by U.S. Government Securities:
Total Market Value $21,776,048) 21,349 21,349
Merrill Lynch
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $17,079,624 (collateralized
by Asset-Backed & U.S. Government Securities:
Total Market Value $17,421,254) 17,079 17,079
Merrill Lynch
1.308%, dated 9/30/03, matures 10/1/03,
repurchase price $17,079,708 (collateralized
by Corporate Securities:
Total Market Value $17,933,077) 17,079 17,079
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $4,526,116 (collateralized
by Asset-Backed Securities:
Total Market Value $4,752,256) 4,526 4,526
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $26,558,909 (collateralized
by Collateralized Mortgage Obligations &
Asset-Backed Securities:
Total Market Value $27,891,999) 26,558 26,558
---------------
TOTAL REPURCHASE AGREEMENTS 320,322
---------------
</Table>
The accompanying notes are an integral part of the financial statements.
56
<Page>
<Table>
<Caption>
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING
(Cost $551,039) $ 551,039
---------------
TOTAL INVESTMENTS - 151.2%
(Cost $1,560,142) 1,711,944
---------------
OTHER ASSETS AND LIABILITIES, NET - (51.2)% (580,057)
---------------
TOTAL NET ASSETS - 100.0% $ 1,131,887
---------------
</Table>
* Non-income producing security
(a) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to
Financial Statements.
Cl - Class
57
<Page>
SCHEDULE OF INVESTMENTS September 30, 2003
SMALL CAP VALUE FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 97.6%
CONSUMER DISCRETIONARY - 14.7%
A.C. Moore Arts & Crafts* 234,100 $ 5,216
ADVO* 54,550 2,271
Ashworth* 452,100 3,133
Cooper Tire & Rubber 208,340 3,306
CSK Auto* 163,600 2,523
D.R. Horton 152,076 4,973
Fairmont Hotels & Resorts 100,280 2,582
Information Holdings* 78,500 1,572
Isle of Capri Casinos* 131,290 2,601
La Quinta (REIT)* 447,260 2,786
Lin TV, Cl A* 112,110 2,383
LodgeNet Entertainment* 370,210 5,738
ProQuest* 344,960 9,072
Regis 203,700 6,539
R.H. Donnelley* 59,860 2,419
Ruby Tuesday 104,010 2,508
Stanley Furniture 18,749 572
Steiner Leisure* 272,000 5,212
Tower Automotive* 800,800 3,604
West Marine* 88,100 1,678
-------------
70,688
-------------
CONSUMER STAPLES - 1.3%
Dean Foods* 134,550 4,175
International Multifoods* 93,300 2,179
-------------
6,354
-------------
ENERGY - 4.4%
Brigham Exploration* 308,560 2,098
Comstock Resources* 190,700 2,548
Evergreen Resources* 183,100 4,944
Forest Oil* 67,520 1,617
General Maritime* 110,450 1,264
Key Energy Services* 195,100 1,883
Newfield Exploration* 65,580 2,529
Newpark Resources* 485,850 2,089
Tsakos Energy Navigation 142,100 2,032
-------------
21,004
-------------
FINANCIALS - 28.0%
Allmerica Financial* 59,370 1,414
American Capital Strategies 198,020 4,923
Astoria Financial 165,850 5,125
Camden Property Trust (REIT) 64,260 2,469
Capitol Bancorp 89,900 2,405
CBL & Associates Properties (REIT) 108,900 5,434
Chelsea Property Group (REIT) 55,820 2,674
City National 103,600 5,279
Community First Bankshares 161,820 4,277
Corporate Office Properties Trust (REIT) 274,100 5,074
Downey Financial 23,100 1,079
E*TRADE Group* 380,210 3,521
Federal Agricultural Mortgage, Cl C* 76,750 2,072
First Republic Bank 275,920 8,507
Glenborough Realty Trust (REIT) 109,210 2,060
Greater Bay Bancorp 168,700 3,509
Highwoods Properties (REIT) 95,000 2,267
Horace Mann Educators 83,610 1,213
Lexington Corporate Properties Trust (REIT) 187,886 3,600
Local Financial* 217,600 $ 3,893
Markel* 14,150 3,778
National Commerce Financial 118,100 2,938
Newcastle Investment 107,500 2,471
Pan Pacific Retail Properties (REIT) 44,600 1,918
Philadelphia Consolidated Holding* 131,100 6,057
Phoenix Companies 259,900 3,002
Platinum Underwriter Holdings 82,400 2,315
Protective Life 222,100 6,630
PS Business Parks (REIT) 80,850 3,051
Radian Group 286,578 12,724
Redwood Trust (REIT) 110,070 4,667
RLI 72,950 2,402
Sterling Bancshares 290,800 3,469
Texas Capital Bancshares* 193,160 2,360
Umpqua Holdings 100,690 1,916
Windrose Medical Properties Trust (REIT) 303,300 3,549
-------------
134,042
-------------
HEALTH CARE - 7.2%
Abgenix* 109,910 1,593
Cooper 111,400 4,540
Cytyc* 714,550 10,747
Natus Medical* 531,500 2,392
Province Healthcare* 461,400 5,975
Renal Care* 103,880 3,548
Res-Care* 131,400 1,012
Serologicals* 359,450 4,727
-------------
34,534
-------------
INDUSTRIALS - 19.1%
Alliant Techsystems* 128,025 6,152
American Woodmark 51,070 2,286
Barnes Group 112,500 2,920
C&D Technologies 116,200 2,198
Dollar Thrifty Automotive* 117,450 2,668
ExpressJet Holdings* 431,000 5,948
Integrated Alarm Services* 404,260 3,377
ITT Educational Services* 174,700 8,372
Landstar* 89,600 5,467
L.B. Foster* 254,000 1,455
Mercury Computer Systems* 34,150 728
Moog, Cl A* 233,900 9,169
NCO Group* 244,000 5,727
Oshkosh Truck 68,000 2,693
Pacer International* 136,270 2,716
Pentair 76,300 3,042
School Specialty* 329,800 9,304
Simpson Manufacturing* 56,970 2,329
Teletech Holdings* 280,100 1,779
Tredegar 110,600 1,665
Wabash National* 81,640 1,302
Waste Connections* 181,700 6,376
York International 113,280 3,918
-------------
91,591
-------------
INFORMATION TECHNOLOGY - 11.9%
3Com* 275,000 1,622
Actel* 230,600 5,527
Advanced Digital Information* 169,800 2,381
Andrew* 179,773 2,209
</Table>
The accompanying notes are an integral part of the financial statements.
58
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
BARRA* 138,700 $ 5,208
Black Box 47,050 1,873
Carreker* 526,000 4,234
CommScope* 96,950 1,169
DSP Group* 71,560 1,783
Electronics for Imaging* 47,370 1,105
Hyperion Solutions* 66,300 1,914
Iomega* 42,000 468
JDA Software* 147,100 2,187
Maxtor* 580,790 7,068
Mykrolis* 325,700 3,954
Nassda* 192,150 1,512
Open Text* 78,830 2,690
RadiSys* 293,600 5,297
SERENA Software* 66,600 1,239
THQ* 167,200 2,745
Vastera* 181,250 932
-------------
57,117
-------------
MATERIALS - 5.0%
Crown Holdings* 308,340 2,081
FMC* 90,700 2,286
Georgia Gulf 200,700 4,686
Gibraltar Steel 96,300 2,122
GrafTech International* 345,070 2,761
Headwaters* 156,650 2,522
Louisiana Pacific* 304,200 4,192
Millennium Chemicals* 226,710 2,165
Quanex 34,100 1,146
-------------
23,961
-------------
TELECOMMUNICATION SERVICES - 0.5%
General Communication* 283,380 2,358
-------------
UTILITIES - 5.5%
AGL Resources 70,300 1,980
Black Hills 113,350 3,498
CLECO 168,100 2,747
CMS Energy* 285,170 2,102
New Jersey Resources 63,900 2,303
NSTAR 76,410 3,629
PNM Resources 85,550 2,399
Unisource Energy Holding 397,900 7,568
-------------
26,226
-------------
TOTAL COMMON STOCKS
(Cost $366,772) 467,875
-------------
SHORT TERM INVESTMENTS - 2.2%
RELATED PARTY MONEY MARKET FUND - 2.2%
First American Prime Obligations Fund, Cl Z (a) 10,341,375 10,341
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $10,341) 10,341
-------------
INVESTMENT PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 35.4%
COMMERCIAL PAPER - 3.7%
Bluegrass
1.190%, 05/18/04 $ 659 659
CS First Boston
1.415%, 10/01/03 2,638 2,638
Danske Bank
1.508%, 12/22/03 $ 2,638 $ 2,638
Independent IV
1.216%, 04/15/04 1,715 1,715
K2 USA
1.020%, 12/01/03 1,316 1,316
Leafs
1.339%, 04/20/04 1,820 1,820
Mitten Mortgage
1.130%, 10/08/03 1,846 1,846
Mortgage Interest Network
1.100%, 10/15/03 659 659
1.130%, 12/02/03 1,316 1,316
Orchard Park
1.245%, 04/06/04 264 264
1.220%, 07/06/04 2,926 2,926
-------------
TOTAL COMMERCIAL PAPER 17,797
-------------
CORPORATE OBLIGATIONS - 8.0%
Allstate Life Global
1.092%, 08/16/04 2,638 2,638
Bank of Scotland
1.100%, 03/05/04 1,319 1,319
Castle Hill III
1.176%, 09/16/04 791 791
Deutsche Bank
1.430%, 12/31/03 1,055 1,055
1.340%, 03/22/04 1,319 1,319
General Electric Capital Corporation
1.150%, 07/09/07 1,319 1,319
Halogen Fund
1.150%, 10/03/03 5,486 5,486
Lloyd's Bank
1.100%, 03/05/04 2,638 2,638
Metlife Global Funding
1.130%, 09/15/04 1,582 1,582
1.147%, 04/28/08 1,108 1,108
Monet Trust
1.210%, 12/28/03 2,638 2,638
Residential Mortgage Securities
1.140%, 09/11/04 1,978 1,978
Sigma Finance
1.268%, 08/09/04 2,637 2,637
SMM Trust 2002-M
1.140%, 09/23/04 4,418 4,418
Svenska Handlsbankn
1.100%, 03/03/04 2,638 2,638
1.100%, 03/15/04 475 475
Wells Fargo Bank
1.050%, 10/17/03 2,638 2,638
1.060%, 10/31/03 1,846 1,846
-------------
TOTAL CORPORATE OBLIGATIONS 38,523
-------------
MONEY MARKET FUNDS - 0.1%
AIM Short Term Liquid Asset Portfolio 105,510 105
Merrill Lynch Premier Institutional Fund 345,640 345
-------------
TOTAL MONEY MARKET FUNDS 450
-------------
OTHER SHORT-TERM INVESTMENTS - 3.0%
Commonwealth Life
1.430%, 10/01/03 1,332 1,332
General Electric Capital Assurance
1.370%, 12/19/03 528 528
</Table>
59
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Liquid Funding
1.130%, 8/23/04 $ 1,319 $ 1,319
1.130%, 9/14/04 1,319 1,319
Premium Asset Trust 02-7
0.110%, 06/01/04 3,930 3,930
Security Life Denver
1.381%, 01/13/04 3,429 3,429
1.490%, 03/15/04 2,638 2,638
-------------
TOTAL OTHER SHORT-TERM INVESTMENTS 14,495
-------------
REPURCHASE AGREEMENTS - 20.6%
Bear Stearns
1.240%, dated 9/30/03, matures 10/1/03,
repurchase price $5,278,273 (collateralized
by Various securities:
Total Market Value $5,383,479) 5,276 5,276
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $6,594,644 (collateralized
by U.S. Government Securities:
Total Market Value $6,726,386) 6,594 6,594
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $817,736 (collateralized
by U.S. Government Securities:
Total Market Value $834,075) 818 818
CS First Boston
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $2,110,292 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $2,215,797) 2,110 2,110
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $1,318,927 (collateralized
by U.S. Government Securities:
Total Market Value $1,345,265) 1,319 1,319
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $5,275,706 (collateralized
by U.S. Government Securities :
Total Market Value $5,381,059) 5,276 5,276
Deutsche Bank
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $10,551,461
(collateralized by Corporate Securities:
Total Market Value $11,078,650) 10,551 10,551
Goldman Sachs
1.268%, dated 9/30/03, matures 10/1/03,
repurchase price $3,956,800 (collateralized
by Corporate Securities:
Total Market Value $4,153,637) 3,957 3,957
Goldman Sachs
1.330%, dated 9/30/03, matures 10/1/03,
repurchase price $2,637,871 (collateralized
by Various securities:
Total Market Value $2,719,360) 2,638 2,638
Goldman Sachs
1.380%, dated 9/30/03, matures 10/1/03,
repurchase price $1,318,938 (collateralized
by Various securities:
Total Market Value $1,345,826) 1,319 1,319
Lehman Brothers
1.120%, dated 9/30/03, matures 10/1/03,
repurchase price $7,254,104 (collateralized
by U.S. Government Securities:
Total Market Value $7,398,977) $ 7,254 $ 7,254
Lehman Brothers
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $2,637,857 (collateralized
by U.S. Government Securities:
Total Market Value $2,690,625) 2,638 2,638
Lehman Brothers
1.388%, dated 9/30/03, matures 10/1/03,
repurchase price $5,275,751 (collateralized
by Various securities:
Total Market Value $5,345,888) 5,276 5,276
Lehman Brothers
1.150%, dated 9/30/03, matures 10/1/03,
repurchase price $1,503,579 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $1,590,754) 1,504 1,504
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $7,913,566 (collateralized
by U.S. Government Securities:
Total Market Value $8,071,697) 7,913 7,913
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $238,151 (collateralized
by U.S. Government Securities:
Total Market Value $242,999) 238 238
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $659,464 (collateralized
by U.S. Government Securities:
Total Market Value $672,670) 659 659
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $1,582,713 (collateralized
by U.S. Government Securities:
Total Market Value $1,614,397) 1,583 1,583
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $5,275,710 (collateralized
by U.S. Government Securities:
Total Market Value $5,381,133) 5,275 5,275
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $6,594,638 (collateralized
by U.S. Government Securities:
Total Market Value $6,726,389) 6,594 6,594
Merrill Lynch
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $5,275,713 (collateralized
by Asset-Backed & U.S. Government Securities:
Total Market Value $5,381,239) 5,276 5,276
Merrill Lynch
1.308%, dated 9/30/03, matures 10/1/03,
repurchase price $5,275,739 (collateralized
by Corporate Securities:
Total Market Value $5,539,336) 5,275 5,275
</Table>
The accompanying notes are an integral part of the financial statements.
60
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $1,398,069 (collateralized
by Asset-Backed Securities:
Total Market Value $1,467,921) $ 1,398 $ 1,398
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $8,203,763 (collateralized
by Collateralized Mortgage Obligations &
Asset-Backed Securities:
Total Market Value $8,615,541) 8,203 8,203
-------------
TOTAL REPURCHASE AGREEMENTS 98,944
-------------
TOTAL INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING
(Cost $170,209) 170,209
-------------
TOTAL INVESTMENTS - 135.2%
(Cost $547,322) 648,425
-------------
OTHER ASSETS AND LIABILITIES, NET - (35.2)% (168,898)
-------------
TOTAL NET ASSETS - 100.0% $ 479,527
-------------
</Table>
* Non-income producing security
(a) This money market fund is advised by U.S. Bancorp Asset Management, Inc.
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements.
Cl - Class
REIT - Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
61
<Page>
STATEMENTS OF ASSETS AND LIABILITIES September 30, 2003, in thousands, except
for per share data
<Table>
<Caption>
SMALL CAP GROWTH SMALL CAP SMALL CAP
OPPORTUNITIES FUND SELECT FUND VALUE FUND
- -----------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated securities, at value*+ $ 578,482 $ 1,661,284 $ 638,084
Investments in affiliated securities, at value** 29,959 50,660 10,341
Cash 993 71 1,452
Dividends and interest receivable 155 213 491
Capital shares sold 1,733 711 663
Receivable for investment securities sold 2,999 5,347 2,898
Prepaid expenses and other assets 37 32 16
- -----------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 614,358 1,718,318 653,945
=================================================================================================================
LIABILITIES:
Capital shares redeemed 1,909 2,899 2,354
Payable upon return of securities loaned 127,851 551,039 170,209
Payable for investment securities purchased 7,920 31,549 1,443
Payable for advisory, co-administration, and custodian fees 600 905 390
Distribution and shareholder servicing fees 25 37 21
Accrued expense and other liabilities 1 2 1
- -----------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 138,306 586,431 174,418
=================================================================================================================
NET ASSETS $ 476,052 $ 1,131,887 $ 479,527
=================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 407,372 $ 1,009,602 $ 371,932
Accumulated net investment income (loss) (3) (2) 144
Accumulated net realized gain (loss) (11,471) (29,515) 6,348
Unrealized appreciation of investments 80,154 151,802 101,103
- -----------------------------------------------------------------------------------------------------------------
NET ASSETS $ 476,052 $ 1,131,887 $ 479,527
=================================================================================================================
* Investments in unaffiliated securities, at cost $ 498,328 $ 1,509,482 $ 536,981
** Investments in affiliated securities, at cost $ 29,959 $ 50,660 $ 10,341
+Including securities loaned, at value $ 117,433 $ 527,212 $ 162,683
CLASS A:
Net assets $ 81,999 $ 73,445 $ 32,416
Shares issued and outstanding ($0.0001 par value
-- 2 billion authorized) 3,736 5,060 2,270
Net asset value and redemption price per share $ 21.95 $ 14.52 $ 14.28
Maximum offering price per share (1) $ 23.23 $ 15.37 $ 15.11
CLASS B:
Net assets $ 6,441 $ 11,541 $ 12,560
Shares issued and outstanding ($0.0001 par value
-- 2 billion authorized) 306 860 924
Net asset value, offering price, and redemption price
per share (2) $ 21.05 $ 13.42 $ 13.60
CLASS C:
Net assets $ 1,529 $ 11,128 $ 4,354
Shares issued and outstanding ($0.0001 par value
-- 2 billion authorized) 71 777 317
Net asset value and redemption price per share (2) $ 21.65 $ 14.32 $ 13.74
Maximum offering price per share (3) $ 21.87 $ 14.46 $ 13.88
CLASS S:
Net assets $ 3,694 $ 11,627 $ 1,351
Shares issued and outstanding ($0.0001 par value
-- 2 billion authorized) 168 803 95
Net asset value, offering price, and redemption
price per share $ 21.95 $ 14.49 $ 14.27
CLASS Y:
Net assets $ 382,389 $ 1,024,146 $ 428,846
Shares issued and outstanding ($0.0001 par value
-- 2 billion authorized) 16,843 68,365 29,697
Net asset value, offering price, and redemption price
per share $ 22.70 $ 14.98 $ 14.44
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.50%
(2) Class B and C have a contingent deferred sales charge. For a description of
this sales charge, see notes 1 and 3 in Notes to Financial Statements.
(3) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%
The accompanying notes are an integral part of the financial statements.
62
<Page>
STATEMENTS OF OPERATIONS For the fiscal year ended September 30, 2003, in
thousands
<Table>
<Caption>
SMALL CAP GROWTH SMALL CAP SMALL CAP
OPPORTUNITIES FUND SELECT FUND VALUE FUND
- -----------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest from affiliated securities $ 189 $ 626 $ 247
Dividends 698 3,224 4,935
Less: Foreign taxes withheld (1) (15) --
Securities lending 102 224 115
Other income 19 188 92
- -----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,007 4,247 5,389
=================================================================================================================
EXPENSES:
Investment advisory fees 4,510 6,036 2,998
Co-administration fees and expenses (including per account
transfer agency fees) 909 2,372 1,175
Custodian fees 32 86 43
Directors' fees 5 14 7
Registration fees 45 26 25
Professional fees 11 32 14
Printing 11 32 15
Other 8 21 13
Distribution and shareholder servicing fees - Class A 144 129 71
Distribution and shareholder servicing fees - Class B 46 81 119
Distribution and shareholder servicing fees - Class C 5 75 42
Shareholder servicing fees - Class S 7 25 2
- -----------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 5,733 8,929 4,524
=================================================================================================================
Less: Fee waivers (119) (341) (93)
- -----------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 5,614 8,588 4,431
=================================================================================================================
INVESTMENT INCOME (LOSS) - NET (4,607) (4,341) 958
=================================================================================================================
REALIZED AND UNREALIZED GAIN ON INVESTMENTS - NET:
Net realized gain on investments 10,572 67,050 10,221
Net change in unrealized appreciation or depreciation of
investments 139,419 220,321 94,923
- -----------------------------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 149,991 287,371 105,144
=================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 145,384 $ 283,030 $ 106,102
=================================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
63
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
SMALL CAP GROWTH SMALL CAP SMALL CAP
OPPORTUNITIES FUND SELECT FUND VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01
TO TO TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income (loss) - net $ (4,607) $ (4,747) $ (4,341) $ (2,747) $ 958 $ 359
Net realized gain (loss) on investments 10,572 (14,699) 67,050 (14,145) 10,221 (4,026)
Net change in unrealized appreciation or
depreciation of investments 139,419 (38,629) 220,321 (37,514) 94,923 595
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 145,384 (58,075) 283,030 (54,406) 106,102 (3,072)
- ------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A -- -- -- -- (8) (9)
Class Y -- -- -- -- (615) (232)
Net realized gain on investments:
Class A -- -- -- (1,300) -- (4,957)
Class B -- -- -- (158) -- (1,853)
Class C -- -- -- -- -- (685)
Class S -- -- -- (450) -- --
Class Y -- -- -- (21,686) -- (60,108)
Tax return of capital:
Class A -- (79) -- -- -- (9)
Class B -- (7) -- -- -- (4)
Class C -- -- -- -- -- (2)
Class S -- (4) -- -- -- --
Class Y -- (367) -- (1) -- (125)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (457) -- (23,595) (623) (67,984)
==============================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 55,667 66,579 16,194 29,998 6,374 15,440
Reinvestment of distributions -- 74 -- 1,251 8 4,903
Payments for redemptions (44,245) (54,278) (15,339) (7,318) (8,061) (22,134)
Shares issued in connection with the
acquisition of Fund net assets -- -- 20,525 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class A transactions 11,422 12,375 21,380 23,931 (1,679) (1,791)
- ------------------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 1,532 2,871 1,801 4,926 917 2,929
Reinvestment of distributions -- 5 -- 151 -- 1,829
Payments for redemptions (959) (887) (1,370) (1,319) (3,127) (2,742)
Shares issued in connection with the
acquisition of Fund net assets -- -- 3,570 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B
transactions 573 1,989 4,001 3,758 (2,210) 2,016
- ------------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 1,218 547 3,292 4,274 839 1,961
Reinvestment of distributions -- -- -- -- -- 680
Payments for redemptions (195) (191) (1,945) (331) (2,299) (1,345)
Shares issued in connection with the
acquisition of Fund net assets -- -- 3,933 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C
transactions 1,023 356 5,280 3,943 (1,460) 1,296
- ------------------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 1,143 1,231 5,478 8,056 776 554
Reinvestment of distributions -- 3 -- 414 -- --
Payments for redemptions (797) (822) (4,898) (3,379) (127) (30)
Shares issued in connection with the
acquisition of Fund net assets -- -- 494 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class S transactions 346 412 1,074 5,091 649 524
- ------------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 126,507 38,639 240,050 215,508 61,916 115,959
Reinvestment of distributions -- 334 -- 17,900 486 50,436
Payments for redemptions (68,542) (52,763) (186,907) (54,921) (96,256) (170,110)
Shares issued in connection with the
acquisition of Fund net assets -- -- 182,343 -- -- --
Shares issued in connection with the
acquisition of Common Trust Fund net assets -- -- 129,674 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y
transactions 57,965 (13,790) 365,160 178,487 (33,854) (3,715)
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 71,329 1,342 396,895 215,210 (38,554) (1,670)
- ------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 216,713 (57,190) 679,925 137,209 66,925 (72,726)
NET ASSETS AT BEGINNING OF PERIOD 259,339 316,529 451,962 314,753 412,602 485,328
==============================================================================================================================
NET ASSETS AT END OF PERIOD $ 476,052 $ 259,339 $ 1,131,887 $ 451,962 $ 479,527 $ 412,602
==============================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) $ (3) $ -- $ (2) $ (2) $ 144 $ 28
==============================================================================================================================
</Table>
(1) See Note 4 in Notes to Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
64
<Page>
(This page has been left blank intentionally.)
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET GAINS FROM NET DISTRIBUTIONS FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET RETURN OF
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME REALIZED GAINS CAPITAL
- ----------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH
OPPORTUNITIES (1)
Class A
2003 (3) $ 13.86 $ (0.28) $ 8.37 $ -- $ -- $ --
2002 16.89 (0.26) (2.74) -- -- (0.03)
2001 (2) (3) 31.26 (0.17) (5.20) -- (9.00) --
2000 (3) (4) 21.80 (0.40) 15.99 -- (6.13) --
1999 (4) 12.38 (0.26) 9.71 -- (0.03) --
1998 (3) (4) 17.47 (0.25) (3.17) -- (1.67) --
Class B
2003 (3) $ 13.39 $ (0.40) $ 8.06 $ -- $ -- $ --
2002 16.44 (0.39) (2.63) -- -- (0.03)
2001 (2) (3) 30.84 (0.31) (5.09) -- (9.00) --
2000 (3) (4) 21.69 (0.61) 15.89 -- (6.13) --
1999 (3) (4) (5) 13.74 (0.30) 8.25 -- -- --
Class C
2003 (3) $ 13.77 $ (0.43) $ 8.31 $ -- $ -- $ --
2002 16.90 (0.19) (2.91) -- -- (0.03)
2001 (3) (6) 16.34 -- 0.56 -- -- --
Class S
2003 (3) $ 13.86 $ (0.28) $ 8.37 $ -- $ -- $ --
2002 16.89 (0.26) (2.74) -- -- (0.03)
2001 (3) (7) 20.01 (0.19) (2.93) -- -- --
Class Y
2003 (3) $ 14.30 $ (0.25) $ 8.65 $ -- $ -- $ --
2002 17.38 (0.25) (2.80) -- -- (0.03)
2001 (2) (3) 31.83 (0.12) (5.33) -- (9.00) --
2000 (4) 22.06 (0.31) 16.21 -- (6.13) --
1999 (4) 12.49 (0.19) 9.79 -- (0.03) --
1998 (4) 17.57 (0.22) (3.19) -- (1.67) --
SMALL CAP SELECT (8)
Class A
2003 (3) $ 10.68 $ (0.09) $ 3.93 $ -- $ -- $ --
2002 (3) 11.97 (0.10) (0.30) -- (0.89) --
2001 (2) (3) 17.60 (0.03) (1.89) -- (3.71) --
2000 (3) (9) 13.84 (0.10) 4.13 (0.01) (0.26) --
1999 (3) (10) 11.86 (0.07) 2.10 -- (0.05) --
1998 (10) 15.03 (0.06) (1.89) -- (1.22) --
Class B
2003 (3) $ 9.95 $ (0.17) $ 3.64 $ -- $ -- $ --
2002 (3) 11.28 (0.19) (0.25) -- (0.89) --
2001 (2) (3) 16.90 (0.12) (1.79) -- (3.71) --
2000 (3) (9) 13.38 (0.13) 3.92 -- (0.27) --
1999 (3) (10) 11.53 (0.16) 2.06 -- (0.05) --
1998 (10) 14.74 (0.14) (1.85) -- (1.22) --
Class C
2003 (3) $ 10.62 $ (0.18) $ 3.88 $ -- $ -- $ --
2002 (3) 11.97 (0.20) (0.26) -- (0.89) --
2001 (3) (6) 11.72 -- 0.25 -- -- --
Class S
2003 (3) $ 10.66 $ (0.09) $ 3.92 $ -- $ -- $ --
2002 (3) 11.94 (0.10) (0.29) -- (0.89) --
2001 (2) (3) 17.55 (0.01) (1.89) -- (3.71) --
2000 (3) (9) 13.80 (0.01) 4.03 (0.01) (0.26) --
1999 (3) (10) 11.82 (0.07) 2.10 -- (0.05) --
1998 (10) 14.98 (0.07) (1.87) -- (1.22) --
Class Y
2003 (3) $ 11.00 $ (0.06) $ 4.04 $ -- $ -- $ --
2002 (3) 12.26 (0.07) (0.30) -- (0.89) --
2001 (2) (3) 17.92 -- (1.95) -- (3.71) --
2000 (3) (9) 14.07 0.05 4.10 (0.03) (0.27) --
1999 (3) (10) 12.02 (0.03) 2.13 -- (0.05) --
1998 (10) 15.17 (0.02) (1.91) -- (1.22) --
</Table>
(1) The financial highlights for the Small Cap Growth Opportunities Fund as set
forth herein include the historical financial highlights of the Firstar
Micro Cap Fund. The assets of the Firstar Fund were acquired by the First
American Small Cap Growth Opportunities Fund on September 24, 2001. In
connection with such acquisition, (i) Class A shares of the Firstar Micro
Cap Fund were exchanged for Class A shares of the First American Small Cap
Growth Opportunities Fund, (ii) Firstar Class B shares were exchanged for
Class B shares of the First American Fund, (iii) Firstar Class Y shares were
exchanged for Class S shares of the First American Fund, and (iv) Firstar
Institutional Class shares were exchanged for Class Y shares of the First
American Fund.
(2) For the period November 1, 2000 to September 30, 2001. Effective in 2001,
the Fund's fiscal year end was changed from October 31 to September 30. All
ratios for the period have been annualized, except total return and
portfolio turnover.
(3) Per share data calculated using average shares outstanding method.
(4) For the fiscal period ended October 31.
(5) Class of shares have been offered since March 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
The accompanying notes are an integral part of the financial statements.
66
<Page>
<Table>
<Caption>
NET ASSET RATIO OF
VALUE NET ASSETS EXPENSES TO
END OF TOTAL END OF AVERAGE
PERIOD RETURN (11) PERIOD (000) NET ASSETS
- -------------------------------------------------------------------------------------
SMALL CAP GROWTH
OPPORTUNITIES (1)
Class A
2003 (3) $ 21.95 58.37% $ 81,999 1.93%
2002 13.86 (17.84) 44,834 1.93
2001 (2) (3) 16.89 (21.51) 45,233 1.93
2000 (3) (4) 31.26 87.43 43,031 1.96
1999 (4) 21.80 76.54 21,988 2.01
1998 (3) (4) 12.38 (21.71) 12,419 1.99
Class B
2003 (3) $ 21.05 57.21% $ 6,441 2.68%
2002 13.39 (18.45) 3,779 2.68
2001 (2) (3) 16.44 (22.07) 3,165 2.68
2000 (3) (4) 30.84 86.13 2,136 2.71
1999 (3) (4) (5) 21.69 57.86 140 2.78
Class C
2003 (3) $ 21.65 57.23% $ 1,529 2.68%
2002 13.77 (18.42) 260 2.68
2001 (3) (6) 16.90 3.43 1 1.63
Class S
2003 (3) $ 21.95 58.37% $ 3,694 1.93%
2002 13.86 (17.84) 2,027 1.93
2001 (3) (7) 16.89 (15.59) 2,014 1.94
Class Y
2003 (3) $ 22.70 58.74% $ 382,389 1.68%
2002 14.30 (17.62) 208,439 1.68
2001 (2) (3) 17.38 (21.35) 266,115 1.68
2000 (4) 31.83 87.90 322,981 1.71
1999 (4) 22.06 77.06 150,898 1.76
1998 (4) 12.49 (21.51) 72,696 1.74
SMALL CAP SELECT (8)
Class A
2003 (3) $ 14.52 35.96% $ 73,445 1.21%
2002 (3) 10.68 (4.56) 33,586 1.21
2001 (2) (3) 11.97 (12.63) 17,351 1.19
2000 (3) (9) 17.60 29.65 9,538 1.28
1999 (3) (10) 13.84 17.21 8,885 1.26
1998 (10) 11.86 (14.19) 11,601 1.25
Class B
2003 (3) $ 13.42 34.88% $ 11,541 1.96%
2002 (3) 9.95 (5.23) 4,613 1.96
2001 (2) (3) 11.28 (13.21) 1,979 1.93
2000 (3) (9) 16.90 28.81 1,331 1.98
1999 (3) (10) 13.38 16.57 1,094 1.96
1998 (10) 11.53 (14.79) 1,286 1.95
Class C
2003 (3) $ 14.32 34.84% $ 11,128 1.96%
2002 (3) 10.62 (5.09) 3,096 1.96
2001 (3) (6) 11.97 2.13 -- --
Class S
2003 (3) $ 14.49 35.93% $ 11,627 1.21%
2002 (3) 10.66 (4.48) 7,640 1.21
2001 (2) (3) 11.94 (12.52) 3,721 1.07
2000 (3) (9) 17.55 29.67 4,442 1.28
1999 (3) (10) 13.80 17.27 2,448 1.26
1998 (10) 11.82 (14.17) 25,037 1.25
Class Y
2003 (3) $ 14.98 36.18% $ 1,024,146 0.96%
2002 (3) 11.00 (4.19) 403,027 0.96
2001 (2) (3) 12.26 (12.49) 291,706 0.93
2000 (3) (9) 17.92 30.01 134,617 0.98
1999 (3) (10) 14.07 17.57 111,643 0.96
1998 (10) 12.02 (13.90) 129,591 0.95
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
INVESTMENT AVERAGE (LOSS)
INCOME (LOSS) NET ASSETS TO AVERAGE NET PORTFOLIO
TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------------
SMALL CAP GROWTH
OPPORTUNITIES (1)
Class A
2003 (3) (1.63)% 1.97% (1.67)% 137%
2002 (1.53) 1.97 (1.57) 123
2001 (2) (3) (0.91) 1.99 (0.97) 125
2000 (3) (4) (1.31) 1.96 (1.31) 179
1999 (4) (1.43) 2.02 (1.44) 200
1998 (3) (4) (1.63) 2.06 (1.70) 136
Class B
2003 (3) (2.38)% 2.72% (2.42)% 137%
2002 (2.28) 2.72 (2.32) 123
2001 (2) (3) (1.68) 2.74 (1.74) 125
2000 (3) (4) (2.06) 2.71 (2.06) 179
1999 (3) (4) (5) (2.36) 2.78 (2.36) 200
Class C
2003 (3) (2.38)% 2.72% (2.42)% 137%
2002 (2.31) 2.72 (2.35) 123
2001 (3) (6) (0.41) 1.76 (0.54) 125
Class S
2003 (3) (1.62)% 1.97% (1.66)% 137%
2002 (1.53) 1.97 (1.57) 123
2001 (3) (7) (1.06) 2.00 (1.12) 125
Class Y
2003 (3) (1.38)% 1.72% (1.42)% 137%
2002 (1.28) 1.72 (1.32) 123
2001 (2) (3) (0.64) 1.74 (0.70) 125
2000 (4) (1.06) 1.71 (1.06) 179
1999 (4) (1.18) 1.77 (1.19) 200
1998 (4) (1.38) 1.81 (1.45) 136
SMALL CAP SELECT (8)
Class A
2003 (3) (0.73)% 1.25% (0.77)% 145%
2002 (3) (0.81) 1.25 (0.85) 171
2001 (2) (3) (0.24) 1.22 (0.27) 204
2000 (3) (9) (0.01) 1.39 (0.12) 91
1999 (3) (10) (0.57) 1.36 (0.67) 72
1998 (10) (0.45) 1.35 (0.55) 70
Class B
2003 (3) (1.48)% 2.00% (1.52)% 145%
2002 (3) (1.56) 2.00 (1.60) 171
2001 (2) (3) (0.99) 1.97 (1.03) 204
2000 (3) (9) (0.71) 2.09 (0.82) 91
1999 (3) (10) (1.27) 2.06 (1.37) 72
1998 (10) (1.15) 2.05 (1.25) 70
Class C
2003 (3) (1.47)% 2.00% (1.51)% 145%
2002 (3) (1.61) 2.02 (1.67) 171
2001 (3) (6) -- -- -- 204
Class S
2003 (3) (0.75)% 1.25% (0.79)% 145%
2002 (3) (0.80) 1.25 (0.84) 171
2001 (2) (3) (0.05) 1.14 (0.12) 204
2000 (3) (9) (0.01) 1.39 (0.12) 91
1999 (3) (10) (0.59) 1.36 (0.69) 72
1998 (10) (0.45) 1.35 (0.55) 70
Class Y
2003 (3) (0.48)% 1.00% (0.52)% 145%
2002 (3) (0.55) 1.00 (0.59) 171
2001 (2) (3) 0.01 0.96 (0.02) 204
2000 (3) (9) 0.29 1.39 (0.12) 91
1999 (3) (10) (0.26) 1.36 (0.66) 72
1998 (10) (0.16) 1.35 (0.56) 70
</Table>
(6) Class of shares have been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(7) Class of shares have been offered since December 11, 2000. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(8) The financial highlights for the Small Cap Select Fund as set forth herein
include the historical financial highlights of the Firstar Small Cap Core
Equity Fund. The assets of the Firstar Fund were acquired by the First
American Small Cap Select Fund on September 24, 2001. In connection with
such acquisition, (i) Class A shares of the Firstar Fund were exchanged for
Class A shares of the First American Fund, (ii) Firstar Class B shares were
exchanged for Class B shares of the First American Fund, (iii) Firstar
Class Y shares were exchanged for Class S shares of the First American
Fund, and (iv) Firstar Institutional Class shares were exchanged for Class
Y shares of the First American Fund.
(9) For the period December 1, 1999 to October 31, 2000. Effective in 2000, the
Fund's fiscal year end was changed from November 30 to October 31. All
ratios for the period have been annualized, except total return and
portfolio turnover.
(10) For the fiscal year ended November 30.
(11) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
67
<Page>
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET GAINS FROM NET DISTRIBUTIONS FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET RETURN OF
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME REALIZED GAINS CAPITAL
- -----------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND
Class A
2003 (1) $ 11.26 $ -- $ 3.02 $ -- $ -- $ --
2002 (1) 13.40 (0.02) (0.13) -- (1.99) --
2001 (1) 17.09 0.02 (0.97) (0.05) (2.69) --
2000 13.94 (0.01) 3.23 -- (0.07) --
1999 13.58 0.01 1.47 (0.01) (1.11) --
Class B
2003 (1) $ 10.80 $ (0.08) $ 2.88 $ -- $ -- $ --
2002 (1) 13.01 (0.11) (0.11) -- (1.99) --
2001 (1) 16.76 (0.09) (0.97) -- (2.69) --
2000 13.77 (0.09) 3.15 -- (0.07) --
1999 13.53 0.02 1.33 -- (1.11) --
Class C
2003 (1) $ 10.91 $ (0.09) $ 2.92 $ -- $ -- $ --
2002 (1) 13.13 (0.11) (0.12) -- (1.99) --
2001 (1) 16.88 (0.10) (0.95) (0.01) (2.69) --
2000 13.87 (0.06) 3.14 -- (0.07) --
1999 (2) 13.48 0.01 0.38 -- -- --
Class S (1)
2003 $ 11.26 $ 0.01 $ 3.01 $ (0.01) $ -- $ --
2002 13.40 (0.01) (0.14) -- (1.99) --
2001 (3) 12.84 -- 0.56 -- -- --
Class Y
2003 (1) $ 11.38 $ 0.03 $ 3.05 $ (0.02) $ -- $ --
2002 (1) 13.48 0.02 (0.12) (0.01) (1.99) --
2001 (1) 17.19 0.06 (1.00) (0.08) (2.69) --
2000 13.98 0.02 3.26 -- (0.07) --
1999 13.60 0.01 1.50 (0.02) (1.11) --
</Table>
(1) Per share data calculated using average shares outstanding method.
(2) Class of shares has been offered since February 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(3) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(4) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
68
<Page>
<Table>
<Caption>
NET ASSET RATIO OF
VALUE NET ASSETS EXPENSES TO
END OF TOTAL END OF AVERAGE
PERIOD RETURN (4) PERIOD (000) NET ASSETS
- -------------------------------------------------------------------------------------
SMALL CAP VALUE FUND
Class A
2003 (1) $ 14.28 26.86% $ 32,416 1.23%
2002 (1) 11.26 (2.19) 27,205 1.23
2001 (1) 13.40 (6.36) 34,292 1.15
2000 17.09 23.19 35,858 1.14
1999 13.94 11.12 11,567 1.14
Class B
2003 (1) $ 13.60 25.93% $ 12,560 1.98%
2002 (1) 10.80 (2.91) 12,008 1.98
2001 (1) 13.01 (7.24) 12,392 1.90
2000 16.76 22.31 13,646 1.88
1999 13.77 10.16 1,005 1.89
Class C
2003 (1) $ 13.74 25.94% $ 4,354 1.98%
2002 (1) 10.91 (2.96) 4,873 1.98
2001 (1) 13.13 (7.08) 4,547 1.90
2000 16.88 22.29 1,099 1.88
1999 (2) 13.87 2.89 116 1.89
Class S (1)
2003 $ 14.27 26.79% $ 1,351 1.23%
2002 11.26 (2.19) 424 1.24
2001 (3) 13.40 4.36 -- --
Class Y
2003 (1) $ 14.44 27.10% $ 428,846 0.98%
2002 (1) 11.38 (1.83) 368,092 0.98
2001 (1) 13.48 (6.25) 434,097 0.90
2000 17.19 23.56 431,906 0.89
1999 13.98 11.36 319,752 0.89
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO RATIO OF
INVESTMENT AVERAGE INCOME (LOSS)
INCOME (LOSS) NET ASSETS TO AVERAGE NET PORTFOLIO
TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------------
SMALL CAP VALUE FUND
Class A
2003 (1) 0.02% 1.25% 0.00% 49%
2002 (1) (0.12) 1.26 (0.15) 37
2001 (1) 0.11 1.15 0.11 53
2000 (0.13) 1.16 (0.15) 73
1999 (0.17) 1.14 (0.17) 44
Class B
2003 (1) (0.73)% 2.00% (0.75)% 49%
2002 (1) (0.87) (2.01) (0.90) 37
2001 (1) (0.64) 1.90 (0.64) 53
2000 (0.89) 1.90 (0.91) 73
1999 (0.93) 1.89 (0.93) 44
Class C
2003 (1) (0.74)% 2.00% (0.76)% 49%
2002 (1) (0.87) 2.01 (0.90) 37
2001 (1) (0.65) 1.90 (0.65) 53
2000 (0.84) 1.91 (0.87) 73
1999 (2) (1.04) 1.89 (1.04) 44
Class S (1)
2003 0.04% 1.25% 0.02% 49%
2002 (0.11) 1.27 (0.14) 37
2001 (3) -- -- -- 53
Class Y
2003 (1) 0.27% 1.00% 0.25% 49%
2002 (1) 0.13 1.01 0.10 37
2001 (1) 0.37 0.90 0.37 53
2000 0.11 0.91 0.09 73
1999 0.08 0.89 0.08 44
</Table>
69
<Page>
SCHEDULE OF INVESTMENTS September 30, 2003
MID CAP GROWTH OPPORTUNITIES
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 98.7%
CONSUMER DISCRETIONARY - 23.8%
Abercrombie & Fitch* 750,220 $ 20,789
Advanced Auto Parts* 98,470 6,982
Autozone* 120,160 10,758
Belo, Cl A 446,630 10,831
Best Buy* 439,740 20,896
Brinker International* 612,920 20,447
Chico's FAS* 21,900 671
Citadel Broadcasting* 169,250 3,344
Claire's Stores 202,610 6,779
Cox Radio* 297,850 6,514
Dollar Tree Stores* 568,810 19,055
Entercom Communications* 166,660 7,470
Fairmont Hotels & Resorts 425,750 10,963
Hearst-Argyle Television* 299,010 7,236
Hilton Hotels 453,310 7,353
Journal Communications* 126,310 2,090
Knight-Ridder 231,660 15,452
Lin TV, Cl A* 650,950 13,840
Marvel Enterprises* 239,830 5,336
Mattel 709,360 13,449
MGM MIRAGE* 188,570 6,892
Michaels Stores 253,480 10,332
Radio One* 480,660 6,902
Reebok International 532,800 17,811
Ross Stores 180,950 8,389
Ruby Tuesday 280,820 6,771
Station Casinos 468,270 14,329
Washington Post, Cl B 4,427 2,944
Westwood One* 792,535 23,927
Wynn Resorts* 72,362 1,316
Yum! Brands* 302,030 8,946
-------------
318,814
-------------
CONSUMER STAPLES - 2.2%
Bunge Limited 465,100 12,790
Clorox 156,480 7,178
Dial 412,965 8,895
-------------
28,863
-------------
ENERGY - 7.7%
Apache 195,577 13,561
BJ Services* 246,550 8,425
FMC Technologies* 429,330 9,196
Grant Prideco* 967,792 9,862
Nabors Industries* 174,915 6,517
Patterson-UTI Energy* 317,580 8,597
Pioneer Natural Resources* 320,560 8,161
Smith International* 165,080 5,940
Valero Energy 177,200 6,781
Weatherford International* 229,535 8,672
Western Gas Resources 475,815 18,081
-------------
103,793
-------------
FINANCIALS - 6.8%
Charter One Financial 310,660 9,506
Commerce Bancorp 61,780 2,960
Dime Bancorp* 226,300 36
Edwards A.G. 151,770 5,829
Everest Re Group 160,885 12,092
Investors Financial Services 911,935 $ 28,635
Istar Financial 92,630 3,608
MGIC Investment 203,820 10,613
Radian Group 285,005 12,654
TCF Financial 120,350 5,771
-------------
91,704
-------------
HEALTH CARE - 18.9%
AdvancePCS* 89,770 4,091
Aetna 120,130 7,332
Apogent Technologies* 317,070 6,614
Barr Laboratories* 149,835 10,220
Biovail* 333,110 12,375
Caremark Rx* 966,510 21,843
Chiron* 217,010 11,217
Community Health Systems* 350,840 7,613
Covance* 535,790 11,991
Coventry Health Care* 202,920 10,702
Express Scripts* 117,780 7,202
Gilead Sciences* 246,320 13,777
Health Management Associates, Cl A 181,910 3,967
Henry Schein* 61,750 3,501
IDEC Pharmaceuticals* 394,820 13,088
Medicis, Cl A 145,860 8,547
MedImmune* 374,890 12,375
Mylan Laboratories 239,605 9,261
Omnicare 417,635 15,060
Teva Pharmaceutical, ADR 156,710 8,956
Triad Hospitals* 558,095 16,899
Universal Health Services* 237,935 11,766
Varian Medical Systems* 155,480 8,937
Zimmer Holdings* 281,280 15,499
-------------
252,833
-------------
INDUSTRIALS - 6.7%
ARAMARK, Cl B* 508,850 12,737
Career Education* 145,842 6,607
Delta Air Lines 236,240 3,142
Dun & Bradstreet* 160,370 6,662
Fastenal 382,045 14,441
L-3 Communications Holdings* 134,530 5,818
Northwest Airlines* 383,700 3,722
Republic Services 1,266,355 28,670
Ryanair Holdings* 207,450 8,402
-------------
90,201
-------------
INFORMATION TECHNOLOGY - 29.7%
Accenture* 1,394,300 31,149
Adobe Systems 247,310 9,709
ADTRAN* 104,060 6,366
Advanced Fiber Communications* 297,330 6,235
Affiliated Computer Services, Cl A* 402,660 19,605
AMIS Holdings* 339,170 6,261
Analog Devices* 222,030 8,442
ASML* 954,480 12,532
BMC Software* 1,073,430 14,953
Broadcom, Cl A* 252,230 6,714
CDW 583,190 33,673
Ciena* 508,020 3,002
Cognos* 237,420 7,365
Comverse Technology* 431,150 6,450
</Table>
The accompanying notes are an integral part of the financial statements.
70
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Cypress Semiconductor* 571,240 $ 10,100
Fair Isaac 267,170 15,752
Fairchild Semiconductor International, Cl A* 590,720 9,794
Fiserv* 578,970 20,976
Hyperion Solutions* 247,560 7,147
Integrated Device Technology* 779,880 9,686
Intersil, Cl A 389,940 9,281
Intuit* 193,360 9,328
Lam Research* 632,810 14,017
Lexmark International Group, Cl A* 87,210 5,495
Micron Technology* 1,098,200 14,738
National Semiconductor* 616,640 19,911
Novellus Systems* 186,060 6,280
Research in Motion* 159,580 6,096
Siebel Systems* 406,760 3,954
Synopsys* 295,080 9,080
Take-Two Interactive Software* 656,880 22,446
UTStarcom* 249,390 7,933
Vishay Intertechnology* 1,359,860 23,825
-------------
398,295
-------------
MATERIALS - 2.4%
Arch Coal 618,810 13,744
Pactiv* 924,880 18,757
-------------
32,501
-------------
UTILITIES - 0.5%
Equitable Resources 87,810 3,609
Questar 81,373 2,507
-------------
6,116
-------------
TOTAL COMMON STOCKS
(Cost $1,181,439) 1,323,120
-------------
SHORT TERM INVESTMENTS - 0.2%
RELATED PARTY MONEY MARKET FUND - 0.2%
First American Prime Obligations Fund, Cl Z (a) 2,905,696 2,906
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $2,906) 2,906
-------------
INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 51.5%
COMMERCIAL PAPER - 5.4%
Bluegrass
1.190%, 05/18/04 $ 2,672 2,672
CS First Boston
1.415%, 10/01/03 10,687 10,687
Danske Bank
1.508%, 12/22/03 10,687 10,687
Independent IV
1.216%, 04/15/04 6,947 6,947
K2 USA
1.020%, 12/01/03 5,334 5,334
Leafs
1.339%, 04/20/04 7,374 7,374
Mitten Mortgage
1.130%, 10/08/03 7,480 7,480
Mortgage Interest Network
1.100%, 10/15/03 2,671 2,671
1.130%, 12/02/03 5,334 5,334
Orchard Park
1.245%, 04/06/04 1,069 1,069
1.220%, 07/06/04 11,857 11,857
-------------
TOTAL COMMERCIAL PAPER 72,112
-------------
CORPORATE OBLIGATIONS - 11.6%
Allstate Life Global
1.092%, 08/16/04 $ 10,687 $ 10,687
Bank of Scotland
1.100%, 03/05/04 5,344 5,344
Castle Hill III
1.176%, 09/16/04 3,206 3,206
Deutsche Bank
1.430%, 12/31/03 4,275 4,275
1.340%, 03/22/04 5,344 5,344
General Electric Capital Corporation
1.150%, 07/09/07 5,345 5,345
Halogen Fund
1.150%, 10/03/03 22,228 22,228
Lloyd's Bank
1.100%, 03/05/04 10,687 10,687
Metlife Global Funding
1.130%, 09/15/04 6,411 6,411
1.147%, 04/28/08 4,489 4,489
Monet Trust
1.210%, 12/28/03 10,687 10,687
Residential Mortgage Securities
1.140%, 09/11/04 8,016 8,016
Sigma Finance
1.268%, 08/09/04 10,686 10,686
SMM Trust 2002-M
1.140%, 09/23/04 17,901 17,901
Svenska Handlsbankn
1.100%, 03/03/04 10,687 10,687
1.100%, 03/15/04 1,924 1,924
Wells Fargo Bank
1.050%, 10/17/03 10,687 10,687
1.060%, 10/31/03 7,481 7,481
-------------
TOTAL CORPORATE OBLIGATIONS 156,085
-------------
MONEY MARKET FUNDS - 0.1%
AIM Short Term Liquid Asset Portfolio 427,497 428
Merrill Lynch Premier Institutional Fund 1,400,427 1,400
-------------
TOTAL MONEY MARKET FUNDS 1,828
-------------
OTHER SHORT-TERM INVESTMENTS - 4.4%
Commonwealth Life
1.430%, 10/01/03 5,396 5,396
General Electric Capital Assurance
1.370%, 12/19/03 2,137 2,137
Liquid Funding
1.130%, 8/23/04 5,342 5,342
1.130%, 9/14/04 5,343 5,343
Premium Asset Trust 02-7
0.110%, 06/01/04 15,924 15,924
Security Life Denver
1.381%, 01/13/04 13,894 13,894
1.490%, 03/15/04 10,687 10,687
-------------
TOTAL OTHER SHORT-TERM INVESTMENTS 58,723
-------------
REPURCHASE AGREEMENTS - 29.9%
Bear Stearns
1.240%, dated 9/30/03, matures 10/1/03,
repurchase price $21,385,897 (collateralized
by Various securities:
Total Market Value $21,812,157) 21,375 21,375
</Table>
71
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $26,719,413 (collateralized
by U.S. Government Securities:
Total Market Value $27,253,190) $ 26,719 $ 26,719
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $3,313,207 (collateralized
by U.S. Government Securities:
Total Market Value $3,379,407) 3,313 3,313
CS First Boston
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $8,550,238 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $8,977,711) 8,550 8,550
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $5,343,874 (collateralized
by U.S. Government Securities:
Total Market Value $5,450,588) 5,344 5,344
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $21,375,495 (collateralized
by U.S. Government Securities :
Total Market Value $21,802,351) 21,375 21,375
Deutsche Bank
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $42,751,189 (collateralized
by Corporate Securities:
Total Market Value $44,887,193) 42,750 42,750
Goldman Sachs
1.268%, dated 9/30/03, matures 10/1/03,
repurchase price $16,031,705 (collateralized
by Corporate Securities:
Total Market Value $16,829,225) 16,031 16,031
Goldman Sachs
1.330%, dated 9/30/03, matures 10/1/03,
repurchase price $10,687,822 (collateralized
by Various securities:
Total Market Value $11,017,989) 10,687 10,687
Goldman Sachs
1.380%, dated 9/30/03, matures 10/1/03,
repurchase price $5,343,918 (collateralized
by Various securities:
Total Market Value $5,452,861) 5,344 5,344
Lehman Brothers
1.120%, dated 9/30/03, matures 10/1/03,
repurchase price $29,391,338 (collateralized
by U.S. Government Securities:
Total Market Value $29,978,317) 29,390 29,390
Lehman Brothers
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $10,687,762 (collateralized
by U.S. Government Securities:
Total Market Value $10,901,564) 10,687 10,687
Lehman Brothers
1.388%, dated 9/30/03, matures 10/1/03,
repurchase price $21,375,678 (collateralized
by Various securities:
Total Market Value $21,659,852) 21,375 21,375
Lehman Brothers
1.150%, dated 9/30/03, matures 10/1/03,
repurchase price $6,092,028 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $6,445,234) 6,092 6,092
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $32,063,269 (collateralized
by U.S. Government Securities:
Total Market Value $32,703,967) $ 32,062 $ 32,062
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $964,912 (collateralized
by U.S. Government Securities:
Total Market Value $984,554) 965 965
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $2,671,939 (collateralized
by U.S. Government Securities:
Total Market Value $2,725,448) 2,672 2,672
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $6,412,654 (collateralized
by U.S. Government Securities:
Total Market Value $6,541,025) 6,413 6,413
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $21,375,513 (collateralized
by U.S. Government Securities:
Total Market Value $21,802,650) 21,375 21,375
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $26,719,391 (collateralized
by U.S. Government Securities:
Total Market Value $27,253,203) 26,719 26,719
Merrill Lynch
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $21,375,525 (collateralized
by Asset-Backed & U.S. Government Securities:
Total Market Value $21,803,082) 21,375 21,375
Merrill Lynch
1.308%, dated 9/30/03, matures 10/1/03,
repurchase price $21,375,630 (collateralized
by Corporate Securities:
Total Market Value $22,443,640) 21,375 21,375
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $5,664,534 (collateralized
by Asset-Backed Securities:
Total Market Value $5,947,553) 5,664 5,664
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $33,239,059 (collateralized
by Collateralized Mortgage Obligations &
Asset-Backed Securities:
Total Market Value $34,907,450) 33,238 33,238
-------------
TOTAL REPURCHASE AGREEMENTS 400,890
-------------
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING
(Cost $689,638) 689,638
-------------
TOTAL INVESTMENTS - 150.4%
(Cost $1,873,983) 2,015,664
-------------
OTHER ASSETS AND LIABILITIES, NET - (50.4)% (675,520)
-------------
TOTAL NET ASSETS - 100.0% $ 1,340,144
-------------
</Table>
* Non-income producing security
(a) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements.
ADR - American Depositary Receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
72
<Page>
MID CAP VALUE FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 98.6%
CONSUMER DISCRETIONARY - 15.9%
Black & Decker 66,060 $ 2,679
D.R. Horton 70,110 2,293
Delphi Automotive Systems 440,060 3,983
Federated Department Stores 145,920 6,114
Fortune Brands 61,050 3,465
Gemstar-TV Guide International* 283,790 1,342
Hearst-Argyle Television* 75,900 1,837
Hilton Hotels 257,860 4,182
J.C. Penney 68,740 1,469
Jones Apparel Group 120,830 3,616
Knight-Ridder 36,240 2,417
Lear* 52,610 2,769
Lennar 51,750 4,026
Limited 203,540 3,069
Liz Claiborne 80,970 2,757
Mandalay Resort Group 82,430 3,265
Office Depot* 150,950 2,121
Sears Roebuck and Company 79,400 3,472
Yum! Brands* 95,580 2,831
-------------
57,707
-------------
CONSUMER STAPLES - 4.4%
Clorox 80,080 3,673
Dean Foods* 97,140 3,014
Safeway* 193,390 4,436
Sensient Technologies 62,330 1,309
Smithfield Foods* 81,680 1,568
UST 53,570 1,885
-------------
15,885
-------------
ENERGY - 4.7%
Apache 66,592 4,617
Enbridge (a) 22,449 --
ENSCO International 117,290 3,146
Halliburton 75,720 1,836
Murphy Oil 49,390 2,902
Rowan* 75,900 1,866
Valero Energy 67,880 2,598
-------------
16,965
-------------
FINANCIALS - 29.9%
Ambac Financial Group 56,660 3,626
AmSouth Bancorp 146,360 3,106
Bear Stearns 37,580 2,811
Boston Properties (REIT) 100,710 4,378
Charter One Financial 153,845 4,708
CIT Group 127,130 3,656
City National 40,060 2,041
Compass Bancshares 75,510 2,611
Countrywide Credit Industries 35,920 2,812
Developers Diversified Realty (REIT) 94,190 2,813
E*TRADE Group* 267,690 2,479
Edwards A.G. 75,930 2,916
Essex Property Trust (REIT) 49,260 3,089
Everest Re Group 45,870 3,448
First Tennessee National 114,910 4,879
Franklin Resources 45,160 1,997
General Growth Properties (REIT) 66,200 4,747
Golden West Financial 38,490 3,445
Hibernia, Cl A 96,600 $ 1,957
Istar Financial 62,480 2,434
John Hancock Financial Services 73,920 2,498
Lincoln National 110,650 3,915
Marshall & Ilsley 114,520 3,610
Old Republic International 59,230 1,960
Prologis 139,410 4,217
Protective Life 84,350 2,518
Radian Group 85,960 3,817
SAFECO 87,020 3,068
Simon Property Group 97,930 4,268
SouthTrust 97,880 2,877
Torchmark 48,540 1,973
UnumProvident 140,050 2,069
W.R. Berkley 80,805 2,768
Zions Bancorporation 87,220 4,871
-------------
108,382
-------------
HEALTH CARE - 4.1%
Aetna 51,850 3,164
Bard C.R. 44,050 3,128
Cigna 32,300 1,442
Fisher Scientific International* 32,170 1,277
Health Management Associates, Cl A 137,590 3,001
McKesson HBOC 93,220 3,103
-------------
15,115
-------------
INDUSTRIALS - 8.6%
American Standard* 23,900 2,014
ARAMARK, Cl B* 107,490 2,690
CSX 146,320 4,280
Delta Air Lines 126,580 1,683
Dover 102,630 3,630
Eaton 60,270 5,341
Rockwell Collins 97,400 2,459
SPX* 74,390 3,368
Swift Transportation* 95,360 2,164
York International 108,370 3,749
-------------
31,378
-------------
INFORMATION TECHNOLOGY - 11.7%
Agere Systems* 484,480 1,487
AMIS Holdings* 87,660 1,618
Apple Computer* 98,470 2,031
ASML* 99,720 1,309
Avaya* 185,300 2,020
Avnet* 164,040 2,710
Cadence Design Systems* 202,080 2,708
Computer Associates International 118,560 3,096
Computer Sciences* 91,950 3,455
Corning* 273,210 2,574
Diebold 60,510 3,065
Flextronics International* 173,940 2,466
Harris 80,450 2,879
International Rectifier* 83,380 3,122
Micron Technology* 202,790 2,721
SunGard Data Systems* 42,440 1,117
Vishay Intertechnology* 137,070 2,401
Xerox* 170,940 1,754
-------------
42,533
-------------
</Table>
73
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
MATERIALS - 7.1%
Abitibi-Consolidated 234,550 $ 1,642
Agrium 218,560 2,745
Air Products and Chemicals 73,010 3,293
Cabot 62,700 1,788
Georgia-Pacific 149,250 3,618
Lyondell Chemical 89,050 1,138
Nucor 53,990 2,477
Phelps Dodge* 66,720 3,122
Rohm & Haas 95,460 3,193
Temple-Inland 53,130 2,579
-------------
25,595
-------------
TELECOMMUNICATION SERVICES - 1.1%
CenturyTel 118,970 4,032
-------------
UTILITIES - 11.1%
AGL Resources 104,010 2,930
Constellation Energy 133,440 4,774
El Paso 207,880 1,518
Equitable Resources 53,210 2,187
FPL Group 42,440 2,682
KeySpan 66,500 2,333
Kinder Morgan Fractional Shares* (a) 6,931 --
Kinder Morgan Management* 67,152 2,563
PG&E* 220,960 5,281
PPL 111,980 4,586
Public Service Enterprises 62,970 2,645
TXU 223,100 5,256
Wisconsin Energy 115,670 3,536
-------------
40,291
-------------
TOTAL COMMON STOCKS
(Cost $315,087) 357,883
-------------
SHORT TERM INVESTMENTS - 0.8%
RELATED PARTY MONEY MARKET FUND - 0.8%
First American Prime Obligations Fund, Cl Z (b) 2,821,859 2,822
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $2,822) 2,822
-------------
INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 46.0%
COMMERCIAL PAPER - 4.8%
Bluegrass
1.190%, 05/18/04 $ 647 647
CS First Boston
1.415%, 10/01/03 2,587 2,587
Danske Bank
1.508%, 12/22/03 2,588 2,588
Independent IV
1.216%, 04/15/04 1,682 1,682
K2 USA
1.020%, 12/01/03 1,291 1,291
Leafs
1.339%, 04/20/04 1,785 1,785
Mitten Mortgage
1.130%, 10/08/03 1,811 1,811
Mortgage Interest Network
1.100%, 10/15/03 647 647
1.130%, 12/02/03 1,291 1,291
Orchard Park
1.245%, 04/06/04 $ 259 $ 259
1.220%, 07/06/04 2,871 2,871
-------------
TOTAL COMMERCIAL PAPER 17,459
-------------
CORPORATE OBLIGATIONS - 10.4%
Allstate Life Global
1.092%, 08/16/04 2,588 2,588
Bank of Scotland
1.100%, 03/05/04 1,294 1,294
Castle Hill III
1.176%, 09/16/04 776 776
Deutsche Bank
1.430%, 12/31/03 1,035 1,035
1.340%, 03/22/04 1,294 1,294
General Electric Capital Corporation
1.150%, 07/09/07 1,294 1,294
Halogen Fund
1.150%, 10/03/03 5,382 5,382
Lloyd's Bank
1.100%, 03/05/04 2,588 2,588
Metlife Global Funding
1.130%, 09/15/04 1,552 1,552
1.147%, 04/28/08 1,087 1,087
Monet Trust
1.210%, 12/28/03 2,587 2,587
Residential Mortgage Securities
1.140%, 09/11/04 1,941 1,941
Sigma Finance
1.268%, 08/09/04 2,587 2,587
SMM Trust 2002-M
1.140%, 09/23/04 4,334 4,334
Svenska Handlsbankn
1.100%, 03/03/04 2,587 2,587
1.100%, 03/15/04 466 466
Wells Fargo Bank
1.050%, 10/17/03 2,588 2,588
1.060%, 10/31/03 1,811 1,811
-------------
TOTAL CORPORATE OBLIGATIONS 37,791
-------------
MONEY MARKET FUNDS - 0.1%
AIM Short Term Liquid Asset Portfolio 103,502 103
Merrill Lynch Premier Institutional Fund 339,060 339
-------------
TOTAL MONEY MARKET FUNDS 442
-------------
OTHER SHORT-TERM INVESTMENTS - 3.9%
Commonwealth Life
1.430%, 10/01/03 1,306 1,306
General Electric Capital Assurance
1.370%, 12/19/03 518 518
Liquid Funding
1.130%, 8/23/04 1,293 1,293
1.130%, 9/14/04 1,294 1,294
Premium Asset Trust 02-7
0.110%, 06/01/04 3,855 3,855
Security Life Denver
1.381%, 01/13/04 3,364 3,364
1.490%, 03/15/04 2,588 2,588
-------------
TOTAL OTHER SHORT-TERM INVESTMENTS 14,218
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
74
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 26.8%
Bear Stearns
1.240%, dated 9/30/03, matures 10/1/03,
repurchase price $5,177,790 (collateralized
by Various securities:
Total Market Value $5,280,992) $ 5,175 $ 5,175
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $6,469,100 (collateralized
by U.S. Government Securities:
Total Market Value $6,598,334) 6,469 6,469
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $802,168 (collateralized
by U.S. Government Securities:
Total Market Value $818,196) 802 802
CS First Boston
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $2,070,118 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $2,173,615) 2,070 2,070
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $1,293,818 (collateralized
by U.S. Government Securities:
Total Market Value $1,319,655) 1,294 1,294
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $5,175,271 (collateralized
by U.S. Government Securities :
Total Market Value $5,278,618) 5,175 5,175
Deutsche Bank
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $10,350,591 (collateralized
by Corporate Securities:
Total Market Value $10,867,744) 10,350 10,350
Goldman Sachs
1.268%, dated 9/30/03, matures 10/1/03,
repurchase price $3,881,474 (collateralized
by Corporate Securities:
Total Market Value $4,074,563) 3,881 3,881
Goldman Sachs
1.330%, dated 9/30/03, matures 10/1/03,
repurchase price $2,587,654 (collateralized
by Various securities:
Total Market Value $2,667,591) 2,588 2,588
Goldman Sachs
1.380%, dated 9/30/03, matures 10/1/03,
repurchase price $1,293,829 (collateralized
by Various securities:
Total Market Value $1,320,205) 1,294 1,294
Lehman Brothers
1.120%, dated 9/30/03, matures 10/1/03,
repurchase price $7,116,006 (collateralized
by U.S. Government Securities:
Total Market Value $7,258,121) 7,116 7,116
Lehman Brothers
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $2,587,639 (collateralized
by U.S. Government Securities:
Total Market Value $2,639,403) 2,587 2,587
Lehman Brothers
1.388%, dated 9/30/03, matures 10/1/03,
repurchase price $5,175,315 (collateralized
by Various securities:
Total Market Value $5,244,118) 5,175 5,175
Lehman Brothers
1.150%, dated 9/30/03, matures 10/1/03,
repurchase price $1,474,955 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $1,560,471) $ 1,475 $ 1,475
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $7,762,913 (collateralized
by U.S. Government Securities:
Total Market Value $7,918,034) 7,763 7,763
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $233,617 (collateralized
by U.S. Government Securities:
Total Market Value $238,373) 234 234
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $646,909 (collateralized
by U.S. Government Securities:
Total Market Value $659,865) 647 647
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $1,552,583 (collateralized
by U.S. Government Securities:
Total Market Value $1,583,663) 1,552 1,552
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $5,175,276 (collateralized
by U.S. Government Securities:
Total Market Value $5,278,691) 5,175 5,175
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $6,469,094 (collateralized
by U.S. Government Securities:
Total Market Value $6,598,337) 6,469 6,469
Merrill Lynch
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $5,175,278 (collateralized
by Asset-Backed & U.S. Government Securities:
Total Market Value $5,278,795) 5,175 5,175
Merrill Lynch
1.308%, dated 9/30/03, matures 10/1/03,
repurchase price $5,175,304 (collateralized
by Corporate Securities:
Total Market Value $5,433,882) 5,175 5,175
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $1,371,454 (collateralized
by Asset-Backed Securities:
Total Market Value $1,439,976) 1,371 1,371
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $8,047,586 (collateralized
by Collateralized Mortgage Obligations &
Asset-Backed Securities:
Total Market Value $8,451,525) 8,047 8,047
-------------
TOTAL REPURCHASE AGREEMENTS 97,059
-------------
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING
(Cost $166,969) 166,969
-------------
</Table>
75
<Page>
<Table>
<Caption>
DESCRIPTION VALUE (000)
- ----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 145.4%
(Cost $484,878) $ 527,674
-------------
OTHER ASSETS AND LIABILITIES, NET - (45.4)% (164,797)
-------------
TOTAL NET ASSETS - 100.0% $ 362,877
-------------
</Table>
* Non-income producing security
(a) Security is fair valued. As of September 30, 2003, the market value of these
investments is $0 or 0.0% of total net assets. See note 2 in Notes to
Financial Statements.
(b) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements.
Cl - Class
REIT - Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
76
<Page>
STATEMENTS OF ASSETS AND LIABILITIES September 30, 2003, in thousands, except
per share data
<Table>
<Caption>
MID CAP GROWTH MID CAP
OPPORTUNITIES FUND VALUE FUND
- ----------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated securities, at value*+ $ 2,012,758 $ 524,852
Investments in affiliated securities, at value** 2,906 2,822
Dividends and interest receivable 256 457
Capital shares sold 903 258
Receivable for investment securities sold 35,273 4,884
Prepaid expenses and other assets 37 16
- ----------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 2,052,133 533,289
================================================================================================================
LIABILITIES:
Capital shares redeemed 1,524 1,127
Payable upon return of securities loaned 689,638 166,969
Payable for investment securities purchased 19,671 2,020
Payable for advisory, co-administration, and custodian fees 1,100 283
Distribution and shareholder servicing fees 54 13
Accrued expenses and other liabilities 2 --
- ----------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 711,989 170,412
================================================================================================================
NET ASSETS $ 1,340,144 $ 362,877
================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital 1,251,596 426,236
Accumulated net investment income (loss) (3) 27
Accumulated net realized gain (loss) (53,130) (106,182)
Net unrealized appreciation of investments 141,681 42,796
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,340,144 $ 362,877
================================================================================================================
* Investments in unaffiliated securities, at cost $ 1,871,077 $ 482,056
** Investments in affiliated securities, at cost $ 2,906 $ 2,822
+ Including securities loaned, at value $ 657,377 $ 159,379
CLASS A:
Net assets $ 154,499 $ 16,598
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 4,587 1,018
Net asset value and redemption price per share $ 33.68 $ 16.30
Maximum offering price per share (1) $ 35.64 $ 17.25
CLASS B:
Net assets $ 9,055 $ 10,154
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 280 643
Net asset value, offering price and redemption price per share (2) $ 32.30 $ 15.81
CLASS C:
Net assets $ 12,649 $ 2,916
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 381 181
Net asset value and redemption price per share (2) $ 33.24 $ 16.12
Maximum offering price per share (3) $ 33.58 $ 16.28
CLASS S:
Net assets $ 10,284 $ 966
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 306 59
Net asset value, offering price, and redemption price per share $ 33.66 $ 16.31
CLASS Y:
Net assets $ 1,153,657 $ 332,243
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 33,167 20,311
Net asset value, offering price, and redemption price per share $ 34.78 $ 16.36
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.50%
(2) Class B and C have a contingent deferred sales charge. For a description of
this sales charge, see notes 1 and 3 in Notes to Financial Statements.
(3) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%
The accompanying notes are an integral part of the financial statements.
77
<Page>
STATEMENTS OF OPERATIONS For the fiscal year ended September 30, 2003, in
thousands
<Table>
<Caption>
MID CAP GROWTH MID CAP
OPPORTUNITIES FUND VALUE FUND
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest from affiliated securities $ 511 $ 101
Dividends 6,376 6,107
Less: Foreign taxes withheld (14) (6)
Securities lending 304 85
Other income 3 1,141
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 7,180 7,428
======================================================================================================================
EXPENSES:
Investment advisory fees 7,701 2,154
Co-administration fees and expenses (including per account transfer agency fees) 3,007 846
Custodian fees 110 31
Directors' fees 19 5
Registration fees 18 26
Professional fees 40 10
Printing 42 12
Other 18 9
Distribution and shareholder servicing fees - Class A 289 36
Distribution and shareholder servicing fees - Class B 66 100
Distribution and shareholder servicing fees - Class C 97 30
Shareholder servicing fees - Class S 23 2
- ----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 11,430 3,261
======================================================================================================================
Less: Fee waivers (504) (169)
- ----------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 10,926 3,092
======================================================================================================================
INVESTMENT INCOME (LOSS) - NET (3,746) 4,336
======================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET:
Net realized gain (loss) on investments 74,155 (4,597)
Net change in unrealized appreciation or depreciation of investments 203,246 67,910
- ----------------------------------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 277,401 63,313
======================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 273,655 $ 67,649
======================================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
78
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
MID CAP GROWTH MID CAP
OPPORTUNITIES FUND VALUE FUND
- ----------------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 10/1/02 10/1/01
TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02
- ----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income (loss) - net $ (3,746) $ (707) $ 4,336 $ 3,508
Net realized gain (loss) on investments 74,155 (33,072) (4,597) 3,174
Net change in unrealized appreciation or depreciation of investments 203,246 (19,320) 67,910 (11,284)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 273,655 (53,099) 67,649 (4,602)
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A -- -- (118) (100)
Class B -- -- (35) (10)
Class C -- -- (10) (2)
Class S -- -- (5) (1)
Class Y -- -- (2,852) (2,700)
Tax return of capital:
Class A -- -- (7)* (36)
Class B -- -- (4)* (29)
Class C -- -- (1)* (9)
Class Y -- -- (129)* (718)
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (3,161) (3,605)
==================================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 15,500 15,490 3,858 5,726
Reinvestment of distributions -- -- 121 132
Payments for redemptions (22,438) (17,177) (3,492) (5,952)
Shares issued in connection with the acquisition of Fund net assets 53,452 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions 46,514 (1,687) 487 (94)
- ----------------------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 1,615 2,886 689 1,753
Reinvestment of distributions -- -- 38 38
Payments for redemptions (1,028) (627) (2,995) (2,335)
Shares issued in connection with the acquisition of Fund net assets 2,462 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions 3,049 2,259 (2,268) (544)
- ----------------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 9,100 1,470 371 832
Reinvestment of distributions -- -- 11 11
Payments for redemptions (3,390) (137) (1,260) (829)
Shares issued in connection with the acquisition of Fund net assets 3,422 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C transactions 9,132 1,333 (878) 14
- ----------------------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 6,911 6,770 992 137
Reinvestment of distributions -- -- 4 --
Payments for redemptions (4,881) (1,699) (321) --
Shares issued in connection with the acquisition of Fund net assets 190 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class S transactions 2,220 5,071 675 137
- ----------------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 300,126 216,825 89,296 61,416
Reinvestment of distributions -- -- 2,012 2,137
Payments for redemptions (262,559) (99,742) (77,783) (88,193)
Shares issued in connection with the acquisition of Fund net assets 159,215 -- -- --
Shares issued in connection with the acquisition of Common Trust
Fund net assets 245,348 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 442,130 117,083 13,525 (24,640)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 503,045 124,059 11,541 (25,127)
- ----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 776,700 70,960 76,029 (33,334)
NET ASSETS AT BEGINNING OF PERIOD 563,444 492,484 286,848 320,182
==================================================================================================================================
NET ASSETS AT END OF PERIOD $ 1,340,144 $ 563,444 $ 362,877 $ 286,848
==================================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) AT END OF PERIOD $ (3) $ (4) $ 27 $ --
==================================================================================================================================
</Table>
(1) See note 4 in Notes to Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
79
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS DISTRIBUTIONS
VALUE NET GAINS FROM NET FROM FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT NET REALIZED RETURN
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME GAINS OF CAPITAL
- -------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH
OPPORTUNITIES (1)
Class A
2003 (2) $ 26.45 $ (0.18) $ 7.41 $ -- $ -- $ --
2002 28.33 (0.11) (1.77) -- -- --
2001 (2) (3) 54.63 (0.06) (8.40) -- (17.84) --
2000 (2) (4) 37.80 (0.18) 17.80 -- (0.79) --
1999 (2) (4) 37.59 (0.08) 0.60 -- (0.31) --
1998 (2) (4) 44.36 (0.24) (2.07) -- (4.46) --
Class B
2003 (2) $ 25.56 $ (0.39) $ 7.13 $ -- $ -- $ --
2002 27.59 (0.18) (1.85) -- -- --
2001 (2) (3) 53.97 (0.29) (8.25) -- (17.84) --
2000 (2) (4) 37.63 (0.53) 17.66 -- (0.79) --
1999 (2) (4) (5) 37.57 (0.23) 0.29 -- -- --
Class C
2003 (2) $ 26.29 $ (0.40) $ 7.35 $ -- $ -- $ --
2002 28.33 (0.10) (1.94) -- -- --
2001 (2) (6) 27.40 -- 0.93 -- -- --
Class S
2003 (2) $ 26.43 $ (0.17) $ 7.40 $ -- $ -- $ --
2002 28.29 (0.07) (1.79) -- -- --
2001 (2) (7) 35.75 (0.06) (7.40) -- -- --
Class Y
2003 (2) $ 27.25 $ (0.09) $ 7.62 $ -- $ -- $ --
2002 29.11 (0.05) (1.81) -- -- --
2001 (2) (3) 55.52 0.02 (8.59) -- (17.84) --
2000 (2) (4) 38.32 (0.05) 18.04 -- (0.79) --
1999 (2) (4) 38.01 0.02 0.60 -- (0.31) --
1998 (2) (4) 44.70 (0.14) (2.09) -- (4.46) --
MID CAP VALUE FUND
Class A
2003 (2) $ 13.29 $ 0.18 $ 2.96 $ (0.12) $ -- $ (0.01)
2002 (2) 13.74 0.13 (0.44) (0.10) -- (0.04)
2001 (2) 14.62 0.10 (0.88) (0.10) -- --
2000 12.95 0.08 1.67 (0.08) -- --
1999 15.04 0.10 1.26 (0.10) (3.35) --
Class B
2003 (2) $ 12.92 $ 0.07 $ 2.87 $ (0.04) $ -- $ (0.01)
2002 (2) 13.37 0.01 (0.41) (0.01) -- (0.04)
2001 (2) 14.28 (0.01) (0.88) (0.02) -- --
2000 12.67 0.02 1.61 (0.02) -- --
1999 14.80 0.04 1.22 (0.04) (3.35) --
Class C
2003 (2) $ 13.17 $ 0.07 $ 2.93 $ (0.04) $ -- $ (0.01)
2002 (2) 13.63 0.01 (0.43) -- -- (0.04)
2001 (2) 14.55 (0.01) (0.89) (0.02) -- --
2000 12.92 0.02 1.63 (0.02) -- --
1999 (8) 13.69 0.06 (0.78) (0.05) -- --
Class S (2)
2003 $ 13.29 $ 0.16 $ 2.99 $ (0.14) $ -- $ (0.01)
2002 13.74 0.13 (0.44) (0.10) -- (0.04)
2001 (6) 13.31 0.01 0.42 -- -- --
Class Y
2003 (2) $ 13.33 $ 0.21 $ 2.98 $ (0.15) $ -- $ (0.01)
2002 (2) 13.77 0.17 (0.44) (0.13) -- (0.04)
2001 (2) 14.68 0.14 (0.92) (0.13) -- --
2000 12.99 0.11 1.69 (0.11) -- --
1999 15.05 0.12 1.30 (0.13) (3.35) --
</Table>
(1) The financial highlights for the Mid Cap Growth Opportunities Fund as set
forth herein include the historical financial highlights of the Firstar Mid
Cap Core Equity Fund. The assets of the Firstar Fund were acquired by the
First American Mid Cap Growth Opportunities Fund on September 24, 2001. In
connection with such acquisition, (i) Class A shares of the Fistar Mid Cap
Core Equity Fund were exchanged for Class A shares of the First American Mid
Cap Growth Opportunities Fund, (ii) Firstar Class B shares were exchanged
for Class B shares of the First American Fund, (iii) Firstar Class Y shares
were exchanged for Class S shares of the First American Fund, and (iv)
Firstar Class Institutional shares were exchanged for Class Y shares of the
First American Fund.
(2) Per share data calculated using average shares outstanding method.
(3) For the period November 1, 2000 to September 30, 2001. Effective in 2001,
the Fund's fiscal year end was changed from October 31 to September 30. All
ratios for the period have been annualized, except total return and
portfolio turnover.
(4) For the fiscal year ended October 31.
The accompanying notes are an integral part of the financial statements.
80
<Page>
<Table>
<Caption>
NET ASSET RATIO OF
VALUE NET ASSETS EXPENSES TO
END OF TOTAL END OF AVERAGE
PERIOD RETURN (9) PERIOD (000) NET ASSETS
- -----------------------------------------------------------------------------------------
MID CAP GROWTH
OPPORTUNITIES (1)
Class A
2003 (2) $ 33.68 27.33% $ 154,499 1.20%
2002 26.45 (6.64) 75,002 1.20
2001 (2) (3) 28.33 (20.00) 82,043 1.20
2000 (2) (4) 54.63 47.23 108,326 1.20
1999 (2) (4) 37.80 1.31 95,758 1.19
1998 (2) (4) 37.59 (5.91) 136,146 1.13
Class B
2003 (2) $ 32.30 26.37% $ 9,055 1.95%
2002 25.56 (7.36) 4,227 1.95
2001 (2) (3) 27.59 (20.60) 2,606 1.94
2000 (2) (4) 53.97 46.13 666 1.95
1999 (2) (4) (5) 37.63 0.16 126 1.95
Class C
2003 (2) $ 33.24 26.43% $ 12,649 1.95%
2002 26.29 (7.20) 1,136 1.95
2001 (2) (6) 28.33 3.39 -- --
Class S
2003 (2) $ 33.66 27.36% $ 10,284 1.20%
2002 26.43 (6.58) 5,869 1.20
2001 (2) (7) 28.29 (20.87) 1,484 1.19
Class Y
2003 (2) $ 34.78 27.63% $ 1,153,657 0.95%
2002 27.25 (6.39) 477,210 0.95
2001 (2) (3) 29.11 (19.84) 406,349 0.95
2000 (2) (4) 55.52 47.56 435,613 0.95
1999 (2) (4) 38.32 1.56 359,947 0.94
1998 (2) (4) 38.01 (5.66) 464,858 0.88
MID CAP VALUE FUND
Class A
2003 (2) $ 16.30 23.71% $ 16,598 1.20%
2002 (2) 13.29 (2.41) 13,083 1.20
2001 (2) 13.74 (5.41) 13,583 1.15
2000 14.62 13.58 13,568 1.15
1999 12.95 8.03 20,148 1.15
Class B
2003 (2) $ 15.81 22.84% $ 10,154 1.95%
2002 (2) 12.92 (3.07) 10,410 1.95
2001 (2) 13.37 (6.21) 11,311 1.90
2000 14.28 12.85 12,495 1.90
1999 12.67 7.38 19,072 1.90
Class C
2003 (2) $ 16.12 22.84% $ 2,916 1.95%
2002 (2) 13.17 (3.09) 3,207 1.95
2001 (2) 13.63 (6.17) 3,312 1.90
2000 14.55 12.81 1,430 1.90
1999 (8) 12.92 (5.25) 164 1.90
Class S (2)
2003 $ 16.31 23.80% $ 966 1.20%
2002 13.29 (2.40) 158 1.20
2001 (6) 13.74 3.23 44 0.85
Class Y
2003 (2) $ 16.36 24.06% $ 332,243 0.95%
2002 (2) 13.33 (2.12) 259,990 0.95
2001 (2) 13.77 (5.37) 291,932 0.90
2000 14.68 13.94 275,128 0.90
1999 12.99 8.47 304,492 0.90
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
INVESTMENT AVERAGE INCOME (LOSS)
INCOME (LOSS) NET ASSETS TO AVERAGE NET PORTFOLIO
TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE
- ----------------------------------------------------------------------------------------------
MID CAP GROWTH
OPPORTUNITIES (1)
Class A
2003 (2) (0.58)% 1.25% (0.63)% 145%
2002 (0.34) 1.26 (0.40) 162
2001 (2) (3) (0.19) 1.22 (0.21) 204
2000 (2) (4) (0.38) 1.22 (0.40) 205
1999 (2) (4) (0.21) 1.21 (0.23) 140
1998 (2) (4) (0.57) 1.20 (0.64) 77
Class B
2003 (2) (1.33)% 2.00% (1.38)% 145%
2002 (1.08) 2.01 (1.14) 162
2001 (2) (3) (0.95) 1.97 (0.98) 204
2000 (2) (4) (1.13) 1.97 (1.15) 205
1999 (2) (4) (5) (0.89) 1.97 (0.91) 140
Class C
2003 (2) (1.33)% 2.00% (1.38)% 145%
2002 (1.07) 2.01 (1.13) 162
2001 (2) (6) -- -- -- 204
Class S
2003 (2) (0.56)% 1.25% (0.61)% 145%
2002 (0.33) 1.26 (0.39) 162
2001 (2) (7) (0.24) 1.23 (0.28) 204
Class Y
2003 (2) (0.30)% 1.00% (0.35)% 145%
2002 (0.08) 1.01 (0.14) 162
2001 (2) (3) 0.06 0.97 0.04 204
2000 (2) (4) (0.13) 0.97 (0.15) 205
1999 (2) (4) 0.04 0.96 0.02 140
1998 (2) (4) (0.32) 0.95 (0.39) 77
MID CAP VALUE FUND
Class A
2003 (2) 1.21% 1.25% 1.16% 102%
2002 (2) 0.83 1.26 0.77 90
2001 (2) 0.67 1.15 0.67 104
2000 0.53 1.19 0.49 141
1999 0.63 1.18 0.60 121
Class B
2003 (2) 0.50% 2.00% 0.45% 102%
2002 (2) 0.08 2.01 0.02 90
2001 (2) (0.08) 1.90 (0.08) 104
2000 (0.22) 1.94 (0.26) 141
1999 (0.13) 1.93 (0.16) 121
Class C
2003 (2) 0.51% 2.00% 0.46% 102%
2002 (2) 0.08 2.01 0.02 90
2001 (2) (0.04) 1.90 (0.04) 104
2000 (0.15) 1.93 (0.18) 141
1999 (8) 0.29 1.93 0.26 121
Class S (2)
2003 1.07% 1.25% 1.02% 102%
2002 0.87 1.26 0.81 90
2001 (6) 5.19 0.85 5.19 104
Class Y
2003 (2) 1.45% 1.00% 1.40% 102%
2002 (2) 1.08 1.01 1.02 90
2001 (2) 0.92 0.90 0.92 104
2000 0.79 0.94 0.75 141
1999 0.89 0.93 0.86 121
</Table>
(5) Class of shares has been offered since March 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(6) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio turnover.
(7) Class of shares has been offered since December 11, 2000. All ratios for the
period have been annualized, except total return and portfolio turnover.
(8) Class of shares has been offered since February 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(9) Total return does not include sales charges. Total return would have been
lower had certain expenses not been waived.
81
<Page>
SCHEDULE OF INVESTMENTS September 30, 2003
LARGE CAP GROWTH OPPORTUNITIES
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 99.6%
CONSUMER DISCRETIONARY - 17.4%
Best Buy* 71,635 $ 3,404
Brinker International* 191,930 6,403
Clear Channel Communications 592,560 22,695
Dollar General 443,450 8,869
Dollar Tree Stores* 233,840 7,834
Gannett 79,200 6,143
Home Depot 868,807 27,672
International Game Technology 137,730 3,877
Jones Apparel Group 182,170 5,452
Lowe's 196,250 10,185
MGM MIRAGE* 179,610 6,565
Omnicom Group 81,080 5,826
Target 383,130 14,417
Time Warner* 555,035 8,387
Viacom 114,110 4,382
Viacom, Cl B 171,784 6,579
Wal-Mart Stores 665,840 37,187
Walt Disney 809,600 16,330
Westwood One* 200,670 6,058
Yum! Brands* 211,060 6,252
-------------
214,517
-------------
CONSUMER STAPLES - 6.8%
Altria Group 404,510 17,718
Anheuser-Busch 202,250 9,979
Clorox 152,870 7,012
Coca-Cola 332,800 14,297
Hershey Foods 91,090 6,620
PepsiCo 342,540 15,699
Procter & Gamble 137,300 12,744
-------------
84,069
-------------
ENERGY - 3.7%
Apache 177,364 12,298
Baker Hughes 95,380 2,822
BJ Services* 203,200 6,943
Murphy Oil 116,710 6,857
Nabors Industries* 153,950 5,736
Schlumberger 73,010 3,534
Smith International* 208,620 7,506
-------------
45,696
-------------
FINANCIALS - 9.0%
ACE 130,110 4,304
American International Group 279,771 16,143
Capital One Financial 125,520 7,160
Citigroup 274,635 12,499
Fannie Mae 382,420 26,846
Federal Home Loan Mortgage 177,540 9,294
Goldman Sachs Group 36,400 3,054
Lehman Brothers Holdings 136,000 9,395
MBNA 758,085 17,284
MGIC Investment 65,000 3,385
Radian Group 54,850 2,435
-------------
111,799
-------------
HEALTH CARE - 26.4%
Abbott Laboratories 917,800 $ 39,052
Amgen* 385,340 24,881
Biovail* 227,110 8,437
Boston Scientific* 221,160 14,110
Cardinal Health 179,054 10,455
Caremark Rx* 602,586 13,618
Forest Laboratories, Cl A* 87,430 4,498
Gilead Sciences* 144,580 8,086
HCA 283,390 10,446
Johnson & Johnson 599,760 29,700
Medco Health Solutions* 30,608 794
Medtronic 430,040 20,177
Merck 259,160 13,119
Pfizer 2,532,040 76,923
Schering-Plough 338,200 5,154
Teva Pharmaceutical 15,400 880
UnitedHealth Group 155,560 7,828
Wellpoint Health Networks* 127,160 9,801
Wyeth 391,670 18,056
Zimmer Holdings* 190,269 10,484
-------------
326,499
-------------
INDUSTRIALS - 7.4%
3M 203,040 14,024
General Electric 2,124,190 63,322
United Technologies 174,370 13,475
-------------
90,821
-------------
INFORMATION TECHNOLOGY - 28.9%
Accenture* 666,730 14,895
Affiliated Computer Services, Cl A* 130,750 6,366
Applied Materials* 1,130,190 20,502
Automatic Data Processing 89,140 3,196
BMC Software* 353,900 4,930
Broadcom, Cl A* 182,440 4,857
Cisco Systems* 1,508,448 29,475
Dell* 748,980 25,008
eBay* 67,660 3,620
EMC* 916,550 11,576
First Data 207,970 8,310
Flextronics International* 641,140 9,091
IBM 207,190 18,301
Intel 2,179,500 59,958
Linear Technology 87,870 3,147
Micron Technology* 503,480 6,757
Microsoft 2,156,050 59,917
National Semiconductor* 167,810 5,419
Nokia, ADR, Cl A 927,740 14,473
Novellus Systems* 172,260 5,814
Oracle Systems* 985,800 11,061
QUALCOMM 207,240 8,629
Texas Instruments 929,560 21,194
-------------
356,496
-------------
TOTAL COMMON STOCKS
(Cost $1,170,493) 1,229,897
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
82
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.9%
RELATED PARTY MONEY MARKET FUND - 0.9%
First American Prime
Obligations Fund, Cl Z (a) 11,468,048 $ 11,468
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $11,468) 11,468
-------------
INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 51.2%
COMMERCIAL PAPER - 5.4%
Bluegrass
1.190%, 05/18/04 $ 2,449 2,449
CS First Boston
1.415, 10/01/03 9,794 9,794
Danske Bank
1.508%, 12/22/03 9,794 9,794
Independent IV
1.216%, 04/15/04 6,366 6,366
K2 USA
1.020%, 12/01/03 4,888 4,888
Leafs
04/20/04, 04/20/04 6,758 6,758
Mitten Mortgage
1.130%, 10/08/03 6,855 6,855
Mortgage Interest Network
1.100%, 10/15/03 2,448 2,448
1.130%, 12/02/03 4,888 4,888
Orchard Park
1.245%, 04/06/04 979 979
1.220%, 07/06/04 10,866 10,866
-------------
TOTAL COMMERCIAL PAPER 66,085
-------------
CORPORATE OBLIGATIONS - 11.6%
Allstate Life Global
1.092%, 08/16/04 9,794 9,794
Bank of Scotland
1.100%, 03/05/04 4,897 4,897
Castle Hill III
1.176%, 09/16/04 2,938 2,938
Deutsche Bank
1.430%, 12/31/03 3,918 3,918
1.340%, 03/22/04 4,897 4,897
General Electric Capital Corporation
1.150%, 07/09/07 4,899 4,899
Halogen Fund
1.150%, 10/03/03 20,371 20,371
Lloyd's Bank
1.100%, 03/05/04 9,794 9,794
Metlife Global Funding
1.130%, 09/15/04 5,875 5,875
1.147%, 04/28/08 4,114 4,114
Monet Trust
1.210%, 12/28/03 9,794 9,794
Residential Mortgage Securities
1.140%, 09/11/04 7,346 7,346
Sigma Finance
1.268%, 08/09/04 9,793 9,793
SMM Trust 2002-M
1.140%, 09/23/04 16,406 16,406
Svenska Handlsbankn
1.100%, 03/03/04 9,794 9,794
1.100%, 03/15/04 1,763 1,763
Wells Fargo Bank
1.050%, 10/17/03 9,794 9,794
1.060%, 10/31/03 6,856 6,856
-------------
TOTAL CORPORATE OBLIGATIONS 143,043
-------------
MONEY MARKET FUNDS - 0.1%
AIM Short Term Liquid Asset Portfolio 391,777 $ 392
Merrill Lynch Premier Institutional Fund 1,283,412 1,283
-------------
TOTAL MONEY MARKET FUNDS 1,675
-------------
OTHER SHORT-TERM INVESTMENTS - 4.3%
Commonwealth Life
1.430%, 10/01/03 $ 4,945 4,945
General Electric Capital Assurance
1.370%, 12/19/03 1,959 1,959
Liquid Funding
1.130%, 8/23/04 4,896 4,896
1.130%, 9/14/04 4,896 4,896
Premium Asset Trust 02-7
0.110%, 06/01/04 14,594 14,594
Security Life Denver
1.381%, 01/13/04 12,733 12,733
1.490%, 03/15/04 9,795 9,795
-------------
TOTAL OTHER SHORT-TERM INVESTMENTS 53,818
-------------
REPURCHASE AGREEMENTS - 29.8%
Bear Stearns
1.240%, dated 9/30/03, matures 10/1/03,
repurchase price $19,589,502 (collateralized
by various securities:
Total Market Value $19,989,560) 19,589 19,589
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $24,486,808 (collateralized
by U.S. Government Securities:
Total Market Value $24,975,985) 24,486 24,486
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $3,036,364 (collateralized
by U.S. Government Securities:
Total Market Value $3,097,033) 3,036 3,036
CS First Boston
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $7,835,802 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $8,227,557) 7,836 7,836
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $4,897,354 (collateralized
by U.S. Government Securities:
Total Market Value $4,995,151) 4,897 4,897
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $19,589,414 (collateralized
by U.S. Government Securities :
Total Market Value $19,980,603) 19,589 19,589
Deutsche Bank
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $39,179,011 (collateralized
by Corporate Securities:
Total Market Value $41,136,536) 39,178 39,178
Goldman Sachs
1.268%, dated 9/30/03, matures 10/1/03,
repurchase price $14,692,137 (collateralized
by Corporate Securities:
Total Market Value $15,423,019) 14,692 14,692
Goldman Sachs
1.330%, dated 9/30/03, matures 10/1/03,
repurchase price $9,794,775 (collateralized
by various securities:
Total Market Value $10,097,355) 9,794 9,794
</Table>
83
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Goldman Sachs
1.380%, dated 9/30/03, matures 10/1/03,
repurchase price $4,897,394 (collateralized
by various securities:
Total Market Value $4,997,234) $ 4,897 $ 4,897
Lehman Brothers
1.120%, dated 9/30/03, matures 10/1/03,
repurchase price $26,935,475 (collateralized
by U.S. Government Securities:
Total Market Value $27,473,407) 26,935 26,935
Lehman Brothers
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $9,794,721 (collateralized
by U.S. Government Securities:
Total Market Value $9,990,658) 9,794 9,794
Lehman Brothers
1.388%, dated 9/30/03, matures 10/1/03,
repurchase price $19,589,582 (collateralized
by various securities:
Total Market Value $19,850,011) 19,589 19,589
Lehman Brothers
1.150%, dated 9/30/03, matures 10/1/03,
repurchase price $5,582,994 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $5,906,687) 5,583 5,583
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $29,384,146 (collateralized
by U.S. Government Securities:
Total Market Value $29,971,309) 29,383 29,383
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $884,286 (collateralized
by U.S. Government Securities:
Total Market Value $902,288) 884 884
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $2,448,679 (collateralized
by U.S. Government Securities:
Total Market Value $2,497,717) 2,449 2,449
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $5,876,829 (collateralized
by U.S. Government Securities:
Total Market Value $5,994,474) 5,877 5,877
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $19,589,431 (collateralized
by U.S. Government Securities:
Total Market Value $19,980,878) 19,589 19,589
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $24,486,788 (collateralized
by U.S. Government Securities:
Total Market Value $24,975,997) 24,486 24,486
Merrill Lynch
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $19,589,442 (collateralized
by U.S. Government Securities:
Total Market Value $19,981,274) 19,589 19,589
Merrill Lynch
1.308%, dated 9/30/03, matures 10/1/03,
repurchase price $19,589,538 (collateralized
by Corporate Securities:
Total Market Value $20,568,308) $ 19,589 $ 19,589
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $5,191,220 (collateralized
by Asset-Backed securities:
Total Market Value $5,450,591) 5,191 5,191
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $30,461,670 (collateralized
by Collateralized Mortgage Obligations &
Asset-Backed securities:
Total Market Value $31,990,674) 30,461 30,461
-------------
TOTAL REPURCHASE AGREEMENTS 367,393
-------------
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING
(Cost $632,014) 632,014
-------------
TOTAL INVESTMENTS - 151.7%
(Cost $1,813,975) 1,873,379
-------------
OTHER ASSETS AND LIABILITIES, NET - (51.7)% (638,766)
-------------
TOTAL NET ASSETS - 100.0% $ 1,234,613
-------------
</Table>
* Non-income producing security
(a) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements.
ADR - American Depositary Receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
84
<Page>
SCHEDULE OF INVESTMENTS September 30, 2003
LARGE CAP SELECT FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 94.7%
CONSUMER DISCRETIONARY - 13.3%
Black & Decker 3,385 $ 137
Clear Channel Communications 46,350 1,775
Dollar General 14,531 291
Dollar Tree Stores* 8,580 287
Home Depot 60,722 1,934
Jones Apparel Group 45,880 1,373
Lowe's 5,778 300
MGM MIRAGE* 8,150 298
Target 9,338 351
Time Warner* 157,260 2,376
Tribune 6,690 307
Viacom, Cl B 32,783 1,256
Wal-Mart Stores 52,096 2,910
Walt Disney 124,770 2,517
Yum! Brands* 23,320 691
-------------
16,803
-------------
CONSUMER STAPLES - 6.9%
Altria Group 56,990 2,496
Anheuser-Busch 13,936 688
Clorox 16,345 750
Coca-Cola 31,459 1,351
General Mills 6,597 311
Hershey Foods 4,260 310
PepsiCo 10,740 492
Procter & Gamble 24,919 2,313
-------------
8,711
-------------
ENERGY - 7.6%
Apache 7,491 519
Baker Hughes 13,830 409
BJ Services* 13,288 454
BP, PLC 21,470 904
Conoco, Cl B 12,901 706
ENSCO International 19,510 523
Exxon Mobil 61,270 2,242
Halliburton 20,236 491
Nabors Industries* 8,430 314
Noble* 13,259 451
Schlumberger 47,537 2,301
Smith International* 8,595 309
-------------
9,623
-------------
FINANCIALS - 16.6%
Allstate 52,142 1,905
American Express 19,760 890
American International Group 19,347 1,116
Bank of America 9,979 779
Bank One 7,992 309
Capital One Financial 5,056 288
Citigroup 121,420 5,526
Fannie Mae 18,395 1,291
Federal Home Loan Mortgage 8,699 455
Goldman Sachs Group 17,261 1,448
Hartford Financial Services Group 6,980 367
J. P. Morgan Chase 13,640 468
Lehman Brothers 5,200 359
Lincoln National 8,480 300
MBNA 41,830 954
Merrill Lynch 23,210 $ 1,242
Radian Group 18,520 822
Wachovia 35,586 1,466
Wells Fargo 6,961 358
XL Capital Limited, Cl A 8,809 682
-------------
21,025
-------------
HEALTH CARE - 15.7%
Abbott Laboratories 128,192 5,455
Amgen* 8,712 563
Biovail* 12,330 458
Boston Scientific* 11,900 759
Bristol-Myers Squibb 24,236 622
Cardinal Health 8,360 488
Caremark Rx* 16,950 383
HCA 15,260 562
Health Management Associates, Cl A 29,310 639
Johnson & Johnson 28,551 1,414
Medtronic 18,335 860
Merck 25,936 1,313
Pfizer 148,348 4,507
UnitedHealth Group 6,234 314
Wellpoint Health Networks* 4,941 381
Wyeth 17,396 802
Zimmer Holdings* 5,800 320
-------------
19,840
-------------
INDUSTRIALS - 7.9%
3M 28,614 1,976
Caterpillar 9,405 647
Eaton 3,280 291
FedEx 4,700 303
General Electric 104,048 3,102
General Motors 8,140 333
Goodrich 11,950 290
SPX* 6,480 293
Tyco International 43,720 893
Union Pacific 5,137 299
United Technologies 17,325 1,339
Waste Management 11,670 305
-------------
10,071
-------------
INFORMATION TECHNOLOGY - 21.2%
Accenture* 28,036 626
Applied Materials* 79,332 1,439
ASML* 20,750 272
BMC Software* 20,800 290
Broadcom* 12,140 324
Cadence Design Systems* 32,160 431
Cisco Systems* 41,759 816
Computer Associates International 39,983 1,044
Dell* 38,702 1,292
EMC* 128,003 1,617
First Data 7,320 293
Flextronics International* 41,414 587
Hewlett-Packard 34,980 677
IBM 30,072 2,656
Intel 164,656 4,530
Micron Technology* 75,660 1,015
Microsoft 119,526 3,322
Nokia, ADR, Cl A 78,646 1,227
</Table>
85
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Novellus Systems* 11,689 $ 395
Oracle Systems* 49,379 554
QUALCOMM 6,913 288
Texas Instruments 141,526 3,227
-------------
26,922
-------------
MATERIALS - 2.2%
Agrium 43,270 544
Dow Chemical 45,970 1,496
Georgia-Pacific 17,120 415
Praxair 5,746 356
-------------
2,811
-------------
TELECOMMUNICATION SERVICES - 2.2%
ALLTEL 8,910 413
BellSouth 21,380 506
CenturyTel 16,867 572
SBC Communications 27,530 613
Verizon Communications 19,658 638
-------------
2,742
-------------
UTILITIES - 1.1%
Dominion Resources 7,563 468
Exelon 5,431 345
FPL Group 5,106 323
PPL 7,500 307
-------------
1,443
-------------
TOTAL COMMON STOCKS
(Cost $116,888) 119,991
-------------
SHORT-TERM INVESTMENTS - 7.6%
U.S. TREASURY OBLIGATION - 0.5%
United States Treasury Bill (b)
0.970%, 03/11/04 $ 700 697
-------------
TOTAL U.S. TREASURY OBLIGATION
(Cost $697) 697
-------------
RELATED PARTY MONEY MARKET FUND - 7.1%
First American Prime Obligations Fund, Cl Z (a) 8,963,869 8,964
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $8,964) 8,964
-------------
TOTAL SHORT TERM INVESTMENTS
(Cost $9,661) 9,661
-------------
INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 29.6%
COMMERCIAL PAPER - 3.1%
Bluegrass
1.190%, 05/18/04 145 145
CS First Boston
1.415, 10/01/03 581 581
Danske Bank
1.508%, 12/22/03 581 581
Independent IV
1.216%, 04/15/04 378 378
K2 USA
1.020%, 12/01/03 290 290
Leafs
04/20/04, 04/20/04 401 401
Mitten Mortgage
1.130%, 10/08/03 407 407
Mortgage Interest Network
1.100%, 10/15/03 145 145
1.130%, 12/02/03 290 290
Orchard Park
1.245%, 04/06/04 $ 58 $ 58
1.220%, 07/06/04 645 645
-------------
TOTAL COMMERCIAL PAPER 3,921
-------------
CORPORATE OBLIGATIONS - 6.7%
Allstate Life Global
1.092%, 08/16/04 581 581
Bank of Scotland
1.100%, 03/05/04 291 291
Castle Hill III
1.176%, 09/16/04 174 174
Deutsche Bank
1.430%, 12/31/03 233 233
1.340%, 03/22/04 291 291
General Electric Capital Corporation
1.150%, 07/09/07 291 291
Halogen Fund
1.150%, 10/03/03 1,209 1,209
Lloyds Bank
1.100%, 03/05/04 581 581
Metlife Global Funding
1.130%, 09/15/04 349 349
1.147%, 04/28/08 244 244
Monet Trust
1.210%, 12/28/03 581 581
Residential Mortgage Securities
1.140%, 09/11/04 436 436
Sigma Finance
1.268%, 08/09/04 581 581
SMM Trust 2002-M
1.140%, 09/23/04 973 973
Svenska Handlsbankn
1.100%, 03/03/04 581 581
1.100%, 03/15/04 105 105
Wells Fargo Bank
1.050%, 10/17/03 581 581
1.060%, 10/31/03 407 407
-------------
TOTAL CORPORATE OBLIGATIONS 8,489
-------------
MONEY MARKET FUNDS - 0.1%
AIM Short Term Liquid Asset Portfolio 23,248 23
Merrill Lynch Premier Institutional Fund 76,157 76
-------------
TOTAL MONEY MARKET FUNDS 99
-------------
OTHER SHORT-TERM INVESTMENTS - 2.5%
Commonwealth Life
1.430%, 10/01/03 293 293
General Electric Capital Assurance
1.370%, 12/19/03 116 116
Liquid Funding
1.130%, 8/23/04 291 291
1.130%, 9/14/04 291 291
Premium Asset Trust 02-7
0.110%, 06/01/04 866 866
Security Life Denver
1.381%, 01/13/04 756 756
1.490%, 03/15/04 581 581
-------------
TOTAL OTHER SHORT-TERM INVESTMENTS 3,194
-------------
REPURCHASE AGREEMENTS - 17.2%
Bear Stearns
1.240%, dated 9/30/03, matures 10/1/03, repurchase price
$1,162,385 (collateralized by various securities:
Total Market Value $1,162,425) 1,162 1,162
</Table>
The accompanying notes are an integral part of the financial statements.
86
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $1,453,027 (collateralized
by U.S. Government Securities:
Total Market Value $1,482,054) $ 1,453 $ 1,453
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $180,175 (collateralized
by U.S. Government Securities:
Total Market Value $183,775) 180 180
CS First Boston
1.248%, dated 9/30/03, matures 10/1/03, repurchase price
$464,970 (collateralized by Collateralized Mortgage
Obligations:
Total Market Value $488,216) 465 465
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $290,605 (collateralized
by U.S. Government Securities:
Total Market Value $296,408) 291 291
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $1,162,420 (collateralized
by U.S. Government Securities:
Total Market Value $1,185,632) 1,162 1,162
Deutsche Bank
1.248%, dated 9/30/03, matures 10/1/03, repurchase price
$2,324,850 (collateralized by Corporate Securities:
Total Market Value $2,441,008) 2,325 2,325
Goldman Sachs
1.268%, dated 9/30/03, matures 10/1/03, repurchase price
$871,819 (collateralized by Corporate Securities:
Total Market Value $915,189) 872 872
Goldman Sachs
1.330%, dated 9/30/03, matures 10/1/03, repurchase price
$581,214 (collateralized by various securities:
Total Market Value $599,169) 581 581
Goldman Sachs
1.380%, dated 9/30/03, matures 10/1/03, repurchase price
$290,607 (collateralized by various securities:
Total Market Value $296,532) 291 291
Lehman Brothers
1.120%, dated 9/30/03, matures 10/1/03,
repurchase price $1,598,329 (collateralized
by U.S. Government Securities:
Total Market Value $1,630,249) 1,598 1,598
Lehman Brothers
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $581,211 (collateralized
by U.S. Government Securities:
Total Market Value $592,837) 581 581
Lehman Brothers
1.388%, dated 9/30/03, matures 10/1/03, repurchase price
$1,162,430 (collateralized by various securities:
Total Market Value $1,177,883) 1,162 1,162
Lehman Brothers
1.150%, dated 9/30/03, matures 10/1/03, repurchase price
$331,290 (collateralized by Collateralized Mortgage
Obligations:
Total Market Value $350,498) 331 331
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $1,743,631 (collateralized
by U.S. Government Securities:
Total Market Value $1,778,473) 1,744 1,744
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $52,473 (collateralized
by U.S. Government Securities:
Total Market Value $53,541) $ 53 $ 53
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $145,303 (collateralized
by U.S. Government Securities:
Total Market Value $148,212) 145 145
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $348,726 (collateralized
by U.S. Government Securities:
Total Market Value $355,707) 349 349
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $1,162,421 (collateralized
by U.S. Government Securities:
Total Market Value $1,185,649) 1,161 1,161
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $1,453,026 (collateralized
by U.S. Government Securities:
Total Market Value $1,482,055) 1,453 1,453
Merrill Lynch
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $1,162,421 (collateralized
by U.S. Government Securities:
Total Market Value $1,185,672) 1,162 1,162
Merrill Lynch
1.308%, dated 9/30/03, matures 10/1/03, repurchase price
$1,162,427 (collateralized by Corporate Securities:
Total Market Value $1,220,506) 1,162 1,162
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03, repurchase price
$308,043 (collateralized by Asset-Backed securities:
Total Market Value $323,434) 308 308
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03, repurchase price
$1,807,572 (collateralized by Collateralized Mortgage
Obligations & Asset-Backed securities:
Total Market Value $1,898,300) 1,808 1,808
-------------
TOTAL REPURCHASE AGREEMENTS 21,799
-------------
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING
(Cost $37,502) 37,502
-------------
TOTAL INVESTMENTS - 131.9%
(Cost $164,051) 167,154
-------------
OTHER ASSETS AND LIABILITIES, NET - (31.9)% (40,408)
-------------
TOTAL NET ASSETS - 100.0% $ 126,746
-------------
</Table>
* Non-income producing security
(a) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements.
(b) Security has been deposited as initial margin on open futures contracts.
Yield shown is effective yield at date of purchase. See note 2 in Notes to
Financial Statements for additional information.
ADR - American Depositary Receipt
Cl - Class
87
<Page>
SCHEDULE OF INVESTMENTS September 30, 2003
LARGE CAP VALUE FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 100.3%
CONSUMER DISCRETIONARY - 11.6%
Black & Decker 86,640 $ 3,513
Clear Channel Communications 127,350 4,877
Comcast* 180,336 5,569
Delphi Automotive Systems 571,010 5,168
General Motors 237,450 9,719
Jones Apparel Group 424,390 12,702
McDonald's 251,290 5,915
Time Warner* 1,436,290 21,702
TJX 310,430 6,029
Tribune 209,100 9,598
Viacom, Cl B 242,930 9,304
Walt Disney 761,050 15,350
Yum! Brands* 306,150 9,068
-------------
118,514
-------------
CONSUMER STAPLES - 5.7%
Altria Group 429,340 18,805
Clorox 172,200 7,899
Coca-Cola 177,400 7,621
General Mills 175,800 8,275
Procter & Gamble 176,500 16,383
-------------
58,983
-------------
ENERGY - 10.5%
Apache 115,457 8,006
BP, ADR 266,380 11,215
Conoco, Cl B 332,450 18,202
ENSCO International 254,510 6,826
Exxon Mobil 1,029,414 37,677
Halliburton 430,250 10,434
Noble* 222,750 7,571
Schlumberger 165,060 7,989
-------------
107,920
-------------
FINANCIALS - 31.3%
Allstate 589,400 21,531
American Express 368,500 16,605
American International Group 142,540 8,225
Bank of America 250,070 19,515
Bank One 304,350 11,763
Boston Properties (REIT) 128,100 5,568
Charter One Financial 343,470 10,510
CIT Group 176,970 5,090
Citigroup 1,360,482 61,916
Compass Bancshares 130,560 4,515
Edwards A.G 166,880 6,410
Federal Home Loan Mortgage 69,040 3,614
FleetBoston Financial 176,350 5,317
General Growth Properties 45,010 3,227
Goldman Sachs Group 139,100 11,670
Hartford Financial Services Group 170,450 8,971
J. P. Morgan Chase 560,300 19,235
Lincoln National 145,590 5,151
Merrill Lynch 341,550 18,283
Radian Group 228,200 10,132
Simon Property Group 128,500 5,600
State Street 65,510 2,948
Synovus Financial 246,190 6,152
Wachovia 649,490 26,752
Wells Fargo 207,750 $ 10,699
XL Capital Limited, Cl A 138,850 10,753
-------------
320,152
-------------
HEALTH CARE - 6.0%
Abbott Laboratories 547,560 23,299
Bristol-Myers Squibb 519,300 13,325
Health Management Associates, Cl A 527,830 11,512
Merck 257,100 13,014
-------------
61,150
-------------
INDUSTRIALS - 8.5%
3M 65,940 4,554
Caterpillar 202,200 13,919
Eaton 113,800 10,085
FedEx 145,700 9,387
Goodrich 286,250 6,939
Northwest Airlines* 202,950 1,969
SPX* 124,010 5,615
Tyco International 281,210 5,745
Union Pacific 128,900 7,498
United Technologies 129,000 9,969
Waste Management 210,200 5,501
York International 161,640 5,591
-------------
86,772
-------------
INFORMATION TECHNOLOGY - 10.5%
ASML* 386,880 5,080
Cadence Design Systems* 765,400 10,256
Computer Associates International 571,200 14,914
EMC* 803,700 10,151
Hewlett-Packard 831,738 16,102
IBM 264,156 23,333
Intel 309,380 8,511
Micron Technology* 381,550 5,120
Texas Instruments 615,040 14,023
-------------
107,490
-------------
MATERIALS - 5.4%
Agrium 859,510 10,795
Dow Chemical 693,360 22,562
Georgia-Pacific 458,030 11,103
Praxair 175,950 10,900
-------------
55,360
-------------
TELECOMMUNICATION SERVICES - 6.5%
ALLTEL 239,050 11,078
Avaya* 421,000 4,589
BellSouth 429,250 10,165
CenturyTel 366,350 12,416
SBC Communications 549,826 12,234
Verizon Communications 483,852 15,696
-------------
66,178
-------------
UTILITIES - 4.3%
Dominion Resources 220,000 13,618
Exelon 191,900 12,186
FPL Group 171,400 10,832
PPL 190,040 7,782
-------------
44,418
-------------
TOTAL COMMON STOCKS
(Cost $947,444) 1,026,937
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
88
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.4%
RELATED PARTY MONEY MARKET FUND - 0.4%
First American Prime Obligations Fund, Cl Z (a) 3,886,783 $ 3,887
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $3,887) 3,887
-------------
INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 44.8%
COMMERCIAL PAPER - 4.7%
Bluegrass
1.190%, 05/18/04 $ 1,778 1,778
CS First Boston
1.415, 10/01/03 7,112 7,112
Danske Bank
1.508%, 12/22/03 7,112 7,112
Independent IV
1.216%, 04/15/04 4,623 4,623
K2 USA
1.020%, 12/01/03 3,549 3,549
Leafs
04/20/04, 04/20/04 4,907 4,907
Mitten Mortgage
1.130%, 10/08/03 4,977 4,977
Mortgage Interest Network
1.100%, 10/15/03 1,777 1,777
1.130%, 12/02/03 3,549 3,549
Orchard Park
1.245%, 04/06/04 711 711
1.220%, 07/06/04 7,890 7,890
-------------
TOTAL COMMERCIAL PAPER 47,985
-------------
CORPORATE OBLIGATIONS - 10.1%
Allstate Life Global
1.092%, 08/16/04 7,112 7,112
Bank of Scotland
1.100%, 03/05/04 3,556 3,556
Castle Hill III
1.176%, 09/16/04 2,133 2,133
Deutsche Bank
1.430%, 12/31/03 2,845 2,845
1.340%, 03/22/04 3,556 3,556
General Electric Capital Corporation
1.150%, 07/09/07 3,557 3,557
Halogen Fund
1.150%, 10/03/03 14,791 14,791
Lloyd's Bank
1.100%, 03/05/04 7,112 7,112
Metlife Global Funding
1.130%, 09/15/04 4,266 4,266
1.147%, 04/28/08 2,987 2,987
Monet Trust
1.210%, 12/28/03 7,112 7,112
Residential Mortgage Securities
1.140%, 09/11/04 5,334 5,334
Sigma Finance
1.268%, 08/09/04 7,111 7,111
SMM Trust 2002-M
1.140%, 09/23/04 11,912 11,912
Svenska Handlsbankn
1.100%, 03/03/04 7,112 7,112
1.100%, 03/15/04 1,280 1,280
Wells Fargo Bank
1.050%, 10/17/03 $ 7,112 $ 7,112
1.060%, 10/31/03 4,978 4,978
-------------
TOTAL CORPORATE OBLIGATIONS 103,866
-------------
MONEY MARKET FUNDS - 0.1%
AIM Short Term Liquid Asset Portfolio 284,473 284
Merrill Lynch Premier Institutional Fund 931,898 932
-------------
TOTAL MONEY MARKET FUNDS 1,216
-------------
OTHER SHORT-TERM INVESTMENTS - 3.8%
Commonwealth Life
1.430%, 10/01/03 3,591 3,591
General Electric Capital Assurance
1.370%, 12/19/03 1,422 1,422
Liquid Funding
1.130%, 8/23/04 3,555 3,555
1.130%, 9/14/04 3,555 3,555
Premium Asset Trust 02-7
0.110%, 06/01/04 10,597 10,597
Security Life Denver
1.381%, 01/13/04 9,245 9,245
1.490%, 03/15/04 7,112 7,112
-------------
TOTAL OTHER SHORT-TERM INVESTMENTS 39,077
-------------
REPURCHASE AGREEMENTS - 26.1%
Bear Stearns
1.240%, dated 9/30/03, matures 10/1/03, repurchase price
$14,230,985 (collateralized by various securities:
Total Market Value $14,514,634) 14,224 14,224
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $17,780,108 (collateralized
by U.S. Government Securities:
Total Market Value $18,135,303) 17,779 17,779
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $2,204,733 (collateralized
by U.S. Government Securities:
Total Market Value $2,248,785) 2,205 2,205
CS First Boston
1.248%, dated 9/30/03, matures 10/1/03, repurchase price
$5,689,652 (collateralized by Collateralized Mortgage
Obligations:
Total Market Value $5,974,108) 5,689 5,689
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $3,556,016 (collateralized
by U.S. Government Securities:
Total Market Value $3,627,027) 3,556 3,556
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $14,224,063 (collateralized
by U.S. Government Securities:
Total Market Value $14,508,109) 14,224 14,224
Deutsche Bank
1.248%, dated 9/30/03, matures 10/1/03, repurchase price
$28,448,258 (collateralized by Corporate Securities:
Total Market Value $29,869,635) 28,447 28,447
Goldman Sachs
1.268%, dated 9/30/03, matures 10/1/03, repurchase price
$10,668,103 (collateralized by Corporate Securities:
Total Market Value $11,198,802) 10,668 10,668
</Table>
89
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Goldman Sachs
1.330%, dated 9/30/03, matures 10/1/03, repurchase price
$7,112,081 (collateralized by various securities):
Total Market Value $7,331,786) $ 7,112 $ 7,112
Goldman Sachs
1.380%, dated 9/30/03, matures 10/1/03, repurchase price
$3,556,045 (collateralized by various securities:
Total Market Value $3,628,540) 3,556 3,556
Lehman Brothers
1.120%, dated 9/30/03, matures 10/1/03,
repurchase price $19,558,108 (collateralized
by U.S. Government Securities:
Total Market Value $19,948,706) 19,557 19,557
Lehman Brothers
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $7,112,041 (collateralized
by U.S. Government Securities:
Total Market Value $7,254,313) 7,112 7,112
Lehman Brothers
1.388%, dated 9/30/03, matures 10/1/03, repurchase price
$14,224,184 (collateralized by various securities:
Total Market Value $14,413,284) 14,224 14,224
Lehman Brothers
1.150%, dated 9/30/03, matures 10/1/03, repurchase price
$4,053,866 (collateralized by Collateralized Mortgage
Obligations:
Total Market Value $4,288,902) 4,054 4,054
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $21,336,112 (collateralized
by U.S. Government Securities:
Total Market Value $21,762,456) 21,334 21,334
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $642,088 (collateralized
by U.S. Government Securities:
Total Market Value $655,160) 642 642
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $1,778,009 (collateralized
by U.S. Government Securities:
Total Market Value $1,813,616) 1,778 1,778
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $4,267,222 (collateralized
by U.S. Government Securities:
Total Market Value $4,352,645) 4,267 4,267
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $14,224,074 (collateralized
by U.S. Government Securities:
Total Market Value $14,508,308) 14,224 14,224
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $17,780,093 (collateralized
by U.S. Government Securities:
Total Market Value $18,135,312) 17,779 17,779
Merrill Lynch
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $14,224,082 (collateralized
by U.S. Government Securities:
Total Market Value $14,508,595) $ 14,224 $ 14,224
Merrill Lynch
1.308%, dated 9/30/03, matures 10/1/03, repurchase price
$14,224,153 (collateralized by Corporate Securities:
Total Market Value $14,934,846) 14,224 14,224
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03, repurchase price
$3,769,395 (collateralized by Asset-Backed securities:
Total Market Value $3,957,727) 3,769 3,769
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03, repurchase price
$22,118,526 (collateralized by Collateralized Mortgage
Obligations & Asset-Backed securities:
Total Market Value $23,228,737) 22,118 22,118
-------------
TOTAL REPURCHASE AGREEMENTS 266,766
-------------
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING
(Cost $458,910) 458,910
-------------
TOTAL INVESTMENTS - 145.5%
(Cost $1,410,241) 1,489,734
-------------
OTHER ASSETS AND LIABILITIES, NET - (45.5)% (465,767)
-------------
TOTAL NET ASSETS - 100.0% $ 1,023,967
-------------
</Table>
* Non-income producing security
(a) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements.
ADR - American Depositary Receipt
Cl - Class
REIT - Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
90
<Page>
STATEMENTS OF ASSETS AND LIABILITIES September 30, 2003, in thousands, except
for per share data
<Table>
<Caption>
LARGE CAP GROWTH LARGE CAP LARGE CAP
OPPORTUNITIES FUND SELECT FUND VALUE FUND
- ------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated securities, at value*+ $ 1,861,911 $ 158,190 $ 1,485,847
Investments in affiliated securities, at value** 11,468 8,964 3,887
Cash -- 3 67
Dividends and interest receivable 1,101 112 1,552
Receivable for investment securities sold -- 2,166 45,671
Capital shares sold 838 1,544 354
Prepaid expenses and other assets 34 23 27
- ------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 1,875,352 171,002 1,537,405
==================================================================================================================
LIABILITIES:
Payable for investment securities purchased 3,967 6,586 49,342
Payable upon return of securities loaned 632,014 37,503 458,911
Capital shares redeemed 3,730 -- 4,353
Variation margin receivable -- 91 --
Payable for advisory, co-administration, and custodian fees 959 76 776
Distribution and shareholder servicing fees 69 -- 56
- ------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 640,739 44,256 513,438
==================================================================================================================
NET ASSETS $ 1,234,613 $ 126,746 $ 1,023,967
==================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 1,442,420 $ 122,864 $ 1,115,464
Undistributed net investment income 212 5 --
Accumulated net realized gain (loss) (267,423) 889 (170,990)
Net unrealized appreciation of investments 59,404 3,103 79,493
Net unrealized depreciation of futures contracts -- (115) --
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,234,613 $ 126,746 $ 1,023,967
==================================================================================================================
* Investments in unaffiliated securities, at cost $ 1,802,507 $ 155,087 $ 1,406,354
** Investments in affiliated securities, at cost 11,468 8,964 3,887
+ Including securities loaned, at value $ 602,269 $ 35,474 $ 440,574
CLASS A:
Net assets $ 93,331 $ 215 $ 88,024
Shares issued and outstanding ($0.0001 par value
-- 2 billion authorized) 4,086 19 5,882
Net asset value and redemption price per share $ 22.84 $ 11.45 $ 14.97
Maximum offering price per share (1) $ 24.17 $ 12.12 $ 15.84
CLASS B:
Net assets $ 37,853 $ 113 $ 30,987
Shares issued and outstanding ($0.0001 par value
-- 2 billion authorized) 1,713 10 2,109
Net asset value, offering price and redemption price
per share (2) $ 22.10 $ 11.41 $ 14.70
CLASS C:
Net assets $ 15,365 $ 26 $ 6,844
Shares issued and outstanding ($0.0001 par value
-- 2 billion authorized) 682 2 460
Net asset value and redemption price per share (2) $ 22.55 $ 11.42 $ 14.87
Maximum offering price per share (3) $ 22.78 $ 11.54 $ 15.02
CLASS S:
Net assets $ 15,890 $ 1 $ 23,845
Shares issued and outstanding ($0.0001 par value
-- 2 billion authorized) 695 -- 1,594
Net asset value, offering price, and redemption price
per share $ 22.85 $ 11.44 $ 14.96
CLASS Y:
Net assets $ 1,072,174 $ 126,391 $ 874,267
Shares issued and outstanding ($0.0001 par value
-- 2 billion authorized) 45,865 11,040 58,274
Net asset value, offering price, and redemption price
per share $ 23.38 $ 11.45 $ 15.01
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.50%
(2) Class B and C have a contingent deferred sales charge. For a description of
this sales charge, see notes 1 and 3 in Notes to Financial Statements.
(3) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%
The accompanying notes are an integral part of the financial statements.
91
<Page>
STATEMENTS OF OPERATIONS For the fiscal year ended September 30, 2003, in
thousands
<Table>
<Caption>
LARGE CAP GROWTH LARGE CAP LARGE CAP
OPPORTUNITIES FUND SELECT FUND(1) VALUE FUND
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest from affiliated securities $ 198 $ 30 $ 233
Dividends 10,518 448 24,150
Less: Foreign taxes withheld (23) (1) (23)
Securities lending 254 2 270
Other income 85 -- 505
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 11,032 479 25,135
==================================================================================================================
EXPENSES:
Investment advisory fees 5,973 197 6,671
Co-administration fees and expenses (including per account
transfer agency fees) 2,499 82 2,806
Custodian fees 92 3 103
Directors' fees 13 -- 16
Registration fees 19 5 20
Professional fees 30 1 37
Printing 31 2 39
Other 15 3 31
Distribution and shareholder servicing fees - Class A 152 -- 219
Distribution and shareholder servicing fees - Class B 227 -- 329
Distribution and shareholder servicing fees - Class C 94 -- 73
Shareholder servicing fees - Class S 26 -- 64
- ------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 9,171 293 10,408
==================================================================================================================
Less: Fee waivers (402) (26) (486)
- ------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 8,769 267 9,922
==================================================================================================================
INVESTMENT INCOME - NET 2,263 212 15,213
==================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FUTURES CONTRACTS - NET:
Net realized gain (loss) on investments (8,348) 645 (74,910)
Net realized gain on futures contracts -- 244 --
Net change in unrealized apppreciation or depreciation of
investments 181,534 3,103 235,175
Net change in unrealized apppreciation or depreciation of
futures contracts -- (115) --
- ------------------------------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 173,186 3,877 160,265
==================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 175,449 $ 4,089 $ 175,478
==================================================================================================================
</Table>
(1) Commenced operations on January 31, 2003.
The accompanying notes are an integral part of the financial statements.
92
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
LARGE CAP GROWTH LARGE CAP LARGE CAP
OPPORTUNITIES FUND SELECT FUND VALUE FUND
- -----------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 1/31/03 (2) 10/1/02 10/1/01
TO TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/03 9/30/02
- -----------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income - net $ 2,263 $ 727 $ 212 $ 15,213 $ 11,486
Net realized gain (loss) on investments (8,348) (38,565) 645 (74,910) (69,319)
Net realized gain on futures -- -- 244 -- --
Net change in unrealized appreciation or
depreciation of investments 181,534 (37,497) 3,103 235,175 (202,478)
Net change in unrealized appreciation or
depreciation of futures contracts -- -- (115) -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 175,449 (75,335) 4,089 175,478 (260,311)
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (72) (68) -- (1,096) (821)
Class B (1) (3) -- (194) (63)
Class C (2) -- -- (42) (16)
Class S (15) (5) -- (325) (104)
Class Y (2,319) (838) (207) (13,005) (10,413)
Tax return of capital:
Class A -- -- -- -- (25)
Class B -- -- -- -- (10)
Class C -- -- -- -- (2)
Class S -- -- -- -- (7)
Class Y -- -- -- -- (240)
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions (2,409) (914) (207) (14,769) (11,701)
=============================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 14,680 3,585 207 12,490 10,151
Reinvestment of distributions 68 65 -- 1,055 804
Payments for redemptions (16,989) (6,469) (1) (24,446) (29,928)
Shares issued in connection with the
acquisition of Fund net assets 56,074 -- -- -- 33,799
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A
transactions 53,833 (2,819) 206 (10,901) 14,826
- -----------------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 1,467 1,361 110 1,108 2,307
Reinvestment of distributions 1 3 -- 195 71
Payments for redemptions (6,688) (511) -- (9,181) (9,549)
Shares issued in connection with the
acquisition of Fund net assets 33,725 -- -- -- 12,359
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B
transactions 28,505 853 110 (7,878) 5,188
- -----------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 3,480 1,034 32 1,111 2,449
Reinvestment of distributions 2 -- -- 42 18
Payments for redemptions (2,744) (350) (7) (2,932) (3,164)
Shares issued in connection with the
acquisition of Fund net assets 11,793 -- -- -- 91
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C
transactions 12,531 684 25 (1,779) (606)
- -----------------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 5,934 2,442 1 7,302 1,898
Reinvestment of distributions 12 4 -- 323 109
Payments for redemptions (3,637) (2,382) -- (11,536) (4,834)
Shares issued in connection with the
acquisition of Fund net assets 8,878 -- -- -- 35,966
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S
transactions 11,187 64 1 (3,911) 33,139
- -----------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 293,846 106,388 123,607 148,267 161,444
Reinvestment of distributions 955 502 126 8,829 6,422
Payments for redemptions (317,222) (99,984) (1,211) (245,103) (528,969)
Shares issued in connection with the
acquisition of Fund net assets 418,499 -- -- -- 443,799
Shares issued in connection with the acquisition
of Common Trust Fund net assets 273,701 -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y
transactions 669,779 6,906 122,522 (88,007) 82,696
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 775,835 5,688 122,864 (112,476) 135,243
- -----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 948,875 (70,561) 126,746 48,233 (136,769)
NET ASSETS AT BEGINNING OF PERIOD 285,738 356,299 -- 975,734 1,112,503
=============================================================================================================================
NET ASSETS AT END OF PERIOD $ 1,234,613 $ 285,738 $ 126,746 $ 1,023,967 $ 975,734
=============================================================================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME AT END OF PERIOD $ 212 $ 443 $ 5 $ -- $ --
=============================================================================================================================
</Table>
(1) See Note 4 in Notes to Financial Statements for additional information.
(2) Commencement of operations.
The accompanying notes are an integral part of the financial statements.
93
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME REALIZED GAINS
- ------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH
OPPORTUNITIES (1) (2)
Class A
2003 $ 19.16 $ -- $ 3.73 $ (0.05) $ --
2002 24.44 -- (5.23) (0.05) --
2001 (3) 43.33 (0.01) (14.00) -- (4.88)
2000 (4) 37.96 (0.15) 7.55 -- (2.03)
1999 (4) 35.72 (0.12) 6.42 (0.02) (4.04)
1998 (4) 35.27 (0.02) 5.66 (0.02) (5.17)
Class B
2003 $ 18.64 $ (0.18) $ 3.64 $ -- $ --
2002 23.94 (0.18) (5.09) (0.03) --
2001 (3) 42.80 (0.22) (13.76) -- (4.88)
2000 (4) 37.78 (0.47) 7.52 -- (2.03)
1999 (4) (5) 36.92 (0.29) 1.15 -- --
Class C
2003 $ 19.03 $ (0.18) $ 3.72 $ (0.02) $ --
2002 24.44 (0.18) (5.19) (0.04) --
2001 (6) 23.75 -- 0.69 -- --
Class S
2003 $ 19.17 $ -- $ 3.73 $ (0.05) $ --
2002 24.45 -- (5.23) (0.05) --
2001 (7) 35.53 (0.01) (11.07) -- --
Class Y
2003 $ 19.59 $ 0.07 $ 3.80 $ (0.08) $ --
2002 24.93 0.06 (5.33) (0.07) --
2001(3) 44.00 0.06 (14.25) -- (4.88)
2000(4) 38.42 (0.04) 7.65 -- (2.03)
1999(4) 36.05 (0.02) 6.47 (0.04) (4.04)
1998(4) 35.48 0.07 5.70 (0.03) (5.17)
LARGE CAP SELECT (2) (8)
Class A
2003 $ 10.00 $ 0.03 $ 1.46 $ (0.04) $ --
Class B
2003 $ 10.00 $ (0.03) $ 1.45 $ (0.01) $ --
Class C
2003 $ 10.00 $ (0.02) $ 1.45 $ (0.01) $ --
Class S
2003 $ 10.00 $ 0.03 $ 1.44 $ (0.03) $ --
Class Y
2003 $ 10.00 $ 0.05 $ 1.45 $ (0.05) $ --
- ------------------------------------------------------------------------------------------------------
</Table>
(1) The financial highlights for the Large Cap Growth Opportunities Fund as set
forth herein include the historical financial highlights of the Firstar
Large Cap Core Equity Fund. The assets of the Firstar Fund were acquired by
the First American Large Cap Growth Opportunities Fund on September 24,
2001. In connection with such acquisition, (i) Class A shares of the Firstar
Large Cap Core Fund were exchanged for Class A shares of the First American
Large Cap Growth Opportunities Fund, (ii) Firstar Class B shares were
exchanged for Class B shares of the First American Fund, (iii) Firstar Class
Y shares were exchanged for Class S shares of the First American Fund, and
(iv) Firstar Class Institutional shares were exchanged for Class Y shares of
the First American Fund.
(2) Per share data calculated using average shares outstanding.
(3) For the period November 1, 2000 to September 30, 2001. Effective in 2001,
the Fund's fiscal year end was changed from October 31 to September 30. All
ratios for the period have been annualized, except total return and
portfolio turnover.
(4) For the fiscal period ended October 31.
(5) Class of shares has been offered since March 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(6) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio turnover.
(7) Class of shares has been offered since November 27, 2000. All ratios for the
period have been annualized, except total return and portfolio turnover.
(8) Commenced operations on January 31, 2003. All ratios for the period have
been annualized, except total return and portfolio turnover.
(9) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
94
<Page>
<Table>
<Caption>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING
PERIOD RETURN (9) PERIOD (000) NET ASSETS NET ASSETS WAIVERS)
- -------------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH
OPPORTUNITIES (1) (2)
Class A
2003 $ 22.84 19.50% $ 93,331 1.15% (0.02)% 1.19%
2002 19.16 (21.46) 24,647 1.15 (0.02) 1.22
2001 (3) 24.44 (35.83) 34,330 1.20 (0.04) 1.24
2000 (4) 43.33 19.92 51,232 1.20 (0.35) 1.21
1999 (4) 37.96 17.92 47,238 1.19 (0.31) 1.20
1998 (4) 35.72 18.58 38,213 1.14 (0.05) 1.21
Class B
2003 $ 22.10 18.58% $ 37,853 1.90% (0.84)% 1.94%
2002 18.64 (22.06) 2,928 1.90 (0.75) 1.97
2001 (3) 23.94 (36.28) 2,954 1.93 (0.79) 1.97
2000 (4) 42.80 19.06 1,483 1.95 (1.10) 1.96
1999 (4) (5) 37.78 2.33 722 1.96 (1.17) 1.97
Class C
2003 $ 22.55 18.60% $ 15,365 1.90% (0.81)% 1.94%
2002 19.03 (22.03) 476 1.90 (0.73) 1.97
2001 (6) 24.44 2.95 -- -- -- --
Class S
2003 $ 22.85 19.51% $ 15,890 1.15% (0.01)% 1.19%
2002 19.17 (21.45) 2,376 1.15 -- 1.22
2001 (7) 24.45 (31.16) 2,802 1.18 (0.03) 1.22
Class Y
2003 $ 23.38 19.78% $ 1,072,174 0.90% 0.31% 0.94%
2002 19.59 (21.23) 255,311 0.90 0.24 0.97
2001(3) 24.93 (35.70) 316,213 0.94 0.20 0.98
2000(4) 44.00 20.24 339,166 0.95 (0.10) 0.96
1999(4) 38.42 18.18 306,832 0.94 (0.06) 0.95
1998(4) 36.05 18.89 197,798 0.89 0.20 0.96
LARGE CAP SELECT (2) (8)
Class A
2003 $ 11.45 14.91% $ 215 1.15% 0.42% 1.24%
Class B
2003 $ 11.41 14.18% $ 113 1.90% (0.35)% 1.99%
Class C
2003 $ 11.42 14.27% $ 26 1.90% (0.32)% 1.99%
Class S
2003 $ 11.44 14.76% $ 1 1.15% 0.39% 1.24%
Class Y
2003 $ 11.45 15.02% $ 126,391 0.90% 0.71% 0.99%
<Caption>
RATIO OF NET
INVESTMENT
NCOME (LOSS)
TO AVERAGE NET PORTFOLIO
ASSETS (EXCLUDING TURNOVER
WAIVERS) RATE
- ----------------------------------------------------------------------
LARGE CAP GROWTH
OPPORTUNITIES (1) (2)
Class A
2003 (0.06)% 83%
2002 (0.09) 43
2001 (3) (0.08) 40
2000 (4) (0.36) 60
1999 (4) (0.32) 59
1998 (4) (0.12) 52
Class B
2003 (0.88)% 83%
2002 (0.82) 43
2001 (3) (0.83) 40
2000 (4) (1.11) 60
1999 (4) (5) (1.18) 59
Class C
2003 (0.85)% 83%
2002 (0.80) 43
2001 (6) -- 40
Class S
2003 (0.05)% 83%
2002 (0.07) 43
2001 (7) (0.07) 40
Class Y
2003 0.27% 83%
2002 0.17 43
2001(3) 0.16 40
2000(4) (0.11) 60
1999(4) (0.07) 59
1998(4) 0.13 52
LARGE CAP SELECT (2) (8)
Class A
2003 0.33% 65%
Class B
2003 (0.44)% 65%
Class C
2003 (0.41)% 65%
Class S
2003 0.30% 65%
Class Y
2003 0.62% 65%
</Table>
95
<Page>
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET
OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS
- ------------------------------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Class A
2003(1) $ 12.77 $ 0.18 $ 2.20 $ (0.18) $ --
2002(1) 15.98 0.14 (3.21) (0.14) --
2001(1) 20.59 0.16 (2.67) (0.16) (1.94)
2000 23.12 0.17 0.22 (0.17) (2.75)
1999 22.39 0.19 4.44 (0.20) (3.70)
Class B
2003(1) $ 12.55 $ 0.08 $ 2.15 $ (0.08) $ --
2002(1) 15.71 0.02 (3.15) (0.03) --
2001(1) 20.30 0.02 (2.63) (0.04) (1.94)
2000 22.87 0.05 0.18 (0.05) (2.75)
1999 22.21 0.07 4.36 (0.07) (3.70)
Class C
2003(1) $ 12.70 $ 0.08 $ 2.17 $ (0.08) $ --
2002(1) 15.90 0.02 (3.19) (0.03) --
2001(1) 20.51 0.02 (2.65) (0.04) (1.94)
2000 23.09 0.06 0.17 (0.06) (2.75)
1999(2) 22.79 0.08 0.30 (0.08) --
Class S(1)
2003 $ 12.77 $ 0.18 $ 2.19 $ (0.18) $ --
2002 15.97 0.13 (3.18) (0.15) --
2001(3) 15.32 -- 0.65 -- --
Class Y
2003(1) $ 12.80 $ 0.22 $ 2.20 $ (0.21) $ --
2002(1) 16.02 0.18 (3.22) (0.18) --
2001(1) 20.64 0.21 (2.68) (0.21) (1.94)
2000 23.17 0.23 0.21 (0.22) (2.75)
1999 22.42 0.25 4.46 (0.26) (3.70)
- ------------------------------------------------------------------------------------------------------
</Table>
(1) Per share data calculated using average shares outstanding method.
(2) Class of shares has been offered since February 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(3) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(4) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
96
<Page>
<Table>
<Caption>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING
PERIOD RETURN (4) PERIOD (000) NET ASSETS NET ASSETS WAIVERS)
- -------------------------------------------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Class A
2003(1) $ 14.97 18.71% $ 88,024 1.15% 1.30% 1.20%
2002(1) 12.77 (19.37) 85,182 1.15 0.86 1.20
2001(1) 15.98 (13.72) 94,064 1.05 0.88 1.15
2000 20.59 0.92 138,146 1.05 (0.45) 1.13
1999 23.12 21.93 177,251 1.05 0.82 1.15
Class B
2003(1) $ 14.70 17.83% $ 30,987 1.90% 0.56% 1.95%
2002(1) 12.55 (19.96) 33,720 1.90 0.11 1.95
2001(1) 15.71 (14.42) 38,108 1.80 0.13 1.90
2000 20.30 0.17 49,662 1.80 (1.20) 1.88
1999 22.87 21.07 61,711 1.80 0.07 1.90
Class C
2003(1) $ 14.87 17.76% $ 6,844 1.90% 0.56% 1.95%
2002(1) 12.70 (19.97) 7,524 1.90 0.11 1.95
2001(1) 15.90 (14.36) 10,141 1.80 0.12 1.90
2000 20.51 0.17 6,551 1.80 (1.20) 1.88
1999(2) 23.09 1.65 1,398 1.80 -- 1.90
Class S(1)
2003 $ 14.96 18.63% $ 23,845 1.15% 1.30% 1.20%
2002 12.77 (19.36) 24,129 1.15 0.90 1.20
2001(3) 15.97 4.24 -- -- -- --
Class Y
2003(1) $ 15.01 19.04% $ 874,267 0.90% 1.55% 0.95%
2002(1) 12.80 (19.22) 825,179 0.90 1.11 0.95
2001(1) 16.02 (13.53) 970,190 0.80 1.13 0.90
2000 20.64 1.17 1,186,787 0.80 (0.20) 0.88
1999 23.17 22.28 1,343,207 0.80 1.07 0.90
- -------------------------------------------------------------------------------------------------------------------
<Caption>
RATIO OF NET
INVESTMENT
INCOME (LOSS)
TO AVERAGE NET PORTFOLIO
ASSETS (EXCLUDING TURNOVER
WAIVERS) RATE
- ----------------------------------------------------------------------
LARGE CAP VALUE FUND
Class A
2003(1) 1.25% 94%
2002(1) 0.81 82
2001(1) 0.78 64
2000 (0.53) 68
1999 0.72 61
Class B
2003(1) 0.51% 94%
2002(1) 0.06 82
2001(1) 0.03 64
2000 (1.28) 68
1999 (0.03) 61
Class C
2003(1) 0.51% 94%
2002(1) 0.06 82
2001(1) 0.02 64
2000 (1.28) 68
1999(2) (0.10) 61
Class S(1)
2003 1.25% 94%
2002 0.85 82
2001(3) -- 64
Class Y
2003(1) 1.50% 94%
2002(1) 1.06 82
2001(1) 1.03 64
2000 (0.28) 68
1999 0.97 61
</Table>
97
<Page>
SCHEDULE OF INVESTMENTS September 30, 2003
BALANCED FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 60.9%
CONSUMER DISCRETIONARY - 9.1%
A.C. Moore Arts & Crafts* 12,515 $ 279
Abercrombie & Fitch* 16,688 462
Advanced Auto Parts* 3,633 258
ADVO* 2,160 90
Alliance Atlantis Communications, Cl B* 16,010 259
Anchor Glass Container* 4,060 66
AnnTaylor Stores* 4,740 152
Autozone* 2,936 263
Beazer Homes USA* 1,600 135
Best Buy* 6,629 315
Black & Decker 13,138 533
CBRL Group 3,400 121
Chico's FAS* 1,991 61
Clear Channel Communications 127,743 4,893
CSK Auto* 9,200 142
D.R. Horton 1,483 48
Dollar General 25,455 509
Dollar Tree Stores* 16,670 558
Entercom Communications* 2,050 92
Fairmont Hotels & Resorts 4,908 126
Federated Department Stores 455 19
Foot Locker 7,037 114
Fortune Brands 1,284 73
Gaylord Entertainment* 9,325 229
Gray Television 13,150 154
Hancock Fabrics 10,970 173
Hearst-Argyle Television* 4,920 119
Home Depot 146,033 4,651
Integrated Alarm Services* 24,490 205
InterActiveCorp* 1,598 53
Jo-Ann Stores, Cl A* 4,400 123
Johnson Controls 178 17
Jones Apparel Group 77,250 2,312
Journal Communications* 2,380 39
Kirkland's* 12,585 202
Lear* 4,107 216
Lennar 1,978 154
Lin TV, Cl A* 7,580 161
Liz Claiborne 3,822 130
Lowe's 27,654 1,435
Mandalay Resort Group 3,173 126
Marvel Enterprises* 11,620 259
Mattel 2,572 49
MGM MIRAGE* 20,450 747
Michaels Stores 6,100 249
New York Times, Cl A 2,342 102
Newell Rubbermaid 2,992 65
O'Charley's* 4,080 61
O'Reilly Automotive* 3,200 118
Polaris Industries 1,750 130
Radio One* 15,150 218
Ruby Tuesday 5,090 123
Ryland Group 1,750 128
Sharper Image* 6,030 139
Sinclair Broadcast Group, Cl A* 16,380 166
Sports Authority* 9,180 289
Standard Pacific 5,300 201
Station Casinos 4,780 146
Target 40,058 1,507
TBC* 2,650 67
The Wet Seal, Cl A* 19,608 $ 197
Time Warner* 311,415 4,705
Viacom, Cl B 118,183 4,526
Wal-Mart Stores 126,900 7,087
Walt Disney 214,580 4,328
WCI Communities* 11,430 189
Westwood One* 3,297 100
Young Broadcasting, Cl A* 6,260 123
Yum! Brands* 52,580 1,557
-------------
47,643
-------------
CONSUMER STAPLES - 4.3%
Alberto-Culver, Cl B 549 32
Altria Group 111,819 4,898
American Italian Pasta* 4,670 181
Anheuser-Busch 28,925 1,427
Bunge Limited 10,867 299
Clorox 66,289 3,041
Coca-Cola 73,781 3,170
Dean Foods* 2,511 78
General Mills 15,291 720
Hershey Foods 24,504 1,781
PepsiCo 26,383 1,209
Performance Food Group* 4,568 186
Procter & Gamble 59,930 5,563
-------------
22,585
-------------
ENERGY - 3.5%
Apache 35,962 2,494
Baker Hughes 21,737 643
BJ Services* 31,220 1,067
Conoco, Cl B 49,535 2,712
Devon Energy 1,250 60
ENSCO International 78,566 2,107
Exxon Mobil 44,040 1,612
FMC Technologies* 4,925 105
Grant Prideco* 5,777 59
Halliburton 63,740 1,546
Massey Energy 12,900 172
Murphy Oil 1,573 92
Nabors Industries* 5,419 202
Noble* 56,734 1,928
Pioneer Natural Resources* 6,680 170
Premcor* 4,075 94
Schlumberger 59,230 2,867
Ultra Petroleum* 31,643 441
Valero Energy 1,004 38
Varco International* 17,688 299
Western Gas Resources 4,213 160
-------------
18,868
-------------
FINANCIALS - 10.3%
Allstate 111,002 4,055
Ambac Financial Group 979 63
American Express 41,560 1,873
American International Group 37,769 2,179
Amerus Group 6,380 217
Arthur J. Gallagher 1,961 55
Bank of America 18,396 1,436
Bank of Bermuda 2,900 112
Bank One 38,508 1,488
</Table>
The accompanying notes are an integral part of the financial statements.
98
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
Bear Stearns 3,892 $ 291
Boston Properties 5,128 223
Capital One Financial 12,176 695
Charter One Financial 2,380 73
Citigroup 251,507 11,446
City National 2,350 120
Commerce Bancorp 12,010 575
Compass Bancshares 2,265 78
Countrywide Credit Industries 3,598 282
Cullen/Frost Bankers 6,727 250
Developers Diversified Realty (REIT) 8,894 266
Essex Property Trust (REIT) 6,669 418
Everest Re Group 3,146 236
Fannie Mae 38,690 2,716
Federal Home Loan Mortgage 15,739 824
First Niagara Financial Group 9,600 145
First Tennessee National 3,522 150
General Growth Properties (REIT) 6,576 471
Golden West Financial 5,642 505
Goldman Sachs Group 40,988 3,439
Hudson City Bancorp 10,175 314
Investors Financial Services 19,332 607
J. P. Morgan Chase 78,300 2,688
Jefferies Group 14,000 402
John Hancock Financial Services 5,343 181
Lincoln National 19,590 693
MBNA 86,858 1,980
Merrill Lynch 51,660 2,765
National Commerce Financial 8,214 204
Platinum Underwriter Holdings 7,500 211
PMI Group 5,546 187
Prologis 6,163 186
Radian Group 24,320 1,080
RenaissanceRe Holdings 4,050 185
SAFECO 3,993 141
Simon Property Group 2,505 109
SouthTrust 9,400 276
Sovereign Bancorp 1,818 34
W.R. Berkley 7,077 242
Wachovia 96,873 3,990
Wells Fargo 17,007 876
XL Capital Limited, Cl A 23,888 1,850
-------------
53,882
-------------
HEALTH CARE - 10.8%
Abbott Laboratories 255,227 10,860
Accredo Health* 1,090 31
AdvancePCS* 1,417 65
Aetna 1,499 91
Amgen* 39,245 2,534
Anthem* 1,001 71
Bard C.R. 3,036 216
Barr Laboratories* 52 4
Biovail* 31,160 1,158
Boston Scientific* 28,700 1,831
Bristol-Myers Squibb 44,595 1,144
Cardinal Health 22,519 1,315
Caremark Rx* 44,443 1,004
Celgene* 4,126 179
Cephalon* 6,498 298
Cerner* 3,015 $ 93
Community Health Systems* 13,995 304
Covance* 10,350 232
CTI Molecular Imaging* 13,585 201
Express Scripts* 9,277 567
Fisher Scientific International* 10,145 403
Gilead Sciences* 3,156 177
HCA 40,178 1,481
Health Management Associates, Cl A 91,750 2,001
Hollis-Eden Pharmaceuticals* 6,250 152
Inveresk Research Group* 2,230 44
Johnson & Johnson 75,877 3,757
McKesson HBOC 3,559 118
Medicis, Cl A 1,950 114
Medtronic 80,101 3,758
Merck 34,127 1,728
Mid-Atlantic Medical Services* 1,725 89
Mylan Laboratories 675 26
NPS Pharmaceuticals* 6,640 185
Omnicare 9,155 330
Osteotech* 9,340 76
Pfizer 438,970 13,336
Pharmaceutical Product Development* 7,260 174
Respironics* 3,400 142
Techne* 2,490 79
Teva Pharmaceutical 1,516 87
Triad Hospitals* 12,143 368
United Surgical Partners* 4,705 133
UnitedHealth Group 17,160 863
Wellpoint Health Networks* 22,530 1,737
Wyeth 38,850 1,791
Zimmer Holdings* 23,190 1,278
-------------
56,625
-------------
INDUSTRIALS - 4.8%
3M 33,096 2,286
Albany International, Cl A 7,550 233
Alliant Techsystems* 5,330 256
Allied Waste Industries* 18,050 195
American Standard* 2,459 207
ARAMARK, Cl B* 12,491 313
Cablevision Systems* 7,260 131
Career Education* 794 36
Caterpillar 31,592 2,175
Chicago Bridge & Iron 5,000 136
Dun & Bradstreet* 4,515 188
Eaton 9,577 849
Fastenal 1,895 72
FedEx 6,872 443
General Electric 221,686 6,608
Heartland Express 5,050 121
ITT Industries 3,049 182
Kennametal 4,850 181
Mercury Computer Systems* 7,900 169
Mesa Air Group* 8,850 98
MTC Technologies* 9,720 225
Navigant Consulting* 9,550 118
Navistar International* 8,610 321
Pacer International* 3,900 78
Pitney Bowes 2,348 90
</Table>
99
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
Republic Services 26,686 $ 604
Ryder System 4,000 117
Shaw Group* 18,090 190
SPX* 13,322 603
Swift Transportation* 15,969 362
Triumph Group* 5,125 153
Tyco International 105,400 2,153
Union Pacific 12,075 702
United Defense Industries* 6,000 170
United Technologies 49,721 3,842
UNOVA* 8,330 122
URS* 3,510 68
Viad 5,638 135
Waste Connections* 6,655 234
Werner Enterprises 4,900 112
-------------
25,278
-------------
INFORMATION TECHNOLOGY - 13.7%
3Com* 12,442 73
Accenture* 29,414 657
Aeroflex* 21,550 191
Affiliated Computer Services, Cl A* 2,708 132
Agere Systems* 13,894 43
Apple Computer* 814 17
Applied Materials* 138,450 2,511
ATI Technologies* 8,850 131
ATMI* 7,293 184
Avnet* 13,420 222
BEA Systems* 7,850 95
BearingPoint* 41,040 327
Bisys Group* 1,846 24
BMC Software* 57,656 803
Borland Software* 25,320 233
Brooks Automation* 2,380 50
Business Objects* 5,982 149
CDW 6,329 365
Cabot Microelectronics* 1,350 75
Cadence Design Systems* 102,350 1,371
Ciena* 6,809 40
Cisco Systems* 127,869 2,499
Cognizant Technology Solutions* 4,150 151
Computer Associates International 98,141 2,562
Credence Systems* 22,050 254
Cymer* 726 30
Cypress Semiconductor* 5,700 101
Dell* 100,427 3,353
Diebold 2,233 113
DoubleClick* 8,518 92
EMC* 254,780 3,218
Fairchild Semiconductor International, Cl A* 17,521 290
First Data 5,850 234
Fiserv* 10,270 372
Flextronics International* 81,276 1,152
Hewlett-Packard 131,810 2,552
IBM 60,657 5,358
Inforte* 13,950 117
Integrated Circuit Systems* 274 8
Intel 440,623 12,122
Internet Security Systems* 21,700 272
Iron Mountain* 9,434 $ 339
IXYS* 8,776 82
J2 Global Communications* 2,360 89
JDS Uniphase* 14,063 51
Logitech International* 3,880 120
Micron Technology* 189,320 2,541
Microsoft 264,417 7,348
Mykrolis* 13,968 170
Nokia, ADR, Cl A 117,410 1,832
Nortel Networks* 29,301 120
Novellus Systems* 66,938 2,259
Open Text* 10,730 366
Oracle Systems* 175,612 1,970
PeopleSoft* 6,193 113
Polycom* 32,696 543
Powerwave Technologies* 9,400 62
QUALCOMM 15,749 656
Research in Motion 8,100 309
Semtech* 12,400 229
SERENA Software* 9,630 179
SunGard Data Systems* 2,156 57
Symantec* 506 32
Synopsys* 2,648 81
Take-Two Interactive Software* 10,780 368
Tech Data* 5,210 161
Texas Instruments 359,878 8,205
TIBCO Software* 46,520 249
TriZetto Group* 9,400 63
Varian Semiconductor Equipment Associates* 2,270 85
Vastera* 12,100 62
Verity* 13,140 172
Vishay Intertechnology* 9,957 174
Zoran* 5,935 116
-------------
71,746
-------------
MATERIALS - 1.6%
Agrium 161,590 2,030
Air Products and Chemicals 522 24
AptarGroup 1,973 72
Arch Coal 1,256 28
Bowater 3,075 129
Cabot 1,825 52
Dow Chemical 110,570 3,598
Lyondell Chemical 4,370 56
Methanex 14,420 135
Nucor 144 7
Phelps Dodge* 210 10
Praxair 33,532 2,077
Steel Dynamics* 3,900 59
Temple-Inland 1,255 61
-------------
8,338
-------------
TELECOMMUNICATION SERVICES - 1.2%
ALLTEL 39,632 1,837
BellSouth 27,200 644
CenturyTel 75,690 2,565
General Communication, Cl A* 14,543 121
SBC Communications 17,660 393
Verizon Communications 25,386 824
-------------
6,384
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
100
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
UTILITIES - 1.6%
Dominion Resources 28,356 $ 1,755
Entergy 1,291 70
Equitable Resources 8,056 331
Exelon 43,753 2,778
FPL Group 53,012 3,350
Kinder Morgan Fractional Shares (b)* 69,531 --
Kinder Morgan Management* 7,142 273
-------------
8,557
-------------
TOTAL COMMON STOCKS
(Cost $305,132) 319,906
-------------
CORPORATE OBLIGATIONS - 8.0%
CONSUMER DISCRETIONARY - 0.5%
Dex Media West
9.875%, 08/15/13 $ 400 448
Kraft Foods
6.250%, 06/01/12 900 987
Liberty Media
3.500%, 09/25/06 590 588
Miller Brewing
5.500%, 08/15/13 210 220
-------------
2,243
-------------
ENERGY - 0.4%
Centerpoint Energy Houston Electric
5.700%, 03/15/13 515 543
El Paso Natural Gas
7.625%, 08/01/10 500 483
Homer City Funding
8.137%, 10/01/19 300 309
Nevada Power
9.000%, 08/15/13 500 520
-------------
1,855
-------------
FINANCIALS - 2.9%
Bank of America
7.125%, 09/15/06 1,000 1,136
Boeing Capital
5.800%, 01/15/13 625 652
Bowater Canada
7.950%, 11/15/11 500 518
Boston Properties
6.250%, 01/15/13 550 593
Case New Holland
9.250%, 08/01/11 250 267
Citibank Credit Card Issuance Trust
2.700%, 01/15/08 2,500 2,540
3.100%, 03/10/10 1,250 1,253
Core Investment Grade Trust
4.727%, 11/30/07 360 377
Credit Suisse First Boston
5.875%, 08/01/06 1,500 1,638
Goldman Sachs
5.500%, 11/15/14 775 809
Household Finance
4.625%, 01/15/08 835 878
Key Bank
7.000%, 02/01/11 1,000 1,157
Morgan Stanley
5.625%, 01/20/04 500 507
5.300%, 03/01/13 355 367
SLM
5.000%, 10/01/13 650 657
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Westdeutsche Landesbank
6.050%, 01/15/09 $ 1,900 $ 2,109
-------------
15,458
-------------
HEALTH CARE - 0.0%
Medco Health Solutions Inc.
7.250%, 08/15/13 200 215
-------------
INDUSTRIALS - 0.1%
CSX
5.500%, 08/01/13 640 673
-------------
MANUFACTURING - 0.9%
Centex
7.500%, 01/15/12 450 522
DaimlerChrysler
4.750%, 01/15/08 555 568
EOP Operating LP
6.750%, 02/15/08 505 567
Ford Motor
7.450%, 07/16/31 270 248
Ford Motor Credit
5.800%, 01/12/09 1,195 1,202
General Motors Acceptance
6.125%, 08/28/07 1,370 1,446
USEC
6.625%, 01/20/06 300 283
-------------
4,836
-------------
SERVICES - 1.0%
AOL Time Warner
6.875%, 05/01/12 320 359
AT&T Broadband
8.375%, 03/15/13 890 1,105
Dayton Hudson
5.875%, 11/01/08 1,500 1,673
Duty Free International
7.000%, 01/15/04 (b) 1,825 913
Kroger
7.450%, 03/01/08 500 579
Wyeth
5.250%, 03/15/13 625 648
-------------
5,277
-------------
TELECOMMUNICATIONS - 0.1%
Deutsche Telekom International
5.250%, 07/22/13 285 289
Nextel Communications
7.375%, 08/01/15 400 403
-------------
692
-------------
TRANSPORTATION - 0.3%
Delta Airlines
7.570%, 05/18/12 265 264
Northwest Airlines
6.810%, 08/01/21 880 713
Southwest Airlines
5.100%, 11/01/07 387 410
-------------
1,387
-------------
UTILITIES - 1.7%
American Electric Power
5.250%, 06/01/15 290 284
AT&T
6.500%, 11/15/06 1,240 1,398
</Table>
101
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
AT&T Wireless Services
7.875%, 03/01/11 $ 690 $ 806
CE Generation
7.416%, 12/15/18 869 859
Conectiv
6.730%, 06/01/06 90 97
FirstEnergy
6.450%, 11/15/11 150 155
FPL Group Capital
7.625%, 09/15/06 150 171
France Telecom
8.250%, 03/01/11 150 184
8.250%, 03/01/11 545 667
GTE South
6.125%, 06/15/07 1,000 1,109
Kinder Morgan Energy Partners
7.300%, 08/15/33 380 437
MidAmerican Energy Holdings
5.875%, 10/01/12 480 507
Northern State Power Company
8.000%, 08/28/12 435 535
Progress Energy
6.850%, 04/15/12 425 473
Sprint Capital
6.875%, 11/15/28 1,125 1,097
-------------
8,779
-------------
CONVERTIBLE CORPORATE BONDS - 0.1%
Ciena
3.750%, 02/01/08 120 101
Corning
Zero Coupon Bond, 11/08/15 260 197
-------------
298
-------------
TOTAL CORPORATE OBLIGATIONS
(Cost $40,823) 41,713
-------------
U.S. GOVERNMENT & AGENCY SECURITIES - 7.9%
GOVERNMENT AGENCY - 2.2%
FHLB
6.250%, 08/13/04 2,000 2,088
5.375%, 05/15/06 1,500 1,628
FHLMC
5.950%, 01/19/06 1,000 1,092
3.250%, 02/25/08 2,000 2,015
FNMA
5.125%, 02/13/04 1,000 1,015
6.500%, 08/15/04 500 523
7.125%, 02/15/05 250 270
7.125%, 03/15/07 965 1,112
5.250%, 08/01/12 1,750 1,826
-------------
11,569
-------------
U.S. TREASURIES - 5.7%
U.S Treasury Bonds
7.125%, 02/15/23 1,985 2,543
6.250%, 08/15/23 535 625
6.125%, 11/15/27 1,270 1,471
5.250%, 11/15/28 4,000 4,143
5.250%, 02/15/29 2,000 2,073
5.375%, 02/15/31 2,590 2,779
U.S. Treasury Bills
0.890%, 01/22/04 (c) 112 112
0.970%, 03/11/04 (c) 2,000 1,991
U.S. Treasury Notes
1.500%, 07/31/05 $ 1,270 $ 1,273
2.000%, 08/31/05 5,110 5,165
2.375%, 08/15/06 3,070 3,112
3.250%, 08/15/08 1,720 1,756
4.250%, 08/15/13 3,025 3,100
-------------
30,143
-------------
TOTAL U.S. GOVERNMENT & AGENCY SECURITIES
(Cost $40,952) 41,712
-------------
MORTGAGE-BACKED OBLIGATIONS - 17.5%
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES - 14.8%
FHLMC Pool
6.500%, 04/01/08, #E00225 61 64
7.000%, 04/01/08, #E46044 23 25
3.500%, 04/01/08, #000000 1,200 1,208
4.000%, 10/01/10, #000TBA 1,375 1,379
5.625%, 03/15/11, #000000 1,750 1,936
5.750%, 01/15/12, #000000 1,750 1,941
5.500%, 03/01/13, #E00546 359 375
8.600%, 01/15/21, #000085 211 221
6.000%, 09/15/21, #001136 217 223
6.500%, 11/01/28, #C00676 1,650 1,728
6.500%, 12/01/28, #C00689 798 834
7.000%, 12/01/29, #G01091 451 476
6.000%, 05/01/32, #C01361 301 310
5.000%, 09/01/33, #C01622 2,125 2,120
FNMA Pool
6.500%, 01/01/06, #649874 1,868 1,946
5.500%, 03/01/06, #424411 346 353
1.750%, 06/16/06, #000000 2,000 1,971
6.375%, 06/15/09, #00FNMA 3,500 4,025
4.375%, 09/15/12, #31359M 1,750 1,760
3.790%, 07/01/13, #386314 1,444 1,376
6.000%, 09/01/17, #653368 3,213 3,352
6.198%, 04/01/18, #070009 97 99
4.500%, 05/01/18, #254720 1,874 1,889
5.000%, 05/01/18, #697019 3,143 3,223
5.000%, 07/01/18, #555621 2,342 2,402
8.800%, 01/25/19, #1989-2 14 15
8.000%, 07/25/19, #198937 209 225
9.500%, 06/25/20, #199063 60 68
6.000%, 10/01/22, #254513 1,367 1,424
3.648%, 08/01/27, #555840 2,000 2,073
7.000%, 04/01/29, #323681 372 394
6.000%, 05/01/29, #323715 1,173 1,215
6.500%, 05/01/32, #640032 1,990 2,073
6.500%, 06/01/32, #647471 1,880 1,959
7.000%, 07/01/32, #545815 1,022 1,079
6.500%, 08/01/32, #656871 2,435 2,537
6.500%, 08/01/32, #658822 1,296 1,350
6.000%, 10/01/32, #661581 3,375 3,484
6.500%, 12/01/32, #669168 1,562 1,627
6.000%, 01/01/33, #676647 2,381 2,456
5.500%, 03/01/33, #689109 2,941 3,001
5.500%, 04/01/33, #694605 2,077 2,119
5.500%, 06/01/33, #709203 979 999
5.500%, 06/01/33, #709033 2,000 2,041
5.500%, 07/01/33, #720735 991 1,011
5.500%, 07/01/33, #728667 997 1,018
4.500%, 08/01/33, #555680 1,400 1,356
5.500%, 08/01/33, #728855 1,497 1,528
5.500%, 08/01/33, #733380 1,997 2,038
6.000%, 10/01/33, #000TBA 2,000 2,065
</Table>
The accompanying notes are an integral part of the financial statements.
102
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
GNMA Pool
6.500%, 10/20/10, #002108 $ 86 $ 92
6.500%, 06/17/20, #000518 21 21
7.500%, 06/15/27, #447728 53 57
7.500%, 09/15/27, #455516 41 44
7.000%, 04/15/29, #506639 689 732
6.000%, 06/15/33, #00GNMA 2,066 2,145
-------------
77,482
-------------
CMO MORTGAGE-BACKED OBLIGATIONS - 0.3%
FNMA REMIC Series 1993-210, Cl PL
6.500%, 04/25/23 750 824
FNMA REMIC, Series 1996-21 Cl PK
6.000%, 02/25/11 333 356
FNMA Series 1990-105, Cl J
6.500%, 09/25/20 170 180
FNMA Series 1990-30, Cl E
6.500%, 03/25/20 135 142
FNMA Series 1990-89, Cl K
6.500%, 07/25/20 13 14
-------------
1,516
-------------
RESIDENTIAL - 2.4%
Countrywide Home Loans, Series K
4.250%, 12/19/07 1,135 1,171
Contimortgage
7.120%, 08/15/28 224 229
Merrill Lynch Mortgage Investors
6.310%, 11/15/26 627 665
Structured Asset Securities
5.500%, 09/01/33 2,000 2,015
Wachovia Bank Commercial Mortgage
6.287%, 04/15/34 2,375 2,681
WAMU Mortgage
5.000%, 10/25/18 1,500 1,515
Wells Fargo Mortgage Backed Securities
4.500%, 09/25/18 1,078 1,076
4.931%, 02/25/33 1,456 1,485
Westam Mortgage Financial Series 11, Cl A
6.360%, 08/29/20 5 5
WFS Financial Owner Trust
1.760%, 01/20/0 2,000 1,999
-------------
12,841
-------------
TOTAL MORTGAGE-BACKED OBLIGATIONS
(Cost $90,385) 91,839
-------------
ASSET-BACKED SECURITIES - 1.9%
AUTOMOBILES - 1.4%
Americredit Auto Receivable
1.550%, 11/06/06 970 971
Capital Auto Receivables Asset Trust
2.270%, 01/15/06 1,500 1,513
Nissan Auto Receivables Trust
1.510%, 08/15/07 1,350 1,346
Union Acceptance 98-B-A5
6.020%, 01/09/06 1,299 1,301
USAA Auto Loan Grantor Trust
2.040%, 02/15/10 2,000 2,009
-------------
7,140
-------------
COMMERCIAL - 0.5%
Nomura Asset Securities, Series 1998-D6, Cl A1B
6.590%, 03/15/30 2,500 2,820
-------------
TOTAL ASSET-BACKED SECURITIES
(Cost $9,887) 9,960
-------------
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY BACKED OBLIGATIONS - 0.5%
INTERNATIONAL/YANKEE - 0.5%
Midland Bank
6.950%, 03/15/11 $ 950 $ 1,114
Newcourt Credit Group
6.875%, 02/16/05 1,000 1,070
Noranda
6.000%, 10/15/15 410 415
-------------
TOTAL U.S. GOVERNMENT AGENCY BACKED OBLIGATIONS
(Cost $2,316) 2,599
-------------
SHORT-TERM INVESTMENTS - 3.4%
MONEY MARKET FUNDS - 3.4%
SHORT TERM MONEY MARKET FUND - 0.2%
Lindner Government Money Market Fund 850,000 850
-------------
RELATED PARTY MONEY MARKET FUND - 3.2%
First American Prime Obligations Fund, Cl Z (a) 17,143,422 17,144
-------------
TOTAL MONEY MARKET FUNDS
(Cost $17,994) 17,994
-------------
INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 36.3%
COMMERCIAL PAPER - 3.8%
Bluegrass
1.190%, 05/18/04 739 739
CS First Boston
1.415%, 10/01/03 2,955 2,955
Danske Bank
1.508%, 12/22/03 2,955 2,955
Independent IV
1.216%, 04/15/04 1,920 1,920
K2 USA
1.020%, 12/01/03 1,474 1,474
Leafs
1.339%, 04/20/04 2,039 2,039
Mitten Mortgage
1.130%, 10/08/03 2,068 2,068
Mortgage Interest Network
1.100%, 10/15/03 738 738
1.130%, 12/02/03 1,475 1,475
Orchard Park
1.245%, 04/06/04 295 295
1.220%, 07/06/04 3,278 3,278
-------------
TOTAL COMMERCIAL PAPER 19,936
-------------
CORPORATE OBLIGATIONS - 8.2%
Allstate Life Global
1.092%, 08/16/04 2,955 2,955
Bank of Scotland
1.100%, 03/05/04 1,477 1,477
Castle Hill III
1.176%, 09/16/04 886 886
Deutsche Bank
1.430%, 12/31/03 1,182 1,182
1.340%, 03/22/04 1,477 1,477
General Electric Capital Corporation
1.150%, 07/09/07 1,478 1,478
Halogen Fund
1.150%, 10/03/03 6,145 6,145
Lloyd's Bank
1.100%, 03/05/04 2,955 2,955
Metlife Global Funding
1.130%, 09/15/04 1,772 1,772
1.147%, 04/28/08 1,241 1,241
</Table>
103
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Monet Trust
1.210%, 12/28/03 $ 2,955 $ 2,955
Residential Mortgage Securities
1.140%, 09/11/04 2,216 2,216
Sigma Finance
1.268%, 08/09/04 2,954 2,954
SMM Trust 2002-M
1.140%, 09/23/04 4,949 4,949
Svenska Handlsbankn
1.100%, 03/03/04 2,954 2,954
1.100%, 03/15/04 532 532
Wells Fargo Bank
1.050%, 10/17/03 2,955 2,955
1.060%, 10/31/03 2,068 2,068
-------------
TOTAL CORPORATE OBLIGATIONS 43,151
-------------
MONEY MARKET FUNDS - 0.1%
AIM Short Term Liquid Asset Portfolio 118,184 118
Merrill Lynch Premier Institutional Fund 387,155 387
-------------
TOTAL MONEY MARKET FUNDS 505
-------------
OTHER SHORT-TERM INVESTMENTS - 3.1%
Commonwealth Life
1.430%, 10/01/03 1,492 1,492
General Electric Capital Assurance
1.370%, 12/19/03 591 591
Liquid Funding
1.130%, 8/23/04 1,477 1,477
1.130%, 9/14/04 1,477 1,477
Premium Asset Trust 02-7
0.110%, 06/01/04 4,402 4,402
Security Life Denver
1.381%, 01/13/04 3,841 3,841
1.490%, 03/15/04 2,955 2,955
-------------
TOTAL OTHER SHORT-TERM INVESTMENTS 16,235
-------------
REPURCHASE AGREEMENTS - 21.1%
Bear Stearns
1.240%, dated 9/30/03, matures 10/1/03,
repurchase price $5,912,233 (collateralized
by various securities:
Total Market Value $6,030,075) 5,909 5,909
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $7,386,709 (collateralized
by U.S. Government Securities:
Total Market Value $7,534,274) 7,386 7,386
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $915,952 (collateralized
by U.S. Government Securities:
Total Market Value $934,253) 916 916
CS First Boston
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $2,363,754 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $2,481,931) 2,364 2,364
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $1,477,339 (collateralized
by U.S. Government Securities:
Total Market Value $1,506,841) 1,477 1,477
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $5,909,357 (collateralized
by U.S. Government Securities:
Total Market Value $6,027,364) 5,909 5,909
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Deutsche Bank
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $11,818,770 (collateralized
by Corporate Securities:
Total Market Value $12,409,278) $ 11,818 $ 11,818
Goldman Sachs
1.268%, dated 9/30/03, matures 10/1/03,
repurchase price $4,432,041 (collateralized
by Corporate Securities:
Total Market Value $4,652,519) 4,432 4,432
Goldman Sachs
1.330%, dated 9/30/03, matures 10/1/03,
repurchase price $2,954,699 (collateralized
by various securities:
Total Market Value $3,045,976) 2,955 2,955
Goldman Sachs
1.380%, dated 9/30/03, matures 10/1/03,
repurchase price $1,477,352 (collateralized
by various securities:
Total Market Value $1,507,469) 1,477 1,477
Lehman Brothers
1.120%, dated 9/30/03, matures 10/1/03,
repurchase price $8,125,375 (collateralized
by U.S. Government Securities:
Total Market Value $8,287,649) 8,125 8,125
Lehman Brothers
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $2,954,683 (collateralized
by U.S. Government Securities:
Total Market Value $3,013,789) 2,955 2,955
Lehman Brothers
1.388%, dated 9/30/03, matures 10/1/03,
repurchase price $5,909,408 (collateralized
by various securities:
Total Market Value $5,987,969) 5,909 5,909
Lehman Brothers
1.150%, dated 9/30/03, matures 10/1/03,
repurchase price $1,684,170 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $1,781,816) 1,684 1,684
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $8,864,043 (collateralized
by U.S. Government Securities:
Total Market Value $9,041,167) 8,864 8,864
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $266,755 (collateralized
by U.S. Government Securities:
Total Market Value $272,185) 267 267
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $738,670 (collateralized
by U.S. Government Securities:
Total Market Value $753,463) 739 739
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $1,772,809 (collateralized
by U.S. Government Securities:
Total Market Value $1,808,298) 1,773 1,773
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $5,909,362 (collateralized
by U.S. Government Securities:
Total Market Value $6,027,446) 5,909 5,909
</Table>
The accompanying notes are an integral part of the financial statements.
104
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $7,386,703 (collateralized
by U.S. Government Securities:
Total Market Value $7,534,278) $ 7,386 $ 7,386
Merrill Lynch
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $5,909,366 (collateralized
by U.S. Government Securities:
Total Market Value $6,027,566) 5,909 5,909
Merrill Lynch
1.308%, dated 9/30/03, matures 10/1/03,
repurchase price $5,909,395 (collateralized
by Corporate Securities:
Total Market Value $6,204,651) 5,909 5,909
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $1,565,987 (collateralized
by Asset-Backed securities:
Total Market Value $1,644,229) 1,566 1,566
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $9,189,096 (collateralized
by Collateralized Mortgage Obligations
& Asset-Backed securities:
Total Market Value $9,650,331) 9,189 9,189
-------------
TOTAL REPURCHASE AGREEMENTS 110,827
-------------
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING
(Cost $190,654) 190,654
-------------
TOTAL INVESTMENTS - 136.4%
(Cost $698,143) 716,377
-------------
OTHER ASSETS AND LIABILITIES, NET - (36.4)% (191,256)
-------------
TOTAL NET ASSETS - 100.0% $ 525,121
-------------
</Table>
* Non-income producing security
(a) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to
Financial Statements.
(b) Security is fair valued. As of September 30, 2003, the market value of
these investments is $912,500 or 0.2% of total net assets. See note 2 in
Notes to Financial Statements.
(c) Security has been deposited as initial margin on open futures contracts.
Yield shown is effective yield at date of purchase. See note 2 in Notes to
Financial Statements.
ADR - American Depositary Receipt
Cl - Class
CMO - Collateralized Mortgage Obligation
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
REIT - Real Estate Investment Trust
REMIC - Real Estate Mortgage Investment Conduit
105
<Page>
SCHEDULE OF INVESTMENTS September 30, 2003
EQUITY INCOME FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 92.6%
CONSUMER DISCRETIONARY - 8.8%
Gannett 186,100 $ 14,434
Home Depot 448,160 14,274
McDonald's 530,250 12,482
Newell Rubbermaid 428,990 9,296
Omnicom Group 102,000 7,329
Starwood Hotels & Resorts Worldwide 497,150 17,301
Target 487,200 18,333
Wal-Mart Stores 537,030 29,993
Walt Disney 353,700 7,134
-------------
130,576
-------------
CONSUMER STAPLES - 7.0%
Altria Group 414,790 18,168
Anheuser-Busch 255,010 12,582
Coca-Cola 447,220 19,213
General Mills 331,150 15,587
PepsiCo 293,620 13,457
Procter & Gamble 140,920 13,080
Sara Lee 583,300 10,709
-------------
102,796
-------------
ENERGY - 6.7%
Baker Hughes 226,550 6,704
BP, ADR 170,346 7,172
ChevronTexaco 197,150 14,086
Conoco, Cl B 134,600 7,369
Exxon Mobil 973,482 35,629
Kerr-McGee 233,100 10,406
Royal Dutch Petroleum, ADR 155,800 6,886
Schlumberger 239,100 11,572
-------------
99,824
-------------
FINANCIALS - 25.6%
Alliance Capital Management 419,300 14,042
AMB Property (REIT) 319,350 9,839
American Express 271,620 12,239
American International Group 233,750 13,487
Archstone-Smith Trust (REIT) 164,900 4,350
Bank of America 391,734 30,571
Bank One 280,750 10,851
Camden Property Trust (REIT) 56,900 2,187
Chubb 230,500 14,955
Citigroup 956,071 43,511
Crescent Real Estate (REIT) 101,700 1,475
Duke Realty (REIT) 195,172 5,699
Equity Residential Properties Trust (REIT) 57,900 1,695
Fannie Mae 263,210 18,477
Federal Home Loan Mortgage 211,600 11,077
Goldman Sachs Group 82,450 6,918
Hartford Financial Services Group 270,410 14,232
Healthcare Realty Trust (REIT) 115,700 3,700
J. P. Morgan Chase 527,750 18,118
Kimco Realty (REIT) 47,400 1,942
Legg Mason 112,925 8,153
Manufactured Home Communities (REIT) 122,550 4,802
Marsh & McLennan 268,150 12,767
Mellon Financial 459,950 13,863
Merrill Lynch 272,370 14,580
Morgan Stanley 226,500 11,429
Northern Trust 189,225 $ 8,031
Simon Property Group (REIT) 137,200 5,979
SouthTrust 478,450 14,062
Wachovia 363,800 14,985
Wells Fargo 285,860 14,722
Zions Bancorporation 290,750 16,238
-------------
378,976
-------------
HEALTH CARE - 9.9%
Abbott Laboratories 322,570 13,725
Baxter International 593,180 17,238
Bristol-Myers Squibb 410,100 10,523
Cigna 191,800 8,564
HCA 230,450 8,494
Johnson & Johnson 205,390 10,171
McKesson HBOC 395,550 13,168
Pfizer 1,307,312 39,716
Schering-Plough 709,810 10,818
Wyeth 311,430 14,357
-------------
146,774
-------------
INDUSTRIALS - 11.3%
3M 279,600 19,312
Avery Dennison 166,554 8,414
Caterpillar 424,050 29,192
Emerson Electric 257,300 13,547
General Dynamics 177,980 13,893
General Electric 961,350 28,658
Grainger (W.W) 223,650 10,635
Honeywell International 647,330 17,057
Ingersoll-Rand, Cl A 239,850 12,818
Knightsbridge Tanker 100,750 922
United Parcel Service 206,690 13,187
-------------
167,635
-------------
INFORMATION TECHNOLOGY - 11.1%
Automatic Data Processing 287,560 10,309
Hewlett-Packard 853,605 16,526
IBM 357,720 31,597
Intel 1,175,150 32,328
Microsoft 1,995,210 55,447
SAP 345,800 10,516
Texas Instruments 364,000 8,299
-------------
165,022
-------------
MATERIALS - 4.9%
Alcoa 235,550 6,162
Dow Chemical 228,650 7,440
E.I. du Pont de Nemours 331,330 13,257
Ecolab 245,440 6,197
Praxair 318,850 19,753
Temple-Inland 160,050 7,770
Weyerhaeuser 193,759 11,325
-------------
71,904
-------------
TELECOMMUNICATION SERVICES - 3.9%
ALLTEL 160,100 7,419
BellSouth 555,750 13,160
SBC Communications 777,000 17,288
Verizon Communications 601,360 19,508
-------------
57,375
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
106
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
UTILITIES - 3.4%
Cinergy 449,250 $ 16,488
CLECO 635,750 10,388
Duke Energy 486,200 8,659
Pinnacle West 422,350 14,993
-------------
50,528
-------------
TOTAL COMMON STOCKS
(Cost $1,248,012) 1,371,410
-------------
CORPORATE BONDS - 0.7%
Nortel Networks
6.125%, 02/15/06 $ 10,604 10,657
-------------
TOTAL CORPORATE BONDS
(Cost $8,427) 10,657
-------------
CONVERTIBLE CORPORATE BONDS - 2.5%
Adelphia Communications
6.000%, 02/15/06 5,800 1,972
Charter Communications
5.750%, 10/15/05 9,520 8,546
Interpublic Group
1.800%, 09/16/04 3,770 3,617
Protein Design Labs
5.500%, 02/15/07 1,928 1,989
Tower Automotive
5.000%, 08/01/04 3,855 3,797
Tribune
2.000%, 05/15/29 218 17,646
-------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $39,210) 37,567
-------------
SHORT-TERM INVESTMENTS - 4.5%
RELATED PARTY MONEY MARKET FUND - 4.5%
First American Prime Obligations Fund, Cl Z (a) 66,453,211 66,453
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $66,453) 66,453
-------------
INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 27.9%
COMMERCIAL PAPER - 2.9%
Bluegrass
1.190%, 05/18/04 1,599 1,599
CS First Boston
1.415, 10/01/03 6,396 6,396
Danske Bank
1.508%, 12/22/03 6,396 6,396
Independent IV
1.216%, 04/15/04 4,157 4,157
K2 USA
1.020%, 12/01/03 3,192 3,192
Leafs
1.339%, 04/20/04 4,413 4,413
Mitten Mortgage
1.130%, 10/08/03 4,476 4,476
Mortgage Interest Network
1.100%, 10/15/03 1,598 1,598
1.130%, 12/02/03 3,192 3,192
Orchard Park
1.245%, 04/06/04 640 640
1.220%, 07/06/04 7,096 7,096
-------------
TOTAL COMMERCIAL PAPER 43,155
-------------
CORPORATE OBLIGATIONS - 6.3%
Allstate Life Global
1.092%, 08/16/04 6,396 6,396
Bank of Scotland
1.100%, 03/05/04 $ 3,192 $ 3,192
Castle Hill III
1.176%, 09/16/04 1,919 1,919
Deutsche Bank
1.430%, 12/31/03 2,558 2,558
1.340%, 03/22/04 3,198 3,198
General Electric Capital Corporation
1.150%, 07/09/07 3,199 3,199
Halogen Fund
1.150%, 10/03/03 13,303 13,303
Lloyd's Bank
1.100%, 03/05/04 6,396 6,396
Metlife Global Funding
1.130%, 09/15/04 3,837 3,837
1.147%, 04/28/08 2,687 2,687
Monet Trust
1.210%, 12/28/03 6,396 6,396
Residential Mortgage Securities
1.140%, 09/11/04 4,797 4,797
Sigma Finance
1.268%, 08/09/04 6,395 6,395
SMM Trust 2002-M
1.140%, 09/23/04 10,713 10,713
Svenska Handlsbankn
1.100%, 03/03/04 6,396 6,396
1.100%, 03/15/04 1,151 1,151
Wells Fargo Bank
1.050%, 10/17/03 6,396 6,396
1.060%, 10/31/03 4,477 4,477
-------------
TOTAL CORPORATE OBLIGATIONS 93,406
-------------
MONEY MARKET FUNDS - 0.1%
AIM Short Term Liquid Asset Portfolio 255,836 256
Merrill Lynch Premier Institutional Fund 838,089 838
-------------
TOTAL MONEY MARKET FUNDS 1,094
-------------
OTHER SHORT-TERM INVESTMENTS - 2.4%
Commonwealth Life
1.430%, 11/01/03 3,229 3,229
General Electric Capital Assurance
1.370%, 12/19/03 1,279 1,279
Liquid Funding
1.130%, 8/23/04 3,198 3,198
1.130%, 9/14/04 3,197 3,197
Premium Asset Trust 02-7
0.110%, 06/01/04 9,530 9,530
Security Life Denver
1.381%, 01/13/04 8,315 8,315
1.490%, 03/15/04 6,396 6,396
-------------
TOTAL OTHER SHORT-TERM INVESTMENTS 35,144
-------------
REPURCHASE AGREEMENTS - 16.2%
Bear Stearns
1.240%, dated 9/30/03, matures 10/1/03,
repurchase price $12,798,439 (collateralized
by various securities:
Total Market Value $13,053,535) 12,792 12,792
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $15,990,294 (collateralized
by U.S. Government Securities:
Total Market Value $16,309,734) 15,990 15,990
</Table>
107
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
CS First Boston
1.140%, dated 9/30/03, matures 10/1/03,
repurchase price $1,982,796 (collateralized
by U.S. Government Securities:
Total Market Value $2,022,414) $ 1,983 $ 1,983
CS First Boston
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $5,116,909 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $5,372,731) 5,117 5,117
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $3,198,053 (collateralized
by U.S. Government Securities:
Total Market Value $3,261,917) 3,198 3,198
Deutsche Bank
1.080%, dated 9/30/03, matures 10/1/03,
repurchase price $12,792,214 (collateralized
by U.S. Government Securities:
Total Market Value $13,047,667) 12,792 12,792
Deutsche Bank
1.248%, dated 9/30/03, matures 10/1/03,
repurchase price $25,584,547 (collateralized
by Corporate Securities:
Total Market Value $26,862,843) 25,584 25,584
Goldman Sachs
1.268%, dated 9/30/03, matures 10/1/03,
repurchase price $9,594,210 (collateralized
by Corporate Securities:
Total Market Value $10,071,488) 9,594 9,594
Goldman Sachs
1.330%, dated 9/30/03, matures 10/1/03,
repurchase price $6,396,151 (collateralized
by various securities:
Total Market Value $6,593,741) 6,396 6,396
Goldman Sachs
1.380%, dated 9/30/03, matures 10/1/03,
repurchase price $3,198,080 (collateralized
by various securities:
Total Market Value $3,263,277) 3,198 3,198
Lehman Brothers
1.120%, dated 9/30/03, matures 10/1/03,
repurchase price $17,589,313 (collateralized
by U.S. Government Securities:
Total Market Value $17,940,592) 17,589 17,589
Lehman Brothers
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $6,396,116 (collateralized
by U.S. Government Securities:
Total Market Value $6,524,066) 6,396 6,396
Lehman Brothers
1.388%, dated 9/30/03, matures 10/1/03,
repurchase price $12,792,323 (collateralized
by various securities:
Total Market Value $12,962,388) 12,792 12,792
Lehman Brothers
1.150%, dated 9/30/03, matures 10/1/03,
repurchase price $3,645,788 (collateralized
by Collateralized Mortgage Obligations:
Total Market Value $3,857,165) 3,646 3,646
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $19,188,337 (collateralized
by U.S. Government Securities:
Total Market Value $19,571,764) 19,188 19,188
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $577,454 (collateralized
by U.S. Government Securities:
Total Market Value $589,209) $ 578 $ 578
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $1,599,028 (collateralized
by U.S. Government Securities:
Total Market Value $1,631,051) 1,598 1,598
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $3,837,667 (collateralized
by U.S. Government Securities:
Total Market Value $3,914,491) 3,838 3,838
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $12,792,224 (collateralized
by U.S. Government Securities:
Total Market Value $13,047,846) 12,792 12,792
Merrill Lynch
1.110%, dated 9/30/03, matures 10/1/03,
repurchase price $15,990,281 (collateralized
by U.S. Government Securities:
Total Market Value $16,309,742) 15,990 15,990
Merrill Lynch
1.130%, dated 9/30/03, matures 10/1/03,
repurchase price $12,792,232 (collateralized
by U.S. Government Securities:
Total Market Value $13,048,104) 12,792 12,792
Merrill Lynch
1.308%, dated 9/30/03, matures 10/1/03,
repurchase price $12,792,295 (collateralized
by Corporate Securities:
Total Market Value $13,431,447) 12,792 12,792
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $3,389,953 (collateralized
by Asset-Backed securities:
Total Market Value $3,559,327) 3,390 3,390
Morgan Stanley
1.258%, dated 9/30/03, matures 10/1/03,
repurchase price $19,891,990 (collateralized
by Collateralized Mortgage Obligations
& Asset-Backed securities:
Total Market Value $20,890,443) 19,891 19,891
-------------
TOTAL REPURCHASE AGREEMENTS 239,916
-------------
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING
(Cost $412,715) 412,715
-------------
TOTAL INVESTMENTS - 128.2%
(Cost $1,774,817) 1,898,802
-------------
OTHER ASSETS AND LIABILITIES, NET - (28.2)% (417,338)
-------------
TOTAL NET ASSETS - 100.0% $ 1,481,464
-------------
</Table>
(a) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to
Financial Statements.
ADR - American Depositary Receipt
Cl - Class
REIT - Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
108
<Page>
STATEMENTS OF ASSETS AND LIABILITIES September 30, 2003, in thousands, except
per share data
<Table>
<Caption>
BALANCED EQUITY
FUND INCOME FUND
- --------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated securities, at value*+ $ 699,233 $ 1,832,349
Investments in affiliated securities, at value** 17,144 66,453
Dividends and interest receivable 1,692 2,153
Receivable for investment securities sold 13,185 --
Capital shares sold 425 1,821
Prepaid expenses and other assets 20 34
- --------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 731,699 1,902,810
====================================================================================================================
LIABILITIES:
Written options, at value 74 --
Payable for investment securities purchased 10,729 --
Payable upon return of securities loaned 190,654 412,715
Capital shares redeemed 3,789 7,477
Payable for advisory, co-administration, and custodian fees 209 1,083
Variation margin payable 168 --
Distribution and shareholder servicing fees 59 69
Bank overdraft 895 --
Accrued expenses and other liabilities 1 2
- --------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 206,578 421,346
====================================================================================================================
NET ASSETS $ 525,121 $ 1,481,464
====================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 578,753 $ 1,407,522
Undistributed net investment income 338 488
Accumulated net realized loss on investments (71,862) (50,531)
Net unrealized appreciation of investments 18,234 123,985
Net unrealized depreciation of futures contracts (314) --
Net unrealized depreciation of options written (28) --
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 525,121 $ 1,481,464
====================================================================================================================
* Investments in unaffiliated securities, at cost $ 680,999 $ 1,706,364
** Investments in affiliated securities, at cost $ 17,144 $ 66,453
+ Including securities loaned, at value $ 182,475 $ 386,627
CLASS A:
Net assets $ 98,016 $ 144,282
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 10,346 12,480
Net asset value and redemption price per share $ 9.47 $ 11.56
Maximum offering price per share (1) $ 10.02 $ 12.23
CLASS B:
Net assets $ 33,015 $ 22,156
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 3,510 1,928
Net asset value, offering price, and redemption price per share (2) $ 9.41 $ 11.49
CLASS C:
Net assets $ 7,089 $ 19,386
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 751 1,685
Net asset value and redemption price per share (2) $ 9.44 $ 11.51
Maximum offering price per share (3) $ 9.54 $ 11.63
CLASS S:
Net assets $ 23,844 $ 17,170
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 2,513 1,485
Net asset value, offering price, and redemption price per share $ 9.49 $ 11.56
CLASS Y:
Net assets $ 363,157 $ 1,278,470
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 38,235 109,920
Net asset value, offering price, and redemption price per share $ 9.50 $ 11.63
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.50%
(2) Class B and C have a contingent deferred sales charge. For a description of
this sales charge, see notes 1 and 3 in Notes to Financial Statements.
(3) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%
The accompanying notes are an integral part of the financial statements.
109
<Page>
STATEMENTS OF OPERATIONS For the period ended September 30, 2003, in thousands
<Table>
<Caption>
BALANCED EQUITY
FUND INCOME FUND
- --------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest from unaffiliated securities $ 9,916 $ 3,682
Interest from affiliated securities 214 475
Dividends 4,242 32,404
Less: Foreign taxes withheld (1) (129)
Securities lending 144 264
Other income 190 126
- --------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 14,705 36,822
====================================================================================================================
EXPENSES:
Investment advisory fees 3,416 8,449
Co-administration fees and expenses (including per account transfer agency fees) 1,455 3,556
Custodian fees 53 130
Directors' fees 9 19
Registration fees 30 26
Professional fees 159 47
Printing 20 55
Other 14 29
Distribution and shareholder servicing fees - Class A 246 339
Distribution and shareholder servicing fees - Class B 342 199
Distribution and shareholder servicing fees - Class C 67 171
Shareholder servicing fees - Class S 70 55
- --------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 5,881 13,075
====================================================================================================================
Less: Fee waivers (950) (613)
- --------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 4,931 12,462
====================================================================================================================
INVESTMENT INCOME - NET 9,774 24,360
====================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FUTURES CONTRACTS, AND WRITTEN OPTIONS - NET:
Net realized gain (loss) on investments 8,549 (1,648)
Net realized gain on futures contracts 2,849 --
Net change in unrealized appreciation
or depreciation of investments 49,930 219,694
Net change in unrealized appreciation or depreciation of futures contracts (314) --
Net change in unrealized appreciation or depreciation of written options (28) --
- --------------------------------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 60,986 218,046
- --------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 70,760 $ 242,406
====================================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
110
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
BALANCED FUND EQUITY INCOME FUND
- -----------------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 10/1/02 10/1/01
TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02
- -----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income - net $ 9,774 $ 12,387 $ 24,360 $ 10,526
Net realized gain (loss) on investments 8,549 (34,657) (1,648) (23,793)
Net realized gain on futures contracts 2,849 -- -- --
Net change in unrealized appreciation or depreciation of investments 49,930 (27,073) 219,694 (243,559)
Net change in unrealized appreciation or depreciation of futures contracts (314) -- -- --
Net change in unrealized appreciation or depreciation of written options (28) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 70,760 (49,343) 242,406 (256,826)
===================================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (1,700) (2,574) (2,199) (1,100)
Class B (345) (616) (180) (139)
Class C (74) (35) (163) (106)
Class S (501) (831) (370) (232)
Class Y (7,143) (8,345) (20,336) (8,862)
Net realized gain on investments:
Class A -- -- -- (93)
Class B -- -- -- (43)
Class C -- -- -- (34)
Class S -- -- -- (1)
Class Y -- -- -- (1,077)
Tax return of capital:
Class A -- -- (188) --
Class B -- -- (29) --
Class C -- -- (25) --
Class S -- -- (22) --
Class Y -- -- (1,666) --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions (9,763) (12,401) (25,178) (11,687)
===================================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 6,543 6,899 19,326 13,653
Reinvestment of distributions 1,644 2,480 2,200 1,026
Payments for redemptions (20,769) (25,212) (30,519) (16,103)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 147,414
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions (12,582) (15,833) (8,993) 145,990
- -----------------------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 1,814 3,418 4,210 5,795
Reinvestment of distributions 333 597 195 171
Payments for redemptions (8,965) (10,679) (4,601) (4,480)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 11,567
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions (6,818) (6,664) (196) 13,053
- -----------------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 7,057 1,063 9,712 9,021
Reinvestment of distributions 74 35 187 140
Payments for redemptions (2,895) (896) (4,602) (3,279)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 299
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class C transactions 4,236 202 5,297 6,181
- -----------------------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 11,177 16,014 11,462 5,298
Reinvestment of distributions 500 819 379 229
Payments for redemptions (27,455) (15,364) (35,880) (3,812)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 46,472
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S transactions (15,778) 1,469 (24,039) 48,187
- -----------------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 141,133 69,124 387,332 336,498
Reinvestment of distributions 6,753 7,665 8,467 3,507
Payments for redemptions (115,733) (123,907) (235,567) (132,012)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 408,205
Shares issued in connection with the acquisition of Common Trust Fund
net assets -- -- 259,049 --
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 32,153 (47,118) 419,281 616,198
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 1,211 (67,944) 391,350 829,609
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 62,208 (129,688) 608,578 561,096
NET ASSETS AT BEGINNING OF PERIOD 462,913 592,601 872,886 311,790
===================================================================================================================================
NET ASSETS AT END OF PERIOD $ 525,121 $ 462,913 $ 1,481,464 $ 872,886
===================================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT
INCOME (LOSS) AT END OF PERIOD $ 338 $ 90 $ 488 $ (232)
===================================================================================================================================
</Table>
(1) See Note 4 in notes to financial statements for additional information.
The accompanying notes are an integral part of the financial statements.
111
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS FROM NET DISTRIBUTIONS DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET FROM RETURN
OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS OF CAPITAL
- ----------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND (1)
Class A
2003 $ 8.38 $ 0.17 $ 1.08 $ (0.16) $ -- $ --
2002 (2) 9.50 0.20 (1.12) (0.20) -- --
2001 (2) (3) 13.83 0.18 (2.24) (0.20) (2.07) --
2000 (4) 12.39 0.23 2.12 (0.22) (0.69) --
1999 (4) 12.30 0.20 0.49 (0.20) (0.40) --
1998 (4) 12.57 0.23 0.77 (0.24) (1.03) --
Class B
2003 $ 8.32 $ 0.10 $ 1.08 $ (0.09) $ -- $ --
2002 (2) 9.44 0.13 (1.12) (0.13) -- --
2001 (2) (3) 13.75 0.17 (2.29) (0.13) (2.06) --
2000 (4) 12.33 0.13 2.11 (0.14) (0.68) --
1999 (4) (5) 12.37 0.07 (0.04) (0.07) -- --
Class C
2003 $ 8.35 $ 0.09 $ 1.10 $ (0.10) $ -- $ --
2002 (2) 9.49 0.13 (1.14) (0.13) -- --
2001 (2) (7) 9.29 -- 0.20 -- -- --
Class S
2003 $ 8.39 $ 0.15 $ 1.10 $ (0.15) $ -- $ --
2002 (2) 9.50 0.20 (1.12) (0.19) -- --
2001 (2) (6) 11.27 0.18 (1.74) (0.21) -- --
Class Y
2003 $ 8.40 $ 0.19 $ 1.09 $ (0.18) $ -- $ --
2002 (2) 9.53 0.23 (1.13) (0.23) -- --
2001 (2) (3) 13.87 0.16 (2.20) (0.23) (2.07) --
2000 (4) 12.43 0.26 2.13 (0.26) (0.69) --
1999 (4) 12.32 0.24 0.49 (0.23) (0.39) --
1998 (4) 12.59 0.26 0.77 (0.27) (1.03) --
EQUITY INCOME FUND
Class A
2003 (2) $ 9.58 $ 0.18 $ 1.99 $ (0.19) $ -- $ (0.02)
2002 (2) 12.13 0.16 (2.48) (0.19) (0.04) --
2001 (2) 16.29 0.29 (0.74) (0.32) (3.39) --
2000 15.94 0.28 1.45 (0.28) (1.10) --
1999 15.70 0.36 1.15 (0.37) (0.90) --
Class B
2003 (2) $ 9.52 $ 0.10 $ 1.98 $ (0.11) $ -- $ (0.02)
2002 (2) 12.07 0.09 (2.49) (0.11) (0.04) --
2001 (2) 16.24 0.18 (0.75) (0.21) (3.39) --
2000 15.90 0.18 1.44 (0.18) (1.10) --
1999 15.65 0.24 1.16 (0.25) (0.90) --
Class C
2003 (2) $ 9.54 $ 0.10 $ 1.98 $ (0.11) $ -- $ (0.02)
2002 (2) 12.09 0.10 (2.50) (0.11) (0.04) --
2001 (2) 16.28 0.18 (0.76) (0.22) (3.39) --
2000 15.93 0.19 1.44 (0.18) (1.10) --
1999 (8) 16.62 0.21 (0.70) (0.20) -- --
Class S (2)
2003 $ 9.57 $ .19 $ 1.99 $ (0.19) $ -- $ (0.02)
2002 12.12 .15 (2.47) (0.19) (0.04) --
2001 (7) 11.57 .01 0.54 -- -- --
Class Y
2003 (2) $ 9.63 $ 0.21 $ 2.00 $ (0.21) $ -- $ (0.02)
2002 (2) 12.20 0.21 (2.52) (0.22) (0.04) --
2001 (2) 16.37 0.33 (0.76) (0.35) (3.39) --
2000 16.00 0.32 1.47 (0.32) (1.10) --
1999 15.74 0.40 1.17 (0.41) (0.90) --
</Table>
(1) The financial highlights for the Balanced Fund as set forth herein include
the historical financial highlights of the Firstar Balanced Growth Fund.
The assets of the Firstar Fund were acquired by the First American Balanced
Fund on September 24, 2001. In connection with such acquisition, (i) Class
A shares of the Firstar Balanced Growth Fund were exchanged for Class A
shares of the First American Balanced Fund, (ii) Firstar Class B shares
were exchanged for Class B shares of the First American Fund, (iii) Firstar
Class Y shares were exchanged for Class S shares of the First American
Fund, and (iv) Firstar Class Institutional shares were exchanged for Class
Y shares of the First American Fund.
(2) Per share data calculated using average shares outstanding method.
(3) For the period November 1, 2000 to September 30, 2001. Effective in 2001,
the Fund's fiscal year end was changed from October 31 to September 30. All
ratios for the period have been annualized, except total return and
portfolio turnover.
(4) For the fiscal period ended October 31.
The accompanying notes are an integral part of the financial statements.
112
<Page>
<Table>
<Caption>
RATIO OF NET
NET ASSET RATIO OF INVESTMENT
VALUE NET ASSETS EXPENSES TO INCOME
END OF TOTAL END OF AVERAGE TO AVERAGE
PERIOD RETURN (9) PERIOD (000) NET ASSETS NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND (1)
Class A
2003 $ 9.47 14.98% $ 98,016 1.05% 1.75%
2002 (2) 8.38 (9.90) 98,557 1.05 2.07
2001 (2) (3) 9.50 (17.03) 127,590 1.22 1.96
2000 (4) 13.83 19.46 54,380 1.22 1.66
1999 (4) 12.39 5.56 53,807 1.18 1.59
1998 (4) 12.30 8.60 59,657 1.00 1.91
Class B
2003 $ 9.41 14.25% $ 33,015 1.80% 1.00%
2002 (2) 8.32 (10.64) 35,641 1.80 1.32
2001 (2) (3) 9.44 (17.64) 47,150 1.93 1.22
2000 (4) 13.75 18.77 2,243 1.97 0.91
1999 (4) (5) 12.33 0.25 630 1.97 0.87
Class C
2003 $ 9.44 14.24% $ 7,089 1.80% 0.99%
2002 (2) 8.35 (10.77) 2,233 1.80 1.32
2001 (2) (7) 9.49 2.15 2,351 0.94 2.20
Class S
2003 $ 9.49 15.08% $ 23,844 1.05% 1.76%
2002 (2) 8.39 (9.90) 36,194 1.05 2.07
2001 (2) (6) 9.50 (14.03) 39,527 1.22 1.94
Class Y
2003 $ 9.50 15.35% $ 363,157 0.80% 2.00%
2002 (2) 8.40 (9.74) 290,288 0.80 2.32
2001 (2) (3) 9.53 (16.84) 375,983 0.97 2.21
2000 (4) 13.87 19.94 163,158 0.97 1.91
1999 (4) 12.43 5.87 180,737 0.93 1.84
1998 (4) 12.32 8.83 188,123 0.75 2.16
EQUITY INCOME FUND
Class A
2003 (2) $ 11.56 22.81% $ 144,282 1.15% 1.70%
2002 (2) 9.58 (19.51) 128,142 1.15 1.43
2001 (2) 12.13 (3.89) 24,557 1.00 1.97
2000 16.29 11.11 20,607 1.00 1.69
1999 15.94 9.74 18,970 1.00 2.01
Class B
2003 (2) $ 11.49 21.97% $ 22,156 1.90% 0.95%
2002 (2) 9.52 (20.10) 18,699 1.90 0.80
2001 (2) 12.07 (4.64) 11,516 1.75 1.20
2000 16.24 10.35 10,366 1.75 0.95
1999 15.90 9.10 10,971 1.75 1.34
Class C
2003 (2) $ 11.51 21.95% $ 19,386 1.90% 0.95%
2002 (2) 9.54 (20.08) 11,171 1.90 0.86
2001 (2) 12.09 (4.74) 8,028 1.75 1.20
2000 16.28 10.41 2,511 1.75 0.88
1999 (8) 15.93 (3.02) 1,700 1.76 0.65
Class S (2)
2003 $ 11.56 22.91% $ 17,170 1.15% 1.80%
2002 9.57 (19.47) 36,522 1.15 1.34
2001 (7) 12.12 4.75 328 1.23 4.08
Class Y
2003 (2) $ 11.63 23.20% $ 1,278,470 0.90% 1.95%
2002 (2) 9.63 (19.30) 678,352 0.90 1.80
2001 (2) 12.20 (3.71) 267,361 0.75 2.21
2000 16.37 11.46 275,436 0.75 1.99
1999 16.00 10.10 350,775 0.75 2.38
<Caption>
RATIO OF RATIO OF NET
EXPENSES TO INVESTMENT
AVERAGE INCOME
NET ASSETS TO AVERAGE NET PORTFOLIO
(EXCLUDING ASSETS (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------------------------------------
BALANCED FUND (1)
Class A
2003 1.23% 1.57% 156%
2002 (2) 1.23 1.89 79
2001 (2) (3) 1.28 1.90 54
2000 (4) 1.28 1.60 79
1999 (4) 1.25 1.52 69
1998 (4) 1.24 1.67 56
Class B
2003 1.98% 0.82% 156%
2002 (2) 1.98 1.14 79
2001 (2) (3) 1.99 1.16 54
2000 (4) 2.03 0.85 79
1999 (4) (5) 2.03 0.81 69
Class C
2003 1.98% 0.81% 156%
2002 (2) 1.98 1.14 79
2001 (2) (7) 0.94 2.20 54
Class S
2003 1.23% 1.58% 156%
2002 (2) 1.23 1.89 79
2001 (2) (6) 1.28 1.88 54
Class Y
2003 0.98% 1.82% 156%
2002 (2) 0.98 2.14 79
2001 (2) (3) 1.04 2.14 54
2000 (4) 1.03 1.85 79
1999 (4) 1.00 1.77 69
1998 (4) 0.99 1.92 56
EQUITY INCOME FUND
Class A
2003 (2) 1.20% 1.65% 43%
2002 (2) 1.20 1.38 38
2001 (2) 1.15 1.82 33
2000 1.14 1.55 36
1999 1.13 1.88 35
Class B
2003 (2) 1.95% 0.90% 43%
2002 (2) 1.95 0.75 38
2001 (2) 1.90 1.05 33
2000 1.89 0.81 36
1999 1.88 1.21 35
Class C
2003 (2) 1.95% 0.90% 43%
2002 (2) 1.95 0.81 38
2001 (2) 1.90 1.05 33
2000 1.89 0.74 36
1999 (8) 1.88 0.53 35
Class S (2)
2003 1.20% 1.75% 43%
2002 1.20 1.29 38
2001 (7) 1.42 3.89 33
Class Y
2003 (2) 0.95% 1.90% 43%
2002 (2) 0.95 1.75 38
2001 (2) 0.90 2.06 33
2000 0.89 1.85 36
1999 0.88 2.25 35
</Table>
(5) Class of shares has been offered since March 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(6) Class of shares has been offered since November 27, 2000. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(7) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(8) Class of shares has been offered since February 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(9) Total return does not include sales charges. Total return would have been
lower had certain expenses not been waived.
113
<Page>
NOTES TO FINANCIAL STATEMENTS September 30, 2003
1 > Organization
The First American Real Estate Securities Fund, Technology Fund,
International Fund, Small Cap Growth Opportunities Fund (formerly Micro Cap
Fund), Small Cap Select Fund (formerly Small Cap Core Fund), Small Cap Value
Fund, Mid Cap Growth Opportunities Fund (formerly Mid Cap Core Fund), Mid
Cap Value Fund, Large Cap Growth Opportunities Fund (formerly Large Cap Core
Fund), Large Cap Select Fund, Large Cap Value Fund, Balanced Fund and Equity
Income Fund (each a "Fund" and collectively, the "Funds") are mutual funds
offered by First American Investment Funds, Inc. ("FAIF"), which is a member
of the First American Family of Funds. FAIF currently offers 37 funds,
including the Funds listed above. FAIF is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment
company. FAIF's articles of incorporation permit the Fund's board of
directors to create additional funds in the future.
The Funds offer Class A, Class B, Class C, Class S, and Class Y shares.
Class A shares are sold with a front-end sales charge. Class B shares are
subject to a contingent deferred sales charge for six years and
automatically convert to Class A shares after eight years. Class C shares
are sold with a front-end sales charge, may be subject to a contingent
deferred sales charge for 18 months, and will not convert to Class A shares.
Class S shares have no sales charge and are offered only through banks and
other financial institutions. Class Y shares have no sales charge and are
offered only to qualifying institutional investors and certain other
qualifying accounts.
The Funds' prospectuses provide descriptions of each Fund's investment
objective, policies and strategies. All classes of shares of a Fund have
identical voting, dividend, liquidation and other rights, and the same terms
and conditions, except that the level of distribution and shareholder
servicing fees charged may differ among classes.
2 > Summary of Significant Accounting Policies
The significant accounting policies followed by the Funds are as follows:
SECURITY VALUATION - Security valuations for the Funds' investments are
furnished by independent pricing services that have been approved by the
Funds' board of directors. Investments in equity securities that are traded
on a national securities exchange (or reported on the Nasdaq national market
system) are stated at the last quoted sales price if readily available for
such securities on each business day. For securities traded on the Nasdaq
national market system, the Funds utilize the Nasdaq Official Closing Price
which compares the last trade to the bid/ask range of a security. If the
last trade falls within the bid/ask range, then that price will be the
closing price. If the last trade is outside the bid/ask range, and falls
above the ask, the ask will be the closing price. If the last price 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 service may employ methodologies that utilize
actual market transactions, broker-dealer supplied valuations, or other
formula-driven valuation techniques. These techniques generally consider
such factors as yields or prices of bonds of comparable quality, type of
issue, coupon, maturity, ratings and general market conditions. Securities
for which prices are not available from an independent pricing service but
where an active market exists are valued using market quotations obtained
from one or more dealers that make markets in the securities or from a
widely-used quotation system. When market quotations are not readily
available, securities are valued at fair value as determined in good faith
by procedures established and approved by the Funds' board of directors. If
events occur that materially affect the value of securities (including
non-U.S. securities) between the close of trading in those securities and
the close of regular trading on the New York Stock Exchange, the securities
will be valued at fair value. As of September 30, 2003, Real Estate
Securities Fund, International Fund, Small Cap Growth Opportunities Fund,
Mid Cap Value Fund, and Balanced Fund held fair valued securities with a
market value of $876,092, $346, $122,540, $0 and $912,500, respectively or
0.4%, 0.0%, 0.3%, 0.0% and 0.2% of total net assets, respectively. Debt
obligations with 60 days or less remaining until maturity may be valued at
their amortized cost, which approximates market value. Foreign securities
are valued at the closing prices on the principal exchange on which they
trade. The prices for foreign securities are reported in local currency and
converted to U.S. dollars using currency exchange rates. Exchange rates are
provided daily by recognized independent pricing agents.
SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security
transactions on the trade date of the security purchase or sale. Dividend
income is recorded on the ex-dividend date. Interest income, including
amortization of bond premium and discount, is recorded on an accrual basis.
Security gains and losses are determined on the basis of identified cost,
which is the same basis used for federal income-tax purposes.
114
<Page>
DISTRIBUTIONS TO SHAREHOLDERS - Balanced Fund, Equity Income Fund, Large Cap
Growth Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund, Mid
Cap Growth Opportunities Fund and Mid Cap Value Fund declare and pay income
dividends monthly. Small Cap Growth Opportunities Fund, Small Cap Select
Fund, Small Cap Value Fund, Real Estate Securities Fund and Technology Fund
declare and pay income dividends quarterly. International Fund declares and
pays income dividends annually. Any net realized capital gains on sales of a
Fund's securities are distributed to shareholders at least annually.
Due to the nature of the dividends received by the Real Estate Securities
Fund on its securities holdings, a portion of the quarterly income
distributions from the Real Estate Securities Fund may be a return of
capital.
FEDERAL TAXES - Each Fund is treated as a separate taxable entity. Each Fund
intends to continue to qualify as a regulated investment company as provided
in Subchapter M of the Internal Revenue Code, as amended and to distribute
all taxable income, if any, to its shareholders. Accordingly, no provision
for federal income taxes is required.
Net investment income and net realized gains (losses) may differ for
financial statement and tax purposes because of temporary or permanent
book/tax differences. These differences are primarily due to post-October
losses, losses deferred due to wash sales, the expiration of capital loss
carryovers, proceeds from securities litigation, foreign currency
gains and losses, investments in limited partnerships and REITs, and
the "mark-to-market" of certain Passive Foreign Investment Companies
(PFIC's) for tax purposes. To the extent these differences are
permanent, reclassifications are made to the appropriate equity
accounts in the period that the difference arises.
On the Statement of Assets and Liabilities the following reclassifications
were made (000):
<Table>
<Caption>
ACCUMULATED UNDISTRIBUTED
NET REALIZED NET INVESTMENT PORTFOLIO
FUND GAIN (LOSS) INCOME CAPITAL
----------------------------------------------------------------------------
Real Estate Securities Fund $ 39 $ (39) $ --
Technology Fund 60,753 518 (61,271)
International Fund 6,709 1,678 (8,387)
Small Cap Growth
Opportunities Fund 86 4,604 (4,690)
Small Cap Select Fund 93,127 4,341 (97,468)
Small Cap Value Fund 219 (219) --
Mid Cap Growth
Opportunities Fund 152,422 3,747 (156,169)
Mid Cap Value Fund 1,289 (1,148) (141)
Large Cap Growth
Opportunities Fund 120,929 (85) (120,844)
Large Cap Value Fund 550 (444) (106)
Balanced Fund (232) 236 (4)
Equity Income Fund 393 1,537 (1,930)
</Table>
The characterization of distributions made during the year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. In addition, due to the
timing of dividend distributions, the fiscal year in which the amounts are
distributed may differ from the year that the income or realized gains
(losses) were recorded by the Fund. The distributions paid during the fiscal
years ended September 30, 2003 and September 30, 2002, were characterized as
follows (000):
<Table>
<Caption>
2003
ORDINARY LONG TERM RETURN
FUND INCOME GAIN OF CAPITAL TOTAL
-------------------------------------------------------------------------------
Real Estate Securities Fund $ 8,570 $ 3,434 $ -- $ 12,004
Small Cap Value Fund 429 194 -- 623
Mid Cap Value Fund 3,020 -- 141 3,161
Large Cap Growth
Opportunities Fund 2,409 -- -- 2,409
Large Cap Select Fund 206 -- -- 206
Large Cap Value Fund 14,662 -- 107 14,769
Balanced Fund 9,763 -- -- 9,763
Equity Income Fund 23,248 -- 1,930 25,178
</Table>
<Table>
<Caption>
2002
ORDINARY LONG TERM RETURN
FUND INCOME GAIN OF CAPITAL TOTAL
-------------------------------------------------------------------------------
Real Estate Securities Fund $ 6,226 $ -- $ 764 $ 6,990
Small Cap Growth
Opportunities Fund -- -- 457 457
Small Cap Select Fund -- 23,594 1 23,595
Small Cap Value Fund 8,013 59,831 140 67,984
Mid Cap Value Fund 2,813 -- 792 3,605
Large Cap Growth
Opportunities Fund 914 -- -- 914
Large Cap Value Fund 11,417 -- 284 11,701
Balanced Fund 12,401 -- -- 12,401
Equity Income Fund 11,600 87 -- 11,687
</Table>
115
<Page>
As of September 30, 2003, the components of accumulated earnings (deficit)
on a tax basis were (000):
<Table>
<Caption>
ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND UNREALIZED TOTAL
ORDINARY LONG TERM POST-OCTOBER APPRECIATION ACCUMULATED
FUND INCOME CAPITAL GAINS LOSSES (DEPRECIATION) EARNINGS (DEFICIT)
------------------------------------------------------------------------------------------------------------------------------
Real Estate Securities Fund $ 136 $ 4,743 $ -- $ 33,302 $ 38,181
Technology Fund -- -- (473,964) (2,895) (476,859)
International Fund 10,300 -- (366,083) 126,245 (229,538)
Small Cap Growth Opportunities Fund -- 3,084 (12,773) 78,372 68,683
Small Cap Select Fund 25,371 15,931 (68,046) 149,031 122,287
Small Cap Value Fund -- 6,799 -- 100,796 107,595
Mid Cap Growth Opportunities Fund -- 19,177 (70,588) 139,962 88,551
Mid Cap Value Fund -- -- (105,111) 41,752 (63,359)
Large Cap Growth Opportunities Fund 215 -- (262,091) 54,072 (207,804)
Large Cap Select Fund 772 42 -- 3,068 3,882
Large Cap Value Fund -- -- (157,188) 65,691 (91,497)
Balanced Fund 343 -- (70,485) 16,514 (53,628)
Equity Income Fund 4,467 -- (48,453) 117,931 73,945
</Table>
The difference between book and tax basis unrealized appreciation
(depreciation) is primarily due to the tax deferral of losses on wash sales
and investments in limited partnerships and REITs.
As of September 30, 2003 the following Funds have capital loss carryforwards
(000):
<Table>
<Caption>
FUND AMOUNT EXPIRATION DATE
-----------------------------------------------------------------------------------------------
Technology Fund $ 464,348 2006-2011
International Fund 292,088 2005-2011
Small Cap Select Fund 68,046 2010
Mid Cap Growth Opportunities Fund 70,588 2008-2010
Mid Cap Value Fund 105,020 2008-2011
Large Cap Growth Opportunities Fund 253,377 2009-2011
Large Cap Value Fund 115,841 2009-2011
Balanced Fund 70,485 2007-2011
Equity Income Fund 44,241 2008-2011
</Table>
In accordance with Section 382 of the Internal Revenue Code, utilization of
all or a portion of the above capital loss carryovers is limited on an
annual basis for International, Large Cap Growth Opportunities, Mid Cap
Growth Opportunities, Small Cap Select, and Technology Funds in the amount
of (000) $9,836, $9,442, $5,541, $5,341 and $1,524, respectively.
116
<Page>
Certain Funds incurred a loss for tax purposes for the period from November
1, 2002 to September 30, 2003. As permitted by tax regulations, the Funds
intend to elect to defer and treat these losses as arising in the fiscal
year ending September 30, 2004. The following Funds had deferred losses
(000):
<Table>
<Caption>
FUND AMOUNT
----------------------------------------------------------------------------
Technology Fund $ 9,616
International Fund 73,995
Small Cap Growth Opportunities Fund 12,773
Mid Cap Value Fund 91
Large Cap Growth Opportunities Fund 8,714
Large Cap Value Fund 41,347
Equity Income Fund 4,212
</Table>
FUTURES TRANSACTIONS - In order to gain exposure to or protect against
changes in the market, certain Funds may enter into S&P stock index futures
contracts and other stock index futures contracts. Balanced Fund may also
enter into interest rate index futures contracts.
Upon entering into a futures contract, the Fund is required to deposit cash
or pledge U.S. government securities in an amount equal to five percent of
the underlying notional amount indicated in the futures contract (initial
margin). Subsequent payments, which are dependent on the daily fluctuations
in the value of the underlying index, are made or received by the Fund each
day (daily variation margin) and are recorded as unrealized gains (losses)
until the contract is closed. When the contract is closed, the Fund records
a realized gain (loss) equal to the difference between the proceeds from (or
cost of) the closing transaction and the Fund's basis in the contract. At
September 30, 2003, open long futures contracts for the Large Cap Select
Fund and Balanced Fund, were as follows (000):
<Table>
<Caption>
MARKET VALUE
NAME OF NUMBER OF COVERED BY SETTLEMENT UNREALIZED
FUND CONTRACT CONTRACTS CONTRACTS MONTH GAIN (LOSS)
-----------------------------------------------------------------------------------------------
Large Cap Select S&P 500 Index 27 $ 6,709 Dec - 03 $ (115)
Balanced S&P 500 Index 61 15,160 Dec - 03 (277)
Russell 2000 Index 4 976 Dec - 03 (37)
</Table>
FOREIGN CURRENCY TRANSLATION - The books and records of the International
Fund are maintained in U.S. dollars on the following basis:
- market value of investment securities, assets and liabilities at the
current rate of exchange; and
- purchases and sales of investment securities, income, and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.
The International Fund does not isolate the portion of gains and losses on
investments in equity securities that are due to changes in the foreign
exchange rates from that which is due to changes in market prices of equity
securities.
The International Fund reports certain foreign currency-related transactions
as components of realized gains for financial reporting purposes, whereas
such components are treated as ordinary income for federal income tax
purposes.
FORWARD FOREIGN CURRENCY CONTRACTS - The International Fund may enter into
forward foreign currency contracts as hedges against either specific
transactions or Fund positions. The aggregate principal amount of the
contracts are not recorded because the International Fund intends to settle
the contracts prior to delivery. All commitments are "marked-to-market"
daily at the applicable foreign exchange rate, and any resulting unrealized
gains or losses are recorded currently. The International Fund realizes
gains or losses at the time the forward contracts are extinguished.
Unrealized gains or losses on outstanding positions in forward foreign
currency contracts held at the close of the period are recognized as
ordinary income or loss for federal income tax purposes.
The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the securities, but it does
establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline
in the value of the hedged currency, they also limit a potential gain that
might result should the value of the currency increase. These contracts
involve market risk in excess of the amount reflected in the Fund's
statement of assets and liabilities. The face or contract amount in U.S.
dollars reflects the total exposure the Fund has in that particular currency
contract. In addition, there could be exposure to risks (limited to the
amount of unrealized gains) if the counter parties to the contracts are
unable to meet the terms of their contracts. There were no outstanding
forward foreign currency contracts at September 30, 2003.
EXPENSES - Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses are allocated to the
Funds on the basis of relative net assets of all funds within the First
American Fund complex. Class specific expenses, such as 12b-1 fees, are
borne by that class. Income, other expenses, and realized and unrealized
gains and losses of a Fund are allocated to
117
<Page>
each respective class in proportion to the relative net assets of each
class.
OPTIONS TRANSACTIONS - The Funds may utilize options in an attempt to manage
market or business risk or enhance the Fund's yield. When a call or put
option is written, an amount equal to the premium received is recorded as a
liability. The liability is marked-to-market daily to reflect the current
market value of the option written. When a written option expires, a gain is
realized in the amount of the premium originally received. If a closing
purchase contract is entered into, a gain or loss is realized in the amount
of the original premium less the cost of the closing transaction. If a
written call option is exercised, a gain or loss is realized from the sale
of the underlying security, and the proceeds from such sale are increased by
the premium originally received. If a written put option is exercised, the
amount of the premium originally received reduces the cost of the security
which is purchased upon exercise of the option.
Purchased options are recorded as investments and marked-to-market daily to
reflect the current market value of the option contract. If a purchased
option expires, a loss is realized in the amount of the cost of the option.
If a closing transaction is entered into, a gain or loss is realized, to the
extent that the proceeds from the sale are greater or less than the cost of
the option. If a put option is exercised, a gain or loss is realized from
the sale of the underlying security by adjusting the proceeds from such sale
by the amount of the premium originally paid. If a call option is exercised,
the cost of the security purchased upon exercise is increased by the premium
originally paid.
SECURITIES LENDING - In order to generate additional income, a Fund may lend
securities representing up to one-third of the value of its total assets
(which includes collateral for securities on loan) to broker-dealers, banks,
or other institutional borrowers of securities. Each Fund's policy is to
maintain collateral in the form of cash, U.S. Government securities, or
other high-grade debt obligations equal to at least 100% of the value of
securities loaned. The collateral is then "marked-to-market" daily until the
securities are returned. As with other extensions of credit, there may be
risks of delay in recovery of the securities or even loss of rights in the
collateral should the borrower of the security fail financially.
U.S. Bancorp Asset Management, Inc. ("USBAM") serves as the securities
lending agent for the Funds in transactions involving the lending of
portfolio securities on behalf of the Funds. For these services, the
securities lending fees paid to USBAM from the Funds for the fiscal year
ended September 30, 2003 were as follows (000):
<Table>
<Caption>
FUND AMOUNT
----------------------------------------------------------------------------
Real Estate Securities Fund $ 24
Technology Fund 127
International Fund 235
Small Cap Growth Opportunities Fund 81
Small Cap Select Fund 209
Small Cap Value Fund 95
Mid Cap Growth Opportunities Fund 285
Mid Cap Value Fund 70
Large Cap Growth Opportunities Fund 286
Large Cap Select Fund 2
Large Cap Value Fund 222
Balanced Fund 118
Equity Income Fund 213
</Table>
OTHER INCOME - Income from settlement proceeds related to specific portfolio
securities is recorded as an adjustment to realized or unrealized gains or
losses. Income from settlement proceeds related to securities that are no
longer included in the portfolio is recorded in other income. For the year
ended September 30, 2003, the Technology Fund, Small Cap Growth
Opportunities Fund, Small Cap Select Fund, Small Cap Value Fund, Mid Cap
Growth Opportunities Fund, Mid Cap Value Fund, Large Cap Growth
Opportunities Fund, Large Cap Value Fund, Balanced Fund and Equity Income
Fund recorded $384,029, $19,368, $188,507, $91,825, $3,410, $1,141,463,
$84,664, $505,606, $190,049, $126,478, respectively, in other income for
settlement proceeds related to securities no longer included in the
portfolio.
INTERFUND LENDING PROGRAM - Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Funds, along with other registered
investment companies in the First American Family of Funds, may participate
in an interfund lending program. This program provides an alternative credit
facility allowing the Funds to borrow from, or lend money to, other
participating funds. The Funds did not have any interfund lending
transactions during the fiscal year ended September 30, 2003.
DEFERRED COMPENSATION PLAN - Under a Deferred Compensation Plan (the Plan),
non-interested directors of the First American Fund family may participate
and elect to defer receipt of their annual compensation. Deferred amounts
are treated as though equivalent dollar amounts had been invested in shares
of selected open-end First American Funds as designated by the Directors.
All amounts in the Plan are 100% vested and accounts under the Plan are
obligations of the Funds. Deferred amounts
118
<Page>
remain in the Funds until distributed in accordance with the Plan.
USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS - The preparation of
financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and
assumptions that affect the reported amount of net assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported results of operations during the
reporting period. Actual results could differ from those estimates.
3 > Fees and Expenses
ADVISOR FEES - Pursuant to an investment advisory agreement (the
"Agreement"), USBAM manages each Fund's assets and furnishes related office
facilities, equipment, research, and personnel. The Agreement requires each
Fund to pay USBAM a monthly fee based upon average daily net assets of the
Fund. The annual fee for each Fund is as follows:
<Table>
Real Estate Securities Fund 0.70%
Technology Fund 0.70%
International Fund 1.10%
Small Cap Growth Opportunities Fund 1.40%
Small Cap Select Fund 0.70%
Small Cap Value Fund 0.70%
Mid Cap Growth Opportunities Fund 0.70%
Mid Cap Value Fund 0.70%
Large Cap Growth Opportunities Fund 0.65%
Large Cap Select Fund 0.65%
Large Cap Value Fund 0.65%
Balanced Fund 0.65%
Equity Income Fund 0.65%
</Table>
Under the Agreement, the fee paid to USBAM by International Fund is equal to
a rate of 1.10% of the average daily net assets up to $1.5 billion, 1.05% of
the average daily net assets on the next $1 billion, and 1.00% of the
average daily net assets in excess of $2.5 billion. The fees paid by Large
Cap Growth Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund,
Balanced Fund, and Equity Income Fund are equal to an annual rate of 0.65%
of the average daily net assets up to $3 billion, 0.625% of the average
daily net assets on the next $2 billion, and 0.60% of the average daily net
assets in excess of $5 billion. USBAM voluntarily waived fees during the
most recently completed fiscal year so that the total fund operating
expenses did not exceed expense limitations described in the Funds'
prospectuses.
The Funds may invest in the money market funds that are series of First
American Funds, Inc. ("FAF"), subject to certain limitations. The terms of
such investments are identical to those of investments by non-related
entities except that, to avoid duplicative investment advisory fees, USBAM
reimburses each Fund an amount equal to the investment advisory fee paid by
FAF to USBAM related to such investments. For financial statement purposes,
these reimbursements are recorded as investment income.
SUB-ADVISORY FEES - Clay Finlay, Inc. serves as investment sub-adviser to
the International Fund, and receives a fee, payable by USBAM. The fee is
computed daily and paid monthly at an annual rate of 0.25% of the first $500
million of the Fund's average daily net assets, and 0.10% of the Fund's
average daily net assets in excess of $500 million.
CO-ADMINISTRATION FEES - USBAM and U.S. Bancorp Fund Services LLC ("USBFS")
(collectively the "Administrators") serve as the co-administrators pursuant
to a co-administration agreement between the Administrators and the Funds.
USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank"). Both
U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the
co-administration agreement, the Administrators are compensated to provide,
or compensate other entities to provide, services to the Funds. These
services include various legal, oversight and administrative services,
accounting services, transfer agency and dividend disbursing services, and
shareholder services. The Funds pay the Administrators at an annual rate,
calculated daily and paid monthly, based on the average daily net assets of
all open-end mutual funds in the First American Family of Funds, equal to
each Fund's pro rata share of an amount equal to 0.25% of the aggregate
average daily net assets up to $8 billion, 0.235% of the next $17 billion of
the aggregate average daily assets, 0.22% of the next $25 billion of the
aggregate average daily net assets, and 0.20% of the aggregate average daily
net assets in excess of $50 billion. The Funds, along with all other
open-end mutual funds in the First American Family of Funds, pay transfer
agent fees of $18,500 per share class. These fees are allocated to each Fund
based upon the Fund's pro rata share of aggregate average daily net assets
of the Funds that comprise FAIF. Each Fund also pays additional per account
fees for transfer agent services. For the fiscal year ended September 30,
2003, administration fees paid to
119
<Page>
USBAM and USBFS by the Funds included in this annual report were as follows
(000):
<Table>
<Caption>
FUND AMOUNT
------------------------------------------------------------------------------
Real Estate Securities Fund $ 448
Technology Fund 270
International Fund 2,309
Small Cap Growth Opportunities Fund 871
Small Cap Select Fund 2,327
Small Cap Value Fund 1,157
Mid Cap Growth Opportunities Fund 2,971
Mid Cap Value Fund 832
Large Cap Growth Opportunities Fund 2,478
Large Cap Select Fund 82
Large Cap Value Fund 2,775
Balanced Fund 1,421
Equity Income Fund 3,512
</Table>
CUSTODIAN FEES - U.S. Bank serves as the Funds' custodian pursuant to a
custodian agreement with FAIF. The fee for each Fund is equal to an annual
rate of 0.01% of average daily net assets. All fees are computed daily and
paid monthly.
DISTRIBUTION AND SHAREHOLDER SERVICING FEES - Quasar Distributors LLC
("Quasar"), a subsidiary of U.S. Bancorp, serves as distributor of the Funds
pursuant to a distribution agreement with FAIF. Under the distribution
agreement, each of the Funds pays Quasar a monthly distribution and/or
shareholder servicing fee equal to an annual rate of 0.25% of each Fund's
average daily net assets of the Class A shares, 1.00% of the Class B shares
and 1.00% of the Class C shares. These fees may be used by Quasar to provide
compensation for sales support, distribution activities, or shareholder
servicing activities.
FAIF has adopted and entered into a shareholder service plan and agreement
with Quasar with respect to the Class S shares. Each Fund pays to Quasar a
monthly shareholder servicing fee equal to an annual rate of 0.25% of the
average daily net assets of the Fund's Class S shares. No distribution or
shareholder servicing fees are paid by Class Y shares. Under these
distribution and shareholder servicing agreements, the following amounts
were retained by Quasar or paid to affiliates of USBAM for the fiscal year
ended September 30, 2003 (000):
<Table>
<Caption>
FUND AMOUNT
------------------------------------------------------------------------------
Real Estate Securities Fund $ 39
Technology Fund 97
International Fund 153
Small Cap Growth Opportunities Fund 100
Small Cap Select Fund 216
Small Cap Value Fund 111
Mid Cap Growth Opportunities Fund 392
Mid Cap Value Fund 64
Large Cap Growth Opportunities Fund 277
Large Cap Select Fund --
Large Cap Value Fund 360
Balanced Fund 439
Equity Income Fund 541
</Table>
OTHER FEES - In addition to the investment advisory fees, custodian fees,
distribution and shareholder servicing fees, and co-administration fees,
each Fund is responsible for paying most other operating expenses including
fees and expenses of outside directors, registration fees, printing of
shareholder reports, legal, auditing, insurance and other miscellaneous
expenses. For the fiscal year ended September 30, 2003, legal fees and
expenses were paid to a law firm of which the Secretary and two Assistant
Secretaries of the Funds are partners.
SALES CHARGES - A contingent deferred sales charge ("CDSC") is imposed on
redemptions made in the Class B shares. The CDSC varies depending on the
number of years from time of payment for the purchase of Class B shares
until the redemption of such shares. Class B shares automatically convert to
Class A shares after eight years.
<Table>
<Caption>
CDSC AS A
PERCENTAGE OF DOLLAR
YEAR SINCE PURCHASE AMOUNT SUBJECT TO CHARGE
---------------------------------------------------------------------------------
First 5.00%
Second 5.00%
Third 4.00%
Fourth 3.00%
Fifth 2.00%
Sixth 1.00%
Seventh --
Eight --
</Table>
A CDSC of 1.00% is imposed on redemptions made in Class C shares for the
first eighteen months.
The CDSC for Class B shares and Class C shares is imposed on the value of
the purchased shares or the value at the time of redemption, whichever is
less.
For the fiscal year ended September 30, 2003, total sales charges retained
by affiliates of USBAM for distributing the Funds' shares were as follows
(000):
<Table>
<Caption>
FUND AMOUNT
------------------------------------------------------------------------------
Real Estate Securities Fund $ 47
Technology Fund 86
International Fund 93
Small Cap Growth Opportunities Fund 167
Small Cap Select Fund 179
Small Cap Value Fund 108
Mid Cap Growth Opportunities Fund 216
Mid Cap Value Fund 82
Large Cap Growth Opportunities Fund 164
Large Cap Select Fund 16
Large Cap Value Fund 248
Balanced Fund 208
Equity Income Fund 551
</Table>
120
<Page>
4 > Capital Share Transactions
There are 420 billion shares of $0.0001 par value capital stock authorized.
Capital share transactions for the Funds were as follows (000):
<Table>
<Caption>
REAL ESTATE TECHNOLOGY INTERNATIONAL
SECURITIES FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------
10/01/02 10/01/01 10/01/02 10/01/01 10/01/02 10/01/01
TO TO TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------------------
Class A:
Shares issued 1,923 1,076 1,908 1,656 20,293 17,671
Shares issued in lieu of cash distributions 106 33 -- -- -- --
Shares redeemed (921) (166) (2,202) (2,138) (21,356) (19,832)
Shares issued in connection with acquisition of
Fund net assets -- -- -- 167 347 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 1,108 943 (294) (315) (716) (2,161)
==============================================================================================================================
Class B:
Shares issued 77 90 293 288 73 102
Shares issued in lieu of cash distributions 12 7 -- -- -- --
Shares redeemed (54) (39) (647) (758) (249) (299)
Shares issued in connection with acquisition of
Fund net assets -- -- -- 599 39 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS 35 58 (354) 129 (137) (197)
==============================================================================================================================
Class C:
Shares issued 154 76 223 197 262 283
Shares issued in lieu of cash distributions 8 1 -- -- -- --
Shares redeemed (32) (31) (398) (453) (630) (765)
Shares issued in connection with acquisition of
Fund net assets -- -- -- 26 22 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 130 46 (175) (230) (346) (482)
==============================================================================================================================
Class S:
Shares issued 195 76 459 217 532 946
Shares issued in lieu of cash distributions 8 4 -- -- -- --
Shares redeemed (134) (15) (330) (188) (1,066) (523)
Shares issued in connection with acquisition of
Fund net assets -- -- -- 401 6 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS S TRANSACTIONS 69 65 129 430 (528) 423
==============================================================================================================================
Class Y:
Shares issued 5,372 3,096 5,455 7,064 60,261 27,079
Shares issued in lieu of cash distributions 224 86 -- -- -- --
Shares redeemed (2,207) (1,752) (7,227) (8,911) (30,752) (27,326)
Shares issued in connection with acquisition of
Fund net assets -- -- -- 2,708 6,391 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 3,389 1,430 (1,772) 861 35,900 (247)
==============================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 4,731 2,542 (2,466) 875 34,173 (2,664)
==============================================================================================================================
</Table>
121
<Page>
<Table>
<Caption>
SMALL CAP GROWTH
OPPORTUNITIES SMALL CAP SMALL CAP
FUND SELECT FUND VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------
10/01/02 10/01/01 10/01/02 10/01/01 10/01/02 10/01/01
TO TO TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------------------
Class A:
Shares issued 2,921 3,446 1,232 2,175 522 1,106
Shares issued in lieu of cash distributions -- 4 -- 98 1 404
Shares redeemed (2,420) (2,893) (1,222) (579) (668) (1,654)
Shares issued in connection with acquisition of
Fund net assets -- -- 1,906 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 501 557 1,916 1,694 (145) (144)
==============================================================================================================================
Class B:
Shares issued 85 145 158 387 81 220
Shares issued in lieu of cash distributions -- -- -- 13 -- 156
Shares redeemed (61) (55) (118) (112) (269) (217)
Shares issued in connection with acquisition of
Fund net assets -- -- 357 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS 24 90 397 288 (188) 159
==============================================================================================================================
Class C:
Shares issued 64 28 272 320 73 146
Shares issued in lieu of cash distributions -- -- -- -- -- 58
Shares redeemed (12) (9) (154) (29) (202) (104)
Shares issued in connection with acquisition of
Fund net assets -- -- 367 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 52 19 485 291 (129) 100
==============================================================================================================================
Class S:
Shares issued 69 72 447 627 68 40
Shares issued in lieu of cash distributions -- -- -- 33 -- --
Shares redeemed (47) (45) (407) (255) (11) (3)
Shares issued in connection with acquisition of
Fund net assets -- -- 46 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS S TRANSACTIONS 22 27 86 405 57 37
==============================================================================================================================
Class Y:
Shares issued 6,194 1,997 19,375 15,652 5,082 8,466
Shares issued in lieu of cash distributions -- 17 -- 1,365 40 4,122
Shares redeemed (3,929) (2,748) (14,243) (4,156) (7,783) (12,422)
Shares issued in connection with acquisition of
Fund net assets -- -- 16,348 -- -- --
Shares issued in connection with acquisition of
Common Trust Fund net assets -- -- 10,235 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 2,265 (734) 31,715 12,861 (2,661) 166
==============================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 2,864 (41) 34,599 15,539 (3,066) 318
==============================================================================================================================
</Table>
122
<Page>
<Table>
<Caption>
MID CAP GROWTH LARGE CAP GROWTH
OPPORTUNITIES MID CAP OPPORTUNITIES
FUND VALUE FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------
10/01/02 10/01/01 10/01/02 10/01/01 10/01/02 10/01/01
TO TO TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------------------
Class A:
Shares issued 503 476 261 365 676 144
Shares issued in lieu of cash distributions -- -- 8 9 3 2
Shares redeemed (737) (536) (236) (378) (787) (264)
Shares issued in connection with acquisition of
Fund net assets 1,985 -- -- -- 2,908 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 1,751 (60) 33 (4) 2,800 (118)
==============================================================================================================================
Class B:
Shares issued 56 93 49 115 50 55
Shares issued in lieu of cash distributions -- -- 3 2 -- --
Shares redeemed (36) (22) (215) (157) (317) (21)
Shares issued in connection with acquisition of
Fund net assets 95 -- -- -- 1,823 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS 115 71 (163) (40) 1,556 34
==============================================================================================================================
Class C:
Shares issued 323 48 26 56 166 41
Shares issued in lieu of cash distributions -- -- 1 1 -- --
Shares redeemed (113) (5) (89) (56) (127) (16)
Shares issued in connection with acquisition of
Fund net assets 128 -- -- -- 618 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 338 43 (62) 1 657 25
==============================================================================================================================
Class S:
Shares issued 239 224 69 8 280 104
Shares issued in lieu of cash distributions -- -- -- -- 1 --
Shares redeemed (162) (55) (22) -- (170) (95)
Shares issued in connection with acquisition of
Fund net assets 7 -- -- -- 460 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS S TRANSACTIONS 84 169 47 8 571 9
==============================================================================================================================
Class Y:
Shares issued 9,998 6,630 6,010 3,949 13,440 4,258
Shares issued in lieu of cash distributions -- -- 139 138 46 18
Shares redeemed (8,534) (3,074) (5,344) (5,778) (14,585) (3,925)
Shares issued in connection with acquisition of
Fund net assets 5,734 -- -- -- 21,251 --
Shares issued in connection with acquisition of
Common Trust Fund net assets 8,454 -- -- -- 12,677 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 15,652 3,556 805 (1,691) 32,829 351
==============================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 17,940 3,779 660 (1,726) 38,413 301
==============================================================================================================================
</Table>
123
<Page>
<Table>
<Caption>
LARGE CAP LARGE CAP BALANCED
SELECT FUND VALUE FUND FUND
- ------------------------------------------------------------------------------------------------------------------
1/31/03 (1) 10/01/02 10/01/01 10/01/02 10/01/01
TO TO TO TO TO
9/30/03 9/30/03 9/30/02 9/30/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------
Class A:
Shares issued 19 885 621 729 710
Shares issued in lieu of cash distributions -- 75 51 183 259
Shares redeemed -- (1,747) (1,851) (2,326) (2,634)
Shares issued in connection with acquisition of
Fund net assets -- -- 1,960 -- --
- ------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 19 (787) 781 (1,414) (1,665)
==================================================================================================================
Class B:
Shares issued 10 81 142 206 355
Shares issued in lieu of cash distributions -- 14 5 37 63
Shares redeemed -- (672) (615) (1,015) (1,130)
Shares issued in connection with acquisition of
Fund net assets -- -- 729 -- --
- ------------------------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS 10 (577) 261 (772) (712)
==================================================================================================================
Class C:
Shares issued 3 80 151 798 112
Shares issued in lieu of cash distributions -- 3 1 8 4
Shares redeemed (1) (216) (202) (322) (97)
Shares issued in connection with acquisition of
Fund net assets -- -- 5 -- --
- ------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 2 (133) (45) 484 19
==================================================================================================================
Class S:
Shares issued -- 529 131 1,256 1,640
Shares issued in lieu of cash distributions -- 23 8 56 86
Shares redeemed -- (848) (335) (3,113) (1,572)
Shares issued in connection with acquisition of
Fund net assets -- -- 2,086 -- --
- ------------------------------------------------------------------------------------------------------------------
TOTAL CLASS S TRANSACTIONS -- (296) 1,890 (1,801) 154
==================================================================================================================
Class Y:
Shares issued 11,138 10,622 9,907 15,854 7,150
Shares issued in lieu of cash distributions 12 626 411 750 800
Shares redeemed (110) (17,421) (32,111) (12,921) (12,860)
Shares issued in connection with acquisition of
Fund net assets -- -- 25,675 -- --
- ------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 11,040 (6,173) 3,882 3,683 (4,910)
==================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 11,071 (7,966) 6,769 180 (7,114)
==================================================================================================================
</Table>
(1) Commencement of operations
124
<Page>
<Table>
<Caption>
EQUITY
INCOME FUND
- -------------------------------------------------------------------------------
10/01/02 10/01/01
TO TO
9/30/03 9/30/02
- -------------------------------------------------------------------------------
Class A:
Shares issued 1,778 1,126
Shares issued in lieu of cash distributions 207 92
Shares redeemed (2,888) (1,430)
Shares issued in connection with acquisition of Fund
net assets -- 11,570
- -------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS (903) 11,358
===============================================================================
Class B:
Shares issued 390 473
Shares issued in lieu of cash distributions 18 15
Shares redeemed (444) (391)
Shares issued in connection with acquisition of Fund
net assets -- 913
- -------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS (36) 1,010
===============================================================================
Class C:
Shares issued 935 745
Shares issued in lieu of cash distributions 18 12
Shares redeemed (439) (274)
Shares issued in connection with acquisition of Fund
net assets -- 24
- -------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 514 507
===============================================================================
Class S:
Shares issued 1,108 459
Shares issued in lieu of cash distributions 36 21
Shares redeemed (3,475) (339)
Shares issued in connection with acquisition of Fund
net assets -- 3,648
- -------------------------------------------------------------------------------
TOTAL CLASS S TRANSACTIONS (2,331) 3,789
===============================================================================
Class Y:
Shares issued 36,512 27,490
Shares issued in lieu of cash distributions 790 308
Shares redeemed (21,995) (11,132)
Shares issued in connection with acquisition of Fund
net assets -- 31,843
Shares issued in connection with acquisition of
Common Trust Fund net assets 24,188 --
- -------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 39,495 48,509
===============================================================================
NET INCREASE IN CAPITAL SHARES 36,739 65,173
===============================================================================
</Table>
125
<Page>
5 > Investment Security Transactions
During the fiscal year ended September 30, 2003, purchases of securities and
proceeds from sales of securities, other than temporary investments in
short-term securities, were as follows (000):
<Table>
<Caption>
U.S. GOVERNMENT SECURITIES OTHER INVESTMENT SECURITIES
FUND PURCHASES SALES PURCHASES SALES
------------------------------------------------------------------------------
Real Estate Securities
Fund $ -- $ -- $ 188,655 $ 111,519
Technology Fund -- -- 106,348 113,783
International Fund -- -- 881,451 663,932
Small Cap Growth
Opportunities Fund -- -- 483,611 425,208
Small Cap Select Fund -- -- 1,269,442 1,180,416
Small Cap Value Fund -- -- 201,986 215,334
Mid Cap Growth
Opportunities Fund -- -- 1,586,672 1,534,105
Mid Cap Value Fund -- -- 322,165 306,384
Large Cap Growth
Opportunities Fund -- -- 754,595 740,045
Large Cap Select Fund -- -- 148,774 31,884
Large Cap Value Fund -- -- 938,210 1,105,505
Balanced Fund 237,955 215,153 543,698 572,159
Equity Income Fund -- -- 644,379 544,813
</Table>
The aggregate gross unrealized appreciation and depreciation of securities
held by the Funds and the total cost of securities (including cost of
securities purchased with proceeds from securities lending) for federal tax
purposes at September 30, 2003, were as follows (000):
<Table>
<Caption>
AGGREGATE AGGREGATE FEDERAL
GROSS GROSS INCOME
FUND APPRECIATION DEPRECIATION NET TAX COST
-------------------------------------------------------------------------------------
Real Estate Securities Fund $ 34,092 $ (789) $ 33,303 $ 266,792
Technology Fund 14,567 (17,534) (2,967) 168,374
International Fund 154,360 (28,126) 126,234 1,118,153
Small Cap Growth
Opportunities Fund 103,441 (25,070) 78,371 530,070
Small Cap Select Fund 184,971 (35,940) 149,031 1,562,913
Small Cap Value Fund 119,502 (18,706) 100,796 547,629
Mid Cap Growth
Opportunities Fund 175,297 (35,335) 139,962 1,875,702
Mid Cap Value Fund 47,841 (6,089) 41,752 485,922
Large Cap Growth
Opportunities Fund 151,198 (97,127) 54,071 1,819,308
Large Cap Select Fund 5,643 (2,461) 3,182 163,972
Large Cap Value Fund 118,480 (52,789) 65,691 1,424,043
Balanced Fund 39,106 (22,248) 16,858 699,519
Equity Income Fund 189,710 (71,779) 117,931 1,780,871
</Table>
The difference between cost for financial statement purposes and federal tax
purposes is primarily due to losses deferred from wash sales and investments
in limited partnerships and REITs.
6 > Options Written
The following options written were outstanding as of September, 30, 2003
(000):
CALL OPTIONS WRITTEN
<Table>
<Caption>
EXPIRATION EXERCISE NUMBER OF
ISSUER DATE PRICE CONTRACTS MARKET VALUE
---------------------------------------------------------------------------------------------------
BALANCED FUND
U.S. Treasury Note Dec-03 $ 114 250 $ 47
U.S. Treasury Note Dec-03 116 250 23
------------
Total call options outstanding (premiums
received, $31) $ 70
------------
TECHNOLOGY FUND
Adobe Systems Oct-03 $ 35 312 $ 156
Computer Associates International Nov-03 25 446 103
Dell Nov-03 35 314 28
Hewlett-Packard Nov-03 25 758 4
Intuit Oct-03 45 178 70
Juniper Networks Oct-03 17 161 2
Lexmark International Group, CI A Oct-03 80 178 1
VERITAS Software Nov-03 35 535 75
------------
Total call options outstanding (premiums
received, $511) $ 439
------------
</Table>
PUT OPTIONS WRITTEN
<Table>
<Caption>
EXPIRATION EXERCISE NUMBER OF
ISSUER DATE PRICE CONTRACTS MARKET VALUE
------------------------------------------------------------------------------------------------------
BALANCED FUND
U.S. Treasury Note Dec-03 $ 108 250 $ 4
------------
Total put options outstanding (premiums
received, $15) $ 4
------------
</Table>
126
<Page>
Transactions in options written for the fiscal year ended September 30,
2003, were as follows (000):
<Table>
<Caption>
NUMBER OF PREMIUM
CONTRACTS AMOUNT
-------------------------------------------------------------------------------
PUT OPTIONS WRITTEN
BALANCED FUND:
Balance at September 30, 2002 -- $ --
Opened 250 15
Expired -- --
Exercised -- --
Closed -- --
------------ ------------
Balance at September 30, 2003 250 $ 15
------------ ------------
CALL OPTIONS WRITTEN
TECHNOLOGY FUND:
Balance at September 30, 2002 700 $ 91
Opened 8,318 1,203
Expired (718) (143)
Exercised -- --
Closed (5,418) (640)
------------ ------------
Balance at September 30, 2003 2,882 $ 511
------------ ------------
BALANCED FUND:
Balance at September 30, 2002 -- $ --
Opened 500 31
Expired -- --
Exercised -- --
Closed -- --
------------ ------------
Balance at September 30, 2003 500 $ 31
------------ ------------
</Table>
7 > Payment made by Affiliate
In 2003, the International Fund received a reimbursement from USBAM related
to foreign currency principal trades between the International Fund and U.S.
Bank from April 1994 to September 2001, which were in violation of the
Investment Company Act of 1940. The amount of the reimbursement was $621,143
or $0.005 per share based upon the shares outstanding as of September 30,
2003.
8 > Fund Mergers
On March 13, 2003, shareholders of the Health Sciences Fund and Large Cap Growth
Fund, Mid Cap Growth Fund, Emerging Markets Fund, and Small Cap Growth Fund
approved the Agreement and Plan of Reorganization recommended by the board of
directors, providing for the merger into the Large Cap Growth Opportunities
Fund, Mid Cap Growth Opportunities Fund, International Fund, and Small Cap
Select Fund, respectively, at the close of business March 14, 2003. Under the
Agreement and Plan of Reorganization, Class A, Class B, Class C, Class S, and
Class Y shares of the Health Sciences Fund, Large Cap Growth Fund, Mid Cap
Growth Fund, Emerging Markets Fund, and Small Cap Growth Fund were exchanged for
Class A, Class B, Class C, Class S, and Class Y shares, respectively, of the
Large Cap Growth
127
<Page>
Opportunities Fund, Mid Cap Growth Opportunities Fund, International Fund, and
Small Cap Select Fund on a tax free basis. The following table illustrates the
specifics of the mergers (000):
<Table>
<Caption>
ACQUIRED SHARES ISSUED TO
FUNDS NET SHAREHOLDERS OF ACQUIRING FUND CONTINUED TAX STATUS
ACQUIRED FUND ACQUIRING FUND ASSETS ACQUIRED FUND NET ASSETS NET ASSETS OF TRANSFER
- -----------------------------------------------------------------------------------------------------------------------------------
First American Health First American Large Cap
Sciences Growth Opportunities (1) $ 15,899 (2) $ 548,575 $ 1,077,544 Non-taxable
Class A Class A 240
Class B Class B 138
Class C Class C 139
Class S Class S 5
Class Y Class Y 300
First American Large
Cap Growth 513,070 (3)
Class A Class A 2,668
Class B Class B 1,685
Class C Class C 479
Class S Class S 455
Class Y Class Y 20,951
First American Mid Cap First American Mid Cap
Growth Growth Opportunities (1) 218,741 (4) 895,749 1,114,490 Non-taxable
Class A Class A 1,985
Class B Class B 95
Class C Class C 128
Class S Class S 7
Class Y Class Y 5,734
First American Emerging First American
Markets International (1) 49,553 (5) 725,636 775,189 Non-taxable
Class A Class A 347
Class B Class B 39
Class C Class C 22
Class S Class S 6
Class Y Class Y 6,391
First American Small First American Small Cap
Cap Growth Select (1) 210,865 (6) 656,515 867,380 Non-taxable
Class A Class A 1,906
Class B Class B 357
Class C Class C 367
Class S Class S 46
Class Y Class Y 16,348
</Table>
(1) Accounting survivor.
(2) Includes capital loss carryover and tax losses deferred due to wash sales
of $3,407, and unrealized depreciation of $2,164.
(3) Includes capital loss carryover and tax losses deferred due to wash sales
of $302,762, and unrealized depreciation of $94,007.
(4) Includes capital loss carryover and tax losses deferred due to wash sales
of $230,571, and unrealized depreciation of $12,121.
(5) Includes capital loss carryover and tax losses deferred due to wash sales
of $14,472, and unrealized appreciation of $4,334.
(6) Includes capital loss carryover and tax losses deferred due to wash sales
of $174,110, and unrealized depreciation of $18,040.
On November 22, 2002, the Equity Income and Small Cap Select Funds acquired
substantially all of the assets of the Growth & Income and Emerging Growth
Common Trust Funds (sponsored by U.S. Bank), respectively, in exchange for Class
Y shares of the respective First American Funds. The following table illustrates
the specifics of the mergers (000):
<Table>
<Caption>
ACQUIRED SHARES ISSUED TO
FUND'S NET SHAREHOLDERS OF ACQUIRING FUND COMBINED TAX STATUS
ACQUIRED FUND ACQUIRING FUND ASSET ACQUIRED FUND NET ASSETS NET ASSETS OF TRANSFER
- -----------------------------------------------------------------------------------------------------------------------------------
Growth & Income Common First American Equity
Trust Fund Income (1)
Class Y Class Y $ 259,049 (2) 24,188 $ 1,088,937 $ 1,347,986 Non-taxable
Emerging Growth C First American Small Cap
Common Trust Fund Select (1)
Class Y Class Y 129,674 (3) 10,235 604,122 733,796 Non-taxable
</Table>
(1) Accounting survivor.
(2) Includes unrealized depreciation of $7,163.
(3) Includes unrealized appreciation of $3,452.
128
<Page>
On October 25, 2002, the Large Cap Growth Opportunities, Mid Cap Growth
Opportunities, and Large Cap Growth Opportunities Funds acquired substantially
all of the assets of the Equity Growth A, Special Equity Growth B and Common
Stock (KS) Common Trust Funds (sponsored by U.S. Bank), respectively, in
exchange for Class Y shares of the respective First American Funds. The
following table illustrates the specifics of the mergers (000):
<Table>
<Caption>
ACQUIRED SHARES ISSUED TO
FUND'S NET SHAREHOLDERS OF ACQUIRING FUND COMBINED TAX STATUS
ACQUIRED FUND ACQUIRING FUND ASSETS ACQUIRED FUND NET ASSETS NET ASSETS OF TRANSFER
- -----------------------------------------------------------------------------------------------------------------------------------
Equity Growth A Common First American Large Cap
Trust Growth Opportunities (1)
Class Y Class Y $ 258,080 (2) 11,944 $ 374,478 $ 648,179 Non-taxable
Common Stock (KS) First American Large Cap
Common Trust Growth Opportunities (1)
Class Y Class Y 15,621 (3) 733
Special Equity Growth B First American Mid Cap
Common Trust Growth Opportunities (1)
Class Y Class Y 245,348 (4) 8,454 611,311 856,659 Non-taxable
</Table>
(1) Accounting survivor.
(2) Includes unrealized depreciation of $12,067.
(3) Includes unrealized appreciation of $9,464.
(4) Includes unrealized depreciation of $4,760.
On May 15, 2002, shareholders of the Relative Value Fund, Growth & Income
Fund, and Science & Technology Fund approved the Agreement and Plan of
Reorganization recommended by the board of directors, providing for the
merger into the Large Cap Value Fund, Equity Income Fund and Technology Fund,
respectively at the close of business May 17, 2002. Under the agreement and
Plan of Reorganization, Class A, Class B, Class C, Class S and Class Y shares
of Relative Value Fund, Growth & Income Fund and Science & Technology Fund
were exchanged for Class A, Class B, Class C, Class S and Class Y shares,
respectively, of the Large Cap Value Fund, Equity Income Fund, and Technology
Fund on a tax free basis. The following table illustrates the specifics of
the merger (000):
<Table>
<Caption>
ACQUIRED SHARES ISSUED TO ACQUIRING COMBINED
FUND'S SHAREHOLDERS OF FUND NET TAX STATUS
ACQUIRED FUND ACQUIRING FUND NET ASSETS ACQUIRED FUND NET ASSETS ASSETS OF TRANSFER
- -----------------------------------------------------------------------------------------------------------------------------
First American First American
Relative Value Large Cap Value (1) 526,014 (2) 967,283 1,493,297 Non-taxable
Class A Class A 1,960
Class B Class B 729
Class C Class C 5
Class S Class S 2,086
Class Y Class Y 25,675
First American First American
Growth & Income Equity Income (1) 613,957 (3) 521,078 1,135,035 Non-taxable
Class A Class A 11,570
Class B Class B 913
Class C Class C 24
Class S Class S 3,648
Class Y Class Y 31,843
First American First American
Science & Technology Technology (1) 30,411 (4) 134,706 165,117 Non-taxable
Class A Class A 167
Class B Class B 599
Class C Class C 26
Class S Class S 401
Class Y Class Y 2,708
</Table>
(1) Accounting survivor.
(2) Includes unrealized appreciation of $134,158.
(3) Includes capital loss carryover and tax losses deferred due to wash sales
of $23,817 and unrealized depreciation of $70,265.
(4) Includes capital loss carryover and tax losses deferred due to wash sales
of $73,530 and unrealized depreciation of $769.
129
<Page>
TAX NOTICE
THE INFORMATION SET FORTH BELOW IS FOR EACH FUND'S FISCAL YEAR AS REQUIRED
BY FEDERAL LAWS. SHAREHOLDERS, HOWEVER, MUST REPORT DISTRIBUTIONS ON A
CALENDAR YEAR BASIS FOR INCOME TAX PURPOSES, WHICH MAY INCLUDE DISTRIBUTIONS
FOR PORTIONS OF TWO FISCAL YEARS OF A FUND. ACCORDINGLY, THE INFORMATION
NEEDED BY SHAREHOLDERS FOR INCOME TAX PURPOSES WILL BE SENT IN EARLY 2004 ON
FORM 1099. PLEASE CONSULT YOUR TAX ADVISOR FOR PROPER TREATMENT OF THIS
INFORMATION.
Dear First American Shareholders:
For the fiscal year ended September 30, 2003, each Fund has designated
long-term capital gain dividends, dividends qualifying for the corporate
received deduction, and qualified dividend income with regard to
distributions paid during the year as follows:
<Table>
<Caption>
LONG TERM ORDINARY CORPORATE
CAPITAL GAINS INCOME TOTAL DIVIDENDS QUALIFIED QUALIFIED
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS RECEIVED DIVIDEND DIVIDEND
(TAX BASIS)(a)(e) (TAX BASIS)(b)(e) (TAX BASIS)(e) DEDUCTION(c)(e) INCOME(e) (000) INCOME(c)(d)(e)
- -----------------------------------------------------------------------------------------------------------------------------------
Technology Fund --% --% --% --% $ 48 --%
International Fund -- -- -- -- 14,439 --
Small Cap Growth
Opportunities Fund -- -- -- -- 442 --
Small Cap Select Fund -- -- -- -- 1,251 --
Small Cap Value Fund 31 69 100 100 1,401 100
Mid Cap Growth
Opportunities Fund -- -- -- -- 3,403 --
Mid Cap Value Fund -- 100 100 100 2,520 83
Large Cap Growth
Opportunities Fund -- 100 100 100 5,714 100
Large Cap Select Fund -- 100 100 44 387 100
Large Cap Value Fund -- 100 100 100 13,009 89
Balanced Fund -- 100 100 42 2,654 27
Equity Income Fund -- 100 100 100 19,783 79
</Table>
(a) and (b) are based on a percentage of the Fund's total distributions.
(c) is based on a percentage of ordinary income distributions of the Fund.
(d) For the fiscal year ended September 30, 2003 certain dividends paid by the
funds may be subject to a maximum tax rate of 15%, as provided for by the
Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to
designate the maximum amounts as taxed at a maximum rate of 15%. Complete
information will be computed and reported in conjunction with your 2003 Form
1099-Div. As of September 30, 2003, the calendar year to date percentages
were as follows: Technology, International, Small Cap Growth Opportunities,
Small Cap Select, Small Cap Value, Mid Cap Growth Opportunities, Mid Cap
Value, Large Cap Growth Opportunities, Large Cap Select, Large Cap Value,
Balanced and Equity Income Funds were 0%, 0%, 0%, 0%, 100%, 0%, 100%, 100%,
100%, 100%, 37% and 100%, respectively.
(e) Real Estate Securities Fund is not shown due to the fact that the tax year
end is December 31st.
(f) The International Fund has elected to pass through to shareholders
foreign taxes under Section 853 of the Internal Revenue Code. Foreign
taxes paid and foreign source income for the Fund was $2,096,214 and
$21,445,321, respectively.
HOW TO OBTAIN A COPY OF THE FUNDS' PROXY VOTING POLICIES
A description of the policies and procedures that the Funds use to determine
how to vote proxies relating to portfolio securities is available (1)
without charge upon request by calling 800.677.FUND; (2) at
firstamericanfunds.com; and (3) on the U.S. Securities and Exchange
Commission's website at sec.gov.
130
<Page>
Directors and Officers of the Funds
Independent Directors
<Table>
<Caption>
OTHER
POSITION(S) TERM OF OFFICE NUMBER OF PORTFOLIOS DIRECTORSHIPS
NAME, ADDRESS, AND HELD AND LENGTH OF PRINCIPAL OCCUPATION(S) IN FUND COMPLEX HELD BY
YEAR OF BIRTH WITH FUND TIME SERVED DURING PAST 5 YEARS OVERSEEN BY DIRECTOR DIRECTOR +
- ------------------------------------------------------------------------------------------------------------------------------------
Benjamin R. Director Term expiring earlier Senior Financial First American Funds None
Field III, of death, resignation, Advisor, Bemis Company, Complex: twelve
800 Nicollet Mall, removal, Inc. since 2002; Senior registered investment
Minneapolis, MN disqualification, or Vice President, Chief companies, including
55402 (1939) successor duly elected Financial Officer and sixty one portfolios
and qualified. Director Treasurer, Bemis,
of FAIF, since through 2002
September 2003
Mickey P. Foret, Director Term expiring earlier Consultant to Northwest First American Funds ADC
800 Nicollet Mall, of death, resignation, Airlines, Inc. since Complex: twelve Telecommunications,
Minneapolis, MN removal, 2002; Executive Vice registered investment Inc., URS
55402 (1946) disqualification, or President and Chief companies, including Corporation,
successor duly elected Financial Officer, sixty one portfolios Champion Airlines,
and qualified. Director Northwest Airlines, Inc.
of FAIF since September through 2002
2003
Roger A. Gibson, Director Term expiring earlier Vice President, Cargo - First American Funds None
800 Nicollet Mall, of death, resignation, United Airlines, since Complex: twelve
Minneapolis, MN removal, July 2001; Vice registered investment
55402 (1946) disqualification, or President, North companies, including
successor duly elected America - Mountain sixty one portfolios
and qualified. Director Region, United
of FAIF since October Airlines, prior to July
1997 2001
Victoria J. Herget, Director Term expiring earlier Investment consultant First American Funds None
800 Nicollet Mall, of death, resignation, and non-profit board Complex: twelve
Minneapolis, MN removal, member since 2001; registered investment
55402 (1952) disqualification, or Managing Director of companies, including
successor duly elected Zurich Scudder sixty one portfolios
and qualified. Director Investments through
of FAIF since September 2001
2003
Leonard W. Kedrowski, Director Term expiring earlier Owner, Executive and First American Funds None
800 Nicollet Mall, of death, resignation, Management Consulting, Complex: twelve
Minneapolis, MN removal, Inc., a management registered investment
55402 (1941) disqualification, or consulting firm; former companies, including
successor duly elected Chief Executive sixty one portfolios
and qualified. Director Officer, Creative
of FAIF since November Promotions
1993 International, LLC, a
promotional award
programs and products
company, through
October 2003; Board
member, GC McGuiggan
Corporation (DBA Smyth
Companies), a label
printer; Advisory Board
member, Designer Doors,
manufacturer of
designer doors, through
2002; acted as CEO of
Graphics Unlimited
Director through 1998
Richard K. Riederer, Director Term expiring earlier Retired; Director, First American Funds None
800 Nicollet Mall, of death, resignation, President and Chief Complex: twelve
Minneapolis, MN removal, Executive Officer, registered investment
55402 (1944) disqualification, or Weirton Steel through companies, including
successor duly elected 2001 sixty one portfolios
and qualified. Director
of FAIF since August
2001
</Table>
131
<Page>
<Table>
<Caption>
OTHER
POSITION(S) TERM OF OFFICE NUMBER OF PORTFOLIOS DIRECTORSHIPS
NAME, ADDRESS, AND HELD AND LENGTH OF PRINCIPAL OCCUPATION(S) IN FUND COMPLEX HELD BY
YEAR OF BIRTH WITH FUND TIME SERVED DURING PAST 5 YEARS OVERSEEN BY DIRECTOR DIRECTOR
- ------------------------------------------------------------------------------------------------------------------------------------
Joseph D. Strauss, Director Term expiring earlier Owner and President, First American Funds None
800 Nicollet Mall, of death, resignation, Excensus (TM) LLC, a Complex: twelve
Minneapolis, MN removal, consulting firm, since registered investment
55402 (1940) disqualification, or 2001; Owner and companies, including
successor duly elected President, Strauss sixty one portfolios
and qualified. Director Management Company, a
of FAIF since April Minnesota holding
1991 company for various
organizational
management business
ventures; Owner,
Chairman and Chief
Executive Officer,
Community Resource
Partnerships, Inc., a
strategic planning,
operations management,
government relations,
transportation planning
and public relations
organization; attorney
at law
Virginia L. Stringer, Chair; Chair Term three years. Owner and President, First American Funds None
800 Nicollet Mall, Director Directors Term expiring Strategic Management Complex: twelve
Minneapolis, MN earlier of death, Resources, Inc., a registered investment
55402 (1944) resignation, removal, management consulting companies, including
disqualification, or firm; Executive sixty one portfolios
successor duly elected Consultant for State
and qualified. Chair of Farm Insurance Company
FAIF's Board since
September 1997;
Director of FAIF since
August 1987
James M. Wade, Director Term expiring earlier Owner and President, First American Funds None
800 Nicollet Mall, of death, resignation, Jim Wade Homes, a Complex: twelve
Minneapolis, MN removal, homebuilding company, registered investment
55402 (1943) disqualification, or since 1999 companies, including
successor duly elected sixty one portfolios
and qualified. Director
of FAIF since August
2001
</Table>
+ Includes only directorships in a company with a class of securities
registered pursuant to Section 12 of the Securities Exchange Act or subject
to the requirements of Section 15(d) of the Securities Exchange Act, or any
company registered as an investment company under the Investment Company
Act.
The Statement of Additional Information (SAI) includes additional information
about fund directors and is available upon request without charge by calling
800-677-FUND or writing to First American Funds, P.O. Box 1330, Minneapolis,
Minnesota, 55440-1330.
132
<Page>
Officers
<Table>
<Caption>
POSITION(S) TERM OF OFFICE
NAME, ADDRESS, AND HELD AND LENGTH OF
YEAR OF BIRTH WITH FUND TIME SERVED PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas S. Schreier, Jr., President Re-elected by the Board Chief Executive Officer of U.S. Bancorp Asset
U.S. Bancorp Asset annually; President of FAIF Management, Inc. since May 2001; Chief Executive
Management, Inc., since February 2001 Officer of First American Asset Management from
800 Nicollet Mall, December 2000 through May 2001 and of Firstar
Minneapolis, MN Investment & Research Management Company from
55402 (1962) * February 2001 through May 2001; Senior Managing
Director and Head of Equity Research of U.S. Bancorp
Piper Jaffray from October 1998 through December
2000; prior to October 1998, Senior Airline Equity
Analyst and a Director in the Equity Research
Department, Credit Suisse First Boston
Mark S. Jordahl, Vice Re-elected by the Board Chief Investment Officer of U.S. Bancorp Asset
U.S. Bancorp Asset President- annually; Vice President - Management, Inc. since September 2001; President and
Management, Inc. Investments Investments of FAIF since Chief Investment Officer, ING Investment
800 Nicollet Mall, September 2001 Management - Americas, September 2000 to June 2001;
Minneapolis, MN Senior Vice President and Chief Investment Officer,
55402 (1960) * ReliaStar Financial Corp., January 1998 to
September 2000
Jeffery M. Wilson, Vice Re-elected by the Board Senior Vice President of U.S. Bancorp Asset
U.S. Bancorp Asset President- annually; Vice President - Management since May 2001; prior thereto, Senior
Management, Inc. Administration Administration of FAIF since Vice President of First American Asset Management
800 Nicollet Mall, March 2000
Minneapolis, MN
55402 (1956) *
Robert H. Nelson, Treasurer Re-elected by the Board Senior Vice President of U.S. Bancorp Asset
U.S. Bancorp annually; Treasurer of FAIF Management since May 2001; prior thereto, Senior
Asset Management, Inc. since March 2000 Vice President of First American Asset Management
800 Nicollet Mall, since 1998 and of Firstar Investment & Research
Minneapolis, MN Management Company since February 2001; Senior Vice
55402 (1963) * President of Piper Capital Management Inc. through
1998
James D. Alt, Secretary Re-elected by the Board Partner, Dorsey & Whitney LLP, a Minneapolis-based
50 South Sixth Street, annually; Assistant Secretary of law firm
Suite 1500, FAIF from September 1998 through
Minneapolis, MN June 2002. Secretary of FAIF
55402 (1951) since June 2002
Michael J. Radmer, Assistant Re-elected by the Board Partner, Dorsey & Whitney LLP, a Minneapolis-based
50 South Sixth Street, Secretary annually; Assistant Secretary of law firm
Suite 1500, FAIF since March 2000; Secretary
Minneapolis, MN of FAIF from September 1999
55402 (1945) through March 2000
Kathleen L. Prudhomme, Assistant Re-elected by the Board Partner, Dorsey & Whitney LLP, a Minneapolis-based
50 South Sixth Street, Secretary annually; Assistant Secretary of law firm
Suite 1500, FAIF since September 1998
Minneapolis, MN
55402 (1953)
James R. Arnold, Assistant Re-elected by the Board Vice President, U.S. Bancorp Fund Services, LLC
615 E. Michigan Street, Secretary annually; Assistant Secretary of since March 2002; Senior Administration Services
Milwaukee, WI FAIF since June 2003 Manager, UMB Fund Services, Inc. through March 2002
53202 (1957) *
Richard J. Ertel, Assistant Re-elected by the Board Disclosure Counsel, U.S. Bancorp Asset Management,
U.S. Bancorp Secretary annually; Assistant Secretary of Inc. since May 2003; Associate Counsel, Hartford
Asset Management, Inc. FAIF since June 2003 Life and Accident Insurance Company from April 2001
800 Nicollet Mall, through May 2003; Attorney and Law Clerk, Fortis
Minneapolis, MN Financial Group, through March 2001
55402 (1967) *
Douglas G. Hess, Assistant Re-elected by the Board Vice President, U.S. Bancorp Fund Services, LLC
615 E. Michigan Street, Secretary annually; Assistant Secretary of since November 2002; prior thereto, Assistant Vice
Milwaukee, WI FAIF since September 2001 President, Fund Compliance Administrator, U.S.
53202 (1967) * Bancorp Fund Services, LLC
</Table>
* Messrs. Schreier, Jordahl, Wilson, Nelson, and Ertel are each officers of
U.S. Bancorp Asset Management, Inc., which serves as investment advisor and
co-administrator for FAIF. Messrs. Hess and Arnold are officers of U.S.
Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which
serves as co-administrator for FAIF.
133
<Page>
BOARD OF DIRECTORS First American Investment Funds, Inc.
Virginia Stringer
Chairperson of First American Investment Funds, Inc.
Owner and President of Strategic Management Resources, Inc.
Benjamin Field III
Director of First American Investment Funds, Inc.
Senior Financial Advisor to, and formerly Senior Vice President, Chief Financial
Officer, and Treasurer of, Bemis Company, Inc.
Mickey Foret
Director of First American Investment Funds, Inc.
Consultant to, and formerly Executive Vice President and Chief Financial Officer
of, Northwest Airlines, Inc.
Roger Gibson
Director of First American Investment Funds, Inc.
Vice President, Cargo-United Airlines
Victoria Herget
Director of First American Investment Funds, Inc.
Investment Consultant; former Managing Director of Zurich Scudder Investments
Leonard Kedrowski
Director of First American Investment Funds, Inc.
Owner and President of Executive and Management Consulting, Inc.
Richard Riederer
Director of First American Investment Funds, Inc.
Retired; former President and Chief Executive Officer of Weirton Steel
Joseph Strauss
Director of First American Investment Funds, Inc.
Former Chairman of First American Investment Funds, Inc.
Owner and President of Strauss Management Company
James Wade
Director of First American Investment Funds, Inc.
Owner and President of Jim Wade Homes
The First American Investment Funds' Board of Directors is Comprised entirely of
independent directors.
<Page>
[FIRST AMERICAN FUNDS(TM) LOGO]
DIRECT FUND CORRESPONDENCE TO:
FIRST AMERICAN FUNDS
P.O. Box 1330
Minneapolis, MN 55440-1330
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the corporation and are not intended
to be a forecast of future events, a guarantee of future results, nor investment
advice. Further, there is no assurance that certain securities will remain in or
out of each Fund's portfolio. The views expressed in this report reflect those
of the portfolio managers only through the period ended September 30, 2003. The
portfolio managers' views are subject to change at any time based upon market or
other conditions.
Please refer to the prospectus, which contains more complete information on
First American Funds, including risks, fees, and expenses. Please read it
carefully before investing or sending money. This report must be preceded or
accompanied by a current prospectus.
Past performance does not guarantee future results. The principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
INVESTMENT ADVISOR
U.S. BANCORP ASSET MANAGEMENT, INC.
800 Nicollet Mall
Minneapolis, Minnesota 55402
CO-ADMINISTRATORS
U.S. BANCORP ASSET MANAGEMENT, INC.
800 Nicollet Mall
Minneapolis, Minnesota 55402
U.S. BANCORP FUND SERVICES, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
CUSTODIAN
U.S. BANK NATIONAL ASSOCIATION
180 East Fifth Street
St. Paul, Minnesota 55101
DISTRIBUTOR
QUASAR DISTRIBUTORS, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
220 South Sixth Street
Suite 1400
Minneapolis, Minnesota 55402
COUNSEL
DORSEY & WHITNEY LLP
50 South Sixth Street
Suite 1500
Minneapolis, Minnesota 55402
FIRST AMERICAN FUNDS
P.O. Box 1330 Bulk Rate
Minneapolis, MN 55440-1330 U.S. Postage
Paid
In an attempt to reduce shareholder Mpts, MN
costs and help eliminate duplication, Permit No. 26388
First American Funds will try to limit
their mailing to one report for each USPS Mailer 887
address that lists one or more Approved Poly
shareholders with the same last name. If
you would like additional copies, please
call First American Investor Services at
800.677.FUND or visit firstamericanfunds.com.
0215-03 11/2003 AR-EQUITY
<Page>
ITEM 2--CODE OF ETHICS
RESPONSE: The registrant has adopted a code of ethics (designated as the "Code
of Ethical Conduct") that applies to its principal executive officer and
principal financial officer. The registrant undertakes to furnish a copy of such
Code of Ethical Conduct to any person upon request, without charge, by calling
1-800-677-3863.
ITEM 3--AUDIT COMMITTEE FINANCIAL EXPERT
RESPONSE: The registrant's Board of Directors has determined that Leonard
Kedrowski, Benjamin Field, and Mickey Foret, members of the registrant's Audit
Committee, are each an "audit committee financial expert" and are "independent,"
as these terms are defined in this Item. This designation will not increase the
designees' duties, obligations or liability as compared to their duties,
obligations and liability as members of the Audit Committee and of the Board of
Directors.
ITEM 4--PRINCIPAL ACCOUNTANT FEES AND SERVICES
RESPONSE: Not required for annual reports filed for periods ending before
December 15, 2003.
ITEM 5--AUDIT COMMITTEE OF LISTED REGISTRANTS
RESPONSE: Not applicable to the registrant.
ITEM 6 - Reserved.
ITEM 7--DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
RESPONSE: Not applicable to the registrant.
ITEM 8 - Reserved.
ITEM 9--CONTROLS AND PROCEDURES
(a) RESPONSE: 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 the registrant's disclosure controls and procedures.
(b) RESPONSE: There were no changes in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal half-year that have
<Page>
materially affected, or are reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 10 - EXHIBITS
10(a) - Code of Ethical Conduct
RESPONSE: Attached hereto.
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.
First American Investment Funds, Inc.
By /s/ Thomas S. Schreier, Jr.
---------------------------
Thomas S. Schreier, Jr.
President
Date: December 8, 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: December 8, 2003
By /s/ Jonathan P. Lillemoen
---------------------------
Jonathan P. Lillemoen
Director, USBAM Fund Treasury
Date: December 8, 2003