<Page>
-----------------------------
OMB APPROVAL
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OMB Number: 3235-0570
Expires: November 30, 2005
Estimated average burden
hours per response....... 5.0
-----------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05309
---------------------------------------------
First American Investment Funds, Inc.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
800 Nicollet Mall Minneapolis, MN 55402
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jonathan P. Lillemoen 800 Nicollet Mall Minneapolis, MN 55402
- -------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-677-3863
----------------------------
Date of fiscal year end: September 30, 2003
--------------------------
Date of reporting period: 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>
[FIRST AMERICAN FUNDS(TM) LOGO]
2003
ANNUAL REPORT
TAX FREE INCOME FUNDS
[GRAPHIC]
"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 31
Schedule of Investments 32
Statements of Assets and Liabilities 88
Statements of Operations 90
Statements of Changes in Net Assets 92
Financial Highlights 96
Notes to Financial Statements 104
Notice to Shareholders 113
</Table>
INCOME FROM TAX-EXEMPT FUNDS MAY BE
SUBJECT TO STATE AND LOCAL TAXES AND A
PORTION OF INCOME MAY BE SUBJECT TO THE
STATE AND/OR FEDERAL ALTERNATIVE MINIMUM
TAX FOR CERTAIN INVESTORS. FEDERAL
INCOME TAX RULES WILL APPLY TO ANY
CAPITAL GAINS DISTRIBUTIONS.
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>
ARIZONA TAX FREE FUND
Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL
INCOME TAX AND ARIZONA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT
INVESTMENT RISK
First American Arizona Tax Free Fund Class Y shares returned 3.86% for the
fiscal year (Class A shares returned 3.61% at net asset value for the same
period). By comparison, the Fund's benchmark, the Lehman Municipal Bond Index*,
returned 3.89%.
The municipal market experienced bouts of volatility over the course of the
fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell
from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising
back to 5.18% in August. One-month total return for the broad municipal market
in July was the worst in nine years, while September's rally produced the
highest one-month total return in eight years. Because of this market
volatility, it was important to maintain our focus on long-term strategies.
Significant shifts or reversals in strategy during volatile markets can
negatively impact performance.
Although national municipal new issuance was up 13% through September 30 vs.
2002, Arizona supply was down 6.4%. This kept prices high, but hindered the
search for attractive purchase opportunities.
We typically maintained a slightly longer duration than the stated benchmark
primarily to capture any additional yield benefits. This approach provides the
greatest benefit during a falling interest-rate environment, which existed
through mid-June. Duration is a time measure of interest-rate risk exposure that
estimates how much a bond, or a bond fund's price, fluctuates with changes in
interest rates. The longer the duration, the more price volatility you can
expect in the fund's price per share.
The Fed continued its efforts to stimulate the economy by keeping short-term
borrowing costs low. This had a negative effect on cash and short-term
investments as yields fell below 1.00%. As such, the Fund's decision to reduce
its allocation to cash and short-term securities in favor of longer maturing,
higher income-producing assets helped the Fund's performance.
The significant reduction of our exposure to uninsured multifamily housing bonds
in the Arizona market was beneficial to the Fund. This sector suffered as
traditional renters were able to buy homes due to low interest rates, the
economic downturn, and increased competition. However, our remaining exposure to
multifamily housing bonds negatively impacted the performance. The Fund's
overweighting in the health/hospital and general obligation sectors, as well as
its commitment to high-yielding BBB and nonrated securities, was a positive
contributing factor to Fund performance.
2
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
------------------
1 YEAR 2/1/2000
Class A NAV 3.61% 8.46%
Class A POP -0.82% 7.19%
Class C NAV 3.10% 8.02%
Class C POP 1.05% 7.73%
Class Y 3.86% 8.72%
Lehman Municipal Bond Index(3) 3.89% 8.22%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the federal alternative minimum tax for
certain investors. Capital gains distributions, if any, will be subject to
tax.
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 4.25% for Class A
shares and 1.00% for Class C shares, and the maximum contingent deferred
sales charge ("CDSC") for Class C shares for the relevant period. Maximum
CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all
distributions at NAV.
(2) Performance for Class C shares is not presented. Performance for this class
is lower due to higher expenses.
(3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities of one year or more.
(4) The performance since inception of the index for each class is calculated
from the month end following the inception of the class.
3
<Page>
CALIFORNIA INTERMEDIATE TAX FREE FUND
Investment Objective: CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX
AND CALIFORNIA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF
CAPITAL
First American California Intermediate Tax Free Fund Class Y shares returned
2.83% for the fiscal year (Class A shares returned 2.58% at net asset value for
the same period). By comparison, the Fund's benchmark, the Lehman 7-Year
Municipal Bond Index*, returned 4.71%.
Although municipal yields for maturities five years and longer finished within
0.30% of where they were a year ago, the market experienced bouts of volatility
in the fiscal year ended September 30, 2003. Yields on seven-year AAA-rated
bonds went from a high in October 2002 of 3.56% to a low of 2.38% in mid-June
before going back up to 3.50% in early August. One-month total return for the
broad municipal market in July was the worst in nine years, while September's
rally produced the highest one-month total return in eight years.
California was the poster child for state woes as political gridlock, budget
deficits, and a gubernatorial recall election rocked the state. Financial
uncertainty clouds the horizon as a new governor takes office to grapple with an
ever-ballooning budget deficit.
All three major credit rating agencies dropped the state of California's
ratings during the fiscal year. Moody's dropped the rating to A3 from A1 with
a negative outlook, Standard & Poor's dropped the rating to BBB from A, and
Fitch dropped the state to A from AA. California now has the lowest credit
rating of any state.
Declining credit quality at the state level and heavy bond issuance (up 60% in
2003 vs. 13% nationwide) combined to dramatically increase the yield required on
California bonds relative to the rest of the country. This, in turn, caused
California bonds (and funds) to underperform their national counterparts. This
is a major cause of the underperformance relative to the benchmark index.
Due to the Fed keeping short-term interest rates low, California municipal
yields for bonds with maturities of five years and shorter were close to
unchanged from the beginning to the end of the Fund's fiscal year, while
yields on longer bonds rose modestly. The Fund maintains relatively equal
holdings across a range of maturities. This helps insulate it from volatility
due to changes in yields across the maturity spectrum. The segment of the
Fund situated in 12- to 15-year maturities had the highest absolute
performance, while the 10-year segment of the Fund underperformed.
We typically maintained a duration slightly longer than our benchmark (around
110%) primarily to capture any additional yield benefits. This approach provides
the greatest benefit during a falling interest-rate environment, which existed
through mid-June. Duration is a time measure of interest-rate risk exposure that
estimates how much a bond, or a bond fund's price, fluctuates with changes in
interest rates. The longer the duration, the more price volatility you can
expect in the fund's price per share.
Many of the higher-yielding sectors and holdings performed well during the year.
The Fund's hospital and healthcare holdings were among the best performing
sectors. General obligation and lease bonds were two sectors that
underperformed relative to other sectors in the Fund.
4
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(3)
------------------
1 YEAR 5 YEARS 8/8/1997
Class A NAV 2.58% 4.83% 5.37%
Class A POP 0.26% 4.36% 4.98%
Class Y 2.83% 4.95% 5.45%
Lehman 7-Year Municipal Bond Index(2) 4.71% 5.84% 6.27%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the federal alternative minimum tax for
certain investors. Capital gains distributions, if any, will be subject to
tax.
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 2.25% for Class A
shares. Total returns assume reinvestment of all distributions at NAV.
(2) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities of one year or more.
(3) The performance since inception of the index for each class is calculated
from the month end following the inception of the class.
5
<Page>
CALIFORNIA TAX FREE FUND
Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL
INCOME TAX AND CALIFORNIA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT
INVESTMENT RISK
First American California Tax Free Fund Class Y shares returned 3.11% for the
fiscal year (Class A shares returned 2.85% at net asset value for the same
period). By comparison, the Fund's benchmark, the Lehman Municipal Bond Index*,
returned 3.89%.
The municipal market experienced bouts of volatility over the course of the
fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell
from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising
back to 5.18% in August. One-month total return for the broad municipal market
in July was the worst in nine years, while September's rally produced the
highest one-month total return in eight years. Because of this market
volatility, it was important to maintain our focus on long-term strategies.
Significant shifts or reversals in strategy during volatile markets can
negatively impact performance.
California was the poster child for state woes as political gridlock, budget
deficits, and a gubernatorial recall election rocked the state. Financial
uncertainty clouds the horizon as a new governor takes office to grapple with an
ever-ballooning budget deficit.
All three major credit rating agencies dropped the state of California's
ratings during the fiscal year. Moody's dropped the rating to A3 from A1 with
a negative outlook, Standard & Poor's dropped the rating to BBB from A, and
Fitch dropped the state to A from AA. California now has the lowest credit
rating of any state.
California municipal bond issuance has led the nation to record issuance
year-to-date. Through the fiscal year ended September 30, 2003, issuance was up
60% over same period 2002. Year-to-date, California municipalities had issued
nearly $49 billion in debt, the second highest issuing state is New York with
$29 billion.
The budgetary concerns, the rating downgrades, and high issuance have caused the
relative value of California municipal bonds compared to other states' municipal
bonds to deteriorate. This, in turn, caused California bonds (and funds) to
underperform their national counterparts. This is the primary cause of the
Fund's underperformance relative to the the benchmark index.
The Fed continued its efforts to stimulate the economy by keeping short-term
borrowing costs low. This had a negative effect on cash and short-term
investments as yields fell below 1.00%. As such, the Fund's decision to reduce
its allocation to cash and short-term securities in favor of longer maturing,
higher income-producing assets helped the Fund's performance.
For most of the year the duration of the Fund was held at approximately 115% of
its benchmark. Over the last quarter of the fiscal year the duration was lowered
to approximately 107% of its benchmark. We typically maintain a slightly longer
duration than the benchmark primarily to capture any additional yield benefits.
This approach provides the greatest benefit during a falling interest-rate
environment, which existed through mid-June. Duration is a time measure of
interest-rate risk exposure that estimates how much a bond, or a bond fund's
price, fluctuates with changes in interest rates. The longer the duration, the
more price volatility you can expect in the fund's price per share.
We continued to emphasize insured, premium coupon bonds in the 15- to 20-year
maturity range for most of the year. However, as the bond market became more
volatile, these longer duration bonds were sold and replaced with bonds in
the five-year range. The Fund maintains relatively equal holdings across a
range of maturities. This helps insulate it from volatility due to changes in
yields across the maturity spectrum.
The Fund has a high representation of general obligation debt (not solely
supported by the general fund of the state) and revenue bonds and is fairly
diversified across revenue sectors.
6
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
------------------
1 YEAR 2/1/2000
Class A NAV 2.85% 8.70%
Class A POP -1.55% 7.43%
Class C NAV 2.45% 8.31%
Class C POP 0.43% 8.01%
Class Y 3.11% 8.95%
Lehman Municipal Bond Index(3) 3.89% 8.22%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the federal alternative minimum tax for
certain investors. Capital gains distributions, if any, will be subject to
tax.
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 4.25% for Class A
shares and 1.00% for Class C shares, and the maximum contingent deferred
sales charge ("CDSC") for Class C shares for the relevant period. Maximum
CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all
distributions at NAV.
(2) Performance for Class C shares is not presented. Performance for this class
is lower due to higher expenses.
(3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities of one year or more.
(4) The performance since inception of the index for each class is calculated
from the month end following the inception of the class.
7
<Page>
COLORADO INTERMEDIATE TAX FREE FUND
Investment Objective: CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX
AND COLORADO STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF
CAPITAL
First American Colorado Intermediate Tax Free Fund Class Y shares returned 3.71%
for the fiscal year (Class A shares returned 3.64% at net asset value for the
same period). By comparison, the Fund's benchmark, the Lehman 7-Year Municipal
Bond Index*, returned 4.71%.
Although municipal yields for maturities five years and longer finished within
0.30% of where they were a year ago, the market experienced bouts of volatility
in the fiscal year ended September 30, 2003. Yields on seven-year AAA-rated
bonds went from a high in October 2002 of 3.56% to a low of 2.38% in mid-June
before going back up to 3.50% in early August. One-month total return for the
broad municipal market in July was the worst in nine years, while September's
rally produced the highest one-month total return in eight years.
Although national municipal new issuance was up 13% at fiscal year end vs. 2002,
Colorado supply was down by nearly the same percentage. State revenue shortfalls
and tax cuts contributed to budgetary stress, necessitating spending cuts and a
reduction in reserve levels. Spikes in new issue supply created occasional
buying opportunities.
Due to the Fed's continued efforts to stimulate the economy by keeping
short-term interest rates low, year-over-year municipal yields fell for bonds
with maturities of five years and shorter, but rose slightly for bonds with
maturities of seven years and longer. The Fund maintains relatively equal
holdings across a range of maturities. This helps insulate it from volatility
due to changes in yields across the maturity spectrum. The five- to 12-year
maturity segment and 20-year segments of the Fund had the highest absolute
performance. The one- to three-year maturity holdings underperformed the rest
of the maturity segments held in the Fund.
We typically maintained a slightly longer duration (105% to 110%) than our
benchmark primarily to capture any additional yield benefits. This approach
provides the greatest benefit during a falling interest-rate environment, which
existed through mid-June. Duration is a time measure of interest-rate risk
exposure that estimates how much a bond, or a bond fund's price, fluctuates with
changes in interest rates. The longer the duration, the more price volatility
you can expect in the fund's price per share.
Many of the higher-yielding sectors and holdings performed well during the year.
The Fund's hospital and healthcare holdings were among the best performing
sectors. Newly prerefunded bonds also performed well. General obligation bonds
were middle of the pack, while lease bonds were slight underperformers relative
to other sectors in the Fund.
8
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(3)
------------------
1 YEAR 5 YEARS 4/4/1994
Class A NAV 3.64% 4.83% 5.83%
Class A POP 1.28% 4.36% 5.57%
Class Y 3.71% 4.87% 5.83%
Lehman 7-Year Municipal Bond Index(2) 4.71% 5.84% 6.46%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the federal alternative minimum tax for
certain investors. Capital gains distributions, if any, will be subject to
tax.
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 2.25% for Class A
shares. Total returns assume reinvestment of all distributions at NAV.
(2) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities between six and eight years.
(3) The performance since inception of the index for each class is calculated
from the month end following the inception of the class.
9
<Page>
COLORADO TAX FREE FUND
Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL
INCOME TAX AND COLORADO STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT
INVESTMENT RISK
First American Colorado Tax Free Fund Class Y shares returned 3.78% for the
fiscal year (Class A shares returned 3.53% at net asset value for the same
period). By comparison, the Fund's benchmark, the Lehman Municipal Bond Index*,
returned 3.89%.
The municipal market experienced bouts of volatility over the course of the
fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell
from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising
back to 5.18% in August. One-month total return for the broad municipal market
in July was the worst in nine years, while September's rally produced the
highest one-month total return in eight years. Because of this market
volatility, it was important to maintain our focus on long-term strategies.
Significant shifts or reversals in strategy during volatile markets can
negatively impact performance.
Although national municipal new issuance was up 13% at fiscal year end vs. 2002,
Colorado supply was down by nearly the same percentage. State revenue shortfalls
and tax cuts contributed to budgetary stress, necessitating spending cuts and a
reduction in reserve levels. Spikes in new issue supply created occasional
buying opportunities.
We typically maintain a slightly longer duration than the stated benchmark
primarily to capture any additional yield benefits. This approach provides the
greatest benefit during a falling interest-rate environment, which existed
through mid-June. Duration is a time measure of interest-rate risk exposure that
estimates how much a bond, or a bond fund's price, fluctuates with changes in
interest rates. The longer the duration, the more price volatility you can
expect in the fund's price per share.
The Fed continued its efforts to stimulate the economy by keeping short-term
borrowing costs low. This had a negative effect on cash and short-term
investments as yields fell below 1.00%. As such, the Fund's decision to reduce
its allocation to cash and short-term securities in favor of longer maturing,
higher income-producing assets helped the Fund's performance.
Many of the higher-yielding sectors and holdings performed well during the year.
The Fund's overweight in the health/hospital and general obligation sectors had
a positive effect on the performance as well as its commitment to BBB-rated
securities. However, the Fund's overweight in the underperforming certificates
of participation sector had a negative impact on performance.
10
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
------------------
1 YEAR 2/1/2000
Class A NAV 3.53% 8.95%
Class A POP -0.89% 7.67%
Class C NAV 3.23% 8.55%
Class C POP 1.19% 8.26%
Class Y 3.78% 9.25%
Lehman Municipal Bond Index(3) 3.89% 8.22%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the federal alternative minimum tax for
certain investors. Capital gains distributions, if any, will be subject to
tax.
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 4.25% for Class A
shares and 1.00% for Class C shares, and the maximum contingent deferred
sales charge ("CDSC") for Class C shares for the relevant period. Maximum
CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all
distributions at NAV.
(2) Performance for Class C shares is not presented. Performance for this class
is lower due to higher expenses.
(3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities of one year or more.
(4) The performance since inception of the index for each class is calculated
from the month end following the inception of the class.
11
<Page>
INTERMEDIATE TAX FREE FUND
Investment Objective: CURRENT INCOME THAT IS EXEMPT FROM FEDERAL INCOME TAX TO
THE EXTENT CONSISTENT WITH PRESERVATION OF CAPITAL
First American Intermediate Tax Free Fund Class Y shares returned 3.90% for the
fiscal year (Class A shares returned 3.74% at net asset value for the same
period). By comparison, the Fund's benchmark, the Lehman Municipal 7-Year Bond
Index*, returned 4.71%.
Although municipal yields for maturities five years and longer finished within
0.30% of where they were a year ago, the market experienced bouts of volatility
in the fiscal year ended September 30, 2003. Yields on seven-year AAA-rated
bonds went from a high in October 2002 of 3.56% to a low of 2.38% in mid-June
before going back up to 3.50% in early August. One-month total return for the
broad municipal market in July was the worst in nine years, while September's
rally produced the highest one-month total return in eight years.
Due to the Fed's continued efforts to stimulate the economy by keeping
short-term borrowing costs low, year-over-year municipal yields fell for
bonds with maturities five years and shorter, but rose slightly for bonds
with maturities of seven years and longer. The Fund maintains relatively
equal holdings across a range of maturities. This helps insulate it from
volatility due to changes in yields across the maturity spectrum.
The largest segment of the Fund invested in five- to seven-year maturities had
the highest absolute performance. The 10-year maturity segment, which is the
next largest, underperformed the seven-year segment despite its higher yield and
duration. Fifteen-year bonds outperformed 10-year bonds but underperformed the
seven-year bonds.
We typically maintained a duration slightly longer than the Lehman benchmark
(105% to 110%) this past year primarily to capture any additional yield
benefits. This approach provides the greatest benefit during a falling
interest-rate environment, which existed through mid-June. Duration is a time
measure of interest-rate risk exposure that estimates how much a bond, or a
bond fund's price, fluctuates with changes in interest rates. The longer the
duration, the more price volatility you can expect in the fund's price per
share.
The Fund does use BBB and nonrated securities, including hospital, healthcare,
and continuing care retirement community bonds. These were among the best
performing sectors and positively impacted the Fund's performance. Prerefunded
and escrowed bonds had lower total returns, due mainly to their short maturity
and yield.
12
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(3)
------------------
1 YEAR 5 YEARS 10 YEARS 2/4/1994
Class A NAV 3.74% 4.95% 5.07% --
Class A POP 1.41% 4.48% 4.83% --
Class Y 3.90% 5.02% -- 5.09%
Lehman 7-Year Municipal Bond Index(2) 4.71% 5.84% 5.88% 6.13%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the federal alternative minimum tax for
certain investors. Capital gains distributions, if any, will be subject to
tax.
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 2.25% for Class A.
Total returns assume reinvestment of all distributions at NAV.
(2) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities between six and eight years.
(3) The performance since inception of the index for each class is calculated
from the month end following the inception of the class.
13
<Page>
MINNESOTA INTERMEDIATE TAX FREE FUND
Investment Objective: CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX
AND MINNESOTA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF
CAPITAL
First American Minnesota Intermediate Tax Free Fund Class Y shares returned
3.82% for the fiscal year (Class A shares returned 3.55% at net asset value for
the same period). By comparison, the Fund's benchmark, the Lehman 7-Year
Municipal Bond Index*, returned 4.71%.
Although municipal yields for maturities five years and longer finished within
0.30% of where they were a year ago, the market experienced bouts of volatility
in the fiscal year ended September 30, 2003. Yields on seven-year AAA-rated
bonds went from a high in October 2002 of 3.56% to a low of 2.38% in mid-June
before going back up to 3.50% in early August. One-month total return for the
broad municipal market in July was the worst in nine years, while September's
rally produced the highest one-month total return in eight years.
Although national municipal new issuance was up 13% at fiscal year end vs. 2002,
Minnesota supply was down by nearly the same percentage. This kept prices high
but hindered the search for attractive purchase opportunities. The state lost
one of its three AAA credit ratings in June, reflecting Moody's concern over use
of one-time revenue and accounting transfers. However, we remain comfortable
with Minnesota's long-term credit quality.
Due to the Fed's continued efforts to stimulate the economy by keeping
short-term interest rates low, year-over-year municipal yields fell for bonds
with maturities of five years and shorter, but rose slightly for bonds with
maturities of seven years and longer. The Fund maintains relatively equal
holdings across a range of maturities. This helps insulate it from volatility
due to changes in yields across the maturity spectrum.
The segment of the Fund with maturities 12 years and longer had the highest
absolute performance, helped by lack of long bond issuance in Minnesota. The
10-year maturity segment of the Fund underperformed the five-to seven-year
segment despite its higher yield and duration.
We typically maintained a duration slightly longer than our benchmark (105% to
110%) primarily to capture any additional yield benefits. This approach provides
the greatest benefit during a falling interest-rate environment, which existed
through mid-June. Duration is a time measure of interest-rate risk exposure that
estimates how much a bond, or a bond fund's price, fluctuates with changes in
interest rates. The longer the duration, the more price volatility you can
expect in the fund's price per share.
Many of the Fund's higher-yielding sectors and holdings performed well during
the year. The Fund's healthcare and electric utility holdings were among the
best performing sectors. Prerefunded and escrowed bonds had lower total returns,
due mainly to their short maturity and yield.
14
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(3)
------------------
1 YEAR 5 YEARS 2/25/1994
Class A NAV 3.55% 4.78% 5.08%
Class A POP 1.24% 4.30% 4.83%
Class Y 3.82% 4.84% 5.08%
Lehman 7-Year Municipal Bond Index(2) 4.71% 5.84% 6.13%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the Minnesota state and federal
alternative minimum tax for certain investors. Capital gains distributions,
if any, will be subject to tax.
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 2.25% for Class A
shares. Total returns assume reinvestment of all distributions at NAV.
(2) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities between six and eight years.
(3) The performance since inception of the index for each class is calculated
from the month end following the inception of the class.
15
<Page>
MINNESOTA TAX FREE FUND
Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL
INCOME TAX AND MINNESOTA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT
INVESTMENT RISK
First American Minnesota Tax Free Fund Class Y shares returned 4.16% for the
fiscal year (Class A shares returned 3.90% at net asset value for the same
period). By comparison, the Fund's benchmark, the Lehman Municipal Bond Index*,
returned 3.89%.
The municipal market experienced bouts of volatility over the course of the
fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell
from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising
back to 5.18% in August. One-month total return for the broad municipal market
in July was the worst in nine years, while September's rally produced the
highest one-month total return in eight years. Because of this market
volatility, it was important to maintain our focus on long-term strategies.
Significant shifts or reversals in strategy during volatile markets can
negatively impact performance.
The Fed continued its efforts to stimulate the economy by keeping short-term
borrowing costs low. This had a negative effect on cash and short-term
investments as yields fell below 1.00%. As such, the Fund's decision to reduce
its allocation to cash and short-term securities in favor of longer maturing,
higher income-producing assets helped the Fund's performance.
Minnesota is among the many states experiencing budget difficulties and the
threat of negative credit rating actions. In fact, Moody's downgraded the
state's general obligation debt from Aaa to Aa1 in June. This relatively minor
downgrade has had minimal, if any, impact on the state's cost of borrowing or on
the performance of the Fund.
Modest adjustments to duration and portfolio structure helped the Fund's
performance. Duration was reduced during July as interest rates were rising,
re-extended modestly in August when it appeared that rates had peaked, and
reduced again at the end of September after rates fell. Duration is a time
measure of interest-rate risk exposure that estimates how much a bond, or a bond
fund's price, fluctuates with changes in interest rates. The longer the
duration, the more price volatility you can expect in the fund's price per
share.
Other factors that positively impacted performance, relative to the benchmark,
included an overweight position in the hospital, general obligation, and housing
sectors, an overweight position in 15-year maturities and longer, and positions
in nonrated securities.
Factors that negatively impacted performance, relative to the benchmark,
included an overweight position in electric utilities and an underweight
position in five to 10-year maturities.
16
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
------------------
1 YEAR 5 YEARS 10 YEARS 8/1/1997 2/1/1999
Class A NAV 3.90% 4.77% 5.46% -- --
Class A POP -0.55% 3.86% 5.00% -- --
Class C NAV 3.41% -- -- -- 4.34%
Class C POP 1.44% -- -- -- 4.13%
Class Y 4.16% 5.03% -- 5.62% --
Lehman Municipal Bond Index(3) 3.89% 5.67% 6.03% 6.29% 5.88%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the Minnesota state and federal
alternative minimum tax for certain investors. Capital gains distributions,
if any, will be subject to tax.
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 4.25% for Class A
shares and 1.00% for Class C shares, and the maximum contingent deferred
sales charge ("CDSC") for Class C shares for the relevant period. Maximum
CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all
distributions at NAV.
On July 31, 1998, the Minnesota Tax Free Fund became the successor by merger
to the Piper Minnesota Tax-Exempt Fund, a series of Piper Funds Inc. Prior
to the merger, the First American Fund had no assets or liabilities.
Performance presented prior to July 31, 1998, represents that of the Piper
Minnesota Tax-Exempt Fund.
(2) Performance for Class C shares is not presented. Performance of this class
is lower due to higher expenses.
(3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities of one year or more.
(4) The performance since inception of the index for each class is calculated
from the month end following the inception of the class.
17
<Page>
MISSOURI TAX FREE FUND
Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL
INCOME TAX AND MISSOURI STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT
INVESTMENT RISK
First American Missouri Tax Free Fund Class Y shares returned 3.71% for the
fiscal year (Class A shares returned 3.45% at net asset value for the same
period). By comparison, the Fund's benchmark, the Lehman Municipal Bond Index*,
returned 3.89%.
The municipal market experienced bouts of volatility over the course of the
fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell
from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising
back to 5.18% in August. One-month total return for the broad municipal market
in July was the worst in nine years, while September's rally produced the
highest one-month total return in eight years. Because of this market
volatility, it was important to maintain our focus on long-term strategies.
Significant shifts or reversals in strategy during volatile markets can
negatively impact performance.
Missouri is facing a $1 billion deficit for fiscal year 2004, but plans to
address the deficit through a combination of budget cuts and tax increases. The
trading value of Missouri bonds has generally remained strong relative to the
rest of the country. The state has solid reserves and a history of strong
financial management.
Due to the Fed's continued efforts to stimulate the economy by keeping
short-term interest rates low, year-over-year municipal yields fell for bonds
with maturities of five years and shorter, but rose slightly for bonds with
maturities of seven years and longer. As a result, the 12- to 15-year maturity
segment of the Fund had the highest absolute performance and outperformed
national bonds. The 10- to 12-year segment of the Fund had a higher weighting
than the five to seven-year segment, which detracted from overall performance.
We typically maintained a duration slightly longer than our benchmark (around
105%) the past year primarily to capture any additional yield benefits. This
approach provides the greatest benefit during a falling interest-rate
environment, which existed through mid-June. Duration is a time measure of
interest-rate risk exposure that estimates how much a bond, or a bond fund's
price, fluctuates with changes in interest rates. The longer the duration,
the more price volatility you can expect in the fund's price per share.
18
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
------------------
1 YEAR 5 YEARS 10 YEARS 9/24/2001
Class A NAV 3.45% 4.83% 5.10% --
Class A POP -0.92% 3.92% 4.64% --
Class C NAV 3.05% -- -- 5.33%
Class C POP 1.00% -- -- 4.82%
Class Y 3.71% 5.14% 5.37% --
Lehman Municipal Bond Index(3) 3.89% 5.67% 6.03% 6.38%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the federal alternative minimum tax for
certain investors. Capital gains distributions, if any, will be subject to
tax.
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 4.25% for Class A
shares and 1.00% for Class C shares, and the maximum contingent deferred
sales charge ("CDSC") for Class C shares for the relevant period. Maximum
CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all
distributions at NAV.
On September 24, 2001, the Missouri Tax Free Fund became the successor by
merger to the Firstar Missouri Tax-Exempt Bond 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 Missouri Tax-Exempt Bond Fund. The Firstar Missouri
Tax-Exempt Bond Fund was organized on December 11, 2000, and, prior to that,
was a separate series of Mercantile Mutual Funds, Inc. The Mercantile fund
was organized on October 2, 1995, and, prior to that, was a separate series
of the ARCH Tax-Exempt Trust, which sold shares of the portfolio that were
similar to the current Class Y shares of the fund, which have no
distribution or shareholder servicing fees. Performance prior to October 2,
1995, reflects performance without such fees.
(2) Performance for Class C shares is not presented. Performance for this class
is lower due to higher expenses.
(3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities of one year or more.
(4) The performance since inception of the index for each class is calculated
from the month end following the inception of the class.
19
<Page>
NEBRASKA TAX FREE FUND
Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL
INCOME TAX AND NEBRASKA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT
INVESTMENT RISK
First American Nebraska Tax Free Fund Class Y shares returned 3.82% for the
fiscal year (Class A shares returned 3.57% at net asset value for the same
period). By comparison, the Fund's benchmark index, the Lehman Municipal Bond
Index*, returned 3.89%.
The municipal market experienced bouts of volatility over the course of the
fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell
from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising
back to 5.18% in August. One-month total return for the broad municipal market
in July was the worst in nine years, while September's rally produced the
highest one-month total return in eight years. Because of this market
volatility, it was important to maintain our focus on long-term strategies.
Significant shifts or reversals in strategy during volatile markets can
negatively impact performance.
Nebraska has been less impacted by the national recession than most states
because the state's economy is very dependent on agriculture, which provides
some economic stability during national slowdowns. The state has a history of
conservative financial management and has shown a willingness to respond
quickly to revenue shortfalls. While this helped municipal bonds issued
within the state to perform better than many other states facing economic
difficulties, it had minimal direct impact on the Fund's performance against
its benchmark.
We typically maintain a slightly longer duration than the stated benchmark
primarily to capture any additional yield benefits. This approach provides the
greatest benefit during a falling interest-rate environment, which existed
through mid-June. Duration is a time measure of interest-rate risk exposure that
estimates how much a bond, or a bond fund's price, fluctuates with changes in
interest rates. The longer the duration, the more price volatility you can
expect in the fund's price per share.
The Fed continued its efforts to stimulate the economy by keeping short-term
borrowing costs low. This had a negative effect on cash and short-term
investments as yields fell below 1.00%. As such, the Fund's decision to reduce
its allocation to cash and short-term securities in favor of longer maturing,
higher income-producing assets helped the Fund's performance.
Relative to the benchmark, the Fund's overweight in electric,
health/hospital, and general obligation sectors, as well as its 11%
commitment to nonrated securities, had a positive effect on performance. The
Fund's exposure of approximately 35% of its assets to bonds with 10- to
13-year maturities had a negative impact on the Fund, since securities with
these maturities underperformed the five-year, 15-year, and longer maturities.
20
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
------------------
1 YEAR 2/28/2001
Class A NAV 3.57% 6.62%
Class A POP -0.79% 4.87%
Class C NAV 3.10% 5.97%
Class C POP 1.07% 5.57%
Class Y 3.82% 6.84%
Lehman Municipal Bond Index(3) 3.89% 6.66%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the federal alternative minimum tax for
certain investors. Capital gains distributions, if any, will be subject to
tax.
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 4.25% for Class A
shares and 1.00% for Class C shares, and the maximum contingent deferred
sales charge ("CDSC") for Class C shares for the relevant period. Maximum
CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all
distributions at NAV.
(2) Performance for Class C shares is not presented. Performance of this class
is lower due to higher expenses.
(3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities of one year or more.
(4) The performance since inception of the index for each class is calculated
from the month end following the inception of the class.
21
<Page>
OHIO TAX FREE FUND
Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL
INCOME TAX AND OHIO STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT
INVESTMENT RISK
First American Ohio Tax Free Fund Class Y shares returned 3.65% for the fiscal
year (Class A shares returned 3.22% at net asset value for the same period). By
comparison, the Fund's benchmark, the Lehman Municipal Bond Index*, returned
3.89%.
Many states raised taxes and fees for the second consecutive year to close
budget deficits after cutting tax rates for seven years. Ohio had the largest
increase of sales and use taxes, generating $1.4 billion by raising the sales
tax rate to 6% from 5% for two years. In addition, many states have had their
credit ratings reduced as the weak economy takes its toll on revenue streams.
Ohio has escaped a rating reduction; however, Moody's does have a negative
outlook for the state, which means a downgrade is possible. State borrowing is
increasing, especially for education, as budgetary pressures continue. Ohio
municipal bond issuance is up 18.1% through the fiscal year ended September
30, 2003. Despite the weak economic picture, the threat of downgrade, and the
increased supply, the relative value of Ohio municipals to other state
municipals has not changed significantly.
For most of the fiscal year, the duration of the Fund was held between 117% and
120% of its benchmark. Over the last quarter of the fiscal year the duration was
lowered to approximately 109% of its benchmark. We typically maintain a longer
duration than the stated benchmark primarily to capture any additional yield
benefits. This approach provides the greatest benefit during a falling
interest-rate environment, which existed through mid-June. Duration is a time
measure of interest-rate risk exposure that estimates how much a bond, or a bond
fund's price, fluctuates with changes in interest rates. The longer the
duration, the more price volatility you can expect in the fund's price per
share.
The Fed continued its efforts to stimulate the economy by keeping short-term
borrowing costs low. This had a negative effect on cash and short-term
investments as yields fell below 1.00%. As such, the Fund's decision to reduce
its allocation to cash and short-term securities in favor of longer maturing,
higher income-producing assets helped the Fund's performance.
Because the Fund is relatively new and interest rates were relatively low, the
Fund focused on buying bonds in the 20-year maturity range to maximize income.
However, that segment of yield curve did not perform well over the last year,
with yields virtually the same at the end of the fiscal year as at the beginning
of the year. During the last quarter, as the bond market became more volatile,
some longer duration bonds were sold and the money reinvested in the 10-year
segment of the yield curve.
We continued to emphasize insured credit (municipal bonds that are insured
against default by a municipal bond insurance company), reducing credit that is
solely dependent on the state's general fund or guaranteed by the state. The
Fund has a high representation of general obligation debt and revenue bonds and
is fairly diversified across revenue sectors.
22
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
------------------
1 YEAR 4/30/2002
Class A NAV 3.22% 7.55%
Class A POP -1.18% 4.33%
Class C NAV 1.95% 6.41%
Class C POP -0.08% 4.98%
Class Y 3.65% 7.86%
Lehman Municipal Bond Index(3) 3.89% 7.39%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[PLOT POINTS TO COME]
* 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. Short-term performance is not indicative of
future performance, and an investment decision should not be made based
solely on returns. 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the federal alternative minimum tax for
certain investors. Capital gains distributions, if any, will be subject to
tax.
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 4.25% for Class A
shares and 1.00% for Class C shares, and the maximum contingent deferred
sales charge ("CDSC") for Class C shares for the relevant period. Maximum
CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all
distributions at NAV.
(2) Performance for Class C shares is not presented. Performance of this class
is lower due to higher expenses.
(3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities of one year or more.
(4) The performance since inception of the index is calculated from the month
end following the inception of the class.
23
<Page>
OREGON INTERMEDIATE TAX FREE FUND
Investment Objective: CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX
AND OREGON STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF
CAPITAL
First American Oregon Intermediate Tax Free Fund Class Y shares returned 3.46%
for the fiscal year (Class A shares returned 3.31% at net asset value for the
same period). By comparison, the Fund's benchmark, the Lehman 7-Year Municipal
Bond Index*, returned 4.71%.
As the state's unemployment rate rose and state revenue flows dwindled, the
state of Oregon battled to keep schools and state services operating at expected
levels. After enduring the longest session in Oregon history, Oregon legislators
passed a three-year income tax surcharge expected to raise more than $800
million in increased revenue. Signatures are being gathered to put the tax
increase on a special ballot to be voted upon in February 2004.
As a result of the weak economy in Oregon, all three rating agencies reduced the
state's credit rating. Moody's lowered their rating from Aa2 to Aa3, Fitch
dropped the state from a AA credit to A+, and Standard & Poor's lowered their
rating from AA to AA-. However, all three rating agencies maintained a stable
outlook for Oregon. Despite the struggling economy, the rating downgrade, and
the increased supply, there has not been a significant change in the valuation
of Oregon municipal bonds relative to other state municipal bonds. These
relatively minor downgrades have had minimal, if any, impact on the state's cost
of borrowing or on the performance of the Fund.
Oregon municipal issuance was up approximately 47% for the fiscal year ended
September 30, 2003, as low interest rates and budgetary pressures bring issuers
to the market. The largest issues to date have been pension obligation bonds,
which are taxable at the federal level. Oregon residents just approved an
amendment to the state constitution allowing Oregon to issue general obligation
debt for pension obligations. These obligations are expected to be taxable at
the federal level and would not impact the valuation of bonds held by the Fund
that are both federal and state tax exempt.
The duration of the Fund was held between 106% and 108% of its benchmark
throughout the year. We typically maintain a slightly longer duration than the
stated benchmark primarily to capture any additional yield benefits. This
approach provides the greatest benefit during a falling interest-rate
environment, which existed through mid-June. Duration is a time measure of
interest-rate risk exposure that estimates how much a bond, or a bond fund's
price, fluctuates with changes in interest rates. The longer the duration, the
more price volatility you can expect in the fund's price per share.
Due to the Fed's continued efforts to stimulate the economy by keeping
short-term interest rates low, year-over-year municipal yields fell for bonds
with maturities of five years and shorter, but rose slightly for bonds with
maturities of seven years and longer. The Fund maintains relatively equal
holdings across a range of maturities. This helps insulate it from volatility
due to changes in yields across the maturity spectrum.
The Fund invested in intermediate premium coupon bonds since they are expected
to hold value in a rising interest-rate environment, yet still perform if
interest rates stay flat or decline. This segment of the curve has experienced
some volatility as nontraditional buyers of municipal bonds have been more
actively buying and selling bonds. These buyers can cause volatility as they
move in and out of the municipal bonds based on the relationship to other
fixed-income products.
We continued to emphasize insured credit (municipal bonds that are insured
against default by a municipal bond insurance company), avoiding credit that is
solely dependent on the state's general fund or guaranteed by the state. The
Fund has a high representation of general obligation debt and revenue bonds and
is fairly diversified across revenue sectors.
24
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(3)
------------------
1 YEAR 5 YEARS 10 YEARS 2/1/1999
Class A NAV 3.31% -- -- 4.69%
Class A POP 1.00% -- -- 4.17%
Class Y 3.46% 4.76% 4.82% --
Lehman 7-Year Municipal Bond Index(2) 4.71% 5.84% 5.87% 6.03%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the federal alternative minimum tax for
certain investors. Capital gains distributions, if any, will be subject to
tax.
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 2.25% for Class A.
Total returns assume reinvestment of all distributions at NAV.
Performance prior to August 8, 1997, is that of Oregon Municipal Bond Trust
Fund, a predecessor common trust fund. On August 8, 1997, substantially all
of the assets of Oregon Municipal Bond Trust Fund were transferred into
Oregon Intermediate Tax Free Fund. The objectives, policies, and guidelines
of the two funds were, in all material respects, identical. Oregon Municipal
Bond 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) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities between six and eight years.
(3) The performance since inception of the index for each class is calculated
from the month end following the inception of the class.
25
<Page>
SHORT TAX FREE FUND
Investment Objective: TO PROVIDE INVESTORS WITH CURRENT INCOME THAT IS EXEMPT
FROM FEDERAL INCOME TAX, TO THE EXTENT CONSISTENT WITH THE PRESERVATION OF
CAPITAL
First American Short Tax Free Fund Class Y shares returned 4.66% since its
inception on October 25, 2002 (Class A shares returned 4.54% at net asset value
for the same period). By comparison, the Fund's benchmark, the Lehman 3-Year
Municipal Bond Index*, returned 4.36%.
The municipal market experienced bouts of volatility over the course of the
fiscal year ended September 30, 2003. Yields on three-year AAA-rated bonds fell
from a high in October 2002 of 2.42% to a low of 1.24% in mid-June before rising
back to 1.92% in mid-August. One-month total return for the broad municipal
market in July was the worst in nine years, while September's rally produced the
highest one-month total return in eight years. Because of this market
volatility, it was important to maintain our focus on long-term strategies.
Significant shifts or reversals in strategy during volatile markets can
negatively impact performance.
Following the conversion of the Fund from its predecessor common trust fund
base, its maturity was shortened from more than four years to slightly less than
three years. The Fund's dividend experienced a downward trend as 20% of the
Fund's assets matured during the year, and we experienced significant growth in
assets during a falling interest-rate environment. The Fund is generally
laddered (an investment strategy that helps to insulate a fund from yield
differentiation) with roughly 50% of its assets in three- and four-year
securities to capture the additional yield benefits inherent in the
positive-sloping municipal yield curve.
The Fund's overweight in the general obligation, electric, and health/hospital
sectors and purchases of BBB-rated securities had a positive effect on
performance. Factors that negatively impacted performance included its
overweight in short prerefunded and escrowed-to-maturity securities.
26
<Page>
PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(3)
------------------
10/25/2002
Class A NAV 4.54%
Class A POP 2.19%
Class Y 4.66%
Lehman 3-Year Municipal Bond Index(2) 4.36%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the federal alternative minimum tax for
certain investors. Capital gains distributions, if any, will be subject to
tax.
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 2.25% for Class A
shares. Total returns assume reinvestment of all distributions at NAV.
(2) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities between two and four years.
(3) The performance since inception of the index is calculated from the month
end following the inception of the class. Performance reflects cumulative
return since the Fund has been in operation less than one year.
27
<Page>
TAX FREE FUND
Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM FEDERAL INCOME
TAX TO THE EXTENT CONSISTENT WITH PRUDENT INVESTMENT RISK
First American Tax Free Fund Class Y shares returned 4.31% for the fiscal year
(Class A shares returned 4.06% at net asset value for the same period). By
comparison, the Fund's benchmark, the Lehman Municipal Bond Index*, returned
3.89%.
The municipal market experienced bouts of volatility over the course of the
fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell
from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising
back to 5.18% in August. One-month total return for the broad municipal market
in July was the worst in nine years, while September's rally produced the
highest one-month total return in eight years. Because of this market
volatility, it was important to maintain our focus on long-term strategies.
Significant shifts or reversals in strategy during volatile markets can
negatively impact performance.
The Fed continued its efforts to stimulate the economy by keeping short-term
borrowing costs low. This had a negative effect on cash and short-term
investments as yields fell below 1.00%. As such, the Fund's decision to reduce
its allocation to cash and short-term securities in favor of longer maturing,
higher income-producing assets helped the Fund's performance.
Modest adjustments to duration and portfolio structure helped the Fund's
performance. Duration was reduced during July as interest rates were rising,
re-extended modestly in August when it appeared that rates had peaked, and
reduced again at the end of September after rates fell. Duration is a time
measure of interest-rate risk exposure that estimates how much a bond, or a bond
fund's price, fluctuates with changes in interest rates. The longer the
duration, the more price volatility you can expect in the fund's price per
share.
Other factors that positively impacted performance included an overweight in the
hospital, general obligation, and electric revenue sectors; an overweight in
10-year and longer maturities; an overweight in bonds issued in Texas, Illinois,
and Washington; an underweight position in California bonds; and our positions
in unrated securities.
Factors that negatively impacted performance included an overweight in housing,
an underweight in five-to-seven year maturities, and an underweight in Florida.
28
<Page>
ANNUALIZED PERFORMANCE(1) as of September 30, 2003
<Table>
<Caption>
SINCE INCEPTION(4)
------------------
1 YEAR 5 YEARS 11/14/1996 9/24/2001
Class A NAV 4.06% 4.97% 5.94% --
Class A POP -0.38% 4.08% 5.28% --
Class C NAV 3.67% -- -- 5.98%
Class C POP 1.61% -- -- 5.45%
Class Y 4.31% 5.17% 6.16% --
Lehman Municipal Bond Index(3) 3.89% 5.67% 6.28% 6.38%
</Table>
[CHART]
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
[PLOT POINTS TO COME]
* 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.
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the federal alternative minimum tax for
certain investors. Capital gains distributions, if any, will be subject to
tax.
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 4.25% for Class A
shares and 1.00% for Class C shares, and the maximum contingent deferred
sales charge ("CDSC") for Class C shares for the relevant period. Maximum
CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all
distributions at NAV.
On September 24, 2001, the First American Tax Free Fund merged with the
Firstar National Municipal Bond Fund. Performance history prior to September
24, 2001, represents that of the Firstar National Municipal Bond Fund.
(2) Performance of Class C shares is not presented. Performance of this class is
lower due to higher expenses.
(3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt
bonds with remaining maturities of one year or more.
(4) The performance since inception of the index for each class is calculated
from the month end following the inception of the class.
29
<Page>
REPORT OF INDEPENDENT AUDITORS
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 Arizona Tax Free, California
Intermediate Tax Free, California Tax Free, Colorado Intermediate Tax Free,
Colorado Tax Free, Intermediate Tax Free, Minnesota Intermediate Tax Free,
Minnesota Tax Free, Missouri Tax Free, Nebraska Tax Free, Ohio Tax Free,
Oregon Intermediate Tax Free, Short Tax Free and Tax Free Funds (certain
funds constituting First American Investment Funds, Inc.) (The "Funds") as
of September 30, 2003, the related statements of operations and changes in
net assets and the financial highlights for each of the periods indicated
therein, except as noted below. These financial statements and 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
Missouri Tax Free and Tax Free Funds for the periods presented through
October 31, 2000, were audited by other auditors whose reports dated
December 29, 2000 and January 21, 2001, 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, and 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.
/s/ Ernst & Young LLP
Minneapolis, Minnesota
November 7, 2003
31
<Page>
SCHEDULE OF Investments September 30, 2003
ARIZONA TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 95.6%
REVENUE BONDS - 70.3%
EDUCATION - 18.4%
Arizona Educational Loan Marketing,
Series A-3 (AMT) (GTSL)
3.700%, 03/01/09 $ 750 $ 769
Arizona School Facilities Board, State School
Improvement, Callable 07/01/12 @ 100
5.250%, 07/01/16 750 834
5.250%, 07/01/20 250 270
Arizona Student Loan Acquisition Authority,
Series A, Callable 11/01/09 @ 102 (AMT)
5.900%, 05/01/24 100 106
Energy Management Services, Arizona State
University Project, Main Campus,
Callable 07/01/12 @ 100 (MBIA)
5.000%, 07/01/13 500 553
Gilbert Industrial Development Authority,
Southwest Student Services,
Callable 02/01/09 @ 102
5.850%, 02/01/19 1,300 1,264
Glendale Industrial Development Authority,
Callable 05/15/11 @ 101
5.750%, 05/15/21 250 267
University of Arizona Board of Regents,
Series A, Callable 12/01/09 @ 100 (FGIC)
5.800%, 06/01/24 150 166
-------------
4,229
-------------
HEALTHCARE - 13.6%
Arizona Health Facilities Authority,
John C. Lincoln Health Network,
Callable 12/01/12 @ 101
5.750%, 12/01/32 150 145
Johnson City, Tennessee Health & Elderly Facilities
Authority, Callable 07/01/12 @ 103
7.500%, 07/01/25 100 108
Mesa Industrial Development Authority, Discovery
Health Systems, Series A,
Callable 01/01/10 @ 101 (MBIA)
5.750%, 01/01/25 500 543
5.625%, 01/01/29 500 533
Scottsdale Industrial Development Authority,
Scottsdale Healthcare, Callable 12/01/11 @ 101
5.700%, 12/01/21 1,000 1,032
Yavapai Industrial Development Authority, Yavapai
Regional Medical Center, Series A,
Callable 08/01/13 @ 100 (RAAI)
5.250%, 08/01/21 375 390
Yavapai Industrial Development Authority, Yavapai
Regional Medical Center, Series A,
Callable 08/01/13 @ 100
6.000%, 08/01/33 100 102
Yuma Industrial Development Authority, Yuma
Regional Medical Center,
Callable 08/01/07 @ 102 (MBIA)
5.500%, 08/01/17 250 277
-------------
3,130
-------------
HOUSING - 6.4%
Douglas Community Housing Corporation,
Rancho La Perilla, Callable 01/20/10 @ 102 (GNMA)
5.900%, 07/20/20 500 527
6.000%, 07/20/25 475 495
Maricopa County Industrial Development Authority,
Avalon Apartments, Series A,
Callable 04/01/10 @ 102 (RAAI)
6.100%, 04/01/13 $ 105 $ 106
6.350%, 04/01/30 200 206
Phoenix Industrial Development Authority,
The Phoenix Authority, Series 1A,
Callable 06/01/10 @ 102 (FHLMC) (FNMA) (GNMA)
5.875%, 06/01/16 130 134
-------------
1,468
-------------
LEASE REVENUE - 1.5%
Navajo County Municipal Property Corporation,
Jail Facility (ACA)
5.625%, 07/01/09 310 349
-------------
MISCELLANEOUS - 4.2%
Greater Arizona Infrastructure Development Authority,
Series A, Callable 08/01/08 @ 102 (MBIA)
5.625%, 08/01/20 200 223
Greater Arizona Infrastructure Development Authority,
Series A, Callable 08/01/13 @ 100
5.000%, 08/01/23 (a) 750 755
-------------
978
-------------
TAX REVENUE - 6.3%
Oro Valley, Excise Tax,
Callable 07/01/10 @ 101 (AMBAC)
5.200%, 07/01/14 400 441
Phoenix Civic Improvements, Excise Tax,
Callable 07/01/09 @ 101
5.750%, 07/01/16 300 344
Surprise Municipal Property Corporation,
Callable 07/01/09 @ 101 (FGIC)
5.700%, 07/01/20 300 336
Tempe, Excise Tax, Series A,
Callable 07/01/09 @ 100
5.625%, 07/01/20 300 334
-------------
1,455
-------------
TRANSPORTATION - 11.8%
Arizona State Transportation Highway Board,
Pre-refunded 07/01/09 @ 100
5.750%, 07/01/18 (b) 200 234
Arizona State Transportation Highway Board,
Series A
5.000%, 07/01/09 400 452
Mesa Street & Highway,
Pre-refunded 07/01/09 @ 100 (FSA)
5.100%, 07/01/14 (b) 500 568
5.500%, 07/01/16 (b) 100 116
Phoenix Civic Improvements, Series B,
Callable 07/01/12 @ 100 (AMT) (FGIC)
5.250%, 07/01/21 250 258
5.250%, 07/01/27 750 764
Tucson Street & Highway Improvements,
Series 1994-E, Callable 07/01/10 @ 100 (FGIC)
5.000%, 07/01/18 300 320
-------------
2,712
-------------
UTILITIES - 8.1%
Chandler Water & Sewer Improvements,
Callable 07/01/10 @ 101 (FSA)
5.800%, 07/01/17 250 288
</Table>
The accompanying notes are an integral part of the financial statements.
32
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Oro Valley Municipal Water Systems,
Callable 07/01/08 @ 101 (MBIA)
5.550%, 07/01/17 $ 100 $ 112
Peoria Water & Sewer,
Callable 07/01/09 @ 100 (FGIC)
5.000%, 07/01/13 400 453
Phoenix Civic Improvements Water System,
Pre-refunded 07/01/04 @ 102
5.500%, 07/01/24 (b) 100 105
Puerto Rico Electric Power Authority, Series X,
Callable 07/01/05 @ 100
5.500%, 07/01/25 100 102
Salt River Project,
Agricultural Improvement & Power District,
Series A, Callable 10/01/03 @ 100
5.500%, 01/01/19 15 15
Salt River Project,
Agricultural Improvement & Power District,
Series B, Callable 10/01/03 @ 102
5.250%, 01/01/19 5 5
Tucson Water, Series D,
Callable 07/01/09 @ 100 (FGIC)
5.400%, 07/01/17 250 279
Tucson Water, Series 1994-A (MBIA)
6.250%, 07/01/16 170 210
Yavapai Industrial Development Authority,
Waste Management Project, Series A-2,
Mandatory Put 03/01/08 @ 100 (AMT)
4.450%, 03/01/28 300 305
-------------
1,874
-------------
TOTAL REVENUE BONDS 16,195
-------------
GENERAL OBLIGATIONS - 22.7%
Chandler Public & Recreational Improvements,
Callable 07/01/10 @ 101
5.800%, 07/01/18 250 287
Maricopa County School District #11, Peoria Unit,
Pre-refunded 07/01/09 @ 101 (FGIC)
5.500%, 07/01/14 (b) 100 117
5.500%, 07/01/15 (b) 120 140
Maricopa County Unified School District #41, Gilbert,
Callable 07/01/12 @ 100 (FSA)
4.600%, 07/01/14 295 316
Mesa, Callable 07/01/09 @ 100 (FGIC)
5.000%, 07/01/18 250 266
Navajo County Unified School District #32,
Blue Ridge (FSA)
5.000%, 07/01/12 700 782
Peoria, Callable 04/01/09 @ 100 (FGIC)
5.400%, 04/01/15 100 111
5.000%, 04/01/18 575 616
5.000%, 04/01/19 125 133
Phoenix, Callable 07/01/07 @ 102
5.250%, 07/01/20 250 268
Phoenix, Callable 07/01/10 @ 100
5.250%, 07/01/19 350 380
5.375%, 07/01/25 750 791
Pima County Unified School District #6, Marana,
Series A, Callable 07/01/10 @ 101 (FGIC)
5.250%, 07/01/15 250 276
Pima County Unified School District #12, Sunnyside,
Callable 07/01/09 @ 100 (FGIC)
5.300%, 07/01/13 150 167
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
Scottsdale, Pre-refunded 07/01/09 @ 100
5.500%, 07/01/22 (b) $ 250 $ 290
Tucson
5.500%, 07/01/18 250 290
-------------
TOTAL GENERAL OBLIGATIONS 5,230
-------------
CERTIFICATES OF PARTICIPATION - 2.6%
El Mirage, Callable 02/01/04 @ 100
6.900%, 08/01/16 215 215
Tucson, Callable 07/01/08 @ 100 (MBIA)
5.500%, 07/01/15 200 222
University of Arizona Parking & Student
Housing Authority,
Callable 06/01/09 @ 100 (AMBAC)
5.750%, 06/01/19 140 158
-------------
TOTAL CERTIFICATES OF PARTICIPATION 595
-------------
TOTAL MUNICIPAL BONDS
(Cost $20,299) 22,020
-------------
MONEY MARKET FUND - 1.2%
Federated Arizona Municipal Money Market Fund 280,016 280
-------------
TOTAL MONEY MARKET FUND
(Cost $280) 280
-------------
TOTAL INVESTMENTS - 96.8%
(Cost $20,579) 22,300
-------------
OTHER ASSETS AND LIABILITIES, NET - 3.2% 729
-------------
TOTAL NET ASSETS - 100.0% $ 23,029
-------------
</Table>
(a) Security purchased on a when-issued basis. On September 30, 2003, the total
cost of investments purchased on a when-issued basis was $745,283. See note
2 in Notes to Financial Statements.
(b) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
ACA - American Capital Access
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $2,201,634, which represents
9.6% of net assets.
FGIC - Financial Guaranty Insurance Corporation
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
GTSL - Guaranteed Student Loans
MBIA - Municipal Bond Insurance Association
RAAI - Radian Asset Assurance Inc.
33
<Page>
CALIFORNIA INTERMEDIATE TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.2%
REVENUE BONDS - 62.8%
EDUCATION - 10.0%
ABAG Financial Authority, Schools of the
Sacred Heart, Series A
5.800%, 06/01/08 $ 200 $ 220
Aztec Shops, California State Auxiliary
Organization, San Diego State University,
Callable 09/01/10 @ 101
5.400%, 09/01/11 1,035 1,107
California State Higher Educational Facilities
Authority, Fresno Pacific University, Series A
5.300%, 03/01/04 255 259
5.650%, 03/01/07 380 415
5.750%, 03/01/08 400 441
California State Higher Educational Facilities
Authority, Occidental College Project,
Callable 10/01/07 @ 102 (MBIA)
5.300%, 10/01/10 500 565
California State Higher Educational Facilities
Authority, University of La Verne & Western
University of Health Sciences, Series B
6.000%, 06/01/10 495 550
California State Higher Educational Facilities
Authority, University of Redlands, Series A
5.550%, 06/01/09 225 257
California State Higher Educational Facilities
Authority, University of Redlands, Series A,
Callable 06/01/10 @ 101
5.700%, 06/01/11 250 283
5.750%, 06/01/12 260 291
California State University Fresno Association,
Auxiliary Organization Event Center,
Callable 07/01/12 @ 101
6.000%, 07/01/22 500 517
-------------
4,905
-------------
HEALTHCARE - 18.5%
ABAG Financial Authority, O'Connor Woods (ACA)
5.250%, 11/01/05 500 537
ABAG Financial Authority,
Odd Fellows Home of California (CMI)
4.950%, 08/15/07 500 546
ABAG Financial Authority, San Diego
Hospital Association, Series C
4.000%, 03/01/08 300 307
California Health Facilities Financing Authority,
Casa Colina, Callable 04/01/12 @ 100
5.500%, 04/01/13 300 316
California Health Facilities Financing Authority,
Paradise Valley Estates (CMI)
4.125%, 01/01/10 500 521
4.375%, 01/01/12 540 558
California Health Facilities Financing Authority,
Valleycare Medical Center, Series A,
Callable 05/01/12 @ 100 (CMI)
4.625%, 05/01/13 300 312
4.800%, 05/01/14 715 747
California State Communities Development
Authority, Hospital of Monterey Peninsula,
Callable 08/15/08 @ 101 (MBIA)
5.250%, 08/15/09 500 567
California State Health Facilities Authority,
Casa de las Campanas, Series A,
Callable 08/01/08 @ 100 (CMI)
5.375%, 08/01/09 $ 250 $ 275
California Statewide Communities
Development Authority,
Elder Care Alliance, Series A
7.250%, 11/15/11 500 498
California Statewide Communities
Development Authority, Health Facilities, Series A,
Escrowed to Maturity,
Callable 10/01/03 @ 102 (CMI)
5.200%, 08/01/04 (a) 200 205
California Statewide Communities
Development Authority,
Kaiser Permanente, Series D,
Mandatory Put 03/01/07 @ 100
4.350%, 11/01/36 500 529
California Statewide Communities
Development Authority,
Los Angeles Orthopedic Hospital Foundation,
Callable 06/01/07 @ 101 (AMBAC)
5.000%, 06/01/12 150 162
John C. Fremont Hospital District,
Health Facility (CMI)
6.000%, 06/01/04 65 67
La Verne, Brethren Hillcrest Homes, Series B,
Callable 02/15/13 @ 101 (ACA)
5.600%, 02/15/33 500 510
Marysville Hospital, Fremont Rideout Health Project,
Series A, Callable 07/01/08 @ 103 (AMBAC)
5.000%, 01/01/10 500 559
Puerto Rico Industrial, Tourist, Educational,
Medical & Environmental Control Facilities,
Hospital de la Concepcion, Series A
5.500%, 11/15/09 650 735
Rancho Mirage Joint Powers Finance Authority,
Eisenhower Medical Center, Series A,
Callable 07/01/07 @ 102 (MBIA)
5.125%, 07/01/08 500 564
Riverside County Public Financing Authority,
Air Force Village West
5.125%, 05/15/05 525 546
-------------
9,061
-------------
HOUSING - 5.4%
ABAG Financial Authority, Archstone Redwood
Housing Project, Series A
5.300%, 10/01/08 500 535
California Rural Home Mortgage Finance Authority,
Single Family Mortgage,
Series D (AMT) (FNMA) (GNMA)
5.250%, 06/01/10 160 163
California State Housing Finance Agency,
Series E (MBIA)
5.850%, 08/01/04 150 155
California Statewide Communities
Development Authority, Series B,
Mandatory Put 06/15/09 @ 100
5.200%, 12/01/29 500 539
</Table>
The accompanying notes are an integral part of the financial statements.
34
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
California Statewide Communities
Development Authority,
Archstone Communities Trust,
Mandatory Put 06/01/08 @ 100
5.300%, 06/01/29 $ 500 $ 532
California Statewide Communities
Development Authority, Multifamily Housing,
Citrus Gardens Apartments,
Callable 07/01/12 @ 102
5.375%, 07/01/26 700 704
-------------
2,628
-------------
LEASE REVENUE - 2.8%
California State Public Works Board,
California Community Colleges, Series A,
Callable 12/01/09 @ 101
4.875%, 12/01/18 200 205
California State Public Works Board,
Department of Corrections,
Series A (AMBAC) (MLO)
6.000%, 01/01/06 545 602
California State Public Works Board,
Department of Health Services,
Callable 11/01/09 @ 101 (MBIA) (MLO)
5.200%, 11/01/12 500 549
-------------
1,356
-------------
MISCELLANEOUS - 1.5%
Children's Trust Fund,
Puerto Rico Tobacco Settlement Issue
5.000%, 07/01/08 250 283
Golden State Tobacco Securitization,
Callable 06/01/10 @ 100
5.600%, 06/01/28 450 453
-------------
736
-------------
SANITATION DISTRICT - 1.2%
Los Angeles Municipal Improvement Corporation,
Sanitation Equipment, Series A (FSA) (MLO)
6.000%, 02/01/07 500 571
-------------
SCHOOL DISTRICT - 3.8%
Golden West Schools Financing Authority,
Series A (MBIA)
5.700%, 02/01/13 720 839
5.750%, 02/01/14 520 610
Golden West Schools Financing Authority, Series A,
Zero Coupon Bond (MBIA)
5.000%, 02/01/12 (c) 535 385
-------------
1,834
-------------
TAX REVENUE - 3.1%
Long Beach Community Facilities District #5,
Towne Center Special Tax,
Callable 10/01/06 @ 102
6.100%, 10/01/12 165 174
Los Angeles County Public Works Financing Authority,
Regional Park & Open Space District, Series A,
Callable 10/01/07 @ 101
5.000%, 10/01/19 500 516
Los Angeles County Transportation Commission,
Series B (FGIC)
6.000%, 07/01/04 250 259
West Covina Redevelopment Agency,
Fashion Plaza Project
5.125%, 09/01/05 $ 300 $ 321
William S. Hart Joint School Financing Authority,
Special Tax, Callable 09/01/05 @ 102 (FSA)
6.100%, 09/01/06 200 222
-------------
1,492
-------------
TRANSPORTATION - 4.7%
San Francisco Bay Area Transportation
Financing Authority, Bridge Toll (ACA)
5.500%, 08/01/05 690 737
San Francisco City & County International
Airports Commission, Second Series,
Callable 05/01/04 @ 101 (AMT) (FGIC)
5.400%, 05/01/06 500 516
San Francisco City & County International
Airports Commission, Second Series,
Issue 25 (AMT) (FSA)
5.500%, 05/01/08 500 565
San Francisco City & County International
Airports Commission, SFO Fuel,
Series A (AMT) (FSA)
5.250%, 01/01/07 450 496
-------------
2,314
-------------
UTILITIES - 11.8%
California State Department of Water,
Central Valley Project, Series O,
Callable 12/01/05 @ 101
5.000%, 12/01/12 500 546
California State Department of Water,
Central Valley Project, Series P,
Pre-refunded 06/01/06 @ 101
5.300%, 12/01/07 (d) 750 836
California State Department of Water, Series A,
Callable 05/01/12 @ 101
5.875%, 05/01/16 500 561
Chino Basin Regional Financing Authority,
Inland Empire Utility Agency Sewer Project,
Callable 11/01/09 @ 101 (MBIA)
5.200%, 11/01/11 405 451
Imperial, Wastewater Treatment Facility,
Callable 10/15/11 @ 102 (FGIC)
5.000%, 10/15/20 1,000 1,050
Inland Empire Solid Waste Authority,
Landfill Improvement Financing Project, Series B,
Escrowed to Maturity (AMT) (FSA)
5.750%, 02/01/04 (a) 500 508
Metropolitan Water District of Southern California,
Series B, Callable 07/01/06 @ 102 (MBIA)
4.875%, 07/01/10 325 357
5.000%, 07/01/14 500 541
Richmond Wastewater Systems,
Callable 08/01/09 @ 102 (FGIC)
5.200%, 08/01/11 500 556
Whittier Utility Authority,
Callable 06/01/13 @ 100 (MBIA)
4.400%, 06/01/17 305 313
4.500%, 06/01/18 65 67
-------------
5,786
-------------
TOTAL REVENUE BONDS 30,683
-------------
</Table>
35
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS - 27.2%
Alisal Unified School District, Series C,
Zero Coupon Bond (FGIC)
5.050%, 08/01/08 (c) $ 860 $ 761
California State, Callable 08/01/13 @ 100
5.000%, 02/01/17 1,000 1,048
Foothill-De Anza Community College District,
Callable 08/01/10 @ 101
6.000%, 08/01/11 300 353
Fresno Unified School District, Series A (MBIA)
6.050%, 08/01/11 500 596
Jefferson Union High School District,
San Mateo County, Series A (MBIA)
6.250%, 02/01/14 300 365
Lemon Grove School District, Election of 1998-B,
Zero Coupon Bond (FSA)
3.329%, 11/01/20 (c) 375 167
Los Angeles, Series A,
Pre-refunded 09/01/04 @ 102 (MBIA)
5.800%, 09/01/07 (d) 250 266
Montebello Unified School District,
Zero Coupon Bond (MBIA)
10.398%, 08/01/21 (c) 700 287
Newhall School District, Series A,
Callable 05/01/10 @ 101 (FSA)
5.500%, 05/01/11 540 617
Oxnard School District (MBIA)
5.000%, 08/01/05 600 642
Pomona School District, Series A (MBIA)
5.450%, 02/01/06 250 274
5.500%, 08/01/06 250 279
Pomona School District, Series A,
Callable 08/01/11 @ 103 (MBIA)
6.150%, 08/01/15 500 587
Puerto Rico Commonwealth (MBIA)
6.250%, 07/01/08 500 591
Puerto Rico Commonwealth, Series B (FSA)
6.500%, 07/01/15 1,000 1,260
Puerto Rico Commonwealth, Series C,
Mandatory Put 07/01/08 @ 100
5.000%, 07/01/18 (b) 500 550
Rio Linda Unified School District,
Callable 08/01/08 @ 101 (FSA)
5.000%, 08/01/09 500 559
Roseville Joint Union High School District,
Callable 08/01/11 @ 101
5.200%, 08/01/20 600 637
Rowland Unified School District, Series A,
Callable 09/01/10 @ 101 (FSA)
5.250%, 09/01/25 250 260
San Juan Unified School District,
Zero Coupon Bond (FSA)
5.420%, 08/01/16 (c) 390 219
San Mateo County Community College District,
Series A, Zero Coupon Bond (FGIC)
5.300%, 09/01/17 (c) 760 401
San Mateo Unified High School District,
Series B, Zero Coupon Bond (FGIC)
5.150%, 09/01/17 (c) 1,000 527
South Pasadena Unified School District, Series A,
Callable 08/01/13 @ 100 (FGIC)
5.000%, 08/01/21 $ 300 $ 313
Vista Unified School District, Series A,
Zero Coupon Bond (FSA)
5.850%, 08/01/26 (c) 1,000 296
Walnut Valley Unified School District,
Series A (MBIA)
6.850%, 08/01/07 250 297
Walnut Valley Unified School District, Series A,
Callable 08/01/10 @ 102 (FSA)
5.000%, 08/01/12 255 283
West Covina Unified School District, Series A (MBIA)
5.350%, 02/01/20 770 868
-------------
TOTAL GENERAL OBLIGATIONS 13,303
-------------
CERTIFICATES OF PARTICIPATION - 8.2%
Bakersfield Convention Center Expansion Project,
Callable 04/01/07 @ 101 (MBIA) (MLO)
5.500%, 04/01/10 250 282
Escondido Civic Center Project,
Escrowed to Maturity,
Callable 03/01/04 @ 100 (AMBAC) (MLO)
5.800%, 09/01/04 (a) 100 104
Grossmont Unified High School District,
Callable 09/01/08 @ 102 (FSA) (MLO)
5.400%, 09/01/13 300 336
Kern County Board of Education, Series A,
Callable 05/01/08 @ 102 (MBIA) (MLO)
5.200%, 05/01/12 905 999
Los Angeles Community College,
Energy Retrofit Project (AMBAC)
5.000%, 08/15/09 300 342
Los Angeles County Schools,
Regionalized Business Services
Financing Project, Series A
5.000%, 09/01/08 200 225
Los Angeles, Sonnenblick Del Rio,
West Los Angeles (AMBAC)
5.375%, 11/01/10 500 573
Oxnard Redevelopment Agency,
Callable 06/21/04 @ 103
4.125%, 07/01/05 500 519
Paradise Unified School District,
Measure M Project, Series A,
Callable 09/01/05 @ 102 (AMBAC) (MLO)
5.250%, 09/01/07 300 328
West Covina Civic Center Project,
Pre-refunded 09/01/05 @ 102 (FSA) (MLO)
5.250%, 09/01/07 (d) 250 275
-------------
TOTAL CERTIFICATES OF PARTICIPATION 3,983
-------------
TOTAL MUNICIPAL BONDS
(Cost $44,269) 47,969
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
36
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS - 1.6%
Federated California Municipal Cash Trust 615,269 $ 615
Provident California Money Fund 187,745 188
-------------
TOTAL MONEY MARKET FUNDS
(Cost $803) 803
-------------
TOTAL INVESTMENTS - 99.8%
(Cost $45,072) 48,772
-------------
OTHER ASSETS AND LIABILITIES, NET - 0.2% 90
-------------
TOTAL NET ASSETS - 100.0% $ 48,862
-------------
</Table>
(a) Escrowed to Maturity issues are typically backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(b) Variable Rate Security - The rate shown is the rate in effect as of
September 30, 2003.
(c) The rate shown is the effective yield at the time of purchase.
(d) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
ABAG - Association of Bay Area Governments
ACA - American Capital Access
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $2,246,978, which represents
4.6% of net assets.
CMI - California Mortgage Insurance Program
FGIC - Financial Guaranty Insurance Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
CALIFORNIA TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 97.0%
REVENUE BONDS - 63.7%
BUILDING - 4.4%
Sacramento City Financing Authority,
Callable 06/01/10 @ 101 (MLO)
5.400%, 06/01/18 $ 455 $ 500
5.500%, 06/01/23 645 693
-------------
1,193
-------------
EDUCATION - 14.9%
ABAG Financial Authority,
Schools of the Sacred Heart, Series A
5.900%, 06/01/10 200 220
Aztec Shops, California State Auxiliary Organization,
San Diego State University
5.200%, 09/01/08 455 494
California State Higher Educational
Facilities Authority, Fresno Pacific
University, Series A
5.550%, 03/01/06 250 269
California State Higher Educational
Facilities Authority, Fresno Pacific University,
Series A, Callable 03/01/10 @ 101
6.750%, 03/01/19 380 427
California State Higher Educational
Facilities Authority, University of
La Verne & Western University of Health Sciences,
Series B, Callable 06/01/10 @ 101
6.625%, 06/01/20 215 235
California State Higher Educational
Facilities Authority, University of Redlands,
Series A, Callable 06/01/10 @ 101
5.950%, 06/01/15 310 345
California State University Foundation,
Monterey Bay, Callable 06/01/11 @ 100 (MBIA)
5.300%, 06/01/22 500 531
California State University Fresno Association,
Auxiliary Organization Event Center,
Callable 07/01/12 @ 101
6.000%, 07/01/22 500 517
University of California, Series K,
Callable 09/01/08 @ 101
5.000%, 09/01/20 1,000 1,041
-------------
4,079
-------------
HEALTHCARE - 6.4%
ABAG Finance Authority, Lincoln Glen Manor
Senior Citizens, Callable 02/15/08 @ 101 (CMI)
6.100%, 02/15/25 250 264
ABAG Financial Authority, San Diego
Hospital Association, Series C
4.000%, 03/01/08 100 102
California Health Facilities Financing Authority,
Casa Colina, Callable 04/01/12 @ 100
5.500%, 04/01/13 50 53
California Statewide Communities
Development Authority,
Elder Care Alliance, Series A
7.250%, 11/15/11 250 249
California Statewide Communities
Development Authority, Kaiser Permanente,
Series D, Mandatory Put 03/01/07 @ 100
4.350%, 11/01/36 250 265
</Table>
37
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
California Statewide Communities
Development Authority, Los Angeles Orthopedic
Hospital Foundation,
Callable 06/01/07 @ 101 (AMBAC)
5.000%, 06/01/12 $ 350 $ 379
Puerto Rico Industrial Tourist, Educational,
Medical & Environmental Control Facilities,
Hospital de La Concepcion, Series A
5.500%, 11/15/08 400 451
-------------
1,763
-------------
HOUSING - 5.0%
California State Department of Veterans Affairs,
Series C, Callable 01/09/11 @ 101 (AMT)
5.500%, 12/01/19 700 734
California State Housing Finance Agency,
Single Family Mortgage,
Series B (AMT) (FNMA) (GNMA)
5.650%, 06/01/10 110 116
California Statewide Communities
Development Authority, Archstone Seascape,
Mandatory Put 06/01/08 @ 100
5.250%, 06/01/29 500 531
-------------
1,381
-------------
SCHOOL DISTRICT - 3.9%
Golden West Schools Financing Authority,
Series A (MBIA)
5.750%, 02/01/14 250 293
5.800%, 08/01/22 320 375
5.800%, 08/01/23 345 402
-------------
1,070
-------------
TAX REVENUE - 10.0%
Grass Valley Community Redevelopment Agency,
Tax Allocation, Callable 12/01/08 @ 102
6.400%, 12/01/34 400 428
Long Beach Community Facilities District #5,
Towne Center Special Tax,
Callable 10/01/06 @ 102
6.100%, 10/01/12 250 263
Los Angeles, Callable 03/01/10 @ 101
5.625%, 03/01/19 200 225
Los Angeles County Community Facilities District #3,
Series A, Special Tax,
Callable 09/01/10 @ 100 (AMBAC)
5.250%, 09/01/18 715 781
Los Angeles County Public Works
Financing Authority, Regional Park & Open
Space District, Series A,
Callable 10/01/07 @ 101
5.000%, 10/01/19 500 516
Los Angeles County Metropolitan
Transportation Authority, Series B,
Callable 10/01/03 @ 102 (AMBAC)
5.250%, 07/01/23 200 205
Puerto Rico Commonwealth
Highway & Transportation Authority, Series X (MBIA)
5.500%, 07/01/15 100 117
San Francisco Bay Area Transportation Authority,
Callable 07/01/09 @ 101 (FGIC)
5.500%, 07/01/26 200 213
-------------
2,748
-------------
TRANSPORTATION - 3.1%
Long Beach Harbor,
Callable 05/15/05 @ 102 (AMT) (MBIA)
5.375%, 05/15/20 $ 250 $ 261
Los Angeles Harbor, Series B,
Callable 11/01/06 @ 101 (AMT)
5.250%, 11/01/08 300 326
San Francisco Airport Commission,
SFO Fuel Company,
Callable 01/01/08 @ 102 (AMT) (FSA)
5.625%, 01/01/12 250 276
-------------
863
-------------
UTILITIES - 16.0%
California State Department of Water,
Series W (FSA)
5.500%, 12/01/14 450 523
California Statewide Communities
Development Authority, Waste Management Project,
Mandatory Put 04/01/04 @ 100 (AMT)
4.950%, 04/01/11 250 253
Compton Sewer Authority,
Callable 09/01/08 @ 102 (MBIA)
5.375%, 09/01/23 1,150 1,222
Contra Costa Water Authority, Series A,
Callable 10/01/12 @ 100 (FGIC)
5.000%, 10/01/20 340 356
Los Angeles Power System, Series A,
Subseries A-1 (MBIA)
5.000%, 07/01/12 1,225 1,364
Los Angeles Water & Power Development Authority,
Pre-refunded 02/15/05 @ 101
6.100%, 02/15/17 (a) 35 38
Los Angeles Water & Power Development Authority,
Pre-refunded 02/15/05 @ 101
6.100%, 02/15/17 (a) 115 124
South Bayside Waste Management Authority,
Callable 03/01/09 @ 102 (AMBAC)
5.750%, 03/01/20 150 170
South Placer Waste Water Authority, Series A,
Pre-refunded 11/01/10 @ 101 (FGIC)
5.500%, 11/01/15 (a) 300 355
-------------
4,405
-------------
TOTAL REVENUE BONDS 17,502
-------------
GENERAL OBLIGATIONS - 25.4%
Acalanes Unified High School District,
Zero Coupon Bond,
Pre-refunded 08/01/10 @ 70.92 (FGIC)
5.560%, 08/01/16 (a) (b) 700 400
Brentwood (MBIA)
5.250%, 07/01/16 150 170
California State, Callable 10/01/10 @ 100
5.250%, 10/01/19 600 625
California State, Callable 02/01/13 @ 100
5.000%, 02/01/24 700 693
Glendora Unified School District, Series A,
Callable 09/01/10 @ 101 (FSA)
5.350%, 09/01/20 340 370
Jefferson Union High School District,
San Mateo County, Series A (MBIA)
6.250%, 08/01/20 460 567
</Table>
The accompanying notes are an integral part of the financial statements.
38
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Pleasant Valley School District, Ventura County,
Series A (MBIA)
5.850%, 02/01/19 $ 250 $ 297
Pomona Unified School District, Series A (MBIA)
5.950%, 02/01/17 855 1,027
Sacramento Unified School District, Series A,
Pre-refunded 07/01/09 @ 102
5.750%, 07/01/17 (a) 400 478
San Francisco City & County, Series 1,
Callable 06/15/07 @ 102 (FGIC)
5.500%, 06/15/09 300 343
Vallejo City Unified School District,
Series A (MBIA)
5.900%, 08/01/21 350 415
Ventura County Community College District,
Series A, Callable 08/01/12 @ 101 (MBIA)
5.000%, 08/01/18 910 973
Wiseburn School District, Series A,
Callable 08/01/10 @ 100 (FGIC)
5.250%, 08/01/22 600 634
-------------
TOTAL GENERAL OBLIGATIONS 6,992
-------------
CERTIFICATES OF PARTICIPATION - 7.9%
Bakersfield Convention Center Expansion Project,
Callable 04/01/07 @ 101 (MBIA)
5.875%, 04/01/22 250 281
Escondido, Series A, Callable 09/01/10 @ 101 (FGIC)
5.625%, 09/01/20 300 335
Lathrop, Series A, Callable 06/01/10 @ 101 (MBIA)
5.875%, 06/01/30 350 391
Los Angeles, Sonnenblick del Rio Senior Lien,
Callable 11/01/10 @ 101 (AMBAC)
6.000%, 11/01/19 330 384
Orange County, Series A,
Callable 07/01/06 @ 102 (MBIA)
5.875%, 07/01/19 150 168
Ridgecrest Civic Center Project,
Callable 03/01/09 @ 101
6.250%, 03/01/21 250 268
West Kern County Water District,
Callable 06/01/10 @ 101
5.200%, 06/01/14 320 337
-------------
TOTAL CERTIFICATES OF PARTICIPATION 2,164
-------------
TOTAL MUNICIPAL BONDS
(Cost $24,654) 26,658
-------------
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS - 1.8%
Federated California Municipal Cash Trust 324,434 $ 324
Provident California Money Fund 177,004 177
-------------
TOTAL MONEY MARKET FUNDS
(Cost $501) 501
-------------
TOTAL INVESTMENTS - 98.8%
(Cost $25,155) 27,159
-------------
OTHER ASSETS AND LIABILITIES, NET - 1.2% 328
-------------
TOTAL NET ASSETS - 100.0% $ 27,487
-------------
</Table>
(a) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) The rate shown is the effective yield at the time of purchase.
ABAG - Association of Bay Area Governments
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $27,487,083, which represents
7.2% of net assets.
CMI - California Mortgage Insurance Program
FGIC - Financial Guaranty Insurance Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
39
<Page>
COLORADO INTERMEDIATE TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 97.5%
REVENUE BONDS - 62.2%
EDUCATION - 9.3%
Aurora Community College Project (CLE) (MLO)
5.750%, 10/15/04 $ 500 $ 512
Colorado School Mines Auxiliary,
Callable 12/01/12 @ 100 (AMBAC)
5.250%, 12/01/20 605 654
Colorado State Educational & Cultural
Facilities Authority,
Bromley East Charter School Project
6.250%, 09/15/11 600 631
Colorado State Educational & Cultural
Facilities Authority,
Classical Academy Charter School Project
6.375%, 12/01/11 965 1,022
Colorado State Educational & Cultural
Facilities Authority,
Core Knowledge Charter School,
Callable 11/01/09 @ 100
6.850%, 11/01/16 440 479
Colorado State Educational & Cultural
Facilities Authority,
University of Colorado Foundation,
Callable 07/01/12 @ 100 (AMBAC)
5.000%, 07/01/27 710 722
Colorado State Educational & Cultural
Facilities Authority,
University of Denver (MBIA)
4.250%, 03/01/13 2,375 2,505
-------------
6,525
-------------
HEALTHCARE - 14.8%
Colorado State Health Facilities Authority,
Boulder Hospital (MBIA)
4.875%, 10/01/09 500 556
5.000%, 10/01/10 500 554
Colorado State Health Facilities Authority,
Catholic Health Initiatives, Series A
5.000%, 03/01/12 500 538
Colorado State Health Facilities Authority,
The Devereux Foundation,
Callable 11/01/12 @ 100 (RAAI)
4.200%, 11/01/13 380 383
Colorado State Health Facilities Authority,
Evangelical Lutheran Health Facilities,
Callable 12/01/10 @ 102
6.900%, 12/01/25 350 381
Colorado State Health Facilities Authority,
Evangelical Lutheran Health Facilities,
Callable 10/01/12 @ 100
5.900%, 10/01/27 250 255
Colorado State Health Facilities Authority,
National Jewish Medical & Research
Center Project,
Callable 01/01/08 @ 100
5.375%, 01/01/16 700 716
Colorado State Health Facilities Authority,
North Colorado Medical Center Project (FSA)
5.000%, 05/15/09 1,000 1,115
Colorado State Health Facilities Authority,
Parkview Medical Center
5.500%, 09/01/07 $ 250 $ 271
5.750%, 09/01/08 250 275
5.500%, 09/01/09 500 544
Colorado State Health Facilities Authority,
Poudre Valley Healthcare,
Callable 12/01/09 @ 101 (FSA)
5.750%, 12/01/10 1,000 1,144
Colorado State Health Facilities Authority,
Steamboat Springs Health Project
4.600%, 09/15/04 405 409
Colorado State Health Facilities Authority,
Steamboat Springs Health Project,
Callable 09/15/08 @ 101
5.300%, 09/15/09 250 255
Colorado State Health Facilities Authority,
Vail Medical Center,
Callable 01/15/12 @ 100
5.750%, 01/15/22 800 820
Delta County Memorial Hospital District,
Callable 09/01/13 @ 100
5.350%, 09/01/17 500 504
La Junta Hospital, Arkansas Valley
Regional Medical Center Project
5.200%, 04/01/06 300 313
5.300%, 04/01/07 320 336
5.400%, 04/01/08 335 351
5.500%, 04/01/09 355 372
University of Colorado Hospital Authority,
Callable 11/15/11 @ 100
5.000%, 11/15/14 300 311
-------------
10,403
-------------
HOUSING - 0.3%
Colorado State Housing Finance Authority,
Multifamily Housing, Series A (FHA)
5.125%, 10/01/03 95 95
Colorado State Housing Finance Authority,
Single Family Mortgages, Series B-1,
Callable 06/01/05 @ 103 (AMT)
5.875%, 06/01/11 100 100
-------------
195
-------------
MISCELLANEOUS - 5.9%
Children's Trust Fund,
Puerto Rico Tobacco Settlement Issue,
Escrowed to Maturity
5.750%, 07/01/09 (b) 2,000 2,351
Colorado State Educational & Cultural
Facilities Authority,
Colorado Public Radio
4.800%, 07/01/09 250 267
4.900%, 07/01/10 265 279
Colorado State Educational & Cultural Facilities
Authority, Nashville Public Radio
5.500%, 04/01/12 430 464
Colorado State Educational & Cultural
Facilities Authority,
National Conference of State Legislatures,
Callable 06/01/11 @ 100
5.250%, 06/01/13 700 756
-------------
4,117
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
40
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
POLLUTION CONTROL - 1.4%
Moffat County, Pollution Control,
Tri-State Generation Project (AMBAC)
5.500%, 11/01/05 $ 1,000 $ 1,088
-------------
RECREATIONAL FACILITY AUTHORITY - 3.3%
Denver City & County, Helen G. Bonfils
Foundation Project, Series B,
Callable 12/01/07 @ 100
5.125%, 12/01/17 900 971
Hyland Hills Metropolitan Park & Recreational
District, Series A, Callable 12/15/07 @ 101
6.100%, 12/15/09 210 229
Jefferson County, Metropolitan YMCA Project,
Series A, Pre-refunded 08/01/05 @ 100
7.500%, 08/01/08 (a) 1,000 1,111
-------------
2,311
-------------
TAX REVENUE - 8.0%
Boulder County Open Space Capital
Improvement Trust Fund,
Callable 07/15/10 @ 100
4.750%, 07/15/12 1,000 1,078
Boulder County Sales & Use Tax (FGIC)
5.750%, 12/15/05 870 956
Boulder County Sales & Use Tax,
Escrowed to Maturity (FGIC)
5.750%, 12/15/05 (b) 130 143
Douglas County Sales & Use Tax (FSA)
6.000%, 10/15/09 300 356
Larimer County Sales & Use Tax (AMBAC)
5.000%, 12/15/09 360 408
5.000%, 12/15/10 460 519
Longmont Sales & Use Tax,
Callable 11/15/10 @ 100
5.500%, 11/15/15 500 563
Longmont Sales & Use Tax,
Callable 11/15/10 @ 101 (AMBAC)
4.875%, 11/15/18 1,000 1,052
Westminster Sales & Use Tax, Series A,
Callable 12/01/07 @ 102 (FGIC)
5.250%, 12/01/11 500 561
-------------
5,636
-------------
TRANSPORTATION - 8.7%
Colorado Department of Transportation (AMBAC)
6.000%, 06/15/10 1,000 1,182
The E-470 Public Highway Authority, Series B,
Zero Coupon Bond (MBIA)
5.520%, 09/01/17 (c) 1,575 829
6.400%, 09/01/19 (c) 960 445
5.650%, 09/01/20 (c) 500 217
5.396%, 09/01/22 (c) 1,620 614
Northwest Parkway Public Highway Authority,
Convertible, Zero Coupon Bond (AMBAC)
5.000%, 06/15/14 (c) 750 566
5.250%, 06/15/15 (c) 2,000 1,507
5.350%, 06/15/16 (c) 1,000 754
-------------
6,114
-------------
UTILITIES - 10.5%
Arapahoe County Water & Waste Authority
5.550%, 12/01/06 140 152
5.650%, 12/01/07 150 164
5.750%, 12/01/08 160 176
Arapahoe County Water & Waste Authority,
Callable 12/01/09 @ 100
6.000%, 12/01/11 $ 185 $ 199
Boulder Water & Sewer
5.750%, 12/01/10 1,545 1,811
Broomfield Water Activity Enterprise,
Callable 12/01/10 @ 101 (MBIA)
5.500%, 12/01/17 500 562
Colorado State Water Resource & Power Development
Authority, Small Water Resources, Series A,
Callable 11/01/10 @ 100 (FGIC)
5.700%, 11/01/15 100 114
Denver City & County Wastewater,
Callable 11/01/12 @ 100 (FGIC)
5.250%, 11/01/17 1,260 1,390
Platte River Power Authority, Series DD,
Callable 06/01/07 @ 102 (MBIA)
5.375%, 06/01/17 875 971
Ute Water Conservancy District (MBIA)
6.000%, 06/15/09 680 802
Westminster Water & Wastewater Utility Enterprise,
Pre-refunded 12/01/04 @ 100 (AMBAC)
5.800%, 12/01/05 (a) 1,000 1,053
-------------
7,394
-------------
TOTAL REVENUE BONDS 43,783
-------------
GENERAL OBLIGATIONS - 29.7%
Adams County School District No. 12, Series A,
Callable 12/15/12 @ 100 (FSA)
5.500%, 12/15/15 1,000 1,141
Arapahoe County School District #5, Cherry Creek,
Callable 12/15/09 @ 100 (STAID)
5.500%, 12/15/11 1,000 1,142
Arapahoe Park & Recreation District (FGIC)
3.750%, 12/01/10 560 587
Boulder Valley School District #RE-2, Series A,
Pre-refunded 12/01/04 @ 101 (STAID)
5.950%, 12/01/07 (a) 1,000 1,067
Boulder, Larimer & Weld Counties,
School District #R-2, Thompson, Series A,
Callable 12/15/04 @ 100 (STAID)
5.900%, 12/15/06 1,000 1,056
Boulder, Larimer & Weld Counties,
St. Vrain Valley School District,
Callable 12/15/13 @ 100 (MBIA) (STAID)
5.250%, 12/15/14 1,000 1,133
Douglas & Elbert Counties, School District #1, Series A,
Pre-refunded 12/15/04 @ 101 (MBIA) (STAID)
6.400%, 12/15/11 (a) 1,000 1,074
Eagle, Garfield & Routt Counties, School District #50-J,
Pre-refunded 12/01/04 @ 102 (FGIC) (STAID)
6.125%, 12/01/09 (a) 1,290 1,392
El Paso County School District #2, Harrison (STAID)
7.050%, 12/01/04 1,000 1,069
El Paso County School District #3, Widefield,
Zero Coupon Bond (MBIA)
4.700%, 12/15/09 (c) 500 414
El Paso County School District #20, Series A (STAID)
6.100%, 12/15/05 500 553
Elbert County School District #C-1, Elizabeth
5.150%, 12/01/08 500 567
Garfield County School District #RE-2,
Callable 12/01/12 @ 100 (FSA) (STAID)
5.250%, 12/01/19 1,530 1,667
</Table>
41
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Garfield, Pitkin & Eagle Counties School District #1,
Callable 06/15/04 @ 101 (MBIA) (STAID)
6.000%, 12/15/04 $ 1,000 $ 1,044
Jefferson County School
District #R-001 (MBIA) (STAID)
6.250%, 12/15/09 1,000 1,201
Jefferson County School District #R-001,
Callable 12/15/07 @ 101 (STAID)
5.000%, 12/15/12 200 219
Larimer County School
District #R-1, Poudre (STAID)
5.400%, 12/15/04 750 789
Parker Jordan Metropolitan District,
Callable 12/01/13 @ 100 (MBIA)
5.000%, 12/01/18 580 625
Pueblo County School District #70, Pueblo Rural,
Callable 12/01/12 @ 100 (FSA) (STAID)
4.000%, 12/01/13 445 460
Puerto Rico Commonwealth, Series C,
Mandatory Put 07/01/08 @ 100
5.000%, 07/01/18 (d) 1,000 1,099
Summit County School District #R-1,
Pre-refunded 12/01/04 @ 100
6.450%, 12/01/08 (a) 1,250 1,329
Westglenn Metropolitan District,
Callable 12/01/09 @ 100
6.000%, 12/01/14 1,220 1,320
-------------
TOTAL GENERAL OBLIGATIONS 20,948
-------------
CERTIFICATES OF PARTICIPATION - 5.6%
Aurora, Callable 12/01/04 @ 101 (MLO)
6.000%, 12/01/06 1,000 1,051
Colorado Springs Public Facility Authority,
Old City Hall Project (FSA) (MLO)
5.000%, 12/01/10 200 225
Englewood Civic Center Project,
Callable 12/01/08 @ 100 (MBIA) (MLO)
4.900%, 06/01/13 585 621
Garfield County Building (AMBAC) (MLO)
5.750%, 12/01/09 400 470
Garfield County Building,
Callable 12/01/09 @ 101 (AMBAC) (MLO)
5.300%, 12/01/11 400 449
Westminster Recreational Facilities,
Callable 09/01/09 @ 101 (MBIA) (MLO)
5.200%, 09/01/10 1,000 1,125
-------------
TOTAL CERTIFICATES OF PARTICIPATION 3,941
-------------
TOTAL MUNICIPAL BONDS
(Cost $63,355) 68,672
-------------
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 0.8%
First American Tax Free Obligations Fund,
Cl Y (e) 540,305 $ 540
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $540) 540
-------------
TOTAL INVESTMENTS - 98.3%
(Cost $63,895) 69,212
-------------
OTHER ASSETS AND LIABILITIES, NET - 1.7% 1,197
-------------
TOTAL NET ASSETS - 100.0% $ 70,409
-------------
</Table>
(a) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) Escrowed to Maturity issues are typically backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(c) The rate shown is the effective yield at the time of purchase.
(d) Variable Rate Security - The rate shown is the rate in effect as of
September 30, 2003.
(e) 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.
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $100,291, which represents
0.1% of net assets.
Cl - Class
CLE - Connie Lee Insurance Company
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FSA - Financial Security Assurance
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
RAAI - Radian Asset Assurance Inc.
STAID - State Aid Withholding
The accompanying notes are an integral part of the financial statements.
42
<Page>
COLORADO TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 94.1%
REVENUE BONDS - 65.7%
EDUCATION - 7.2%
Colorado State Board of Agriculture,
Auxiliary Facility Systems,
Callable 03/01/07 @ 101 (AMBAC)
5.125%, 03/01/17 $ 200 $ 216
Colorado State Educational & Cultural
Facilities Authority,
Ave Marie School Project,
Callable 12/01/10 @ 100 (AG)
6.000%, 12/01/16 200 231
Colorado State Educational & Cultural
Facilities Authority,
Classical Academy Charter School Project
6.375%, 12/01/11 675 715
Colorado State Educational & Cultural
Facilities Authority,
Core Knowledge Charter School,
Callable 11/01/09 @ 100
6.850%, 11/01/16 100 109
Colorado State Educational & Cultural
Facilities Authority,
University of Denver Project,
Callable 03/01/11 @ 100 (AMBAC)
5.350%, 03/01/20 500 543
University of Northern Colorado,
Auxiliary Facility System,
Pre-refunded 06/01/07 @ 100 (MBIA)
5.600%, 06/01/24 (a) 165 187
-------------
2,001
-------------
HEALTHCARE - 18.0%
Boulder County Longmont
United Hospital Project (AG)
5.250%, 12/01/09 260 291
5.300%, 12/01/10 330 367
Colorado State Health Facilities Authority,
Catholic Health Initiatives, Series A
5.000%, 03/01/12 250 269
Colorado State Health Facilities Authority,
Covenant Retirement Communities, Series B,
Callable 12/01/12 @ 101
6.125%, 12/01/33 350 351
Colorado State Health Facilities Authority,
The Devereux Foundation,
Callable 11/01/12 @ 100 (RAAI)
5.000%, 11/01/22 250 253
Colorado State Health Facilities Authority,
Evangelical Lutheran Health Facilities,
Callable 12/01/10 @ 102
6.900%, 12/01/25 150 163
Colorado State Health Facilities Authority,
National Jewish Medical & Research Center Project,
Callable 01/01/08 @ 100
5.375%, 01/01/16 300 307
Colorado State Health Facilities Authority,
Parkview Medical Center
5.500%, 09/01/07 500 541
5.600%, 09/01/11 300 323
Colorado State Health Facilities Authority,
Portercare Adventist Project,
Callable 11/15/11 @ 101
6.500%, 11/15/23 600 657
Colorado State Health Facilities Authority,
Steamboat Springs Health Project,
Callable 09/15/08 @ 101
5.300%, 09/15/09 $ 250 $ 255
Colorado State Health Facilities Authority,
Vail Valley Medical Center,
Callable 01/15/12 @ 100
5.800%, 01/15/27 500 509
Colorado State Health Facilities Authority,
Vail Valley Medical Center, Series A,
Callable 01/15/05 @ 101 (ACA)
6.500%, 01/15/13 250 260
Delta County Memorial Hospital District Enterprise,
Callable 09/01/13 @ 100
5.350%, 09/01/17 220 222
La Junta, Arkansas Valley Regional
Medical Center Project,
Callable 04/01/09 @ 101
6.100%, 04/01/24 100 100
University of Colorado Hospital Authority
5.600%, 11/15/31 100 102
-------------
4,970
-------------
HOUSING - 2.5%
Colorado State Housing Finance Authority,
Multifamily Project, Class I, Series B-4,
Callable 10/01/10 @ 100
5.900%, 04/01/31 100 105
Colorado State Housing Finance Authority, Series E-2,
Callable 08/01/10 @ 105 (AMT)
7.000%, 02/01/30 145 151
Colorado State Housing Finance Authority,
Single Family Housing Program, Series A-2,
Callable 10/01/09 @ 105 (AMT)
7.450%, 10/01/16 35 37
Colorado State Housing Finance Authority,
Single Family Housing Program, Series B-2,
Callable 04/01/10 @ 105 (AMT)
7.100%, 04/01/17 90 93
El Paso County, Series D, Zero Coupon Bond,
Escrowed to Maturity (AMT) (FSA) (GNMA)
6.000%, 07/01/11 (b) (c) 400 296
-------------
682
-------------
MISCELLANEOUS - 4.1%
Colorado State Educational & Cultural
Facilities Authority,
Nashville Public Radio,
Callable 04/01/12 @ 100
5.875%, 04/01/22 250 261
Colorado State Educational & Cultural
Facilities Authority,
National Conference of State Legislatures,
Callable 06/01/11 @ 100
5.250%, 06/01/21 750 771
Denver City & County, Helen G. Bonfils
Foundation Project, Series B,
Callable 12/01/07 @ 100
5.125%, 12/01/17 100 108
-------------
1,140
-------------
RECREATIONAL FACILITY AUTHORITY - 0.8%
Hyland Hills Metropolitan Park & Recreational
District, Series A,
Callable 12/15/07 @ 101
6.100%, 12/15/09 200 218
-------------
</Table>
43
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
TAX REVENUE - 7.1%
Boulder County Sales & Use Tax, Series A,
Callable 12/15/09 @ 101 (FGIC)
5.800%, 12/15/16 $ 495 $ 573
6.000%, 12/15/19 200 232
Douglas County Sales & Use Tax,
Callable 10/15/10 @ 100 (FSA)
5.625%, 10/15/20 200 224
Highlands Ranch Metropolitan District #2,
Callable 06/15/06 @ 101 (FSA)
5.000%, 06/15/16 200 215
Larimer County Sales & Use Tax,
Callable 12/15/10 @ 100 (AMBAC)
5.625%, 12/15/18 100 113
Metex Metropolitan District, Series A,
Callable 12/01/07 @ 101 (MBIA)
5.800%, 12/01/16 350 398
Mountain Village Metropolitan District,
San Miguel County,
Callable 12/01/07 @ 101 (MBIA)
5.200%, 12/01/17 200 219
-------------
1,974
-------------
TRANSPORTATION - 10.9%
Denver City & County Airport, Series E,
Callable 11/15/07 @ 101 (MBIA)
5.250%, 11/15/23 500 525
The E-470 Public State Authority, Series A,
Callable 09/01/07 @ 101 (MBIA)
5.000%, 09/01/16 750 809
Northwest Parkway Public Highway Authority,
Convertible, Zero Coupon Bond (AMBAC)
5.000%, 06/15/14 (b) 750 566
5.160%, 06/15/15 (b) 500 377
Northwest Parkway Public Highway Authority,
Convertible, Zero Coupon Bond,
Callable 06/15/16 @ 100 (AMBAC)
5.700%, 06/15/21 (b) 1,000 721
-------------
2,998
-------------
UTILITIES - 15.1%
Arapahoe County Water & Wastewater (MBIA)
5.000%, 12/01/26 750 763
Boulder Water & Sewer,
Callable 12/01/10 @ 100
5.700%, 12/01/19 300 340
Broomfield Water Activity Enterprise,
Callable 12/01/10 @ 101 (MBIA)
5.500%, 12/01/19 400 444
Colorado State Water Reserve & Power
Development Authority, Series A,
Callable 11/01/12 @ 100 (FGIC)
5.000%, 11/01/22 250 259
Colorado Water Power Development Authority
5.250%, 09/01/11 300 342
Denver City & County, Wastewater,
Callable 11/01/12 @ 100 (FGIC)
5.000%, 11/01/20 500 526
5.125%, 11/01/22 250 262
Fort Collins Wastewater Utility Enterprise,
Callable 12/01/10 @ 100 (FSA)
5.500%, 12/01/20 300 331
Platte River Power Authority, Series DD,
Callable 06/01/07 @ 102 (MBIA)
5.375%, 06/01/17 $ 500 $ 555
Pueblo County Board of Waterworks, Series A,
Callable 11/01/10 @ 100 (FSA)
5.875%, 11/01/18 305 352
-------------
4,174
-------------
TOTAL REVENUE BONDS 18,157
-------------
GENERAL OBLIGATIONS - 14.5%
Adams & Arapahoe Counties
Joint School District #28J, Aurora, Series C,
Callable 12/01/06 @ 102 (STAID)
5.350%, 12/01/15 300 323
Adams County School District #12,
Callable 12/15/07 @ 101 (FGIC)
5.400%, 12/15/16 250 288
Arapahoe County School District #5, Cherry Creek,
Callable 12/15/09 @ 100 (STAID)
5.500%, 12/15/19 550 610
Boulder Open Space Acquisition,
Callable 08/15/10 @ 100
5.450%, 08/15/16 350 391
Clear Creek School District #1,
Pre-refunded 12/01/10 @ 100 (FSA) (STAID)
5.750%, 12/01/17 (a) 200 237
Douglas County School District #RE-1,
Callable 12/15/12 @ 100 (FSA)
5.125%, 12/15/25 750 772
El Paso County School District #38,
Pre-refunded 12/01/10 @ 100 (STAID)
6.375%, 12/01/18 (a) 200 245
6.000%, 12/01/24 (a) 250 300
El Paso County School District #49,
Falcon, Series A,
Callable 12/01/09 @ 105 (FSA) (STAID)
6.000%, 12/01/18 200 235
Morgan County School District #RE-3,
Callable 12/01/09 @ 100 (AMBAC)
4.800%, 12/01/18 250 259
Pueblo County, School District #70,
Pre-refunded 12/01/09 @ 100 (FGIC) (STAID)
6.000%, 12/01/18 (a) 100 120
Puerto Rico Commonwealth, Public Improvements,
Callable 07/01/05 @ 101
6.000%, 07/01/29 200 218
-------------
TOTAL GENERAL OBLIGATIONS 3,998
-------------
CERTIFICATES OF PARTICIPATION - 13.9%
Arapahoe County Building Finance Authority,
Callable 02/15/10 @ 100 (AMBAC)
5.250%, 02/15/19 400 432
5.250%, 02/15/21 650 690
Broomfield Open Space Park & Recreation Facilities,
Callable 12/01/10 @ 100 (AMBAC)
5.500%, 12/01/20 800 881
Colorado Springs Old City Hall Project,
Callable 12/01/10 @ 100 (FSA)
5.500%, 12/01/17 200 225
5.500%, 12/01/20 200 221
Denver City & County, Series A,
Callable 05/01/10 @ 100 (MBIA)
5.500%, 05/01/17 400 447
</Table>
The accompanying notes are an integral part of the financial statements.
44
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
Eagle County, Callable 12/01/09 @ 101 (MBIA)
5.400%, 12/01/18 $ 300 $ 332
Fremont County Lease,
Callable 12/15/07 @ 101 (MBIA) (MLO)
5.300%, 12/15/17 250 287
Garfield County, Callable 12/01/09 @ 101 (AMBAC)
5.750%, 12/01/19 300 340
-------------
TOTAL CERTIFICATES OF PARTICIPATION 3,855
-------------
TOTAL MUNICIPAL BONDS
(Cost $23,487) 26,010
-------------
RELATED PARTY MONEY MARKET FUND - 4.0%
First American Tax Free Obligations Fund,
Cl Y (d) 1,118,634 1,119
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,119) 1,119
-------------
TOTAL INVESTMENTS - 98.1%
(Cost $24,606) 27,129
-------------
OTHER ASSETS AND LIABILITIES, NET - 1.9% 514
-------------
TOTAL NET ASSETS - 100.0% $ 27,643
-------------
</Table>
(a) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) The rate shown is the effective yield at the time of purchase.
(c) Escrowed to Maturity issues are typically backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(d) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements.
ACA - American Capital Access
AG - Asset Guaranty
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $576,135, which represents 2.1%
of net assets.
Cl - Class
FGIC - Financial Guaranty Insurance Corporation
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
RAAI - Radian Asset Assurance Inc.
STAID - State Aid Withholding
INTERMEDIATE TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 99.4%
ALABAMA - 0.9%
Alabama State Docks Department,
Callable 10/01/08 @ 102 (MBIA) (RB)
5.250%, 10/01/10 $ 3,000 $ 3,375
Anniston, Regional Medical Center Board,
Northeast Alabama Regional Medical
Center Project,
Escrowed to Maturity (RB)
8.000%, 07/01/11 (a) 1,400 1,779
West Jefferson Amusement & Public Park
Authority, First Mortgage, Visionland
Alabama Project,
Pre-refunded 12/01/06 @ 102 (RB)
7.500%, 12/01/08 (b) 975 1,066
-------------
6,220
-------------
ALASKA - 1.1%
Alaska Energy Authority, Bradley Lake,
Third Series (FSA) (RB)
6.000%, 07/01/10 2,610 3,083
Alaska State Housing Finance Corporation,
Series A (MBIA) (RB)
5.350%, 06/01/06 380 382
Alaska State Housing Finance Corporation,
Series A (RB)
5.900%, 12/01/04 700 733
Alaska State Housing Finance Corporation,
Series A, Callable 06/01/04 @ 102 (RB)
5.400%, 12/01/23 3,000 3,040
Alaska State Housing Finance Corporation,
Series A, Callable 12/01/05 @ 102 (MBIA) (RB)
5.400%, 12/01/08 1,000 1,058
-------------
8,296
-------------
ARIZONA - 3.4%
Arizona Health Facilities Authority,
Pre-refunded 11/01/03 @ 102 (RB)
7.250%, 11/01/14 (b) 5,445 5,557
Arizona State Municipal Financing Program,
Escrowed to Maturity (COP) (MLO)
8.750%, 08/01/07 (a) 1,500 1,883
Arizona State Municipal Financing Program,
Series 15, Escrowed to Maturity (COP)
8.750%, 08/01/07 (a) 2,085 2,615
Arizona State Transportation Highway Board (RB)
8.000%, 07/01/05 5,000 5,588
Arizona Tourism & Sports Authority, Multipurpose
Stadium Facility, Series A (MBIA) (RB)
4.500%, 07/01/13 1,000 1,076
Maricopa County School District #69,
Paradise Valley (GO) (MBIA)
5.300%, 07/01/11 1,000 1,141
Phoenix Street & Highway User (RB)
6.500%, 07/01/09 180 183
6.250%, 07/01/11 900 913
Phoenix, Series A (GO)
5.550%, 07/01/09 1,000 1,160
Tucson Airport Authority (FSA) (RB)
5.000%, 06/01/13 2,760 3,052
</Table>
45
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Yavapai County Industrial Development Authority,
Waste Management Project,
Mandatory Put 06/01/05 @ 100 (AMT) (RB)
4.625%, 06/01/27 $ 2,000 $ 2,052
-------------
25,220
-------------
ARKANSAS - 0.4%
Pulaski County, Residential Housing
Facilities Board,
Escrowed to Maturity (FHA) (RB) (VA)
7.250%, 06/01/10 (a) 2,640 3,101
-------------
CALIFORNIA - 4.3%
ABAG Financial Authority,
Archstone Redwood Housing Project,
Series A (RB)
5.300%, 10/01/08 290 310
ABC Unified School District,
Series A (GO) (MBIA)
4.900%, 02/01/20 1,615 1,736
Bakersfield Convention Center Expansion Project,
Callable 04/01/07 @ 101 (COP) (MBIA) (MLO)
5.400%, 04/01/09 1,000 1,127
California State Department of Water, Series A,
Callable 05/01/12 @ 101 (RB)
5.875%, 05/01/16 2,000 2,243
California State, Callable 08/01/13 @ 100 (GO)
5.000%, 02/01/16 1,000 1,056
5.000%, 02/01/17 2,000 2,096
California State, Callable 11/01/11 @ 100 (GO)
5.000%, 11/01/18 5,000 5,168
California Statewide Communities Development
Authority, Archstone Seascape,
Mandatory Put 06/01/08 @ 100 (RB)
5.250%, 06/01/29 1,000 1,063
California Statewide
Communities Development Authority,
Elder Care Alliance, Series A (RB)
7.250%, 11/15/11 1,450 1,443
California Statewide Communities Development
Authority, Multifamily Housing,
Citrus Gardens Apartments,
Callable 07/01/12 @ 102 (RB)
5.375%, 07/01/26 500 503
California Statewide
Communities Development Authority,
Waste Management Project,
Mandatory Put 04/01/04 @ 100 (AMT) (RB)
4.950%, 04/01/11 750 758
Golden State Tobacco Securitization,
Callable 06/01/10 @ 100 (GO)
5.600%, 06/01/28 2,000 2,012
Golden State Tobacco Securitization,
Series B (RB)
5.000%, 06/01/12 1,000 1,073
Hacienda La Puente Unified School District,
Capital Appreciation, Election 2000, Series B,
Zero Coupon Bond (FSA) (GO)
4.580%, 08/01/14 (c) (d) 100 63
La Verne, Brethren Hillcrest Homes, Series B,
Callable 02/15/13 @ 101 (ACA) (COP)
5.600%, 02/15/33 1,150 1,173
Mountain View Los Altos School District,
Callable 05/01/07 @ 102 (GO)
6.500%, 05/01/17 2,000 2,309
Oxnard Redevelopment Agency,
Callable 06/21/04 @ 103 (COP)
4.125%, 07/01/05 $ 500 $ 519
Roseville California JT High School,
Callable 08/01/11 @ 101 (GO)
5.100%, 08/01/19 390 413
San Diego County,
Developmental Services Foundation,
Callable 09/01/12 @ 100 (COP)
5.500%, 09/01/27 2,250 2,255
San Marcos, Escrowed to Maturity,
Zero Coupon Bond (COP)
4.890%, 02/15/06 (a) (c) 1,085 1,047
San Mateo Unified High School District, Series B,
Zero Coupon Bond (FGIC) (GO)
5.150%, 09/01/17 (c) 1,000 527
Victor Elementary School District, Series A,
Zero Coupon Bond (FGIC) (GO)
5.660%, 08/01/23 (c) 2,030 726
Woodland Financial Authority,
Callable 03/01/13 @ 102 (RB) (XLCA)
4.700%, 03/01/19 815 835
4.800%, 03/01/20 855 876
-------------
31,331
-------------
COLORADO - 5.6%
Arapahoe County, Single Family, Escrowed to
Maturity, Zero Coupon Bond (RB)
3.340%, 09/01/10 (a) (c) 9,320 7,376
Boulder County Open Space Capital Improvement
Trust Fund, Callable 07/15/10 @ 100 (RB)
4.750%, 07/15/12 400 431
Colorado Department of Transportation
(AMBAC) (RB)
6.000%, 06/15/08 3,000 3,497
Colorado State Educational & Cultural
Facilities Authority,
Bromley East Charter School Project,
Callable 09/15/11 @ 100 (RB)
6.750%, 09/15/15 1,200 1,239
Colorado State Educational & Cultural
Facilities Authority,
Classical Academy Charter School Project (RB)
6.375%, 12/01/11 960 1,017
Colorado State Educational & Cultural
Facilities Authority,
Classical Academy Charter School Project,
Callable 12/01/11 @ 100 (RB)
6.750%, 12/01/16 1,500 1,555
7.250%, 12/01/21 1,500 1,557
Colorado State Educational & Cultural Facilities
Authority, Johnson & Wales University Project,
Series A, Callable 04/01/13 @ 100 (RB) (XLCA)
5.000%, 04/01/28 1,000 1,011
Colorado State Educational & Cultural
Facilities Authority,
Pinnacle Charter School Project (RB)
5.250%, 12/01/11 1,635 1,652
Colorado State Health Facilities Authority,
Catholic Health Initiatives, Series A (RB)
5.000%, 03/01/12 745 802
</Table>
The accompanying notes are an integral part of the financial statements.
46
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Colorado State Health Facilities Authority,
Evangelical Lutheran Health Facilities,
Callable 10/01/12 @ 100 (RB)
5.900%, 10/01/27 $ 250 $ 255
Colorado State Health Facilities Authority,
Retirement Facilities, Escrowed to Maturity,
Zero Coupon Bond (RB)
5.500%, 07/15/20 (a) (c) 10,000 4,407
Colorado State Housing Finance Authority,
Series A-2, Callable 05/01/06 @ 105 (RB)
7.150%, 11/01/14 335 336
Colorado Water & Power Development Authority,
Series A (RB)
5.250%, 09/01/13 2,100 2,392
El Paso County School District #2, Harrison,
Callable 12/01/11 @ 100 (FGIC) (GO) (STAID)
5.500%, 12/01/16 1,280 1,444
Jefferson County School District #R-1 (GO) (MBIA)
6.500%, 12/15/11 2,000 2,461
Jefferson County School District #R-1,
Callable 12/15/08 @ 101 (FGIC) (GO) (STAID)
5.250%, 12/15/11 1,000 1,123
Loveland, Escrowed to Maturity (GO)
8.875%, 11/01/05 (a) 1,065 1,156
Mesa County, Escrowed to Maturity,
Zero Coupon Bond (RB)
3.539%, 12/01/11 (a) (c) 5,500 4,067
Northwest Parkway Public Highway Authority,
Convertible, Zero Coupon Bond (AMBAC) (RB)
5.250%, 06/15/15 (c) 2,750 2,073
Westminster Water & Wastewater Utilities
Improvement,
Callable 12/01/04 @ 100 (AMBAC) (RB)
6.000%, 12/01/09 1,000 1,056
-------------
40,907
-------------
CONNECTICUT - 0.7%
Mashantucket Western Pequot Tribe, Series A,
Callable 09/01/06 @ 102,
Pre-refunded 09/01/07 @ 101 (RB)
6.400%, 09/01/11 (b) (e) 4,170 4,794
-------------
DELAWARE - 0.9%
Delaware State Economic Development Authority,
Pre-refunded 07/01/05 @ 102 (RB)
7.625%, 07/01/25 (b) 2,800 3,156
Delaware State Health Facilities Authority,
Partially Pre-refunded 04/01/04
and 10/01/04 @ 100 (RB)
7.000%, 10/01/15 (b) 1,265 1,315
New Castle County, Callable 10/01/03 @ 102 (GO)
5.300%, 10/01/05 2,000 2,047
-------------
6,518
-------------
FLORIDA - 1.7%
Escambia County Health Facilities Authority,
Ascension Health Credit, Series A (RB)
5.250%, 11/15/14 2,000 2,194
Florida State Municipal Loan Council, Series C,
Callable 11/01/12 @ 101 (MBIA) (RB)
5.250%, 11/01/14 1,325 1,492
Greater Orlando Aviation Authority,
Airport Facilities (AMT) (FGIC) (RB)
5.250%, 10/01/09 1,815 2,025
Lee County Industrial Development Authority,
Shell Point Village Health Project, Series A (RB)
5.500%, 11/15/08 $ 1,000 $ 1,078
Palm Beach County Health Facilities Authority,
Abbey Delray South, Life Care Retirement
Community (RB)
5.250%, 10/01/13 1,400 1,418
Palm Beach County Housing Facilities, Lourdes
Noreen McKeen (RAAI) (RB)
3.500%, 12/01/08 785 817
3.750%, 12/01/09 815 849
Tampa Excise Tax, Callable 10/01/03 @ 100 (RB)
6.125%, 04/01/08 2,000 2,268
-------------
12,141
-------------
GEORGIA - 0.2%
Cherokee County Water & Sewer Authority,
Escrowed to Maturity,
Callable 02/01/04 @ 101.50 (MBIA) (RB)
11.250%, 08/01/07 (a) 1,445 1,824
-------------
HAWAII - 1.4%
Hawaii State Airport System,
Series B (AMT) (FGIC) (RB)
6.250%, 07/01/06 2,000 2,233
Hawaii State Harbor System,
Series A (AMT) (FSA) (RB)
5.250%, 07/01/08 2,270 2,545
Hawaii State, Series CY (FSA) (GO)
5.250%, 02/01/10 5,000 5,669
-------------
10,447
-------------
IDAHO - 0.1%
Ada & Canyon Counties, Joint School District #2,
Pre-refunded 07/30/05 @ 101 (GO)
5.500%, 07/30/11 (b) 1,000 1,089
-------------
ILLINOIS - 17.6%
Bolingbrook, Capital Appreciation, Escrowed to
Maturity, Zero Coupon Bond (FGIC) (GO)
4.950%, 01/01/06 (a) (c) 1,000 966
Bolingbrook, Capital Appreciation,
Zero Coupon Bond (GO)
4.850%, 01/01/05 (c) 1,080 1,063
Champaign County Community Unit School
District #004 (GO)
8.250%, 01/01/09 1,315 1,653
Chicago Water, Zero Coupon Bond (FGIC) (RB)
6.776%, 11/01/08 (c) 5,150 4,492
5.260%, 11/01/09 (c) 6,450 5,358
Chicago, City Colleges,
Zero Coupon Bond (FGIC) (GO)
5.900%, 01/01/15 (c) 10,000 6,114
Chicago, Midway Airport Project,
Series C (MBIA) (RB)
5.500%, 01/01/14 1,300 1,466
Chicago, Park District, Parking Facilities
Authority (ACA) (RB)
5.500%, 01/01/08 3,585 4,085
Chicago, Project & Refunding (AMBAC) (GO)
6.250%, 01/01/08 1,000 1,163
Chicago, Project & Refunding (FSA) (GO)
5.500%, 01/01/13 1,000 1,142
Chicago, Project & Refunding, Series A (FGIC) (GO)
5.250%, 01/01/11 5,000 5,641
</Table>
47
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Chicago, Single Family Mortgages, Series A,
Callable 03/01/06 @ 103 (AMT) (FHLMC)
(FNMA) (GNMA) (RB)
5.250%, 03/01/13 $ 90 $ 91
Cook County Community High School District #219,
Zero Coupon Bond (FSA) (GO)
4.900%, 12/01/07 (c) 1,560 1,414
Cook County Community Unit School District #65,
Evanston, Series A (FSA) (GO)
6.375%, 05/01/09 3,000 3,579
Cook County Community Unit School District #102,
Zero Coupon Bond (FGIC) (GO)
5.200%, 12/01/13 (c) 2,440 1,600
Cook County Community Unit School District #401
Elmwood Park,
Zero Coupon Bond (FSA) (GO)
5.800%, 12/01/11 (c) 3,625 2,672
Cook County High School District #200, Oak Park,
Zero Coupon Bond (FSA) (GO)
4.900%, 12/01/06 (c) 2,265 2,135
Cook County School District #99 (FGIC) (GO)
8.500%, 12/01/04 1,000 1,084
Cook County School District #123, Oak Lawn,
Capital Appreciation,
Zero Coupon Bond (MBIA) (GO)
5.100%, 12/01/15 (c) 2,250 1,315
Cook County Township High School District #225,
Northfield Township (GO)
5.000%, 12/01/15 (d) 1,405 1,569
Cook County, Escrowed to Maturity (MBIA) (GO)
7.250%, 11/01/07 (a) 2,000 2,265
Cook County, Series A (MBIA) (GO)
6.250%, 11/15/11 1,000 1,205
Du Page County Community High School District #94,
West Chicago (FSA) (GO)
7.250%, 11/01/09 1,780 2,221
Granite Single Family Mortgage (RB)
7.750%, 10/01/11 820 1,008
Illinois Development Finance Authority,
Midwestern University, Series B,
Callable 05/15/11 @ 101 (RB)
5.750%, 05/15/16 350 374
Illinois State (AMBAC) (COP) (MLO)
6.000%, 07/01/06 1,000 1,119
Illinois State Development Finance Authority,
Elgin School District, Zero Coupon Bond (RB)
5.210%, 01/01/18 (c) 2,750 1,401
Illinois State Development Finance Authority,
Elmhurst Community School #205,
Callable 01/01/11 @ 100 (FSA) (RB)
6.375%, 01/01/13 1,025 1,223
Illinois State Development Finance Authority,
Waste Management Project (AMT) (RB)
5.850%, 12/01/07 1,000 1,063
Illinois State Educational Facilities Authority,
Loyola University of Chicago, Series A,
Escrowed to Maturity (RB)
7.000%, 07/01/07 (a) 1,000 1,161
Illinois State Educational Facilities Authority,
The Art Institute of Chicago,
Mandatory Put 03/01/06 @ 100 (RB)
4.700%, 03/01/30 4,500 4,774
Illinois State Health Facilities Authority (RB)
6.500%, 02/15/06 $ 1,130 $ 1,244
Illinois State Health Facilities Authority,
Covenant Retirement Communities,
Series A (RAAI) (RB)
3.875%, 12/01/08 1,000 1,053
4.350%, 12/01/10 1,605 1,685
Illinois State Health Facilities Authority,
Evangelical, Escrowed to Maturity (RB)
6.750%, 04/15/12 (a) 1,320 1,617
Illinois State Health Facilities Authority,
Mercy Hospital & Medical Center, Escrowed to
Maturity, Callable 10/01/03 @ 100 (RB)
10.000%, 01/01/15 (a) 820 1,150
Illinois State Sales Tax (RB)
6.000%, 06/15/09 2,500 2,943
5.100%, 06/15/10 2,000 2,255
Illinois State, Callable 06/01/09 @ 101 (FGIC) (GO)
5.375%, 06/01/10 2,000 2,314
Illinois State, First Series,
Callable 08/01/10 @ 100 (GO)
5.500%, 08/01/15 4,500 5,040
Kane County School District #129, Aurora
West Side, Series A (GO) (MBIA)
6.500%, 02/01/07 1,000 1,149
Lake County Community Unit School District #50,
Woodland (GO) (MBIA)
8.500%, 01/01/07 1,460 1,766
Lake County Community School District #50,
Woodland, Series A,
Callable 12/01/08 @ 100 (FGIC) (GO)
5.000%, 12/01/09 1,000 1,110
Lake County Community Unit School District #60,
Waukegan, Series B (FSA) (GO)
6.000%, 12/01/07 2,785 3,226
7.500%, 12/01/08 3,640 4,533
Lake County School District #56,
Gurnee (FGIC) (GO)
8.375%, 01/01/10 1,290 1,677
Madison & Jersey Counties Unit School District #11,
Alton, Capital Appreciation,
Zero Coupon Bond (FSA) (GO)
5.350%, 12/01/19 (c) 2,100 959
Metropolitan Pier & Exposition Authority,
State Sales Tax, Series A,
Zero Coupon Bond (FGIC) (RB)
5.000%, 06/15/09 (c) 35 30
Metropolitan Pier & Exposition Authority,
State Sales Tax, Series A,
Callable 06/15/06 @ 102 (AMBAC) (RB)
6.000%, 06/15/07 750 845
Metropolitan Pier & Exposition Authority,
State Sales Tax, Series A,
Callable 12/15/09 @ 101 (FGIC) (RB)
5.550%, 12/15/11 675 773
Metropolitan Pier & Exposition Authority,
State Sales Tax, Series A, Escrowed to Maturity,
Zero Coupon Bond (FGIC) (RB)
5.000%, 06/15/09 (a) (c) 1,465 1,237
Metropolitan Pier & Exposition Authority,
State Sales Tax, Series A,
Pre-refunded 06/15/06 @ 102 (AMBAC) (RB)
6.000%, 06/15/07 (b) 250 285
</Table>
The accompanying notes are an integral part of the financial statements.
48
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Metropolitan Pier & Exposition Authority,
State Sales Tax,
Zero Coupon Bond (FGIC) (MBIA) (RB)
5.200%, 06/15/17 (c) $ 1,000 $ 676
Morton Grove Residential Housing,
Escrowed to Maturity (MBIA) (RB)
7.350%, 09/01/09 (a) (e) 5,570 6,984
Rockford School District #205 (FGIC) (GO)
5.000%, 02/01/14 500 554
Springfield Electric Revenue (MBIA) (RB)
6.000%, 03/01/06 1,050 1,162
St. Clair County,
Callable 10/01/09 @ 102 (FGIC) (GO)
6.000%, 10/01/11 1,000 1,177
St. Clair County, Public Building,
Series C (FGIC) (RB)
6.000%, 12/01/09 2,175 2,571
University of Illinois,
Escrowed to Maturity (RB)
6.100%, 10/01/03 (a) 1,005 1,005
Will County School District #86,
Zero Coupon Bond (FSA) (GO)
5.600%, 11/01/17 (c) 3,870 2,020
Will County School District #365,
Zero Coupon Bond (FSA) (GO)
4.530%, 11/01/05 (c) 1,685 1,636
Winnebago & Boone Counties School District #205,
Series C, Partially Escrowed to
Maturity (FGIC) (GO)
6.000%, 02/01/08 (a) 5,065 5,854
Winnebago County School District #122,
Harlem-Love Park,
Zero Coupon Bond (FSA) (GO)
5.200%, 01/01/17 (c) 3,000 1,627
-------------
128,573
-------------
INDIANA - 2.4%
Crown Point Multi-School Building,
First Mortgage (MBIA) (RB)
7.625%, 01/15/08 1,000 1,217
Evansville Vanderburgh, Public Leasing,
Callable 01/15/12 @ 100 (MBIA) (RB)
5.750%, 07/15/18 1,000 1,115
Franklin Township Independent School Building
Corporation (RB)
5.750%, 07/15/09 1,235 1,448
Gary Sanitation District, Special Tax
District (GO) (RAAI)
3.750%, 02/01/11 1,260 1,254
Indiana State Educational Facilities Authority,
St. Joseph's College Project (RB)
6.100%, 10/01/09 1,360 1,495
Indiana State Educational Facilities Authority,
St. Joseph's College Project,
Callable 10/01/09 @ 102 (RB)
6.600%, 10/01/14 1,410 1,513
Indiana State Housing Authority, Series B-1,
Callable 07/01/05 @ 102 (RB)
6.150%, 07/01/17 700 710
Indiana Transportation Finance Authority,
Escrowed to Maturity,
Callable 06/01/11 @ 100 (RB)
5.750%, 06/01/12 (a) 180 210
Indiana Transportation Finance Authority,
Series A (AMBAC) (RB)
5.750%, 06/01/12 $ 1,820 $ 2,127
Indiana University, Series K,
Zero Coupon Bond (MBIA) (RB)
5.360%, 08/01/11 (c) 2,750 2,053
Indianapolis Industry Local Public Improvement
Board, Series D (RB)
6.600%, 02/01/07 1,960 2,247
St. Joseph County Hospital,
Callable 02/15/08 @ 101 (MBIA) (RB)
4.750%, 08/15/12 1,000 1,045
Zionsville Community Schools Building,
First Mortgage Bonds,
Callable 01/15/12 @ 100 (FGIC) (RB) (STAID)
5.750%, 07/15/15 775 879
-------------
17,313
-------------
IOWA - 1.3%
Iowa Higher Education Authority,
Callable 10/01/12 @ 100 (ACA) (RB)
5.500%, 10/01/28 2,000 2,074
Iowa Higher Education Authority,
Central College (RB)
5.450%, 10/01/26 1,000 1,040
Muscatine Electric, Escrowed to Maturity,
Callable 01/01/04 @ 100 (RB)
9.700%, 01/01/13 (a) 2,140 2,893
Salix Pollution Control, Interstate Power Company,
Mandatory Put 01/01/04 @ 100 (RB)
4.200%, 01/01/13 3,450 3,463
-------------
9,470
-------------
KANSAS - 1.5%
Butler County Public Building Authority (MBIA) (RB)
6.375%, 10/01/10 1,000 1,209
Hays Water & Sewer,
Escrowed to Maturity,
Callable 03/01/04 @ 100 (RB)
6.500%, 03/01/07 (a) 1,000 1,157
Johnson County Residual Housing,
Escrowed to Maturity, Zero Coupon Bond,
Callable 05/01/12 @ 100 (RB)
3.800%, 05/01/12 (a) (c) 7,500 5,351
Sedgwick & Shawnee Counties, Single Family
Mortgages, Series A-2 (GNMA) (RB)
6.700%, 06/01/29 1,560 1,649
Sedgwick County School District #267
(AMBAC) (GO)
5.250%, 11/01/12 1,045 1,191
-------------
10,557
-------------
KENTUCKY - 1.0%
Kentucky State Economic Development Finance
Authority, Scottsville Medical Center, Series A,
Pre-refunded 11/01/04 @ 103 (RB)
9.000%, 11/01/24 (b) 2,215 2,459
Kentucky State Turnpike Authority,
Escrowed to Maturity (RB)
7.200%, 07/01/09 (a) 1,240 1,445
Kentucky State Turnpike Authority,
Escrowed to Maturity,
Callable 10/01/03 @ 100 (RB)
6.000%, 07/01/11 (a) 815 934
</Table>
49
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Louisville Water,
Escrowed to Maturity (RB)
6.000%, 11/15/07 (a) $ 1,250 $ 1,444
Louisville Water,
Escrowed to Maturity,
Callable 10/01/03 @ 101 (RB)
6.375%, 11/01/07 (a) 1,000 1,024
-------------
7,306
-------------
LOUISIANA - 0.3%
Louisiana Local Government Environmental
Facilities, Community Development Authority,
Callable 01/01/12 @ 101 (AMT) (RB)
6.650%, 01/01/25 870 902
Orleans Parish, Parishwide School District,
Series A (FGIC) (GO)
7.375%, 09/01/07 1,145 1,377
-------------
2,279
-------------
MAINE - 0.3%
Maine Municipal Bond Bank, Series B (FSA) (GO)
5.750%, 11/01/10 2,000 2,349
-------------
MASSACHUSETTS - 4.0%
Boston Industrial Development Financing
Authority, Crosstown Center Project,
Callable 09/01/12 @ 102 (AMT) (RB)
6.500%, 09/01/35 2,000 1,972
Massachusetts Bay Transportation Authority,
General Transportation System Project,
Series C (FGIC) (RB)
5.750%, 03/01/10 2,100 2,445
Massachusetts Bay Transportation Authority,
Series A (RB)
6.250%, 03/01/12 1,875 2,258
Massachusetts State Commonwealth, Special
Obligation, Series A (RB)
5.500%, 06/01/13 1,000 1,146
Massachusetts State Health & Educational
Facilities Authority, Partners Healthcare System,
Series A, Callable 07/01/07 @ 101 (MBIA) (RB)
5.100%, 07/01/10 3,000 3,263
Massachusetts State Port Authority (RB)
5.750%, 07/01/12 1,000 1,139
Massachusetts State Port Authority, Escrowed to
Maturity, Callable 10/01/03 @ 100 (RB)
13.000%, 07/01/13 (a) 4,515 6,905
Massachusetts State, Multi-Family Housing,
Escrowed to Maturity,
Callable 10/01/03 @ 100 (FHA) (RB)
6.350%, 04/01/08 (a) 1,000 1,025
Massachusetts State, Series A,
Callable 01/01/11 @ 100 (GO)
5.125%, 01/01/16 3,000 3,363
Massachusetts State, Series B,
Pre-refunded 05/01/10 @ 100 (GO)
5.000%, 05/01/12 (b) 5,000 5,603
-------------
29,119
-------------
MICHIGAN - 5.5%
Chippewa Valley Schools,
Callable 05/01/12 @ 100 (GO) (MQSBLF)
5.500%, 05/01/14 1,775 2,011
Constantine Public Schools,
Callable 11/01/12 @ 100 (GO) (MQSBLF)
5.000%, 05/01/15 $ 1,050 $ 1,149
5.000%, 05/01/16 1,075 1,167
Detroit (AMT) (FSA) (GO)
5.750%, 04/01/09 1,255 1,432
Detroit Water Supply,
Escrowed to Maturity,
Callable 10/01/03 @ 101 (FGIC) (RB)
6.250%, 07/01/12 (a) 285 295
Gibraltar School District,
Callable 11/01/12 @ 100 (GO) (MQSBLF)
5.500%, 05/01/15 1,175 1,338
Lakeshore Public Schools,
Callable 05/01/11 @ 100 (GO)
5.000%, 05/01/12 1,260 1,390
Lakeview Public Schools,
Callable 05/01/11 @ 100 (GO)
5.000%, 05/01/14 1,985 2,157
Lansing Community College,
College Building & Site,
Callable 05/01/13 @ 100 (GO) (MBIA)
5.000%, 05/01/15 1,000 1,099
Michigan State Hospital Finance Authority,
Ascension Health Credit, Series B,
Mandatory Put 11/15/05 @ 100 (RB)
5.200%, 11/15/33 3,000 3,237
Michigan State Hospital Finance Authority,
Henry Ford Health Systems, Series A,
Callable 03/01/13 @ 100 (RB)
5.500%, 03/01/15 3,500 3,744
Michigan State Hospital Finance Authority,
Henry Ford Hospital,
Escrowed to Maturity,
Callable 10/01/03 @ 100 (RB)
9.000%, 05/01/08 (a) 4,500 5,471
Michigan State Housing Development Authority,
Green Hill Project,
Callable 07/15/04 @ 102 (FNMA) (RB)
5.125%, 07/15/08 1,980 2,050
Michigan State Strategic Fund,
Dow-Chemical Project,
Mandatory Put 06/01/06 @ 100 (RB)
3.800%, 06/01/14 (f) 2,200 2,257
Oakland University,
Callable 05/15/05 @ 102 (MBIA) (RB)
5.600%, 05/15/10 1,000 1,089
Plainwell Community Schools,
School Building & Site,
Callable 11/01/12 @ 100 (GO) (MQSBLF)
5.500%, 05/01/15 1,000 1,139
Rochester Community School District, Series 1,
Callable 05/01/10 @ 100 (FGIC) (GO)
5.375%, 05/01/11 2,000 2,255
Romulus Economic Development Corporation,
Partnership Project,
Escrowed to Maturity,
Callable 10/01/03 @ 102 (RB)
7.000%, 11/01/15 (a) 1,300 1,662
Wayne Charter County Airport, Series A,
Callable 12/01/08 @ 101 (AMT) (MBIA) (RB)
5.250%, 12/01/09 5,000 5,542
-------------
40,484
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
50
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MINNESOTA - 3.3%
Hopkins Housing & Redevelopment Authority,
Public Works & Fire Station, Series A,
Callable 02/01/13 @ 100 (MBIA) (RB)
5.000%, 02/01/16 $ 1,000 $ 1,089
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B (AMT) (FGIC) (RB)
5.750%, 01/01/10 1,000 1,130
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B,
Callable 01/01/08 @ 101 (AMBAC) (AMT) (RB)
5.375%, 01/01/10 3,000 3,256
Minneapolis Hospital & Rehabilitation,
Escrowed to Maturity (RB)
10.000%, 06/01/13 (a) 1,035 1,418
Minnesota Agriculture & Economic Development
Board, Health Care Systems, Series A,
Callable 11/15/10 @ 101 (RB)
5.875%, 11/15/11 2,135 2,369
Monticello, Big Lake Community Hospital District,
Health Care Facilities, Series C (RB)
5.250%, 12/01/11 1,940 1,996
Moorhead Independent School District #152,
Callable 04/01/12 @ 100 (FGIC) (GO) (MSDCEP)
5.000%, 04/01/13 1,270 1,404
Robbinsdale Independent School District #281
(GO) (MSDCEP)
5.000%, 02/01/09 1,250 1,404
Robbinsdale Independent School District #281,
Callable 02/01/09 @ 100 (GO) (MSDCEP)
5.250%, 02/01/12 1,435 1,620
South Washington County Independent School
District #833, Series A,
Callable 02/01/10 @ 100 (GO) (MSDCEP)
5.300%, 02/01/11 1,000 1,121
St. Paul Housing & Redevelopment Authority,
Callable 08/01/06 @ 102.50 (AMBAC) (RB)
6.400%, 02/01/07 1,195 1,373
6.400%, 08/01/07 1,205 1,382
6.500%, 02/01/09 1,315 1,528
St. Paul Port Authority Hotel,
Pre-refunded 08/01/08 @ 100 (RB)
8.050%, 08/01/21 (b) 2,335 2,935
-------------
24,025
-------------
MISSOURI - 0.6%
Missouri State Environmental Improvement &
Energy Resources Authority, Amerenue Project,
Series A (RB) (VRDO)
1.550%, 03/01/35 2,000 2,000
St. Louis Industrial Development Authority,
Convention Center Project, Series A,
Callable 12/15/10 @ 102 (AMT) (RB)
7.000%, 12/15/15 2,000 1,966
-------------
3,966
-------------
NEBRASKA - 1.2%
Buffalo County Hospital Authority #1,
Good Samaritan Hospital Project,
Escrowed to Maturity (RB)
6.375%, 11/01/03 (a) 30 30
Douglas County Hospital Authority #1,
Immanuel Medical Center,
Callable 09/01/07 @ 102 (AMBAC) (RB)
4.800%, 09/01/08 1,400 1,549
Nebraska Educational Finance Authority,
Creighton University Project,
Callable 01/01/06 @ 101 (AMBAC) (RB)
5.600%, 01/01/07 $ 2,500 $ 2,735
Nebraska Educational Telecommunication
Commission, Leasing Project,
Series 2000 (MLO) (RB)
6.000%, 02/01/06 1,275 1,402
Nebraska Investment Financial Authority,
Great Plains Regional Medical Center (RAAI) (RB)
4.700%, 11/15/11 500 532
Nebraska Investment Financial Authority,
Great Plains Regional Medical Center,
Callable 05/15/12 @ 100 (RAAI) (RB)
4.800%, 11/15/12 500 531
4.900%, 11/15/13 600 636
Omaha Northwest Library Facilities,
Callable 08/15/07 @ 102 (MLO) (RB)
5.250%, 08/15/12 975 1,087
-------------
8,502
-------------
NEVADA - 1.5%
Carson City, Carson-Tahoe Hospital Project (RB)
5.750%, 09/01/11 1,000 1,089
5.750%, 09/01/12 1,055 1,145
Clark County School District,
Building & Renovation, Series B,
Callable 06/15/07 @ 101 (FGIC) (GO)
5.750%, 06/15/08 1,000 1,151
Nevada State, Callable 06/01/08 @ 100 (GO)
5.250%, 06/01/11 3,000 3,351
Washoe County, Escrowed to Maturity,
Callable 02/01/04 @ 100 (GO)
9.875%, 08/01/09 (a) 3,455 4,473
-------------
11,209
-------------
NEW JERSEY - 1.2%
New Jersey State Transportation Trust Fund
Authority, Series A (RB)
5.500%, 06/15/08 2,000 2,280
New Jersey State Turnpike Authority,
Escrowed to Maturity (RB)
6.750%, 01/01/09 (a) 820 905
New Jersey State Turnpike Authority,
Series A (MBIA) (RB)
5.500%, 01/01/09 5,000 5,731
-------------
8,916
-------------
NEW MEXICO - 1.6%
Albuquerque Joint Water & Sewer Systems,
Series A (RB)
5.250%, 07/01/09 2,200 2,509
Farmington, Pre-refunded 07/01/05 @ 100 (RB)
9.875%, 01/01/13 (b) 8,090 9,164
-------------
11,673
-------------
NEW YORK - 3.3%
Hempstead Town Industrial Development Agency,
Callable 12/01/06 @ 102 (MBIA) (RB)
5.000%, 12/01/08 2,000 2,193
Long Island Power Authority, Series B (RB)
5.250%, 12/01/13 4,000 4,381
New York City Transitional Finance Authority,
Series A, Callable 11/01/11 @ 100 (RB)
5.500%, 11/01/26 1,000 1,132
</Table>
51
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Mental
Health Services Facilities,
Callable 08/15/10 @ 100 (FSA) (RB)
5.750%, 02/15/11 $ 1,200 $ 1,383
New York State Dormitory Authority, State
Personal Income Tax, Series A (FSA) (RB)
5.500%, 03/15/12 2,000 2,298
New York State Environmental Facilities,
Pollution Control, Series D,
Pre-refunded 11/15/04 @ 102 (RB)
6.400%, 05/15/06 (b) 530 572
New York State Environmental Facilities,
Pollution Control, Series D-02,
Callable 11/15/04 @ 102 (RB)
6.400%, 05/15/06 225 243
New York State Environmental Facilities,
Pollution Control, Series D-02,
Pre-refunded 11/15/04 @ 102 (RB)
6.400%, 05/15/06 (b) 495 535
New York, Series A, Callable 08/01/12 @ 100 (GO)
5.750%, 08/01/15 3,220 3,558
New York, Series C, Callable 03/15/12 @ 100 (GO)
5.500%, 03/15/14 3,000 3,264
New York, Series D (GO)
5.500%, 06/01/12 2,000 2,220
New York, Series G (GO) (XLCA)
5.500%, 08/01/12 2,000 2,287
-------------
24,066
-------------
NORTH CAROLINA - 1.3%
Mecklenburg County, Series A (GO)
4.000%, 02/01/13 2,000 2,083
North Carolina Capital Facilities, Finance Agency,
Johnson & Wales University Project, Series A,
Callable 04/01/13 @ 100 (RB) (XLCA)
5.000%, 04/01/14 1,290 1,421
North Carolina Eastern Power Agency,
Series D (RB)
5.375%, 01/01/13 2,955 3,137
North Carolina Power Agency #1, Series A,
Callable 01/01/13 @ 100 (FSA) (RB)
5.250%, 01/01/16 2,000 2,219
Winston-Salem, Solid Waste Management
Project (RB)
4.000%, 04/01/13 965 998
-------------
9,858
-------------
NORTH DAKOTA - 0.2%
Fargo Health Systems, Meritcare Obligated Group,
Series A (FSA) (RB)
5.000%, 06/01/09 715 796
North Dakota State Industrial Commission,
Lignite Program, Series A (RB)
5.750%, 11/15/05 500 534
-------------
1,330
-------------
OHIO - 1.6%
Lorain County Hospital Facilities,
Catholic Healthcare Partners, Series B,
Callable 09/01/07 @ 102 (MBIA) (RB)
5.375%, 09/01/09 1,000 1,131
Ohio State Building Authority, Administration
Building Fund Project, Series A,
Callable 10/01/08 @ 101 (MLO) (RB)
5.250%, 10/01/09 3,000 3,392
Ohio State Building Authority, Adult Correctional
Facilities Project, Series A (MBIA) (MLO) (RB)
5.500%, 10/01/04 $ 1,000 $ 1,044
Ohio State Water Development Authority,
Escrowed to Maturity,
Callable 12/01/03 @ 100 (RB)
9.375%, 12/01/10 (a) 2,625 3,212
Richland County Hospital Facilities, Series A (RB)
5.450%, 11/15/04 690 717
5.500%, 11/15/05 725 774
5.550%, 11/15/06 765 836
5.650%, 11/15/08 595 661
-------------
11,767
-------------
OKLAHOMA - 2.9%
Cherokee County Economic, Zero Coupon Bond,
Escrowed to Maturity (AMBAC) (RB)
5.610%, 11/01/11 (a) (c) 3,340 2,483
Oklahoma City Industrial & Cultural Facilities,
Oklahoma City Project,
Callable 10/01/14 @ 101 (AMT) (RB)
5.750%, 01/01/23 1,430 1,357
Oklahoma County Housing Finance Authority,
Series B, Zero Coupon Bond,
Pre-refunded 03/01/06 @ 56.92 (RB)
5.740%, 07/01/12 (b) (c) 3,690 2,020
Oklahoma Housing Finance Agency,
Series A-2, Callable 05/01/05 @ 100 (FNMA) (RB)
5.500%, 11/01/25 3,000 3,161
South Oklahoma City,
Callable 10/01/03 @ 100,
Pre-refunded 02/01/10 @ 100 (RB)
9.750%, 02/01/13 (b) 4,090 5,356
Tulsa County Home Finance Authority,
Escrowed to Maturity (RB)
6.900%, 08/01/10 (a) 1,710 2,119
Tulsa County Independent School District #9 (GO)
5.750%, 06/01/04 2,000 2,063
Tulsa Educational Facilities Authority,
Holland Hall School Project, Series B,
Callable 12/01/08 @ 101 (RB)
4.600%, 12/01/09 1,195 1,289
Tulsa Metropolitan Utility Authority,
Callable 09/01/05 @ 102 (RB)
5.600%, 09/01/06 1,000 1,096
-------------
20,944
-------------
OREGON - 2.7%
Clackamas County School District #7J,
Lake Oswego, Callable 06/01/11 @ 100 (GO)
5.375%, 06/01/14 3,105 3,454
Lane County School District #19, Springfield,
Pre-refunded 10/15/04 @ 101 (GO) (MBIA)
5.900%, 10/15/06 (b) 1,000 1,060
Lane County School District #52, Bethel (GO) (SBG)
5.500%, 06/15/09 1,000 1,155
Oregon State Department, Administrative Services,
Series A (COP) (FSA)
5.500%, 11/01/13 1,275 1,475
Oregon State Department, Administrative Services,
Series E, Callable 11/01/12 @ 100 (COP) (FSA)
5.000%, 11/01/14 2,170 2,384
Polk, Marion & Benton Counties, School
District #13-J (FGIC) (GO)
5.500%, 12/01/04 1,015 1,068
</Table>
The accompanying notes are an integral part of the financial statements.
52
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Salem-Keizer School District #24-J,
Callable 06/01/09 @ 100 (GO) (SBG)
5.250%, 06/01/12 $ 5,000 $ 5,547
Washington County Unified Sewer Agency,
Series 1 (FGIC) (RB)
5.750%, 10/01/08 2,000 2,324
Washington County, Criminal Justice Facilities,
Pre-refunded 12/01/04 @ 100 (GO)
5.625%, 12/01/05 (b) 900 948
-------------
19,415
-------------
PENNSYLVANIA - 1.0%
Berks County Authority, Phoebe Berks Village
Income Project,
Pre-refunded 05/15/06 @ 102 (RB)
7.700%, 05/15/22 (b) 1,860 2,184
Central Greene School District, Capital
Appreciation, Escrowed to Maturity,
Zero Coupon Bond,
Callable 10/01/03 @ 63.986 (GO) (MBIA) (STAID)
4.690%, 12/01/07 (a) (c) 2,000 1,828
Montgomery County, Industrial Development
Authority, PECO Energy Project,
Series A, Mandatory Put 10/01/04 @ 100 (RB)
5.200%, 10/01/30 2,000 2,062
Philadelphia Hospitals Authority,
Pre-refunded 07/01/05 @ 100 (RB)
9.875%, 07/01/10 (b) 1,150 1,322
-------------
7,396
-------------
PUERTO RICO - 0.2%
Puerto Rico Electric Power Authority,
Series AA (MBIA) (RB)
6.000%, 07/01/06 1,000 1,123
-------------
SOUTH CAROLINA - 1.0%
Lexington County Health Services District Inc.,
Lexington Medical Center,
Callable 11/01/13 @ 100 (RB)
5.500%, 11/01/23 2,000 2,064
South Carolina Jobs Economic Development
Authority, Palmetto Health Alliance, Series A (RB)
6.000%, 08/01/13 1,000 1,056
South Carolina Jobs Economic Development
Authority, Palmetto Health Alliance, Series C (RB)
6.000%, 08/01/13 2,000 2,112
South Carolina State Public Service Authority,
Series A (MBIA) (RB)
5.500%, 01/01/10 1,665 1,912
-------------
7,144
-------------
SOUTH DAKOTA - 1.1%
Deadwood (ACA) (COP)
5.500%, 11/01/07 800 889
5.600%, 11/01/08 845 949
South Dakota State Health & Educational
Facilities Authority, Sioux Valley Hospital (RB)
5.250%, 11/01/08 900 996
South Dakota State Health & Educational
Facilities Authority, Westhills Village Retirement (RB)
5.500%, 09/01/04 640 646
5.650%, 09/01/05 665 675
5.800%, 09/01/06 735 748
5.900%, 09/01/07 755 769
4.750%, 09/01/11 530 538
5.000%, 09/01/12 1,000 1,023
South Dakota State Health & Educational
Facilities Authority, Westhills Village Retirement
Community, Callable 09/01/12 @ 101 (RB)
5.000%, 09/01/13 $ 1,000 $ 1,024
-------------
8,257
-------------
TENNESSEE - 1.6%
Metropolitan Government Nashville & Davidson
County, Escrowed to Maturity,
Callable 10/01/03 @ 102 (RB)
6.400%, 04/01/11 (a) 1,030 1,254
Shelby County Health, Educational & Housing
Facilities Board, Methodist Healthcare,
Callable 09/01/12 @ 100 (RB)
6.000%, 09/01/16 1,500 1,641
Shelby County Health, Educational & Housing
Facilities Board, St. Jude's Children's
Research (RB)
5.000%, 07/01/09 500 544
Sullivan County Health, Educational & Housing
Facilities, Wellmont Health Systems Project (RB)
6.250%, 09/01/11 1,465 1,634
6.250%, 09/01/12 1,085 1,206
Sullivan County Health, Educational & Housing
Facilities, Wellmont Health Systems Project,
Callable 09/01/12 @ 101 (RB)
6.500%, 09/01/13 2,215 2,495
Sullivan County Health, Educational & Housing
Facilities, Wellmont Health Systems Project,
Callable 09/01/13 @ 100 (RAAI) (RB)
5.000%, 09/01/16 3,000 3,153
-------------
11,927
-------------
TEXAS - 10.0%
Abilene Health Facilities Development, Sears
Methodist Retirement, Series A (RB)
5.100%, 11/15/05 1,115 1,121
5.250%, 11/15/06 1,175 1,194
5.300%, 11/15/07 1,000 1,018
5.350%, 11/15/08 1,300 1,325
Amarillo Health Facilities, Sears Panhandle
Retirement, Series B,
Pre-refunded 08/15/06 @ 102 (RB)
7.750%, 08/15/18 (b) 3,000 3,589
Amarillo Independent School District (GO) (PSFG)
7.000%, 02/01/06 1,035 1,167
7.000%, 02/01/07 1,095 1,277
Austin, Callable 09/01/11 @ 100 (GO)
5.000%, 09/01/13 4,510 4,939
Bexar County, Zero Coupon Bond (GO) (MBIA)
3.780%, 06/15/06 (c) 1,000 954
Brazos River Authority, Electric Company Project,
Series 1999-B, Mandatory Put
04/01/13 @ 100 (AMT) (RB)
6.750%, 09/01/34 2,000 2,166
Brazos River Authority, Electric Company Project,
Series A, Mandatory Put
05/01/05 @ 100 (AMT) (RB)
3.000%, 05/01/29 (f) 1,000 1,001
Brazos River Authority, Electric Company Project,
Series C, Mandatory Put
11/01/11 @ 100 (AMT) (RB)
5.750%, 05/01/36 (f) 2,000 2,078
</Table>
53
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Brazos River Harbor District, Dow Chemical,
Series A-5, Mandatory Put
05/15/12 @ 100 (AMT) (RB)
5.700%, 05/15/33 $ 1,000 $ 1,064
Cypress-Fairbanks Independent School District,
Callable 02/15/10 @ 100 (GO) (PSFG)
5.500%, 02/15/18 4,000 4,415
Frisco, Callable 02/05/11 @ 100 (FGIC) (GO)
5.000%, 02/15/18 1,125 1,191
5.000%, 02/15/19 1,675 1,760
Galveston County,
Escrowed to Maturity,
Callable 10/01/03 @ 100 (GO) (MBIA)
6.400%, 02/01/05 (a) 315 337
Grapevine Industrial Development, Air Cargo,
Callable 01/01/12 @ 101 (AMT) (RB)
6.500%, 01/01/24 500 513
Grapevine-Colleyville Independent School
District (GO) (PSFG)
8.250%, 06/15/07 1,440 1,761
Gregg County Health Facilities Development,
Good Shepherd Medical Center, Series A (RB)
5.750%, 10/01/09 2,895 3,153
Houston Airport Systems (FSA) (RB)
5.250%, 07/01/11 2,735 3,089
Houston Airport Systems,
Callable 07/01/12 @ 100 (FSA) (RB)
5.000%, 07/01/27 2,000 2,014
Houston Airport Systems,
Escrowed to Maturity (RB)
8.200%, 07/01/05 (a) 430 465
Houston Housing Finance, Single Family
Mortgages, Series A-1,
Callable 12/01/06 @ 102 (RB)
8.000%, 06/01/14 70 70
Houston Water & Sewer System,
Series B (AMBAC) (RB)
5.500%, 12/01/10 2,000 2,311
Irving Independent School District,
Series A, Zero Coupon Bond (GO) (PSFG)
5.000%, 02/15/09 (c) 5,000 4,245
Jefferson County Health Facilities Development,
Baptist Hospitals (AMBAC) (FHA) (RB)
4.400%, 08/15/09 1,000 1,078
Kaufman County,
Callable 02/15/12 @ 100 (FSA) (GO)
5.000%, 02/15/17 1,000 1,069
Keller Independent School District,
Callable 08/15/11 @ 100 (GO) (PSFG)
5.375%, 08/15/14 2,000 2,221
North Harris Montgomery Community
College District,
Callable 02/15/12 @ 100 (FGIC) (GO)
5.375%, 02/15/15 2,535 2,829
Nueces County Housing Finance, Dolphins
Landing Apartments Project, Series A,
Callable 07/01/10 @ 102 (RB)
6.750%, 07/01/20 1,910 1,915
Odessa Housing Finance, Escrowed to Maturity,
Zero Coupon Bond,
Callable 12/01/03 @ 51.337 (MBIA) (RB)
3.780%, 06/01/12 (a) (c) 1,465 1,042
Plano Independent School District,
Callable 02/15/08 @ 100 (GO) (PSFG)
4.700%, 02/15/13 $ 1,000 $ 1,044
Port Houston Authority, Harris County, Series B,
Callable 10/01/11 @ 100 (AMT) (FGIC) (GO)
5.500%, 10/01/12 2,405 2,676
Sam Rayburn Municipal Power Agency,
Callable 10/01/03 @ 100,
Partially Pre-refunded 09/01/09 @ 100 (MBIA) (RB)
6.000%, 09/01/10 (b) 1,420 1,654
San Antonio Electric & Gas, Series A,
Callable 02/01/09 @ 101 (RB)
5.250%, 02/01/13 2,135 2,358
San Antonio Independent School
District (GO) (PSFG)
7.000%, 08/15/07 1,000 1,185
Texas State, Callable 10/01/08 @ 100 (GO)
5.000%, 10/01/15 1,000 1,076
Texas State Public Finance Authority,
Parks & Wildlife Projects,
Callable 02/01/08 @ 100 (AMBAC) (RB)
6.000%, 08/01/08 1,000 1,150
Texas State Turnpike Authority,
Dallas North Highway Tolls (FGIC) (RB)
6.500%, 01/01/08 2,345 2,751
Tyler Health Facilities, Mother
Frances Hospital (RB)
5.250%, 07/01/12 1,000 1,040
-------------
73,305
-------------
UTAH - 0.7%
Ashley Valley Water & Sewer, Escrowed to
Maturity, Callable 01/01/04 @ 102 (AMBAC) (GO)
10.900%, 01/01/10 (a) 1,500 1,995
Salt Lake County, Municipal Building Authority,
Series A (MLO) (RB)
6.000%, 10/01/03 525 525
South Jordan, Sales Tax,
Callable 08/15/11 @ 100 (AMBAC) (RB)
5.500%, 08/15/18 1,000 1,116
Utah State Housing Finance Agency,
Single Family Mortgages (FHA) (RB) (VA)
5.650%, 07/01/06 70 75
Utah State Housing Finance Agency,
Single Family Mortgages, Issue F-1,
Callable 07/01/05 @ 102 (FHA) (RB) (VA)
6.300%, 01/01/18 230 240
Utah State Housing Finance Agency,
Single Family Mortgages, Series III, Class R,
Callable 07/01/06 @ 102 (FHA) (RB) (VA)
5.950%, 07/01/08 1,035 1,120
-------------
5,071
-------------
VIRGINIA - 0.7%
Peninsula Port Authority, Partially
Pre-refunded 08/01/04 @ 102 and
08/01/08 @ 100 (RB)
7.000%, 08/01/17 (b) 2,000 2,132
Riverside Regional Jail Authority,
Callable 07/01/05 @ 102 (MBIA) (RB)
5.700%, 07/01/08 905 992
Riverside Regional Jail Authority,
Pre-refunded 07/01/05 @ 102 (MBIA) (RB)
5.700%, 07/01/08 (b) 1,095 1,203
</Table>
The accompanying notes are an integral part of the financial statements.
54
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Virginia State Peninsula Regional Jail Authority,
Callable 10/01/05 @ 101 (MBIA) (RB)
5.300%, 10/01/09 $ 1,000 $ 1,092
-------------
5,419
-------------
WASHINGTON - 4.3%
Clark County School District #37,
Vancouver (FSA) (GO)
5.250%, 12/01/14 1,515 1,725
Conservation & Renewable Energy Systems (RB)
5.650%, 10/01/03 700 700
Energy Northwest, Washington Wind Project,
Series A, Callable 01/01/07 @ 103 (RB)
5.100%, 07/01/09 1,850 1,968
5.200%, 07/01/10 1,950 2,047
Island County School District #206,
South Widbey, Partially
Pre-refunded 12/01/04 @ 100 (AMBAC) (GO)
5.750%, 12/01/06 (b) 700 736
King County School District #415, Kent,
Pre-refunded 06/01/04 @ 100 (AMBAC) (GO)
6.450%, 06/01/06 (b) 920 953
King County, Series B,
Callable 12/01/07 @ 102 (GO)
5.850%, 12/01/13 2,035 2,397
King County, Series B,
Pre-refunded 12/01/07 @ 102 (GO)
5.850%, 12/01/13 (b) 965 1,137
Pierce County School District #320, Sumner (GO)
6.000%, 12/01/06 1,000 1,054
Port Seattle Passenger Facility Charge,
Series B (AMBAC) (AMT) (RB)
5.000%, 12/01/07 1,000 1,106
Snohomish County,
Callable 12/01/11 @ 100 (GO) (MBIA)
5.375%, 12/01/19 5,000 5,456
Snohomish County Housing Authority,
Callable 04/01/06 @ 100 (RB)
6.300%, 04/01/16 1,035 1,067
Spokane County School District #356,
Central Valley, Series B,
Zero Coupon Bond (FGIC) (GO)
5.030%, 12/01/14 (c) 5,690 3,530
Tacoma Electric Systems,
Pre-refunded 01/01/04 @ 100 (AMBAC) (RB)
6.000%, 01/01/06 (b) 185 187
Washington State Housing Finance,
Hearthstone Project,
Callable 01/01/05 @ 102 (RB)
6.000%, 01/01/10 810 872
Washington State Public Power Supply System,
Nuclear Project #2, Series A,
Callable 07/01/06 @ 102 (AMBAC) (RB)
5.700%, 07/01/11 1,000 1,126
Washington State, Series B & AT-7 (GO)
6.250%, 06/01/10 1,000 1,193
Washington State, Series C (GO)
5.500%, 07/01/14 2,275 2,633
Washington State, Series S-5,
Zero Coupon Bond (FGIC) (GO)
5.830%, 01/01/16 (c) 3,000 1,735
-------------
31,622
-------------
WEST VIRGINIA - 0.3%
Brooke Pleasants & Tyler Wetzel Counties,
Single Family Mortgage,
Escrowed to Maturity (RB)
7.400%, 08/15/10 (a) $ 1,675 $ 2,135
-------------
WISCONSIN - 1.7%
Door County, Series A,
Callable 09/01/11 @ 100 (FGIC) (GO)
5.125%, 09/01/16 1,720 1,877
Howard-Suamico School District (FSA) (GO)
6.000%, 03/01/08 1,000 1,159
Milwaukee (GO)
6.000%, 02/01/10 1,240 1,454
Wisconsin State Clean Water, Series 1,
Pre-refunded 06/01/05 @ 100 (RB)
5.800%, 06/01/15 (b) 2,915 3,139
Wisconsin State Health & Educational Facilities
Authority, Aurora Health Care, Series A,
Callable 02/15/09 @ 101 (RB)
5.500%, 02/15/20 1,500 1,416
Wisconsin State Health & Educational Facilities
Authority, Marshfield Clinic, Series B (RB)
6.250%, 02/15/09 500 553
Wisconsin State Health & Educational Facilities
Authority, Marshfield Clinic, Series B,
Callable 02/15/12 @ 100 (RB)
5.500%, 02/15/13 850 890
Wisconsin State Health & Educational Facilities
Authority, Monroe Clinic (RB)
4.450%, 02/15/06 925 969
Wisconsin State Health & Educational Facilities
Authority, Wheaton Franciscan Services (RB)
5.750%, 08/15/11 645 722
-------------
12,179
-------------
WYOMING - 0.3%
Lincoln County, Pacificorp Project,
Mandatory Put 06/03/12 @ 100 (AMT) (RB)
4.125%, 11/01/25 (f) 2,250 2,192
-------------
CONVERTIBLE BONDS - 0.5%
Chicago, Series A, Convertible,
Zero Coupon Bond (GO) (MBIA)
3.489%, 01/01/16 (c) 2,000 1,507
Illinois Sports Facilities Authority, Convertible,
Zero Coupon Bond (AMBAC) (RB)
4.750%, 06/15/13 (c) 1,405 1,111
Illinois Sports Facilities Authority, Convertible,
Zero Coupon Bond,
Callable 06/15/15 @ 101 (AMBAC) (RB)
5.100%, 06/15/16 (c) 1,620 1,283
-------------
3,901
-------------
TOTAL MUNICIPAL BONDS
(Cost $667,819) 726,680
-------------
</Table>
55
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 0.1%
First American Tax Free Obligations Fund,
Cl Y (g) 610,826 $ 611
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $611) 611
-------------
TOTAL INVESTMENTS - 99.5%
(Cost $668,430) 727,291
-------------
OTHER ASSETS AND LIABILITIES, NET - 0.5% 3,934
-------------
TOTAL NET ASSETS - 100.0% $ 731,225
-------------
</Table>
(a) Escrowed to Maturity issues are typically backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(b) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(c) The rate shown is the effective yield at the time of purchase.
(d) Security purchased on a when-issued basis. On September 30, 2003, the total
cost of investments purchased on a when-issued basis was $1,595,917. See
note 2 in Notes to Financial Statements.
(e) Security sold within the terms of a private placement memorandum, exempt
from registration under Rule 144A of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "qualified
institutional buyers." These securities have been determined to be liquid
under the guidelines established by the Funds' board of directors. As of
September 30, 2003, the value of these investments was $11,777,679 or 1.6%
of total net assets.
(f) Variable Rate Security - The rate shown is the rate in effect as of
September 30, 2003.
(g) 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.
ABAG - Association of Bay Area Governments
ACA - American Capital Access
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $41,123,190, which represents
5.6% of net assets.
Cl - Class
COP - Certificate of Participation
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
GO - General Obligation
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
MQSBLF - Michigan Qualified School Board Loan Fund Program
MSDCEP - Minnesota School District Credit Enhancement Program
PSFG - Permanent School Fund Guarantee
RAAI - Radian Asset Assurance Inc.
RB - Revenue Bond
SBG - School Board Guaranty
STAID - State Aid Withholding
VA - Veterans Administration
VRDO - Variable Rate Demand Obligation. Floating or variable rate obligation
maturing in more than one year. The interest rate, which is based on
specific, or an index of, market interest rates, is subject to change
periodically and is the effective rate on September 30, 2003. This
instrument may also have a demand feature which allows the recovery of
principal at any time, or at specified intervals not exceeding one year,
on up to 30 days' notice. Maturity date shown represents final maturity.
XLCA - XL Capital Assurance Inc.
The accompanying notes are an integral part of the financial statements.
56
<Page>
MINNESOTA INTERMEDIATE TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.7%
REVENUE BONDS - 51.2%
BUILDING - 0.2%
Minnesota State Retirement Systems Building,
Callable 06/01/10 @ 100
5.450%, 06/01/12 $ 550 $ 621
-------------
ECONOMIC DEVELOPMENT - 1.6%
Minnesota State Agricultural & Economic
Development Board, Small Business
Development, Series B (AMT)
6.500%, 08/01/08 1,335 1,470
Minnesota State Agricultural & Economic
Development Board, Small Business Development,
Series B, Pre-refunded 08/01/04 @ 100 (AMT)
5.500%, 08/01/10 (a) 1,525 1,575
Minnesota State Agricultural & Economic
Development Board, Small Business
Development, Series C (AMT)
6.625%, 08/01/08 1,210 1,339
-------------
4,384
-------------
EDUCATION - 4.1%
Minneapolis, The Blake School Project,
Callable 09/01/11 @ 100
5.000%, 09/01/12 445 478
Minnesota State Higher Education Facilities
Authority, Augsburg College, Series 4
4.500%, 10/01/06 505 538
4.850%, 10/01/09 520 563
Minnesota State Higher Education Facilities
Authority, Augsburg College, Series 4,
Callable 10/01/09 @ 100
5.000%, 10/01/11 500 526
5.000%, 10/01/12 500 521
Minnesota State Higher Education Facilities
Authority, Carleton College, Series 3-L1,
Callable 05/01/06 @ 100
5.750%, 11/01/12 1,375 1,515
Minnesota State Higher Education Facilities
Authority, Minneapolis College of Art and Design
5.000%, 05/01/11 250 263
Minnesota State Higher Education Facilities Authority,
St. Benedict College, Callable 03/01/07 @ 100
4.875%, 03/01/08 1,000 1,061
5.100%, 03/01/11 2,885 2,970
Minnesota State Higher Education Facilities
Authority, St. Catherine College, Series 5-N1,
Callable 10/01/12 @ 100
5.250%, 10/01/22 1,500 1,536
Minnesota State Higher Education Facilities
Authority, St. John's University, Series 5 (MBIA)
5.000%, 10/01/11 255 286
Minnesota State Higher Education Facilities
Authority, St. John's University, Series 5,
Callable 10/01/11 @ 100 (MBIA)
5.000%, 10/01/12 480 517
Minnesota State Higher Education Facilities
Authority, University of St. Thomas, Series 4,
Callable 04/01/08 @ 100
5.250%, 04/01/12 385 408
-------------
11,182
-------------
HEALTHCARE - 11.8%
Cuyuna Range Hospital District, Series A,
Callable 06/01/07 @ 102
5.500%, 06/01/10 $ 435 $ 432
5.650%, 06/01/12 940 933
Duluth Economic Development Authority,
The Duluth Clinic, Escrowed to Maturity,
Callable 10/01/03 @ 102 (AMBAC)
6.100%, 11/01/04 (b) 250 264
Glencoe Health Care Facilities,
Callable 04/01/11 @ 101
7.400%, 04/01/21 1,000 1,022
Hastings Health Care Facility, Regina
Medical Center, Callable 09/15/08 @ 100 (ACA)
5.000%, 09/15/13 500 516
Minneapolis & St. Paul Housing & Redevelopment
Authority, Healthspan, Series A,
Callable 11/15/03 @ 102 (AMBAC)
5.000%, 11/15/13 1,000 1,024
Minneapolis Healthcare System, Allina Health
System, Series A, Callable 11/15/12 @ 100
6.000%, 11/15/23 2,500 2,672
5.750%, 11/15/32 1,300 1,349
Minneapolis Healthcare System,
Fairview Health Services, Series A
5.000%, 05/15/12 605 636
Minneapolis Healthcare System,
Fairview Health Services, Series B (MBIA)
4.500%, 05/15/11 1,170 1,247
Minnesota Agricultural & Economic Development
Board, Benedictine Health, Series A (MBIA)
5.000%, 02/15/10 3,815 4,209
Minnesota Agricultural & Economic Development
Board, Evangelical Lutheran Project
5.500%, 02/01/11 280 299
5.500%, 02/01/12 200 213
Minnesota Agricultural & Economic Development
Board, Evangelical Lutheran Project,
Callable 02/01/12 @ 101
5.500%, 02/01/15 730 767
Minnesota Agricultural & Economic Development
Board, Fairview Hospital Project, Series A,
Callable 11/15/07 @ 102 (MBIA)
5.400%, 11/15/08 1,000 1,131
5.500%, 11/15/17 1,500 1,665
5.750%, 11/15/26 500 540
Monticello, Big Lake Community Hospital,
Series C, Callable 12/01/12 @ 100
5.750%, 12/01/15 2,320 2,373
New Hope Housing & Health Care Facilities,
Masonic Home North Ridge
5.000%, 03/01/04 330 331
5.100%, 03/01/05 550 558
5.200%, 03/01/06 645 656
5.300%, 03/01/07 685 697
New Hope Housing & Health Care Facilities, Masonic
Home North Ridge, Callable 03/01/09 @ 102
5.500%, 03/01/10 500 502
Plymouth Health Facilities, Westhealth Project,
Series A, Callable 06/01/04 @ 102 (FSA)
6.200%, 06/01/11 1,360 1,431
Rochester, St. Mary's Hospital, Escrowed to
Maturity, Callable 10/01/03 @ 100
5.750%, 10/01/07 (b) 1,360 1,471
</Table>
57
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
St. Cloud Health Care (FSA)
5.500%, 05/01/07 $ 500 $ 560
5.500%, 05/01/08 1,450 1,644
St. Louis Park Health Care Facilities,
Callable 10/01/03 @ 102 (AMBAC)
4.600%, 07/01/05 2,545 2,602
-------------
31,744
-------------
HOUSING - 2.9%
Coon Rapids Multifamily Housing, Woodland North
Apartments, Callable 12/01/03 @ 100 (FHA)
5.625%, 12/01/09 300 300
Dakota County Housing & Redevelopment Authority,
Single Family Mortgages,
Callable 04/01/04 @ 102 (AMT) (FNMA)
6.250%, 10/01/04 100 101
Dakota County Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 10/01/07 @ 101.50 (AMT) (FNMA) (GNMA)
5.125%, 10/01/20 556 560
Dakota County Housing & Redevelopment
Authority, South St. Paul, Series A,
Callable 10/01/03 @ 100 (FHA) (GNMA) (VA)
7.250%, 03/01/06 5 5
Minneapolis Mortgage, Zero Coupon Bond,
Callable 10/01/05 @ 100
7.103%, 10/01/12 (c) 2,950 1,614
Minnesota State Housing Finance Agency,
Rental Housing, Series D (MBIA)
5.150%, 08/01/04 620 637
Minnesota State Housing Finance Agency,
Rental Housing, Series D,
Callable 02/01/05 @ 102 (MBIA)
5.450%, 08/01/07 1,950 2,048
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series B,
Callable 07/01/09 @ 100 (AMT)
5.550%, 07/01/24 645 663
Moorhead Economic Development Authority,
Eventide Senior Housing, Series B,
Callable 06/01/04 @ 102
5.750%, 06/01/16 1,360 1,363
South St. Paul Housing & Redevelopment Authority,
Single Family Mortgages,
Callable 10/01/03 @ 102 (FNMA)
5.100%, 09/01/07 350 358
St. Louis Park Housing & Redevelopment Authority,
Single Family Mortgages (GNMA)
6.500%, 10/20/03 4 4
Vadnais Heights, Single Family Mortgages
5.500%, 11/01/04 120 121
6.000%, 11/01/09 65 65
-------------
7,839
-------------
LEASE REVENUE - 1.5%
St. Paul Port Authority, Office Building,
Callable 12/01/12 @ 100 (MLO)
5.000%, 12/01/19 2,415 2,568
Washington County Housing & Redevelopment
Authority, Jail Facility,
Callable 10/01/03 @ 100 (MBIA) (MLO)
5.400%, 02/01/08 1,580 1,586
-------------
4,154
-------------
MISCELLANEOUS - 0.2%
Childrens Trust Fund, Puerto Rico
4.000%, 05/15/12 $ 500 $ 448
-------------
POLLUTION CONTROL - 2.0%
Minnesota State Public Facilities Authority, Water
Pollution Control, Callable 03/01/07 @ 100
5.000%, 03/01/09 2,000 2,203
Minnesota State Public Facilities Authority, Water
Pollution Control, Series A, Callable 03/01/08 @ 100
4.500%, 03/01/10 2,100 2,240
Minnesota State Public Facilities Authority, Water
Pollution Control, Series A, Callable 03/01/10 @ 100
4.000%, 03/01/11 1,000 1,047
-------------
5,490
-------------
RECREATIONAL FACILITY AUTHORITY - 1.3%
St. Paul Port Authority, Hotel Facilities,
Radisson Kellogg Project, Series 2
6.700%, 08/01/07 1,800 1,764
St. Paul Port Authority, Hotel Facilities,
Radisson Kellogg Project, Series 2,
Callable 08/01/08 @ 103
7.375%, 08/01/10 1,685 1,667
-------------
3,431
-------------
TAX REVENUE - 3.7%
Bloomington Port Authority, Mall of America Project,
Series A (FSA)
4.900%, 02/01/09 1,000 1,118
Minneapolis Community Development Agency,
Series G-3, Callable 12/01/11 @ 100
5.350%, 12/01/21 1,000 1,038
St. Paul Housing & Redevelopment Authority,
Callable 08/01/06 @ 102.50 (AMBAC)
6.450%, 02/01/08 840 975
St. Paul Housing & Redevelopment Authority,
Downtown & Seventh Place Project, Escrowed to
Maturity, Callable 10/01/03 @ 101 (AMBAC)
5.200%, 09/01/04 (b) 3,000 3,030
5.350%, 09/01/07 (b) 1,500 1,515
St. Paul Port Authority, Energy Park,
Tax Increment (FSA)
5.000%, 02/01/08 2,100 2,330
-------------
10,006
-------------
TRANSPORTATION - 8.0%
Minneapolis & St. Paul Metropolitan Airports
Commission, Series A,
Callable 01/01/13 @ 100 (MBIA)
5.000%, 01/01/20 2,200 2,311
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B (AMBAC) (AMT)
5.500%, 01/01/07 2,140 2,365
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B (AMT) (FGIC)
5.750%, 01/01/10 2,880 3,255
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B,
Callable 01/01/08 @ 101 (AMBAC) (AMT)
5.500%, 01/01/09 2,500 2,765
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B,
Callable 01/01/09 @ 101 (AMT) (FGIC)
5.625%, 01/01/14 1,000 1,081
</Table>
The accompanying notes are an integral part of the financial statements.
58
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Minneapolis & St. Paul Metropolitan Airports
Commission, Series C,
Callable 01/01/11 @ 100 (FGIC)
5.125%, 01/01/20 $ 3,095 $ 3,279
Minnesota Public Facilities Authority Tranportation,
Callable 03/01/10 @ 100
5.000%, 03/01/12 970 1,058
Puerto Rico Commonwealth, Highway
Transportation Authority, Series AA
5.000%, 07/01/07 1,500 1,653
Puerto Rico Commonwealth, Highway Transportation
Authority, Series H, Mandatory Put 07/01/10 @ 100,
Callable 07/01/10 @ 100 (AMBAC)
5.000%, 07/01/35 (d) 2,000 2,235
Puerto Rico Commonwealth, Highway Transportation
Authority, Series X (MBIA)
5.500%, 07/01/13 1,250 1,458
-------------
21,460
-------------
UTILITIES - 13.9%
Anoka County Resource Recovery,
Northern States Power
4.350%, 12/01/04 150 152
4.400%, 12/01/05 2,000 2,031
4.500%, 12/01/07 300 302
Chaska Electric, Series A
5.500%, 10/01/06 610 672
5.550%, 10/01/07 645 722
5.600%, 10/01/08 680 770
5.650%, 10/01/09 720 819
5.650%, 10/01/10 760 857
Chaska Electric, Series A, Callable 10/01/10 @ 100
5.400%, 10/01/11 805 882
5.500%, 10/01/12 845 922
Minnesota State Public Facilities Authority,
Drinking Water, Series B, Callable 03/01/09 @ 100
5.125%, 03/01/19 2,000 2,152
Northern Minnesota Municipal Power Agency,
Electric System (FSA)
5.500%, 01/01/07 2,000 2,240
5.500%, 01/01/08 2,090 2,378
Rochester Electric Utility, Callable 12/01/10 @ 100
5.000%, 12/01/16 1,150 1,222
Southern Minnesota Municipal Power Agency,
Series A (AMBAC)
5.250%, 01/01/14 3,415 3,869
Southern Minnesota Municipal Power Agency,
Series A, Callable 01/01/09 @ 101 (AMBAC)
5.000%, 01/01/11 1,270 1,393
Southern Minnesota Municipal Power Agency,
Series A, Escrowed to Maturity,
Callable 10/01/03 @ 102 (FGIC)
5.000%, 01/01/06 (b) 995 1,076
Southern Minnesota Municipal Power Agency,
Series A, Zero Coupon Bond (MBIA)
5.257%, 01/01/20 (c) 3,500 1,666
5.275%, 01/01/21 (c) 5,000 2,236
Southern Minnesota Municipal Power Agency,
Series B, Callable 01/01/04 @ 102 (MBIA)
4.850%, 01/01/07 1,875 1,930
Western Minnesota Municipal Power Agency,
Series A, Callable 01/01/06 @ 102 (AMBAC)
5.500%, 01/01/11 5,000 5,542
5.500%, 01/01/13 2,000 2,214
Western Minnesota Municipal Power Agency,
Series A, Callable 01/01/11 @ 100 (AMBAC)
5.500%, 01/01/12 $ 1,360 $ 1,541
-------------
37,588
-------------
TOTAL REVENUE BONDS 138,347
-------------
GENERAL OBLIGATIONS - 44.3%
Anoka County Capital Improvements, Series B
4.550%, 01/01/11 1,960 2,134
Anoka-Hennepin Independent School District #11,
Callable 02/01/11 @ 100 (MSDCEP)
5.000%, 02/01/14 2,000 2,171
Anoka-Hennepin Independent School District #11,
Series A (MSDCEP)
5.000%, 02/01/09 1,375 1,545
Anoka-Hennepin Independent School District #11,
Series A, Callable 02/01/10 @ 100 (MSDCEP)
5.300%, 02/01/12 1,000 1,110
5.375%, 02/01/13 600 669
Anoka-Hennepin Independent School District #11,
Series A, Callable 02/01/11 @ 100 (MSDCEP)
5.000%, 02/01/12 2,845 3,136
Becker Tax Increment, Series D,
Callable 08/01/04 @ 100 (AMT) (MBIA)
6.000%, 08/01/07 3,955 4,069
Bloomington Independent School District #271,
Series B, Callable 02/01/10 @ 100 (MSDCEP)
5.250%, 02/01/11 1,000 1,118
Burnsville Independent School District #191,
Series A (MSDCEP)
5.000%, 02/01/08 300 336
Burnsville Independent School District #191,
Series A, Callable 02/01/08 @ 100 (MSDCEP)
5.000%, 02/01/09 1,225 1,349
Centennial Independent School District #12,
Series A, Callable 02/01/12 @ 100 (FSA) (MSDCEP)
5.000%, 02/01/14 1,040 1,139
Chaska Independent School District #112,
Series A (MSDCEP)
4.800%, 02/01/10 1,120 1,244
Dakota County Capital Improvements, Series C
4.850%, 02/01/10 1,000 1,113
Duluth Independent School District #709,
Callable 02/01/09 @ 100 (FSA) (MSDCEP)
5.000%, 02/01/16 635 683
Eden Prairie Water & Sewer,
Series A, Zero Coupon Bond
4.459%, 12/01/06 (c) 2,090 1,977
Elk River Independent School District #728, Series A,
Callable 02/01/11 @ 100 (MBIA) (MSDCEP)
5.000%, 02/01/18 1,000 1,063
Faribault Independent School District #656,
Callable 06/01/08 @ 100 (MSDCEP)
4.750%, 06/01/15 1,100 1,144
Forest Lake Independent School District #831,
Series A, Callable 02/01/08 @ 100 (MSDCEP)
5.000%, 02/01/09 1,115 1,228
Fridley Independent School District #14,
Callable 02/01/05 @ 100 (FSA) (MSDCEP)
5.350%, 02/01/26 5,000 5,174
Hastings Independent School District #200,
Series A, Callable 02/01/08 @ 100 (MSDCEP)
5.000%, 02/01/11 1,095 1,198
</Table>
59
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Lakeville Independent School District #194,
Callable 02/01/09 @ 100 (MSDCEP)
5.000%, 02/01/16 $ 2,000 $ 2,145
Lakeville Independent School District #194,
Series A, Callable 02/01/08 @ 100 (MSDCEP)
5.125%, 02/01/22 1,000 1,039
Lakeville Independent School District #194,
Series A, Callable 02/01/13 @ 100 (FGIC) (MSDCEP)
5.000%, 02/01/22 2,435 2,531
Marshall Independent School District #413,
Series A (FSA) (MSDCEP)
4.000%, 02/01/11 785 827
Minneapolis & St. Paul Metropolitan Council,
Waste Water Treatment, Series A,
Callable 03/01/11 @ 100
5.000%, 03/01/13 1,890 2,118
Minneapolis School District #1 (MSDCEP)
4.500%, 02/01/08 1,450 1,593
Minneapolis School District #1,
Callable 02/01/06 @ 100 (MSDCEP)
5.000%, 02/01/07 1,025 1,102
5.000%, 02/01/07 1,000 1,075
Minneapolis, Callable 12/01/11 @ 100
5.000%, 12/01/12 3,600 4,006
Minneapolis, Series B, Callable 09/01/05 @ 100
5.050%, 03/01/06 6,000 6,425
Minnesota State, Callable 08/01/07 @ 100
4.800%, 08/01/11 2,010 2,178
4.850%, 08/01/12 4,420 4,768
Moorhead Independent School
District #152 (MSDCEP)
5.000%, 04/01/12 1,220 1,361
Moorhead Independent School District #152,
Callable 04/01/12 @ 100 (FGIC) (MSDCEP)
5.000%, 04/01/15 3,450 3,764
5.000%, 04/01/16 2,510 2,718
Mounds View Independent School District #621,
Series A (MSDCEP)
5.250%, 02/01/10 1,230 1,398
Mounds View Independent School District #621,
Series A, Callable 02/01/11 @ 100 (MSDCEP)
5.250%, 02/01/12 1,000 1,118
5.350%, 02/01/16 1,000 1,106
Mounds View Independent School District #621,
Series A, Callable 02/01/12 @ 100 (MBIA) (MSDCEP)
5.000%, 02/01/18 2,340 2,494
5.000%, 02/01/19 2,565 2,715
Northfield Independent School District #659,
Callable 02/01/11 @ 100 (MSDCEP)
4.600%, 02/01/13 1,100 1,179
5.000%, 02/01/15 1,295 1,402
Pequot Lakes Independent School District #186,
Callable 02/01/12 @ 100 (FGIC) (MSDCEP)
5.125%, 02/01/18 500 538
Perham, Callable 05/01/11 @ 100 (AMT)
5.850%, 05/01/15 1,205 1,272
Pipestone-Jasper Independent School District #2689,
Callable 03/01/09 @ 100 (FGIC) (MSDCEP)
5.400%, 03/01/13 1,095 1,228
Puerto Rico Commonwealth (MBIA)
6.000%, 07/01/14 1,605 1,954
Puerto Rico Commonwealth, Series A (XLCA)
5.500%, 07/01/17 1,000 1,162
Puerto Rico Commonwealth, Series C,
Mandatory Put 07/01/08 @ 100
5.000%, 07/01/18 (d) $ 1,500 $ 1,649
Robbinsdale Independent School
District #281 (MSDCEP)
5.000%, 02/01/08 1,000 1,119
Robbinsdale Independent School District #281,
Callable 02/01/09 @ 100 (MBIA) (MSDCEP)
5.000%, 02/01/16 1,000 1,076
Robbinsdale Independent School District #281,
Callable 02/01/12 @ 100 (FSA) (MSDCEP)
5.000%, 02/01/19 1,160 1,228
5.000%, 02/01/20 1,215 1,277
Rochester Independent School District #535,
Series A, Callable 02/01/11 @ 100 (MSDCEP)
5.000%, 02/01/15 1,595 1,727
Rosemount Independent School District #196,
Series A, Crossover Refunded
06/01/04 @ 100 (MSDCEP)
5.625%, 06/01/07 (e) 1,400 1,442
Sauk Rapids Independent School District #47,
Series B, Zero Coupon Bond,
Callable 02/01/11 @ 89.37 (FSA) (MSDCEP)
5.700%, 02/01/13 (c) 1,055 703
Sauk Rapids Independent School District #47,
Series B, Zero Coupon Bond,
Callable 02/01/11 @ 94.63 (FSA)
5.753%, 02/01/12 (c) 1,790 1,275
Savage, Series A (FGIC)
5.200%, 02/01/05 1,000 1,054
Savage, Series A, Callable 02/01/06 @ 100 (FGIC)
5.350%, 02/01/07 1,000 1,083
5.500%, 02/01/08 1,000 1,092
South Washington County, Independent School
District #833, Series A (MSDCEP)
5.500%, 02/01/09 500 574
South Washington County,
Independent School District #833, Series B,
Callable 02/01/12 @ 100 (FSA) (MSDCEP)
5.000%, 02/01/15 1,030 1,122
St. Louis Park Independent School District #283,
Callable 02/01/09 @ 100 (MSDCEP)
5.250%, 02/01/10 1,500 1,675
5.600%, 02/01/15 725 812
St. Michael Independent School District #885,
Callable 02/01/12 @ 100 (FSA) (MSDCEP)
5.000%, 02/01/14 1,690 1,850
5.000%, 02/01/17 1,000 1,074
St. Paul, Series A, Callable 03/01/09 @ 100
5.000%, 03/01/10 1,180 1,305
St. Paul Independent School District #625,
Series B (FGIC) (MSDCEP)
4.000%, 02/01/14 320 330
St. Paul Independent School District #625,
Series C (FGIC) (MSDCEP)
4.000%, 02/01/14 410 424
Stillwater Independent School District #834,
Callable 02/01/09 @ 100 (MSDCEP)
4.750%, 02/01/11 2,140 2,304
Washington County, Raymie Johnson Apartments,
Series C, Callable 01/01/04 @ 100 (FGIC)
6.000%, 01/01/10 1,340 1,356
West St. Paul Independent School District #197,
Zero Coupon Bond (MBIA) (MSDCEP)
5.896%, 02/01/05 (c) 2,000 1,967
</Table>
The accompanying notes are an integral part of the financial statements.
60
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
Willmar Independent School District #347, Series A,
Callable 02/01/06 @ 100 (MSDCEP)
5.150%, 02/01/09 $ 1,160 $ 1,256
-------------
TOTAL GENERAL OBLIGATIONS 119,590
-------------
CERTIFICATES OF PARTICIPATION - 3.2%
Eden Prairie Housing & Redevelopment Authority,
Series A, Callable 12/01/10 @ 100 (MLO)
5.000%, 12/01/11 255 283
Hennepin County (MLO)
4.650%, 11/15/08 1,000 1,113
Hennepin County, Callable 11/15/08 @ 100 (MLO)
5.375%, 11/15/09 2,280 2,578
Minneapolis Special School District #1, Series A,
Pre-refunded 02/01/06 @ 100 (MBIA) (MLO)
5.900%, 02/01/11 (a) 2,150 2,377
St. Paul Independent School District #625, Series E,
Callable 02/01/11 @ 100 (MBIA) (MLO) (MSDCEP)
4.200%, 02/01/15 500 513
Stearns County Housing & Redevelopment Authority,
Series A, Callable 02/01/08 @ 100 (FSA) (MLO)
4.950%, 02/01/09 1,540 1,682
-------------
TOTAL CERTIFICATES OF PARTICIPATION 8,546
-------------
TOTAL MUNICIPAL BONDS
(Cost $248,810) 266,483
-------------
MONEY MARKET FUND - 0.3%
Federated Minnesota Municipal Cash Trust 942,512 943
-------------
TOTAL MONEY MARKET FUND
(Cost $943) 943
-------------
TOTAL INVESTMENTS - 99.0%
(Cost $249,753) 267,426
-------------
OTHER ASSETS AND LIABILITIES, NET - 1.0% 2,576
-------------
TOTAL NET ASSETS - 100.0% $ 270,002
-------------
</Table>
(a) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) Escrowed to Maturity issues are typically backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(c) The rate shown is the effective yield at the time of purchase.
(d) Variable Rate Security - The rate shown is the rate in effect as of
September 30, 2003.
(e) Crossover Refunded securities are backed by the credit of the refunding
issuer. These bonds mature at the call date and price indicated.
ACA - American Capital Access
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $20,514,268, which represents
7.6% of net assets.
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
MSDCEP - Minnesota School District Credit Enhancement Program
VA - Veterans Administration
XLCA - XL Capital Assurance Inc.
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 92.5%
REVENUE BONDS - 69.1%
ECONOMIC DEVELOPMENT - 1.9%
Minnesota Agricultural & Economic Development
Board, Small Business Development, Series B,
Callable 08/01/08 @ 102 (AMT)
7.250%, 08/01/20 $ 1,000 $ 1,059
Minnesota Agricultural & Economic Development
Board, Small Business Development, Series C,
Callable 08/01/08 @ 102 (AMT)
7.250%, 08/01/20 1,385 1,356
Minnesota Agricultural & Economic Development
Board, Small Business Development, Series D,
Callable 08/01/08 @ 102 (AMT)
7.250%, 08/01/20 1,120 1,136
-------------
3,551
-------------
EDUCATION - 8.7%
Golden Valley, The Breck School,
Callable 10/01/09 @ 100
5.750%, 10/01/14 1,000 1,093
Maplewood Education Facilities, Mounds Park
Academy Project, Callable 10/30/03 @ 102
7.000%, 09/01/23 1,200 1,230
Minneapolis Gateway Project, Series A,
Callable 12/01/07 @ 100
5.250%, 12/01/17 1,000 1,099
Minneapolis, The Blake School Project,
Callable 09/01/11 @ 100
5.450%, 09/01/11 2,000 2,104
Minnesota State Higher Education Facilities
Authority, Augsburg College, Series 4-F1,
Callable 05/01/06 @ 102
6.250%, 05/01/23 1,500 1,570
Minnesota State Higher Education Facilities
Authority, Carleton College,
Callable 11/01/07 @ 100
5.400%, 11/01/15 1,500 1,652
Minnesota State Higher Education Facilities
Authority, Carleton College, Series 3-L1,
Callable 05/01/06 @ 100
5.750%, 11/01/12 1,050 1,157
Minnesota State Higher Education Facilities
Authority, College of Art & Design, Series 5-D,
Callable 05/01/10 @ 100
6.625%, 05/01/20 1,000 1,083
Minnesota State Higher Education Facilities
Authority, College of St. Benedict, Series 3-W,
Callable 03/01/04 @ 100
6.200%, 03/01/14 460 463
6.375%, 03/01/20 140 141
Minnesota State Higher Education Facilities
Authority, College of St. Benedict, Series 3-W,
Pre-refunded 03/01/04 @ 100
6.200%, 03/01/14 (a) 655 669
Minnesota State Higher Education Facilities
Authority, Macalester College, Series 5-Q (VRDO)
1.100%, 03/01/33 2,785 2,785
Minnesota State Higher Education Facilities
Authority, University of St. Thomas, Series 4-A1,
Callable 10/01/06 @ 100
5.625%, 10/01/21 500 516
</Table>
61
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Minnesota State Higher Education Facilities
Authority, Vermilion Community College,
Callable 01/01/04 @ 100
5.750%, 01/01/13 $ 625 $ 640
-------------
16,202
-------------
HEALTHCARE - 20.2%
Bemidji Hospital Facilities, North Country Health
Services, Callable 09/01/06 @ 102
5.625%, 09/01/15 1,600 1,678
Bemidji Hospital Facilities, North Country Health
Services, Callable 09/01/12 @ 100 (RAAI)
5.000%, 09/01/24 500 508
Chisago Health Facilities Authority,
Callable 07/01/05 @ 102
7.300%, 07/01/25 400 417
Cuyuna Range Hospital District, Series A,
Callable 06/01/07 @ 102
6.000%, 06/01/29 3,000 2,853
Fergus Falls Health Care Facilities Authority,
Lake Region Hospital, Long Term Care Facilities
Project, Callable 12/01/05 @ 102
6.500%, 12/01/25 1,000 1,042
Fergus Falls Health Care Facilities Authority,
Series A, Callable 11/01/04 @ 102
7.000%, 11/01/19 1,000 982
Glencoe Health Care Services Facilities Project,
Callable 04/01/11 @ 101
7.500%, 04/01/31 1,000 1,022
Glencoe Hospital Board,
Pre-refunded 08/01/04 @ 102
6.750%, 04/01/16 (a) 1,100 1,172
Golden Valley, Covenant Retirement Communities,
Series A, Callable 12/01/09 @ 101
5.500%, 12/01/29 1,750 1,752
Marshall Minnesota Medical Center, OBG Weiner
Memorial Medical Center Project, Series A,
Callable 11/01/13 @ 100
5.250%, 11/01/16 305 316
5.850%, 11/01/23 875 900
Minneapolis & St. Paul Housing & Redevelopment
Authority, Group Health Care Plan Project,
Callable 10/01/03 @ 102
6.900%, 10/15/22 4,000 4,052
Minneapolis & St. Paul Housing & Redevelopment
Authority, Series A, Callable 08/15/05 @ 102 (FSA)
5.600%, 08/15/12 250 271
Minneapolis Healthcare System, Allina Health
System, Series A, Callable 11/15/12 @ 100
6.000%, 11/15/23 1,500 1,603
5.750%, 11/15/32 2,400 2,491
Minnesota Agricultural & Economic Development
Board, Benedictine Health, Series A,
Callable 02/15/10 @ 101 (MBIA)
5.250%, 02/15/15 2,000 2,175
Minnesota Agricultural & Economic Development
Board, Fairview Hospital Project, Series A,
Callable 11/15/07 @ 102 (MBIA)
5.500%, 11/15/11 500 565
5.500%, 11/15/17 1,000 1,110
Minnesota Agricultural & Economic Development
Board, Health Care System, Series A,
Callable 11/15/10 @ 101
6.375%, 11/15/29 4,000 4,309
Monticello, Big Lake Community Hospital,
Series A
4.700%, 12/01/03 $ 125 $ 125
Monticello, Big Lake Community Hospital,
Series A, Callable 12/01/09 @ 100
5.750%, 12/01/19 1,000 1,002
Monticello, Big Lake Community Hospital,
Series C, Callable 12/01/12 @ 100
6.200%, 12/01/22 1,000 1,027
Moorhead Economic Development Authority,
Series B, Callable 06/01/04 @ 102
6.000%, 06/01/29 1,900 1,887
Olmstead County, Hiawatha Homes Project,
Callable 10/01/03 @ 102
6.500%, 07/01/16 170 162
St. Cloud Health Care, St. Cloud Hospital Obligation
Group, Series A, Callable 05/01/10 @ 101 (FSA)
5.750%, 05/01/26 2,500 2,695
St. Paul Housing & Redevelopment Authority,
Callable 05/15/09 @ 100
5.250%, 05/15/18 500 506
Waconia Minnesota Health Care Facilities,
Ridgeview Medical Center Project, Series A,
Callable 01/01/10 @ 100 (RAAI)
6.125%, 01/01/29 765 848
-------------
37,470
-------------
HOUSING - 14.2%
Austin Housing & Redevelopment Authority,
Series A, Callable 01/01/06 @ 102
7.250%, 01/01/26 500 504
Brooklyn Center Multifamily Housing,
Callable 11/20/12 @ 100 (AMT) (GNMA)
5.400%, 05/20/43 1,000 1,013
Coon Rapids Multifamily Housing, Margaret Place,
Callable 11/01/07 @ 102
6.250%, 05/01/18 500 469
Coon Rapids Multifamily Housing, Woodland North
Apartments, Callable 12/01/03 @ 100 (FHA)
5.625%, 12/01/09 2,635 2,637
Dakota County Community Development Agency,
Multifamily Housing, Ebenezer Ridges Project,
Callable 04/20/11 @ 102 (GNMA)
5.900%, 04/20/42 2,000 2,113
Dakota County Housing & Redevelopment Authority,
Series A, Callable 10/01/03 @ 100 (GNMA)
8.100%, 09/01/12 5 5
Eden Prairie Multifamily Housing,
Lincoln Park Project, Series A-1,
Callable 12/20/10 @ 103.50 (GNMA)
6.400%, 12/20/20 990 1,059
Eden Prairie Multifamily Housing, Parkway
Apartments Project, Series A,
Callable 02/20/07 @ 104
5.700%, 08/20/22 1,000 1,050
Hopkins Elderly Housing, Series A,
Callable 11/20/07 @ 102 (GNMA)
5.600%, 11/20/17 500 524
Hopkins Multifamily Housing, Renaissance Project,
Callable 04/01/07 @ 102
6.250%, 04/01/15 500 528
Maplewood, Carefree Cottages Project,
Callable 11/01/10 @ 100 (AMT)
7.200%, 11/01/32 2,000 2,100
</Table>
The accompanying notes are an integral part of the financial statements.
62
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Minnesota State Housing Finance Agency,
Residential Housing, Series B,
Callable 07/01/11 @ 100 (AMT)
5.650%, 07/01/33 $ 2,890 $ 2,988
Minnesota State Housing Finance Agency,
Residential Housing, Series F,
Callable 07/01/11 @ 100 (AMT)
5.400%, 07/01/30 3,210 3,274
Minnesota State Housing Finance Agency, Series A,
Callable 08/01/11 @ 100
3.850%, 02/01/13 1,455 1,451
Minnesota State Housing Finance Agency,
Single Family Mortgage, Series C,
Callable 07/01/09 @ 100 (AMT)
6.100%, 07/01/30 875 907
Roseville Housing Facilities Authority,
Pre-refunded 10/01/03 @ 102
7.125%, 10/01/13 (a) 2,000 2,040
St. Anthony Housing & Redevelopment
Authority, Callable 05/20/06 @ 102 (FHA) (GNMA)
6.250%, 11/20/25 1,500 1,670
St. Louis Park, Multifamily Housing,
Callable 11/01/08 @ 102 (FHA) (GNMA)
5.250%, 11/01/20 500 515
St. Louis Park, Multifamily Housing,
Callable 12/01/05 @ 102 (FHA)
6.250%, 12/01/28 500 518
White Bear Lake, Lake Square Housing, Series A,
Callable 02/01/07 @ 102 (FHA)
6.000%, 08/01/20 1,020 1,068
-------------
26,433
-------------
IMPROVEMENTS - 4.2%
Minnesota State Retirement Systems Building,
Callable 06/01/10 @ 100
5.875%, 06/01/27 7,000 7,792
-------------
INDUSTRIAL DEVELOPMENT - 0.7%
Little Canada Commercial Development,
Callable 10/01/03 @ 102 (MLO)
7.100%, 04/01/13 1,340 1,346
-------------
LEASE REVENUE - 1.5%
Edina Housing & Redevelopment Authority,
Callable 02/01/12 @ 100
5.250%, 02/01/21 10 10
New Brighton Economic Development Authority,
Public Safety Facility, Leasing Project, Series A,
Callable 02/01/10 @ 100
4.900%, 02/01/15 850 884
5.000%, 02/01/16 895 930
5.100%, 02/01/17 900 937
-------------
2,761
-------------
RECREATIONAL FACILITY AUTHORITY - 1.1%
St. Paul Port Authority, Radisson Kellogg Project,
Series 2, Callable 08/01/08 @ 103
7.375%, 08/01/29 2,000 2,036
-------------
TAX REVENUE - 2.2%
Duluth Economic Development Authority
8.000%, 08/01/08 235 253
Minneapolis Community Development, Series A,
Zero Coupon Bond (MBIA)
7.125%, 09/01/04 (b) 500 495
Minneapolis Community Development, Series G-3,
Callable 12/01/11 @ 100
5.450%, 12/01/31 $ 3,250 $ 3,352
-------------
4,100
-------------
TRANSPORTATION - 4.1%
Minneapolis & St. Paul Metropolitan
Airports Commission, Series A,
Callable 01/01/13 @ 100 (MBIA)
5.000%, 01/01/20 2,215 2,327
Minneapolis & St. Paul Metropolitan
Airports Commission,
Callable 01/01/11 @ 100 (AMT) (FGIC)
5.250%, 01/01/21 2,000 2,056
Minneapolis & St. Paul Metropolitan
Airports Commission, Series A,
Callable 01/01/10 @ 101 (FGIC)
5.750%, 01/01/32 3,000 3,271
-------------
7,654
-------------
UTILITIES - 10.3%
Chaska Electric, Series A, Callable 10/01/10 @ 100
6.100%, 10/01/30 5,000 5,281
Southern Minnesota Municipal Power Agency,
Power Supply Systems, Series A (AMBAC)
5.250%, 01/01/16 2,360 2,675
Southern Minnesota Municipal Power Agency,
Series A, Zero Coupon Bond (MBIA)
6.650%, 01/01/19 (b) 4,000 2,023
6.700%, 01/01/24 (b) 5,000 1,843
5.800%, 01/01/25 (b) 2,000 697
5.600%, 01/01/26 (b) 8,000 2,637
5.151%, 01/01/27 (b) 3,000 941
Western Minnesota Municipal Power Agency,
Callable 01/01/11 @ 100 (AMBAC)
5.500%, 01/01/14 1,545 1,726
5.500%, 01/01/15 550 614
Western Minnesota Municipal Power Agency,
Escrowed to Maturity (MBIA)
9.750%, 01/01/16 (c) 410 639
-------------
19,076
-------------
TOTAL REVENUE BONDS 128,421
-------------
GENERAL OBLIGATIONS - 23.1%
Anoka-Hennepin Independent School District #11,
Series A, Callable 02/01/10 @ 100 (MSDCEP)
5.750%, 02/01/17 1,000 1,130
Becker Independent School District #726, Series A,
Callable 02/01/10 @ 100 (FSA) (MSDCEP)
6.000%, 02/01/21 1,000 1,146
Burnsville Independent School District #191,
Series A, Callable 02/01/06 @ 100 (MSDCEP)
4.875%, 02/01/13 1,450 1,560
Chaska Independent School District #112, Series A,
Callable 02/01/09 @ 100 (FSA) (MSDCEP)
5.700%, 02/01/18 1,000 1,129
Chaska Independent School District #112, Series B,
Crossover Refunded 02/01/06 @ 100 (MSDCEP)
5.875%, 02/01/11 (d) 1,000 1,100
6.000%, 02/01/15 (d) 525 579
6.000%, 02/01/16 (d) 5,525 6,094
Columbia Heights Independent School District #13,
Crossover Refunded 02/01/07 @ 100 (MSDCEP)
5.250%, 02/01/15 (d) 1,000 1,079
</Table>
63
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Delano Independent School
District #879, Series A,
Callable 02/01/11 @ 100 (FSA) (MSDCEP)
5.875%, 02/01/25 $ 1,000 $ 1,113
Hennepin County, Series A,
Callable 12/01/10 @ 100
4.250%, 12/01/12 1,000 1,051
Hopkins Independent School District #270,
Series B, Callable 02/01/11 @ 100 (MSDCEP)
4.125%, 02/01/12 2,200 2,301
Lakeville Independent School District #194,
Series B, Zero Coupon Bond,
Callable 02/01/13 @ 68.77 (FGIC) (MSDCEP)
5.420%, 02/01/20 (b) 5,530 2,438
Minneapolis Sports Arena,
Callable 04/01/08 @ 100
5.100%, 04/01/13 500 549
5.100%, 10/01/13 250 276
Minneapolis Sports Arena, Series B,
Callable 09/01/05 @ 100
5.200%, 03/01/13 400 429
Minnesota State
4.000%, 08/01/11 10,000 10,559
North St. Paul Independent School District #622,
Series B, Callable 05/01/06 @ 100 (MSDCEP)
5.850%, 05/01/17 500 545
Northfield Independent School District #659,
Callable 02/01/11 @ 100
5.000%, 02/01/16 1,015 1,095
Perham, Disposal System,
Callable 05/01/11 @ 100 (AMT)
6.000%, 05/01/22 1,500 1,553
Sauk Rapids Independent School District #47,
Series A, Callable 02/01/11 @ 100 (MBIA)
5.750%, 02/01/23 2,000 2,219
South Washington County Independent School
District #833, Callable 06/01/05 @ 100 (MLO)
5.850%, 06/01/15 500 535
St. Louis Park Independent School District #283,
Callable 02/01/09 @ 100 (MSDCEP)
5.700%, 02/01/17 2,000 2,255
Wayzata Independent School District #284,
Series A, Callable 02/01/07 @ 100
5.500%, 02/01/17 2,000 2,175
-------------
TOTAL GENERAL OBLIGATIONS 42,910
-------------
CERTIFICATES OF PARTICIPATION - 0.3%
South Washington County Independent School
District #833, Series A,
Callable 12/01/06 @ 100 (MLO)
5.250%, 12/01/14 500 517
-------------
TOTAL CERTIFICATES OF PARTICIPATION 517
-------------
TOTAL MUNICIPAL BONDS
(Cost $161,565) 171,848
-------------
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
MONEY MARKET FUND - 1.7%
Federated Minnesota Municipal Cash Trust 3,184,834 $ 3,185
-------------
TOTAL MONEY MARKET FUND
(Cost $3,185) 3,185
-------------
TOTAL INVESTMENTS - 94.2%
(Cost $164,750) 175,033
-------------
OTHER ASSETS AND LIABILITIES, NET - 5.8% 10,692
-------------
TOTAL NET ASSETS - 100.0% $ 185,725
-------------
</Table>
(a) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) The rate shown is the effective yield at the time of purchase.
(c) Escrowed to Maturity issues are typically backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(d) Crossover Refunded securities are backed by the credit of the refunding
issuer. These bonds mature at the call date and price indicated.
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $17,422,868, which represents
9.4% of net assets.
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
MSDCEP - Minnesota School District Credit Enhancement Program
RAAI - Radian Asset Assurance Inc.
VRDO - Variable Rate Demand Obligation. Floating or variable rate obligation
maturing in more than one year. The interest rate, which is based on
specific, or an index of, market interest rates, is subject to change
periodically and is the effective rate on September 30, 2003. This
instrument may also have a demand feature which allows the recovery of
principal at any time, or at specified intervals not exceeding one year,
on up to 30 days' notice. Maturity date shown represents final maturity.
The accompanying notes are an integral part of the financial statements.
64
<Page>
MISSOURI TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 99.0%
REVENUE BONDS - 74.6%
BUILDING - 9.7%
Clay County, Public Building Authority,
Callable 05/15/08 @ 100
5.125%, 05/15/14 $ 3,280 $ 3,574
Missouri State Board of Public Buildings,
State Office Building Special Obligation,
Series A, Callable 05/01/11 @ 100
5.000%, 05/01/17 1,000 1,075
Missouri State Board of Public Buildings,
State Office Building Special Obligation,
Series A, Callable 05/01/11 @ 100 (MBIA)
5.000%, 05/01/23 2,000 2,055
5.000%, 05/01/24 5,130 5,244
5.125%, 05/01/26 5,000 5,141
Puerto Rico Public Buildings Authority,
Public Education and Health Facilities, Series B,
Callable 07/01/07 @ 101.50 (AMBAC) (COMGTY)
5.000%, 07/01/27 1,000 1,018
Puerto Rico Public Buildings Authority,
Public Education and Health Facilities, Series M,
Pre-refunded 07/01/05 @ 100 (COMGTY)
5.500%, 07/01/21 (a) 825 887
-------------
18,994
-------------
EDUCATION - 11.0%
Kansas City School District Building,
Capital Improvement Project,
Callable 02/01/04 @ 102 (FGIC)
5.000%, 02/01/14 2,230 2,305
Kansas City School District Building,
Elementary Improvement Project, Series D,
Callable 02/01/04 @ 102 (FGIC)
5.000%, 02/01/14 1,000 1,034
Missouri State Health & Educational Facilities
Authority, University of Missouri-Columbia
Arena Project, Callable 11/01/11 @ 100
5.000%, 11/01/19 2,540 2,684
Missouri State Health & Educational Facilities
Authority, Washington University, Series A,
Callable 02/15/13 @ 100
5.000%, 02/15/33 1,000 1,016
Missouri State Health & Educational Facilities
Authority, Washington University, Series A,
Callable 06/15/11 @ 100
5.125%, 06/15/41 2,150 2,191
Missouri Western State College,
Callable 10/01/03 @ 102 (MBIA)
5.400%, 10/01/16 1,000 1,023
University of Missouri, Callable 11/01/03 @ 101
5.500%, 11/01/23 2,000 2,025
University of Missouri,
Pre-refunded 11/01/07 @ 101
5.500%, 11/01/21 (a) 3,000 3,459
5.800%, 11/01/27 (a) 5,000 5,824
-------------
21,561
-------------
HEALTHCARE - 16.6%
Cape Girardeau County Authority,
Southeast Missouri Hospital Association,
Callable 06/01/12 @ 100
5.625%, 06/01/22 1,500 1,548
Missouri State Health & Educational Facilities
Authority, Barnes-Jewish Inc., Series A
4.750%, 05/15/05 100 105
Missouri State Health & Educational Facilities
Authority, BJC Health Systems,
Callable 05/15/08 @ 101
5.000%, 05/15/28 $ 3,105 $ 3,091
Missouri State Health & Educational Facilities
Authority, BJC Health Systems, Series A,
Callable 05/15/04 @ 102, Escrowed to Maturity
6.200%, 05/15/07 (b) 235 247
Missouri State Health & Educational Facilities
Authority, BJC Health Systems, Series A,
Escrowed to Maturity
6.750%, 05/15/12 (b) 3,310 4,111
Missouri State Health & Educational Facilities
Authority, Freeman Hospital Project, Series A,
Callable 02/15/04 @ 102 (FSA)
5.375%, 02/15/14 1,000 1,034
Missouri State Health & Educational Facilities
Authority, SSM Health Care System, Series A,
Callable 06/01/08 @ 101 (MBIA)
5.000%, 06/01/09 1,000 1,108
5.000%, 06/01/12 2,000 2,137
5.000%, 06/01/18 3,895 4,054
Missouri State Health & Educational Facilities
Authority, St. Luke's Health System,
Callable 11/15/03 @ 102 (MBIA)
5.100%, 11/15/13 2,000 2,043
North Kansas City Hospital,
Callable 11/15/08 @ 101 (AMBAC)
5.000%, 11/15/13 700 747
5.000%, 11/15/28 2,000 2,025
North Kansas City Hospital, Series A,
Callable 11/15/13 @ 100 (FSA)
5.000%, 11/15/21 250 260
5.000%, 11/15/22 200 207
St. Louis County Industrial Development
Authority, Ranken-Jordan Project, Series A,
Callable 11/15/13 @ 100
6.625%, 11/15/35 500 496
University Health Facilities,
University of Missouri Health System, Series A,
Callable 11/01/06 @ 102 (AMBAC)
5.600%, 11/01/26 5,000 5,304
University Health Facilities,
University of Missouri Health System, Series A,
Callable 11/01/08 @ 100 (AMBAC)
5.000%, 11/01/09 1,000 1,104
University of Missouri Health Systems,
Series A, Callable 11/01/08 @ 100 (AMBAC)
5.125%, 11/01/28 3,000 3,025
-------------
32,646
-------------
HOUSING - 0.9%
Missouri State Community Development Agency,
Callable 10/01/03 @ 100 (FHA)
6.100%, 01/01/04 115 115
6.100%, 07/01/04 115 115
6.200%, 01/01/05 60 60
University City Industrial Development Authority,
Multifamily Housing, Series A,
Callable 12/20/05 @ 102
5.950%, 12/20/25 1,400 1,444
-------------
1,734
-------------
</Table>
65
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT - 0.5%
Sugar Creek, Lafarge North America, Series A,
Callable 06/01/13 @ 101 (AMT)
5.650%, 06/01/37 $ 1,000 $ 973
-------------
LEASE REVENUE - 1.5%
Boone County, Callable 08/01/12 @ 100
5.050%, 08/01/20 1,200 1,223
Missouri State Financial Board Infrastructure
Facilities, Series A, Callable 12/01/12 @ 100
5.000%, 12/01/17 1,000 1,027
5.375%, 12/01/22 750 766
-------------
3,016
-------------
POLLUTION CONTROL - 16.2%
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution Control,
Associated Electric Co-Op, Thomas Hill,
Callable 12/01/06 @ 101
5.250%, 12/01/09 1,000 1,120
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution Control,
Drinking Water, Callable 01/01/07 @ 101
5.000%, 01/01/08 500 550
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution Control,
Series A, Drinking Water,
Callable 07/01/08 @ 101
5.000%, 01/01/19 2,200 2,315
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution Control, Series B,
Drinking Water, Callable 01/01/09 @ 101
5.250%, 01/01/15 2,180 2,406
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution Control, Series B, Drinking Water,
Callable 01/01/13 @ 100
5.500%, 07/01/14 2,000 2,292
5.500%, 07/01/18 1,400 1,578
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution Control, Series D, Drinking Water,
Pre-refunded 01/01/06 @ 101
5.875%, 01/01/15 (a) 725 805
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution Control, Series E, Drinking Water,
Pre-refunded 07/01/06 @ 101
5.625%, 07/01/16 (a) 915 1,028
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution Control, Series A,
State Revolving Fund Program,
Callable 07/01/10 @ 100
5.500%, 07/01/16 2,495 2,796
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution Control, Series B,
State Revolving Fund Program,
Callable 01/01/13 @ 100
5.000%, 01/01/17 1,470 1,593
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution Control, Series C,
State Revolving Fund Program
5.375%, 07/01/13 $ 1,570 $ 1,802
5.375%, 07/01/14 2,400 2,758
5.375%, 07/01/15 1,500 1,722
5.375%, 07/01/16 2,000 2,298
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution Control, Series C,
State Revolving Fund Program,
Callable 07/01/11 @ 100
5.000%, 07/01/23 6,655 6,862
-------------
31,925
-------------
RECREATIONAL FACILITY AUTHORITY - 0.6%
Missouri Financial Board Cultural Facilities,
Nelson Gallery Foundation, Series A,
Callable 12/01/11 @ 100
5.250%, 12/01/14 1,000 1,110
-------------
TRANSPORTATION - 11.5%
Missouri State Highways & Transportation Road,
Series A
5.000%, 02/01/11 6,000 6,714
4.100%, 02/01/12 600 630
Missouri State Highways & Transportation Road,
Series A, Callable 02/01/11 @ 100
5.000%, 02/01/17 550 589
5.250%, 02/01/20 5,000 5,370
Missouri State Highways & Transportation Road,
Series A, Callable 02/01/12 @ 100
5.125%, 02/01/17 1,000 1,085
5.000%, 02/01/22 3,725 3,858
St. Louis Airport, Capital Improvement Program,
Series A, Callable 07/01/12 @ 100 (MBIA)
5.375%, 07/01/21 1,000 1,068
St. Louis Airport, Lambert Field,
Series B (FGIC) (AMT)
6.000%, 07/01/10 750 862
St. Louis Airport, Series A (FSA)
4.000%, 07/01/13 2,500 2,542
-------------
22,718
-------------
UTILITIES - 6.1%
Kansas City Water, Series A,
Callable 12/01/08 @ 101
5.000%, 12/01/11 4,390 4,778
Kansas City Water, Series B,
Callable 12/01/06 @ 101
5.000%, 12/01/07 500 552
5.000%, 12/01/16 2,200 2,365
Kansas City Water, Series D,
Pre-refunded 12/01/04 @ 100
6.150%, 12/01/07 (a) 500 530
6.300%, 12/01/08 (a) 500 530
Sikeston Electric, Callable 06/01/06 @ 101 (MBIA)
5.000%, 06/01/22 1,000 1,029
Springfield Water Works, Series A,
Pre-refunded 05/01/05 @ 102
5.600%, 05/01/23 (a) 2,000 2,141
-------------
11,925
-------------
TOTAL REVENUE BONDS 146,602
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
66
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS - 24.4%
Clayton School District (STAID)
4.250%, 02/01/08 $ 50 $ 55
Clayton School District, Callable 03/01/07 @ 101
5.000%, 03/01/17 3,325 3,543
Columbia School District, Callable 03/01/07 @ 100
6.300%, 03/01/11 365 419
Columbia School District, Missouri Direct Deposit
Program, Callable 03/01/08 @ 100 (STAID)
4.850%, 03/01/14 1,000 1,068
Independence School District,
Missouri Direct Deposit Program,
Callable 03/01/13 @ 100 (MBIA) (STAID)
5.000%, 03/01/20 1,240 1,311
Jackson County School District,
Callable 03/01/08 @ 100
4.850%, 03/01/13 2,000 2,106
Jackson County School District #4,
Missouri Direct Deposit Program (STAID)
5.250%, 03/01/11 1,000 1,136
Jefferson City School District, Series A
6.700%, 03/01/11 1,000 1,217
Jefferson County School District #R-3,
Callable 03/01/08 @ 100 (STAID)
4.600%, 03/01/12 600 628
Kansas City, Series A, Callable 03/01/08 @ 101
5.250%, 09/01/09 300 336
5.250%, 09/01/12 3,980 4,441
Kansas City, Series A, Streetlight Project,
Callable 02/01/10 @ 101
5.750%, 02/01/12 1,000 1,140
Missouri State, Fourth State Building, Series A,
Pre-refunded 08/01/06 @ 100
5.400%, 08/01/09 (a) 2,000 2,222
Missouri State Water Pollution Control, Series A,
Pre-refunded 08/01/06 @ 100
5.750%, 08/01/18 (a) 2,085 2,337
North Kansas City School District,
Callable 03/01/11 @ 100
5.000%, 03/01/16 1,265 1,362
North Kansas City School District, Missouri Direct
Deposit Program, Series A (STAID)
4.000%, 03/01/11 (c) 520 548
Puerto Rico Municipal Finance Agency,
Callable 08/01/09 @ 101
5.500%, 08/01/23 3,000 3,315
S. Louis County Ferguson Reorganization School
District #R-2 (STAID)
3.750%, 05/01/11 1,000 1,039
St. Charles County, Francis Howell School District,
Series A (STAID)
4.000%, 03/01/11 1,000 1,060
St. Charles School District, Missouri Direct
Deposit Program, Callable 03/01/06 @ 101
5.000%, 03/01/12 750 818
St. Louis County
5.000%, 02/01/12 3,250 3,641
St. Louis County Public Safety,
Callable 08/15/09 @ 100 (FGIC)
5.125%, 02/15/17 4,185 4,529
St. Louis County Rockwood School District #R-6,
Callable 02/01/11 @ 100
5.000%, 02/01/13 $ 3,000 $ 3,280
St. Louis County Rockwood School District #R-6,
Series A, Callable 02/01/13 @ 100
5.000%, 02/01/14 2,000 2,214
Taney County Reorganized School District #R-V,
Hollister, Missouri Direct Deposit Program,
Callable 03/01/13 @ 100 (FSA) (STAID)
5.000%, 03/01/17 1,000 1,082
Wentzville School District #R-4,
Callable 03/01/08 @ 100 (FSA)
5.100%, 03/01/18 3,000 3,219
-------------
TOTAL GENERAL OBLIGATIONS 48,066
-------------
TOTAL MUNICIPAL BONDS
(Cost $182,488) 194,668
-------------
TOTAL INVESTMENTS - 99.0%
(Cost $182,488) 194,668
-------------
OTHER ASSETS AND LIABILITIES, NET - 1.0% 1,846
-------------
TOTAL NET ASSETS - 100.0% $ 196,514
-------------
</Table>
(a) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) Escrowed to Maturity issues are typically backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(c) Security purchased on a when-issued basis. On September 30, 2003, the total
cost of investments purchased on a when-issued basis was $541,975. See note
2 in Notes to Financial Statements.
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $1,834,338, which represents
0.9% of net assets.
COMGTY - Commonwealth Guaranty
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FSA - Financial Security Assurance
MBIA - Municipal Bond Insurance Association
STAID - State Aid Withholding
67
<Page>
NEBRASKA TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 96.8%
REVENUE BONDS - 77.7%
EDUCATION - 19.3%
Nebraska Educational Finance Authority,
Concordia University Project,
Callable 12/15/08 @ 100
5.350%, 12/15/18 $ 1,000 $ 1,025
Nebraska Educational Finance Authority,
Creighton University Project, Series A (AMBAC)
5.000%, 09/01/09 500 563
Nebraska Educational Finance Authority,
Midland Lutheran College Project,
Callable 10/01/10 @ 100
5.200%, 10/01/20 350 352
Nebraska Educational Finance Authority,
Wesleyan University Project,
Callable 04/01/12 @ 100 (RAAI)
5.000%, 04/01/17 605 640
Nebraska Utility Corporation,
University of Nebraska, Lincoln Project,
Callable 01/01/12 @ 100
5.250%, 01/01/15 1,045 1,155
University of Nebraska, Callable 07/15/08 @ 100
5.250%, 07/15/11 1,000 1,115
University of Nebraska, Lincoln Parking Project,
Callable 08/01/05 @ 102
5.100%, 06/01/09 500 530
University of Nebraska, Lincoln Student Fees,
Callable 01/01/13 @ 100
5.000%, 07/01/22 750 770
University of Nebraska Facilities, Medical Center
Research Project, Callable 02/15/12 @ 100
5.000%, 02/15/15 500 542
-------------
6,692
-------------
HEALTHCARE - 15.8%
Douglas County Hospital Authority #1,
Immanuel Medical Center,
Callable 09/01/07 @ 102 (AMBAC)
4.900%, 09/01/09 750 821
Lancaster County Hospital Authority,
Bryanlgh Medical Center Project,
Callable 06/01/11 @ 100 (AMBAC)
5.000%, 06/01/19 500 519
5.125%, 06/01/21 1,200 1,247
Madison County Hospital Authority #1,
Faith Regional Health Services Project,
Callable 01/01/12 @ 100 (AG)
5.500%, 07/01/21 1,000 1,059
Nebraska Investment Finance Authority,
Great Plains Regional Medical Center,
Callable 05/15/12 @ 100 (RAAI)
5.200%, 11/15/16 250 266
5.300%, 11/15/17 805 857
Platte County Hospital Authority #1,
Columbus Community Hospital Project,
Callable 05/01/10 @ 101 (AG)
5.850%, 05/01/14 650 718
-------------
5,487
-------------
HOUSING - 6.3%
Nebraska Investment Finance Authority,
Multifamily Housing (GNMA)
4.625%, 07/20/12 480 495
Nebraska Investment Finance Authority,
Single Family Housing, Series A,
Callable 03/01/11 @ 100 (AMT)
5.150%, 03/01/16 $ 905 $ 938
Omaha Housing Authority, Multifamily Housing,
Timbercreek Apartments,
Callable 10/01/11 @ 100 (GNMA)
5.150%, 11/20/22 735 756
-------------
2,189
-------------
LEASE REVENUE - 2.4%
Nebraska Educational Telecommunication
Commission, Leasing Project, Series 2000 (MLO)
6.000%, 02/01/06 750 825
-------------
RECREATIONAL FACILITY AUTHORITY - 7.9%
Douglas County Zoo Facility, Omaha Henry Doorly
Zoo Project, Callable 09/01/09 @ 100
5.650%, 09/01/11 1,000 1,104
Omaha Convention Hotel Corporation, Series A,
Callable 04/01/12 @ 100 (AMBAC)
5.500%, 04/01/16 525 590
5.125%, 04/01/26 1,000 1,025
-------------
2,719
-------------
TAX REVENUE - 1.5%
Omaha Special Tax Revenue, Series A,
Callable 02/01/12 @ 101
5.125%, 02/01/32 500 512
-------------
TRANSPORTATION - 0.8%
Omaha Airport Authority,
Callable 01/01/11 @ 100 (FSA)
5.500%, 01/01/14 250 277
-------------
UTILITIES - 23.7%
Alliance Electrical Systems,
Callable 06/15/08 @ 100 (AMBAC)
5.000%, 12/15/14 260 282
5.100%, 12/15/15 460 501
Cuming County Public Power District,
Callable 05/15/06 @ 100
5.600%, 05/15/21 250 255
Grand Island Electrical Systems,
Callable 06/27/11 @ 100 (MBIA)
5.125%, 08/15/16 750 818
Hastings Electrical Systems,
Callable 05/01/11 @ 100 (FSA)
5.000%, 01/01/15 1,000 1,080
5.000%, 01/01/16 750 807
Lincoln Electrical Systems,
Callable 09/01/11 @ 100
5.000%, 09/01/15 500 542
Lincoln Electrical Systems,
Callable 09/01/13 @ 100
5.000%, 09/01/26 (a) 1,000 1,019
Nebraska Investment Finance Authority,
Drinking Water System Revolving Fund,
Callable 01/01/09 @ 100
4.500%, 01/01/10 115 121
5.150%, 01/01/16 580 604
Omaha Public Power District, Series A,
Callable 02/01/10 @ 100
5.000%, 02/01/17 655 702
5.200%, 02/01/22 630 655
</Table>
The accompanying notes are an integral part of the financial statements.
68
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Omaha Public Power District, Series A,
Callable 05/01/13 @ 100
3.900%, 02/01/14 $ 250 $ 253
Omaha Public Power Electrical Systems
6.200%, 02/01/17 210 256
Washington County Wastewater Facilities,
Cargill Inc. Project, Callable 11/01/12 @ 101
5.900%, 11/01/27 300 312
-------------
8,207
-------------
TOTAL REVENUE BONDS 26,908
-------------
GENERAL OBLIGATIONS - 15.2%
Dawson County School District,
Callable 06/15/06 @ 102
5.100%, 12/15/16 365 397
Douglas County School District #17, Millard,
Callable 11/15/12 @ 100 (FSA)
4.000%, 11/15/13 500 517
Douglas County School District #54, Ralston
Public Schools, Callable 08/15/11 @ 100
5.000%, 12/15/16 845 913
Lancaster County School District #1,
Lincoln Public Schools, Callable 01/15/11 @ 100
5.250%, 07/15/19 220 239
Lancaster County School District #1, Lincoln
Public Schools, Callable 07/15/12 @ 100
5.000%, 01/15/17 750 807
Omaha, Series A
6.500%, 12/01/18 825 1,047
Omaha, Series B, Callable 12/01/03 @ 100
5.250%, 12/01/25 500 502
Omaha-Douglas Public Building,
Callable 05/01/11 @ 100
4.900%, 05/01/16 500 532
5.100%, 05/01/20 300 317
-------------
TOTAL GENERAL OBLIGATIONS 5,271
-------------
CERTIFICATES OF PARTICIPATION - 3.9%
Western Nebraska Community College,
Callable 10/15/07 @ 100
4.700%, 10/15/10 295 309
4.800%, 10/15/11 195 203
4.900%, 10/15/12 250 260
5.000%, 10/15/13 300 311
5.100%, 10/15/14 250 259
-------------
TOTAL CERTIFICATES OF PARTICIPATION 1,342
-------------
TOTAL MUNICIPAL BONDS
(Cost $31,727) 33,521
-------------
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 4.8%
First American Tax Free Obligations Fund,
Cl Y (b) 1,683,218 $ 1,683
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,683) 1,683
-------------
TOTAL INVESTMENTS - 101.6%
(Cost $33,410) 35,204
-------------
OTHER ASSETS AND LIABILITIES, NET - (1.6)% (558)
-------------
TOTAL NET ASSETS - 100.0% $ 34,646
-------------
</Table>
(a) Security purchased on a when-issued basis. On September 30, 2003, the total
cost of investments purchased on a when-issued basis was $1,010,850. 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.
AG - Asset Guaranty
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $938,376, which represents 2.7%
of net assets.
Cl - Class
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
RAAI - Radian Asset Assurance Inc.
69
<Page>
OHIO TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 97.3%
REVENUE BONDS - 25.8%
EDUCATION - 5.5%
Ohio State Higher Educational Facilities,
Xavier University Project,
Callable 05/01/13 @ 100 (FGIC)
5.250%, 05/01/16 $ 1,000 $ 1,117
University of Cincinnati, Series A,
Callable 06/01/11 @ 101 (FGIC)
5.500%, 06/01/14 1,000 1,129
-------------
2,246
-------------
HEALTHCARE - 6.2%
Erie County Hospital Facilities,
Firelands Regional Medical Center,
Series A, Callable 08/15/12 @ 101
5.500%, 08/15/22 500 512
Franklin County Health Care Facilities,
Refunding & Improvement, Ohio Presbyterian,
Series A, Callable 07/01/12 @ 100 (RAAI)
5.125%, 07/01/22 500 510
Hamilton County Hospital Facilities,
Children's Medical Center, Series F (FGIC)
5.200%, 05/15/09 1,000 1,121
Lorain County Hospital, Catholic Healthcare,
Callable 10/01/12 @ 100
5.500%, 10/01/17 350 377
-------------
2,520
-------------
HOUSING - 0.7%
Ohio Housing Financing Agency,
Residential Mortgage, Series D,
Callable 03/01/12 @ 100 (AMT)
5.200%, 09/01/22 290 296
-------------
POLLUTION CONTROL - 2.6%
Ohio State Water Development Authority,
Water Pollution Control, Callable 06/01/12 @ 100
5.050%, 12/01/21 1,000 1,050
-------------
TRANSPORTATION - 2.8%
Ohio State Turnpike Commission, Series A,
Pre-refunded 02/15/06 @ 102 (MBIA)
5.700%, 02/15/13 (a) 1,000 1,120
-------------
UTILITIES - 8.0%
Cincinnati Water System, Callable 06/01/11 @ 100
5.000%, 12/01/20 1,000 1,047
Montgomery County Water, Greater Moraine Beaver,
Callable 11/15/12 @ 100 (AMBAC)
5.375%, 11/15/16 1,000 1,124
Ohio State Water Development Authority, Escrowed
to Maturity, Callable 06/01/05 @ 102 (AMBAC)
5.800%, 12/01/11 (b) 1,000 1,087
-------------
3,258
-------------
TOTAL REVENUE BONDS 10,490
-------------
GENERAL OBLIGATIONS - 62.8%
Cincinnati, Callable 12/01/11 @ 100
5.000%, 12/01/16 1,000 1,080
5.000%, 12/01/17 1,000 1,075
Columbus, Series B
5.000%, 07/01/08 1,405 1,584
Columbus City School District,
School Facilities Construction & Improvement,
Callable 06/01/13 @ 100 (FGIC)
5.000%, 12/01/18 2,000 2,149
Dayton City School District, School Facilities
Construction & Improvement, Series D (FGIC)
5.000%, 12/01/11 $ 1,000 $ 1,124
Dublin, Refunding & Improvement, Series A,
Callable 12/01/09 @ 101
5.250%, 12/01/14 1,000 1,113
Greater Cleveland Regional Transportation
Authority, Pre-refunded 12/01/06 @ 101 (FGIC)
5.650%, 12/01/16 (a) 1,000 1,139
Northwest School District, School Improvement,
Callable 12/01/12 @ 100 (MBIA)
5.000%, 12/01/22 1,000 1,038
Ohio State Common Schools, Series A,
Callable 03/15/12 @ 100
5.125%, 09/15/22 2,000 2,099
Ohio State Higher Education, Series A,
Callable 02/01/11 @ 100
5.000%, 02/01/19 1,000 1,057
Ohio State Higher Education, Series A,
Callable 02/01/12 @ 100
5.000%, 08/01/22 1,000 1,036
Ohio State Higher Education, Series B,
Callable 11/01/11 @ 100
5.000%, 11/01/15 1,000 1,087
5.000%, 11/01/16 1,000 1,082
Ohio State Infrastructure Improvement, Series A
5.500%, 02/01/20 1,000 1,146
Pickerington School District,
School Facilities Construction & Improvement,
Callable 12/01/11 @ 100 (FGIC)
5.250%, 12/01/20 1,000 1,076
Solon, Callable 12/01/12 @ 100
5.000%, 12/01/21 1,000 1,046
Springfield City School District,
Callable 12/01/11 @ 102 (FGIC)
5.200%, 12/01/23 1,000 1,055
Summit County, Series R (FGIC)
5.500%, 12/01/21 1,000 1,141
Sylvania City School District,
Pre-refunded 12/01/05 @ 101 (FGIC)
5.800%, 12/01/15 (a) 1,000 1,109
Toledo City School District, School Facilities
Improvement, Callable 12/01/13 @ 100 (FSA)
5.000%, 12/01/14 1,000 1,112
Van Wert City School District, School Improvement,
Callable 12/01/12 @ 100 (FGIC)
5.000%, 12/01/20 1,035 1,092
-------------
TOTAL GENERAL OBLIGATIONS 25,440
-------------
CERTIFICATES OF PARTICIPATION - 8.7%
Midview Local School District, School Buildings
Facilities Project, Callable 05/01/13 @ 100
5.250%, 11/01/17 1,270 1,351
Ohio State Building Authority, State Facility,
Administration Building Fund, Series A,
Callable 04/01/12 @ 100 (FSA)
5.500%, 04/01/16 1,000 1,126
5.000%, 04/01/22 1,000 1,035
-------------
TOTAL CERTIFICATES OF PARTICIPATION 3,512
-------------
TOTAL MUNICIPAL BONDS
(Cost $37,923) 39,442
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
70
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
MONEY MARKET FUND - 1.2%
Federated Ohio Municipal Trust 488,854 $ 489
-------------
TOTAL MONEY MARKET FUND
(Cost $489) 489
-------------
TOTAL INVESTMENTS - 98.5%
(Cost $38,412) 39,931
-------------
OTHER ASSETS AND LIABILITIES, NET - 1.5% 598
-------------
TOTAL NET ASSETS - 100.0% $ 40,529
-------------
</Table>
(a) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) Escrowed to Maturity issues are typically backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $296,534 which represents 0.7%
of net assets.
FGIC - Financial Guaranty Insurance Corporation
FSA - Financial Security Assurance
MBIA - Municipal Bond Insurance Association
RAAI - Radian Asset Assurance Inc.
OREGON INTERMEDIATE TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 97.9%
REVENUE BONDS - 38.5%
BUILDING - 0.7%
Oregon State Fair & Exposition Center,
Callable 10/01/03 @ 101 (RAAI)
5.400%, 10/01/06 $ 1,010 $ 1,023
-------------
EDUCATION - 5.0%
Multnomah County Educational Facilities, University
of Portland, Callable 04/01/07 @ 102 (AMBAC)
5.750%, 04/01/10 2,245 2,577
5.700%, 04/01/15 1,000 1,069
Oregon State Facilities Authority, Northwest Project,
Series A, Callable 10/01/12 @ 101
5.000%, 10/01/14 555 575
Oregon State Health, Housing,
Educational & Cultural Facilities Authority,
George Fox University, Series A,
Callable 03/01/07 @ 102 (BA)
5.400%, 03/01/09 395 434
5.450%, 03/01/10 415 451
Oregon State Health, Housing,
Educational & Cultural Facilities Authority,
Reed College, Series A, Callable 07/01/06 @ 102
5.375%, 07/01/15 2,000 2,104
Salem Educational Facilities, Williamette University,
Callable 04/01/04 @ 101
5.700%, 04/01/05 500 516
-------------
7,726
-------------
HEALTHCARE - 5.5%
Clackamas County Hospital Facilities Authority,
Legacy Health Systems, Callable 08/15/09 @ 101
5.250%, 02/15/11 2,000 2,191
5.375%, 02/15/12 1,000 1,092
Clackamas County Hospital Facilities Authority,
Mary's Woods, Series A, Callable 05/15/09 @ 102
6.125%, 05/15/13 1,000 1,034
Douglas County Hospital Facilities Authority,
Catholic Health, Series B (MBIA)
5.500%, 11/15/04 155 163
Medford Hospital Facilities Authority, Asante Health
Systems, Callable 08/15/08 @ 101 (MBIA)
5.250%, 08/15/11 1,000 1,109
5.375%, 08/15/12 1,000 1,105
Salem Hospital Facilities Authority,
Callable 08/15/08 @ 101
5.250%, 08/15/14 1,000 1,051
Umatilla County Hospital Facilities Authority,
Catholic Health Initiatives, Series A
5.000%, 03/01/12 690 743
-------------
8,488
-------------
HOUSING - 4.7%
Oregon State Housing & Community Services,
Series A, Callable 07/01/04 @ 102
6.400%, 07/01/18 630 650
Oregon State Housing & Community Services,
Series A, Callable 07/01/06 @ 102
6.000%, 07/01/16 850 897
Oregon State Housing & Community Services,
Series A, Callable 10/01/03 @ 102
4.900%, 07/01/05 1,075 1,099
5.750%, 07/01/12 2,490 2,533
</Table>
71
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Oregon State Housing & Community Services,
Series E, Callable 01/01/10 @ 100 (FHA)
5.750%, 07/01/13 $ 695 $ 744
Portland Housing Authority, Riverwood Project,
Pre-refunded 01/01/06 @ 100
6.000%, 01/01/11 (a) 1,170 1,291
-------------
7,214
-------------
IMPROVEMENTS - 0.7%
Oregon State Department of Administrative Services
Lottery, Series A, Callable 04/01/10 @ 100 (FSA)
5.000%, 04/01/12 1,050 1,145
-------------
POLLUTION CONTROL - 1.6%
Port of St. Helens Pollution Control,
Portland General Electric
4.800%, 04/01/10 2,450 2,062
4.800%, 06/01/10 400 331
-------------
2,393
-------------
TAX REVENUE - 1.4%
Medford Urban Renewal Agency,
Callable 01/01/13 @ 101
4.500%, 06/01/13 1,010 1,057
Portland Urban Renewal & Redevelopment,
Convention Center, Series A,
Callable 06/15/10 @ 101 (AMBAC)
5.750%, 06/15/15 1,000 1,148
-------------
2,205
-------------
TRANSPORTATION - 5.9%
Oregon State Department of Transportation,
Highway User Tax, Callable 11/15/10 @ 100
5.125%, 11/15/14 2,260 2,485
Oregon State Department of Transportation,
Highway User Tax, Series A,
Callable 11/15/12 @ 100
5.500%, 11/15/16 1,000 1,137
Port Morrow, Callable 06/01/05 @ 100
6.250%, 06/01/15 1,500 1,518
Port Portland Airport, Series 12-A,
Callable 01/01/09 @ 101 (FGIC)
5.250%, 07/01/11 1,165 1,280
5.250%, 07/01/12 2,000 2,205
Tri-County Metropolitan Transportation District,
Series 1 (MGT)
4.900%, 06/01/09 500 548
-------------
9,173
-------------
UTILITIES - 13.0%
Clackamas County Service District #1,
Pre-refunded 10/01/06 @ 100
6.200%, 10/01/09 (a) 700 798
Eugene Electric Utilities,
Callable 08/01/06 @ 100 (FSA)
5.375%, 08/01/11 1,195 1,320
Eugene Electric Utilities,
Callable 08/01/07 @ 100 (FSA)
5.000%, 08/01/11 1,305 1,439
Eugene Electric Utilities,
Callable 08/01/08 @ 100 (FSA)
4.800%, 08/01/13 690 726
Marion County Solid Waste & Electric,
Ogden Martin System Project (AMBAC)
5.500%, 10/01/06 1,465 1,621
Portland Sewer Systems, Series A,
Callable 06/01/07 @ 100 (FGIC)
5.000%, 06/01/09 $ 2,250 $ 2,490
5.000%, 06/01/10 2,000 2,212
5.000%, 06/01/15 250 269
Salem Water & Sewer (MBIA)
6.000%, 06/01/06 1,135 1,269
Tualatin Valley Water District,
Callable 06/01/08 @ 100 (FSA)
5.000%, 06/01/12 1,000 1,095
Washington County Clean Water Services,
Callable 10/01/11 @ 100 (FGIC)
5.125%, 10/01/14 1,790 1,968
Washington County Unified Sewer Agency,
Callable 10/01/06 @ 101 (FGIC)
5.200%, 10/01/09 1,300 1,449
Washington County Unified Sewer Agency,
Series 1 (FGIC)
5.750%, 10/01/08 1,000 1,162
Washington County Unified Sewer Agency,
Series A, Zero Coupon Bond (AMBAC)
3.170%, 10/01/05 (b) 1,150 1,120
4.200%, 10/01/07 (b) 1,200 1,102
-------------
20,040
-------------
TOTAL REVENUE BONDS 59,407
-------------
GENERAL OBLIGATIONS - 53.4%
Chemeketa Community College District,
Escrowed to Maturity (FGIC)
5.500%, 06/01/13 (c) 2,170 2,525
Chemeketa Community College,
Pre-refunded 06/01/06 @ 100 (FGIC)
5.650%, 06/01/09 (a) 1,000 1,112
Clackamas & Washington Counties School
District #3, Linn-Wilsonville District, Series A,
Zero Coupon Bond (FGIC)
4.415%, 06/15/15 (b) 5,540 3,328
Clackamas County Limited Tax Assessment,
Callable 11/01/03 @ 100
6.000%, 05/01/10 1,000 1,001
Clackamas County School District #7,
Lake Oswego, Callable 06/01/11 @ 100
5.500%, 06/01/12 1,240 1,414
Clackamas County School District #86, Canby,
Callable 06/15/10 @ 100 (SBG)
5.500%, 06/15/15 1,835 2,053
Columbia County School District #502,
Zero Coupon Bond (FGIC)
3.900%, 06/01/12 (b) 1,530 1,100
4.310%, 06/01/16 (b) 1,000 581
Deschutes County, Callable 12/01/12 @ 100 (FSA)
5.000%, 12/01/14 1,955 2,153
Deschutes County,
Pre-refunded 12/01/06 @ 100 (MBIA)
5.250%, 12/01/09 (a) 1,000 1,116
Deschutes & Jefferson Counties School
District #2, Callable 06/15/11 @ 100
5.500%, 06/15/14 1,725 1,940
Eugene Public Safety Facilities,
Callable 06/01/06 @ 100 (FGIC)
5.700%, 06/01/16 1,295 1,412
</Table>
The accompanying notes are an integral part of the financial statements.
72
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Hood River County School District,
Callable 06/15/11 @ 100 (SBG)
5.250%, 06/15/16 $ 1,030 $ 1,136
Jackson County School District #549,
Medford (SBG)
5.000%, 06/15/12 2,000 2,233
Josephine County School District #7 (FGIC)
5.750%, 06/01/06 1,525 1,697
Lake Oswego (MBIA)
5.250%, 06/01/13 1,035 1,180
Lane County School District #4, Eugene (FGIC)
5.000%, 07/01/11 1,785 2,005
Lane County School District #40, Creswell,
Callable 06/15/10 @ 100 (SBG)
5.000%, 06/15/11 1,120 1,242
Lane County School District #52, Bethel,
Pre-refunded 06/15/10 @ 100 (SBG)
5.350%, 06/15/11 (a) 1,285 1,478
Lincoln County School District (FGIC)
6.000%, 06/15/06 1,055 1,182
Linn Benton Community College District,
Zero Coupon Bond (FGIC) (SBG)
4.000%, 06/15/08 (b) 985 872
4.210%, 06/15/09 (b) 1,000 845
Linn County Community School District,
Callable 06/15/13 @ 100 (FGIC) (SBG)
5.550%, 06/15/21 1,000 1,070
Marion & Polk Counties School District #7-J,
Silverton, Callable 06/01/04 @ 101 (FSA)
5.600%, 06/01/06 860 894
Marion County School District #103C Woodburn,
Series B, Zero Coupon Bond (FGIC)
3.700%, 11/01/11 (b) 2,210 1,661
McMinnville School District
5.500%, 06/15/13 1,000 1,153
McMinnville School District #40 (FSA)
5.500%, 06/15/12 720 832
Metro, Callable 09/01/10 @ 102
5.250%, 09/01/14 1,000 1,116
Metropolitan, Washington Park Zoo, Series A,
Callable 01/15/07 @ 100
5.250%, 01/15/10 1,000 1,107
Morrow County School District #1 (MBIA)
5.500%, 06/01/05 835 896
Multnomah-Clackamas County
School District #10, Gresham-Barlow,
Callable 06/15/11 @ 100 (FSA) (SBG)
5.500%, 06/15/13 1,780 2,016
Multnomah-Clackamas County
School District #28-302, Centennial,
Callable 06/15/11 @ 100 (FGIC) (SBG)
5.500%, 06/15/14 1,500 1,687
Multnomah County, Series A,
Callable 04/01/10 @ 100
5.000%, 04/01/11 1,000 1,106
5.125%, 04/01/13 2,445 2,671
Multnomah County School District #7,
Reynolds (AMBAC)
5.500%, 06/01/06 1,000 1,108
Multnomah County School District #7, Reynolds,
Callable 06/15/11 @ 100 (SBG)
5.625%, 06/15/15 1,000 1,135
Oregon State Alternative Energy, Private Act,
Callable 07/01/04 @ 100
5.300%, 07/01/05 $ 900 $ 928
Oregon State Board of Higher Education, Series A,
Callable 08/01/09 @ 101
5.500%, 08/01/15 1,255 1,415
Oregon State Pollution Control, Series A,
Callable 11/01/07 @ 100
4.875%, 11/01/11 455 496
Polk, Marion & Benton Counties School
District #13-J, Callable 12/01/04 @ 101 (FGIC)
5.500%, 12/01/05 570 605
Port Portland, Series A
4.500%, 03/01/06 1,000 1,075
Portland Community College Services,
Callable 06/01/11 @ 100
5.375%, 06/01/15 1,375 1,529
Portland Emergency Facilities, Series A,
Callable 06/01/09 @ 100
5.000%, 06/01/12 1,060 1,161
Puerto Rico Commonwealth, Series C,
Mandatory Put 07/01/08 @ 100 (FSA)
5.000%, 07/01/21 1,000 1,117
Salem-Keizer School District #24-J,
Callable 06/01/08 @ 100 (FSA)
5.100%, 06/01/12 2,000 2,205
Salem-Keizer School District #24-J,
Callable 06/01/09 @ 100 (SBG)
5.250%, 06/01/12 1,000 1,109
Tri-County Metropolitan Transportation District,
Light Rail Extension, Series A,
Callable 07/01/09 @ 101
5.250%, 07/01/10 1,115 1,261
5.250%, 07/01/12 1,000 1,114
Tualatin Hills Park & Recreation District (FGIC)
5.750%, 03/01/13 870 1,023
Umatilla County School District #016-R,
Pendleton (FGIC)
5.000%, 07/01/11 1,000 1,123
Wasco County School District #12
5.500%, 06/15/14 1,080 1,253
Washington & Clackamas Counties School
District #23-J, Tigard (FGIC)
5.750%, 06/01/06 1,055 1,174
5.250%, 06/01/11 1,335 1,521
Washington & Clackamas Counties School
District #23-J, Tigard, Zero Coupon Bond
5.820%, 06/15/14 (b) 1,030 657
Washington County
5.500%, 06/01/10 1,000 1,157
Washington County School District #48-J,
Beaverton, Callable 08/01/08 @ 100
5.250%, 08/01/10 2,000 2,246
Washington County School District #88, Sherwood,
Pre-refunded 06/01/05 @ 100 (FSA)
5.700%, 06/01/06 (a) 1,000 1,076
Washington, Multnomah & Yamhill Counties
School District #1-J
5.000%, 11/01/14 1,000 1,123
Washington, Multnomah & Yamhill Counties
School District #1-J (MBIA)
5.000%, 06/01/10 1,425 1,606
</Table>
73
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Washington, Multnomah & Yamhill Counties
School District #1-J, Callable 06/01/09 @ 100
5.250%, 06/01/12 $ 1,185 $ 1,315
Wilsonville, Callable 06/01/08 @ 100
5.000%, 12/01/10 445 448
Yamhill County School District #40,
McMinnville (FGIC)
6.000%, 06/01/08 600 700
-------------
TOTAL GENERAL OBLIGATIONS 82,494
-------------
CERTIFICATES OF PARTICIPATION - 6.0%
Multnomah County,
Callable 08/01/08 @ 101 (MLO)
4.750%, 08/01/11 2,200 2,362
Oregon State Department of Administrative
Services, Series A (AMBAC) (MLO)
5.500%, 05/01/07 1,000 1,127
Oregon State Department of
Administrative Services, Series A,
Callable 05/01/09 @ 101 (AMBAC) (MLO)
5.000%, 05/01/14 1,200 1,302
Oregon State Department of Administrative
Services, Series A, Callable 05/01/13 @ 100 (FSA)
5.000%, 05/01/14 1,200 1,326
Oregon State Department of
Administrative Services, Series A,
Pre-refunded 11/01/05 @ 101 (MBIA) (MLO)
5.000%, 11/01/06 (a) 1,000 1,089
Oregon State Department of
Administrative Services, Series B,
Callable 11/01/07 @ 101 (AMBAC) (MLO)
5.000%, 11/01/11 840 925
Oregon State Department of
Administrative Services, Series C,
Pre-refunded 05/01/06 @ 101 (MBIA) (MLO)
5.750%, 05/01/07 (a) 990 1,110
-------------
TOTAL CERTIFICATES OF PARTICIPATION 9,241
-------------
TOTAL MUNICIPAL BONDS
(Cost $141,360) 151,142
-------------
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 0.5%
First American Tax Free Obligations Fund,
Cl Y (d) 829,764 $ 830
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $830) 830
-------------
TOTAL INVESTMENTS - 98.4%
(Cost $142,190) 151,972
-------------
OTHER ASSETS AND LIABILITIES, NET - 1.6% 2,461
-------------
TOTAL NET ASSETS - 100.0% $ 154,433
-------------
</Table>
(a) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) The rate shown is the effective yield at the time of purchase.
(c) Escrowed to Maturity issues are typically backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(d) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements.
AMBAC - American Municipal Bond Assurance Corporation
BA - Bank of America
Cl - Class
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FSA - Financial Security Assurance
MBIA - Municipal Bond Insurance Association
MGT - Morgan Guaranty Trust
MLO - Municipal Lease Obligation
RAAI - Radian Asset Assurance Inc.
SBG - School Board Guaranty
The accompanying notes are an integral part of the financial statements.
74
<Page>
SHORT TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 94.7%
ALABAMA - 1.2%
Foley Utilities Board, Escrowed to Maturity,
Callable 03/01/04 @ 100 (RB)
6.000%, 03/01/07 (a) $ 1,500 $ 1,713
Homewood, Sewer 7, Escrowed to Maturity,
Callable 10/01/03 @ 100 (RB)
6.125%, 03/01/07 (a) 1,340 1,535
Mobile, Escrowed to Maturity,
Callable 02/15/04 @ 100 (GO)
6.200%, 02/15/07 (a) 1,280 1,462
-------------
4,710
-------------
ALASKA - 1.4%
Anchorage, Series B (GO) (MBIA)
5.000%, 07/01/06 5,000 5,474
-------------
ARIZONA - 2.2%
Arizona State Funding Program, Series 15,
Escrowed to Maturity (COP)
8.750%, 08/01/06 (a) 2,115 2,541
8.750%, 08/01/06 (a) 1,410 1,695
Scottsdale Water & Sewer, Project of 1989,
Series E (RB)
7.000%, 07/01/08 1,370 1,662
Yavapai County Industrial Development Authority,
Waste Management Project, Series A-1,
Mandatory Put 03/01/06 @ 100 (AMT) (GTY) (RB)
3.650%, 03/01/28 3,100 3,127
-------------
9,025
-------------
CALIFORNIA - 4.6%
California State (GO)
5.000%, 06/01/07 5,000 5,478
5.000%, 02/01/08 5,000 5,505
California State, Series A (RB)
2.000%, 06/16/04 4,000 4,016
Contra Costa Transportation Authority,
Series A, Escrowed to Maturity,
Callable 10/01/03 @ 100 (RB)
6.875%, 03/01/07 (a) 3,000 3,363
-------------
18,362
-------------
COLORADO - 1.4%
Denver City & County Airport,
Series E (AMT) (RB) (XLCA)
5.000%, 11/15/07 5,000 5,529
-------------
CONNECTICUT - 0.3%
Mashantucket Western Pequot Tribe, Series A,
Escrowed to Maturity (RB)
6.375%, 09/01/04 (a) (b) 1,020 1,070
-------------
DISTRICT OF COLUMBIA - 1.4%
District of Columbia, Series A (GO) (MBIA)
5.500%, 06/01/07 5,000 5,625
-------------
FLORIDA - 0.9%
Escambia County Health Facilities Authority,
Ascension Health Credit, Series A (RB)
5.000%, 11/15/06 815 891
Highlands County Health Facilities Authority,
The Adventist Health System, Series B (RB)
3.750%, 11/15/06 2,605 2,721
-------------
3,612
-------------
IDAHO - 0.8%
Idaho Falls, Escrowed to Maturity,
Callable 10/01/03 @ 100 (RB)
10.250%, 04/01/06 (a) $ 995 $ 1,129
Idaho Falls, Pre-refunded 04/01/07 @ 100,
Callable 10/01/03 @ 100 (RB)
10.375%, 04/01/13 (c) 1,075 1,386
Magic Valley Healthcare System, Magic Valley
Regional Medical Center Project (RB) (VRDO)
1.150%, 12/01/21 795 795
-------------
3,310
-------------
ILLINOIS - 11.5%
Champaign County Community Unit
School District #4 (GO)
8.300%, 01/01/07 1,120 1,337
Chicago O'Hare International Airport,
2nd Lien Passenger Facilities,
Series C (AMBAC) (AMT) (RB)
5.000%, 01/01/08 2,260 2,477
Chicago O'Hare International Airport, Series A,
Callable 01/01/04 @ 102 (AMBAC) (RB)
4.800%, 01/01/05 4,250 4,374
Chicago Park District,
Partially Pre-refunded 05/15/05 @ 102,
Callable 05/15/05 @ 102 (GO)
6.350%, 11/15/08 (c) 2,000 2,204
Cook County Community High School
District #218, Partially Escrowed to Maturity,
Zero Coupon Bond (FSA) (GO)
2.630%, 12/01/05 (a) (d) 1,760 1,710
Cook County Consolidated High School District #200,
Oak Park, Zero Coupon Bond (FSA) (GO)
2.070%, 12/01/05 (d) 2,265 2,195
Du Page Airport Authority, Series A (FGIC) (RB)
3.000%, 02/01/07 2,000 2,074
Illinois Development Finance Authority, Mercy
Housing Corporation Project,
Pre-refunded 08/01/04 @ 102 (GTY) (RB)
7.000%, 08/01/24 (c) 6,505 6,920
Illinois Development Finance Authority,
People's Gas, Light & Coke, Series B,
Mandatory Put 02/01/08 @ 100 (AMBAC) (RB)
3.050%, 02/01/33 (e) 3,000 3,074
Illinois Educational Facilities Authority,
The Art Institute of Chicago,
Mandatory Put 03/01/08 @ 100 (RB)
3.100%, 03/01/34 2,000 2,006
Illinois Health Facilities Authority, Covenant
Retirement Communities, Series A (RAAI) (RB)
3.375%, 12/01/06 1,365 1,422
Illinois Health Facilities Authority, St. Elizabeth's
Hospital, Pre-refunded 07/01/04 @ 102 (RB)
7.625%, 07/01/10 (c) 1,000 1,068
7.750%, 07/01/16 (c) 3,150 3,366
Illinois Health Facilities Authority,
University of Chicago
Hospital & Health (MBIA) (RB)
5.000%, 08/15/06 1,000 1,093
5.000%, 08/15/07 1,000 1,108
</Table>
75
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Illinois State Toll Highway Authority,
Pre-refunded 07/01/06 @ 100,
Callable 10/01/03 @ 100 (RB)
6.750%, 01/01/10 (c) $ 55 $ 61
Illinois State, First Series (GO)
4.000%, 12/01/06 2,000 2,148
Lake County Community Unit School
District #60, Waukegan, Series A (FSA) (GO)
6.000%, 12/01/05 1,115 1,227
Lake County School District #112,
Highland Park (GO)
9.000%, 12/01/06 1,655 2,010
9.000%, 12/01/07 1,000 1,263
Northern University, Escrowed to Maturity,
Callable 10/01/03 @ 100 (RB)
7.125%, 04/01/05 (a) 1,405 1,483
Sangamon County (COP)
7.300%, 12/01/04 1,500 1,601
-------------
46,221
-------------
INDIANA - 3.6%
East Chicago Multi School Building Corporation,
Pre-refunded 07/15/06 @ 102 (RB) (STAID)
6.500%, 01/15/16 (c) 1,000 1,157
Gary Sanitation District,
Special Tax District (GO) (RAAI)
3.500%, 02/01/07 1,105 1,151
Indianapolis Industries Local Public Improvement,
Airport Authority, Series A (AMT) (FSA) (RB)
5.000%, 01/01/07 10,000 10,894
New Albany Floyd County School Building,
Escrowed to Maturity,
Callable 01/01/04 @ 101 (RB) (STAID)
6.200%, 07/01/04 (a) 1,300 1,350
-------------
14,552
-------------
KANSAS - 2.1%
Augusta Electric Generating & Distribution System,
Escrowed to Maturity,
Callable 11/15/03 @ 100 (RB)
6.700%, 11/15/07 (a) 1,440 1,475
Kansas State Department Transportation Highway,
Series A (RB)
5.000%, 09/01/05 5,000 5,363
Newton Hospital, Newton Healthcare Corporation,
Series A, Pre-refunded 11/15/04 @ 102 (RB)
7.375%, 11/15/14 (c) 1,500 1,631
-------------
8,469
-------------
KENTUCKY - 0.4%
Bowling Green Industrial Building, Koehring
Company Project, Escrowed to Maturity,
Callable 10/01/03 @ 100 (RB)
7.250%, 04/01/04 (a) 405 417
Kentucky State Turnpike Authority, Escrowed to
Maturity, Callable 10/01/03 @ 100 (RB)
6.125%, 07/01/07 (a) 420 461
Owensboro Electric, Light & Power, Escrowed to
Maturity, Callable 01/01/04 @ 100 (RB)
6.850%, 01/01/08 (a) 685 764
-------------
1,642
-------------
LOUISIANA - 0.3%
Louisiana State Health & Education Authority,
Lambeth House Project,
Pre-refunded 10/01/06 @ 102 (RB)
9.000%, 10/01/26 (c) $ 1,000 $ 1,238
-------------
MARYLAND - 0.5%
Calvert County Economic Development,
Asbury-Solomons Island Facilities Project,
Pre-refunded 01/01/05 @ 102 (RB)
8.375%, 01/01/15 (c) 1,000 1,110
Maryland State Health & Higher Education
Facilities Authority, Memorial Hospital of
Cumberland, Pre-refunded 07/01/04 @ 100 (RB)
6.500%, 07/01/17 (c) 1,000 1,039
-------------
2,149
-------------
MASSACHUSETTS - 4.3%
Massachusetts State Housing Finance Agency,
Series B (RB)
2.500%, 06/01/06 6,000 6,116
Massachusetts State, Series E (GO)
5.500%, 01/01/09 10,000 11,394
-------------
17,510
-------------
MICHIGAN - 4.7%
Detroit Water Supply System, Escrowed to Maturity,
Callable 01/01/04 @ 100 (RB)
8.875%, 01/01/05 (a) 3,035 3,205
Michigan Municipal Bond Authority,
Pre-refunded 10/01/04 @ 102 (RB)
6.500%, 10/01/17 (c) 3,100 3,330
Michigan Municipal Bond Authority, Series A,
Escrowed to Maturity, Callable 10/01/03 @ 102 (RB)
6.150%, 10/01/05 (a) 1,500 1,649
Michigan State Hospital Finance Authority,
Genesys Health System, Series A,
Pre-refunded 10/01/05 @ 100 (RB)
7.500%, 10/01/27 (c) 6,620 7,448
Michigan State Hospital Finance Authority,
Harper-Grace Hospital, Escrowed to Maturity,
Callable 10/01/03 @ 100 (RB)
7.125%, 05/01/09 (a) 445 511
Michigan State Hospital Finance Authority,
Henry Ford Health System, Series A (RB)
5.000%, 03/01/06 1,000 1,069
Michigan State Strategic Fund, Dow-Chemical
Project, Mandatory Put 06/01/06 @ 100 (RB)
3.800%, 06/01/14 (e) 1,800 1,847
-------------
19,059
-------------
MINNESOTA - 1.0%
Minneapolis Healthcare System,
Allina Health System, Series A (RB)
5.000%, 11/15/06 1,895 2,047
Monticello, Big Lake Community Hospital District,
Series C (RB)
4.250%, 12/01/07 1,845 1,888
Northwestern Mutual Life Insurance Co.
Tax-Exempt Mortgage Trust #1 (RB)
7.605%, 02/15/09 (e) 51 51
-------------
3,986
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
76
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.9%
Mississippi State, Escrowed to Maturity,
Callable 02/01/08 @ 100 (GO)
6.200%, 02/01/08 (a) $ 3,105 $ 3,585
-------------
MISSOURI - 2.9%
Boone County Hospital (RB)
5.000%, 08/01/06 4,065 4,379
Little Blue Valley Sewer District, Escrowed to
Maturity, Callable 10/01/03 @ 100 (RB)
5.750%, 10/01/04 (a) 1,000 1,008
5.500%, 10/01/07 (a) 1,000 1,143
Missouri State Development Finance Board,
Branson, Series A (RB)
5.000%, 12/01/05 1,000 1,066
Missouri State Environmental Improvement & Energy
Resources Authority, Amerenue Project,
Series A (RB) (VRDO)
1.550%, 03/01/35 1,800 1,800
Missouri State Environmental Improvement & Energy
Resources Authority, Water Pollution Control,
Associated Electric CoOp, Thomas Hill (RB)
5.500%, 12/01/06 1,000 1,122
St. Louis International Airport, Series A (FSA) (RB)
5.000%, 07/01/07 1,100 1,216
-------------
11,734
-------------
NEBRASKA - 0.6%
Nebraska Investment Finance Authority, Catholic
Health Initiatives, Series A (RB)
5.500%, 12/01/07 2,000 2,246
-------------
NEVADA - 0.8%
Nevada State, Partially Pre-refunded 12/01/04 @ 101,
Callable 12/01/04 @ 101 (GO)
6.500%, 12/01/12 (c) 3,000 3,213
-------------
NEW HAMPSHIRE - 1.7%
New Hampshire State Turnpike
System (AMBAC) (RB)
2.000%, 02/01/06 1,000 1,016
New Hampshire State, Series A (GO)
5.000%, 07/15/07 5,220 5,827
-------------
6,843
-------------
NEW JERSEY - 3.8%
New Jersey Economic Development Authority,
Arbor Glen Project, Series A,
Pre-refunded 05/15/06 @ 102 (RB)
8.000%, 05/15/12 (c) 2,000 2,377
New Jersey Economic Development Authority,
United Methodist Homes,
Pre-refunded 07/01/05 @ 102 (RB)
7.500%, 07/01/20 (c) 4,255 4,783
New Jersey Sports & Exposition Authority,
Monmouth Park, Series A,
Pre-refunded 01/01/05 @ 102 (RB)
8.000%, 01/01/25 (c) 2,400 2,654
New Jersey State Educational Facilities Authority,
Stevens Institute of Technology, Series C (RB)
4.000%, 07/01/04 500 509
New Jersey State Transportation Corporation,
Sub-Federal Transportation Administrative Grants,
Series B (COP)
5.000%, 09/15/06 2,025 2,206
New Jersey State Turnpike Authority,
Escrowed to Maturity (RB)
6.750%, 01/01/09 (a) $ 2,585 $ 2,853
-------------
15,382
-------------
NEW MEXICO - 0.4%
Farmington, Pre-refunded 07/01/05 @ 100 (RB)
9.875%, 01/01/13 (c) 1,450 1,643
-------------
NEW YORK - 5.8%
Long Island Power Authority, Series B (RB)
5.000%, 12/01/06 3,700 4,033
New York State Dormitory Authority,
Lutheran Medical (FHA) (MBIA) (RB)
3.000%, 02/01/07 1,410 1,462
New York, Series A (GO)
5.250%, 08/01/08 8,000 8,870
New York, Series G (GO)
5.000%, 08/01/08 1,615 1,772
New York, Series H (GO)
4.000%, 08/01/08 1,675 1,763
Port Authority of New York & New Jersey,
119th Series (AMT) (FGIC) (RB)
5.000%, 09/15/06 5,050 5,519
-------------
23,419
-------------
NORTH CAROLINA - 2.0%
North Carolina Medical Care Commission,
Novant Health Obligated Group, Series A (RB)
5.000%, 11/01/07 5,325 5,911
North Carolina Municipal Power Agency,
Series A (RB)
3.000%, 01/01/05 1,665 1,693
5.000%, 01/01/05 500 521
-------------
8,125
-------------
OHIO - 1.8%
Allen County Economic Development,
Young Men's Christian Association,
Mandatory Put 04/14/08 @ 100 (RB)
3.000%, 04/15/18 (e) 5,000 5,093
Ohio State Improvement Infrastructure,
Series A (GO)
5.000%, 08/01/06 2,000 2,196
-------------
7,289
-------------
OKLAHOMA - 0.3%
Ponca City Utility Authority, Escrowed to Maturity,
Callable 10/01/03 @ 100 (RB)
6.000%, 07/01/08 (a) 1,110 1,304
-------------
PENNSYLVANIA - 2.7%
Chartiers Valley Industrial & Commercial
Development Authority, Friendship Village South,
Series A (RB)
2.750%, 08/15/05 400 400
3.150%, 08/15/06 400 400
3.450%, 08/15/07 300 299
Delaware County Authority, Villanova University,
Optional Put 04/01/06 @ 100 (RB)
2.000%, 08/01/31 (e) 3,500 3,500
Hampden Township Sewer Authority, Escrowed to
Maturity, Callable 10/01/03 @ 100 (RB)
6.150%, 04/01/07 (a) 1,100 1,221
</Table>
77
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Lehigh County General Purpose Authority,
Muhlenberg Hospital Center, Series A,
Pre-refunded 07/15/04 @ 100 (RB)
6.600%, 07/15/22 (c) $ 3,250 $ 3,391
Ringgold School District Authority, Escrowed to
Maturity, Callable 10/01/03 @ 100 (RB)
6.700%, 01/15/08 (a) 1,325 1,504
-------------
10,715
-------------
PUERTO RICO - 3.1%
Puerto Rico Commonwealth, Highway
Transportation Authority, Series AA (RB)
5.000%, 07/01/07 7,200 7,933
Puerto Rico Commonwealth, Series C,
Mandatory Put 07/01/08 @ 100 (GO)
5.000%, 07/01/18 (e) 4,250 4,671
-------------
12,604
-------------
RHODE ISLAND - 0.7%
Rhode Island State Health & Educational Building,
Higher Education Facility,
Johnson & Wales (RB) (XLCA)
5.000%, 04/01/07 1,000 1,107
Rhode Island State Health & Educational Building,
Higher Education Facility, Roger Williams,
Pre-refunded 11/15/04 @ 102 (CLE) (RB)
7.200%, 11/15/14 (c) 1,500 1,633
-------------
2,740
-------------
SOUTH CAROLINA - 0.4%
Georgetown County, Series A (FGIC) (GO)
3.000%, 03/01/07 1,055 1,098
South Carolina Jobs Economic Development
Authority, Palmetto Health Alliance, Series C (RB)
4.500%, 08/01/06 660 686
-------------
1,784
-------------
SOUTH DAKOTA - 0.8%
Sioux Falls Health Facilities, Dow Rummel Village
Project, Series B, Mandatory Put 11/15/07 @ 100,
Callable 11/15/07 @ 100 (RB)
4.750%, 11/15/33 1,675 1,668
South Dakota Housing Development Authority,
Homeownership Mortgage, Series I (AMT) (RB)
2.850%, 05/01/06 1,600 1,633
-------------
3,301
-------------
TENNESSEE - 0.4%
Sullivan County Health Educational & Housing
Facilities, Wellmont Health Systems Project (RB)
4.500%, 09/01/06 1,500 1,571
-------------
TEXAS - 18.2%
Arlington Independent School District,
Pre-refunded 02/15/05 @ 67.33,
Zero Coupon Bond (GO) (PSFG)
2.460%, 02/15/12 (c) (d) 8,940 5,921
Austin Utility System,
Pre-refunded 11/15/04 @ 100 (FGIC) (RB)
5.750%, 05/15/24 (c) 1,530 1,610
Austin, Escrowed to Maturity,
Callable 10/01/03 @ 100 (GO)
8.500%, 07/01/05 (a) 1,500 1,690
Brazos River Authority, Utilities Electric Co., Series B,
Mandatory Put 06/19/06 @ 100 (AMT) (RB)
5.050%, 06/01/30 (e) $ 1,800 $ 1,874
Colorado River Municipal Water System (AMBAC) (RB)
5.000%, 01/01/06 1,500 1,621
Fort Bend Independent School District (GO) (PSFG)
7.750%, 08/15/04 1,485 1,570
Harris County Health Facilities Development,
Hermann Hospital Project,
Pre-refunded 10/01/04 @ 101 (MBIA) (RB)
6.375%, 10/01/24 (c) 830 882
Houston Airport Systems, Escrowed to Maturity (RB)
8.200%, 07/01/05 (a) 910 983
Houston Water & Sewer System, Series A (FSA) (RB)
5.500%, 12/01/06 4,500 5,041
Houston, Public Improvement (GO) (MBIA)
5.000%, 03/01/07 5,000 5,528
Laredo Independent School District (GO) (PSFG)
6.750%, 08/01/08 2,150 2,578
North Central Health Facility Development,
Baylor Health Care Systems Project (RB)
5.500%, 05/15/06 3,500 3,841
North East Independent School District (GO) (PSFG)
7.000%, 02/01/05 2,500 2,692
Northside Independent School District,
Series B, Callable 02/01/04 @ 100,
Mandatory Put 08/01/06 @ 100 (GO) (PSFG)
2.450%, 08/01/33 (e) 7,000 7,017
Port Arthur District (AMBAC) (GO)
7.875%, 03/01/04 405 416
Richardson Hospital Authority,
Richardson Medical Center,
Pre-refunded 12/01/03 @ 102 (RB)
6.500%, 12/01/12 (c) 1,810 1,852
San Antonio (GO)
3.000%, 02/01/06 1,700 1,764
Southeast Hospital Financing Agency, Memorial
Hospital System Project, Escrowed to Maturity,
Callable 10/01/03 @ 100 (RB)
8.500%, 12/01/08 (a) 930 1,093
Tarrant Regional Water District (FSA) (RB)
4.000%, 03/01/07 2,000 2,145
5.000%, 03/01/08 2,275 2,543
Texas State Public Finance Authority, Series A (GO)
5.250%, 10/01/07 10,250 11,555
Texas Technical University, Improvement Financing
Systems, Ninth Series (AMBAC) (RB)
4.000%, 02/15/08 1,000 1,076
Trinity River Authority, Tarrant County Water
Project (MBIA) (RB)
3.000%, 02/01/05 1,180 1,209
3.000%, 02/01/06 2,590 2,687
3.250%, 02/01/07 2,130 2,232
Tyler Health Facilities Development,
Mother Frances Hospital (RB)
5.000%, 07/01/07 575 612
United Independent School District (GO) (PSFG)
8.000%, 08/15/05 1,075 1,208
-------------
73,240
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
78
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
UTAH - 1.9%
Intermountain Power Agency, Series A (MBIA) (RB)
5.000%, 07/01/07 $ 7,000 $ 7,785
-------------
WASHINGTON - 2.1%
Energy Northwest Electric,
Columbia General Station, Series F (MBIA) (RB)
5.000%, 07/01/07 1,000 1,112
Washington State Housing Finance Commission,
Presbyterian Ministries, Series A,
Pre-refunded 07/01/06 @ 102 (RB)
6.850%, 07/01/21 (c) 1,390 1,620
Washington State, Series E (GO)
6.000%, 07/01/07 5,000 5,731
-------------
8,463
-------------
WISCONSIN - 0.8%
Wisconsin State Health & Educational Facilities
Authority, Gundersen Lutheran,
Series A (FSA) (RB)
5.000%, 02/15/08 1,000 1,107
Wisconsin State Health & Educational Facilities
Authority, Wheaton Franciscan Services,
Series A (RB)
5.000%, 08/15/07 1,000 1,083
Wisconsin State Health & Educational Facilities,
Marquette University Project,
Pre-refunded 12/01/04 @ 101 (FGIC) (RB)
6.450%, 12/01/19 (c) 1,000 1,073
-------------
3,263
-------------
TOTAL MUNICIPAL BONDS
(Cost $368,705) 381,792
-------------
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 3.7%
First American Tax Free
Obligations Fund, Cl Y (f) 15,013,334 $ 15,013
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $15,013) 15,013
-------------
TOTAL INVESTMENTS - 98.4%
(Cost $383,718) 396,805
-------------
OTHER ASSETS AND LIABILITIES, NET - 1.6% 6,561
-------------
TOTAL NET ASSETS - 100.0% $ 403,366
-------------
</Table>
(a) Escrowed to Maturity issues are typically backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(b) Security sold within the terms of a private placement memorandum, exempt
from registration under Rule 144A of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "qualified
institutional buyers." These securities have been determined to be liquid
under the guidelines established by the Funds' board of directors. As of
September 30, 2003, the value of these investments was $31,053,129 or 7.7%
of total net assets.
(c) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(d) The rate shown is the effective yield at the time of purchase.
(e) Variable Rate Security - The rate shown is the rate in effect as of
September 30, 2003.
(f) 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.
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $31,053,129, which represents 7.7%
of net assets.
Cl - Class
CLE - Connie Lee Insurance Company
COP - Certificate of Participation
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FSA - Financial Security Assurance
GO - General Obligation
GTY - Guaranty
MBIA - Municipal Bond Insurance Association
PSFG - Permanent School Fund Guarantee
RAAI - Radian Asset Assurance Inc.
RB - Revenue Bond
STAID - State Aid Withholding
VRDO - Variable Rate Demand Obligation. Floating or variable rate obligation
maturing in more than one year. The interest rate, which is based on
specific, or an index of, market interest rates, is subject to change
periodically and is the effective rate on September 30, 2003. This
instrument may also have a demand feature which allows the recovery of
principal at any time, or at specified intervals not exceeding one year,
on up to 30 days' notice. Maturity date shown represents final maturity.
XLCA - XL Capital Assurance Inc.
79
<Page>
TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 96.0%
ALABAMA - 0.8%
Bessemer, Callable 07/01/06 @ 102 (AMBAC) (RB)
5.750%, 07/01/16 $ 2,500 $ 2,785
Camden Industrial Development Board, Series A,
Callable 12/01/13 @ 100 (RB)
6.125%, 12/01/24 1,000 1,045
Camden Industrial Development Board, Series B,
Callable 12/01/13 @ 100 (AMT) (RB)
6.375%, 12/01/24 350 366
-------------
4,196
-------------
ALASKA - 1.9%
Alaska Energy Authority, Bradley Lake,
Third Series (FSA) (RB)
6.000%, 07/01/10 1,000 1,181
6.000%, 07/01/11 4,040 4,784
Alaska State Housing Finance Corporation,
Series A, Callable 12/01/05 @ 105 (MBIA) (RB)
5.700%, 12/01/11 505 526
Alaska State Housing Finance Corporation,
Series A, Callable 06/01/07 @ 102 (MBIA) (RB)
5.900%, 12/01/19 1,000 1,036
Anchorage, Series B,
Callable 07/01/12 @ 100 (GO) (MBIA)
5.000%, 07/01/22 2,000 2,064
-------------
9,591
-------------
ARIZONA - 1.1%
Arizona State Transportation Board,
Callable 07/01/09 @ 100 (RB)
6.000%, 07/01/12 3,830 4,499
Scottsdale, Individual Development Authority,
Scottsdale Heathcare,
Callable 12/01/11 @ 101 (RB)
5.800%, 12/01/31 1,000 1,022
-------------
5,521
-------------
CALIFORNIA - 3.4%
California State, Callable 02/01/13 @ 100 (GO)
5.000%, 02/01/21 5,500 5,590
California State, Callable 04/01/09 @ 101 (GO)
4.750%, 04/01/22 500 492
California State Department of Water, Series A,
Callable 05/01/12 @ 101 (RB)
5.375%, 05/01/22 4,500 4,672
Golden State Tobacco Securitization, Series B,
Callable 06/01/13 @ 100 (RB)
5.500%, 06/01/33 3,440 3,395
Vernon, Malburg Generating Station Project,
Callable 04/01/08 @ 100 (RB)
5.500%, 04/01/33 3,000 3,017
-------------
17,166
-------------
COLORADO - 2.6%
Colorado State Educational & Cultural Facilities
Authority, Classical Academy Charter School
Project, Callable 12/01/11 @ 100 (RB)
7.250%, 12/01/21 1,500 1,557
Colorado State Health Facilities Authority,
Covenant Retirement Communities, Series B,
Callable 12/01/12 @ 101 (RB)
6.125%, 12/01/33 1,150 1,154
Colorado State Health Facilities Authority,
Evangelical Lutheran Health Facilities,
Callable 10/01/12 @ 100 (RB)
5.900%, 10/01/27 $ 2,500 $ 2,546
Colorado State Health Facilities Authority, Parkview
Medical Center, Callable 09/01/11 @ 100 (RB)
6.500%, 09/01/20 1,000 1,080
Colorado State Health Facilities Authority, Vail Valley
Medical Center, Callable 01/15/12 @ 100 (RB)
5.800%, 01/15/27 1,500 1,526
The E-470 Public Highway Authority, Series B,
Zero Coupon Bond (MBIA) (RB)
5.470%, 09/01/32 (a) 10,000 2,115
La Junta Hospital, Arkansas Valley Medical Center
Project, Callable 04/01/09 @ 101 (RB)
6.000%, 04/01/19 1,000 1,022
Northwest Parkway Public Highway Authority,
Zero Coupon Bond (AMBAC) (RB)
6.290%, 06/15/29 (a) 10,000 2,232
-------------
13,232
-------------
FLORIDA - 3.4%
Capital Trust Agency, American Opportunity,
Senior A, Callable 06/01/11 @ 102 (RB)
5.750%, 06/01/23 1,000 971
Capital Trust Agency, Fort Lauderdale Project,
Callable 01/01/14 @ 101 (AMT) (RB)
5.750%, 01/01/32 1,000 943
Florida State Department of Transportation,
Callable 07/01/06 @ 101 (GO)
5.250%, 07/01/17 5,525 5,998
Florida State Department of Transportation,
Alligator Alley, Callable 07/01/07 @ 101 (FGIC) (RB)
5.125%, 07/01/13 1,280 1,411
Martin County Health Facilities Authority,
Martin Memorial Medical Center, Series A,
Callable 11/15/12 @ 101 (RB)
5.750%, 11/15/22 1,350 1,357
Palm Beach County Health Facilities Authority,
Boca Raton Community Hospital,
Callable 12/01/11 @ 101 (RB)
5.625%, 12/01/31 1,000 1,015
Palm Beach County, Park & Recreational Facilities,
Callable 11/01/06 @ 102 (FSA) (RB)
5.250%, 11/01/16 5,000 5,522
-------------
17,217
-------------
GEORGIA - 1.2%
Gainesville & Hall County Hospital Authority,
Northeast Georgia Health Systems Inc. Project,
Callable 05/15/11 @ 100 (RB)
5.500%, 05/15/31 5,000 5,049
Georgia Municipal Electric Authority Power,
Series BB (MBIA) (RB)
5.250%, 01/01/25 1,000 1,086
-------------
6,135
-------------
HAWAII - 1.7%
Hawaii State, Series CN,
Callable 03/01/07 @ 102 (FGIC) (GO)
5.500%, 03/01/14 8,000 8,876
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
80
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
ILLINOIS - 12.2%
Bolingbrook, Residential Mortgages,
Escrowed to Maturity (FGIC) (RB)
7.500%, 08/01/10 (b) $ 1,080 $ 1,294
Chicago, City Colleges,
Zero Coupon Bond (FGIC) (GO)
5.380%, 01/01/30 (a) 10,000 2,442
Cook County, Series A (GO) (MBIA)
6.250%, 11/15/12 9,090 11,000
Cook County Community School District #97,
Oak Park, Series B (FGIC) (GO)
9.000%, 12/01/11 2,235 3,128
Illinois Development Finance Authority, Adventist
Health System, Callable 11/15/09 @ 101 (RB)
5.500%, 11/15/29 5,000 4,986
Illinois Health Facilities Authority, Advocate Health
Care Network, Series A,
Callable 08/15/07 @ 102 (MBIA) (RB)
5.800%, 08/15/16 2,500 2,805
Illinois Health Facilities Authority, Condell
Medical Center, Callable 05/15/12 @ 100 (RB)
5.500%, 05/15/32 2,500 2,507
Illinois Health Facilities Authority, Covenant
Retirement Communities,
Callable 12/01/11 @ 101 (RB)
5.875%, 12/01/31 4,500 4,335
Illinois Health Facilities Authority, Covenant
Retirement Communities, Series A,
Callable 12/01/12 @ 100 (RAAI) (RB)
5.500%, 12/01/22 4,000 4,218
Illinois Health Facilities Authority, Lutheran Senior
Ministries, Series A, Callable 08/15/11 @ 101 (RB)
7.375%, 08/15/31 1,000 1,013
Illinois State Development Finance Authority,
Pollution Control, Series A,
Pre-refunded 07/01/06 @ 102 (RB)
7.375%, 07/01/21 (c) 500 585
Illinois State Development Finance Authority,
Waste Management Project (AMT) (RB)
5.850%, 02/01/07 1,000 1,063
Illinois State Educational Facilities Authority,
Augustana College,
Callable 10/01/07 @ 100 (CLE) (RB)
5.875%, 10/01/17 500 578
Illinois State Educational Facilities Authority,
Augustana College, Callable 10/01/08 @ 100 (RB)
5.250%, 10/01/18 1,000 1,136
Illinois State,
Pre-refunded 02/01/05 @ 102 (GO) (MBIA)
6.100%, 02/01/17 (c) 2,225 2,417
Illinois State,
Pre-refunded 05/01/06 @ 102 (GO) (MBIA)
5.750%, 05/01/21 (c) 1,410 1,551
Illinois State,
Pre-refunded 02/01/07 @ 101 (FGIC) (GO)
5.250%, 02/01/13 (c) 1,400 1,551
Illinois State Toll Highway Authority, Series A (RB)
6.300%, 01/01/12 1,000 1,194
McHenry County, Community Unit School
District #200, Woodstock, Series A,
Pre-refunded 01/01/08 @ 100 (FSA) (GO)
5.850%, 01/01/16 (c) 2,400 2,686
Metropolitan Pier & Exposition Authority,
McCormick Place, Illinois Dedicated State Tax,
Class B, Zero Coupon Bond (MBIA) (RB)
5.650%, 06/15/22 (a) $ 5,000 $ 2,487
Northern Illinois University, Auxiliary
Facilities Systems, Partially
Pre-refunded 04/01/07 @ 100 (FGIC) (RB)
5.700%, 04/01/16 (c) 1,000 1,103
Rock Island, Friendship Manor Project (RB)
7.000%, 06/01/06 710 706
Rock Island, Friendship Manor Project,
Callable 10/01/03 @ 102 (RB)
7.200%, 06/01/13 400 401
Rockford Multifamily Housing,
Rivers Edge Apartments, Series A,
Callable 01/20/08 @ 102 (AMT) (GNMA) (RB)
5.875%, 01/20/38 1,215 1,219
Southern Illinois University, Housing & Auxiliary,
Zero Coupon Bond, Series A (MBIA) (RB)
5.500%, 04/01/20 (a) 2,280 1,008
Springfield Electric, Callable 03/01/11 @ 101 (RB)
5.500%, 03/01/15 2,000 2,243
St. Clair County, Callable 10/01/09 @ 102 (FGIC) (GO)
6.000%, 10/01/11 2,020 2,377
-------------
62,033
-------------
INDIANA - 2.6%
Crown Point, Multi-School Building Corporation,
First Mortgage (MBIA) (RB)
7.875%, 01/15/06 2,630 3,009
Indiana State Educational Facilities Authority,
St. Joseph's College Project,
Callable 10/01/09 @ 102 (RB)
7.000%, 10/01/29 1,000 1,054
Indiana State Municipal Power Agency,
Power Supply, Series B (MBIA) (RB)
6.000%, 01/01/11 1,000 1,174
6.000%, 01/01/12 1,000 1,173
Indiana Transportation Finance Authority,
Series A (AMBAC) (MLO) (RB)
5.000%, 11/01/07 2,000 2,232
Indiana Transportation Finance Authority,
Series A (AMBAC) (RB)
5.750%, 06/01/12 3,185 3,723
Lake County Redevelopment Authority,
Callable 02/01/05 @ 102 (MBIA) (MLO) (RB)
6.500%, 02/01/16 800 869
-------------
13,234
-------------
IOWA - 0.5%
Iowa Higher Education Loan Authority,
Central College Project,
Callable 10/01/11 @ 100 (RAAI) (RB)
5.500%, 10/01/31 1,500 1,561
Muscatine Electric, Escrowed to Maturity,
Callable 01/01/04 @ 100 (RB)
6.700%, 01/01/13 (b) 1,000 1,190
-------------
2,751
-------------
KENTUCKY - 0.5%
Jefferson County Health Facilities,
University Medical Center,
Callable 07/01/07 @ 101 (MBIA) (RB)
5.500%, 07/01/17 2,500 2,757
-------------
</Table>
81
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
LOUISIANA - 1.5%
Baton Rouge Sales & Use Tax, Public Improvements,
Series A, Callable 08/01/08 @ 101.50 (FGIC) (RB)
5.250%, 08/01/15 $ 2,030 $ 2,249
Jefferson Parish, Drain Sales Tax (AMBAC) (RB)
5.000%, 11/01/11 1,000 1,122
Jefferson Parish, Home Mortgage Authority,
Escrowed to Maturity,
Callable 02/01/04 @ 100 (FGIC) (FHA) (RB)
7.100%, 08/01/11 (b) 1,000 1,256
Lafayette, Public Improvement Sales Tax,
Series B (FGIC) (RB)
7.000%, 03/01/08 1,000 1,199
Louisiana Public Facilities Authority,
Tulane University of Louisiana, Series A-1,
Callable 11/15/07 @ 102 (MBIA) (RB)
5.100%, 11/15/14 1,500 1,645
-------------
7,471
-------------
MASSACHUSETTS - 2.2%
Boston Industrial Development Financing
Authority, Crosstown Center Project,
Callable 09/01/12 @ 102 (AMT) (RB)
6.500%, 09/01/35 2,500 2,465
Massachusetts Bay Transportation Authority,
Series A, Callable 03/01/07 @ 101 (FGIC) (RB)
5.000%, 03/01/12 5,795 6,330
Massachusetts Bay Transportation Authority,
Series A, Callable 03/01/09 @ 101 (FGIC) (RB)
5.750%, 03/01/21 2,000 2,235
-------------
11,030
-------------
MICHIGAN - 2.5%
Dearborn Economic Development Corporation,
Oakwood Obligation Group, Series A,
Callable 11/15/05 @ 102 (FGIC) (RB)
5.750%, 11/15/15 2,450 2,681
Haslett Public School District,
Pre-refunded 05/01/07 @ 100 (GO) (MBIA)
5.700%, 05/01/16 (c) 1,200 1,363
Lanse Creuse, Public Schools,
Callable 05/01/07 @ 100 (AMBAC) (GO)
5.250%, 05/01/16 1,000 1,086
Michigan State Hospital Finance Authority,
Henry Ford Health Systems, Series A,
Callable 03/01/13 @ 100 (RB)
5.500%, 03/01/15 1,500 1,605
Thornapple Kellogg School Building & Site,
Callable 11/01/12 @ 100 (GO) (MQSBLF)
5.500%, 05/01/14 1,485 1,692
5.500%, 05/01/16 1,810 2,049
Ypsilanti School District,
Pre-refunded 05/01/07 @ 100 (FGIC) (GO)
5.600%, 05/01/12 (c) 2,000 2,267
-------------
12,743
-------------
MINNESOTA - 6.9%
Cuyuna Range Hospital District, Series A,
Callable 06/01/07 @ 102 (RB)
6.000%, 06/01/29 650 618
Eden Prairie Multifamily Housing,
Callable 01/20/08 @ 102 (GNMA) (RB)
5.500%, 01/20/18 500 524
Fergus Falls Health Care Facilities Authority,
Lake Region Hospital, Long Term Care Facilities
Project, Callable 12/01/05 @ 102 (RB)
6.500%, 12/01/25 $ 1,530 $ 1,594
Fergus Falls Health Care Facilities Authority,
Series A, Callable 11/01/04 @ 102 (RB)
7.000%, 11/01/19 150 147
Glencoe Health Care Services Facilities Project,
Callable 04/01/11 @ 101 (RB)
7.500%, 04/01/31 700 715
Glencoe Hospital Board,
Pre-refunded 08/01/04 @ 102 (RB)
6.750%, 04/01/16 (c) 485 517
Maplewood, Carefree Cottages Project,
Callable 11/01/10 @ 100 (AMT) (RB)
7.200%, 11/01/32 4,580 4,809
Minneapolis Healthcare System,
Fairview Health Services, Series A,
Callable 05/15/12 @ 101 (RB)
5.625%, 05/15/32 7,000 7,217
Minnesota Agriculture & Economic Development
Board, Health Care System, Series A,
Callable 11/15/10 @ 101 (RB)
6.375%, 11/15/29 3,000 3,232
Minnesota Agriculture & Economic Development
Board, Minnesota Small Business Program,
Callable 08/01/10 @ 100 (AMT) (RB)
5.550%, 08/01/16 900 909
Minnesota State, Callable 08/01/07 @ 100 (GO)
4.900%, 08/01/14 4,000 4,305
Minnesota State Higher Education Facilities
Authority, Macalester College,
Series 5-Q (RB) (VRDO)
1.100%, 03/01/33 1,100 1,100
Minnesota State Housing Finance Agency,
Single Family Housing (AMT) (RB)
4.400%, 07/01/07 1,950 2,075
Minnesota State Housing Finance Agency,
Single Family Mortgage,
Callable 10/01/03 @ 102 (AMT) (RB)
6.500%, 01/01/26 310 315
Monticello, Big Lake Community Hospital,
Series C, Callable 12/01/12 @ 100 (RB)
6.200%, 12/01/22 2,995 3,076
New Hope Housing & Healthcare Facilities
Authority, Masonic Home North Ridge,
Callable 03/01/09 @ 102 (RB)
5.750%, 03/01/15 1,600 1,600
Roseville Housing Facilities Authority,
Pre-refunded 10/01/03 @ 102 (RB)
7.125%, 10/01/13 (c) 1,000 1,020
St. Anthony Housing & Redevelopment Authority,
Callable 05/20/06 @ 102 (FHA) (GNMA) (RB)
6.250%, 11/20/25 1,000 1,114
-------------
34,887
-------------
MISSOURI - 1.3%
Cape Girardeau County Authority, Southeast
Missouri Hospital, Callable 06/01/12 @ 100 (RB)
5.750%, 06/01/32 2,500 2,565
Missouri State Environmental
Improvement & Energy Resources Authority,
Amerenue Project, Series A (RB) (VRDO)
1.550%, 03/01/35 2,000 2,000
</Table>
The accompanying notes are an integral part of the financial statements.
82
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
St. Louis Industrial Development Authority,
Convention Center Project, Series A,
Callable 12/15/10 @ 102 (AMT) (RB)
7.000%, 12/15/15 $ 1,000 $ 983
Sugar Creek, Lafarge North America, Series A,
Callable 06/01/13 @ 101 (AMT) (RB)
5.650%, 06/01/37 1,000 972
-------------
6,520
-------------
NEBRASKA - 1.0%
Hastings Electrical Systems,
Callable 05/01/11 @ 100 (FSA) (RB)
5.000%, 01/01/15 1,000 1,080
Lancaster County, Hospital Authority,
Callable 06/01/11 @ 100 (AMBAC) (RB)
5.125%, 06/01/26 1,000 1,021
Nebraska Educational Finance Authority,
Concordia University Project,
Callable 12/15/08 @ 100 (RB)
5.250%, 12/15/15 500 516
5.350%, 12/15/18 540 554
Washington County Wastewater Facilities,
Cargill Inc. Project, Callable 11/01/12 @ 101 (RB)
5.900%, 11/01/27 1,700 1,766
-------------
4,937
-------------
NEVADA - 1.0%
Carson City, Carson-Tahoe Hospital Project,
Callable 09/01/12 @ 101 (RB)
5.750%, 09/01/31 5,000 4,938
-------------
NEW JERSEY - 1.6%
Camden County, Municipal Utilities Authority,
Series C, Callable 07/15/08 @ 101 (FGIC) (GO)
5.100%, 07/15/12 5,000 5,521
New Jersey State Transportation System,
Series A, Callable 06/15/08 @ 100 (RB)
5.000%, 06/15/14 2,500 2,700
-------------
8,221
-------------
NEW YORK - 3.2%
New York, Series C,
Callable 03/15/12 @ 100 (GO)
5.250%, 03/15/32 3,590 3,627
New York, Series C,
Pre-refunded 03/15/12 @ 100 (GO)
5.250%, 03/15/32 (c) 6,410 7,334
New York State Thruway Authority, Series A,
Callable 04/01/07 @ 102 (AMBAC) (RB)
5.250%, 04/01/14 5,000 5,532
-------------
16,493
-------------
NORTH DAKOTA - 0.4%
Fargo Health Systems, Meritcare Obligated Group,
Series A, Callable 06/01/10 @ 101 (FSA) (RB)
5.600%, 06/01/21 2,000 2,162
-------------
OHIO - 2.7%
Cincinnati Water System,
Callable 06/01/11 @ 100 (RB)
5.000%, 12/01/20 125 131
Cleveland Waterworks, Series H,
Pre-refunded 01/01/06 @ 102 (MBIA) (RB)
5.750%, 01/01/16 (c) 1,460 1,633
Greater Cleveland Regional Transportation Authority,
Pre-refunded 12/01/06 @ 101 (FGIC) (GO)
5.650%, 12/01/16 (c) 2,500 2,847
Ohio State Building Authority,
Administration Building Fund, Series A,
Pre-refunded 10/01/04 @ 102 (MBIA) (MLO) (RB)
6.000%, 10/01/08 (c) $ 1,000 $ 1,069
6.000%, 10/01/09 (c) 1,225 1,310
Ohio State Higher Education, Series A,
Callable 02/01/11 @ 100 (GO)
5.000%, 02/01/19 1,095 1,158
Ohio State Higher Education, Series B,
Callable 11/01/11 @ 100 (GO)
5.000%, 11/01/15 1,250 1,359
5.000%, 11/01/16 1,500 1,623
Ohio State Water Development Authority,
Callable 06/01/05 @ 101 (MBIA) (RB)
5.250%, 12/01/09 1,000 1,078
University of Cincinnati, Series A,
Callable 06/01/11 @ 101 (FGIC) (RB)
5.500%, 06/01/14 1,325 1,496
-------------
13,704
-------------
OREGON - 1.4%
Washington County Unified Sewer Agency,
Series 1 (FGIC) (RB)
5.750%, 10/01/10 6,110 7,165
-------------
PENNSYLVANIA - 2.0%
Bucks County Water & Sewer Authority,
Callable 12/01/06 @ 100 (FGIC) (RB)
5.550%, 12/01/17 1,000 1,100
Chester Upland School Authority, Series A,
Callable 09/01/07 @ 100 (FSA) (RB)
5.250%, 09/01/17 2,000 2,187
Pennsylvania State,
Callable 03/15/07 @ 101.50 (AMBAC) (GO)
5.125%, 09/15/11 5,000 5,559
Pennsylvania State Higher Education Facilties
Authority, University of Pennsylvania Health Services,
Series A, Callable 07/01/08 @ 100 (MBIA) (RB)
5.250%, 01/01/12 1,000 1,097
-------------
9,943
-------------
PUERTO RICO - 0.1%
Puerto Rico Public Improvements,
Callable 07/01/10 @ 100 (GO) (MBIA)
5.750%, 07/01/26 500 587
-------------
RHODE ISLAND - 1.1%
Rhode Island State, Series A,
Callable 08/01/07 @ 101 (GO) (MBIA)
5.125%, 08/01/12 5,055 5,585
-------------
SOUTH CAROLINA - 0.9%
Lexington County Health Services District Inc.,
Lexington Medical Center,
Callable 11/01/13 @ 100 (RB)
5.500%, 11/01/23 2,000 2,064
South Carolina Jobs Economic Development
Authority, Palmetto Health Alliance, Series A,
Callable 08/01/13 @ 100 (RB)
6.125%, 08/01/23 1,250 1,254
South Carolina Jobs Economic Development
Authority, Palmetto Health Alliance, Series C,
Callable 08/01/13 @ 100 (RB)
6.375%, 08/01/34 1,250 1,260
-------------
4,578
-------------
</Table>
83
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.2%
Sioux Falls, Dow Rummel Village Project, Series A,
Callable 11/15/12 @ 100 (RB)
6.625%, 11/15/23 $ 2,200 $ 2,181
South Dakota Economic Development Finance
Authority, DTS Inc. Project, Series A,
Callable 04/01/09 @ 102 (AMT) (RB)
5.500%, 04/01/19 1,055 1,072
South Dakota Housing Development Authority,
Series H, Callable 05/01/10 @ 100 (FHA) (RB)
5.900%, 05/01/28 2,000 2,008
South Dakota State Health & Educational Facilities
Authority, Callable 07/01/06 @ 102 (MBIA) (RB)
6.000%, 07/01/14 1,000 1,116
-------------
6,377
-------------
TENNESSEE - 3.0%
Jackson Water & Sewer, Escrowed to Maturity,
Callable 10/01/03 @ 102 (RB)
6.300%, 07/01/11 (b) 2,900 3,339
Johnson City Health & Educational Facilities
Authority, Series A, Callable 07/01/12 @ 103 (RB)
7.500%, 07/01/33 2,500 2,679
Shelby County Health, Educational & Housing
Facilities Board, Methodist Healthcare,
Callable 09/01/12 @ 100 (RB)
6.500%, 09/01/21 (d) 3,000 3,314
Sullivan County Health, Educational & Housing
Facilities Board, Wellmont Health Systems Project,
Callable 09/01/12 @ 101 (RB)
6.250%, 09/01/32 5,500 5,701
-------------
15,033
-------------
TEXAS - 16.7%
Abilene Health Facilities Development, Sears
Methodist Retirement Project (RB)
4.900%, 11/15/03 665 664
Abilene Health Facilities Development, Sears
Methodist Retirement Project,
Callable 05/15/09 @ 101 (RB)
5.875%, 11/15/18 500 464
6.000%, 11/15/29 2,000 1,782
Abilene Health Facilities Development, Sears
Methodist Retirement Project, Series A,
Callable 11/15/08 @ 101 (RB)
5.875%, 11/15/18 2,500 2,318
Abilene Health Facilities Development, Sears
Methodist Retirement Project, Series A,
Callable 11/15/13 @ 101 (RB)
7.000%, 11/15/33 4,000 3,917
Bexar County Housing Finance Authority,
American Opportunity Housing, Series A,
Callable 01/01/11 @ 102 (MBIA) (RB)
5.800%, 01/01/31 2,000 2,082
Brazos River Authortity,
Callable 04/01/13 @ 101 (AMT) (RB)
7.700%, 04/01/33 2,500 2,759
Brazos River Harbor District,
Dow Chemical, Series A-5,
Mandatory Put 05/15/12 @ 100 (AMT) (RB)
5.700%, 05/15/33 2,500 2,661
Crawford Education Facilities Corp.,
University of St. Thomas Project,
Callable 10/01/12 @ 100 (RB)
5.250%, 10/01/22 $ 1,300 $ 1,298
5.375%, 10/01/27 1,750 1,721
Cypress - Fairbanks Independent School District,
Callable 02/15/10 @ 100 (GO) (PSFG) (STAID)
5.500%, 02/15/18 5,000 5,519
Fort Bend Independent School District,
Pre-refunded 02/15/05 @ 100 (GO) (PSFG)
5.000%, 02/15/14 (c) 500 561
Gregg County Health Facilities Development
Corporation, Good Shepherd Health Systems,
Series A, Callable 10/01/12 @ 100 (RB)
6.500%, 10/01/26 5,320 5,556
Harris County Health Facilities Development,
Memorial Hospital Systems Project, Series A,
Callable 06/01/07 @ 102 (MBIA) (RB)
5.500%, 06/01/17 8,000 8,682
5.750%, 06/01/19 2,500 2,756
Laredo Independent School District (GO) (PSFG)
6.750%, 08/01/09 2,290 2,785
Nueces County Housing Financial Corporation,
Dolphins Landing Apartments Project, Series A,
Callable 07/01/10 @ 102 (RB)
6.875%, 07/01/30 1,860 1,868
Red River Authority Sewer & Solidwaste Disposal,
Callable 02/01/12 @ 101 (AMT) (RB)
6.100%, 02/01/22 3,775 3,778
Remington Municipal Utility District #1, Series A,
Callable 09/01/08 @ 100 (GO) (RAAI)
5.800%, 09/01/25 1,000 1,079
Sam Rayburn Municipal Power Agency,
Callable 10/01/12 @ 100 (RAAI) (RB)
5.750%, 10/01/21 3,800 4,113
San Antonio Independent School District,
Callable 08/15/08 @ 100 (GO) (PSFG)
5.125%, 08/15/14 6,000 6,540
Spring Branch Independent School District,
Callable 02/01/10 @ 100 (GO) (PSFG)
5.750%, 02/01/25 2,400 2,618
Tarrant County Housing Financial Corporation,
Multifamily Housing, Fair Oaks,
Callable 07/01/10 @ 102 (RB)
6.750%, 07/01/20 500 450
6.875%, 07/01/30 1,000 877
Texas Employment Community,
Callable 01/15/04 @ 101 (COP) (MLO)
8.250%, 08/01/04 40 41
8.300%, 02/01/05 40 41
8.300%, 08/01/05 45 46
8.350%, 02/01/06 20 21
8.350%, 08/01/06 50 51
8.400%, 08/01/07 25 26
8.450%, 08/01/08 55 56
Texas Employment Community,
Emnora Lane Project (COP) (MLO)
7.850%, 05/01/04 10 10
7.850%, 11/01/04 25 25
7.900%, 05/01/05 25 25
7.900%, 11/01/05 25 25
8.000%, 11/01/06 30 30
8.050%, 05/01/07 20 20
</Table>
The accompanying notes are an integral part of the financial statements.
84
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------------
Texas State, Water Development,
Callable 08/01/06 @ 100 (GO)
5.400%, 08/01/21 $ 6,750 $ 7,246
Texas Water Development Board, Series A,
Callable 07/15/06 @ 100 (RB)
5.500%, 07/15/10 2,500 2,771
University of Texas Permanent University Fund,
Callable 07/01/08 @ 100 (PUFG) (RB)
5.000%, 07/01/14 7,060 7,672
-------------
84,954
-------------
UTAH - 0.2%
Intermountain Power Agency, Utah Power Supply,
Series A (AMBAC) (RB)
6.500%, 07/01/11 365 444
Intermountain Power Agency, Utah Power Supply,
Series A, Escrowed to Maturity (AMBAC) (RB)
6.500%, 07/01/11 (b) 635 780
-------------
1,224
-------------
VIRGINIA - 0.2%
Arlington County Industrial Development Authority,
Berkeley Apartments,
Callable 12/01/10 @ 102 (AMT) (FNMA) (RB)
5.850%, 12/01/20 1,000 1,074
-------------
WASHINGTON - 6.9%
Chelan County Public Utility District No. 1,
Chelan Hydro Systems, Series A,
Callable 07/01/12 @ 100 (AMBAC) (AMT) (RB)
5.450%, 07/01/37 4,000 4,104
Energy Northwest, Washington Wind Project,
Callable 01/01/07 @ 103 (RB)
5.600%, 07/01/15 4,640 4,765
King County, Series F,
Callable 12/01/07 @ 100 (GO)
5.125%, 12/01/14 5,000 5,452
King County School District #415,
Callable 12/01/07 @ 100 (GO) (MBIA)
5.350%, 12/01/16 4,050 4,460
Snohomish County Public Utilities
District #1, Escrowed to Maturity,
Callable 10/01/03 @ 101 (RB)
6.750%, 01/01/12 (b) 1,000 1,223
Washington State, Series C,
Callable 01/01/07 @ 100 (GO)
5.500%, 01/01/17 4,190 4,549
Washington State Motor Vehicle Fuel Tax,
Series D, Callable 01/01/07 @ 100 (FGIC) (GO)
5.375%, 01/01/22 8,000 8,504
Washington State Public Power Supply System,
Nuclear Project #3, Series A,
Callable 07/01/07 @ 102 (FSA) (RB)
5.250%, 07/01/16 1,000 1,094
Washington State Public Power Supply System,
Nuclear Project #3, Series B (RB)
7.125%, 07/01/16 600 778
-------------
34,929
-------------
WISCONSIN - 5.4%
Amery, Apple River Hospital Project,
Callable 06/01/08 @ 100 (RB)
5.700%, 06/01/13 1,440 1,459
Badger Tobacco Asset Securitization,
Callable 06/01/12 @ 100 (RB)
6.000%, 06/01/17 3,000 2,654
Wisconsin State, Series C,
Pre-refunded 05/01/07 @ 100 (FGIC) (GO)
5.500%, 05/01/10 (c) $ 2,095 $ 2,366
Wisconsin State Health & Educational Facilities
Authority, Attic Angel Obligation Group,
Callable 11/15/08 @ 102 (RB)
5.750%, 11/15/27 1,000 845
Wisconsin State Health & Educational Facilities
Authority, Aurora Health Care,
Callable 08/15/13 @ 100 (RB)
6.400%, 04/15/33 700 705
Wisconsin State Health & Educational Facilities
Authority, Aurora Medical Group Inc. Project,
Callable 05/15/06 @ 102 (FSA) (RB)
5.600%, 11/15/16 2,460 2,697
Wisconsin State Health & Educational Facilities
Authority, Beloit Memorial Hospital,
Callable 10/01/03 @ 102 (RB)
5.800%, 07/01/09 555 567
Wisconsin State Health & Educational Facilities
Authority, Franciscan Skemp Medical Center,
Callable 11/15/05 @ 102 (RB)
6.125%, 11/15/15 1,000 1,101
Wisconsin State Health & Educational Facilities
Authority, Marshfield Clinic, Series B,
Callable 02/15/12 @ 100 (RB)
6.000%, 02/15/25 3,500 3,552
Wisconsin State Health & Educational Facilities
Authority, Meriter Hospital Inc.,
Callable 12/01/06 @ 102 (MBIA) (RB)
6.000%, 12/01/17 2,000 2,254
Wisconsin State Health & Educational Facilities
Authority, New Castle Place Project, Series A,
Callable 12/01/11 @ 101 (RB)
7.000%, 12/01/31 2,000 2,005
Wisconsin State Health & Educational Facilities
Authority, Synergy Health Inc.,
Callable 08/15/13 @ 100 (RB)
6.000%, 11/15/23 1,500 1,532
Wisconsin State Health & Educational Facilities
Authority, Wheaton Franciscan Services,
Callable 02/15/12 @ 100 (RB)
5.750%, 08/15/30 5,500 5,689
-------------
27,426
-------------
WYOMING - 0.7%
Teton County Hospital District, St. John's
Medical Center, Callable 06/01/12 @ 101 (RB)
6.750%, 12/01/22 2,100 2,113
6.750%, 12/01/27 1,500 1,465
-------------
3,578
-------------
TOTAL MUNICIPAL BONDS
(Cost $453,493) 488,268
-------------
</Table>
85
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 0.6%
First American Tax Free Obligations Fund,
Cl Y (e) 2,815,711 $ 2,816
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $2,816) 2,816
-------------
TOTAL INVESTMENTS - 96.6%
(Cost $456,309) 491,084
-------------
OTHER ASSETS AND LIABILITIES, NET - 3.4% 17,372
-------------
TOTAL NET ASSETS - 100.0% $ 508,456
-------------
</Table>
(a) The rate shown is the effective yield at the time of purchase.
(b) Escrowed to Maturity issues are typically backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(c) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(d) Inverse Floating Rate Security - Security pays interest at rates that
increase (decrease) in the same magnitude as, or in a multiple of, a
decrease (increase) in the market rate paid. See note 2 in Notes to
Financial Statements.
(e) 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.
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market
value of securities subject to the AMT was $31,567,993, which represents
6.2% of net assets.
Cl - Class
CLE - Connie Lee Insurance Company
COP - Certificate of Participation
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
GO - General Obligation
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
MQSBLF - Michigan Qualified School Board Loan Fund Program
PSFG - Permanent School Fund Guarantee
PUFG - Permanent University Fund Guarantee
RAAI - Radian Asset Assurance Inc.
RB - Revenue Bond
STAID - State Aid Withholding
VRDO - Variable Rate Demand Obligation. Floating or variable rate obligation
maturing in more than one year. The interest rate, which is based on
specific, or an index of, market interest rates, is subject to change
periodically and is the effective rate on September 30, 2003. This
instrument may also have a demand feature which allows the recovery of
principal at any time, or at specified intervals not exceeding one year,
on up to 30 days' notice. Maturity date shown represents final maturity.
The accompanying notes are an integral part of the financial statements.
86
<Page>
(This page has been left blank intentionally.)
<Page>
STATEMENTS OF ASSETS AND LIABILITIES September 30, 2003, in thousands, except
per share data
<Table>
<Caption>
CALIFORNIA COLORADO
ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- ------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated securities, at value* $ 22,300 $ 48,772 $ 27,159 $ 68,672
Investments in affiliated securities, at value** -- -- -- 540
Cash -- -- -- --
Dividends and interest receivable 275 581 325 974
Receivable for investment securities sold 1,117 -- -- 506
Capital shares sold 87 10 52 508
Prepaid expenses and other assets 5 5 5 5
- ------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 23,784 49,368 27,541 71,205
==================================================================================================================
LIABILITIES:
Bank overdraft -- -- -- --
Payable for investment securities purchased 745 450 -- 502
Capital shares redeemed 3 24 38 248
Payable for advisory, co-administration, and custodian fees 4 31 15 43
Payable for distribution and shareholder servicing fees 3 1 1 3
- ------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 755 506 54 796
==================================================================================================================
NET ASSETS $ 23,029 $ 48,862 $ 27,487 $ 70,409
==================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 21,176 $ 44,974 $ 25,264 $ 65,492
Undistributed net investment income 33 36 33 63
Accumulated net realized gain (loss) on investments 99 152 186 (463)
Net unrealized appreciation of investments 1,721 3,700 2,004 5,317
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 23,029 $ 48,862 $ 27,487 $ 70,409
==================================================================================================================
*Investments in unaffiliated securities, at cost $ 20,579 $ 45,072 $ 25,155 $ 63,355
**Investments in affiliated securities, at cost -- -- -- 540
CLASS A:
Net assets $ 11,928 $ 4,262 $ 11,143 $ 22,555
Shares issued and outstanding ($0.0001 par
value - 2 billion authorized) 1,053 401 978 2,036
Net asset value and redemption price per share $ 11.33 $ 10.64 $ 11.40 $ 11.08
Maximum offering price per share (1) $ 11.83 $ 10.88 $ 11.91 $ 11.34
CLASS C:
Net assets $ 1,857 -- $ 1,101 --
Shares issued and outstanding ($0.0001 par
value - 2 billion authorized) 164 -- 96 --
Net asset value and redemption price per share (2) $ 11.31 -- $ 11.41 --
Maximum offering price per share (1) $ 11.42 -- $ 11.53 --
CLASS Y:
Net assets $ 9,244 $ 44,600 $ 15,243 $ 47,854
Shares issued and outstanding ($0.0001 par
value - 2 billion authorized) 816 4,182 1,337 4,330
Net asset value, offering price, and redemption
price per share $ 11.33 $ 10.66 $ 11.40 $ 11.05
- ------------------------------------------------------------------------------------------------------------------
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge. For a description of front-end sales charges, see
note 1 in Notes to Financial Statements.
(2) Class C has a contingent deferred sales charge. For a description of this
sales charge, see notes 1 and 3 in Notes to Financial Statements.
The accompanying notes are an integral part of the financial statements.
88
<Page>
<Table>
<Caption>
MINNESOTA
COLORADO INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated securities, at value* $ 26,010 $ 726,680 $ 267,426 $ 175,033 $ 194,668
Investments in affiliated securities, at value** 1,119 611 -- -- --
Cash -- -- -- 91 6
Dividends and interest receivable 355 9,492 2,900 2,539 2,558
Receivable for investment securities sold 166 862 -- 8,481 --
Capital shares sold 5 631 21 9 37
Prepaid expenses and other assets 5 18 9 9 8
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 27,660 738,294 270,356 186,162 197,277
================================================================================================================================
LIABILITIES:
Bank overdraft -- -- -- 91 --
Payable for investment securities purchased -- 4,352 -- -- 542
Capital shares redeemed -- 2,293 192 208 94
Payable for advisory, co-administration, and custodian fees 12 420 158 112 121
Payable for distribution and shareholder servicing fees 5 4 4 26 6
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 17 7,069 354 437 763
================================================================================================================================
NET ASSETS $ 27,643 $ 731,225 $ 270,002 $ 185,725 $ 196,514
================================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 24,859 $ 671,628 $ 251,713 $ 173,619 $ 183,756
Undistributed net investment income 74 584 125 474 84
Accumulated net realized gain (loss) on investments 187 152 491 1,349 494
Net unrealized appreciation of investments 2,523 58,861 17,673 10,283 12,180
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 27,643 $ 731,225 $ 270,002 $ 185,725 $ 196,514
================================================================================================================================
*Investments in unaffiliated securities, at cost $ 23,487 $ 667,819 $ 249,753 $ 164,750 $ 182,488
**Investments in affiliated securities, at cost 1,119 611 -- -- --
CLASS A:
Net assets $ 13,843 $ 34,231 $ 31,044 $ 125,916 $ 28,141
Shares issued and outstanding ($0.0001 par
value - 2 billion authorized) 1,196 3,030 2,973 11,101 2,275
Net asset value and redemption price per share $ 11.57 $ 11.30 $ 10.44 $ 11.34 $ 12.37
Maximum offering price per share (1) $ 12.08 $ 11.56 $ 10.68 $ 11.84 $ 12.92
CLASS C:
Net assets $ 4,284 -- -- $ 11,951 $ 279
Shares issued and outstanding ($0.0001 par
value - 2 billion authorized) 371 -- -- 1,057 22
Net asset value and redemption price per share (2) $ 11.56 -- -- $ 11.31 $ 12.35
Maximum offering price per share (1) $ 11.68 -- -- $ 11.41 $ 12.47
CLASS Y:
Net assets $ 9,516 $ 696,994 $ 238,958 $ 47,858 $ 168,094
Shares issued and outstanding ($0.0001 par
value - 2 billion authorized) 821 61,806 22,987 4,223 13,583
Net asset value, offering price, and redemption
price per share $ 11.59 $ 11.28 $ 10.40 $ 11.33 $ 12.38
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
OREGON
NEBRASKA OHIO INTERMEDIATE SHORT
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated securities, at value* $ 33,521 $ 39,931 $ 151,142 $ 381,792 $ 488,268
Investments in affiliated securities, at value** 1,683 -- 830 15,013 2,816
Cash -- -- -- 490 3,197
Dividends and interest receivable 438 596 2,140 4,968 7,290
Receivable for investment securities sold -- -- 1,332 -- 7,142
Capital shares sold 58 19 902 2,480 97
Prepaid expenses and other assets 6 5 7 13 67
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 35,706 40,551 156,353 404,756 508,877
================================================================================================================================
LIABILITIES:
Bank overdraft -- -- -- -- --
Payable for investment securities purchased 1,012 -- 1,095 1,100 --
Capital shares redeemed 33 -- 733 103 113
Payable for advisory, co-administration, and custodian fees 14 22 91 186 297
Payable for distribution and shareholder servicing fees 1 -- 1 1 11
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,060 22 1,920 1,390 421
================================================================================================================================
NET ASSETS $ 34,646 $ 40,529 $ 154,433 $ 403,366 $ 508,456
================================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 32,689 $ 38,639 $ 143,476 $ 387,799 $ 468,389
Undistributed net investment income 40 2 67 48 461
Accumulated net realized gain (loss) on investments 123 369 1,108 2,432 4,831
Net unrealized appreciation of investments 1,794 1,519 9,782 13,087 34,775
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 34,646 $ 40,529 $ 154,433 $ 403,366 $ 508,456
================================================================================================================================
*Investments in unaffiliated securities, at cost $ 31,727 $ 38,412 $ 141,360 $ 368,705 $ 453,493
**Investments in affiliated securities, at cost 1,683 -- 830 15,013 2,816
CLASS A:
Net assets $ 4,869 $ 849 $ 8,189 $ 6,448 $ 42,942
Shares issued and outstanding ($0.0001 par
value - 2 billion authorized) 457 81 785 633 3,806
Net asset value and redemption price per share $ 10.66 $ 10.54 $ 10.43 $ 10.18 $ 11.28
Maximum offering price per share (1) $ 11.13 $ 11.01 $ 10.67 $ 10.41 $ 11.78
CLASS C:
Net assets $ 1,657 $ 215 -- -- $ 4,880
Shares issued and outstanding ($0.0001 par
value - 2 billion authorized) 157 20 -- -- 434
Net asset value and redemption price per share (2) $ 10.58 $ 10.44 -- -- $ 11.24
Maximum offering price per share (1) $ 10.69 $ 10.55 -- -- $ 11.35
CLASS Y:
Net assets $ 28,120 $ 39,465 $ 146,244 $ 396,918 $ 460,634
Shares issued and outstanding ($0.0001 par
value - 2 billion authorized) 2,639 3,741 14,018 38,987 40,787
Net asset value, offering price, and redemption
price per share $ 10.65 $ 10.55 $ 10.43 $ 10.18 $ 11.29
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
89
<Page>
STATEMENTS OF OPERATIONS For the fiscal year ended september 30, 2003, in
thousands
<Table>
<Caption>
CALIFORNIA COLORADO
ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest from unaffiliated securities $ 1,282 $ 2,344 $ 1,337 $ 3,327
Interest from affiliated securities 1 -- -- 11
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,283 2,344 1,337 3,338
==================================================================================================================
EXPENSES:
Investment advisory fees 134 248 136 360
Co-administration fees and expenses (including per
account transfer agency fees) 77 140 81 202
Custodian fees 3 5 3 7
Directors' fees -- 1 -- 1
Registration fees 7 2 3 3
Professional fees 1 2 1 3
Printing 1 2 1 2
Other 2 2 1 2
Distribution and shareholder servicing fees - Class A 35 11 30 56
Distribution and shareholder servicing fees - Class C 25 -- 11 --
- ------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 285 413 267 636
==================================================================================================================
Less: Fee Waivers (100) (58) (94) (99)
- ------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 185 355 173 537
==================================================================================================================
INVESTMENT INCOME - NET 1,098 1,989 1,164 2,801
- ------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS - NET:
Net realized gain on investments 99 161 186 9
Net realized loss on redemption in-kind -- -- -- --
Net increase from payment by affiliate and net losses
realized on the disposal of investments in violation of
restrictions (2) -- -- -- --
Net change in unrealized appreciation or depreciation
of investments (262) (843) (540) (128)
- ------------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS (163) (682) (354) (119)
==================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 935 $ 1,307 $ 810 $ 2,682
==================================================================================================================
</Table>
(1) Commenced operations on October 25, 2002.
(2) See note 6 in Notes to Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
90
<Page>
<Table>
<Caption>
MINNESOTA
COLORADO INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest from unaffiliated securities $ 1,488 $ 34,241 $ 12,649 $ 10,020 $ 9,059
Interest from affiliated securities 5 94 -- 4 1
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,493 34,335 12,649 10,024 9,060
=================================================================================================================================
EXPENSES:
Investment advisory fees 150 3,610 1,343 964 977
Co-administration fees and expenses (including per
account transfer agency fees) 86 2,020 752 541 548
Custodian fees 3 72 27 19 20
Directors' fees -- 11 4 3 3
Registration fees 4 7 -- 8 9
Professional fees 1 28 9 7 7
Printing 1 24 8 7 7
Other 2 16 7 9 5
Distribution and shareholder servicing fees - Class A 41 80 66 324 69
Distribution and shareholder servicing fees - Class C 42 -- -- 124 2
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 330 5,868 2,216 2,006 1,647
=================================================================================================================================
Less: Fee Waivers (113) (765) (297) (251) (209)
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 217 5,103 1,919 1,755 1,438
=================================================================================================================================
INVESTMENT INCOME - NET 1,276 29,232 10,730 8,269 7,622
- ---------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS - NET:
Net realized gain on investments 224 1,153 584 1,349 699
Net realized loss on redemption in-kind -- -- -- -- (102)
Net increase from payment by affiliate and net losses
realized on the disposal of investments in violation of
restrictions (2) -- -- -- -- --
Net change in unrealized appreciation or depreciation
of investments (518) 2,929 (1,539) (2,480) (482)
- ---------------------------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS (294) 4,082 (955) (1,131) 115
=================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 982 $ 33,314 $ 9,775 $ 7,138 $ 7,737
=================================================================================================================================
<Caption>
OREGON
NEBRASKA OHIO INTERMEDIATE SHORT
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND(1) TAX FREE FUND
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest from unaffiliated securities $ 1,573 $ 1,681 $ 7,004 $ 12,102 $ 27,006
Interest from affiliated securities 5 6 5 109 60
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,578 1,687 7,009 12,211 27,066
==================================================================================================================================
EXPENSES:
Investment advisory fees 171 197 775 1,705 2,624
Co-administration fees and expenses (including per
account transfer agency fees) 97 113 432 956 1,467
Custodian fees 4 4 15 34 53
Directors' fees 1 -- 2 5 8
Registration fees 4 -- 1 -- 10
Professional fees 1 15 5 13 18
Printing 1 1 5 11 20
Other 2 2 5 5 14
Distribution and shareholder servicing fees - Class A 11 1 20 5 108
Distribution and shareholder servicing fees - Class C 13 1 -- -- 61
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 305 334 1,260 2,734 4,383
==================================================================================================================================
Less: Fee Waivers (114) (135) (163) (686) (562)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 191 199 1,097 2,048 3,821
==================================================================================================================================
INVESTMENT INCOME - NET 1,387 1,488 5,912 10,163 23,245
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS - NET:
Net realized gain on investments 123 369 1,155 2,432 4,886
Net realized loss on redemption in-kind -- -- -- -- --
Net increase from payment by affiliate and net losses
realized on the disposal of investments in violation of
restrictions (2) -- -- -- -- --
Net change in unrealized appreciation or depreciation
of investments (212) (413) (1,811) 13,087 (6,702)
- ----------------------------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS (89) (44) (656) 15,519 (1,816)
==================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,298 $ 1,444 $ 5,256 $ 25,682 $ 21,429
==================================================================================================================================
</Table>
91
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
CALIFORNIA
ARIZONA INTERMEDIATE
TAX FREE FUND TAX FREE FUND
- --------------------------------------------------------------------------------------------------------------------
10/01/02 10/01/01 10/01/02 10/01/01
TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02
- --------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income - net $ 1,098 $ 958 $ 1,989 $ 1,970
Net realized gain (loss) on investments 99 78 161 179
Net change in unrealized appreciation or depreciation
of investments (262) 846 (843) 1,625
- --------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 935 1,882 1,307 3,774
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (551) (520) (174) (173)
Class C (88) (107) -- --
Class Y (443) (334) (1,791) (1,803)
Net realized gain on investments:
Class A (32) (20) (10) --
Class C (6) (4) -- --
Class Y (29) (10) (93) --
Return of capital:
Class A -- -- -- --
Class Y -- -- -- --
- --------------------------------------------------------------------------------------------------------------------
Total distributions (1,149) (995) (2,068) (1,976)
====================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 5,152 3,094 1,412 1,679
Reinvestment of distributions 548 509 145 125
Payments for redemptions (6,083) (5,594) (2,080) (504)
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A
transactions (383) (1,991) (523) 1,300
- --------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 385 1,205 -- --
Reinvestment of distributions 90 108 -- --
Payments for redemptions (1,494) (522) -- --
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C
transactions (1,019) 791 -- --
- --------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 3,295 5,213 4,535 5,825
Reinvestment of distributions 37 7 42 8
Payments for redemptions (4,666) (724) (4,513) (5,888)
Shares issued in connection with the acquisition of
Common Trust Fund net assets -- -- -- --
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y
transactions (1,334) 4,496 64 (55)
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions (2,736) 3,296 (459) 1,245
- --------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (2,950) 4,183 (1,220) 3,043
NET ASSETS AT BEGINNING OF PERIOD 25,979 21,796 50,082 47,039
====================================================================================================================
NET ASSETS AT END OF PERIOD $ 23,029 $ 25,979 $ 48,862 $ 50,082
====================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT
INCOME AT END OF PERIOD $ 33 $ 17 $ 36 $ 12
====================================================================================================================
</Table>
(1) See note 4 in Notes to Financial Statements for additional Information.
The accompanying notes are an integral part of the financial statements.
92
<Page>
<Table>
<Caption>
COLORADO
CALIFORNIA INTERMEDIATE
TAX FREE FUND TAX FREE FUND
- ----------------------------------------------------------------------------------------------------------------------
10/01/02 10/01/01 10/01/02 10/01/01
TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02
- ----------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income - net $ 1,164 $ 1,163 $ 2,801 $ 2,682
Net realized gain (loss) on investments 186 159 9 113
Net change in unrealized appreciation or depreciation
of investments (540) 975 (128) 1,672
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 810 2,297 2,682 4,467
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (492) (705) (879) (512)
Class C (41) (29) -- --
Class Y (632) (421) (2,017) (2,072)
Net realized gain on investments:
Class A (76) (84) -- --
Class C (7) (3) -- --
Class Y (77) (33) -- --
Return of capital:
Class A -- -- -- --
Class Y -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Total distributions (1,325) (1,275) (2,896) (2,584)
======================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 1,401 1,655 19,547 11,043
Reinvestment of distributions 481 698 681 338
Payments for redemptions (3,414) (8,044) (12,878) (4,889)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A
transactions (1,532) (5,691) 7,350 6,492
- ----------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 153 1,180 -- --
Reinvestment of distributions 47 32 -- --
Payments for redemptions (189) (789) -- --
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C
transactions 11 423 -- --
- ----------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 7,475 5,495 10,796 12,937
Reinvestment of distributions 51 12 11 --
Payments for redemptions (3,925) (851) (11,176) (13,897)
Shares issued in connection with the acquisition of
Common Trust Fund net assets -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y
transactions 3,601 4,656 (369) (960)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions 2,080 (612) 6,981 5,532
- ----------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,565 410 6,767 7,415
NET ASSETS AT BEGINNING OF PERIOD 25,922 25,512 63,642 56,227
======================================================================================================================
NET ASSETS AT END OF PERIOD $ 27,487 $ 25,922 $ 70,409 $ 63,642
======================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT
INCOME AT END OF PERIOD $ 33 $ 35 $ 63 $ 158
======================================================================================================================
<Caption>
COLORADO INTERMEDIATE
TAX FREE FUND TAX FREE FUND
- -------------------------------------------------------------------------------------------------------------------
10/01/02 10/01/01 10/01/02 10/01/01
TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02
- -------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income - net $ 1,276 $ 1,254 $ 29,232 $ 19,860
Net realized gain (loss) on investments 224 (37) 1,153 1,115
Net change in unrealized appreciation or depreciation
of investments (518) 1,598 2,929 17,459
- -------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 982 2,815 33,314 38,434
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (673) (866) (1,224) (952)
Class C (159) (98) -- --
Class Y (415) (279) (27,420) (19,122)
Net realized gain on investments:
Class A -- (12) -- --
Class C -- (1) -- --
Class Y -- (3) -- --
Return of capital:
Class A -- -- -- (67)
Class Y -- -- -- (1,095)
- -------------------------------------------------------------------------------------------------------------------
Total distributions (1,247) (1,259) (28,644) (21,236)
======================================================================================== ==========================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 1,122 2,520 15,542 12,166
Reinvestment of distributions 625 770 935 750
Payments for redemptions (7,321) (5,216) (12,029) (7,229)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A
transactions (5,574) (1,926) 4,448 5,687
- ---------------------------------------------------------------------------------------- --------------------------
Class C:
Proceeds from sales 1,375 2,026 -- --
Reinvestment of distributions 141 93 -- --
Payments for redemptions (934) (277) -- --
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C
transactions 582 1,842 -- --
- ---------------------------------------------------------------------------------------- --------------------------
Class Y:
Proceeds from sales 1,670 8,424 133,415 115,817
Reinvestment of distributions 14 6 1,827 1,823
Payments for redemptions (1,366) (1,491) (141,567) (107,074)
Shares issued in connection with the acquisition of
Common Trust Fund net assets -- -- 213,002 --
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y
transactions 318 6,939 206,677 10,566
- ---------------------------------------------------------------------------------------- --------------------------
Increase (decrease) in net assets from capital share
transactions (4,674) 6,855 211,125 16,253
- -------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (4,939) 8,411 215,795 33,451
NET ASSETS AT BEGINNING OF PERIOD 32,582 24,171 515,430 481,979
===================================================================================================================
NET ASSETS AT END OF PERIOD $ 27,643 $ 32,582 $ 731,225 $ 515,430
===================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT
INCOME AT END OF PERIOD $ 74 $ 45 $ 584 $ (4)
===================================================================================================================
<Caption>
MINNESOTA
INTERMEDIATE
TAX FREE FUND
- ----------------------------------------------------------------------------------------
10/01/02 10/01/01
TO TO
9/30/03 9/30/02
- ----------------------------------------------------------------------------------------
OPERATIONS:
Investment income - net $ 10,730 $ 11,614
Net realized gain (loss) on investments 584 664
Net change in unrealized appreciation or depreciation
of investments (1,539) 6,657
- ----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 9,775 18,935
- ----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (1,050) (642)
Class C -- --
Class Y (10,004) (10,528)
Net realized gain on investments:
Class A (37) --
Class C -- --
Class Y (395) --
Return of capital:
Class A -- --
Class Y -- --
- ----------------------------------------------------------------------------------------
Total distributions (11,486) (11,170)
========================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 20,400 8,163
Reinvestment of distributions 775 390
Payments for redemptions (9,945) (1,625)
- ----------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A
transactions 11,230 6,928
- ----------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ----------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C
transactions -- --
- ----------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 39,846 27,781
Reinvestment of distributions 331 275
Payments for redemptions (51,205) (39,585)
Shares issued in connection with the acquisition of
Common Trust Fund net assets -- --
- ----------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y
transactions (11,028) (11,529)
- ----------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions 202 (4,601)
- ----------------------------------------------------------------------------------------
Total increase (decrease) in net assets (1,509) 3,164
NET ASSETS AT BEGINNING OF PERIOD 271,511 268,347
========================================================================================
NET ASSETS AT END OF PERIOD $ 270,002 $ 271,511
========================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT
INCOME AT END OF PERIOD $ 125 $ 449
========================================================================================
</Table>
93
<Page>
<Table>
<Caption>
MINNESOTA MISSOURI
TAX FREE FUND TAX FREE FUND
- ------------------------------------------------------------------------------------------------------------------
10/01/02 10/01/01 10/01/02 10/01/01
TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income - net $ 8,269 $ 7,951 $ 7,622 $ 6,539
Net realized gain on investments 1,349 483 699 1,082
Net realized loss on redemption in-kind -- -- (102) --
Net increase from payment by affiliate and net losses
realized on the disposal of investments in
violation of restrictions (2) -- -- -- --
Net change in unrealized appreciation or depreciation of
investments (2,480) 5,644 (482) 5,188
- ------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 7,138 14,078 7,737 12,809
- ------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (5,192) (5,320) (1,017) (917)
Class C (450) (364) (8) --
Class Y (2,153) (2,297) (6,513) (5,848)
Net realized gain on investments:
Class A (307) (152) (138) (73)
Class C (28) (9) (1) --
Class Y (121) (65) (721) (472)
Return of capital:
Class A -- -- -- --
Class Y -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Total distributions (8,251) (8,207) (8,398) (7,310)
- ------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (3):
Class A:
Proceeds from sales 17,441 41,019 6,019 4,237
Reinvestment of distributions 5,120 5,167 655 592
Payments for redemptions (31,535) (21,731) (4,745) (1,773)
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A
transactions (8,974) 24,455 1,929 3,056
- ------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 3,135 5,653 251 21
Reinvestment of distributions 446 352 8 --
Payments for redemptions (3,279) (1,035) (2) --
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C
transactions 302 4,970 257 21
- ------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 5,315 13,298 19,318 33,932
Reinvestment of distributions 266 300 363 227
Payments for redemptions (12,019) (9,666) (26,019) (26,162)
Shares issued in connection with the acquisition of
Common Trust Fund net assets -- -- 32,466 --
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y
transactions (6,438) 3,932 26,128 7,997
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions (15,110) 33,357 28,314 11,074
- ------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (16,223) 39,228 27,653 16,573
NET ASSETS AT BEGINNING OF PERIOD 201,948 162,720 168,861 152,288
==================================================================================================================
NET ASSETS AT END OF PERIOD $ 185,725 $ 201,948 $ 196,514 $ 168,861
==================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 474 $ -- $ 84 $ --
==================================================================================================================
</Table>
(1) Commencement of operations.
(2) See note 6 in Notes to Financial Statements for additional information.
(3) See note 4 in Notes to Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
94
<Page>
<Table>
<Caption>
NEBRASKA OHIO
TAX FREE FUND TAX FREE FUND
- ------------------------------------------------------------------------------------------------------------------
10/01/02 10/01/01 10/01/02 4/30/02 (1)
TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income - net $ 1,387 $ 1,254 $ 1,488 $ 531
Net realized gain on investments 123 44 369 17
Net realized loss on redemption in-kind -- -- -- --
Net increase from payment by affiliate and net losses
realized on the disposal of investments in
violation of restrictions (2) -- -- -- --
Net change in unrealized appreciation or depreciation of
investments (212) 1,520 (413) 1,932
- ------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,298 2,818 1,444 2,480
- ------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (173) (203) (20) (3)
Class C (43) (21) (4) --
Class Y (1,145) (1,016) (1,462) (545)
Net realized gain on investments:
Class A (3) -- -- --
Class C (1) -- -- --
Class Y (21) -- -- --
Return of capital:
Class A -- -- -- --
Class Y -- -- -- (5)
- ------------------------------------------------------------------------------------------------------------------
Total distributions (1,386) (1,240) (1,486) (553)
- ------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (3):
Class A:
Proceeds from sales 1,001 720 439 435
Reinvestment of distributions 110 129 9 3
Payments for redemptions (1,117) (1,271) (60) --
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A
transactions (6) (422) 388 438
- ------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 785 711 213 1
Reinvestment of distributions 38 20 1 --
Payments for redemptions (151) (18) -- --
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C
transactions 672 713 214 1
- ------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 4,416 6,896 7,072 40,931
Reinvestment of distributions 52 29 203 71
Payments for redemptions (3,634) (3,319) (5,843) (4,831)
Shares issued in connection with the acquisition of
Common Trust Fund net assets -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y
transactions 834 3,606 1,432 36,171
- ------------------------------------------------------------------------ -----------------------------------------
Increase (decrease) in net assets from capital share
transactions 1,500 3,897 2,034 36,610
- ------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,412 5,475 1,992 38,537
NET ASSETS AT BEGINNING OF PERIOD 33,234 27,759 38,537 --
==================================================================================================================
NET ASSETS AT END OF PERIOD $ 34,646 $ 33,234 $ 40,529 $ 38,537
==================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 40 $ 14 $ 2 $ --
==================================================================================================================
<Caption>
OREGON
INTERMEDIATE SHORT
TAX FREE FUND TAX FREE FUND TAX FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
10/01/02 10/01/01 10/25/02(1) 10/01/02 10/01/01
TO TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/03 9/30/02
- --------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income - net $ 5,912 $ 6,418 $ 10,163 $ 23,245 $ 24,106
Net realized gain on investments 1,155 568 2,432 4,886 7,874
Net realized loss on redemption in-kind -- -- -- -- --
Net increase from payment by affiliate and net losses
realized on the disposal of investments in
violation of restrictions (2) -- -- -- -- --
Net change in unrealized appreciation or depreciation of
investments (1,811) 4,230 13,087 (6,702) 13,206
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 5,256 11,216 25,682 21,429 45,186
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (300) (267) (61) (1,818) (1,862)
Class C -- -- -- (235) (212)
Class Y (5,603) (6,184) (10,054) (21,211) (22,023)
Net realized gain on investments:
Class A (12) -- -- (486) --
Class C -- -- -- (70) --
Class Y (208) -- -- (5,440) --
Return of capital:
Class A -- -- -- -- --
Class Y -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions (6,123) (6,451) (10,115) (29,260) (24,097)
- --------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (3):
Class A:
Proceeds from sales 3,805 4,716 10,862 9,898 7,678
Reinvestment of distributions 186 147 55 2,040 1,655
Payments for redemptions (2,769) (3,525) (4,499) (12,077) (16,023)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A
transactions 1,222 1,338 6,418 (139) (6,690)
- --------------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- -- -- 454 1,459
Reinvestment of distributions -- -- -- 293 205
Payments for redemptions -- -- -- (1,953) (201)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C
transactions -- -- -- (1,206) 1,463
- --------------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 17,727 12,607 508,191 55,624 77,354
Reinvestment of distributions 319 299 183 1,557 903
Payments for redemptions (22,926) (19,479) (126,993) (86,596) (101,695)
Shares issued in connection with the acquisition of
Common Trust Fund net assets -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y
transactions (4,880) (6,573) 381,381 (29,415) (23,438)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions (3,658) (5,235) 387,799 (30,760) (28,665)
- --------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (4,525) (470) 403,366 (38,591) (7,576)
NET ASSETS AT BEGINNING OF PERIOD 158,958 159,428 -- 547,047 554,623
================================================================================================================================
NET ASSETS AT END OF PERIOD $ 154,433 $ 158,958 $ 403,366 $ 508,456 $ 547,047
================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 67 $ 58 $ 48 $ 461 $ 427
================================================================================================================================
</Table>
95
<Page>
Financial Highlights For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET
VALUE NET GAINS FROM NET DISTRIBUTIONS VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET END OF
OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS PERIOD
- -------------------------------------------------------------------------------------------------------------------------
ARIZONA TAX FREE FUND
Class A
2003 $ 11.41 $ 0.46 $ (0.06) $ (0.45) $ (0.03) $ 11.33
2002 10.99 0.48 0.44 (0.48) (0.02) 11.41
2001 10.45 0.55 0.53 (0.54) -- 10.99
2000 (1) 10.00 0.36 0.45 (0.36) -- 10.45
Class C
2003 $ 11.40 $ 0.42 $ (0.08) $ (0.40) $ (0.03) $ 11.31
2002 10.98 0.44 0.44 (0.44) (0.02) 11.40
2001 10.44 0.53 0.51 (0.50) -- 10.98
2000 (1) 10.00 0.34 0.44 (0.34) -- 10.44
Class Y
2003 $ 11.41 $ 0.48 $ (0.06) $ (0.47) $ (0.03) $ 11.33
2002 10.99 0.51 0.44 (0.51) (0.02) 11.41
2001 10.45 0.57 0.53 (0.56) -- 10.99
2000 (1) 10.00 0.37 0.45 (0.37) -- 10.45
CALIFORNIA INTERMEDIATE TAX FREE FUND
Class A
2003 $ 10.80 $ 0.41 $ (0.14) $ (0.41) $ (0.02) $ 10.64
2002 10.41 0.42 0.39 (0.42) -- 10.80
2001 10.02 0.44 0.39 (0.44) -- 10.41
2000 9.89 0.43 0.13 (0.43) -- 10.02
1999 10.37 0.42 (0.46) (0.41) (0.03) 9.89
Class Y
2003 $ 10.81 $ 0.43 $ (0.14) $ (0.42) $ (0.02) $ 10.66
2002 10.43 0.43 0.38 (0.43) -- 10.81
2001 10.04 0.44 0.39 (0.44) -- 10.43
2000 9.89 0.43 0.15 (0.43) -- 10.04
1999 10.36 0.42 (0.45) (0.41) (0.03) 9.89
CALIFORNIA TAX FREE FUND
Class A
2003 $ 11.63 $ 0.47 $ (0.16) $ (0.47) $ (0.07) $ 11.40
2002 11.17 0.48 0.50 (0.47) (0.05) 11.63
2001 10.66 0.52 0.50 (0.51) -- 11.17
2000 (1) 10.00 0.35 0.66 (0.35) -- 10.66
Class C
2003 $ 11.64 $ 0.43 $ (0.16) $ (0.43) $ (0.07) $ 11.41
2002 11.18 0.42 0.52 (0.43) (0.05) 11.64
2001 10.66 0.47 0.51 (0.46) -- 11.18
2000 (1) 10.00 0.32 0.66 (0.32) -- 10.66
Class Y
2003 $ 11.63 $ 0.49 $ (0.15) $ (0.50) $ (0.07) $ 11.40
2002 11.17 0.49 0.52 (0.50) (0.05) 11.63
2001 10.66 0.54 0.50 (0.53) -- 11.17
2000 (1) 10.00 0.37 0.65 (0.36) -- 10.66
COLORADO INTERMEDIATE TAX FREE FUND
Class A
2003 $ 11.12 $ 0.41 $ (0.02) $ (0.43) $ -- $ 11.08
2002 10.79 0.47 0.32 (0.46) -- 11.12
2001 10.28 0.46 0.52 (0.47) -- 10.79
2000 10.32 0.48 (0.04) (0.48) -- 10.28
1999 10.89 0.46 (0.55) (0.46) (0.02) 10.32
Class Y
2003 $ 11.10 $ 0.43 $ (0.03) $ (0.45) $ -- $ 11.05
2002 10.76 0.49 0.33 (0.48) -- 11.10
2001 10.26 0.48 0.49 (0.47) -- 10.76
2000 10.29 0.48 (0.03) (0.48) -- 10.26
1999 10.88 0.46 (0.57) (0.46) (0.02) 10.29
</Table>
(1) Commenced operations on February 1, 2000. All ratios for the period have
been annualized, except total return and portfolio turnover.
(2) 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
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
NET ASSETS EXPENSES TO INCOME NET ASSETS TO AVERAGE NET PORTFOLIO
TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
RETURN (2) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- ----------------------------------------------------------------------------------------------------------------------------------
ARIZONA TAX FREE FUND
Class A
2003 3.61% $ 11,928 0.75% 4.03% 1.09% 3.69% 37%
2002 8.69 12,413 0.75 4.40 1.37 3.78 30
2001 10.50 13,971 0.25 5.10 1.45 3.90 19
2000 (1) 8.21 9,668 0.25 5.31 1.80 3.76 27
Class C
2003 3.10% $ 1,857 1.15% 3.63% 1.84% 2.94% 37%
2002 8.28 2,910 1.15 4.00 2.12 3.03 30
2001 10.15 2,003 0.65 4.66 1.84 3.47 19
2000 (1) 7.88 22 0.65 4.95 2.72 2.88 27
Class Y
2003 3.86% $ 9,244 0.50% 4.28% 0.84% 3.94% 37%
2002 8.95 10,656 0.50 4.64 1.12 4.02 30
2001 10.76 5,822 -- 5.33 1.19 4.14 19
2000 (1) 8.36 2,670 -- 5.53 1.53 4.00 27
CALIFORNIA INTERMEDIATE
TAX FREE FUND
Class A
2003 2.58% $ 4,262 0.85% 3.86% 1.06% 3.65% 17%
2002 8.01 4,870 0.85 4.01 1.14 3.72 23
2001 8.41 3,392 0.70 4.25 1.21 3.74 12
2000 5.84 2,344 0.70 4.35 1.18 3.87 23
1999 (0.40) 2,042 0.70 4.19 1.17 3.72 9
Class Y
2003 2.83% $ 44,600 0.70% 4.02% 0.81% 3.91% 17%
2002 8.05 45,212 0.70 4.16 0.89 3.97 23
2001 8.39 43,647 0.70 4.26 0.96 4.00 12
2000 6.05 43,262 0.70 4.36 0.93 4.13 23
1999 (0.30) 41,469 0.70 4.11 0.92 3.89 9
CALIFORNIA TAX FREE FUND
Class A
2003 2.85% $ 11,143 0.75% 4.16% 1.08% 3.83% 20%
2002 9.10 12,954 0.75 4.26 1.31 3.70 33
2001 9.73 18,139 0.25 4.75 1.35 3.65 19
2000 (1) 10.23 6,029 0.25 5.20 1.85 3.60 12
Class C
2003 2.45% $ 1,101 1.15% 3.75% 1.83% 3.07% 20%
2002 8.69 1,115 1.15 3.86 2.06 2.95 33
2001 9.42 647 0.65 4.38 1.75 3.28 19
2000 (1) 9.95 34 0.65 5.12 2.25 3.52 12
Class Y
2003 3.11% $ 15,243 0.50% 4.40% 0.83% 4.07% 20%
2002 9.36 11,853 0.50 4.51 1.06 3.95 33
2001 9.99 6,726 -- 5.00 1.10 3.90 19
2000 (1) 10.38 4,766 -- 5.42 1.59 3.83 12
COLORADO INTERMEDIATE
TAX FREE FUND
Class A
2003 3.64% $ 22,555 0.85% 3.79% 1.06% 3.58% 14%
2002 7.56 15,244 0.85 4.48 1.11 4.22 15
2001 9.75 8,320 0.70 4.55 1.34 3.91 24
2000 4.40 3,485 0.70 4.66 1.25 4.11 42
1999 (0.88) 4,733 0.70 4.32 1.15 3.87 33
Class Y
2003 3.71% $ 47,854 0.70% 3.94% 0.81% 3.83% 14%
2002 7.83 48,398 0.70 4.60 0.86 4.44 15
2001 9.67 47,907 0.70 4.58 1.09 4.19 24
2000 4.51 52,885 0.70 4.66 1.00 4.36 42
1999 (1.07) 57,236 0.70 4.31 0.90 4.11 33
</Table>
97
<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 INVESTMENTS INCOME REALIZED GAINS CAPITAL
- -------------------------------------------------------------------------------------------------------------------------
COLORADO TAX FREE FUND
Class A
2003 $ 11.65 $ 0.50 $ (0.10) $ (0.48) $ -- $ --
2002 11.09 0.48 0.56 (0.47) (0.01) --
2001 10.42 0.54 0.66 (0.53) -- --
2000 (1) 10.00 0.35 0.42 (0.35) -- --
Class C
2003 $ 11.63 $ 0.44 $ (0.08) $ (0.43) $ -- $ --
2002 11.08 0.44 0.56 (0.44) (0.01) --
2001 10.41 0.49 0.67 (0.49) -- --
2000 (1) 10.00 0.34 0.41 (0.34) -- --
Class Y
2003 $ 11.67 $ 0.51 $ (0.09) $ (0.50) $ -- $ --
2002 11.10 0.48 0.60 (0.50) (0.01) --
2001 10.43 0.58 0.64 (0.55) -- --
2000 (1) 10.00 0.37 0.42 (0.36) -- --
INTERMEDIATE TAX FREE FUND
Class A
2003 $ 11.32 $ 0.44 $ (0.03) $ (0.43) $ -- $ --
2002 10.95 0.43 0.40 (0.43) -- (0.03)
2001 10.48 0.48 0.46 (0.47) -- --
2000 10.45 0.48 0.04 (0.49) -- --
1999 11.05 0.46 (0.55) (0.46) (0.05) --
Class Y
2003 $ 11.30 $ 0.46 $ (0.03) $ (0.45) $ -- $ --
2002 10.93 0.44 0.40 (0.44) -- (0.03)
2001 10.46 0.48 0.46 (0.47) -- --
2000 10.43 0.48 0.04 (0.49) -- --
1999 11.03 0.46 (0.55) (0.46) (0.05) --
MINNESOTA INTERMEDIATE TAX FREE FUND
Class A
2003 $ 10.51 $ 0.40 $ (0.04) $ (0.41) $ (0.02) $ --
2002 10.21 0.43 0.29 (0.42) -- --
2001 9.80 0.44 0.41 (0.44) -- --
2000 9.79 0.45 0.02 (0.45) (0.01) --
1999 10.29 0.43 (0.47) (0.43) (0.03) --
Class Y
2003 $ 10.46 $ 0.42 $ (0.03) $ (0.43) $ (0.02) $ --
2002 10.17 0.45 0.27 (0.43) -- --
2001 9.76 0.44 0.41 (0.44) -- --
2000 9.76 0.45 0.01 (0.45) (0.01) --
1999 10.26 0.43 (0.47) (0.43) (0.03) --
</Table>
(1) Commenced operations on February 1, 2000. All ratios for the period have
been annualized, except total return and portfolio turnover.
(2) 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.
98
<Page>
<Table>
<Caption>
NET ASSET RATIO OF
VALUE NET ASSETS EXPENSES TO
END OF TOTAL END OF AVERAGE
PERIOD RETURN (2) PERIOD (000) NET ASSETS
- --------------------------------------------------------------------------------------------------
COLORADO TAX FREE FUND
Class A
2003 $ 11.57 3.53% $ 13,843 0.75%
2002 11.65 9.72 19,633 0.75
2001 11.09 11.78 20,550 0.25
2000 (1) 10.42 7.80 8,068 0.25
Class C
2003 $ 11.56 3.23% $ 4,284 1.15%
2002 11.63 9.23 3,705 1.15
2001 11.08 11.41 1,698 0.65
2000 (1) 10.41 7.52 156 0.65
Class Y
2003 $ 11.59 3.78% $ 9,516 0.50%
2002 11.67 10.07 9,244 0.50
2001 11.10 12.02 1,923 --
2000 (1) 10.43 8.05 2,430 --
INTERMEDIATE TAX FREE FUND
Class A
2003 $ 11.30 3.74% $ 34,231 0.85%
2002 11.32 7.78 29,838 0.85
2001 10.95 9.19 23,236 0.70
2000 10.48 5.10 8,994 0.70
1999 10.45 (0.78) 10,713 0.70
Class Y
2003 $ 11.28 3.90% $ 696,994 0.70%
2002 11.30 7.95 485,592 0.70
2001 10.93 9.21 458,743 0.70
2000 10.46 5.11 375,279 0.70
1999 10.43 (0.79) 442,464 0.70
MINNESOTA INTERMEDIATE TAX FREE
FUND
Class A
2003 $ 10.44 3.55% $ 31,044 0.85%
2002 10.51 7.23 19,914 0.85
2001 10.21 8.85 12,408 0.70
2000 9.80 4.94 12,469 0.70
1999 9.79 (0.43) 14,629 0.70
Class Y
2003 $ 10.40 3.82% $ 238,958 0.70%
2002 10.46 7.31 251,597 0.70
2001 10.17 8.89 255,939 0.70
2000 9.76 5.04 244,353 0.70
1999 9.76 (0.44) 279,776 0.70
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
INVESTMENT AVERAGE INCOME
INCOME NET ASSETS TO AVERAGE NET PORTFOLIO
TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE
- --------------------------------------------------------------------------------------------------
COLORADO TAX FREE FUND
Class A
2003 4.23% 1.07% 3.91% 14%
2002 4.32 1.30 3.77 22
2001 5.03 1.42 3.86 23
2000 (1) 5.28 1.80 3.73 36
Class C
2003 3.83% 1.82% 3.16% 14%
2002 3.95 2.05 3.05 22
2001 4.61 1.82 3.44 23
2000 (1) 4.92 2.58 2.99 36
Class Y
2003 4.49% 0.82% 4.17% 14%
2002 4.59 1.05 4.04 22
2001 5.32 1.18 4.14 23
2000 (1) 5.47 1.53 3.94 36
INTERMEDIATE TAX FREE FUND
Class A
2003 3.91% 1.05% 3.71% 15%
2002 3.87 1.03 3.69 28
2001 4.43 1.13 4.00 12
2000 4.61 1.12 4.19 29
1999 4.31 1.12 3.89 23
Class Y
2003 4.05% 0.80% 3.95% 15%
2002 4.04 0.78 3.96 28
2001 4.43 0.87 4.26 12
2000 4.62 0.87 4.45 29
1999 4.31 0.87 4.14 23
MINNESOTA INTERMEDIATE TAX FREE
FUND
Class A
2003 3.85% 1.05% 3.65% 15%
2002 4.27 1.03 4.09 15
2001 4.38 1.13 3.95 13
2000 4.59 1.12 4.17 18
1999 4.30 1.12 3.88 12
Class Y
2003 4.01% 0.80% 3.91% 15%
2002 4.41 0.78 4.33 15
2001 4.38 0.88 4.20 13
2000 4.59 0.87 4.42 18
1999 4.28 0.87 4.11 12
</Table>
99
<Page>
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET
VALUE NET GAINS FROM NET DISTRIBUTIONS VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET END OF
OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS PERIOD
- --------------------------------------------------------------------------------------------------------------------
MINNESOTA TAX FREE FUND
Class A
2003 $ 11.39 $ 0.48 $ (0.05) $ (0.45) $ (0.03) $ 11.34
2002 11.06 0.47 0.34 (0.47) (0.01) 11.39
2001 10.64 0.53 0.43 (0.54) -- 11.06
2000 10.70 0.55 (0.06) (0.55) -- 10.64
1999 11.46 0.55 (0.69) (0.56) (0.06) 10.70
Class C
2003 $ 11.36 $ 0.43 $ (0.04) $ (0.41) $ (0.03) $ 11.31
2002 11.04 0.43 0.33 (0.43) (0.01) 11.36
2001 10.62 0.49 0.43 (0.50) -- 11.04
2000 10.69 0.53 (0.09) (0.51) -- 10.62
1999 (1) 11.38 0.37 (0.71) (0.35) -- 10.69
Class Y
2003 $ 11.38 $ 0.51 $ (0.05) $ (0.48) $ (0.03) $ 11.33
2002 11.05 0.49 0.35 (0.50) (0.01) 11.38
2001 10.63 0.55 0.44 (0.57) -- 11.05
2000 10.69 0.58 (0.07) (0.57) -- 10.63
1999 11.45 0.58 (0.69) (0.59) (0.06) 10.69
MISSOURI TAX FREE FUND (2)
Class A
2003 $ 12.47 $ 0.45 $ (0.04) $ (0.45) $ (0.06) $ 12.37
2002 12.05 0.46 0.47 (0.47) (0.04) 12.47
2001 (3) 11.54 0.46 0.50 (0.44) (0.01) 12.05
2000 (4) 11.31 0.48 0.23 (0.48) -- 11.54
1999 (5) 12.08 0.50 (0.74) (0.51) (0.02) 11.31
1998 (5) 11.87 0.52 0.21 (0.52) -- 12.08
Class C
2003 $ 12.46 $ 0.40 $ (0.04) $ (0.41) $ (0.06) $ 12.35
2002 12.05 0.41 0.48 (0.44) (0.04) 12.46
2001 (6) 12.03 -- 0.02 -- -- 12.05
Class Y
2003 $ 12.48 $ 0.49 $ (0.05) $ (0.48) $ (0.06) $ 12.38
2002 12.06 0.48 0.48 (0.50) (0.04) 12.48
2001 (3) 11.55 0.49 0.50 (0.47) (0.01) 12.06
2000 (4) 11.32 0.50 0.23 (0.50) -- 11.55
1999 (5) 12.08 0.53 (0.74) (0.53) (0.02) 11.32
1998 (5) 11.87 0.55 0.21 (0.55) -- 12.08
NEBRASKA TAX FREE FUND
Class A
2003 $ 10.70 $ 0.41 $ (0.04) $ (0.40) $ (0.01) $ 10.66
2002 10.20 0.41 0.49 (0.40) -- 10.70
2001 (7) 10.00 0.24 0.20 (0.24) -- 10.20
Class C
2003 $ 10.63 $ 0.36 $ (0.04) $ (0.36) $ (0.01) $ 10.58
2002 10.14 0.36 0.50 (0.37) -- 10.63
2001 (7) 10.00 0.20 0.17 (0.23) -- 10.14
Class Y
2003 $ 10.69 $ 0.43 $ (0.03) $ (0.43) $ (0.01) $ 10.65
2002 10.19 0.43 0.50 (0.43) -- 10.69
2001 (7) 10.00 0.26 0.19 (0.26) -- 10.19
</Table>
(1) Class of shares has been offered since February 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(2) The financial highlights for the Missouri Tax Free Fund as set forth herein
include the historical financial highlights of the Firstar Missouri
Tax-Exempt Bond Fund Class A shares and Class I shares. The assets of the
Firstar Missouri Tax-Exempt Bond Fund were acquired by Missouri Tax Free
Fund on September 24, 2001. In connection with such acquisition, Class A
shares and Class I shares of the Firstar Missouri Tax-Exempt Bond Fund were
exchanged for Class A shares and Class Y shares of Missouri Tax Free Fund,
respectively.
(3) For the period November 1, 2000 to September 30, 2001. Effective in 2001,
the Fund's fiscal year end changed from October 31 to September 30. 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.
100
<Page>
<Table>
<Caption>
RATIO OF NET
RATIO OF INVESTMENT
NET ASSETS EXPENSES TO INCOME
TOTAL END OF AVERAGE TO AVERAGE
RETURN (8) PERIOD (000) NET ASSETS NET ASSETS
- ---------------------------------------------------------------------------------------------
MINNESOTA TAX FREE FUND
Class A
2003 3.90% $ 125,916 0.95% 4.25%
2002 7.23 135,607 0.95 4.22
2001 9.24 107,260 0.95 4.84
2000 4.75 93,995 0.95 5.22
1999 (1.31) 108,116 0.95 4.98
Class C
2003 3.51% $ 11,951 1.35% 3.85%
2002 7.10 11,703 1.35 3.80
2001 8.88 6,382 1.35 4.39
2000 4.25 2,037 1.35 4.83
1999 (1) (3.03) 1,682 1.35 4.70
Class Y
2003 4.16% $ 47,858 0.70% 4.50%
2002 7.84 54,638 0.70 4.47
2001 9.52 49,078 0.70 5.09
2000 5.00 40,860 0.70 5.49
1999 (1.07) 17,356 0.70 5.26
MISSOURI TAX FREE FUND (2)
Class A
2003 3.45% $ 28,141 0.95% 3.69%
2002 7.99 26,496 0.95 3.81
2001 (3) 8.44 22,573 0.94 4.23
2000 (4) 6.41 19,876 0.87 4.59
1999 (5) (2.09) 21,242 0.86 4.30
1998 (5) 6.31 23,611 0.86 4.38
Class C
2003 3.05% $ 279 1.35% 3.30%
2002 7.58 21 1.35 3.28
2001 (6) 0.17 -- -- --
Class Y
2003 3.71% $ 168,094 0.70% 3.94%
2002 8.25 142,344 0.70 4.06
2001 (3) 8.67 129,715 0.69 4.48
2000 (4) 6.60 126,896 0.67 4.79
1999 (5) (1.81) 111,842 0.66 4.51
1998 (5) 6.52 94,402 0.66 4.57
NEBRASKA TAX FREE FUND
Class A
2003 3.57% $ 4,869 0.75% 3.87%
2002 9.09 4,904 0.75 3.98
2001 (7) 4.48 5,090 0.55 4.12
Class C
2003 3.10% $ 1,657 1.15% 3.46%
2002 8.66 982 1.15 3.57
2001 (7) 3.71 226 0.95 3.73
Class Y
2003 3.82% $ 28,120 0.50% 4.11%
2002 9.37 27,348 0.50 4.22
2001 (7) 4.51 22,443 0.30 4.36
<Caption>
RATIO OF RATIO OF NET
EXPENSES TO INVESTMENT
AVERAGE INCOME
NET ASSETS TO AVERAGE NET PORTFOLIO
(EXCLUDING ASSETS (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- --------------------------------------------------------------------------------
MINNESOTA TAX FREE FUND
Class A
2003 1.06% 4.14% 23%
2002 1.09 4.08 26
2001 1.18 4.61 15
2000 1.17 5.00 34
1999 1.17 4.76 15
Class C
2003 1.81% 3.39% 23%
2002 1.84 3.31 26
2001 1.58 4.16 15
2000 1.77 4.41 34
1999 (1) 1.87 4.18 15
Class Y
2003 0.81% 4.39% 23%
2002 0.84 4.33 26
2001 0.93 4.86 15
2000 0.93 5.26 34
1999 0.87 5.09 15
MISSOURI TAX FREE FUND (2)
Class A
2003 1.06% 3.58% 20%
2002 1.06 3.70 25
2001 (3) 1.00 4.17 9
2000 (4) 0.98 4.48 3
1999 (5) 1.07 4.09 1
1998 (5) 1.06 4.18 6
Class C
2003 1.81% 2.84% 20%
2002 1.81 2.82 25
2001 (6) -- -- 9
Class Y
2003 0.81% 3.83% 20%
2002 0.81 3.95 25
2001 (3) 0.75 4.42 9
2000 (4) 1.08 4.38 3
1999 (5) 1.07 4.10 1
1998 (5) 1.06 4.17 6
NEBRASKA TAX FREE FUND
Class A
2003 1.07% 3.55% 15%
2002 1.29 3.44 35
2001 (7) 1.38 3.29 30
Class C
2003 1.82% 2.79% 15%
2002 2.04 2.68 35
2001 (7) 1.75 2.93 30
Class Y
2003 0.82% 3.79% 15%
2002 1.04 3.68 35
2001 (7) 1.13 3.53 30
</Table>
(4) For the period December 1, 1999 to October 31, 2000. Effective in 2000, the
fund's fiscal year end 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) Commenced operations on February 28, 2001. All ratios for the period have
been annualized, except total return and portfolio turnover.
(8) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
101
<Page>
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET
VALUE NET GAINS FROM NET DISTRIBUTIONS VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET END OF
OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
OHIO TAX FREE FUND
Class A
2003 $ 10.58 $ 0.36 $ (0.03) $ (0.37) $ -- $ 10.54
2002 (1) 10.00 0.15 0.59 (0.16) -- 10.58
Class C
2003 $ 10.57 $ 0.32 $ (0.12) $ (0.33) $ -- $ 10.44
2002 (1) 10.00 0.13 0.58 (0.14) -- 10.57
Class Y
2003 $ 10.57 $ 0.39 $ (0.02) $ (0.39) $ -- $ 10.55
2002 (1) 10.00 0.16 0.58 (0.17) -- 10.57
OREGON INTERMEDIATE TAX FREE FUND
Class A
2003 $ 10.49 $ 0.37 $ (0.03) $ (0.38) $ (0.02) $ 10.43
2002 10.18 0.40 0.31 (0.40) -- 10.49
2001 9.74 0.43 0.44 (0.43) -- 10.18
2000 9.72 0.43 0.02 (0.43) -- 9.74
1999 (2) 10.23 0.29 (0.51) (0.29) -- 9.72
Class Y
2003 $ 10.49 $ 0.40 $ (0.05) $ (0.39) $ (0.02) $ 10.43
2002 10.18 0.42 0.31 (0.42) -- 10.49
2001 9.74 0.43 0.44 (0.43) -- 10.18
2000 9.72 0.43 0.02 (0.43) -- 9.74
1999 10.24 0.43 (0.49) (0.43) (0.03) 9.72
SHORT TAX FREE FUND (3)
Class A
2003 $ 10.00 $ 0.26 $ 0.19 $ (0.27) $ -- $ 10.18
Class Y
2003 $ 10.00 $ 0.28 $ 0.18 $ (0.28) $ -- $ 10.18
TAX FREE FUND (4)
Class A
2003 $ 11.44 $ 0.47 $ (0.03) $ (0.47) $ (0.13) $ 11.28
2002 10.99 0.47 0.44 (0.46) -- 11.44
2001 (5) 10.53 0.42 0.43 (0.39) -- 10.99
2000 (6) 10.20 0.40 0.34 (0.41) -- 10.53
1999 (7) 11.06 0.44 (0.75) (0.44) (0.11) 10.20
1998 (7) 11.11 0.48 0.33 (0.48) (0.38) 11.06
Class C
2003 $ 11.40 $ 0.42 $ (0.02) $ (0.43) $ (0.13) $ 11.24
2002 10.96 0.42 0.45 (0.43) -- 11.40
2001 (8) 10.93 0.01 0.02 -- -- 10.96
Class Y
2003 $ 11.45 $ 0.50 $ (0.03) $ (0.50) $ (0.13) $ 11.29
2002 11.00 0.49 0.45 (0.49) -- 11.45
2001 (5) 10.53 0.44 0.45 (0.42) -- 11.00
2000 (6) 10.21 0.42 0.33 (0.43) -- 10.53
1999 (7) 11.10 0.47 (0.78) (0.47) (0.11) 10.21
1998 (7) 11.15 0.50 0.33 (0.50) (0.38) 11.10
</Table>
(1) Commenced operations on April 30, 2002. All ratios for the period have been
annualized, except total return and portfolio turnover.
(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) Commenced operations on October 25, 2002. All ratios for the period have
been annualized, except total return and portfolio turnover.
(4) The financial highlights for the Tax Free Fund as set forth herein include
the historical financial highlights of the Firstar National Municipal Bond
Fund Class A shares and Class I shares. The assets of the Firstar National
Municipal Bond Fund were acquired by Tax Free Fund on September 24, 2001.
In connection with such acquisition, Class A shares and Class I shares of
the Firstar National Municipal Bond Fund were exchanged for Class A shares
and ClassY shares of Tax Free Fund, respectively. Historical per-share
amounts have been adjusted to reflect the conversion ratios utilized for the
merger of the Tax Free Fund and the Firstar National Municipal Bond Fund.
Firstar National Municipal Bond Fund is the accounting survivor.
The accompanying notes are an integral part of the financial statements.
102
<Page>
<Table>
<Caption>
RATIO OF NET
RATIO OF INVESTMENT
NET ASSETS EXPENSES TO INCOME
TOTAL END OF AVERAGE TO AVERAGE
RETURN (9) PERIOD (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------
OHIO TAX FREE FUND
Class A
2003 3.22% $ 849 0.75% 3.52%
2002 (1) 7.42 453 0.75 3.25
Class C
2003 1.95% $ 215 1.15% 3.08%
2002 (1) 7.13 1 1.15 3.01
Class Y
2003 3.65% $ 39,465 0.50% 3.78%
2002 (1) 7.41 38,083 0.50 3.74
OREGON INTERMEDIATE TAX FREE FUND
Class A
2003 3.31% $ 8,189 0.85% 3.67%
2002 7.23 7,030 0.85 3.95
2001 9.08 5,477 0.70 4.27
2000 4.79 3,303 0.70 4.47
1999 (2) (2.22) 2,005 0.70 4.37
Class Y
2003 3.46% $ 146,244 0.70% 3.82%
2002 7.39 151,928 0.70 4.10
2001 9.08 153,951 0.70 4.28
2000 4.78 160,124 0.70 4.47
1999 (0.66) 178,411 0.70 4.30
SHORT TAX FREE FUND (3)
Class A
2003 4.54% $ 6,448 0.75% 2.67%
Class Y
2003 4.66% $ 396,918 0.60% 3.00%
TAX FREE FUND (4)
Class A
2003 4.06% $ 42,942 0.95% 4.21%
2002 8.56 43,708 0.95 4.20
2001 (5) 8.22 48,769 1.16 4.27
2000 (6) 7.43 1,526 0.98 4.34
1999 (7) (2.87) 1,582 0.96 4.14
1998 (7) 7.56 1,162 0.85 4.18
Class C
2003 3.67% $ 4,880 1.35% 3.81%
2002 8.14 6,199 1.35 3.82
2001 (8) 0.27 4,494 1.04 5.61
Class Y
2003 4.31% $ 460,634 0.70% 4.46%
2002 8.84 497,140 0.70 4.47
2001 (5) 8.59 501,361 0.73 4.32
2000 (6) 7.63 253,803 0.78 4.54
1999 (7) (2.97) 326,840 0.76 4.33
1998 (7) 7.76 384,518 0.56 4.52
<Caption>
RATIO OF RATIO OF NET
EXPENSES TO INVESTMENT
AVERAGE INCOME
NET ASSETS TO AVERAGE NET PORTFOLIO
(EXCLUDING ASSETS (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------------
OHIO TAX FREE FUND
Class A
2003 1.09% 3.18% 22%
2002 (1) 1.23 2.77 3
Class C
2003 1.84% 2.39% 22%
2002 (1) 1.98 2.18 3
Class Y
2003 0.84% 3.44% 22%
2002 (1) 0.98 3.26 3
OREGON INTERMEDIATE TAX FREE FUND
Class A
2003 1.05% 3.47% 17%
2002 1.05 3.75 18
2001 1.13 3.84 20
2000 1.13 4.04 18
1999 (2) 1.12 3.95 13
Class Y
2003 0.80% 3.72% 17%
2002 0.80 4.00 18
2001 0.89 4.09 20
2000 0.88 4.29 18
1999 0.87 4.13 13
SHORT TAX FREE FUND (3)
Class A
2003 1.05% 2.37% 54%
Class Y
2003 0.80% 2.80% 54%
TAX FREE FUND (4)
Class A
2003 1.05% 4.11% 23%
2002 1.02 4.13 39
2001 (5) 1.18 4.25 3
2000 (6) 1.09 4.23 4
1999 (7) 1.16 3.94 --
1998 (7) 1.16 3.87 18
Class C
2003 1.80% 3.36% 23%
2002 1.77 3.40 39
2001 (8) 1.04 5.61 3
Class Y
2003 0.80% 4.36% 23%
2002 0.77 4.40 39
2001 (5) 0.74 4.31 3
2000 (6) 1.19 4.13 4
1999 (7) 1.16 3.93 --
1998 (7) 1.16 3.92 18
</Table>
(5) For the period November 1, 2000 to September 30, 2001. Effective in 2001,
the Fund's fiscal year end changed from October 31 to September 30. All
ratios for the period have been annualized, except total return and
portfolio turnover.
(6) For the period December 1, 1999 to October 31, 2000. All ratios for the
period have been annualized, except total return and portfolio turnover. The
Fund's fiscal year end changed from November 30 to October 31.
(7) For the fiscal year ended November 30.
(8) Class of shares has been offered since September 24, 2001. 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.
103
<Page>
NOTES TO Financial STATEMENTS September 30, 2003
1 > ORGANIZATION
The First American Arizona Tax Free Fund, California Intermediate Tax Free
Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund,
Colorado Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate
Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska
Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund, Short
Tax Free Fund, and Tax Free 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 investment management company. FAIF's articles of incorporation
permit the board of directors to create additional funds in the future.
Each of these Funds offers Class A and Class Y shares. Arizona Tax Free
Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free
Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund,
and Tax Free Fund also offer Class C shares. Class A shares of Arizona Tax
Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax
Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free
Fund, and Tax Free Fund are sold with a front-end sales charge of 4.25%.
Class A shares of California Intermediate Tax Free Fund, Colorado
Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota
Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short
Tax Free Fund are sold with a front-end sales charge of 2.25%. Class C
shares are sold with a front-end sales charge of 1.00% and are subject to a
contingent deferred sales charge for 18 months. Class Y shares have no
sales charge and are offered only to qualifying institutional investors and
certain other qualifying accounts.
The Funds' prospectuses provide a description of each Fund's investment
objective, policies and strategies. All classes of shares in 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 and each class has
exclusive voting rights on any matters relating to that class' servicing or
distribution arrangements.
2 > SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Funds are as follows:
SECURITY VALUATIONS - Security valuations for the Funds' investments are
furnished by independent pricing services that have been approved by the
Funds' board of directors. 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 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, the Funds held no
fair-valued securities. Debt obligations with 60 days or less remaining
until maturity may be valued at their amortized cost, which approximates
market value. Investments in open-end mutual funds are valued at the
respective net asset value of each underlying fund, determined at the close
of the New York Stock Exchange (generally 3:00 p.m. central time) on the
valuation date.
SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security
transactions on the trade date of the security purchase or sale. Interest
income, including amortization of bond premium and discount, is recorded on
an accrual basis. Security gains and losses are determined on the basis of
identified cost, which is the same basis used for federal income tax
purposes. Each Fund reserves the right to pay part or all of the proceeds
from a redemption request in a proportionate share of readily marketable
securities in the Fund instead of cash. The resulting gain/loss is
calculated as the difference between the fair value and the underlying cost
of the security on the transaction date.
DISTRIBUTIONS TO SHAREHOLDERS - Distributions from net investment income
are declared and paid monthly. Any net realized capital gains on sales of a
Fund's securities are distributed to shareholders at least annually.
104
<Page>
EXPENSES - Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses are generally
allocated to the Funds on the basis of relative net assets of all funds
within the First American Fund complex. Class specific expenses, such as
12b-1 fees, are borne by that class. Income, other expenses, and realized
and unrealized gains and losses of a Fund are allocated to each respective
class in proportion to the relative net assets of each class.
FEDERAL TAXES - 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 redemptions
in-kind and income related to advisor reimbursements. To the extent these
differences are permanent, reclassifications are made to the appropriate
equity accounts in the period that the difference arises.
On the Statements of Assets and Liabilities, the following
reclassifications were made (000):
<Table>
<Caption>
ACCUMULATED UNDISTRIBUTED
NET REALIZED NET INVESTMENT PORTFOLIO
FUND GAIN (LOSS) INCOME CAPITAL
--------------------------------------------------------------------------------------
California Tax Free Fund $ 1 $ (1) $ --
Missouri Tax Free Fund (102) -- 102
Tax Free Fund (53) 53 --
</Table>
The character of distributions made during the fiscal year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. In addition, due to the
timing of dividend distributions, the fiscal year in which the amounts are
distributed may differ from the year that the income or realized gains
(losses) were recorded by the Fund. The character of the distributions paid
during the fiscal years ended September 30, 2003 and 2002, was as follows
(000):
<Table>
<Caption>
2003
------------------------------------------------------------------------------------------------------------------
TAX EXEMPT ORDINARY LONG TERM
FUND INCOME INCOME GAIN TOTAL
------------------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund $ 1,078 $ 29 $ 42 $ 1,149
California Intermediate Tax Free Fund 1,963 11 94 2,068
California Tax Free Fund 1,164 85 76 1,325
Colorado Intermediate Tax Free Fund 2,877 19 -- 2,896
Colorado Tax Free Fund 1,237 10 -- 1,247
Intermediate Tax Free Fund 28,635 9 -- 28,644
Minnesota Intermediate Tax Free Fund 11,012 63 411 11,486
Minnesota Tax Free Fund 7,778 348 125 8,251
Missouri Tax Free Fund 7,534 83 781 8,398
Nebraska Tax Free Fund 1,361 -- 25 1,386
Ohio Tax Free Fund 1,486 -- -- 1,486
Oregon Intermediate Tax Free Fund 5,872 32 219 6,123
Short Tax Free Fund 10,115 -- -- 10,115
Tax Free Fund 23,221 43 5,996 29,260
</Table>
<Table>
<Caption>
2002
------------------------------------------------------------------------------------------------------------------
TAX EXEMPT ORDINARY LONG TERM RETURN OF
FUND INCOME INCOME GAIN CAPITAL TOTAL
------------------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund $ 952 $ 42 $ 1 $ -- $ 995
California Intermediate Tax Free Fund 1,966 10 -- 1,976
California Tax Free Fund 1,155 99 21 -- 1,275
Colorado Intermediate Tax Free Fund 2,462 122 -- -- 2,584
Colorado Tax Free Fund 1,220 32 7 -- 1,259
Intermediate Tax Free Fund 20,000 74 -- 1,162 21,236
Minnesota Intermediate Tax Free Fund 10,749 421 -- -- 11,170
Minnesota Tax Free Fund 7,945 36 226 -- 8,207
Missouri Tax Free Fund 6,741 23 546 -- 7,310
Nebraska Tax Free Fund 1,240 -- -- -- 1,240
Ohio Tax Free Fund 531 17 -- 5 553
Oregon Intermediate Tax Free Fund 6,451 -- -- -- 6,451
Tax Free Fund 24,041 56 -- -- 24,097
</Table>
105
<Page>
As of September 30, 2003, the components of accumulated earnings on a tax
basis were (000):
<Table>
<Caption>
ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND TOTAL
ORDINARY TAX EXEMPT LONG TERM POST-OCTOBER UNREALIZED ACCUMULATED
FUND INCOME INCOME CAPITAL GAINS LOSSES APPRECIATION EARNINGS
------------------------------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund $ 37 $ 33 $ 62 $ -- $ 1,721 $ 1,853
California Intermediate Tax Free Fund 78 36 74 -- 3,700 3,888
California Tax Free Fund -- 33 186 -- 2,004 2,223
Colorado Intermediate Tax Free Fund -- 63 -- (463) 5,317 4,917
Colorado Tax Free Fund 1 74 186 -- 2,523 2,784
Intermediate Tax Free Fund -- 587 152 -- 58,861 59,600
Minnesota Intermediate Tax Free Fund 29 124 463 -- 17,673 18,289
Minnesota Tax Free Fund 75 474 1,274 -- 10,283 12,106
Missouri Tax Free Fund -- 84 494 -- 12,180 12,758
Nebraska Tax Free Fund 29 40 94 -- 1,794 1,957
Ohio Tax Free Fund 183 2 186 -- 1,519 1,890
Oregon Intermediate Tax Free Fund 81 67 1,027 -- 9,782 10,957
Short Tax Free Fund 173 48 2,259 -- 13,087 15,567
Tax Free Fund 127 408 4,757 -- 34,775 40,067
</Table>
106
<Page>
As of September 30, 2003, the following Funds have capital loss
carryforwards (000):
<Table>
<Caption>
FUND AMOUNT EXPIRATION DATE
----------------------------------------------------------------
Colorado Intermediate Tax Free Fund $ 463 2008-2009
----------------------------------------------------------------
</Table>
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS - Delivery and payment for
securities that have been purchased by a Fund on a forward-commitment or
when-issued basis can take place up to a month or more after the
transaction date. During this period, such securities are subject to market
fluctuations and the Fund maintains, in a segregated account with its
custodian, assets with a market value equal to or greater than the amount
of its purchase commitments. The purchase of securities on a when-issued or
forward-commitment basis may increase the volatility of a Fund's net asset
value if the Fund makes such investments while remaining substantially
fully invested. At September 30, 2003, the following Funds had outstanding
when-issued commitments (000):
<Table>
<Caption>
FUND COST SEGREGATED ASSETS
------------------------------------------------------------------
Arizona Tax Free Fund $ 745 $ 886
Intermediate Tax Free Fund 1,596 16,877
Missouri Tax Free Fund 542 10,512
Nebraska Tax Free Fund 1,011 2,900
------------------------------------------------------------------
</Table>
INVERSE FLOATERS - As part of their investment strategy, the Funds may
invest in certain securities for which the potential income return is
inversely related to changes in a floating interest rate ("inverse
floaters"). In general, income on inverse floaters will decrease when
short-term interest rates increase and increase when short-term interest
rates decrease. Inverse floaters may be characterized as derivative
securities and may subject a Fund to the risks of reduced or eliminated
interest payments and losses of invested principal. In addition, inverse
floaters have the effect of providing investment leverage and, as a result,
the market value of such securities will generally be more volatile than
that of fixed-rate, tax-exempt securities. To the extent the Funds invest
in inverse floaters, the net asset value of the Funds' shares may be more
volatile than if the Funds did not invest in such securities. At September
30, 2003, the Tax Free Fund had investments in inverse floaters with a
value of $3,313,680, which represents 0.7% of the Fund's net assets.
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 remain in the Funds until
distributed in accordance with the Plan.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS - The
preparation of financial statements, in conformity with accounting
principles generally accepted in the United States, requires management to
make estimates and assumptions that affect the reported amount of 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"), U.S. Bancorp Asset Management, Inc. ("USBAM"), manages each
Fund's assets and furnishes related office facilities, equipment, research,
and personnel. The Agreement requires each Fund to pay USBAM a monthly fee
based upon average daily net assets. The fee for each Fund is equal to an
annual rate of 0.50% of the average daily net assets of the Fund. 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.
107
<Page>
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 FAIF. 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 net assets,
0.22% of the next $25 billion of the aggregate 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 the
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
USBAM and USBFS for the Funds included in this annual report were as
follows (000):
<Table>
<Caption>
FUND AMOUNT
----------------------------------------------------------
Arizona Tax Free Fund $ 73
California Intermediate Tax Free Fund 134
California Tax Free Fund 74
Colorado Intermediate Tax Free Fund 194
Colorado Tax Free Fund 81
Intermediate Tax Free Fund 1,952
Minnesota Intermediate Tax Free Fund 726
Minnesota Tax Free Fund 521
Missouri Tax Free Fund 528
Nebraska Tax Free Fund 92
Ohio Tax Free Fund 107
Oregon Intermediate Tax Free Fund 419
Short Tax Free Fund 921
Tax Free Fund 1,419
</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 distribution agreements with FAIF. Under the respective
distribution agreements, each of the Funds pays Quasar a monthly
distribution and/or shareholder servicing fee equal to an annual rate of
0.25% and 1.00% of each Fund's average daily net assets of the Class A
shares and Class C shares, respectively. These fees may be used by Quasar
to provide compensation for sales support, distribution activities, and
shareholder servicing activities. The distributor is currently limiting its
fee to 0.15% of average daily net assets for Class A shares in the
California Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund,
Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Oregon
Intermediate Tax Free Fund, and Short Tax Free Fund. For Class C shares,
the distributor is currently limiting fees to 0.65% of average daily net
assets for Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax
Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax
Free Fund, Ohio Tax Free Fund, and Tax Free Fund. No distribution or
shareholder servicing fees are paid by Class Y shares.
For the fiscal year ended September 30, 2003, total distribution and
shareholder servicing fees waived by the distributor for the Funds included
in this annual report were as follows (000):
<Table>
<Caption>
FUND AMOUNT
----------------------------------------------------------
Arizona Tax Free Fund $ 9
California Intermediate Tax Free Fund 4
California Tax Free Fund 4
Colorado Intermediate Tax Free Fund 23
Colorado Tax Free Fund 15
Intermediate Tax Free Fund 32
Minnesota Intermediate Tax Free Fund 26
Minnesota Tax Free Fund 43
Missouri Tax Free Fund 1
Nebraska Tax Free Fund 4
Ohio Tax Free Fund --
Oregon Intermediate Tax Free Fund 8
Short Tax Free Fund 2
Tax Free Fund 21
</Table>
108
<Page>
Under the distribution 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
----------------------------------------------------------
Arizona Tax Free Fund $ 39
California Intermediate Tax Free Fund 6
California Tax Free Fund 33
Colorado Intermediate Tax Free Fund 29
Colorado Tax Free Fund 53
Intermediate Tax Free Fund 38
Minnesota Intermediate Tax Free Fund 34
Minnesota Tax Free Fund 308
Missouri Tax Free Fund 60
Nebraska Tax Free Fund 13
Ohio Tax Free Fund 2
Oregon Intermediate Tax Free Fund 10
Short Tax Free Fund 3
Tax Free Fund 112
</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") of 1.00% is
imposed on redemptions made in the Class C shares for the first eighteen
months. The CDSC 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
----------------------------------------------------------
Arizona Tax Free Fund $ 11
California Intermediate Tax Free Fund 31
California Tax Free Fund 31
Colorado Intermediate Tax Free Fund 250
Colorado Tax Free Fund 35
Intermediate Tax Free Fund 105
Minnesota Intermediate Tax Free Fund 156
Minnesota Tax Free Fund 155
Missouri Tax Free Fund 134
Nebraska Tax Free Fund 9
Ohio Tax Free Fund 16
Oregon Intermediate Tax Free Fund 39
Short Tax Free Fund 50
Tax Free Fund 61
</Table>
109
<Page>
4 > CAPITAL SHARE TRANSACTIONS
FAIF has 420 billion shares of $0.0001 par value capital stock authorized.
Capital share transactions for the Funds were as follows (000):
<Table>
<Caption>
ARIZONA CALIFORNIA COLORADO
TAX FREE INTERMEDIATE CALIFORNIA INTERMEDIATE
FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01
TO TO TO TO TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------------------
Class A:
Shares issued 459 279 133 162 124 149 1,771 1,023
Shares issued in lieu of cash distributions 49 46 14 12 43 63 62 31
Shares redeemed (543) (508) (197) (49) (303) (722) (1,168) (454)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS (35) (183) (50) 125 (136) (510) 665 600
==============================================================================================================================
Class C:
Shares issued 34 111 -- -- 13 105 -- --
Shares issued in lieu of cash distributions 8 10 -- -- 4 3 -- --
Shares redeemed (133) (48) -- -- (17) (70) -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS (91) 73 -- -- -- 38 -- --
==============================================================================================================================
Class Y:
Shares issued 293 470 428 561 660 492 985 1,194
Shares issued in lieu of cash distributions 3 1 4 1 5 1 1 --
Shares redeemed (414) (67) (429) (566) (347) (76) (1,016) (1,284)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS (118) 404 3 (4) 318 417 (30) (90)
==============================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES (244) 294 (47) 121 182 (55) 635 510
==============================================================================================================================
</Table>
<Table>
<Caption>
COLORADO MINNESOTA
TAX FREE INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI
FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -------------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01
TO TO TO TO TO TO TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02
- -------------------------------------------------------------------------------------------------------------------------------
Class A:
Shares issued 97 227 1,388 1,106 1,958 801 1,549 3,715 486 349
Shares issued in lieu of cash
distributions 55 70 83 69 75 38 457 469 54 49
Shares redeemed (642) (464) (1,077) (662) (956) (159) (2,807) (1,977) (389) (147)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS (490) (167) 394 513 1,077 680 (801) 2,207 151 251
===============================================================================================================================
Class C:
Shares issued 120 182 -- -- -- -- 279 514 20 2
Shares issued in lieu of cash
distributions 13 8 -- -- -- -- 40 32 -- --
Shares redeemed (80) (25) -- -- -- -- (292) (94) -- --
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 53 165 -- -- -- -- 27 452 20 2
===============================================================================================================================
Class Y:
Shares issued 146 751 11,900 10,625 3,848 2,730 470 1,205 1,571 2,815
Shares issued in lieu of cash
distributions 2 1 164 167 32 27 24 27 30 19
Shares redeemed (119) (133) (12,662) (9,800) (4,937) (3,891) (1,071) (873) (2,122) (2,187)
Shares issued in connection
with acquisitioin of Common
Trust Fund net assets -- -- 19,435 -- -- -- -- -- 2,697 --
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 29 619 18,837 992 (1,057) (1,134) (577) 359 2,176 647
===============================================================================================================================
NET INCREASE (DECREASE) IN
CAPITAL SHARES (408) 617 19,231 1,505 20 (454) (1,351) 3,018 2,347 900
===============================================================================================================================
</Table>
<Table>
<Caption>
OREGON
NEBRASKA OHIO INTERMEDIATE SHORT
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- ---------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 10/1/02 4/30/02(1) 10/1/02 10/1/01 10/25/02(1) 10/1/02 10/1/01
TO TO TO TO TO TO TO TO TO
9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/03 9/30/02
- ---------------------------------------------------------------------------------------------------------------------------
Class A:
Shares issued 94 72 43 43 365 466 1,072 885 697
Shares issued in lieu of
cash distributions 11 13 1 -- 18 14 5 184 151
Shares redeemed (107) (125) (6) -- (268) (348) (444) (1,083) (1,465)
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS (2) (40) 38 43 115 132 633 (14) (617)
===========================================================================================================================
Class C:
Shares issued 75 69 20 -- -- -- -- 40 133
Shares issued in lieu of
cash distributions 4 2 -- -- -- -- -- 26 19
Shares redeemed (14) (2) -- -- -- -- -- (176) (18)
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 65 69 20 -- -- -- (110) 134
===========================================================================================================================
Class Y:
Shares issued 420 678 680 4,073 1,712 1,243 51,494 4,962 7,040
Shares issued in lieu of
cash distributions 5 3 19 7 31 29 18 141 83
Shares redeemed (343) (326) (560) (478) (2,207) (1,914) (12,525) (7,734) (9,277)
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 82 355 139 3,602 (464) (642) 38,987 (2,631) (2,154)
===========================================================================================================================
NET INCREASE (DECREASE) IN
CAPITAL SHARES 145 384 197 3,645 (349) (510) 39,620 (2,755) (2,637)
===========================================================================================================================
</Table>
(1) Commencement of operations.
110
<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>
FUND PURCHASES SALES
------------------------------------------------------------
Arizona Tax Free Fund $ 9,512 $ 11,548
California Intermediate Tax Free Fund 8,230 8,382
California Tax Free Fund 6,955 5,383
Colorado Intermediate Tax Free Fund 16,583 9,112
Colorado Tax Free Fund 4,193 8,828
Intermediate Tax Free Fund 120,584 103,096
Minnesota Intermediate Tax Free Fund 39,844 40,592
Minnesota Tax Free Fund 42,508 60,713
Missouri Tax Free Fund 40,497 37,937
Nebraska Tax Free Fund 6,363 5,164
Ohio Tax Free Fund 10,513 8,328
Oregon Intermediate Tax Free Fund 25,703 31,318
Short Tax Free Fund 278,839 187,579
Tax Free Fund 118,263 146,023
</Table>
The aggregate gross unrealized appreciation and depreciation for securities
held by the Funds and the total cost of securities for federal income tax
purposes at September 30, 2003, were as follows (000):
<Table>
<Caption>
FEDERAL
AGGREGATE AGGREGATE INCOME
GROSS GROSS TAX
FUND APPRECIATION DEPRECIATION NET COST
----------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund $ 1,723 $ (2) $ 1,721 $ 20,579
California Intermediate Tax Free Fund 3,703 (3) 3,700 45,072
California Tax Free Fund 2,005 (1) 2,004 25,155
Colorado Intermediate Tax Free Fund 5,329 (12) 5,317 63,895
Colorado Tax Free Fund 2,535 (12) 2,523 24,606
Intermediate Tax Free Fund 59,423 (562) 58,861 668,430
Minnesota Intermediate Tax Free Fund 17,978 (305) 17,673 249,753
Minnesota Tax Free Fund 10,447 (164) 10,283 164,750
Missouri Tax Free Fund 12,207 (27) 12,180 182,488
Nebraska Tax Free Fund 1,802 (8) 1,794 33,410
Ohio Tax Free Fund 1,530 (11) 1,519 38,412
Oregon Intermediate Tax Free Fund 10,252 (470) 9,782 142,190
Short Tax Free Fund 13,094 (7) 13,087 383,718
Tax Free Fund 35,603 (828) 34,775 456,309
</Table>
6 > PAYMENTS MADE BY AFFILIATES
In October 2002, an ineligible security was purchased in the Tax Free
Fund. A loss occurred as a result of bringing the Tax Free Fund back
into compliance. USBAM fully reimbursed the Tax Free Fund for the loss on
this transaction. The amount of the loss and resulting reimbursement was
$52,643 or $0.001 per share based upon the shares outstanding as of
September 30, 2003, and had no impact on total return. In January 2003, an
ineligible security was purchased in the Missouri Tax Free Fund. No loss
was incurred as a result of bringing the Missouri Tax Free Fund back into
compliance, however USBAM reimbursed Missouri Tax Free Fund for the amount
of the commission. The amount of the reimbursement was $750 or $0.000 per
share based upon the shares outstanding as of September 30, 2003, and had
no impact on total return.
7 > CONCENTRATION OF CREDIT RISK
The Arizona Tax Free Fund, California Intermediate Tax Free Fund,
California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax
Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund,
Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and
Oregon Intermediate Tax Free Fund invest in debt instruments of municipal
issuers in specific states. Although these Funds monitor investment
concentration, the issuers' ability to meet their obligations may be
affected by economic developments in a specific state or region.
Additionally, each state has various guidelines relating to the tax
treatment of the income distributed from each Fund.
The rating of long-term securities as a percentage of the total value of
investments at September 30, 2003, is as follows:
<Table>
<Caption>
STANDARD & CALIFORNIA COLORADO
POOR'S/ ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE
MOODY'S TAX FREE TAX FREE TAX FREE TAX FREE
RATINGS: FUND FUND FUND FUND
---------------------------------------------------------------------
AAA/Aaa 64% 55% 56% 60%
AA/Aa 16 8 16 17
A/A 5 11 6 6
BBB/Baa 9 23 19 9
NR 6 3 3 8
--------------------------------------------------------
100% 100% 100% 100%
</Table>
<Table>
<Caption>
STANDARD & MINNESOTA
POOR'S/ COLORADO INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI
MOODY'S TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE
RATINGS: FUND FUND FUND FUND FUND
---------------------------------------------------------------------------------
AAA/Aaa 63% 62% 59% 44% 52%
AA/Aa 14 15 23 19 45
A/A 8 10 7 14 1
BBB/Baa 12 10 4 7 1
NR 3 3 7 16 1
--------------------------------------------------------------------
100% 100% 100% 100% 100%
</Table>
<Table>
<Caption>
STANDARD & OREGON
POOR'S/ NEBRASKA OHIO INTERMEDIATE SHORT
MOODY'S TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE
RATINGS: FUND FUND FUND FUND FUND
-------------------------------------------------------------------------------
AAA/Aaa 46% 61% 58% 45% 51%
AA/Aa 41 34 34 22 10
A/A 4 5 3 14 15
BBB/Baa -- -- 3 8 14
NR 9 -- 2 11 10
------------------------------------------------------------------
100% 100% 100% 100% 100%
-------------------------------------------------------------------------------
</Table>
Securities rated by only one agency are shown in that category. Securities
rated by both agencies are shown with their highest rating.
111
<Page>
8 > COMMON TRUST FUND CONVERSIONS
On October 25, 2002, the Intermediate Tax Free Fund acquired substantially
all of the assets of the Total Return Tax Exempt Bond Common Trust Fund
(sponsored by U.S. Bank) in exchange for Class Y shares of the Intermediate
Tax Free Fund. On November 22, 2002, the Missouri Tax Free Fund acquired
substantially all of the assets of the Common Fund M (Joplin) Common Trust
Fund (sponsored by U.S. Bank) in exchange for Class Y shares of the
Missouri Tax Free Fund. In addition, the First American Short Tax Free Fund
shell portfolio acquired substantially all of the assets of the
Intermediate Tax Exempt Bond Common Trust Fund (sponsored by U.S. Bank) in
exchange for Class Y of the Short Tax Free Fund. The following table
illustrates the specifics of the common trust fund conversions of certain
Funds included in this annual report (000):
<Table>
<Caption>
ACQUIRED SHARES ISSUED TO
FUNDS NET SHAREHOLDERS OF ACQUIRING FUND COMBINED TAX STATUS
ACQUIRED FUND ACQUIRING FUND ASSETS ACQUIRED FUND NET ASSETS NET ASSETS OF TRANSFER
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return Tax Exempt Bond Intermediate Tax Free $ 213,002(2) 19,435 $ 516,336 $ 729,338 Non-taxable
Common Trust Fund Fund - Class Y
Common Fund M (Joplin) Missouri Tax Free Fund $ 32,466(3) 2,697 $ 164,002 $ 196,468 Non-taxable
Common Trust Fund - Class Y
Intermediate Tax Exempt Bond Short Tax Free Fund $ 314,140 31,414 $ -- $ 314,140 Non-taxable
Common Trust Fund - Class Y (1)
</Table>
(1) Shell portfolio.
(2) Includes unrealized appreciation of $18,817.
(3) Includes unrealized appreciation of $1,187.
112
<Page>
NOTICE TO Shareholders September 30, 2003, unaudited
TAX NOTICE - THE INFORMATION SET FORTH BELOW IS FOR EACH FUND'S FISCAL YEAR
AS REQUIRED BY FEDERAL LAWS. MOST 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 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 gains, ordinary income, and tax exempt income with regard to
distributions paid during the year as follows:
<Table>
<Caption>
LONG TERM ORDINARY
CAPITAL GAINS INCOME RETURN TOTAL
DISTRIBUTIONS TAX EXEMPT DISTRIBUTIONS OF DISTRIBUTIONS
FUND (TAX BASIS) INTEREST (TAX BASIS) CAPITAL (TAX BASIS)
-----------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund 4% 94% 2% 0% 100%
California Intermediate Tax Free Fund 5 95 0 0 100
California Tax Free Fund 6 88 6 0 100
Colorado Intermediate Tax Free Fund 0 99 1 0 100
Colorado Tax Free Fund 0 99 1 0 100
Intermediate Tax Free Fund 0 100 0 0 100
Minnesota Intermediate Tax Free Fund 4 96 0 0 100
Minnesota Tax Free Fund 2 94 4 0 100
Missouri Tax Free Fund 9 90 1 0 100
Nebraska Tax Free Fund 2 98 0 0 100
Ohio Tax Free Fund 0 100 0 0 100
Oregon Intermediate Tax Free Fund 4 96 0 0 100
Short Tax Free Fund 0 100 0 0 100
Tax Free Fund 21 79 0 0 100
</Table>
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.
113
<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. Field III, Director Term expiring earlier of Senior Financial Advisor, First American Funds None
800 Nicollet Mall, death, resignation, Bemis Company, Inc. since Complex: twelve
Minneapolis, MN 55402 removal, 2002; Senior Vice registered investment
(1939) disqualification, or President, Chief companies, including
successor duly elected Financial Officer and sixty one portfolios
and qualified. Director Treasurer, Bemis, through
of FAIF, since September 2002
2003
Mickey P. Foret, Director Term expiring earlier of Consultant to Northwest First American Funds ADC
800 Nicollet Mall, death, resignation, Airlines, Inc. since Complex: twelve Telecommuni-
Minneapolis, MN 55402 removal, 2002; Executive Vice registered investment cations, Inc.,
(1946) disqualification, or President and Chief companies, including URS Corporation,
successor duly elected Financial Officer, sixty one portfolios Champion
and qualified. Director Northwest Airlines, Airlines, Inc.
of FAIF since September through 2002
2003
Roger A. Gibson, Director Term expiring earlier of Vice President, Cargo - First American Funds None
800 Nicollet Mall, death, resignation, United Airlines, since Complex: twelve
Minneapolis, MN 55402 removal, July 2001; Vice registered investment
(1946) disqualification, or President, North America companies, including
successor duly elected - Mountain Region, United sixty one portfolios
and qualified. Director Airlines, prior to July
of FAIF since October 2001
1997
Victoria J. Herget, Director Term expiring earlier of Investment consultant and First American Funds None
800 Nicollet Mall, death, resignation, non-profit board member Complex: twelve
Minneapolis, MN 55402 removal, since 2001; Managing registered investment
(1952) disqualification, or Director of Zurich companies, including
successor duly elected Scudder Investments sixty one portfolios
and qualified. Director through 2001
of FAIF since September
2003
Leonard W. Kedrowski, Director Term expiring earlier of Owner, Executive and First American Funds None
800 Nicollet Mall, death, resignation, Management Consulting, Complex: twelve
Minneapolis, MN 55402 removal, Inc., a management registered investment
(1941) disqualification, or consulting firm; former companies, including
successor duly elected Chief Executive Officer, sixty one portfolios
and qualified. Director Creative Promotions
of FAIF since November International, LLC, a
1993 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 of Retired; Director, First American Funds None
800 Nicollet Mall, death, resignation, President and Chief Complex: twelve
Minneapolis, MN 55402 removal, Executive Officer, registered investment
(1944) disqualification, or Weirton Steel through companies, including
successor duly elected 2001 sixty one portfolios
and qualified. Director
of FAIF since August 2001
</Table>
114
<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 of Owner and President, First American Funds None
800 Nicollet Mall, death, resignation, Excensus TM LLC, a Complex: twelve
Minneapolis, removal, consulting firm, since registered investment
MN 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 1991 Minnesota holding 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, earlier of death, Resources, Inc., a registered investment
MN 55402 (1944) resignation, removal, management consulting companies, including
disqualification, or firm; Executive sixty one portfolios
successor duly elected Consultant for State Farm
and qualified. Chair of Insurance Company
FAIF's Board since
September 1997; Director
of FAIF since August 1987
James M. Wade, Director Term expiring earlier of Owner and President, Jim First American Funds None
800 Nicollet Mall, death, resignation, Wade Homes, a Complex: twelve
Minneapolis, removal, homebuilding company, registered investment
MN 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.
115
<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 February
55402 (1962)* 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 Departement, 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 Management -
800 Nicollet Mall, September 2001 Americas, September 2000 to June 2001; Senior Vice
Minneapolis, MN President and Chief Investment Officer, ReliaStar
55402 (1960)* Financial Corp., January 1998 to September 2000
Jeffery M. Wilson, Vice Re-elected by the Board Senior Vice President of U.S. Bancorp Asset Management
U.S. Bancorp Asset President - annually; Vice President - since May 2001; prior thereto, Senior Vice President of
Management, Inc. Administration Administration of FAIF First American Asset Management
800 Nicollet Mall, since March 2000
Minneapolis, MN
55402 (1956)*
Robert H. Nelson, Treasurer Re-elected by the Board Senior Vice President of U.S. Bancorp Asset Management
U.S. Bancorp Asset annually; Treasurer of FAIF since May 2001; prior thereto, Senior Vice President of
Management, Inc. since March 2000 First American Asset Management since 1998 and of
800 Nicollet Mall, Firstar Investment & Research Management Company since
Minneapolis, MN February 2001; Senior Vice President of Piper Capital
55402 (1963)* Management Inc. through 1998
James D. Alt, Secretary Re-elected by the Board Partner, Dorsey & Whitney LLP, a Minneapolis-based law
50 South Sixth Street, annually; Assistant firm
Suite 1500, Secretary of FAIF from
Minneapolis, MN September 1998 through June
55402 (1951) 2002. Secretary of FAIF
since June 2002
Michael J. Radmer, Assistant Re-elected by the Board Partner, Dorsey & Whitney LLP, a Minneapolis-based law
50 South Sixth Street, Secretary annually; Assistant firm
Suite 1500, Secretary of FAIF since
Minneapolis, MN March 2000; Secretary of
55402 (1945) FAIF from September 1999
through March 2000
Kathleen L. Prudhomme, Assistant Re-elected by the Board Partner, Dorsey & Whitney LLP, a Minneapolis-based law
50 South Sixth Street, Secretary annually; Assistant firm
Suite 1500, Secretary of FAIF since
Minneapolis, MN September 1998
55402 (1953)
James R. Arnold, Assistant Re-elected by the Board Vice President, U.S. Bancorp Fund Services, LLC since
615 E. Michigan Street, Secretary annually; Assistant March 2002; Senior Administration Services Manager, UMB
Milwaukee, WI 53202 Secretary of FAIF since Fund Services, Inc. through March 2002
(1957)* June 2003
Richard J. Ertel, Assistant Re-elected by the Board Disclosure Counsel, U.S. Bancorp Asset Management, Inc.
U.S. Bancorp Asset Secretary annually; Assistant since May 2003; Associate Counsel, Hartford Life and
Management, Inc. Secretary of FAIF since Accident Insurance Company from April 2001 through May
800 Nicollet Mall, June 2003 2003; Attorney and Law Clerk, Fortis Financial Group,
Minneapolis, through March 2001
MN 55402 (1967)*
Douglas G. Hess, Assistant Re-elected by the Board Vice President, U.S. Bancorp Fund Services, LLC since
615 E. Michigan Street, Secretary annually; Assistant November 2002; prior thereto, Assistant Vice President,
Milwaukee, WI 53202 Secretary of FAIF since Fund Compliance Administrator, U.S. Bancorp Fund
(1967)* September 2001 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.
116
<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
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
Minneapolis, MN 55440-1330
In an attempt to reduce shareholder costs and help eliminate duplication, First
American Funds will try to limit their mailing to one report for each address
that lists one or more shareholders with the same last name. If you would like
additional copies, please call First American Investor Services at 800.677.FUND
or visit firstamericanfunds.com.
Bulk Rate
U.S. Postage
Paid
Mpls, MN
Permit No. 26388
USPS Master 881
Approved Poly
0212-03 11/2003 AR-TAXFREEINCOME
<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