<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-8194
FINANCIAL INVESTORS TRUST
-------------------------
(Exact name of registrant as specified in charter)
1625 Broadway, Suite 2200, Denver, Colorado 80202
-------------------------------------------------
(Address of principal executive offices) (Zip code)
Traci A. Thelen, Secretary
Financial Investors Trust
1625 Broadway, Suite 2200
Denver, CO 80202
----------------
(Name and address of agent for service)
Registrant's Telephone Number, including Area Code: (303) 623-2577
--------------
Date of fiscal year end: April 30
--------
Date of reporting period: October 31, 2003
----------------
<Page>
Item 1. REPORTS TO SHAREHOLDERS
<Page>
STATEMENT OF INVESTMENTS
U.S. TREASURY MONEY MARKET FUND
OCTOBER 31, 2003 (UNAUDITED)
<Table>
<Caption>
FACE VALUE VALUE*
- ---------- ------
U.S. TREASURY OBLIGATIONS 39.57%
U.S. Treasury Bill
$ 10,000,000 0.95%, 11/28/03 $ 9,993,402
U.S. Treasury Notes
4,000,000 3.63%, 3/31/04 4,038,267
7,000,000 2.88%, 6/30/04 7,079,301
1,000,000 2.25%, 7/31/04 1,008,634
--------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $22,119,604) 22,119,604
--------------
</Table>
<Table>
<Caption>
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS 60.36% COLLATERAL VALUE
- ------------------------------------------------------------------------------------------------------------
Agreement with ABN AMRO Bank and Bank of New
York (Tri-party), 1.01%, dated 10/31/03 and maturing
11/3/03, collateralized by Government National
Mortgage Association Pools# 2535, 2701, 6.50-7.00%
due 1/20/28-1/20/29 with a repurchase amount of
$12,000,337 12,000,000 $ 12,240,000
Agreement with Credit Suisse First Boston and
J.P. Morgan Chase & Co. (Tri-party), 0.97%, dated
10/31/03 and maturing 11/3/03, collateralized by
U.S. Treasury Notes, 1.50-2.88% due 6/30/04-7/31/05
with a repurchase amount of $2,238,060 2,238,000 2,283,631
Agreement with Deutsche Bank and Bank of New
York (Tri-party), 1.03%, dated 10/31/03 and maturing
11/3/03, collateralized by U.S. Treasury Note, 7.25%
due 8/15/04 with a repurchase amount of $12,000,343 12,000,000 12,240,159
Agreement with Lehman Brothers, Inc. and J.P. Morgan
Chase & Co. (Tri-party), 0.99%, dated 10/31/03 and
maturing 11/3/03, collateralized by U.S. Treasury Notes,
5.25-6.00% due 2/15/26-2/15/31 with a repurchase
amount of $2,500,069 2,500,000 2,551,748
Agreement with Merrill Lynch & Co., Inc. and J.P. Morgan
Chase & Co. (Tri-party), 1.00%, dated 10/31/03 and
maturing 11/3/03, collateralized by U.S. Treasury Strips,
due 2/15/10-8/15/13 and U.S. Treasury Strip Principals,
4.37-6.00% due 5/15/09-8/15/12 with a repurchase
amount of $2,500,069 2,500,000 2,553,767
</Table>
1
<Page>
<Table>
<Caption>
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS (CONTINUED) VALUE* COLLATERAL VALUE
- ------------------------------------------------------------------------------------------------------------
Agreement with UBS Warburg, LLC and J.P. Morgan
Chase & Co. (Tri-party), 0.95%, dated 10/31/03
and maturing 11/3/03, collateralized by
U.S. Treasury Bill, due 4/8/04 with a repurchase
amount of $2,500,066 $ 2,500,000 $ 2,553,534
-----------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $33,738,000) 33,738,000 34,422,839
-----------------------------------
TOTAL INVESTMENTS
(Cost $55,857,604) 99.93% $ 55,857,604
Other Assets in Excess of Liabilities 0.07% 38,472
---------------------------------
NET ASSETS 100.00% $ 55,896,076
=================================
</Table>
* See Note 1 to financial statements.
INCOME TAX INFORMATION:
Total cost for federal income tax purposes - $55,857,604
As of April 30, 2003, the U.S. Treasury Money Market Fund had a capital loss
carryover of $11,852 available to offset capital gains to the extent provided in
regulations, which will expire on April 30, 2004.
2
<Page>
STATEMENT OF INVESTMENTS
U.S. GOVERNMENT MONEY MARKET FUND
OCTOBER 31, 2003 (UNAUDITED)
<Table>
<Caption>
FACE VALUE VALUE*
- -------------- --------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS 54.20%
U.S. Treasury Notes
$ 5,000,000 3.25%, 5/31/04 $ 5,061,106
15,000,000 2.88%, 6/30/04 15,174,602
5,000,000 2.25%, 7/31/04 5,043,172
Federal Home Loan Bank
10,000,000 1.05%, 11/5/03 DN 9,999,415
7,170,000 2.50%, 11/14/03 7,171,383
30,000,000 1.07%, 1/21/04 DN 29,929,533
1,400,000 1.07%, 3/12/04 DN 1,394,586
Federal Home Loan Mortgage Corp.
8,000,000 1.08%, 12/5/03 DN 7,992,307
5,000,000 1.26%, 12/29/03 DN 4,990,131
4,000,000 1.25%, 2/26/04 DN 3,983,948
10,000,000 5.00%, 5/15/04 10,198,255
Federal National Mortgage Association
9,950,000 1.03%, 11/17/03 DN 9,946,010
25,000,000 1.08%, 12/10/03** 25,000,000
5,000,000 1.09%, 12/16/03 DN 4,993,472
10,000,000 1.28%, 12/23/03 DN 9,982,100
11,939,000 1.11%, 3/17/04 DN 11,889,289
5,000,000 1.08%, 6/25/04 DN 4,964,670
5,000,000 1.12%, 6/25/04 DN 4,963,375
--------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Cost $172,677,354) 172,677,354
--------------
</Table>
3
<Page>
<Table>
<Caption>
VALUE* COLLATERAL VALUE
---------------- ----------------
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS 45.72%
- ------------------------------------------------------------------------------------------------------------
Agreement with Bear Stearns Companies, Inc.,
1.05%, dated 10/31/03 and maturing 11/3/03,
collateralized by Federal National Mortgage
Association DN, due 1/7/04 with a repurchase
amount of $75,002,188 $ 75,000,000 $ 76,540,000
Agreement with Credit Suisse First Boston and
J.P. Morgan Chase & Co. (Tri-party), 1.00%,
dated 10/31/03 and maturing 11/3/03,
collateralized by Federal Home Loan Mortgage
Corp. Note, 4.65%, due 10/10/13, and Federal
National Mortgage Association Note, 4.10% due
8/27/08 with a repurchase amount of $70,691,964 70,690,000 72,106,076
-----------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $145,690,000) 145,690,000 148,646,076
-----------------------------------
TOTAL INVESTMENTS 99.92% $ 318,367,354
(Cost $318,367,354)
Other Assets in Excess of Liabilities 0.08% 262,076
---------------------------------
NET ASSETS 100.00% $ 318,629,430
=================================
</Table>
* See Note 1 to financial statements.
** Floating rate security - rate disclosed as of October 31, 2003. Maturity date
represents the next interest rate reset date.
DN - Discount Note
INCOME TAX INFORMATION:
Total cost for federal income tax purposes - $318,367,354
As of April 30, 2003, the U.S. Government Money Market Fund had capital loss
carryovers of $88,591, $2,673, and $1,193 available to offset capital gains to
the extent provided in regulations, which will expire on April 30, 2004, 2006,
and 2008, respectively.
4
<Page>
STATEMENT OF INVESTMENTS
PRIME MONEY MARKET FUND
OCTOBER 31, 2003 (UNAUDITED)
<Table>
<Caption>
FACE VALUE VALUE*
- -------------- --------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS 7.15%
Federal Home Loan Mortgage Corp., Discount Notes
$ 3,000,000 0.92%, 12/19/03 DN $ 2,996,461
Federal Home Loan Mortgage Corp.
3,000,000 5.00%, 5/15/04 3,059,476
Federal National Mortgage Association
2,000,000 1.08%, 5/28/04 DN 1,987,549
3,000,000 1.10%, 6/25/04 DN 2,978,416
--------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Cost $11,021,902) 11,021,902
--------------
</Table>
<Table>
<Caption>
DUE DATE DISCOUNT RATE OR COUPON RATE PRINCIPAL AMOUNT
- -------- ---------------------------- ----------------
BANK NOTES 4.54%
Comerica Bank
11/7/03 1.12%** $ 4,000,000 4,000,013
Wells Fargo Bank
11/24/03 1.06%** 3,000,000 2,999,991
--------------
TOTAL BANK NOTES
(Cost $7,000,004) 7,000,004
--------------
CERTIFICATES OF DEPOSIT 34.39%
Abbey National Bank, LLC
11/3/03 1.07%** 5,000,000 4,999,852
Bank of New York
11/17/03 1.05%** 3,000,000 2,999,648
Branch Banking & Trust Corp.
11/10/03 1.07%** 5,000,000 4,999,796
Canadian Imperial Bank
11/28/03 1.07%** 5,000,000 5,000,000
Den Danske Corp.
9/7/04 1.40% 5,000,000 4,999,439
First Tennessee Bank
12/5/03 1.07% 5,000,000 4,999,996
</Table>
5
<Page>
<Table>
<Caption>
DUE DATE DISCOUNT RATE OR COUPON RATE PRINCIPAL AMOUNT VALUE*
- -------- ---------------------------- ---------------- ------
CERTIFICATES OF DEPOSIT (CONTINUED)
HBOS Treasury Services, PLC
11/6/03 1.30% $ 2,000,000 $ 2,000,000
1/23/04 1.12% 3,000,000 3,000,000
Royal Bank of Canada
12/15/03 1.03%** 5,000,000 4,999,633
Societe Generale
12/10/03 1.04%** 3,000,000 2,999,894
Southtrust Bank National Association
11/3/03 1.03% 4,000,000 4,000,000
1/12/04 1.11%** 3,000,000 3,000,072
Svenska Handelsbanken
11/13/03 1.04%** 5,000,000 4,998,469
--------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $52,996,799) 52,996,799
--------------
COMMERCIAL PAPER 39.78%
Alliance & Leicester, PLC
12/5/03 1.09% 5,000,000 4,995,169
Atlantis One Funding
4/15/04 1.14% 4,145,000 4,123,461
Cancara Asset Securitization
11/20/03 1.07% 4,000,000 3,997,976
Charta, LLC
11/5/03 1.06% 5,000,000 4,999,705
Ei du Pont de Nemours & Co.
12/12/03 1.05% 4,000,000 3,995,439
Edison Asset Securitization, LLC
2/10/04 1.11% 5,000,000 4,984,711
Eiffel Funding, LLC
1/8/04 1.10% 5,000,000 4,989,908
Gemini Securitization Corp.
12/5/03 1.06% 5,650,000 5,644,672
</Table>
6
<Page>
<Table>
<Caption>
DUE DATE DISCOUNT RATE OR COUPON RATE PRINCIPAL AMOUNT VALUE*
- -------- ---------------------------- ---------------- ------
COMMERCIAL PAPER (CONTINUED)
Giro Balanced Funding Corp.
1/15/04 1.10% $ 5,000,000 $ 4,988,841
Grampian Funding, Ltd., LLC
1/5/04 1.09% 5,000,000 4,990,453
Liberty Street Funding Corp.
12/22/03 1.06% 5,000,000 4,992,783
Nieuw Amsterdam
11/20/03 1.06% 5,000,000 4,997,496
Polonius, Inc.
11/17/03 1.07% 3,600,000 3,598,501
---------------
TOTAL COMMERCIAL PAPER
(Cost $61,299,115) 61,299,115
---------------
CORPORATE NOTES 9.74%
Caterpillar Financial Services Corp.
11/5/03 1.30%** 5,000,000 5,003,656
Citigroup, Inc.
11/10/03 1.35%** 5,000,000 5,004,990
J.P. Morgan Chase & Co.
11/5/03 1.26%** 5,000,000 5,001,995
---------------
TOTAL CORPORATE NOTES
(Cost $15,010,641) 15,010,641
---------------
</Table>
7
<Page>
<Table>
<Caption>
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS 4.38% VALUE* COLLATERAL VALUE
- ----------------------------------------------------------------------------------------------------------------
Agreement with Credit Suisse First Boston and
J.P. Morgan Chase & Co. (Tri-party), 1.00%, dated
10/31/03 and maturing 11/3/03, collateralized by
Federal Home Loan Mortgage Corp. Note, 4.65% due
10/10/13 with a repurchase amount of $6,749,187 $ 6,749,000 $ 6,886,277
-----------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $6,749,000) 6,749,000
----------------
TOTAL INVESTMENTS
(Cost $154,077,461) 99.98% $ 154,077,461
Other Assets in Excess of Liabilities 0.02% 30,815
---------------------------------
NET ASSETS 100.00% $ 154,108,276
=================================
</Table>
* See note 1 to financial statements.
** Floating rate security - rate disclosed as of October 31, 2003. Maturity date
represents the next interest rate reset date.
DN - Discount Note
INCOME TAX INFORMATION:
Total cost for federal income tax purposes - $154,077,461
8
<Page>
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2003 (UNAUDITED)
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
-----------------------------------------------------------
ASSETS
Investments, at amortized cost (which
approximates market value) (1) -
see accompanying statement of investments $ 55,857,604 $ 318,367,354 $ 154,077,461
Interest receivable 91,018 616,395 184,684
Prepaid and other assets 1,197 1,854 407
-----------------------------------------------------------
Total Assets 55,949,819 318,985,603 154,262,552
-----------------------------------------------------------
LIABILITIES
Dividends payable 34,858 289,754 106,354
Accrued investment advisory fee 3,336 23,607 9,699
Accrued administration fee 9,378 32,710 13,952
Accrued board of trustees fee 943 3,944 1,462
Accrued SEC registration fee - 1,954 -
Accrued distribution fee - 414 18,646
Other payables 5,228 3,790 4,163
-----------------------------------------------------------
Total Liabilities 53,743 356,173 154,276
-----------------------------------------------------------
NET ASSETS $ 55,896,076 $ 318,629,430 $ 154,108,276
===========================================================
COMPOSITION OF NET ASSETS
Paid-in capital $ 55,916,938 $ 318,716,816 $ 154,056,641
(Over)/Undistributed net investment income (9,010) 779 232
Accumulated net realized gain/(loss) (11,852) (88,165) 51,403
-----------------------------------------------------------
NET ASSETS $ 55,896,076 $ 318,629,430(2) $ 154,108,276(2)
===========================================================
Shares of beneficial interest outstanding
(no par value, unlimited shares
authorized) 55,922,807 318,565,527(2) 154,056,641(2)
-----------------------------------------------------------
Net asset value and redemption value per share $ 1.00 $ 1.00 $ 1.00
-----------------------------------------------------------
</Table>
(1) Including repurchase agreements for the U.S. Treasury Money Market, U.S.
Government Money Market, and Prime Money Market Funds in the amounts of
$33,738,000, $145,690,000, and $6,749,000, respectively.
(2) U.S. Government Money Market Fund
<Table>
<Caption>
NET ASSETS SHARES OUTSTANDING
---------------- ------------------
Class I $ 317,235,822 317,171,941
Class II $ 1,393,608 1,393,586
</Table>
Prime Money Market Fund
<Table>
<Caption>
NET ASSETS SHARES OUTSTANDING
---------------- ------------------
Class I $ 101,713,606 101,670,995
Class II $ 52,394,670 52,385,646
</Table>
See notes to financial statements.
9
<Page>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2003 (UNAUDITED)
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
-----------------------------------------------------------
INVESTMENT INCOME $ 381,274 $ 2,762,347 $ 947,263
-----------------------------------------------------------
EXPENSES
Investment advisory fee (Note 2) 29,169 215,888 73,918
Administration services (Note 2) 305,754 376,609 182,950
Legal 895 2,211 1,933
Reports to Shareholders 608 1,206 558
Insurance 2,637 11,503 3,556
State Registration 2,046 - -
Class I - 1,666 365
Class II - 8 178
Distribution - Class II - 2,721 106,611
Board of Trustees 2,089 12,204 3,778
Miscellaneous 170 2,741 924
-----------------------------------------------------------
Total Expenses before fee waiver 343,368 626,757 374,771
Expenses waived by administrator (228,820) (86,098) (84,263)
Expenses waived by investment adviser (8,316) (65,310) (22,412)
-----------------------------------------------------------
Net Expenses 106,232 475,349 268,096
-----------------------------------------------------------
NET INVESTMENT INCOME 275,042 2,286,998 679,167
-----------------------------------------------------------
Net realized gain on investments - 4,291 1,532
-----------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 275,042 $ 2,291,289 $ 680,699
===========================================================
</Table>
See notes to financial statements.
10
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
U.S. TREASURY
MONEY MARKET
FUND
-------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, 2003** APRIL 30, 2003
-------------------------------------
OPERATIONS
Net investment income $ 275,042 $ 1,075,616
Net realized gain on investments - -
------------------------------------
Net increase in net assets resulting
from operations 275,042 1,075,616
------------------------------------
DISTRIBUTIONS
Dividends to shareholders from net
investment income (274,874) (1,075,616)
------------------------------------
BENEFICIAL INTEREST
TRANSACTIONS (1)
Shares sold 87,138,712 311,027,805
Dividends reinvested 283,506 1,072,820
Shares redeemed (112,461,272) (319,560,904)
------------------------------------
Net decrease in net assets
from beneficial interest transactions (25,039,054) (7,460,279)
------------------------------------
Net decrease in net assets (25,038,886) (7,460,279)
NET ASSETS:
Beginning of period 80,934,962 88,395,241
------------------------------------
End of period* $ 55,896,076 $ 80,934,962
====================================
* Includes overdistributed net
investment income of: $ (9,010) $ (9,178)
</Table>
** Unaudited
(1) At net asset value of $1.00 per share.
See notes to financial statements.
11
<Page>
<Table>
<Caption>
U.S. GOVERNMENT PRIME
MONEY MARKET MONEY MARKET
FUND FUND
-------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, 2003** APRIL 30, 2003 OCTOBER 31, 2003** APRIL 30, 2003
-------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,286,998 $ 6,157,694 $ 679,167 $ 2,408,163
Net realized gain on investments $ 4,291 - 1,532 39,921
------------------------------------------------------------------------
Net increase in net assets resulting
from operations 2,291,289 6,157,694 680,699 2,448,084
------------------------------------------------------------------------
DISTRIBUTIONS
Dividends to shareholders from net
investment income
Class I (2,278,390) (6,153,506) (526,010) (1,979,015)
Class II (7,844) (4,188) (152,925) (429,148)
------------------------------------------------------------------------
Net decrease in net assets from
distributions (2,286,234) (6,157,694) (678,935) (2,408,163)
------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (1)
Class I
Shares sold 794,522,923 1,050,300,725 251,586,190 588,986,769
Dividends reinvested 2,176,943 5,892,046 204,715 928,401
Shares redeemed (886,616,004) (1,115,527,969) (248,157,909) (630,139,577)
Class II
Shares sold 368,147 3,241,911 46,990,336 114,464,985
Dividends reinvested 8,357 2,620 6,697 7,646
Shares redeemed (1,146,834) (1,080,615) (46,352,869) (65,321,686)
------------------------------------------------------------------------
Net increase/(decrease) in net assets
from beneficial interest transactions (90,686,468) (57,171,282) 4,277,160 8,926,538
------------------------------------------------------------------------
Net increase/(decrease) in net assets (90,681,413) (57,171,282) 4,278,924 8,966,459
NET ASSETS:
Beginning of period 409,310,843 466,482,125 149,829,352 140,862,893
------------------------------------------------------------------------
End of period* $ 318,629,430 $ 409,310,843 $ 154,108,276 $ 149,829,352
========================================================================
* Includes undistributed net
investment income of: $ 779 $ 15 $ 232 $ -
</Table>
** Unaudited
(1) At net asset value of $1.00 per share.
See notes to financial statements.
12
<Page>
FINANCIAL HIGHLIGHTS
U.S. TREASURY MONEY MARKET FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED
OCTOBER 31, APRIL 30,
2003** 2003 2002 2001 2000 1999
--------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.00^ 0.01 0.03 0.06 0.05 0.05
-------------------------------------------------------------------------------------
DISTRIBUTIONS
From net investment income (0.00)^ (0.01) (0.03) (0.06) (0.05) (0.05)
-------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=====================================================================================
TOTAL RETURN+ 0.43%# 1.26% 2.53% 5.92% 5.01% 4.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 55,896 $ 80,935 $ 88,395 $ 74,590 $ 78,943 $ 90,862
Ratio of expenses to average net assets 0.33%* 0.33% 0.33% 0.33% 0.33% 0.33%
Ratio of net investment income to
average net assets 0.85%* 1.25% 2.51% 5.82% 4.85% 4.83%
Ratio of expenses to average net assets
without fee waivers 1.07%* 0.76% 0.69% 0.80% 0.72% 0.57%
Ratio of net investment income to
average net assets without fee waivers 0.12%* 0.81% 2.15% 5.34% 4.46% 4.59%
</Table>
* Annualized
** Unaudited
+ Total return would have been lower had various fees not been waived during the
period.
# Total returns for periods of less than one year are not annualized.
^ Less than $.005 per share.
See notes to financial statements.
13
<Page>
U.S. GOVERNMENT MONEY MARKET FUND - CLASS I
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED
OCTOBER 31, APRIL 30,
2003** 2003 2002 2001 2000 1999
--------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.00^ 0.01 0.03 0.06 0.05 0.05
-------------------------------------------------------------------------------------
DISTRIBUTIONS
From net investment income (0.00)^ (0.01) (0.03) (0.06) (0.05) (0.05)
-------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=====================================================================================
TOTAL RETURN+ 0.49%# 1.43% 2.87% 6.14% 5.27% 5.16%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 317,236 $ 407,147 $ 466,482 $ 343,856 $ 223,152 $ 352,333
Ratio of expenses to average net assets 0.20%* 0.20% 0.20% 0.20% 0.20% 0.20%
Ratio of net investment income to
average net assets 0.97%* 1.42% 2.78% 5.96% 5.12% 5.01%
Ratio of expenses to average net assets
without fee waivers 0.26%* 0.21% 0.21% 0.21% 0.22% 0.24%
Ratio of net investment income to
average net assets without fee waivers 0.91%* 1.41% 2.77% 5.95% 5.10% 4.96%
</Table>
* Annualized
** Unaudited
+ Total return would have been lower had various fees not been waived during the
period.
# Total returns for periods of less than one year are not annualized.
^ Less than $.005 per share.
See notes to financial statements.
14
<Page>
U.S. GOVERNMENT MONEY MARKET FUND - CLASS II
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE PERIOD ENDED
OCTOBER 31, 2003** APRIL 30, 2003(1)
-------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00
-------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.00^ 0.01
-------------------------------------------
DISTRIBUTIONS
From net investment income (0.00)^ (0.01)
-------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00
===========================================
TOTAL RETURN+ 0.37%# 1.03%*
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 1,394 $ 2,164
Ratio of expenses to average net assets 0.45%* 0.45%*
Ratio of net investment income to
average net assets 0.72%* 0.92%*
Ratio of expenses to average net assets
without fee waivers 0.51%* 0.46%*
Ratio of net investment income to
average net assets without fee waivers 0.66%* 0.91%*
</Table>
* Annualized
** Unaudited
+ Total return would have been lower had various fees not been waived during the
period.
# Total returns for periods of less than one year are not annualized.
^ Less than $.005 per share.
(1) Class II commenced operations on June 18, 2002.
See notes to financial statements.
15
<Page>
PRIME MONEY MARKET FUND - CLASS I
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE
SIX MONTHS ENDED FOR THE YEAR FOR THE PERIOD
OCTOBER 31, ENDED APRIL 30, DECEMBER10, 1998
2003** 2003 2002 2001 2000 TO APRIL 30, 1999(1)
-------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.00^ 0.01 0.03 0.06 0.05 0.02
-------------------------------------------------------------------------------------------
DISTRIBUTIONS
From net investment income (0.00)^ (0.01) (0.03) (0.06) (0.05) (0.02)
-------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================
TOTAL RETURN+ 0.50%# 1.42% 2.88% 6.23% 5.43% 4.82%*
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 101,714 $ 98,079 $ 138,272 $ 120,383 $ 140,005 $ 167,257
Ratio of expenses to average net assets 0.20%* 0.20% 0.20% 0.20% 0.20% 0.20%*
Ratio of net investment income to
average net assets 0.97%* 1.46% 2.74% 6.06% 5.37% 4.71%*
Ratio of expenses to average net assets
without fee waivers 0.33%* 0.26% 0.28% 0.33% 0.28% 0.66%*
Ratio of net investment income to
average net assets without fee waivers 0.84%* 1.41% 2.66% 5.93% 5.28% 4.25%*
</Table>
* Annualized
** Unaudited
+ Total return would have been lower had various fees not been waived during the
period.
# Total returns for periods of less than one year are not annualized.
^ Less than $.005 per share.
(1) Class I commenced operations on December 10, 1998.
See notes to financial statements.
16
<Page>
PRIME MONEY MARKET FUND - CLASS II
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE
SIX MONTHS ENDED FOR THE YEAR FOR THE PERIOD
OCTOBER 31, ENDED APRIL 30, DECEMBER 23, 1998
2003** 2003 2002 2001 2000 TO APRIL 30, 1999(1)
-------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.00^ 0.01 0.03 0.06 0.05 0.02
-------------------------------------------------------------------------------------------
DISTRIBUTIONS
From net investment income (0.00)^ (0.01) (0.03) (0.06) (0.05) (0.02)
-------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================
TOTAL RETURN+ 0.29%# 1.02% 2.62% 5.97% 5.17% 4.55%*
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 52,395 $ 51,750 $ 2,591 $ 39 $ 32 $ 2
Ratio of expenses to average net assets 0.60%* 0.60% 0.51% 0.45% 0.45% 0.45%*
Ratio of net investment income to
average net assets 0.57%* 0.96% 2.17% 5.88% 5.11% 4.53%*
Ratio of expenses to average net assets
without fee waivers 0.73%* 0.66% 0.60% 0.58% 0.57% 1.24%*
Ratio of net investment income to
average net assets without fee waivers 0.44%* 0.91% 2.08% 5.75% 4.99% 3.74%*
</Table>
* Annualized
** Unaudited
+ Total return would have been lower had various fees not been waived during the
period.
# Total returns for periods of less than one year are not annualized.
^ Less than $.005 per share.
(1) Class I commenced operations on December 10, 1998.
See notes to financial statements.
17
<Page>
NOTES
1. SIGNIFICANT ACCOUNTING POLICIES (UNAUDITED)
Financial Investors Trust, a Delaware business trust, is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company. The financial statements included herein relate to the U.S.
Treasury Money Market Fund, U.S. Government Money Market Fund and the Prime
Money Market Fund (the "Funds"). The financial statements of the remaining
portfolios of the Trust are presented separately.
The U.S. Government Money Market Fund and the Prime Money Market Fund offer
two classes of shares (Class I and Class II). Class I and Class II are identical
in all respects with the exception that Class II shares charge a distribution
fee and have a lower investment minimum. Each Class of shares has equal rights
as to earnings, assets and voting privileges except that Class II has exclusive
voting rights with respect to its Distribution Plan. Income, expenses (other
than expenses incurred under the Class II Distribution Plan and other class
specific expenses) and realized gains or losses on investments are allocated to
each Class based upon their relative net assets.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with accounting principles generally accepted in the
United States of America.
INVESTMENT VALUATION: The Funds value their securities on the basis of
amortized cost which approximates market value.
REPURCHASE AGREEMENTS: In some cases, the Funds' custodian takes possession
of the collateral pledged for investments in repurchase agreements, unless it is
a tri-party repurchase agreement. The underlying collateral is valued daily on a
mark-to-market basis to ensure that value, including accrued interest, is at
least equal to the repurchase price. In the event of default on the obligation
to repurchase, the Funds have the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. Under certain circumstances, in
the event of default by or bankruptcy of the other party to the agreement,
realization and/or retention of the collateral may be subject to legal
proceedings.
FEDERAL INCOME TAXES: It is the Funds' policy to continue to comply with
provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of their taxable income to shareholders.
Therefore, no federal income tax provisions are required.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS: Net investment income
(loss) and net realized gain (loss) may differ for financial statement and tax
purposes. The character of distributions made during the year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain was recorded by
the Fund.
EXPENSES: Most expenses of the Trust can be directly attributed to a Fund.
Expenses which cannot be directly attributed are apportioned among all funds in
the Trust based on average net assets.
OTHER: Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Dividends from net investment
income are declared daily and paid monthly. Distributions of accumulated net
realized gains, if any, are declared at least once a year. Realized gains and
losses from investment transactions are reported on an identified cost basis
which is the same basis the Funds use for federal income tax purposes.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates.
18
<Page>
2. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS
At a special meeting on June 10, 2003, shareholders of each of the
Money Market Funds approved an Investment Advisory Agreement between the Trust
and SSgA Funds Management, Inc. ("SSgA FM" or the "Adviser"). Pursuant to these
advisory agreements, SSgA FM is entitled to an advisory fee at the annual rate
of .105% of each Money Market Fund's average net assets. SSgA FM has voluntarily
agreed to waive .035% of their advisory fee until assets for each Fund reach $1
billion.
Prior to June 10, 2003, SSgA FM assumed the interim investment advisory
responsibility for the Financial Investors Trust Money Market Funds. Pursuant to
the interim advisory agreement, SSgA FM was entitled to the following advisory
fee schedule:
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
AVERAGE NET ASSETS MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
- ------------------ ----------------- ----------------- -----------------
First $500 million 0.05% 0.04% 0.04%
Next $500 million 0.075% 0.06% 0.06%
Next $500 million 0.10% 0.08% 0.08%
In excess of $1.5 billion 0.15% 0.08% 0.08%
</Table>
Any information contained in this report prior to January 13, 2003, reflects the
operations of the funds while GE Asset Management, Inc ("GEAM") was the adviser.
GEAM had the following fee schedule:
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
AVERAGE NET ASSETS MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
- ------------------ ----------------- ----------------- -----------------
First $500 million 0.05% 0.04% 0.04%
Next $500 million 0.075% 0.06% 0.06%
Next $500 million 0.10% 0.08% 0.08%
In excess of $1.5 billion 0.15% 0.08% 0.08%
</Table>
ALPS Mutual Funds Services, Inc. ("ALPS") serves as the Funds'
administrator. ALPS is entitled to receive a fee from each Fund for its
administrative services, computed daily and payable monthly, based on the
following fee schedule:
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
AVERAGE NET ASSETS MONEY MARKET FUND* MONEY MARKET FUND* MONEY MARKET FUND*
- ------------------ ------------------ ------------------- ------------------
First $500 million 0.26% 0.16% 0.16%
Next $500 million 0.24% 0.14% 0.14%
In excess of $1 billion 0.22% 0.12% 0.12%
</Table>
*Subject to a minimum monthly fee of $50,000, $30,000 and $30,000 for the U.S.
Treasury Money Market Fund, U.S. Government Money Market Fund and Prime Money
Market Fund, respectively.
ALPS has contractually agreed to waive a portion of its administration
fees until at least April 30, 2004, to the extent necessary for U.S. Treasury to
maintain a total expense ratio of no more than .33% of its average net assets,
U.S. Government Class I to maintain a total expense ratio of no more than .20%
of its average net assets, U.S. Government Class II to maintain a total expense
ratio of no more than .45% of its average net assets, Prime Class I to maintain
a total expense ratio of no more than .20% of its average net assets, and Prime
Class II to maintain a total expense ratio of no more than .60% of its average
net assets, respectively. After that date, the fee waivers by ALPS are voluntary
and may be terminated at any time.
Administration services include: fund accounting, daily pricing,
custody, registration, shareholder servicing, transfer agency, fund ratings and
audit.
19
<Page>
The Trustees have adopted a Distribution Plan on behalf of Class II of
the U.S. Government Money Market Fund and the Prime Money Market Fund ("Class
II") pursuant to Rule 12b-1 under the Investment Company Act of 1940, as
amended. The Distribution Plan provides for payment of a fee to the Distributor,
ALPS Distributors, Inc. at the annual rate of .25% of the average net assets of
Class II of the U.S. Government Money Market Fund and .40% of the average net
assets of Class II of the Prime Money Market Fund.
Shareholders holding more than 10% of the Funds' outstanding shares as
of October 31, 2003, constituted 10.35% of the U.S. Treasury Money Market Fund,
13.61% of the U.S. Government Money Market Fund and 28.55% of the Prime Money
Market Fund.
A special meeting of the shareholders of each Money Market Fund was held on June
10, 2003, for the purpose of voting on a proposal to approve SSgA FM as the new
investment adviser. The results of the vote are described in the following
table:
<Table>
<Caption>
SHARES VOTED SHARES VOTED SHARES ABSTAINED
FOR PROPOSAL AGAINST PROPOSAL FROM VOTING
--------------------------------------------------------------------------------
U.S. Treasury 42,440,925.186 0 501,702.270
U.S. Government 269,042,764.944 0 0
Prime 109,542,918.686 0 5,973.28
</Table>
3. TRUSTEES
As of October 31, 2003, the Funds are three of seven separate series
under the Trust. The Trust's Board of Trustees oversees the overall management
of each series of the Trust and elects the officers of the Trust. The principal
occupations for the past five years of the Trustees and executive officers of
the Trust are listed below.
20
<Page>
INTERESTED TRUSTEES
<Table>
<Caption>
TERM OF OFFICE,
LENGTH OF
TIME SERVED AND PRINCIPAL OCCUPATION DURING THE PAST 5
POSITION(S) HELD NUMBER OF YEARS* AND OTHER DIRECTORSHIPS HELD BY
NAME, ADDRESS & AGE WITH FUNDS PORTFOLIOS OVERSEEN TRUSTEE
- ---------------------------------------------------------------------------------------------------------------
W. Robert Alexander Trustee and W. Robert Alexander Mr. Alexander is the Chief Executive
(76) Chairman was elected by the Officer of ALPS Mutual Funds Services,
initial shareholder Inc., and ALPS Distributors, Inc., which
1625 Broadway in December 1993 and provide administration and distribution
Suite 2200 oversees 7 portfolios services, respectively, for proprietary
Denver, CO 80202 in fund complex. mutual fund complexes. Mr. Alexander was
Vice Chairman of First Interstate Bank of
Denver, responsible for Trust, Private
Banking, Retail Banking, Cash Management
Services and Marketing. Mr. Alexander is
currently a member of the Board of
Trustees of the Hunter and Hughes Trusts.
Because of his affiliation with ALPS
Mutual Funds Services and ALPS
Distributors, Mr. Alexander is considered
an "interested" Trustee of the Trust.
INDEPENDENT TRUSTEES
Mary K. Anstine (63) Trustee Mary K. Anstine was President/Chief Executive Officer,
elected at a special HealthONE Alliance, Denver, Colorado;
1625 Broadway meeting of Former Executive Vice President, First
Suite 2200 shareholders held on Interstate Bank of Denver. Ms. Anstine is
Denver, CO 80202 March 21, 1997 and currently a Director of the Trust of
oversees 7 portfolios Colorado, Trustee of the Denver Area
in fund complex. Council of the Boy Scouts of America, a
Director of the Junior Achievement Board
and the Colorado Uplift Board, and a
member of the Advisory Boards for the
Girl Scouts Mile Hi Council and the
Hospice of Metro Denver. Formerly, Ms.
Anstine served as a Director of ALPS
Distributors, Inc., from October 1995 to
December 1996; Director of HealthONE; a
member of the American Bankers
Association Trust Executive Committee;
and Director of the Center for Dispute
Resolution.
</Table>
21
<Page>
INDEPENDENT TRUSTEES
<Table>
<Caption>
TERM OF OFFICE,
LENGTH OF
TIME SERVED AND PRINCIPAL OCCUPATION DURING THE PAST 5
POSITION(S) HELD NUMBER OF YEARS* AND OTHER DIRECTORSHIPS HELD BY
NAME, ADDRESS & AGE WITH FUNDS PORTFOLIOS OVERSEEN TRUSTEE
- ------------------------------------------------------------------------------------------------------------
Edwin B. Crowder (72) Trustee Edwin B. Crowder was Mr. Crowder currently operates a
elected at a special marketing concern with operations in the
1625 Broadway meeting of U. S. and Latin America. He has
Suite 2200 shareholders held on previously engaged in business pursuits
Denver, CO 80202 March 21, 1997 and in the restaurant, oil and gas drilling,
oversees 7 portfolios and real estate development industries.
in fund complex. Mr. Crowder is a former Director of
Athletics and Head Football Coach at the
University of Colorado.
Robert E. Lee (68) Trustee Robert E. Lee was Mr. Lee has been a Director of Storage
appointed as a Technology Corporation since 1989 and of
1625 Broadway Trustee at the Equitable of Iowa since 1981. Mr. Lee was
Suite 2200 December 15, 1998, the Executive Director of The Denver
Denver, CO 80202 meeting of the Board Foundation from 1989 to 1996, and is
of Trustees and currently the Executive Director of
oversees 7 portfolios Emeritus. Mr. Lee is also a Director of
in fund complex. Meredith Capital Corporation and Source
Capital Corporation.
John R. Moran, Jr. (73) Trustee John R. Moran was Mr. Moran is President of The Colorado
elected at a special Trust, a private foundation serving the
1625 Broadway meeting of health and hospital community in the
Suite 2200 shareholders held on State of Colorado. An attorney, Mr. Moran
Denver, CO 80202 March 21, 1997 and was formerly a partner with the firm of
oversees 7 portfo- Kutak Rock & Campbell in Denver, Colorado
lios in fund complex. and a member of the Colorado House of
Representatives. Currently, Mr. Moran is
a member of the Board of Directors and
Treasurer of Grantmakers in Health; a
Director of the Conference of Southwest
Foundations; a member of the Treasurer's
Office Investment Advisory Committee for
the University of Colorado; a Trustee of
the Robert J. Kutak Foundation; Director
of the Colorado Wildlife Heritage
Foundation; and a member of the Alumni
Council of the University of Denver
College of Law.
</Table>
* Except as otherwise indicated, each individual has held the office shown or
other offices in the same company for the last five years.
22
<Page>
INTENTIONALLY LEFT BLANK
<Page>
INVESTMENT ADVISER
SSgA Funds Management, Inc.
1 International Place, 25th Floor
Boston, Massachusetts 02110
ADMINISTRATOR, TRANSFER AGENT & FUND ACCOUNTANT
ALPS MutualFunds Services, Inc.
1625 Broadway
Suite 2200
Denver, Colorado 80202
DISTRIBUTOR
ALPS Distributors, Inc.
1625 Broadway
Suite 2200
Denver, Colorado 80202
LEGAL COUNSEL
Davis Graham & Stubbs LLP
1550 Seventeenth Street
Suite 500
Denver, Colorado 80202
INDEPENDENT AUDITORS
Deloitte & Touche LLP
555 Seventeenth Street
Suite 3600
Denver, Colorado 80202
CUSTODIAN
State Street Bank & Trust Company of Connecticut N.A.
750 Main Street
Suite 1114
Hartford, Connecticut 06103
SUB-CUSTODIAN
State Street Bank & Trust Company
1776 Heritage Drive
North Quincy, Massachusetts 02171
Must be accompanied or preceded by a current prospectus.
For more information, please call
800.298.3442 or visit
www.fitfunds.com
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
SEMI - ANNUAL
REPORT
[FINANCIAL INVESTORS TRUST LOGO]
OCTOBER 31, 2003
<Page>
STATEMENT OF INVESTMENTS
U.S. GOVERNMENT MONEY MARKET FUND
OCTOBER 31, 2003 (UNAUDITED)
<Table>
<Caption>
FACE VALUE VALUE*
- ------------ ---------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 51.71%
U.S. Treasury Note
$ 5,000,000 2.25%, 7/31/04 $ 5,043,172
Federal Home Loan Mortgage Corp., Discount Notes
2,929,000 1.04%, 11/28/03 2,926,882
10,000,000 1.07%, 1/21/04 9,976,511
2,900,000 1.08%, 1/22/04 2,893,037
1,800,000 1.07%, 3/17/04 1,792,772
3,100,000 1.07%, 3/19/04 3,087,366
Federal Home Loan Mortgage Corp., Discount Notes
2,000,000 1.09%, 1/9/04 1,995,941
15,000,000 1.10%, 3/25/04 14,934,379
Federal National Mortgage Association, Discount Notes
16,600,000 1.03%, 11/19/03 16,592,392
16,000,000 1.05%, 12/3/03 15,985,983
---------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Cost $75,228,435) 75,228,435
---------------
</Table>
1
<Page>
<Table>
<Caption>
VALUE* COLLATERAL VALUE
--------------------------------------
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS 48.35%
Agreement with ABN AMRO Bank and Bank of New York (Tri-party),
1.05%, dated 10/31/03 and maturing 11/3/03, collateralized by
Federal Home Loan Mortgage Corp. Notes, 1.50-4.00% due
8/15/05-5/5/08, Federal National Mortgage Association Note, 3.50%
due 10/15/07 with a repurchase amount of $35,001,021 $ 35,000,000 $ 35,700,946
Agreement with Credit Suisse First Boston and J.P. Morgan Chase &
Co. (Tri-party), 1.00%, dated 10/31/03 and maturing 11/3/03,
collateralized by Federal Home Loan Mortgage Corp. Note, 5.25% due
1/15/06 with a repurchase amount of $35,349,982 35,349,000 36,057,727
--------------- ---------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $70,349,000) 70,349,000 71,758,673
--------------- ---------------------
TOTAL INVESTMENTS
(Cost $145,577,435) 100.06% $ 145,577,435
Liabilities in Excess of Other Assets -0.06% (91,638)
-----------------------------------
NET ASSETS 100.00% $ 145,485,797
===================================
</Table>
* See Note 1 to financial statements.
INCOME TAX INFORMATION:
Total cost for federal income tax purposes - $145,577,435
2
<Page>
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2003 (UNAUDITED)
<Table>
<Caption>
U.S. GOVERNMENT
MONEY MARKET FUND
-----------------
ASSETS
Investments, at amortized cost (which
approximates market value) (1) -
see accompanying statement of investments $ 145,577,435
Interest receivable 35,050
Prepaid and other assets 68
-----------------
Total Assets 145,612,553
-----------------
LIABILITIES
Dividends payable 102,626
Accrued investment advisory fee 8,287
Accrued administration fee 8,793
Accrued board of trustees fee 2,131
Other payables 4,919
-----------------
Total Liabilities 126,756
-----------------
NET ASSETS $ 145,485,797
=================
COMPOSITION OF NET ASSETS
Paid-in capital $ 145,485,797
-----------------
NET ASSETS $ 145,485,797(2)
=================
Shares of beneficial interest outstanding (no par value, unlimited shares
authorized) 145,485,797(2)
-----------------
Net asset value and redemption value per share $ 1.00
-----------------
</Table>
(1) Including repurchase agreements in the amount of $70,349,000.
<Table>
<Caption>
(2) U.S. GOVERNMENT MONEY MARKET FUND NET ASSETS SHARES OUTSTANDING
---------- ------------------
Class I $ 145,485,697 145,485,697
Class II $ 100 100
</Table>
See notes to financial statements.
3
<Page>
STATEMENT OF OPERATIONS
FOR THE PERIOD SEPTEMBER 17, 2003 TO OCTOBER 31, 2003 (UNAUDITED)
<Table>
<Caption>
U.S. GOVERNMENT
MONEY MARKET FUND
-----------------
INVESTMENT INCOME $ 171,207
-----------------
EXPENSES
Investment advisory fee (Note 2) 17,137
Administration services (Note 2) 46,230
Legal 1,065
Insurance 3,128
State Registration
Class I 244
Class II -
Board of Trustees 2,131
Miscellaneous 612
-----------------
Total Expenses before fee waiver 70,547
Expenses waived by administrator (33,064)
Expenses waived by investment advisor (6,404)
-----------------
Net Expenses 31,079
-----------------
NET INVESTMENT INCOME 140,128
-----------------
Net realized gain on investments -
-----------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 140,128
=================
</Table>
See notes to financial statements.
4
<Page>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD SEPTEMBER 17, 2003 TO OCTOBER 31, 2003 (UNAUDITED)
<Table>
<Caption>
U.S. GOVERNMENT
MONEY MARKET FUND*
------------------
OPERATIONS
Net investment income $ 140,128
Net realized gain on investments -
------------------
Net increase in net assets resulting from operations 140,128
------------------
DISTRIBUTIONS
Dividends to shareholders from net
investment income
Class I (140,128)
Class II -
------------------
Net decrease in net assets from distributions (140,128)
------------------
BENEFICIAL INTEREST TRANSACTIONS (1)
Class I
Shares sold 160,671,429
Dividends reinvested 34,268
Shares redeemed (15,220,000)
Class II
Shares sold 100
Dividends reinvested -
Shares redeemed -
------------------
Net increase in net assets from beneficial interest transactions 145,485,797
------------------
Net increase in net assets 145,485,797
NET ASSETS
Beginning of period -
------------------
End of period $ 145,485,797
==================
</Table>
* Unaudited
(1) At net asset value of $1.00 per share.
See notes to financial statements.
5
<Page>
FINANCIAL HIGHLIGHTS
U.S. GOVERNMENT MONEY MARKET FUND - CLASS I
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE PERIOD ENDED
OCTOBER 31, 2003
(UNAUDITED)**
--------------------
Net asset value, beginning of period $ 1.00
--------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.001
--------------------
DISTRIBUTIONS
From net investment income (0.001)
--------------------
Net asset value, end of period $ 1.00
====================
TOTAL RETURN+ 0.11%#
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 145,486
Ratio of expenses to average net assets 0.20%*
Ratio of net investment income to
average net assets 0.88%*
Ratio of expenses to average net assets
without fee waivers 0.44%*
Ratio of net investment income to
average net assets without fee waivers 0.63%*
</Table>
*Annualized
** Class I commenced operations on September 17, 2003.
+ Total return would have been lower had various fees not been waived during the
period.
# Total returns for periods of less than one year are not annualized.
See notes to financial statements.
6
<Page>
U.S. GOVERNMENT MONEY MARKET FUND - CLASS II
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE PERIOD ENDED
OCTOBER 31, 2003
(UNAUDITED)**
--------------------
Net asset value, beginning of period $ 1.00
--------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.000***
--------------------
DISTRIBUTIONS
From net investment income 0.000***
--------------------
Net asset value, end of period $ 1.00
====================
TOTAL RETURN+ 0.00%^#
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 0
Ratio of expenses to average net assets 0.00%^*
Ratio of net investment income to
average net assets 0.00%^*
Ratio of expenses to average net assets
without fee waivers 0.00%^*
Ratio of net investment income to
average net assets without fee waivers 0.00%^*
</Table>
* Annualized.
** Class II commenced operations on September 17, 2003.
*** Less than $.005 per share.
^Less than .005% per share.
+ Total return would have been lower had various fees not been waived during the
period.
# Total returns for periods of less than one year are not annualized.
See notes to financial statements.
7
<Page>
NOTES (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Financial Investors Trust, a Delaware business trust, is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company. The financial statements included herein relate to the
Trust's American Freedom Family of Funds. The American Freedom Family of Funds
includes the U.S. Government Money Market Fund. The financial statements of the
remaining portfolios of the Trust are presented separately.
The U.S. Government Money Market Fund offers two classes of shares (Class I
and Class II). Class I and Class II are identical in all respects with the
exception that Class II shares charge a distribution fee and have a lower
investment minimum. Each Class of shares has equal rights as to earnings, assets
and voting privileges except that Class II has exclusive voting rights with
respect to its Distribution Plan. Income, expenses (other than expenses incurred
under the Class II Distribution Plan and other class specific expenses) and
realized gains or losses on investments are allocated to each Class based upon
their relative net assets.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with accounting principles generally accepted in the
United States of America.
INVESTMENT VALUATION: The Funds value their securities on the basis of
amortized cost which approximates market value.
REPURCHASE AGREEMENTS: In some cases, the Fund's custodian takes possession
of the collateral pledged for investments in repurchase agreement, unless it is
a tri-party repurchase agreement. The underlying collateral is valued daily on a
mark-to-market basis to ensure that value, including accrued interest, is at
least equal to the repurchase price. In the event of default on the obligation
to repurchase, the Funds have the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. Under certain circumstances, in
the event of default by or bankruptcy of the other party to the agreement,
realization and/or retention of the collateral may be subject to legal
proceedings.
FEDERAL INCOME TAXES: It is the Fund's policy to continue to comply with
provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of their taxable income to shareholders.
Therefore, no federal income tax provisions are required.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS: Net investment income
(loss) and net realized gain (loss) may differ for financial statement and tax
purposes. The character of distributions made during the year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain was recorded by
the Fund.
EXPENSES: Most expenses of the Trust can be directly attributed to a Fund.
Expenses which cannot be directly attribute are apportioned among all funds in
the Trust based on average net assets.
OTHER: Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Dividends from net investment
income are declared daily and paid monthly. Distributions of accumulated net
realized gains, if any, are declared at least once a year. Realized gains and
losses from investment transactions are reported on an identified cost basis
which is the same basis the Funds use for federal income tax purposes.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates.
8
<Page>
2. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS
The Trust has entered into Investment Advisory Agreements with SSgA Funds
Management, Inc. ("SSgA FM"). Pursuant to these advisory agreements, SSgA FM is
entitled to an advisory fee at the annual rate of .105% of average net assets of
the U.S. Government Money Market Fund. SSgA FM has voluntarily agreed to waive
..035% of their advisory fee until assets of the Fund reach $1 billion.
ALPS Mutual Funds Services, Inc. ("ALPS") serves as the Fund's
administrator. ALPS is entitled to receive a fee from the Fund for its
administrative services, computed daily and payable monthly, based on the
following fee schedule:
<Table>
<Caption>
U.S. GOVERNMENT
AVERAGE NET ASSETS MONEY MARKET FUND*
------------------ ------------------
First $500 million 0.16%
Next $500 million 0.14%
In excess of $1 billion 0.12%
</Table>
*Subject to a minimum monthly fee of $30,000 for the U.S. Government Money
Market Fund.
ALPS has contractually agreed to waive a portion of its administration
fees until at least April 30, 2004, to the extent necessary for U.S. Government
Class I to maintain a total expense ratio of no more than .20% of its average
net assets, and U.S. Government Class II to maintain a total expense ratio of no
more than .45% of its average net assets, respectively. After that date, the fee
waivers by ALPS are voluntary and may be terminated at any time.
Administration services include: fund accounting, daily pricing,
custody, registration, shareholder servicing, transfer agency, fund ratings and
audit.
The Trustees have adopted a Distribution Plan on behalf of Class II of
the U.S. Government Money Market Fund ("Class II") pursuant to Rule 12b-1 under
the Investment Company Act of 1940, as amended. The Distribution Plan provides
for payment of a fee to the Distributor, ALPS Distributors, Inc. at the annual
rate of .25% of the average net assets of Class II of the U.S. Government Money
Market Fund.
Shareholders holding more than 10% of the Funds' outstanding shares as
of October 31, 2003, constituted 68.25% of the U.S. Government Money Market
Fund.
3. TRUSTEES
As of October 31, 2003, the Funds are one of seven separate series under
the Trust. The Trust's Board of Trustees oversees the overall management of each
series of the Trust and elects the officers of the Trust. The principal
occupations for the past five years of the Trustees and executive officers of
the Trust are listed below.
9
<Page>
INTERESTED TRUSTEES
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND PRINCIPAL OCCUPATION DURING THE PAST 5
POSITION(S) HELD NUMBER OF PORTFOLIOS YEARS* AND OTHER DIRECTORSHIPS HELD BY
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------------
W. Robert Alexander Trustee and W. Robert Alexander Mr. Alexander is the Chief Executive Officer of
(76) Chairman was elected by the ALPS Mutual Funds Services, Inc., and ALPS
initial shareholder in Distributors, Inc., which provide administration
1625 Broadway December 1993 and and distribution services, respectively, for
Suite 2200 oversees 7 portfolios in proprietary mutual fund complexes. Mr. Alexander
Denver, CO 80202 fund complex. was Vice Chairman of First Interstate Bank of
Denver, responsible for Trust, Private Banking,
Retail Banking, Cash Management Services and
Marketing. Mr. Alexander is currently a member of
the Board of Trustees of the Hunter and Hughes
Trusts. Because of his affiliation with ALPS Mutual
Funds Services and ALPS Distributors, Mr. Alexander
is considered an "interested" Trustee of the Trust.
INDEPENDENT TRUSTEES
Mary K. Anstine (63) Trustee Mary K. Anstine was President/Chief Executive Officer, HealthONE
elected at a special Alliance, Denver, Colorado; Former Executive
1625 Broadway meeting of shareholders Vice President, First Interstate Bank of Denver.
Suite 2200 held on March 21, 1997 Ms. Anstine is currently a Director of the Trust
Denver, CO 80202 and oversees 7 of Colorado, Trustee of the Denver Area Council of
portfolios the Boy Scouts of America, a Director of the Junior
in fund complex. Achievement Board and the Colorado Uplift Board, and
a member of the Advisory Boards for the Girl Scouts
Mile Hi Council and the Hospice of Metro Denver.
Formerly, Ms. Anstine served as a Director of ALPS
Distributors, Inc., from October 1995 to December
1996; Director of HealthONE; a member of the
American Bankers Association Trust Executive
Committee; and Director of the Center for Dispute
Resolution.
</Table>
10
<Page>
INDEPENDENT TRUSTEES
<Table>
<Caption>
TERM OF OFFICE, LENGTH OF PRINCIPAL OCCUPATION DURING THE PAST 5
POSITION(S) HELD TIME SERVED AND NUMBER YEARS* AND OTHER DIRECTORSHIPS HELD BY
NAME, ADDRESS & AGE WITH FUNDS OF PORTFOLIOS OVERSEEN TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------------
Edwin B. Crowder (72) Trustee Edwin B. Crowder was Mr. Crowder currently operates a marketing concern
elected at a special meet- with operations in the U.S. and Latin America. He
1625 Broadway ing of shareholders held has previously engaged in business pursuits in the
Suite 2200 on March 21, 1997 and restaurant, oil and gas drilling, and real estate
Denver, CO 80202 oversees 7 portfolios in development industries. Mr. Crowder is a former
fund complex. Director of Athletics and Head Football Coach at
the University of Colorado.
Robert E. Lee (68) Trustee Robert E. Lee was Mr. Lee has been a Director of Storage Technology
appointed as a Trustee at Corporation since 1989 and of Equitable of Iowa
1625 Broadway the December 15, 1998, since 1981. Mr. Lee was the Executive Director of
Suite 2200 meeting of the Board of The Denver Foundation from 1989 to 1996, and is
Denver, CO 80202 Trustees and oversees 7 currently the Executive Director of Emeritus.
portfolios in fund Mr. Lee is also a Director of Meredith Capital
complex. Corporation and Source Capital Corporation.
John R. Moran, Jr. (73) Trustee John R. Moran was Mr. Moran is President of The Colorado Trust, a
elected at a special private foundation serving the health and hospital
1625 Broadway meeting of shareholders community in the State of Colorado. An attorney,
Suite 2200 held on March 21, 1997 Mr. Moran was formerly a partner with the firm of
Denver, CO 80202 and oversees 7 portfo- Kutak Rock & Campbell in Denver, Colorado and a
lios in fund complex. member of the Colorado House of Representatives.
Currently, Mr. Moran is a member of the Board of
Directors and Treasurer of Grantmakers in Health; a
Director of the Conference of Southwest
Foundations; a member of the Treasurer's Office
Investment Advisory Committee for the University of
Colorado; a Trustee of the Robert J. Kutak
Foundation; Director of the Colorado Wildlife
Heritage Foundation; and a member of the Alumni
Council of the University of Denver College of Law.
</Table>
* Except as otherwise indicated, each individual has held the office shown or
other offices in the same company for the last five years.
11
<Page>
INVESTMENT ADVISER
SSgA Funds Management, Inc.
1 International Place, 25th Floor
Boston, Massachusetts 02110
ADMINISTRATOR, TRANSFER AGENT & FUND ACCOUNTANT
ALPS Mutual Funds Services, Inc.
1625 Broadway
Suite 2200
Denver, Colorado 80202
DISTRIBUTOR
ALPS Distributors, Inc.
1625 Broadway
Suite 2200
Denver, Colorado 80202
LEGAL COUNSEL
Davis Graham & Stubbs LLP
1550 Seventeenth Street
Suite 500
Denver, Colorado 80202
INDEPENDENT AUDITORS
Deloitte & Touche LLP
555 Seventeenth Street
Suite 3600
Denver, Colorado 80202
CUSTODIAN
State Street Bank & Trust Company
of Connecticut N.A.
750 Main Street
Suite 1114
Hartford, Connecticut 06103
SUB-CUSTODIAN
State Street Bank & Trust Company
1776 Heritage Drive
North Quincy, Massachusetts 02171
Must be accompanied or preceded by a current prospectus.
For more information, please call
800.862.3040 or visit
www.americanfreedomfunds.com
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Fund.
[AMERICAN FREEDOM FUNDS LOGO]
SEMI-ANNUAL REPORT
OCTOBER 31,2003
<Page>
LETTER FROM THE INVESTMENT ADVISOR
Dear Fellow Shareholders,
We are pleased to provide the October 31, 2003 Aristata Mutual Funds'
semi-annual report.
What a difference a year makes! Much has changed in the financial markets, the
economy, and in the mutual fund industry during the past year.
A retrospective--last year when we wrote to you the news was quite bleak.
Falling stock prices, a slumping economy and disappointing corporate profits
weighed heavily on investors. As we stated in last October's report: the
three-month period of August through October was one of the most difficult stock
markets we have experienced. One year ago it was difficult to escape the gloom.
We concluded last year's report noting that...the convincing history of the U.S.
financial markets and the economy suggests we should be nearing the point when
investor confidence will return, the economy will recover, and the stock market
again will provide attractive investment opportunity. When it comes to the
economy and the financial markets timing is always uncertain. Looking back over
2002-2003 the actual low for the Standard & Poor's 500 occurred on October 9,
2002. As you will read later in this report, the Aristata Equity Fund and both
Aristata Bond Funds all achieved positive returns during the twelve months ended
October 31, 2003.
The Standard & Poor's 500 is a component of the Conference Board's Leading
Indictor of U.S. economic activity. The advance in stock prices that began about
one year ago has coincided with the stronger economy. The just released (October
31) third quarter "advance estimate" was 7.2% annualized, inflation adjusted
growth for the U.S. Gross Domestic Product (GDP). It should be noted that this
is an estimate, and like all government economic indicators they are subject to
revision. That said, THE WALL STREET JOURNAL reported on October 31, 2003 THE
U.S. ECONOMY GREW AT THE FASTEST GROWTH IN ALMOST 20 YEARS. CONSUMER SPENDING
AND EXPORTS CLIMBED AND BUSINESS INVESTMENT REBOUNDED.
The value of all goods and services produced in the U.S. or GDP is approaching
$11 trillion dollars. The enormity of our economy is difficult to grasp. We find
some perspective in the upcoming launch by the Cunard Line of the Queen Mary 2
in January 2004. It will be the largest, longest (4 football fields), and
tallest (height of a 23-story building above water line) ship ever built. Unlike
the Queen Mary 2, the U.S. economy has left the dry dock. While neither the
Queen Mary 2 nor the U.S. economy can turn on a dime, once underway their steady
direction becomes visible. THE WALL STREET JOURNAL article said it best - -- THE
THIRD QUARTER WAS THE BROADEST-BASED GAIN IN THE ECONOMY IN THE THREE YEARS
SINCE THE STOCK MARKET
1
<Page>
FUELED BOOM YEARS OF THE 1900S. WHILE THE ECONOMY CERTAINLY WON'T KEEP UP THE
THIRD QUARTER'S BLISTERING PACE MOST ECONOMISTS BELIEVE THE QUARTER MARKS A
DISTINCTIVE SHIFT INTO A MORE ROBUST EXPANSION.
Crucially important changes are occurring in the mutual fund industry. We feel
it is important to discuss our thoughts and observations surrounding the
expanding investigations underway within the financial industry. The mutual fund
scandals involve insiders trading in and out of mutual funds in violations of
company rules, security laws, and to the detriment of fund shareholders. Greedy
and unethical managements violated the trust and confidence of shareholders. The
repercussions continue to reverberate through the industry.
Integrity, trust and confidence are the bedrock of any investment advisory
relationship. The new era of corporate governance that was ushered in by the
"Enrons of the world" is rapidly extending to the mutual fund industry. The
Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002
requires that public companies certify, under penalty of law, the financial
information they report to shareholders is fully and fairly presented. In early
2003, the Securities and Exchange Commission mandated that all mutual funds must
certify and comply with the standards of Sarbanes-Oxley. The Aristata Funds and
TEMPEST INVESTMENT COUNSELORS at all times are committed to maintaining the
highest standards of integrity and we remain dedicated to always serving our
shareholders.
You may be interested to know that TEMPEST has had a Code of Ethics in place for
many years. The Code governs employee behavior and specifically addresses
personal securities transactions. The essence of our Code is always to put
clients' interests first.
TEMPEST takes the stewardship of shareholder money personally and that is
evidenced by the fact that all of our partners and all eligible employees are
invested directly alongside our Aristata investors. Our investment perspective
is for the long-term and that is evidenced by the Aristata Equity Fund's average
turnover ratio of approximately 25 percent, implying that stocks purchased are
held about 4 years. In contrast, according to Morningstar the turnover rate for
domestic equity funds is over 100 percent annually. Our average holding period
is noteworthy in an industry where the typical mutual fund stock is held less
than 12 months.
The improving economy, recovering profits, and invitingly low interest rates are
much in the news. The signs of renewed growth are not unrecognized by investors
as witness the strong recovery in stock prices. In fact, a recent Merrill Lynch
study indicates low quality companies are outperforming by a wide margin high
quality companies ("Quality" was based on the Standard & Poor's Common Stock
Rankings). The
2
<Page>
much stronger performance of lower quality stock indicates investors seem
willing to step up the riskiness of their investments.
While much has changed, and change is the nature of the investment business, we
continue to manage the assets entrusted to us with the same strong disciplines
you have come to know and expect from the Aristata Funds and TEMPEST INVESTMENT
COUNSELORS. We remain focused on the long-term, we will select investments based
upon sound research, attractive valuations and attempt to avoid investment fads.
We appreciate your investment in the Aristata Funds and we are grateful for the
continued confidence. We look forward to continuing to serve your investment
goals in the future.
Sincerely,
/s/ H. David Lansdowne
H. David Lansdowne, CFA
President
TEMPEST INVESTMENT COUNSELORS, INC.
WHEN READING THIS REPORT PLEASE REMEMBER
THE LETTER FROM THE INVESTMENT ADVISER AND THE SECTIONS COVERING FUND REVIEW
REFLECT THE VIEWS AND OPINIONS OF TEMPEST INVESTMENT COUNSELORS, INC. AS ADVISER
IT HAS ALWAYS BEEN OUR PRACTICE TO PROVIDE INFORMATION THAT SHOULD HELP OUR
SHAREHOLDERS EVALUATE THEIR INVESTMENT, AND TO UNDERSTAND THE INVESTMENT
PHILOSOPHY AND STRATEGY UNDER WHICH WE ARE MANAGING THEIR MONEY. WE BELIEVE
COMMUNICATIONS THAT INCLUDE OUR OPINIONS, SUBJECTIVE OBSERVATIONS, ANALYSIS, AND
OTHER "FORWARD LOOKING STATEMENTS" SHOULD ASSIST IN THE PROCESS OF SHAREHOLDERS
TO EVALUATE THEIR INVESTMENT IN THE FUNDS. NATURALLY OUR PROFESSIONAL
EXPERIENCE, AND OUR LONG PRACTICED METHODOLOGY GIVES US CONFIDENCE IN THESE
STATEMENTS AND DISCUSSIONS. BUT PLEASE RECOGNIZE THEY ARE JUST THAT--OPINIONS
THAT SHOULD NOT BE CONSIDERED FACT, PROMISE, OR ADVICE. THE VIEWS EXPRESSED BY
THE ADVISER ARE AS OF OCTOBER 31, 2003 AND MAY NOT NECESSARILY REFLECT CURRENT
VIEWS AND THE ADVISER DISCLAIMS ANY OBLIGATION TO UPDATE OR ALTER ANY OPINIONS
EXPRESSED HEREIN.
3
<Page>
FUND REVIEW
ARISTATA EQUITY FUND
PERFORMANCE
The Aristata Equity Fund's total return for the six months ended October 31,
2003 was 15.15%. This performance was in line with the Standard & Poor's 500
Index which rose 15.62% during the same period. Net assets for the Aristata
Equity Fund were $29.1 million as of October 31, 2003. The equity market
environment was relatively strong, and considerably less gloomy than what we saw
one year ago.
EQUITY MARKET OVERVIEW
Since our last report to you six months ago, the stock market is up. A majority
of the gain occurred in May when the Aristata Equity Fund rose 6.2% and the S&P
500 Index was up 5.3%. This pattern shows the "lumpiness" of stock market
returns. Historically, market returns may be lackluster for several months and
then rise (or fall) dramatically in a short period. This reality is one of the
reasons the Aristata Equity Fund takes a long-term approach to investing.
With the turbulence in the equity markets over the last few years, we were
reassured to see a recent Merrill Lynch study examining the probability of
earning a negative return while holding the Standard & Poor's 500 Index. Of
note, there have been no 10-year periods (since 1985) in which the S&P 500
produced a negative return. The research concludes that the odds of losing money
are reduced as the holding period lengthens. Merrill Lynch examined rolling
periods (January to January, February to February etc.) dating back to 1985 and
calculated the percent of the periods that the S&P 500 had a negative return. As
the time periods examined became longer, the chances of a negative return
diminished.
Based on market data back to 1985 there is a 46% chance that the Standard &
Poor's 500 will decline over a period of one day. Over any one quarter the
chance of loss is reduced to 26%. For a 3 year holding period, the chance of
loss diminishes to only 9%, and over a 10 year period, the chance of the S&P 500
experiencing a negative return reduces to zero.
Merrill Lynch also examined data back to 1928, and found similar results. As the
holding period lengthened, the chance of a loss became smaller and smaller. This
data did not include dividends (it was "price returns only" data) which would
have only strengthened the findings.
Benjamin Graham, the father of securities analysis, said it best: "A serious
investor is not likely to believe that the day-to-day or even month-to-month
fluctuations of the stock market make him richer or poorer".
4
<Page>
PORTFOLIO UPDATE
The 15 largest holdings represent approximately 37% of the total portfolio.
These 15 companies have an average price-to-book ratio of 2.7x and an average
dividend yield of 2.1%. In contrast, the S&P 500 has a price-to-book ratio of
about 4.4x and a current dividend yield of 1.7%.
[CHART]
ARISTATA EQUITY FUND
SECTOR PROFILE as of October 31, 2003
<Table>
BASIC MATERIALS 6.8%
TELECOMMUNICATIONS 4.1%
BUILDING/REAL ESTATE 5.9%
CONSUMER DURABLES 2.3%
CONSUMER STAPLES 10.2%
ELECTIC & GAS UTILITIES 6.9%
ENERGY 12.3%
FINANCIAL 9.0%
HEALTHCARE 16.8%
TECHNOLOGY 12.0%
INDUSTRIAL PRODUCTS & SERVICES 10.6%
TRANSPORTATION 2.0%
SHORT-TERM INVESTMENTS 0.7%
*OTHER ASSETS IN EXCESS OF LIABLITIES 0.4%
</Table>
FIFTEEN LARGEST HOLDINGS(2) - AS OF OCTOBER 31,2003
<Table>
<Caption>
SECTOR % OF DIVIDEND PRICE/BOOK
COMPANY REPRESENTATION INVESTMENTS YIELD VALUE RATIO
- -----------------------------------------------------------------------------------------------------------
Abbott Laboratories Healthcare 3.3% 2.3% 5.6
Westport Resources Energy 2.7% 0.0% 1.4
Valero Energy Corp. Energy 2.7% 1.1% 1.0
Questar Corp. Electric & Gas Utilities 2.5% 2.6% 2.2
Int'l Business Machines Corp. Technology 2.5% 0.7% 5.6
Emerson Electric Co. Industrial Products & Svcs. 2.4% 2.8% 3.7
Hewlett-Packard Co. Technology 2.4% 1.4% 1.8
Albertson's, Inc. Consumer Staples 2.4% 3.7% 1.4
FileNet Corp. Technology 2.4% 0.0% 3.7
Amgen, Inc. Healthcare 2.4% 0.0% 4.1
BP PLC Energy 2.3% 3.6% 2.3
Kennametal, Inc. Industrial Products & Svcs. 2.3% 1.8% 1.8
Vulcan Materials Co. Building/Real Estate 2.3% 2.2% 2.6
Snap On, Inc. Industrial Products & Svcs. 2.2% 3.4% 1.8
Duke Realty Corp. Building/Real Estate 2.2% 6.3% 1.9
FIFTEEN LARGEST HOLDINGS 37.0% 2.1% AVG. 2.7 x AVG.
STANDARD & POOR'S 500 1.7% 4.4
</Table>
5
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE ARISTATA EQUITY FUND,
THE S&P 500, VALUE LINE COMPOSITE, AND THE LIPPER MULTI-CAP VALUE FUND INDEX.
Equity
<Table>
<Caption>
ARISTATA EQUITY FUND S&P 500* VALUE LINE COMPOSITE LIPPER MULTI-CAP VALUE FUND INDEX
3/2/1998 10000 10000 10000 10000
10410 10513 10437 10449
10454 10620 10477 10508
10229 10431 10051 10275
10189 10856 10003 10264
9997 10743 9367 9867
8775 9188 7728 8358
9279 9775 8087 8704
9933 10575 8632 9420
10244 11214 8986 9827
10607 11861 9279 9990
10359 12360 9166 10025
10177 11972 8652 9792
10445 12451 8731 10062
4/30/1999 11435 12937 9518 10957
11598 12624 9634 10900
12001 13325 9981 11251
11718 12911 9721 10868
11490 12844 9303 10494
10886 12492 8984 10041
10897 13283 8932 10352
11083 13553 9044 10347
11326 14351 9311 10583
11001 13631 8864 10127
10677 13373 8712 9594
11639 14681 9296 10608
4/30/2000 11689 14240 9113 10588
11939 13943 8889 10735
11599 14290 8872 10502
11549 14069 8916 10591
12264 14937 9492 11263
12122 14148 9160 11107
12298 14088 8940 11371
11908 12977 8237 10951
12456 13041 8608 11603
12786 13504 9219 12041
12511 12272 8657 11712
12107 11495 8094 11301
4/30/2001 12894 12388 8636 12034
13239 12471 8861 12300
12539 12167 8781 12092
12526 12048 8544 12076
12249 11293 8108 11628
11135 10381 6851 10436
11371 10579 7180 10651
12107 11391 7812 11422
12337 11491 8164 11753
12159 11323 8017 11600
12144 11105 7792 11448
12594 11522 8377 12033
4/30/2002 12251 10824 8167 11679
12087 10757 7865 11668
11194 9991 7212 10775
9999 9212 6195 9881
10216 9273 6158 10038
8989 8265 5469 8950
9519 8993 5731 9429
10253 9510 6304 10131
9995 8952 5932 9684
9588 8717 5748 9484
9400 8586 5536 9241
9527 8670 5530 9276
4/30/2003 10138 9384 6078 10082
10,766 9,878 10,924 6,697
10,952 10,004 11,004 6,798
10,983 10,181 11,156 7,090
11,438 10,379 11,505 7,402
11,157 10,269 11,373 7,276
10/31/2003 11,676 10,850 11,999 7,808
</Table>
PERFORMANCE
AS OF OCTOBER 31,2003
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURN(1) 1 YEAR 3 YEAR 5 YEAR SINCE INCEPTION (3/2/98)
Aristata Equity Fund 22.64% (1.72)% 3.28% 2.77%
S&P 500 Index 20.80% (8.34)% 0.51% 1.45%
Value Line Composite Index 36.23% (4.41)% (1.99)% (4.27)%
Lipper Multi-Cap Value Fund Index 27.27% 1.81% 4.96% 3.27%
</Table>
THE TOTAL RETURN FIGURES REPRESENT PAST PERFORMANCE AND ARE NOT INDICATIVE OF
FUTURE RESULTS. THE GRAPH AND PERFORMANCE TABLE DO NOT REFLECT THE DEDUCTION OF
TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF
SHARES.
6
<Page>
FUND REVIEW
ARISTATA QUALITY BOND FUND AND ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
PERFORMANCE
The Aristata Quality Bond Fund's total return for the six months ending October
31, 2003 was (0.27)%. The Lehman Brothers Government/Credit Bond Index and the
Lehman Brothers Intermediate Government/Credit Bond Index registered returns of
0.62% and 0.96% respectively. Net assets of the Aristata Quality Bond Fund were
$13.9 million as of October 31st. The Aristata Colorado Quality Tax-Exempt Fund
had net assets of $13.1 million at the same ending period, while its six month
total return was 0.58%. Returns for the Lipper Municipal Intermediate Bond and
the Lehman Brothers Municipal Index were 1.27% and 1.47% respectively.
FIXED INCOME MARKET REVIEW
The Federal Reserve most recently kept the Federal Funds rate unchanged at 1%, a
45 year low, during their October 28th Federal Open Market Committee meeting.
The Federal Reserve has indicated they intend to keep short-term interest rates
(Fed Funds) low for an extended period, citing their concern over lingering
imbalances still at work in the U.S. economy.
Unemployment levels remain troublesome although the Federal Reserve has noted
that the job market may appear to be stabilizing. The Federal Reserve has also
maintained their accommodative monetary policy as inflation continues to remain
at low levels.
The 10-year Treasury bond ended October 31st at 4.29%, above the low of 3.10% in
June, but below the 4.60% yield in early September. Third quarter GDP (Gross
Domestic Product) rose at a healthy 7.2% annual rate. This growth rate has been
attributed in part to consumer spending, led by federal tax cuts and rebate
checks.
Moving forward, the pace of the U.S. economic recovery and inflation
expectations are likely to remain key factors in determining the outlook and
direction of interest rates.
7
<Page>
PORTFOLIO UPDATE
ARISTATA QUALITY BOND FUND
As the U.S. economic recovery process moves ahead in a gradual and uneven
manner, we continue to focus on high quality corporate and U.S. government
agency issues. The corporate bond sector has provided improving total returns
alongside an advancing equity market. Several companies have taken advantage of
the overall level of low interest rates to finance their debt and have issued
new corporate bonds.
As of October 31st, the Aristata Quality Bond Fund held 55.9% in
investment-grade corporate bonds and 38.3% in U.S. Government and agency
obligations. The Fund's average maturity on October 31st was 8.0 years.
[CHART]
ARISTATA QUALITY BOND FUND
SECTOR PROFILE as of October 31, 2003*
<Table>
SHORT-TERM INVESTMENTS 4.8%
U.S. GOVERNMENT & AGENCY OBLIGATIONS 38.3%
COMMUNICATIONS 1.9%
ELECTRIC UTILITIES 1.0%
FINANCIAL 22.8%
INDUSTRIAL 30.2%
*OTHER ASSETS IN EXCESS OF LIABILITIES 1.0%
</Table>
[CHART]
ARISTATA QUALITY BOND FUND
QUALITY PROFILE (3) as of October 31, 2003
<Table>
Baa 3.2%
Aaa 44.4%
A 34.9%
Aa 17.5%
</Table>
8
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE ARISTATA QUALITY BOND
FUND, THE LEHMAN BROTHERS GOVERNMENT/CREDIT BOND INDEX AND THE LEHMAN BROTHERS
INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX.
<Table>
<Caption>
ARISTATA QUALITY LEHMAN BROTHERS LEHMAN BROTHERS INTERMEDIATE
BOND FUND GOV'T/CREDIT BOND INDEX* GOV'T/CREDIT BOND INDEX LIPPER CORP. "A" RATED
3/2/1998 10000 10000 10000 10000
10030 10031 10032 10037.4
10069 10081 10082 10083.5
10158 10189 10156 10192.7
10218 10293 10221 10283.2
10251 10301 10256 10285
10400 10502 10418 10376.7
10636 10802 10679 10608.5
10585 10726 10669 10474.5
10602 10790 10667 10588.3
10641 10816 10710 10622.7
10687 10893 10769 10712.7
10537 10633 10610 10475.1
10599 10687 10690 10543.8
4/30/1999 10622 10713 10723 10578.4
10542 10603 10641 10458.2
10519 10570 10648 10407.2
10508 10541 10639 10360.6
10495 10532 10647 10332.1
10603 10627 10746 10430.7
10613 10655 10774 10446.6
10611 10648 10787 10453.8
10569 10583 10751 10406.2
10507 10580 10712 10383.7
10597 10712 10799 10493.6
10702 10867 10912 10636
4/30/2000 10652 10813 10887 10549.2
10663 10804 10904 10508.5
10862 11024 11096 10742.7
10916 11141 11180 10833.8
11044 11298 11312 10977.8
11139 11341 11415 11038.6
11149 11412 11468 11085
11303 11607 11624 11248.8
11483 11836 11838 11479.1
11647 12035 12032 11692.7
11779 12159 12146 11798.3
11863 12215 12239 11840.1
4/30/2001 11859 12123 12208 11773.1
11916 12194 12276 11850.6
11951 12252 12321 11898.5
12142 12557 12578 12168.6
12241 12718 12703 12305.9
12410 12835 12889 12353.8
12556 13161 13103 12620.1
12481 12945 12972 12467
12425 12843 12901 12373.3
12481 12936 12968 12459.9
12538 13046 13070 12552.6
12366 12782 12871 12352
4/30/2002 12552 13030 13084 12571.3
12664 13151 13216 12667
12808 13263 13330 12721.5
12973 13422 13487 12797.6
13113 13722 13688 13032.2
13299 14017 13933 13234.1
13287 13883 13879 13101.2
13210 13890 13865 13147.7
13466 14258 14167 13433.6
13451 14258 14165 13462.3
13625 14512 14365 13658.5
13587 14493 14380 13648.5
4/30/2003 13673 14648 14489 13801.1
13,921 15,064 14,780 14,089
13,883 15,004 14,770 14,057
13,378 14,375 14,368 13,575
13,427 14,470 14,402 13,665
13,794 14,928 14,767 14,039
10/31/2003 13,635 14,739 14,628 13,922
</Table>
PERFORMANCE
AS OF OCTOBER 31, 2003
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURN (1) 1 YEAR 3 YEAR 5 YEAR SINCE INCEPTION (3/2/98)
Aristata Quality Bond Fund 2.62% 6.94% 5.19% 5.62%
Lehman Bros. Gov't/Credit Bond Index 6.18% 8.90% 6.56% 7.09%
Lehman Bros. Intermediate Gov't/Credit Bond Index 5.41% 8.45% 6.52% 6.94%
Lipper Corporate Debt Funds A Rated Index 6.27% 7.89% 5.86% 6.01%
</Table>
THE TOTAL RETURN FIGURES REPRESENT PAST PERFORMANCE AND ARE NOT INDICATIVE OF
FUTURE RESULTS. THE GRAPH AND PERFORMANCE TABLE DO NOT REFLECT THE DEDUCTION OF
TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF
SHARES.
9
<Page>
PORTFOLIO UPDATE
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
The Aristata Colorado Quality Tax-Exempt portfolio continues to emphasize high
quality municipal issues with 81.7% of the holdings AAA rated. Increased
pressures on state and local finances have led many states to raise taxes and
cut expenses in an effort to close budget gaps. High quality municipals have
continued to provide a stabilized level of tax exempt income in this
environment.
The Fund's average maturity on October 31st was 9.4 years with a diversified mix
of securities. As the upcoming municipal elections take place, we will monitor
and evaluate the forward supply of new Colorado issues in order to provide
tax-exempt income to our shareholders.
[CHART]
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
SECTOR PROFILE as of October 31, 2003*
<Table>
PREREFUNDED BONDS 3.1%
GENERAL OBLIGATION BONDS 37.0%
REVENUE BONDS 55.5%
*OTHER ASSETS IN EXCESS OF LIABILITIES 4.4%
</Table>
[CHART]
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
QUALITY PROFILE (3) as of October 31, 2003
<Table>
A 3.3%
Aa 15.0%
Aaa 81.7%
</Table>
10
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE ARISTATA COLORADO
QUALITY TAX-EXEMPT FUND, THE LIPPER MUNICIPAL INTERMEDIATE BOND FUND INDEX, THE
LEHMAN BROTHERS MUNICIPAL BOND INDEX, AND THE LIPPER COLORADO MUNICIPAL FUND
AVERAGE.
<Table>
<Caption>
ARISTATA COLORADO QUALITY LEHMAN BROTHERS MUNICIPAL LIPPER MUNICIPAL INTERMEDIATE LIPPER COLORADO MUNICIPAL
TAX-EXEMPT FUND BOND INDEX BOND FUND INDEX* FUND AVERAGE
3/2/1998 10000 10000 10000 10000
10061 10009 10007 10004
10022 9976 9960 9942
10154 10121 10094 10098
10176 10161 10128 10132
10200 10186 10151 10153
10330 10344 10298 10303
10423 10473 10409 10426
10446 10473 10413 10401
10455 10510 10435 10441
10494 10536 10469 10458
10605 10662 10586 10565
10563 10615 10530 10503
10551 10630 10527 10502
4/30/1999 10564 10656 10556 10527
10517 10594 10493 10456
10410 10442 10350 10281
10464 10480 10399 10301
10440 10396 10352 10181
10460 10400 10357 10148
10415 10288 10284 10008
10478 10397 10372 10087
10446 10319 10325 9990
10418 10274 10279 9906
10506 10394 10358 10039
10620 10621 10507 10251
4/30/2000 10582 10559 10462 10190
10546 10504 10419 10118
10752 10782 10634 10374
10839 10932 10755 10512
10940 11100 10888 10665
10916 11042 10856 10607
10993 11163 10947 10717
11049 11248 10999 10788
11224 11525 11220 11071
11349 11640 11350 11129
11381 11677 11386 11181
11438 11782 11474 11266
4/30/2001 11374 11655 11370 11122
11479 11781 11487 11247
11549 11859 11558 11343
11641 12035 11698 11525
11786 12234 11875 11737
11794 12192 11858 11672
11887 12337 11972 11789
11810 12233 11848 11690
11728 12117 11758 11592
11893 12327 11929 11751
12010 12476 12063 11882
11820 12231 11844 11662
4/30/2002 12013 12470 12074 11863
12097 12546 12139 11931
12214 12679 12263 12049
12334 12842 12405 12202
12432 12996 12519 12324
12625 13281 12737 12584
12488 13061 12544 12341
12439 13006 12493 12287
12670 13280 12740 12552
12644 13247 12694 12492
12810 13433 12870 12668
12804 13441 12866 12668
4/30/2003 12877 13529 12948 12778
13,144 13,846 13,211 13,047
13,062 13,786 13,150 12,960
12,645 13,304 12,752 12,501
12,708 13,404 12,847 12,607
13,044 13,798 13,176 12,953
10/31/2003 12,951 13,729 13,112 12,896
</Table>
PERFORMANCE
AS OF OCTOBER 31,2003
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURN (1) 1 YEAR 3 YEAR 5 YEAR SINCE INCEPTION (3/2/98)
Aristata Colorado Quality Tax-Exempt Fund 3.70% 5.62% 4.39% 4.67%
Lehman Brothers Municipal Bond Index 5.11% 7.14% 5.56% 5.75%
Lipper Municipal Intermediate Bond Fund Index 4.53% 6.20% 4.72% 4.90%
Lipper Colorado Municipal Fund Average 4.51% 6.37% 4.39% 4.59%
</Table>
THE TOTAL RETURN FIGURES REPRESENT PAST PERFORMANCE AND ARE NOT INDICATIVE OF
FUTURE RESULTS. THE GRAPH AND PERFORMANCE TABLE DO NOT REFLECT THE DEDUCTION OF
TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF
SHARES.
NOTES TO FUND REVIEW
(1) TOTAL RETURN IS THE CHANGE IN THE VALUE OF AN INVESTMENT IN THE FUND AFTER
REINVESTING ALL INCOME AND CAPITAL GAINS. IT IS CALCULATED BY DIVIDING THE
CHANGE IN TOTAL INVESTMENT VALUE BY THE INITIAL VALUE OF THE INVESTMENT. TOTAL
RETURN FIGURES ARE NET OF ALL FUND EXPENSES AND REFLECT ALL FEE WAIVERS. WITHOUT
THESE FEE WAIVERS, TOTAL RETURN WOULD HAVE BEEN LOWER. THE INCEPTION DATE OF
EACH FUND IS MARCH 2, 1998. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE TOTAL RETURN FIGURES REPRESENT
PAST PERFORMANCE AND ARE NOT INDICATIVE OF FUTURE RESULTS.
(2) THE FIFTEEN LARGEST HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE
EQUITY SECURITIES THAT THE FUND HOLDS AT 10/31/03, AND MAY NOT BE REPRESENTATIVE
OF THE FUND'S CURRENT OR FUTURE INVESTMENTS.
(3) QUALITY PROFILE BASED ON EACH SECURITY'S RATING FROM MOODY'S. FOR THOSE
RATINGS NOT AVAILABLE FROM MOODY'S, S&P RATINGS WERE USED.
THE VIEWS EXPRESSED IN THIS ADVISER UPDATE REFLECT THE ADVISER'S VIEW ONLY
THROUGH 10/31/03. THE ADVISER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON
MARKET AND OTHER CONDITIONS.
11
<Page>
DEFINITION OF INDICES
The LEHMAN BROTHERS GOVERNMENT/CREDIT BOND INDEX and the LEHMAN BROTHERS
INTERMEDIATE GOVERNMENT/ CREDIT BOND INDEX are unmanaged indices that are a
broad measure of bond performance that reflect the reinvestment of income
dividends and capital gain distributions, if any, but do not reflect fees,
brokerage commissions, or other expenses of investing. Intermediate indices
include bonds with maturities of up to ten years.
The LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index that is a broad
measure of tax-exempt bond performance that reflects the reinvestment of income
dividends and capital gain distributions, if any, but does not reflect fees,
brokerage commissions, or other expenses of investing.
The LIPPER COLORADO MUNICIPAL BOND FUND AVERAGE is the average return of all
bond funds tracked by Lipper that limit their assets to those securities exempt
from taxation in the state of Colorado. The average return reflects the
reinvestment of income dividends and capital gain distributions, if any.
The LIPPER CORPORATE DEBT FUNDS A RATED INDEX is an unmanaged index that
measures the performance of funds that invest at least 65% of their assets in
corporate debt issues rated "A" or better or government issues.
The LIPPER MULTI-CAP VALUE FUND INDEX is an unmanaged index of funds, that by
portfolio practice, invest in a variety of market capitalization ranges, without
concentrating 75% of their equity assets in any one market capitalization range
over an extended period of time. Multi-Cap Value funds seek long-term growth of
capital by investing in companies that are considered to be undervalued relative
to a major unmanaged stock index based on price-to-current earnings, book value,
asset value, or other factors. These funds will normally have a below-average
price-to-earnings ratio, price-to-book ratio, and three-year earnings growth
figure, compared to the U.S. diversified multi-cap funds universe average.
The LIPPER MUNICIPAL INTERMEDIATE BOND FUND INDEX is an unmanaged index that
measures the performance of intermediate municipal debt funds (i.e. those with
dollar-weighted average maturities of 5 to 10 years). The index return reflects
the reinvestment of income dividends and capital gain distributions, if any.
The STANDARD & POOR'S 500 INDEX (S&P 500) is an unmanaged index containing
common stocks of 500 industrial, transportation, utility and financial
companies, regarded as generally representative of the U.S. stock market. The
return per the total return index reflects the reinvestment of income dividends
and capital gain distributions, if any, but does not reflect fees, brokerage
commissions, or other expenses of investing.
The VALUE LINE COMPOSITE INDEX is an unmanaged equally weighted geometric
average composed of approximately 1700 stocks traded on the New York Stock
Exchange, American Stock Exchange, and over- the-counter that are tracked by the
Value Line Investment Survey. The index return reflects the reinvestment of
income dividends and capital gain distributions, if any, but does not reflect
fees, brokerage commissions, or other expenses of investing.
12
<Page>
STATEMENTS OF INVESTMENTS - OCTOBER 31, 2003 (UNAUDITED)
ARISTATA EQUITY FUND
<Table>
<Caption>
SHARES VALUE*
------------- -------------
COMMON STOCKS - 98.84%
BASIC MATERIALS - 6.78%
AGRICULTURE - 3.07%
Archer Daniels Midland Co. 28,300 $ 406,105
Deere & Co 8,000 484,960
-------------
891,065
-------------
CHEMICAL - 1.39%
DU Pont (EI) DE Nemours 10,000 404,000
-------------
PAPER/PACKAGING - 2.32%
Wausau-Mosinee Paper Corp. 26,000 321,360
International Paper Co 9,000 354,150
-------------
675,510
-------------
TOTAL BASIC MATERIALS 1,970,575
-------------
BUILDING/REAL ESTATE - 5.88%
BUILDING MATERIALS - 2.29%
Vulcan Materials Co. 15,000 664,650
-------------
R.E.I.T./REAL ESTATE - 3.59%
Archstone Community Trust 15,000 400,500
Duke Realty Corp. 22,000 644,160
-------------
1,044,660
-------------
TOTAL BUILDING/REAL ESTATE 1,709,310
-------------
CONSUMER DURABLES - 2.30%
HOUSEHOLD GOODS - 2.30%
LA-Z-Boy Inc. 16,400 331,280
Mattel Inc. 17,500 338,800
-------------
670,080
-------------
TOTAL CONSUMER DURABLES 670,080
-------------
CONSUMER STAPLES - 10.16%
FOOD/BEVERAGE - 2.37%
Albertson's, Inc. 34,000 689,860
-------------
PACKAGED GOODS - 1.87%
Avon Products, Inc. 8,000 543,680
-------------
RETAIL - 4.73%
BJ's Wholesale Club** 16,000 $ 411,040
Dollar General Corp. 20,000 449,400
Target Corp. 12,900 512,646
-------------
1,373,086
-------------
TEXTILE/APPAREL - 1.19%
Jones Apparel Group 10,000 345,000
-------------
TOTAL CONSUMER STAPLES 2,951,626
-------------
ELECTRIC & GAS UTILITIES - 6.90%
ELECTRIC UTILITIES - 3.15%
Duke Energy Corp. 20,400 370,260
Xcel Energy Inc. 33,190 544,316
-------------
914,576
-------------
GAS UTILITIES - 3.75%
Nicor Inc. 10,500 359,835
Questar Corp. 23,000 730,250
-------------
1,090,085
-------------
TOTAL ELECTRIC & GAS UTILITIES 2,004,661
-------------
ENERGY - 12.30%
OIL FIELD SERVICES - 1.97%
Baker Hughes, Inc. 8,000 226,080
Transocean Inc.** 18,000 345,420
-------------
571,500
-------------
OIL & GAS - 8.95%
BP PLC 15,780 668,756
Kerr-McGee Corp. 8,500 352,750
Valero Energy Corp. 18,500 789,950
Westport Resources Corp.** 33,000 790,020
-------------
2,601,476
-------------
COAL - 1.38%
Peabody Energy Corp. 12,000 399,960
-------------
TOTAL ENERGY 3,572,936
-------------
</Table>
13
<Page>
<Table>
<Caption>
SHARES VALUE*
------------- -------------
FINANCIAL- 9.03%
BANKS/S & L/FINANCE/LEASE - 3.73%
PNC Financial Services Group 9,100 $ 487,487
Wachovia Corp. 13,000 596,310
-------------
1,083,797
-------------
BROKERS/FINANCIAL SERVICES - 3.30%
Gallagher Arthur J & Co. 12,900 376,551
Marsh & McLennan Cos., Inc. 13,600 581,400
-------------
957,951
-------------
INSURANCE - 2.00%
Allstate Corp. 14,720 581,440
-------------
TOTAL FINANCIAL 2,623,188
-------------
HEALTHCARE - 16.75%
DRUGS - 11.20%
Abbott Laboratories 22,100 941,902
Amgen, Inc.** 11,000 679,360
Barr Laboritories Inc.** 6,000 460,620
Merck & Co Inc. 8,000 354,000
Mylan Laboratories 16,875 407,531
Schering-Plough Corp. 27,000 412,290
-------------
3,255,703
-------------
MEDICAL PRODUCTS - 3.85%
Cardinal Health, Inc. 9,000 534,060
Pall Corp. 25,000 585,000
-------------
1,119,060
-------------
HEALTHCARE SERVICES - 1.70%
Medco Health Solutions Inc.** 14,844 492,821
-------------
TOTAL HEALTHCARE 4,867,584
-------------
INDUSTRIAL PRODUCTS & SERVICES - 10.57%
AEROSPACE - 1.59%
Boeing Co 12,000 461,880
-------------
BUSINESS INFO/SERV. - 2.04%
Maximus Inc.** 17,000 593,470
-------------
ELECTRICAL PRODUCTS - 2.42%
Emerson Electric Co. 12,400 $ 703,700
-------------
INDUSTRIAL COMPONENTS - 4.52%
Kennametal, Inc. 18,100 667,528
Snap On, Inc. 22,000 645,480
-------------
1,313,008
-------------
TOTAL INDUSTRIAL PRODUCTS
& SERVICES 3,072,058
-------------
TECHNOLOGY - 11.98%
COMPUTERS/PERIPHERAL - 4.85%
Hewlett-Packard Co. 31,100 693,841
International Business
Machines Corp. 8,000 715,840
-------------
1,409,681
-------------
ELECTRONICS - 3.46%
Anixter International, Inc.** 18,700 446,556
Flextronics International** 40,000 560,000
-------------
1,006,556
-------------
SOFTWARE/SYSTEM SUPPORT - 3.67%
Electronic Data Systems Corp. 18,000 386,100
FileNET Corp.** 25,500 681,360
-------------
1,067,460
-------------
TOTAL TECHNOLOGY 3,483,697
-------------
TELECOMMUNICATIONS - 4.15%
COMMUNICATIONS - 4.15%
Bellsouth Corp. 24,100 634,071
Verizon Communications, Inc. 17,000 571,200
-------------
1,205,271
-------------
TOTAL TELECOMMUNICATIONS 1,205,271
-------------
</Table>
14
<Page>
<Table>
<Caption>
SHARES VALUE*
------------- -------------
TRANSPORTATION - 2.04%
RAILS/TRUCK/MARINE - 2.04%
Teekay Shipping Corp. 7,000 $ 336,910
U.S. Freightways Corp. 8,000 255,360
-------------
592,270
-------------
TOTAL TRANSPORTATION 592,270
-------------
TOTAL COMMON STOCKS 28,723,256
(Cost $19,894,193) -------------
SHORT-TERM INVESTMENTS - 0.73%
MUTUAL FUNDS - 0.73%
Fifth Third C/P Fund *** 211,389 211,389
-------------
TOTAL SHORT-TERM INVESTMENTS 211,389
(Cost $211,389) -------------
TOTAL INVESTMENTS 99.57% 28,934,645
(Cost $20,105,582)
Other Assets in
Excess of Liabilities 0.43% 124,703
-----------------------------
NET ASSETS 100.00% $ 29,059,348
=============================
</Table>
* See note 1 to financial statements.
** Denotes non-income producing security.
*** Related Party
ARISTATA QUALITY BOND FUND
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- -------- -------- ------------- ------------ ------------
U.S. GOVERNMENT &
AGENCY OBLIGATIONS - 38.28%
U.S. TREASURY NOTES - 13.40%
07/15/06 7.000% Aaa/AAA $ 650,000 $ 730,895
08/15/11 5.000% Aaa/AAA 690,000 736,494
08/15/12 4.375% Aaa/AAA 200,000 203,094
05/15/13 3.625% Aaa/AAA 200,000 191,555
------------
1,862,038
------------
U.S. TREASURY BONDS - 3.16%
05/15/10 10.000% Aaa/AAA 390,000 438,826
------------
438,826
------------
FEDERAL HOME LOAN BANK - 12.06%
06/11/18 5.000% Aaa/AAA 125,000 120,682
07/10/23 5.050% Aaa/AAA 155,000 140,541
08/19/09 7.050% Aaa/AAA 120,000 125,321
01/12/10 7.155% Aaa/AAA 120,000 127,258
02/09/15 8.000% Aaa/AAA 100,000 108,003
08/10/16 6.700% Aaa/AAA 230,000 238,868
12/29/16 6.650% Aaa/AAA 50,000 50,398
02/13/17 6.700% Aaa/AAA 100,000 101,430
03/08/17 6.500% Aaa/AAA 100,000 101,672
01/24/18 5.740% Aaa/AAA 125,000 126,613
05/09/18 5.350% Aaa/AAA 125,000 123,730
06/04/18 5.150% Aaa/AAA 100,000 97,531
08/08/18 5.500% Aaa/AAA 150,000 147,568
09/16/13 5.750% Aaa/AAA 65,000 66,142
------------
1,675,757
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.84%
10/12/16 6.105% Aaa/AAA 190,000 195,033
11/07/17 6.050% Aaa/AAA 200,000 200,094
------------
395,127
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 6.82%
03/10/16 8.200% Aaa/AAA 55,000 71,970
10/25/16 6.100% Aaa/AAA 120,000 123,727
12/28/16 6.780% Aaa/AAA 70,000 76,479
04/24/17 6.500% Aaa/AAA 70,000 75,689
11/07/17 5.750% Aaa/AAA 200,000 203,086
11/13/17 6.040% Aaa/AAA 200,000 204,277
06/04/18 5.000% Aaa/AAA 200,000 193,362
------------
948,590
------------
</Table>
15
<Page>
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- -------- -------- ------------- ------------ ------------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS $ 5,320,338
(Cost $5,077,359) ------------
CORPORATE BONDS - 55.84%
COMMUNICATIONS - 1.87%
Bellsouth Corp.
10/15/11 6.000% A1/A+ $ 120,000 129,818
SBC Communications Inc.
03/15/11 6.250% A1/A+ 120,000 130,512
------------
TOTAL COMMUNICATIONS 260,330
------------
ELECTRIC UTILITIES - 0.98%
Gulf Power Co.
08/15/04 7.050% A2/A 130,000 135,799
------------
TOTAL ELECTRIC UTILITIES 135,799
------------
FINANCIAL - 22.75%
AUTOMOBILE - 1.41%
Toyota Motor Credit
12/15/08 5.500% Aa1/AAA 180,000 196,190
------------
BANKS/S & L/FINANCE/LEASE - 9.79%
Bank of America Corp.
05/12/05 7.125% Aa2/A+ 230,000 248,273
Citicorp
08/15/05 6.750% Aa2/A+ 330,000 357,671
National City Corp.
05/15/19 6.875% A2/A 280,000 318,597
Wells Fargo & Co.
02/01/11 6.450% Aa1/AA- 100,000 111,927
Wells Fargo & Co.
11/15/14 5.000% Aa2/A+ 325,000 323,464
------------
1,359,932
------------
BROKERS/FINANCIAL SERVICES - 11.55%
Bear Stearns Co.
03/01/07 7.000% A1/A $ 120,000 $ 135,155
Bear Stearns Co.
07/02/18 4.650% A1/A 140,000 127,175
Charles Schwab Corp.
03/01/10 8.050% A3/A- 210,000 243,367
Credit Suisse First Boston Inc.
11/15/11 6.125% Aa3/AA- 300,000 324,724
Goldman Sachs Group Inc.
01/15/11 6.875% Aa3/A+ 120,000 135,908
Merrill Lynch & Co.
04/27/08 7.000% Aa3/A+ 330,000 375,009
Morgan Stanley Dean Witter & Co.
01/15/07 8.330% Aa3/A+ 230,000 264,405
------------
1,605,743
------------
TOTAL FINANCIAL 3,161,865
------------
INDUSTRIAL - 30.24%
AEROSPACE - 1.82%
United Technologies Corp.
05/15/12 6.100% A2/A 230,000 252,752
------------
BROADCASTING/ENTERTAINMENT - 1.81%
Walt Disney Co.
03/30/06 6.750% Baa1/BBB+ 230,000 251,111
------------
CHEMICALS - 2.65%
Dow Chemical Co.
02/01/11 6.125% A3/A- 350,000 368,797
------------
COMPUTER/PERIPHERAL - 1.48%
Hewlett Packard Co.
06/15/05 7.150% A2/A- 190,000 205,158
------------
DRUGS - 0.79%
Eli Lilly & Co.
03/15/12 6.000% Aa3/AA 100,000 109,285
------------
</Table>
16
<Page>
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- -------- -------- ------------- ------------ ------------
FOOD/BEVERAGE - 4.96%
Albertson's, Inc.
08/01/09 6.950% Baa2/BBB $ 70,000 $ 78,187
Anheuser Busch Co.
01/15/14 4.950% A1/A+ 175,000 176,045
Anheuser Busch Co.
10/15/16 5.050% A1/A+ 150,000 148,520
Coca Cola Enterprises Inc.
08/15/11 6.125% A2/A+ 140,000 153,805
Sara Lee Corp.
09/15/11 6.250% A3/A+ 120,000 132,674
------------
689,231
------------
HOUSEHOLD GOODS - 2.69%
Kimberly Clark Corp
02/15/12 5.625% Aa2/AA- 350,000 374,314
------------
MEDICAL PRODUCTS - 1.67%
Cardinal Health Inc.
06/15/15 4.000% A2/A 255,000 231,578
------------
METALS - 2.32%
Alcan Aluminum Ltd.
11/01/08 6.250% A2/A- 290,000 322,343
------------
PACKAGED GOODS - 3.47%
Fortune Brands, Inc.
04/01/08 6.250% A2/A 230,000 255,260
Estee Lauder Inc.
01/15/12 6.000% A1/A+ 210,000 227,556
------------
482,816
------------
PAPER/PACKAGING - 2.84%
Avery Dennison Corp.
04/15/05 6.750% A2/A 370,000 394,628
------------
RESTAURANTS - 1.48%
McDonalds Corp.
04/15/11 6.000% A2/A 190,000 206,094
------------
RETAIL - 2.26%
Target Corp.
04/01/07 5.500% A2/A+ $ 170,000 $ 184,201
03/01/12 5.875% A2/A+ 120,000 129,968
------------
314,169
------------
TOTAL INDUSTRIAL 4,202,276
------------
TOTAL CORPORATE BONDS 7,760,270
(Cost $7,198,402) ------------
<Caption>
SHARES
------------
SHORT-TERM INVESTMENTS
MUTUAL FUNDS - 4.84%
Fifth Third C/P Fund *** 384,436 384,436
Fifth Third Treasury Fund *** 288,483 288,483
------------
TOTAL SHORT-TERM INVESMENTS 672,919
(Cost $672,919) ------------
TOTAL INVESMENTS 98.96% 13,753,527
(Cost $12,948,680)
Other Assets in Excess 1.04% 144,239
of Liabilities ---------------------------
NET ASSETS 100.00% $ 13,897,766
===========================
</Table>
* See note 1 to financial statements.
** Ratings - The Moody's and S&P ratings are believed to be the most recent
ratings at October 31, 2003.
*** Related Party
17
<Page>
STATEMENTS OF INVESTMENTS - OCTOBER 31, 2003 (UNAUDITED)
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- -------- -------- ------------- ------------ ------------
COLORADO MUNICIPAL OBLIGATIONS - 95.57%
PREREFUNDED - 3.13%
Clear Creek County
School District, FSA
12/01/17 5.750% Aaa/AAA $ 100,000 $ 117,265
Colo Department of
Transportation, AMBAC
06/15/15 5.700% Aaa/AAA 250,000 292,533
------------
TOTAL PREREFUNDED 409,798
(Cost $345,986) ------------
GENERAL OBLIGATION BONDS - 37.00%
Adams County
School District #12, FGIC
12/15/09 5.250% Aaa/AAA 500,000 567,785
Adams County
School District #50
12/01/10 5.250% A1/AA- 500,000 543,035
Aspen, Colorado
Housing, Series B
12/01/20 5.000% Aa3/NR 175,000 180,211
Basalt Colorado
Sanitation District, AMBAC
12/01/18 5.000% Aaa/NR 125,000 131,102
Boulder County
Open Space
06/15/08 5.100% NR/AA 200,000 217,004
Boulder Valley
School District #Re-2, FGIC
12/01/13 5.000% Aaa/AAA 150,000 161,121
Carbon Valley
Pk & Rec, AMBAC
12/01/19 4.650% NR/AAA 150,000 153,039
Clear Creek County
School District #Re-1, FSA
12/01/13 4.300% NR/AAA 125,000 130,184
Denver Colorado
City & County
08/01/14 5.000% Aa1/AA+ 100,000 105,907
Denver Colorado
City & County
10/01/16 4.000% Aa1/AA+ 125,000 123,350
El Paso County School
District #20, FGIC
12/15/07 3.750% Aaa/AAA $ 150,000 $ 159,265
Garfield County
School District, FSA
12/01/15 4.300% Aaa/NR 125,000 128,149
Parker Colorado
Property District 1, AMBAC
12/01/12 4.550% Aaa/AAA 175,000 184,852
Pitkin County
School District 1, FGIC
12/01/20 5.000% Aaa/AAA 150,000 155,248
San Miguel County
School District #R-1, MBIA
12/01/06 5.200% Aaa/AAA 250,000 276,003
South Suburban
Park & Recreation District, FGIC
12/15/06 5.050% Aaa/AAA 500,000 519,985
Summit County
School District #Re-1, FGIC
12/01/07 5.250% Aaa/AAA 500,000 540,030
Thornton, FSA
12/01/07 5.150% Aaa/AAA 500,000 557,760
------------
TOTAL GENERAL OBLIGATION BONDS 4,834,030
(Cost $4,489,857) ------------
REVENUE BONDS - 55.44%
EDUCATION - 9.56%
Colorado EDL & Cultural
12/01/16 6.000% NR/AA 125,000 142,921
Colorado EDL & Cultural, AMBAC
06/01/20 5.000% Aaa/AAA 200,000 206,620
12/01/21 5.000% Aaa/NR 150,000 154,325
Colorado School of Mines, AMBAC
12/01/30 5.000% Aaa/AAA 100,000 100,495
Colorado State Board of Agriculture
Research Revenue, AMBAC
12/01/10 4.300% Aaa/NR 175,000 179,783
University of Colorado
Certificates of Participation,AMBAC
06/01/23 5.000% Aaa/AAA 150,000 152,897
</Table>
18
<Page>
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- -------- -------- ------------- ------------ ------------
REVENUE BONDS - 55.44%(CON'T)
EDUCATION - 9.56% (CON'T)
University of Colorado Enterprise
System Revenue Series A
06/01/16 5.100% Aa3/AA- $ 150,000 $ 159,789
University of Colorado Enterprise
System Revenue Series B, FGIC
06/01/24 5.000% Aaa/AAA 150,000 152,204
------------
1,249,034
------------
FINANCE - 11.56%
Aspen Colorado Sales Tax
11/01/10 5.000% NR/A 120,000 130,445
Boulder Colorado
Sales Tax, AMBAC
08/15/13 5.150% Aaa/AAA 100,000 108,216
Delta Colorado
Sales & Use Tax, FSA
12/01/11 4.000% Aaa/NR 100,000 104,293
Douglas County
Sales & Use Tax, MBIA
10/15/07 5.250% Aaa/AAA 300,000 327,831
Durango Colorado
Sales & Use Tax, FGIC
12/01/16 5.500% Aaa/AAA 200,000 221,570
Greeley Colorado
Sales & Use Tax, AMBAC
10/01/19 4.400% Aaa/AAA 125,000 125,238
Jefferson County
Open Space, FGIC
11/01/19 5.000% Aaa/AAA 100,000 104,287
Larimar County
Courts Cetificate, FSA
12/15/11 3.800% Aaa/AAA 150,000 154,353
Pitkin County
Sales Tax, FSA
12/01/11 4.000% Aaa/AAA 125,000 130,366
Vail Colorado
Sales Tax, MBIA
06/01/08 3.350% Aaa/NR 100,000 103,612
------------
1,510,211
------------
HOSPITAL - 1.86%
University of Colorado
Hospital Authority, AMBAC
11/15/09 5.000% Aaa/NR $ 220,000 $ 243,397
------------
MISCELLANEOUS-OTHER - 2.34%
Boulder County Colorado
(Atmospheric Research), MBIA
09/01/22 5.000% AaaAAA 200,000 204,284
Boulder County Colorado
Open Space, MBIA
07/15/14 4.000% Aaa/AAA 100,000 100,970
------------
305,254
------------
POWER - 2.56%
Adams County
Pollution Control, MBIA
04/01/08 5.625% Aaa/AAA 175,000 177,450
Pueblo County
Pollution Control, AMBAC
01/01/19 5.100% Aaa/AAA 150,000 156,564
------------
334,014
------------
TRANSPORTATION - 7.39%
Arapahoe County
Highway E-470, MBIA
08/31/05 5.150% Aaa/AAA 250,000 267,647
Colorado Department of
Transportation, MBIA
06/15/09 4.200% Aaa/AAA 225,000 241,085
Colorado Department of
Transportation, Series A
12/15/16 4.375% Aaa/AAA 125,000 128,182
Denver City & County
Airport, MBIA
11/15/16 5.750% Aaa/AAA 300,000 329,193
------------
966,107
------------
</Table>
19
<Page>
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- -------- -------- ------------- ------------ ------------
WATER/SEWER - 20.17%
Boulder Colorado
Water & Sewer
12/01/12 5.300% Aa2/AA+ $ 125,000 $ 138,334
Broomfield Colorado
Water Activity, MBIA
12/01/22 4.750% Aaa/AAA 125,000 125,756
Colorado Springs Utility
11/15/21 5.000% Aa2/AA 245,000 252,700
Colorado Water Reservoir
& Power Development Authority
09/01/07 5.250% Aaa/AAA 250,000 279,553
East Cherry Creek
Water & Sanitation, MBIA
11/15/17 4.600% Aaa/AAA 250,000 258,083
Fort Collins
Storm Drainage, AMBAC
12/01/20 4.875% Aaa/AAA 250,000 257,350
Fountain Valley
Authority Water Treatment
12/01/07 5.200% Aa2/AA 400,000 431,200
Golden Colorado
Water & Waste, FSA
11/15/22 4.950% Aaa/NR 150,000 153,384
Little Thompson
Water District, MBIA
12/01/18 5.800% Aaa/NR 150,000 169,950
Pagosa Area
Water & Sanitation, MBIA
12/01/14 4.000% Aaa/AAA 150,000 151,518
Pleasant View
Water and Sanitation District, MBIA
12/01/13 4.350% Aaa/AAA 125,000 130,111
Pueblo Colorado
Board Waterworks, FSA
11/01/09 5.250% Aaa/AAA 120,000 136,027
St. Charles Colorado
Mesa Water District, MBIA
12/01/20 4.600% NR/AAA 150,000 151,361
------------
2,635,327
------------
<Caption>
VALUE*
------------
TOTAL REVENUE BONDS $ 7,243,344
(Cost $6,825,168) ------------
TOTAL COLORADO MUNICIPAL
OBLIGATIONS 12,487,172
(Cost $11,661,011) ------------
TOTAL INVESTMENTS 95.57% 12,487,172
(Cost $11,661,011)
Other Assets in Excess
of Liabilities 4.43% 578,595
---------------------------
NET ASSETS 100.00% $ 13,065,767
===========================
</Table>
*See note 1 to financial statements.
**Ratings - The Moody's and S&P ratings are believed to be the most recent
ratings at October 31, 2003.
***The Aristata Colorado Quality Tax-Exempt Fund had the following insurance
concentration greater than 10% at October 31, 2003 (as a percentage of net
assets):
<Table>
MBIA 23.07%
FGIC 19.76%
AMBAC 18.72%
FSA 12.34%
</Table>
20
<Page>
STATEMENTS OF ASSETS AND LIABILITIES - OCTOBER 31, 2003 (UNAUDITED)
<Table>
<Caption>
COLORADO QUALITY
EQUITY QUALITY BOND TAX-EXEMPT
-------------------------------------------------------
ASSETS:
Investments, at value (Cost - see below) $ 28,934,645 $ 13,753,527 $ 12,487,172
Cash 0 0 327,638
Dividends receivable 43,451 0 0
Interest receivable 599 217,291 218,570
Receivable for portfolio shares sold 100,012 15,440 0
Receivable for investments sold 37,163 0 100,250
Prepaid and other assets 4,237 3,400 14
------------------------------------------------------
Total assets 29,120,107 13,989,658 13,133,644
------------------------------------------------------
LIABILITIES:
Payable for investments purchased 1,750 1,271 0
Payable for portfolio shares redeemed 0 63 0
Accrued investment advisory fee 22,052 6,348 5,911
Accrued administration fee 13,463 6,700 3,995
Dividends payable 0 51,295 38,813
Other payables 23,494 26,215 19,158
------------------------------------------------------
Total Liabilities 60,759 91,892 67,877
------------------------------------------------------
NET ASSETS $ 29,059,348 $ 13,897,766 $ 13,065,767
======================================================
COST OF INVESTMENTS $ 20,105,582 $ 12,948,680 $ 11,661,011
COMPOSITION OF NET ASSETS:
Paid in capital $ 20,695,309 $ 13,878,106 $ 12,102,038
(Over)/Undistributed net investment income 1,453 (224,342) 8,888
Accumulated net realized gain (loss) on investments (466,477) (560,845) 128,680
Net unrealized appreciation in value of investments 8,829,063 804,847 826,161
------------------------------------------------------
NET ASSETS $ 29,059,348 $ 13,897,766 $ 13,065,767
======================================================
NET ASSET VALUE PER SHARE:
Net Assets $ 29,059,348 $ 13,897,766 $ 13,065,767
Shares of beneficial interest outstanding 3,910,112 1,431,354 1,327,777
Net asset value and redemption price per share $ 7.43 $ 9.71 $ 9.84
</Table>
See notes to financial statements.
21
<Page>
STATEMENTS OF OPERATIONS - FOR THE SIX MONTHS ENDED OCTOBER 31, 2003 (UNAUDITED)
<Table>
<Caption>
COLORADO QUALITY
EQUITY QUALITY BOND TAX-EXEMPT
------------------------------------------------------
INVESTMENT INCOME:
Interest $ 3,432 $ 426,402 $ 312,334
Dividends 285,100 0 0
------------------------------------------------------
Total Income 288,532 426,402 312,334
------------------------------------------------------
EXPENSES:
Investment advisory fee (Note 4) 116,564 38,963 34,724
Administration fee (Note 4) 76,230 38,115 22,869
Legal 930 3,430 590
Printing 5,620 3,260 3,968
Registration 6,482 6,604 72
Audit 9,770 13,230 10,370
Custodian 2,152 1,677 1,802
Trustees 924 478 372
Insurance 532 792 566
Other 7,680 9,570 10,451
------------------------------------------------------
Total Expenses Before Waivers 226,884 116,119 85,784
Expenses waived by administrator (Note 4) (10,513) (5,288) (3,197)
------------------------------------------------------
Net Expenses 216,371 110,831 82,587
------------------------------------------------------
Net Investment Income 72,161 315,571 229,747
------------------------------------------------------
Net realized gain on investments 1,154,176 28,571 119,961
Change in net unrealized appreciation/depreciation 2,504,698 (363,761) (289,532)
------------------------------------------------------
Net gain (loss) on investments 3,658,874 (335,190) (169,571)
------------------------------------------------------
Net Increase (Decrease) in Net Assets From Operations $ 3,731,035 $ (19,619) $ 60,176
======================================================
</Table>
See notes to financial statements.
22
<Page>
STATEMENTS OF CHANGES IN NET ASSETS - EQUITY FUND
<Table>
<Caption>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003** APRIL 30, 2003
-------------------------------------------------
OPERATIONS:
Net investment income $ 72,161 $ 381,997
Net realized gain on investments 1,154,176 4,597,536
Change in net unrealized appreciation/depreciation 2,504,698 (18,777,911)
-------------------------------------------------
Net increase (decrease) in net assets from operations 3,731,035 (13,798,378)
-------------------------------------------------
DISTRIBUTIONS:
From net investment income (74,289) (407,670)
From net realized gain 0 (2,115,710)
-------------------------------------------------
Net decrease in net assets from distributions (74,289) (2,523,380)
-------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 1,869,253 3,844,850
Reinvested dividends 55,103 2,123,577
Cost of shares redeemed (802,884) (33,063,463)
-------------------------------------------------
Net increase (decrease) in net assets from
share transactions 1,121,472 (27,095,036)
NET INCREASE (DECREASE) IN NET ASSETS 4,778,218 (43,416,794)
-------------------------------------------------
NET ASSETS:
Beginning of period 24,281,130 67,697,924
-------------------------------------------------
End of period* $ 29,059,348 $ 24,281,130
=================================================
*Includes undistributed net investment income of: $ 1,453 $ 3,581
</Table>
**Unaudited
See notes to financial statements.
23
<Page>
STATEMENTS OF CHANGES IN NET ASSETS - QUALITY BOND FUND
<Table>
<Caption>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003** APRIL 30, 2003
-------------------------------------------------
OPERATIONS:
Net investment income $ 315,571 $ 1,201,017
Net realized gain on investments 28,571 1,103,817
Change in net unrealized appreciation/depreciation (363,761) 80,383
-------------------------------------------------
Net increase (decrease) in net assets from operations (19,619) 2,385,217
-------------------------------------------------
DISTRIBUTIONS:
From net investment income (315,572) (1,509,224)
-------------------------------------------------
Net decrease in net assets from distributions (315,572) (1,509,224)
-------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 1,893,631 3,306,781
Reinvested dividends 185,916 1,067,814
Cost of shares redeemed (4,264,485) (30,655,057)
-------------------------------------------------
Net decrease in net assets from
share transactions (2,184,938) (26,280,462)
NET DECREASE IN NET ASSETS (2,520,129) (25,404,469)
-------------------------------------------------
NET ASSETS:
Beginning of period 16,417,895 41,822,364
-------------------------------------------------
End of period* $ 13,897,766 $ 16,417,895
=================================================
*Includes overdistributed net investment income of: $ (224,342) $ (224,341)
</Table>
**Unaudited
See notes to financial statements.
24
<Page>
STATEMENTS OF CHANGES IN NET ASSETS - COLORADO QUALITY TAX-EXEMPT FUND
<Table>
<Caption>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003** APRIL 30, 2003
-------------------------------------------------
OPERATIONS:
Net investment income $ 229,747 $ 546,746
Net realized gain on investments 119,961 8,795
Change in net unrealized appreciation/depreciation (289,532) 418,742
-------------------------------------------------
Net increase in net assets from operations 60,176 974,283
-------------------------------------------------
DISTRIBUTIONS:
From net investment income (229,748) (546,152)
From net realized gain 0 (6,020)
-------------------------------------------------
Net decrease in net assets from distributions (229,748) (552,172)
-------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 209,618 1,634,243
Reinvested dividends 61,133 174,495
Cost of shares redeemed (1,004,220) (1,612,115)
-------------------------------------------------
Net increase (decrease) in net assets from
share transactions (733,469) 196,623
NET INCREASE (DECREASE) IN NET ASSETS (903,041) 618,734
-------------------------------------------------
NET ASSETS:
Beginning of period 13,968,808 13,350,074
-------------------------------------------------
End of period* $ 13,065,767 $ 13,968,808
=================================================
*Includes undistributed net investment income of: $ 8,888 $ 8,889
</Table>
**Unaudited
See notes to financial statements.
25
<Page>
FINANCIAL HIGHLIGHTS - EQUITY FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE SIX MONTHS
ENDED OCTOBER 31, FOR THE YEAR ENDED APRIL 30,
2003* 2003 2002 2001 2000 1999
-----------------------------------------------------------------------------------
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $ 6.47 $ 8.22 $ 9.34 $ 9.34 $ 11.11 $ 10.44
-----------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.02 0.07 0.10 0.11 0.12 0.14
Net realized and unrealized gain (loss)
on investments 0.96 (1.49) (0.58) 0.78 (0.01) 0.81
-----------------------------------------------------------------------------------
Total income gain (loss) from investment
operations 0.98 (1.42) (0.48) 0.89 0.11 0.95
-----------------------------------------------------------------------------------
DISTRIBUTIONS:
From net investment income (0.02) (0.07) (0.09) (0.11) (0.12) (0.14)
From net realized gain 0.00 (0.26) (0.55) (0.78) (1.76) (0.14)
-----------------------------------------------------------------------------------
Total distributions (0.02) (0.33) (0.64) (0.89) (1.88) (0.28)
-----------------------------------------------------------------------------------
Net asset value - end of period $ 7.43 $ 6.47 $ 8.22 $ 9.34 $ 9.34 $ 11.11
===================================================================================
TOTAL RETURN(3) 15.15%(2) (17.25)% (4.99)% 10.31% 2.23% 9.39%
===================================================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 29,059 $ 24,281 $ 67,698 $ 68,707 $ 73,076 $ 94,373
===================================================================================
Ratio of expenses to average net assets 1.57%(1) 1.29% 1.05% 1.05% 1.01% 0.95%
===================================================================================
Ratio of net investment income to
average net assets 0.52%(1) 1.10% 1.10% 1.14% 1.20% 1.41%
===================================================================================
Ratio of expenses to average net
assets without fee waivers 1.65%(1) 1.47% 1.17% 1.16% 1.09% 1.11%
===================================================================================
Ratio of net investment income to
average net assets without fee waivers 0.45%(1) 0.92% 0.99% 1.03% 1.12% 1.25%
===================================================================================
Portfolio turnover rate 19.98%(1) 17.82% 24.12% 27.47% 16.63% 25.26%
===================================================================================
</Table>
(1) Annualized
(2) Total returns for periods of less than one year are not annualized.
(3) Total return would have been lower had various fees not been waived during
the period.
*Unaudited
See notes to financial statements.
26
<Page>
FINANCIAL HIGHLIGHTS - QUALITY BOND FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE SIX MONTHS
ENDED OCTOBER 31, FOR THE YEAR ENDED APRIL 30,
2003* 2003 2002 2001 2000 1999
-----------------------------------------------------------------------------------
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $ 9.94 $ 9.75 $ 9.75 $ 9.32 $ 9.88 $ 9.97
-----------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.18 0.51 0.57 0.60 0.59 0.62
Net realized and unrealized gain (loss)
on investments (0.21) 0.34 (0.01) 0.43 (0.57) (0.08)
-----------------------------------------------------------------------------------
Total income (loss) from investment
operations (0.03) 0.85 0.56 1.03 0.02 0.54
-----------------------------------------------------------------------------------
DISTRIBUTIONS:
From net investment income (0.20) (0.66) (0.56) (0.60) (0.58) (0.61)
From net realized gain - - - - - (0.02)
-----------------------------------------------------------------------------------
Total distributions (0.20) (0.66) (0.56) (0.60) (0.58) (0.63)
-----------------------------------------------------------------------------------
Net asset value - end of period $ 9.71 $ 9.94 $ 9.75 $ 9.75 $ 9.32 $ 9.88
===================================================================================
TOTAL RETURN(3) (0.27)%(2) 8.93% 5.85% 11.33% 0.28% 5.49%
===================================================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 13,898 $ 16,418 $ 41,822 $ 42,399 $ 42,408 $ 51,980
===================================================================================
Ratio of expenses to average net assets 1.42%(1) 0.94% 0.70% 0.70% 0.68% 0.65%
===================================================================================
Ratio of net investment income to
average net assets 4.04%(1) 5.02% 5.75% 6.25% 6.16% 6.10%
===================================================================================
Ratio of expenses to average net
assets without fee waivers 1.49%(1) 1.06% 0.77% 0.79% 0.75% 0.76%
===================================================================================
Ratio of net investment income to
average net assets without fee waivers 3.97%(1) 4.91% 5.67% 6.16% 6.10% 5.99%
===================================================================================
Portfolio turnover rate 41.82%(1) 20.41% 32.04% 15.72% 10.06% 9.79%
===================================================================================
</Table>
(1) Annualized
(2) Total returns for periods of less than one year are not annualized.
(3) Total return would have been lower had various fees not been waived during
the period.
*Unaudited
See notes to financial statements.
27
<Page>
FINANCIAL HIGHLIGHTS - COLORADO QUALITY TAX-EXEMPT FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE SIX MONTHS
ENDED OCTOBER 31, FOR THE YEAR ENDED APRIL 30,
2003* 2003 2002 2001 2000 1999
-----------------------------------------------------------------------------------
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $ 9.95 $ 9.65 $ 9.58 $ 9.35 $ 9.89 $ 9.94
-----------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.17 0.38 0.45 0.46 0.46 0.49
Net realized and unrealized gain (loss)
on investments (0.11) 0.30 0.08 0.23 (0.45) 0.04
-----------------------------------------------------------------------------------
Total income from investment operations 0.06 0.68 0.53 0.69 0.01 0.53
-----------------------------------------------------------------------------------
DISTRIBUTIONS:
From net investment income (0.17) (0.38) (0.44) (0.46) (0.46) (0.49)
From net realized gain - - (0.02) - (0.09) (0.09)
-----------------------------------------------------------------------------------
Total distributions (0.17) (0.38) (0.46) (0.46) (0.55) (0.58)
-----------------------------------------------------------------------------------
Net asset value - end of period $ 9.84 $ 9.95 $ 9.65 $ 9.58 $ 9.35 $ 9.89
===================================================================================
TOTAL RETURN(3) 0.58%(2) 7.19% 5.62% 7.50% 0.16% 5.40%
===================================================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 13,066 $ 13,969 $ 13,350 $ 12,725 $ 13,799 $ 17,502
===================================================================================
Ratio of expenses to average net assets 1.19%(1) 0.86% 0.50% 0.50% 0.48% 0.45%
===================================================================================
Ratio of net investment income to
average net assets 3.30%(1) 3.86% 4.57% 4.81% 4.85% 4.85%
===================================================================================
Ratio of expenses to average net assets
without fee waivers and reimbursements 1.23%(1) 1.09% 1.03% 1.04% 0.93% 0.91%
===================================================================================
Ratio of net investment income to
average net assets without fee
waivers and reimbursements 3.26%(1) 3.62% 4.04% 4.27% 4.41% 4.40%
===================================================================================
Portfolio turnover rate 13.58%(1) 17.79% 15.91% 9.29% 12.41% 7.86%
===================================================================================
</Table>
(1) Annualized
(2) Total returns for periods of less than one year are not annualized.
(3) Total return would have been lower had various fees not been waived during
the period.
*Unaudited
See notes to financial statements.
28
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Financial Investors Trust, a Delaware business trust, is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company. The financial statements included herein relate to the
Trust's Aristata Family of Funds. The Aristata Family of Funds includes the
Equity Fund, Quality Bond Fund and Colorado Quality Tax-Exempt Fund. The
financial statements of the remaining portfolios of the Trust are presented
separately.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with accounting principles generally accepted in the
United States of America.
INVESTMENT VALUATION: Securities of the Fund are valued as of the close of
regular trading on the New York Stock Exchange, normally 4:00 p.m. (Eastern
time), on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sales price of the day
or, in the absence of sales, at values based on the average closing bid and
asked price. Securities for which market quotations are not readily available
are valued under procedures established by the Board of Trustees to determine
fair value in good faith. Short-term securities having a remaining maturity of
60 days or less are valued at amortized cost which approximates market value.
FEDERAL INCOME TAXES: It is the Funds' policy to comply with the provisions
of the Internal Revenue Code applicable to regulated investment companies and to
distribute all of their taxable income to shareholders. Therefore, no federal
income tax provision is required.
At April 30, 2003, the Aristata Equity Fund had available for federal income
tax purposes an unused capital loss carryover of $1,262,844 expiring April 30,
2011. At April 30, 2003, the Aristata Quality Bond Fund had available for
federal income tax purposes unused capital loss carryovers of $89,177, 344,380,
and 168,538 expiring April 30, 2008, 2009, and 2010, respectively.
EXPENSES: Most expenses of the Trust can be directly attributed to a Fund.
Expenses which cannot be directly attributed are apportioned among all funds in
the Trust based on average net assets.
DIVIDENDS: The Equity Fund will declare and pay dividends from net
investment income, if any, quarterly. Dividends from net investment income are
declared daily and paid monthly for the Quality Bond and Colorado Quality
Tax-Exempt Funds. Dividends from net realized gains, if any, are declared at
least once a year for each of the Funds. Dividends to shareholders are recorded
on the ex-dividend date.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS: Net investment income
(loss) and net realized gain (loss) may differ for financial statement and tax
purposes. The character of distributions made during the year from net
investment income or net realized gains (losses) may differ from its ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain (loss) was
recorded by the Fund.
OTHER: Investment transactions are accounted for on the date the investments
are purchased or sold (trade date). Dividend income is recorded on the
ex-dividend date. Interest income is accrued and recorded daily. Realized gains
and losses from investment transactions and unrealized appreciation and
depreciation of investments are reported on an identified cost basis which is
the same basis the Funds use for federal income tax purposes.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates.
29
<Page>
2. SHARES OF BENEFICIAL INTEREST
On October 31, 2003, there was an unlimited number of no par value shares of
beneficial interest authorized for each fund. Transactions in shares of
beneficial interest were as follows:
<Table>
<Caption>
COLORADO QUALITY
EQUITY FUND QUALITY BOND FUND TAX-EXEMPT FUND
--------------------------------------------------------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30,
2003 2003 2003 2003 2003 2003
--------------------------------------------------------------------------------
Shares sold 265,741 561,873 189,203 332,813 20,908 166,288
Shares issued as
reinvestment of dividends 7,818 320,954 18,904 107,672 6,180 17,732
Shares redeemed (115,251) (5,369,477) (428,446) (3,079,605) (102,783) (163,977)
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) 158,308 (4,486,650) (220,339) (2,639,120) (75,695) 20,043
===============================================================================================================
</Table>
3. UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS
<Table>
<Caption>
COLORADO QUALITY
EQUITY FUND QUALITY BOND FUND TAX-EXEMPT FUND
-------------------------------------------------------------------
As of October 31, 2003
Gross appreciation (excess of
value over tax cost) $ 9,568,739 $ 880,849 $ 828,626
Gross depreciation (excess of
tax cost over value) (739,676) (76,002) (2,465)
- ----------------------------------------------------------------------------------------------------
Net unrealized appreciation $ 8,829,063 $ 804,847 $ 826,161
====================================================================================================
Cost of investments for income
tax purposes $ 20,463,390 $ 12,884,690 $ 11,601,352
====================================================================================================
</Table>
4. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS
Tempest Investment Counselors, Inc. (the "Adviser") serves as investment
adviser to each Fund pursuant to separate investment advisory agreements (the
"Advisory Agreements") with the Trust. For its services, the Adviser is entitled
to receive a fee, computed daily and payable monthly, at the annual rate of
0.85%, 0.50% and 0.50% of the average net assets for the Equity Fund, Quality
Bond Fund and Colorado Quality Tax-Exempt Fund, respectively. Prior to October
1, 2002, the Adviser voluntarily agreed to waive a portion of its fees and/or
reimburse fund expenses to the extent necessary for the Equity, Quality Bond and
Colorado Quality Tax-Exempt Funds to maintain a total expense ratio of no more
than 1.05%, 0.70% and 0.50%, respectively.
ALPS Mutual Funds Services, Inc. ("ALPS") serves as the administrator to
each Fund. ALPS is entitled to receive a fee from each Fund, computed daily and
payable monthly, at the annual rate of .20% of the average net assets of each
Fund, subject to a minimum annual fee, effective October 1, 2002, of $150,000
for the Equity Fund, $75,000 for the Quality Bond Fund and $45,000 for the
Colorado Quality Tax-Exempt Fund. In addition to administration services, the
administration fee also covers the costs of fund accounting, shareholder
servicing and transfer agency. ALPS has voluntarily agreed to waive its minimum
annual fees to $146,500, $71,500 and $41,500 for the Aristata Equity, Quality
Bond, and Colorado Tax-Exempt Funds, respectively, for the period October 1,
2003 to September 30, 2004. These waivers are voluntary and may be terminated at
any time. For the period October 1, 2002 to September 20, 2003, ALPS
30
<Page>
voluntarily waived its minimum annual fees to $125,000, $62,500 and $37,500 for
the Aristata Equity, Quality Bond and Colorado Tax-Exempt Funds, respectively.
Prior to October 1, 2002, ALPS was entitled to receive a fee from each Fund at
the annual rate of 0.20% of the average net assets of each Fund, subject to a
minimum monthly fee of $15,000 for the Equity Fund, $7,500 for the Quality Bond
Fund, and $5,000 for the Colorado Quality Tax-Exempt Fund.
As of October 31, 2003, no shareholders of the Aristata Equity, Quality
Bond, and Colorado Quality Tax-Exempt Funds held more than 10% of the
outstanding shares of each respective Fund.
5. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from the sale of securities,
other than temporary cash investments, during the six months ended October 31,
2003 were as follows:
<Table>
<Caption>
U.S. GOVERNMENT
SECURITIES ALL OTHER TOTAL
----------------------------------------------------------
EQUITY FUND
Purchases $ - $ 4,131,903 $ 4,131,903
Sales $ - $ 2,633,783 $ 2,633,783
-----------------------------------------------------------------------------------
QUALITY BOND FUND
Purchases $ 1,841,899 $ 1,212,606 $ 3,054,505
Sales $ 2,158,176 $ 2,609,719 $ 4,767,895
-----------------------------------------------------------------------------------
COLORADO QUALITY
TAX-EXEMPT FUND
Purchases $ - $ 906,345 $ 906,345
Sales $ - $ 1,720,294 $ 1,720,294
-----------------------------------------------------------------------------------
</Table>
6. PROXY VOTING
Fund policies and procedures used in determining how to vote proxies
relating to portfolio securities is available without a charge, upon request, by
contacting Aristata Funds at 800.644.8595 or www.aristata.com and on the
Commission's website at http://www.sec.gov.
7. TRUSTEES
As of October 31, 2003, the Funds are three of seven separate series under
the Trust. The Trust's Board of Trustees oversees the overall management of each
series of the Trust and elects the officers of the Trust. The principal
occupations for the past five years of the Trustees and executive officers of
the Trust are listed below.
31
<Page>
INTERESTED TRUSTEES
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND PRINCIPAL OCCUPATION DURING THE PAST 5
POSITION(S) HELD NUMBER OF PORTFOLIOS YEARS* AND OTHER DIRECTORSHIPS HELD BY
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------------
W. Robert Alexander Trustee and W. Robert Alexander Mr. Alexander is the Chief Executive Officer
(76) Chairman was elected by the of ALPS Mutual Funds Services, Inc., and
initial shareholder in ALPS Distributors, Inc., which provide
1625 Broadway December 1993 and administration and distribution services,
Suite 2200 oversees 7 portfolios in respectively, for proprietary mutual fund
Denver, CO 80202 fund complex. complexes. Mr. Alexander was Vice Chairman
of First Interstate Bank of Denver,
responsible for Trust, Private Banking,
Retail Banking, Cash Management Services and
Marketing. Mr. Alexander is currently a
member of the Board of Trustees of the
Hunter and Hughes Trusts. Because of his
affiliation with ALPS Mutual Funds Services
and ALPS Distributors, Mr. Alexander is
considered an "interested" Trustee of the
Trust.
INDEPENDENT TRUSTEES
Mary K. Anstine (63) Trustee Mary K. Anstine was President/Chief Executive Officer, HealthONE
elected at a special Alliance, Denver, Colorado; Former Executive
1625 Broadway meeting of shareholders Vice President, First Interstate Bank of Denver.
Suite 2200 held on March 21, 1997 Ms. Anstine is currently a Director of the Trust
Denver, CO 80202 and oversees 7 portfolios of Colorado, Trustee of the Denver Area
in fund complex. Council of the Boy Scouts of America, a
Director of the Junior Achievement Board and
the Colorado Uplift Board, and a member of
the Advisory Boards for the Girl Scouts Mile
Hi Council and the Hospice of Metro Denver.
Formerly, Ms. Anstine served as a Director
of ALPS Distributors, Inc., from October
1995 to December 1996; Director of
HealthONE; a member of the American Bankers
Association Trust Executive Committee; and
Director of the Center for Dispute
Resolution.
</Table>
32
<Page>
INDEPENDENT TRUSTEES
<Table>
<Caption>
TERM OF OFFICE, LENGTH OF PRINCIPAL OCCUPATION DURING THE PAST 5
POSITION(S) HELD TIME SERVED AND NUMBER YEARS* AND OTHER DIRECTORSHIPS HELD BY
NAME, ADDRESS & AGE WITH FUNDS OF PORTFOLIOS OVERSEEN TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------------
Edwin B. Crowder (72) Trustee Edwin B. Crowder was Mr. Crowder currently operates a marketing
elected at a special meeting concern with operations in the U. S. and Latin
1625 Broadway of shareholders held America. He has previously engaged in business
Suite 2200 on March 21, 1997 and pursuits in the restaurant, oil and gas
Denver, CO 80202 oversees 7 portfolios in drilling, and real estate development
fund complex. industries. Mr. Crowder is a former Director of
Athletics and Head Football Coach at the
University of Colorado.
Robert E. Lee (68) Trustee Robert E. Lee was Mr. Lee has been a Director of Storage
appointed as a Trustee at Technology Corporation since 1989 and of
1625 Broadway the December 15, 1998, Equitable of Iowa since 1981. Mr. Lee was the
Suite 2200 meeting of the Board of Executive Director of The Denver Foundation
Denver, CO 80202 Trustees and oversees 7 from 1989 to 1996, and is currently the
portfolios in fund Executive Director of Emeritus. Mr. Lee is also
complex. a Director of Meredith Capital Corporation and
Source Capital Corporation.
John R. Moran, Jr. (73) Trustee John R. Moran was Mr. Moran is President of The Colorado
elected at a special Trust, a private foundation serving the health
1625 Broadway meeting of shareholders and hospital community in the State of
Suite 2200 held on March 21, 1997 Colorado. An attorney, Mr. Moran was formerly
Denver, CO 80202 and oversees 7 portfolios a partner with the firm of Kutak Rock
in fund complex. & Campbell in Denver, Colorado and a member
of the Colorado House of Representatives.
Currently, Mr. Moran is a member of the
Board of Directors and Treasurer of
Grantmakers in Health; a Director of the
Conference of Southwest Foundations; a
member of the Treasurer's Office Investment
Advisory Committee for the University of
Colorado; a Trustee of the Robert J. Kutak
Foundation; Director of the Colorado
Wildlife Heritage Foundation; and a member
of the Alumni Council of the University of
Denver College of Law.
</Table>
* Except as otherwise indicated, each individual has held the office shown or
other offices in the same company for the last five years.
33
<Page>
THIS PAGE INTENTIONALLY LEFT BLANK
<Page>
THESE FUNDS ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT, THE FDIC,
THE FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENTAL AGENCY OR INSURER.
INVESTMENT ADVISER
Tempest Investment Counselors, Inc.
1380 Lawrence Street
Suite 1050
Denver, Colorado 80204
ADMINISTRATOR, TRANSFER AGENT & FUND ACCOUNTANT
ALPS Mutual Funds Services, Inc.
1625 Broadway
Suite 2200
Denver, Colorado 80202
DISTRIBUTOR
ALPS Distributors, Inc.
1625 Broadway
Suite 2200
Denver, Colorado 80202
LEGAL COUNSEL
Davis Graham & Stubbs LLP
1550 Seventeenth Street
Suite 500
Denver, Colorado 80202
INDEPENDENT AUDITORS
Deloitte & Touche LLP
555 Seventeenth Street
Suite 3600
Denver, Colorado 80202
CUSTODIAN
Fifth Third Bank, N.A.
Fifth Third Center
38 Fountain Square Plaza
Cincinnati, Ohio 45263
MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
FOR MORE INFORMATION, PLEASE CALL 1-800-644-8595 OR VISIT www.aristata.com
[ALPS DISTRIBUTORS, INC. LOGO]
[ARISTATA(SM) MUTUAL FUNDS LOGO]
A CLASS ABOVE
[GRAPHIC]
SEMI-ANNUAL REPORT
OCTOBER 31, 2003
<Page>
Item 2. CODE OF ETHICS
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
N/A
Item 6. [RESERVED]
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
N/A
Item 8. [RESERVED]
Item 9. CONTROLS AND PROCEDURES
(a) The registrant's principal executive officer and principal financial
officer have concluded that the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act
of 1940, as amended) are effective based on their evaluation of these
controls and procedures as of a date within 90 days of the filing date of
this document.
(b) There were no significant changes in the registrant's internal control
over financial reporting or in other factors that could significantly
affect these controls subsequent to the date of their evaluation,
including any corrective actions with regard to significant deficiencies
and material weaknesses.
Item 10. EXHIBITS
(a)(1) Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
(a)(2) The certifications required by Rule 30a-2 of the Investment Company Act
of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act
of 2002 are attached hereto as Ex-99.Cert and Ex-99.906Cert
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
FINANCIAL INVESTORS TRUST
By: /s/Edmund Burke
---------------
Edmund Burke
President
Date: January 7, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/Edmund Burke
---------------
Edmund Burke
President
Date: January 7, 2004
By: /s/Jeremy O. May
----------------
Jeremy O. May
Treasurer
Date: January 7, 2004