<Page>
-----------------------------
OMB APPROVAL
-----------------------------
OMB Number: 3235-0570
Expires: November 30, 2005
Estimated average burden
hours per response....... 5.0
-----------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-03313
---------------------------------------------
First American Funds, Inc.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
800 Nicollet Mall Minneapolis, MN 55402
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Joseph M. Ulrey III 800 Nicollet Mall Minneapolis, MN 55402
- -------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-677-3863
----------------------------
Date of fiscal year end: September 30, 2004
--------------------------
Date of reporting period: March 31, 2004
-------------------------
Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its
regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street,
NW, Washington, DC 20549-0609. The OMB has reviewed this collection of
information under the clearance requirements of 44 U.S.C. Section 3507.
<Page>
[FIRST AMERICAN FUNDS(TM) LOGO]
2004
SEMIANNUAL REPORT
MONEY
MARKET
FUNDS
[GRAPHIC]
"NOTHING BUT HARMONY, HONESTY, INDUSTRY, AND FRUGALITY ARE NECESSARY TO MAKE US
A GREAT AND HAPPY PEOPLE."
GEORGE WASHINGTON
JANUARY 29, 1789
[PHOTO OF GEORGE WASHINGTON]
<Page>
FIRST AMERICAN FUNDS
OUR IMAGE-GEORGE WASHINGTON
HIS RICH LEGACY AS PATRIOT AND LEADER IS WIDELY RECOGNIZED AS EMBODYING THE
SOUND JUDGMENT, RELIABILITY, AND STRATEGIC VISION THAT ARE CENTRAL TO OUR BRAND.
FASHIONED IN A STYLE REMINISCENT OF AN 18TH CENTURY ENGRAVING, THE ILLUSTRATION
CONVEYS THE SYMBOLIC STRENGTH AND VITALITY OF WASHINGTON, WHICH ARE ATTRIBUTES
THAT WE VALUE AT FIRST AMERICAN FUNDS.
AN INVESTMENT IN MONEY MARKET FUNDS IS NOT INSURED OR GUARANTEED BY
THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. ALTHOUGH THESE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY
INVESTING IN THESE FUNDS.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
<Page>
FIRST AMERICAN FUNDS ONLINE
TABLE OF CONTENTS
<Table>
Schedule of Investments 2
Statements of Assets and Liabilities 12
Statements of Operations 13
Statements of Changes in Net Assets 14
Financial Highlights 16
Notes to Financial Statements 24
</Table>
@ firstamericanfunds.com
Visit the First American Funds website for useful information on each of our
funds, including fund prices, performance, fund management bios, dividends, and
downloadable fact sheets. You'll also find college and retirement planning tools
and general investor education.
[GRAPHIC]
ONLINE FEATURES AND FUNCTIONALITY INCLUDE:
- - The ability to deepen your understanding of the fund family by learning
about the full range of investment choices available to you through First
American Funds
- - The ability to educate yourself through market and investment strategy
commentaries
We stand behind our commitment to serve you with excellence. For more
information, call First American Investor Services at 800.677.FUND or visit
firstamericanfunds.com.
1
<Page>
SCHEDULE OF INVESTMENTS March 31, 2004 (unaudited)
GOVERNMENT OBLIGATIONS FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 57.7%
FAMC
1.030%, 04/01/04 (a) $ 117,600 $ 117,592
3.850%, 04/15/04 17,517 17,534
FFCB
1.000%, 04/01/04 (a) 125,000 124,985
0.975%, 04/07/04 (a) 50,000 50,000
2.375%, 10/01/04 9,400 9,448
FHLB
0.970%, 04/11/04 (a) 80,000 79,991
1.250%, 04/15/04 15,000 15,000
3.750%, 04/15/04 17,530 17,546
4.875%, 04/16/04 29,845 29,889
0.995%, 04/25/04 (a) 100,000 99,983
0.980%, 04/27/04 (a) 100,000 99,985
3.375%, 06/15/04 15,000 15,066
1.035%, 07/23/04 25,000 24,990
4.625%, 08/13/04 3,310 3,352
6.250%, 08/13/04 5,730 5,836
1.250%, 09/22/04 9,675 9,675
1.250%, 10/14/04 5,000 5,000
3.625%, 10/15/04 10,000 10,126
1.510%, 12/08/04 10,000 10,000
4.000%, 02/15/05 4,085 4,180
7.125%, 02/15/05 4,000 4,201
1.200%, 04/01/05 20,000 19,991
4.625%, 04/15/05 10,000 10,344
FHLMC
6.950%, 04/01/04 10,000 10,000
3.750%, 04/15/04 40,510 40,549
1.020%, 05/20/04 25,000 24,965
1.000%, 06/02/04 15,000 14,974
1.133%, 07/15/04 20,000 19,935
3.000%, 07/15/04 28,160 28,319
1.328%, 08/12/04 20,000 19,903
1.245%, 09/09/04 40,000 39,772
1.220%, 10/07/04 16,067 15,951
1.360%, 11/04/04 20,000 19,838
3.250%, 11/15/04 19,260 19,476
1.340%, 12/30/04 27,573 27,297
1.174%, 03/08/05 30,000 29,670
FNMA
1.000%, 04/01/04 (a) 78,000 77,988
1.003%, 04/01/04 (a) 125,000 124,985
1.005%, 04/01/04 (a) 65,000 65,000
1.015%, 04/01/04 (a) 100,000 99,993
0.975%, 04/15/04 (a) 100,000 99,953
1.190%, 04/21/04 (a) 25,000 25,000
1.120%, 04/30/04 30,000 29,973
1.034%, 04/30/04 (a) 125,000 124,987
1.420%, 10/15/04 50,000 49,627
1.620%, 12/08/04 17,000 17,000
1.330%, 12/10/04 35,000 34,676
1.200%, 02/04/05 20,000 19,794
7.125%, 02/15/05 37,460 39,349
1.210%, 03/04/05 10,000 9,888
FNMA Pool
1.300%, 09/01/04, Pool #760080 25,000 24,863
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,938,439) 1,938,439
-------------
REPURCHASE AGREEMENTS - 42.2%
Bank of America
1.000%, dated 3/31/04, matures 4/1/04,
repurchase price $100,002,778
(collateralized by U.S. Treasury Obligations:
Total Market Value $102,004,882) $ 100,000 $ 100,000
CS First Boston
1.060%, dated 3/31/04, matures 4/1/04,
repurchase price $250,007,361
(collateralized by U.S. Treasury Obligations:
Total Market Value $255,004,286) 250,000 250,000
Goldman Sachs
1.055%, dated 3/31/04, matures 4/1/04,
repurchase price $450,013,188
(collateralized by U.S. Treasury Obligations:
Total Market Value $459,000,340) 450,000 450,000
Lehman Brothers
1.040%, dated 3/31/04, matures 4/1/04,
repurchase price $50,001,444
(collateralized by U.S. Treasury Obligations:
Total Market Value $51,000,531) 50,000 50,000
UBS Warburg
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $69,165,940
(collateralized by U.S. Treasury Obligations:
Total Market Value $70,551,137) 69,164 69,164
UBS Warburg
1.060%, dated 3/31/04, matures 4/1/04,
repurchase price $500,014,722
(collateralized by U.S. Treasury Obligations:
Total Market Value $510,002,835) 500,000 500,000
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,419,164) 1,419,164
-------------
TOTAL INVESTMENTS - 99.9%
(Cost $3,357,603) 3,357,603
-------------
OTHER ASSETS AND LIABILITIES, NET - 0.1% 2,017
-------------
TOTAL NET ASSETS - 100.0% $ 3,359,620
-------------
</Table>
(a) Variable Rate Security - The rate shown is the rate in effect as of March
31, 2004. The date shown is the next reset date.
FAMC - Federal Agriculture Mortgage Corporation
FFCB - Federal Farm Credit Bank
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
The accompanying notes are an integral part of the financial statements.
2
<Page>
PRIME OBLIGATIONS FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------
COMMERCIAL PAPER - 34.7%
BASIC INDUSTRY - 0.2%
Cargill
1.052%, 05/05/04 (a) $ 40,000 $ 39,960
-------------
BROKERAGE - 4.0%
Citicorp Global Markets
1.020%, 04/07/04 90,000 89,985
1.030%, 04/20/04 140,000 139,924
CS First Boston USA
1.040%, 04/02/04 50,000 49,999
1.025%, 04/26/04 50,000 49,964
Goldman Sachs Group
1.133%, 04/01/04 (b) 200,000 200,000
Morgan Stanley Dean Witter
1.143%, 04/01/04 (b) 100,000 100,000
-------------
TOTAL BROKERAGE 629,872
-------------
COMMERCIAL FUNDING CORPORATIONS - 19.6%
CAFCO
1.040%, 04/13/04 (a) 50,000 49,983
1.020%, 04/21/04 (a) 45,000 44,975
1.030%, 04/28/04 (a) 50,000 49,961
1.030%, 04/29/04 (a) 50,000 49,960
1.030%, 05/13/04 (a) 50,000 49,940
Edison Asset Securitization Corp
1.030%, 04/05/04 (a) 198,560 198,537
Falcon Asset Security Corp
1.030%, 04/01/04 (a) 55,000 55,000
1.025%, 04/05/04 (a) 90,000 89,990
1.030%, 04/12/04 (a) 58,360 58,342
1.030%, 04/15/04 (a) 42,071 42,054
1.030%, 04/20/04 (a) 35,890 35,871
1.030%, 04/22/04 (a) 70,000 69,958
Fleet Funding
1.030%, 05/03/04 (a) 42,238 42,199
Jupiter Securitization
1.030%, 04/06/04 (a) 45,184 45,178
1.020%, 04/13/04 (a) 50,000 49,983
1.020%, 04/15/04 (a) 24,530 24,520
1.025%, 04/26/04 (a) 100,000 99,929
1.030%, 04/28/04 (a) 77,800 77,740
1.030%, 04/29/04 (a) 40,000 39,968
Moat Funding (Guarantor: 26% JPM Chase)
1.060%, 04/14/04 (a) 50,000 49,981
1.040%, 04/21/04 (a) 50,000 49,971
1.030%, 04/28/04 (a) 100,000 99,923
1.040%, 06/16/04 (a) 100,000 99,780
1.040%, 06/23/04 (a) 30,000 29,928
Motown Notes
1.050%, 04/12/04 (a) 100,000 99,968
1.050%, 04/13/04 (a) 75,000 74,974
1.050%, 04/26/04 (a) 65,000 64,953
1.060%, 05/13/04 (a) 150,000 149,815
1.050%, 06/16/04 (a) 50,000 49,889
Receivables Capital Corp
1.030%, 04/01/04 (a) 50,000 50,000
1.020%, 04/14/04 (a) 63,598 63,575
1.025%, 04/23/04 (a) 117,747 117,673
1.030%, 05/03/04 (a) 51,857 51,810
1.030%, 05/07/04 (a) 100,000 99,897
Sheffield Receivables Corp
1.030%, 04/01/04 (a) 160,000 160,000
1.020%, 04/13/04 (a) 67,210 67,187
1.030%, 04/15/04 (a) 50,000 49,980
1.030%, 04/26/04 (a) 75,000 74,946
Yorktown Capital Corp
1.020%, 04/12/04 (a) $ 100,000 $ 99,969
1.025%, 04/20/04 (a) 250,161 250,025
1.030%, 04/21/04 (a) 57,031 56,998
-------------
TOTAL COMMERCIAL FUNDING CORPORATIONS 3,085,330
-------------
DIVERSIFIED FINANCIALS - 0.5%
General Electric Capital Corp
1.030%, 04/19/04 75,000 74,961
-------------
DOMESTIC BANKS - 4.7%
American Express Centurian
1.020%, 04/05/04 (a) 150,000 150,000
1.020%, 04/22/04 (a) 50,000 50,000
1.020%, 04/22/04 (a) 100,000 100,000
1.020%, 04/28/04 (a) 50,000 50,000
Kitty Hawk Funding (Guarantor: Bank of America)
1.025%, 04/21/04 (a) 114,380 114,315
Variable Funding Capital (Guarantor: Wachovia)
1.020%, 04/07/04 (a) 25,000 24,996
1.020%, 04/08/04 (a) 75,000 74,985
1.020%, 04/15/04 (a) 100,168 100,128
1.030%, 04/20/04 (a) 50,000 49,973
1.030%, 05/04/04 (a) 25,000 24,976
-------------
TOTAL DOMESTIC BANKS 739,373
-------------
FOREIGN BANK - 0.6%
Greenwich Capital Funding
1.020%, 04/16/04 (a) 100,000 99,958
-------------
FOREIGN FUNDING CORPORATION - 0.4%
Sigma Finance
1.050%, 04/01/04 (a) (b) 65,000 64,991
-------------
RETAIL FUNDING CORPORATION - 4.7%
Emerald Certificates (MBNA Master Certificates)
(Secured Liquidity Note)
1.050%, 04/06/04 (a) 45,000 44,993
1.060%, 05/06/04 (a) 50,000 49,948
1.060%, 05/11/04 (a) 50,000 49,941
1.063%, 05/18/04 (a) 25,000 24,965
1.040%, 05/26/04 (a) 50,000 49,921
1.050%, 05/27/04 (a) 110,000 109,820
1.050%, 05/27/04 (a) 50,000 49,918
Park Granada LLC
1.080%, 04/08/04 (a) 55,000 54,988
1.060%, 05/03/04 (a) 71,000 70,933
1.060%, 06/04/04 (a) 40,000 39,925
1.040%, 06/14/04 (a) 95,000 94,797
1.050%, 06/18/04 (a) 100,000 99,772
-------------
TOTAL RETAIL FUNDING CORPORATION 739,921
-------------
TOTAL COMMERCIAL PAPER
(Cost $5,474,366) 5,474,366
-------------
CORPORATE OBLIGATIONS - 34.8%
BASIC INDUSTRY - 2.6%
3M
5.639%, 12/13/04 (a) 200,000 205,961
Merck & Co. Inc.
4.484%, 02/22/05 (a) 95,000 97,703
Wal-Mart Stores
5.199%, 06/01/04 100,000 100,678
-------------
TOTAL BASIC INDUSTRY 404,342
-------------
BROKERAGE - 6.8%
Bear Stearns
1.253%, 4/1/04 400,000 400,000
</Table>
3
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------
Goldman Sachs Group
1.170%, 04/15/04 (a) (b) $ 177,000 $ 177,008
1.370%, 04/15/04 (a) (b) 88,000 88,000
Merrill Lynch
1.360%, 04/01/04 (b) 54,000 54,032
Morgan Stanley Dean Witter
1.210%, 04/15/04 (a) (b) 250,000 250,000
1.100%, 04/29/04 (a) (b) 95,000 95,000
-------------
TOTAL BROKERAGE 1,064,040
-------------
DIVERSIFIED FINANCIALS - 4.5%
American Express Credit
1.110%, 04/20/04 (a) (b) 90,000 89,995
Associates Corp
1.210%, 06/25/04 (b) 120,000 120,000
General Electric Capital Corp
1.180%, 04/09/04 (b) 300,000 300,096
1.170%, 04/17/04 (b) 200,000 200,000
-------------
TOTAL DIVERSIFIED FINANCIALS 710,091
-------------
FOREIGN FUNDING CORPORATIONS - 13.2%
Beta Finance
1.040%, 04/01/04 (a) (b) 100,000 99,988
1.450%, 08/18/04 (a) 107,000 107,000
1.270%, 10/15/04 (a) 50,000 49,999
1.400%, 01/07/05 (a) 50,000 50,000
Centauri (CC USA LLC)
1.055%, 04/01/04 (a) (b) 30,000 29,999
1.078%, 04/01/04 (a) (b) 50,000 50,000
1.180%, 04/01/04 (a) (b) 50,000 50,038
1.150%, 07/26/04 (a) 50,000 50,000
1.450%, 10/25/04 (a) 100,000 100,000
1.500%, 11/17/04 (a) 50,000 50,028
1.390%, 11/26/04 (a) 50,000 49,990
Dorada Finance
1.060%, 04/01/04 (a) (b) 177,000 176,979
1.065%, 04/01/04 (a) (b) 75,000 75,000
1.450%, 11/10/04 (a) 50,000 50,000
1.450%, 11/22/04 (a) 85,000 85,000
K2 USA LLC
1.070%, 04/01/04 (a) (b) 50,000 49,996
1.070%, 04/01/04 (a) (b) 75,000 74,993
1.213%, 04/01/04 (a) (b) 100,000 100,020
1.440%, 09/02/04 (a) 50,000 50,000
1.235%, 09/22/04 (a) 75,000 74,995
1.270%, 10/15/04 (a) 50,000 50,000
1.450%, 10/25/04 (a) 100,000 100,013
1.445%, 11/08/04 (a) 60,000 59,998
Sigma Finance
1.055%, 04/01/04 (a) (b) 100,000 99,977
1.055%, 04/01/04 (a) (b) 100,000 99,977
1.060%, 04/01/04 (a) (b) 50,000 49,999
1.065%, 04/01/04 (a) (b) 50,000 49,999
1.078%, 04/01/04 (a) (b) 100,000 99,990
1.130%, 04/01/04 (a) (b) 50,000 50,006
-------------
TOTAL FOREIGN FUNDING CORPORATIONS 2,083,984
-------------
INSURANCE - 7.7%
AI Life Funding Agreement
1.242%, 04/01/04 (b) 75,000 75,000
1.242%, 04/01/04 (b) 100,000 100,000
AIG Life Funding Agreement
1.262%, 04/01/04 (b) $ 100,000 $ 100,000
1.262%, 04/01/04 (b) 100,000 100,000
Allstate Life Insurance Funding Agreement
1.282%, 04/01/04 (b) 100,000 100,000
1.320%, 04/15/04 (b) 100,000 100,000
Anchor National Life Funding Agreement
1.250%, 04/01/04 (b) 75,000 75,000
Metlife Global Funding
1.100%, 04/28/04 (a) (b) 95,000 95,000
Sun Life Insurance Funding Agreement
1.240%, 04/01/04 (b) 75,000 75,000
Transamerica Occidental Funding Agreement
1.246%, 04/01/04 (b) 400,000 400,000
-------------
TOTAL INSURANCE 1,220,000
-------------
TOTAL CORPORATE OBLIGATIONS
(Cost $5,482,457) 5,482,457
-------------
CERTIFICATES OF DEPOSIT - 3.8%
CS First Boston USA
1.030%, 04/09/04 100,000 100,000
1.050%, 05/04/04 175,000 175,000
1.035%, 05/18/04 75,000 75,000
Wells Fargo Bank
1.020%, 04/12/04 100,000 100,000
1.020%, 04/14/04 150,000 150,000
-------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $600,000) 600,000
-------------
YANKEE CERTIFICATES OF DEPOSIT - 13.0%
Bayerische Landesbank NY
5.000%, 07/20/04 15,000 15,178
BNP Paribas NY
1.050%, 06/16/04 195,000 194,983
Canadian Imperial Bank NY
1.020%, 04/08/04 150,000 150,000
Credit Agricole NY
1.040%, 04/01/04 (b) 70,000 70,000
1.070%, 04/07/04 (b) 70,000 70,000
1.230%, 08/04/04 (b) 50,000 49,998
Danske Bank NY
1.250%, 09/10/04 100,000 99,996
Fortis Banque
1.020%, 04/26/04 100,000 100,000
1.020%, 04/26/04 200,000 200,000
Landesbank Hessen Thueringen
1.320%, 02/10/05 100,000 99,987
Nordeutche Bank NY
1.100%, 07/06/04 100,000 100,000
1.110%, 07/12/04 50,000 49,999
1.230%, 02/09/05 45,000 45,000
Rabobank Nederland NY
1.240%, 08/04/04 48,000 47,998
Royal Bank of Scotland NY
1.295%, 04/16/04 50,000 50,000
1.305%, 04/16/04 50,000 50,000
1.395%, 02/02/05 100,000 99,987
1.326%, 03/31/05 50,000 49,965
Svenska Handlesbanken NY
1.025%, 04/01/04 115,150 115,150
</Table>
The accompanying notes are an integral part of the financial statements.
4
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------
West Deutsche Landesbank NY
1.320%, 04/15/04 $ 100,000 $ 100,000
1.200%, 08/02/04 50,000 50,000
1.390%, 08/26/04 75,000 74,997
1.250%, 09/20/04 75,000 75,000
1.315%, 10/18/04 55,000 54,997
1.550%, 12/10/04 35,000 35,000
-------------
TOTAL YANKEE CERTIFICATES OF DEPOSIT
(Cost $2,048,235) 2,048,235
-------------
EURO TIME DEPOSITS - 6.6%
M & I Time Deposit
1.031%, 04/01/04 500,000 500,000
National City Time Deposit
1.040%, 04/01/04 533,443 533,443
-------------
TOTAL EURO TIME DEPOSITS
(Cost $1,033,443) 1,033,443
-------------
REPURCHASE AGREEMENTS - 2.2%
UBS Warburg
1.031%, dated 3/31/04, matures 4/1/04,
repurchase price $345,638,697
(collateralized by U.S. Treasury Obligations:
Total Market value $352,546,169) 345,629 345,629
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $345,629) 345,629
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 4.8%
FHLB
3.375%, 06/15/04 40,000 40,176
1.200%, 04/01/05 50,000 49,975
FHLMC
1.030%, 04/02/04 23,850 23,849
3.750%, 04/15/04 55,400 55,457
1.020%, 05/20/04 35,785 35,735
6.250%, 07/15/04 49,282 49,990
1.400%, 08/11/04 30,000 30,000
1.328%, 08/12/04 50,000 49,758
0.000%, 12/02/04 60,000 59,396
FNMA
1.060%, 04/01/04 (b) 180,000 180,000
1.120%, 04/30/04 65,000 64,941
3.500%, 09/15/04 19,500 19,681
1.420%, 11/01/04 23,474 23,278
1.270%, 04/25/05 75,000 75,000
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $757,236) 757,236
-------------
TOTAL INVESTMENTS - 99.9%
(Cost $15,741,366) 15,741,366
-------------
OTHER ASSETS AND LIABILITIES, NET - 0.1% 20,240
-------------
TOTAL NET ASSETS - 100.0% $ 15,761,606
-------------
</Table>
(a) Security sold within the terms of a private placement memorandum, exempt
from registration under Rule 144A of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "qualified
institutional buyers." These securities have been determined to be liquid
under the guidelines established by the Funds' board of directors. As of
March 31, 2004, the value of these investments was $7,952,184,290 or 50.5%
of total net assets.
(b) Variable Rate Security - The rate shown is the rate in effect as of March
31, 2004. The date shown is the next reset date.
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
TAX FREE OBLIGATIONS FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 100.4%
ARIZONA - 1.5%
Arizona Health Facilities,
Royal Oaks Project (LOC: Lasalle Bank)
1.017%, 04/07/04 (a) $ 5,825 $ 5,825
Arizona Health Facilities,
The Terraces Project, Series B2
(LOC: Sovereign Bank) (LOC: Lloyds TSB Bank)
1.017%, 04/07/04 (a) 5,000 5,000
Phoenix Civic Improvement (CP)
0.970%, 07/29/04 10,000 10,000
-------------
20,825
-------------
CALIFORNIA - 0.3%
Los Angeles School District,
Belmont Learning Complex A
(LOC: Bank of New York)
0.947%, 04/07/04 (a) 75 75
Santa Barbara Tax and Revenue
Anticipation Notes - Series A
2.000%, 07/23/04 4,000 4,015
-------------
4,090
-------------
COLORADO - 3.2%
Boulder Valley School District (GO)
1.500%, 06/30/04 10,000 10,013
2.000%, 06/30/04 10,000 10,025
Colorado General Fund Tax and
Anticipation Notes Revenue
2.000%, 06/25/04 15,000 15,039
Moffat County Pollution Control (INS: AMBAC)
1.227%, 04/07/04 (a) 10,465 10,465
-------------
45,542
-------------
DELAWARE - 0.4%
Kent County Delaware University Student Housing,
Series B (LOC: Wachovia Bank)
1.007%, 04/07/04 (a) 5,000 5,000
-------------
DISTRICT OF COLUMBIA - 1.6%
District of Columbia Revenue (LOC: First Union)
1.007%, 04/07/04 (a) 9,400 9,400
District of Columbia,
The Washington Home
(LOC: First Union National Bank)
1.017%, 04/07/04 (a) 13,605 13,605
-------------
23,005
-------------
FLORIDA - 3.5%
Florida Housing Agency (LOC: Kreidetbank)
1.097%, 04/07/04 (a) (b) 6,035 6,035
Highlands County Florida Health Facilities,
Adventist Health Systems, Series A
(LOC: Suntrust Bank)
1.017%, 04/07/04 (a) 12,100 12,100
Highlands County Florida Health Facilities,
Adventist Health Systems, Series B
(LOC: Suntrust Bank)
1.027%, 04/07/04 (a) 11,000 11,000
Jacksonville Florida Educational Facilities,
Jacksonville University Project
(LOC: Wachovia Bank)
1.007%, 04/07/04 (a) 6,175 6,175
Miami-Dade County Development Authority,
Gulliver School Project (LOC: Bank of America)
1.097%, 04/07/04 (a) 3,650 3,650
</Table>
5
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------
Orange County Florida Health Facilities,
Adventist Health Systems,
Sunbelt (LOC: Suntrust Bank)
1.017%, 04/07/04 (a) $ 2,800 $ 2,800
Palm Beach County Revenue,
Benjamin Private School Project
(LOC: Bank of America)
1.047%, 04/07/04 (a) 2,000 2,000
University of Florida Research
Funding Revenue (LOC: Wachovia Bank)
1.057%, 04/07/04 (a) 5,000 5,000
University of South Florida Funding
(LOC: First Union)
0.967%, 04/07/04 (a) 930 930
-------------
49,690
-------------
GEORGIA - 0.4%
Clayton County Georgia Development Authority,
Delta Airlines Project, Series A
(LOC: General Electric Capital)
1.057%, 04/07/04 (a) 2,450 2,450
Fulton County Development Authority,
Pace Academy Project (LOC: Bank of America)
1.047%, 04/07/04 (a) 1,925 1,925
Gordon County Georgia Hospital Authority,
Adventist Health Systems, Series A
(LOC: Suntrust Bank)
1.017%, 04/07/04 (a) 1,205 1,205
-------------
5,580
-------------
IDAHO - 0.6%
Boise Idaho Urban Renewal Agency,
Capital City (LOC: Bank America)
1.067%, 04/07/04 (a) 5,110 5,110
University of Idaho Foundation Authority
(LOC: First Security Bank)
1.067%, 04/07/04 (a) (b) 3,900 3,900
-------------
9,010
-------------
ILLINOIS - 16.6%
ABN AMRO Munitops Certificates Trust,
Chicago IL (INS:FGIC)
1.117%, 04/07/04 (a) (b) 20,000 20,000
ABN AMRO Munitops Certificates Trust,
llinois State (GO) (INS: MBIA)
1.117%, 04/07/04 (a) (b) 4,575 4,575
Chicago Illinois (LOC: Landesbank Hessen - THRGN)
1.047%, 12/09/04 (a) 15,000 15,000
Chicago Illinois Park District
(LOC: Landesbank Hessen - THRGN)
1.750%, 05/01/04 19,000 19,013
Illinois Development Finance Authority
(LOC: Northern Trust)
1.097%, 04/07/04 (a) 3,500 3,500
Illinois Development Finance Authority, Aurora
(LOC: Allied Irish Bank, PLC)
1.346%, 04/07/04 (a) 6,740 6,740
Illinois Development Finance Authority,
Chinese American Service Project
(LOC: LaSalle Bank)
1.047%, 04/07/04 (a) 5,000 5,000
Illinois Development Finance Authority, Lake Forest
(LOC: Northern Trust)
1.097%, 04/07/04 (a) 6,255 6,255
Illinois Development Finance Authority,
Loyola Academy (LOC: Bank One)
1.097%, 04/07/04 (a) 4,000 4,000
Illinois Development Finance Authority,
McCormick Theological (LOC: Northern Trust)
1.097%, 04/07/04 (a) $ 7,935 $ 7,935
Illinois Development Finance Authority,
Roosevelt University (LOC: American National Bank)
1.097%, 04/07/04 (a) 7,700 7,700
Illinois Development Finance Authority,
Solomon Schechter Day School
(LOC: LaSalle Bank)
1.047%, 04/07/04 (a) 5,000 5,000
Illinois Development Finance Authority,
St. Ignatius (LOC: Northern Trust)
1.097%, 04/07/04 (a) 9,800 9,800
Illinois Development Finance Authority,
St. Paul's Housing (LOC: Lasalle Bank)
1.097%, 04/07/04 (a) 4,290 4,290
Illinois Development Finance Authority,
United Way/Crusade Mercy (LOC: LaSalle Bank)
1.047%, 04/07/04 (a) 4,935 4,935
Illinois Development Finance Authority,
Mount Carmel High School Project
(LOC: Bank One)
1.097%, 04/07/04 (a) 2,800 2,800
Illinois Educational Facilities Authority,
Chicago Zoological Society (LOC: Northern Trust)
1.097%, 04/07/04 (a) 5,000 5,000
Illinois Health Facilities Authorities,
Edgewater Hospital
1.077%, 04/07/04 (a) (b) 10,600 10,600
Illinois Health Facilities Authority Lifelink
(LOC: American National Bank)
1.047%, 04/07/04 (a) 7,225 7,225
Illinois Health Facilities, Central Baptist Home,
Series B (LOC: Allied Irish Bank, PLC)
1.047%, 04/07/04 (a) 3,260 3,260
Illinois Health Facilities, Lutheran Home and
Services (LOC: Fifth Third Bank)
1.067%, 04/07/04 (a) 14,350 14,350
Illinois Health Facilities, Lutheran Home and
Services Project (LOC: Allied Irish Bank, PLC)
1.047%, 04/07/04 (a) 2,200 2,200
Illinois Health Facilities, Series C
(LOC: Lasalle Bank)
1.017%, 04/07/04 (a) 13,000 13,000
Illinois State Toll Highway Authority (INS: FSA)
(SPA: LandesBank - Hessen-THRGN)
1.067%, 04/07/04 (a) 18,500 18,500
1.067%, 04/07/04 (a) 13,100 13,100
Macon County - Milikin University
(INS: AMBAC) (SPA: Bank One)
1.047%, 04/07/04 (a) 4,400 4,400
Northern Cook County Illinois Solid Waste Agency
(LOC: Northern Trust)
1.047%, 04/07/04 (a) 5,900 5,900
State of Illinois (GO)
5.000%, 04/01/04 5,000 5,000
State of Illinois, Series A (GO)
5.000%, 03/01/05 5,182 5,182
State of Illinois, Series B (GO)
5.000%, 03/01/05 2,135 2,135
-------------
236,395
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
6
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------
INDIANA - 4.3%
Evansville Economic Development Authority
(LOC: Citibank)
1.017%, 04/07/04 (a) (b) $ 2,500 $ 2,500
Fort Wayne Industries Economic Development,
Lutheran Homes Project (LOC: Fifth Third Bank)
1.117%, 04/07/04 (a) 5,500 5,500
Indiana Development Financing Authority,
Educational Facilities Heritage School Project
(LOC: Lasalle Bank)
1.047%, 04/07/04 (a) 8,650 8,650
Indiana Health Facilities Financing Authority,
Baptist Homes (LOC: Lasalle Bank)
1.027%, 04/07/04 (a) 9,800 9,800
Indiana Health Facilities Financing Authority,
Henry County Memorial Hospital
(LOC: Fifth Third Bank)
1.097%, 04/07/04 (a) 19,685 19,685
Indiana Health Facilities Financing Authority,
Major Hospital Project (LOC: Bank One)
1.097%, 04/07/04 (a) 10,000 10,000
Indiana, Series A
2.000%, 01/25/05 5,000 5,036
-------------
61,171
-------------
IOWA - 0.3%
Iowa Financial Retirement Authority,
Wesley Retirement Services
(LOC: Wells Fargo Bank)
1.017%, 04/07/04 (a) 4,000 4,000
-------------
KANSAS - 0.7%
Prairie Village Revenue, Claridge Court
(LOC: LaSalle Bank)
1.017%, 04/07/04 (a) 9,410 9,410
-------------
KENTUCKY - 0.2%
Lexington-Fayette Urban Residential Facilities,
Richmond Project (LOC: Bank of America)
1.070%, 04/01/05 (a) 2,630 2,630
-------------
LOUISIANA - 3.1%
State of Louisiana (CP) INS: AMBAC
SPA: CSFB
0.987%, 04/05/04 10,000 10,000
0.960%, 04/06/04 9,470 9,470
0.950%, 07/07/04 10,000 10,000
0.950%, 07/08/04 5,000 5,000
0.960%, 07/13/04 10,000 10,000
-------------
44,470
-------------
MASSACHUSETTS - 3.8%
State of Massachusetts Series B
(SPA: Landesbank - Hessen - THRGN) (GO)
1.057%, 04/07/04 (a) 27,495 27,495
State of Massachusetts Series C (GO)
(SPA: State Street B&T)
1.057%, 04/07/04 (a) 25,725 25,725
-------------
53,220
-------------
MICHIGAN - 7.3%
Hannahville Indian Community Finance, Series A
(LOC: National City)
1.107%, 04/07/04 (a) (b) 1,450 1,450
Michigan State Housing Development Authority
(INS: MBIA) (SPA: Merrill Lynch Cap Services)
1.067%, 04/07/04 (a) (b) $ 5,325 $ 5,325
Oakland County Michigan Economic Development,
Catholic Central High School
(LOC: Fifth Third Bank)
1.097%, 04/07/04 (a) 13,145 13,145
State of Michigan (CP)
1.050%, 05/04/04 20,000 20,000
1.100%, 05/11/04 30,080 30,080
State of Michigan Strategic Fund,
Lutheran Social Services
(LOC: National City Bank)
1.077%, 04/07/04 (a) 19,195 19,195
Wayne Charter County (LOC: Allied Irish, PLC)
1.057%, 04/07/04 (a) 13,825 13,825
-------------
103,020
-------------
MINNESOTA - 4.6%
Eden Prairie, Multifamily Housing Authority
(Liquidity: Freddie Mac)
1.097%, 04/07/04 (a) 13,700 13,700
Mendota Heights Revenue,
St. Thomas Academy Project
(LOC: Allied Irish, PLC)
1.017%, 04/07/04 (a) 1,960 1,960
Minneapolis School District
Credit Support: SD Credit Program (GO)
2.000%, 08/06/04 10,000 10,036
Minnesota State Higher Educational
FaciIities Bethel College, Credit Support:
GO of Institution (LOC: Allied Irish Bank, PLC)
1.346%, 04/07/04 (a) 3,585 3,585
University of Minnesota (GO of University) Series A
1.057%, 04/07/04 (a) 36,725 36,725
-------------
66,006
-------------
MISSOURI - 1.1%
Jackson County Missouri Industrial
Development Authority, YMCA Greater
Kansas City (LOC: Bank of America)
1.097%, 04/07/04 (a) 6,700 6,700
Missouri State Health & Educational Facilties
(LOC: Bank One) (INS: AMBAC)
1.017%, 04/07/04 (a) 9,550 9,550
-------------
16,250
-------------
MONTANA - 1.0%
Montana State Health Facilities Authority
1.177%, 04/07/04 (a) (b) (INS: AMBAC) 14,625 14,625
-------------
NEVADA - 1.2%
ABN AMRO Munitops Certificates Trust,
Nevada State (GO) (INS: MBIA)
1.117%, 04/07/04 (a) (b) (SPA: ABN AMRO) 8,500 8,500
Clark County School District (GO) (INS: FGIC)
3.000%, 06/01/04 8,720 8,750
-------------
17,250
-------------
NEW JERSEY - 0.7%
State of New Jersey
2.000%, 06/25/04 10,000 10,022
-------------
NEW MEXICO - 0.7%
Bernalillo County New Mexico, Series A
2.000%, 12/14/04 10,000 10,060
-------------
</Table>
7
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------
NEW YORK - 1.7%
Jay Street Development, Jay Street Project,
Series A-2 (LOC: Landesbank Hessen-THRGN)
0.967%, 04/01/04 (a) $ 11,500 $ 11,500
State of New York (GO) (SPA: Lehman Liquidity)
(Credit: CIEG-TCRS)
1.077%, 04/07/04 (a) (b) 9,975 9,975
Yonkers (GO) (LOC: Bank of New York)
2.000%, 05/14/04 3,000 3,004
-------------
24,479
-------------
NORTH CAROLINA - 1.1%
North Carolina State Correctional
Facilities Project, Series A
2.000%, 02/01/05 2,000 2,015
North Carolina Wolfpack Club Project
(LOC: Bank of America)
1.047%, 04/07/04 (a) 10,000 10,000
Wake County North Carolina, Series B
4.500%, 02/01/05 3,150 3,240
-------------
15,255
-------------
OHIO - 5.6%
ABN AMRO Munitops Certificates Trust,
Westerville Ohio County School (INS: MBIA)
(SPA: ABN AMRO Bank)
1.097%, 04/07/04 (a) (b) 4,000 4,000
Cuyahoga County Ohio Hospital Revenue,
University Hospital (INS: AMBAC)
(SPA: Chase Manhattan)
1.017%, 04/07/04 (a) 3,000 3,000
Franklin County Health Care Facilities Revenue,
Mother Angeline McCrory Project
(LOC: Allied Irish Bank, PLC)
1.087%, 04/07/04 (a) 16,690 16,690
Franklin County Ohio Health Care Facilities
(LOC: National City Bank)
1.047%, 04/07/04 (a) 3,800 3,800
Logan County Ohio Healthcare Facilities
(LOC: Fifth Third Bank)
1.117%, 04/07/04 (a) 10,800 10,800
Lucas County Ohio Facilities Improvement,
Toledo Society (LOC: Fifth Third Bank)
1.017%, 04/07/04 (a) 12,200 12,200
Miami County Hospital
(LOC: National Australia Bank, NY)
(SPA: Merrill Lynch Cap SVCS)
1.117%, 04/07/04 (a) (b) 4,740 4,740
Middleburg Heights Hospital Improvement
Revenue (LOC: Fifth Third Bank)
1.057%, 04/07/04 (a) 2,400 2,400
Ohio State Air Quality Development Authority,
Ohio Power (INS: AMBAC)
(Liquidity: Merrill Lynch SVCS)
1.067%, 04/07/04 (a) (b) 4,700 4,700
Ohio State Higher Education Facilities,
Lake Erie (LOC: Fifth Third Bank)
1.057%, 04/07/04 (a) 12,665 12,665
Summit County Ohio Port Authority,
Summa Health Systems Hospital
(LOC: Fifth Third Bank)
1.057%, 04/07/04 (a) 5,000 5,000
-------------
79,995
-------------
OKLAHOMA - 0.8%
Oklahoma Authority Revenue,
American Cancer Society Project
(LOC: Bank of America)
1.097%, 04/07/04 (a) $ 2,905 $ 2,905
Tulsa Industrial Authority Revenue Floating
1.067%, 04/07/04 (a) (b) 7,970 7,970
-------------
10,875
-------------
PENNSYLVANIA - 1.2%
Lehigh County Pennsylvania General
Purpose Authority, St. Lukes Hospital Project
(LOC: Wachovia Bank)
1.017%, 04/01/04 (a) 100 100
Philadelphia, PA Tax and Revenue Anticipation Notes
2.000%, 06/30/04 17,000 17,040
-------------
17,140
-------------
RHODE ISLAND - 0.5%
Rhode Island Health & Education Revenue,
Jewish Services Agency (LOC: Sovereign Bank)
(LOC: Bank of New York)
1.017%, 04/07/04 (a) 6,750 6,750
-------------
SOUTH CAROLINA - 3.0%
ABN AMRO Munitops Certificates Trust (GO)
(INS: FSA SCSDE) (SPA: ABN AMRO Bank)
1.117%, 04/07/04 (a) (b) 14,000 14,000
ABN AMRO Munitops Certificates Trust,
South Carolina Transportaion Infastructure
(INS: AMBAC) (SPA: ABN AMRO Bank)
1.117%, 04/07/04 (a) (b) 10,000 10,000
State of South Carolina (GO)
2.000%, 04/01/05 4,000 4,040
University of South Carolina Revenue
1.750%, 07/24/04 15,000 15,040
-------------
43,080
-------------
TENNESSEE - 3.7%
Memphis TN (CP)
(LOC: West Deutsche Landesbank)
0.950%, 04/06/04 12,500 12,500
Met Government Nashville & Davidson
(LOC: Societe Generale)
1.097%, 04/07/04 (a) (b) 7,035 7,035
Rutherford County Industrial
Developement - Square D Company
(LOC: Societe Generale)
1.047%, 04/07/04 (a) 4,100 4,100
Shelby County Heatlh (CP)
(LOC: Bank of America)
0.950%, 04/22/04 20,000 20,000
0.970%, 04/27/04 8,500 8,500
-------------
52,135
-------------
TEXAS - 16.3%
ABN AMRO Munitops Certificates Trust,
Comal Texas (Credit: PSF-GTD)
(SPA: ABN AMRO Bank)
1.117%, 04/07/04 (a) (b) 10,002 10,002
ABN AMRO Munitops Certificates Trust,
Frisco Texas School District (Credit: PSF-GTD)
(SPA: ABN AMRO Bank)
1.200%, 05/12/04 (b) 9,695 9,695
</Table>
The accompanying notes are an integral part of the financial statements.
8
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------
ABN AMRO Munitops Certificates Trust,
Irving Texas (Credit: PSF-GTD)
(SPA: ABN AMRO Bank)
1.080%, 03/09/05 (b) $ 11,390 $ 11,390
ABN AMRO Munitops Certificates Trust,
Williamson County Texas (INS: FSA)
(SPA: ABN AMRO Bank)
1.117%, 04/07/04 (a) (b) 10,395 10,395
Galena Park Independent School District
(GTY: TXPSF)
1.067%, 04/07/04 (a) (b) 20,965 20,965
Harris County Texas Health Facilities Development,
Seven Acres Jewish Senior Care
(LOC: J.P. Morgan Chase Bank)
1.067%, 04/07/04 (a) 19,000 19,000
Kendall County Texas Health Facilities,
Morningside Ministries (LOC: Bank One)
1.107%, 04/07/04 (a) 15,000 15,000
Midland County Texas Health Facilities,
Manor Park Project (LOC: Wells Fargo Bank)
1.097%, 04/07/04 (a) 17,860 17,860
Northeast Independent School District
(Credit: PSF-GTD) (Liquidity: Societe Generale)
1.067%, 04/07/04 (a) (b) 26,515 26,515
San Antonio Electric & Gas (INS: MBIA)
(Liquidity: Societe Generale)
1.067%, 04/07/04 (a) (b) 7,455 7,455
State of Texas
2.000%, 08/31/04 47,850 48,027
University of Texas (CP)
0.970%, 06/09/04 10,000 10,000
0.950%, 07/08/04 10,000 10,000
0.940%, 08/11/04 15,425 15,425
-------------
231,729
-------------
VIRGINIA - 1.8%
Richmond Virginia (GO)
2.000%, 06/29/04 25,000 25,058
-------------
WASHINGTON - 2.2%
ABN AMRO Munitops Certificates Trust,
Washington State (GO) (INS: MBIA-IBC)
(SPA: ABN AMRO Bank)
1.117%, 04/07/04 (a) (b) 14,000 14,000
Everett Public Facilities (CP)
0.990%, 05/21/04 6,240 6,240
Washington State Housing Financial
Nonprofit Revenue, Emerald Heights Project
(LOC: Bank of America)
1.077%, 04/01/04 (a) 5,000 5,000
Washington State Housing Financial
Nonprofit Revenue, Open Window School Project
(LOC: Bank of America)
1.097%, 04/07/04 (a) 6,600 6,600
-------------
31,840
-------------
WEST VIRGINIA - 1.7%
Monongalia County West Virginia General
Hospital - A (LOC: Bank One)
1.047%, 04/07/04 (a) 4,700 4,700
West Virginia State Hospital Financing Authority,
Pallottine Health, Series A1 (LOC: Bank One)
1.017%, 04/07/04 (a) 20,000 20,000
-------------
24,700
-------------
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------
WISCONSIN - 2.6%
Wisconsin State Health and Education Facilties
(LOC: Marshall & Illsley)
1.047%, 04/07/04 (a) $ 13,800 $ 13,800
Wisconsin State Health and Educational Facilities,
Lindengrove, Series B (LOC: Bank One)
1.047%, 04/07/04 (a) 7,500 7,500
Wisconsin State Health and Education Facilties,
Torah Study (LOC: Harris Trust & Savings Bank)
1.047%, 04/07/04 (a) 3,315 3,315
Wisconsin State Health and Educational Facilities,
Watertown Memorial Hospital Project
(LOC: Bank One)
1.047%, 04/07/04 (a) 4,400 4,400
Wisconsin State Health Marshfield
(LOC: Morgan Guaranty)
1.047%, 04/07/04 (a) 8,000 8,000
-------------
37,015
-------------
MULTISTATE - 1.1%
Clipper Tax-Exempt Trust
1.217%, 04/07/04 (a) (b) 15,000 15,000
-------------
TOTAL MUNICIPAL BONDS
(Cost $1,426,322) 1,426,322
-------------
MONEY MARKET FUND - 0.0%
AIM Tax Free Investments Company 71,689 72
Money Market Obligations Trust 59,558 59
-------------
TOTAL MONEY MARKET FUND
(Cost $131) 131
-------------
TOTAL INVESTMENTS - 100.4%
(Cost $1,426,453) 1,426,453
-------------
OTHER ASSETS AND LIABILITIES, NET - (0.4)% (5,009)
-------------
TOTAL NET ASSETS - 100.0% $ 1,421,444
-------------
</Table>
(a) Variable Rate Security - The rate shown is the rate in effect as of March
31, 2004. The date shown is the next reset date.
(b) Security sold within the terms of a private placement memorandum, exempt
from registration under Rule 144A of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "qualified
institutional buyers." These securities have been determined to be liquid
under the guidelines established by the Funds' board of directors. As of
March 31, 2004, the value of these investments was $265,347,000 or 18.7% of
total net assets.
AMBAC - American Municipal Bond Assurance Company
CP - Commercial Paper
FGIC - Financial Guaranty Insurance Corporation
FSA - Financial Security Assistance
GO - General Obligation
GTD - Guaranteed
GTY - Guaranty
IBC - Insured Bond Certificate
INS - Insured
LOC - Letter of Credit
MBIA - Municipal Bond Insurance Association
PSF - Permanent School Fund
SPA - Standby Purchase Agreement
TXPSF - Texas Permanent School Fund
9
<Page>
TREASURY OBLIGATIONS FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 23.2%
U.S. Treasury Notes
3.375%, 04/30/04 $ 375,000 $ 375,638
3.250%, 05/31/04 125,000 125,436
2.875%, 06/30/04 400,000 401,813
2.125%, 08/31/04 570,000 572,129
1.875%, 09/30/04 80,000 80,218
5.875%, 11/15/04 445,000 457,584
2.000%, 11/30/04 125,000 125,529
7.500%, 02/15/05 75,000 79,146
1.500%, 02/28/05 150,000 150,373
-------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $2,367,866) 2,367,866
-------------
REPURCHASE AGREEMENTS - 76.7%
ABN AMRO
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $925,025,951
(collateralized by U.S. Treasury Obligations:
Total Market value $943,500,000) 925,000 925,000
Banc One
1.000%, dated 3/31/04, matures 4/1/04,
repurchase price $450,012,500
(collateralized by U.S. Treasury Obligations:
Total Market value $459,002,619) 450,000 450,000
Bank of America
0.950%, dated 3/31/04, matures 4/1/04,
repurchase price $125,003,299
(collateralized by U.S. Treasury Obligations:
Total Market value $127,500,988) 125,000 125,000
Bear Stearns
1.020%, dated 3/31/04, matures 4/1/04,
repurchase price $1,150,032,583
(collateralized by U.S. Treasury Obligations:
Total Market value $1,177,388,889) 1,150,000 1,150,000
CS First Boston
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $175,004,910
(collateralized by U.S. Treasury Obligations:
Total Market value $178,500,700) 175,000 175,000
Deutsche Bank
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $450,012,625
(collateralized by U.S. Treasury Obligations:
Total Market value $459,000,665) 450,000 450,000
Goldman Sachs
1.000%, dated 3/31/04, matures 4/1/04,
repurchase price $1,450,040,278
(collateralized by U.S. Treasury Obligations:
Total Market value $1,479,000,152) 1,450,000 1,450,000
Greenwich Capital
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $450,012,625
(collateralized by U.S. Treasury Obligations:
Total Market value $459,000,674) 450,000 450,000
Merrill Lynch
0.980%, dated 3/31/04, matures 4/1/04,
repurchase price $450,012,250
(collateralized by U.S. Treasury Obligations:
Total Market value $459,002,519) 450,000 450,000
Morgan Stanley
0.990%, dated 3/31/04, matures 4/1/04,
repurchase price $450,012,375
(collateralized by U.S. Treasury Obligations:
Total Market value $459,000,489) 450,000 450,000
Societe Generale
1.000%, dated 3/31/04, matures 4/1/04,
repurchase price $125,003,472
(collateralized by U.S. Treasury Obligations:
Total Market value $127,778,945) $ 125,000 $ 125,000
UBS Warburg
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $1,186,178,278
(collateralized by U.S. Treasury Obligations:
Total Market value $1,209,873,211) 1,186,145 1,186,145
Wachovia
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $300,008,417
(collateralized by U.S. Treasury Obligations:
Total Market value $306,001,337) 300,000 300,000
Wachovia
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $125,003,507
(collateralized by U.S. Treasury Obligations:
Total Market value $127,500,820) 125,000 125,000
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $7,811,145) 7,811,145
-------------
TOTAL INVESTMENTS - 99.9%
(Cost $10,179,011) 10,179,011
-------------
OTHER ASSETS AND LIABILITIES, NET - 0.1% 14,148
-------------
TOTAL NET ASSETS - 100.0% $ 10,193,159
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
10
<Page>
TREASURY RESERVE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 22.6%
U.S. Treasury Notes
3.375%, 04/30/04 $ 25,000 $ 25,042
3.250%, 05/31/04 20,000 20,070
2.875%, 06/30/04 95,000 95,425
2.125%, 08/31/04 105,000 105,383
1.875%, 09/30/04 20,000 20,055
5.875%, 11/15/04 85,000 87,403
2.000%, 11/30/04 55,000 55,246
-------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $408,624) 408,624
-------------
REPURCHASE AGREEMENTS - 77.3%
ABN AMRO
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $75,002,104
(collateralized by U.S. Treasury Obligations:
Total Market value $76,500,000) 75,000 75,000
Bank of America
0.950%, dated 3/31/04, matures 4/1/04,
repurchase price $75,001,979
(collateralized by U.S. Treasury Obligations:
Total Market value $76,500,181) 75,000 75,000
Bear Stearns
1.020%, dated 3/31/04, matures 4/1/04,
repurchase price $350,009,917
(collateralized by U.S. Treasury Obligations:
Total Market value $358,271,127) 350,000 350,000
CS First Boston
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $75,002,104
(collateralized by U.S. Treasury Obligations:
Total Market value $76,500,521) 75,000 75,000
Goldman Sachs
1.000%, dated 3/31/04, matures 4/1/04,
repurchase price $75,002,083
(collateralized by U.S. Treasury Obligations:
Total Market value $76,500,159) 75,000 75,000
Greenwich Capital
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $300,008,417
(collateralized by U.S. Treasury Obligations:
Total Market value $306,001,282) 300,000 300,000
Lehman Brothers
1.000%, dated 3/31/04, matures 4/1/04,
repurchase price $75,002,083
(collateralized by U.S. Treasury Obligations:
Total Market value $76,475,154) 75,000 75,000
Merrill Lynch
0.980%, dated 3/31/04, matures 4/1/04,
repurchase price $75,002,042
(collateralized by U.S. Treasury Obligations:
Total Market value $76,502,654) 75,000 75,000
Morgan Stanley
0.990%, dated 3/31/04, matures 4/1/04,
repurchase price $75,002,063
(collateralized by U.S. Treasury Obligations:
Total Market value $76,500,773) 75,000 75,000
UBS Warburg
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $149,066,182
(collateralized by U.S. Treasury Obligations:
Total Market value $152,047,529) 149,062 149,062
Wachovia
1.010%, dated 3/31/04, matures 4/1/04,
repurchase price $75,002,104
(collateralized by U.S. Treasury Obligations:
Total Market value $76,501,002) $ 75,000 $ 75,000
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,399,062) 1,399,062
-------------
TOTAL INVESTMENTS - 99.9%
(Cost $1,807,686) 1,807,686
-------------
OTHER ASSETS AND LIABILITIES, NET - 0.1% 2,160
-------------
TOTAL NET ASSETS - 100.0% $ 1,809,846
-------------
</Table>
11
<Page>
STATEMENTS OF ASSETS AND LIABILITIES March 31, 2004 (unaudited), in thousands,
except per share data
<Table>
<Caption>
GOVERNMENT PRIME TAX FREE TREASURY TREASURY
OBLIGATIONS OBLIGATIONS OBLIGATIONS OBLIGATIONS RESERVE
FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at amortized cost $ 1,938,439 $ 15,395,737 $ 1,426,453 $ 2,367,866 $ 408,624
Repurchase agreements, at amortized cost 1,419,164 345,629 -- 7,811,145 1,399,062
Cash -- 1 -- 29 --
Receivable for securities sold -- -- 15,175 -- --
Dividends and interest receivable 5,262 34,169 4,088 22,525 3,760
Capital shares sold 70 1,314 -- 791 --
Prepaid expenses and other assets 115 295 99 177 80
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 3,363,050 15,777,145 1,445,815 10,202,533 1,811,526
============================================================================================================================
LIABILITIES:
Bank overdraft 2 -- -- -- --
Dividends payable 1,507 8,119 609 4,337 192
Payable for investment securities purchased -- -- 23,062 -- --
Capital shares redeemed 433 980 -- 82 --
Payable to affiliates 590 2,631 299 1,728 305
Payable for distribution and shareholder
servicing fees 883 3,743 394 3,168 1,164
Accrued expenses and other liabilities 15 66 7 59 19
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 3,430 15,539 24,371 9,374 1,680
============================================================================================================================
NET ASSETS $ 3,359,620 $ 15,761,606 $ 1,421,444 $ 10,193,159 $ 1,809,846
============================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital 3,359,651 15,761,349 1,421,434 10,193,226 1,809,854
Undistributed (distributions in excess of)
net investment income (28) 172 (4) (5) (8)
Accumulated net realized gain (loss) on
investments (3) 85 14 (62) --
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 3,359,620 $ 15,761,606 $ 1,421,444 $ 10,193,159 $ 1,809,846
============================================================================================================================
CLASS A:
Net assets $ 145,734 $ 1,091,193 $ 173,957 $ 1,247,781 $ 1,809,846
Shares issued and outstanding
($0.01 par value -- 5 billion authorized) 145,665 1,091,225 173,991 1,247,757 1,809,871
Net asset value, offering price, and
redemption price per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
CLASS B:
Net assets -- $ 6,974 -- -- --
Shares issued and outstanding
($0.01 par value -- 20 billion authorized) -- 6,979 -- -- --
Net asset value, offering price, and
redemption price per share -- $ 1.00 -- -- --
CLASS C:
Net assets -- $ 6,477 -- -- --
Shares issued and outstanding
($0.01 par value -- 1 billion authorized) -- 6,478 -- -- --
Net asset value, offering price, and
redemption price per share -- $ 1.00 -- -- --
CLASS D:
Net assets $ 833,587 $ 770,196 $ 20,039 $ 5,586,245 --
Shares issued and outstanding
($0.01 par value -- 20 billion authorized) 833,602 770,199 20,039 5,586,295 --
Net asset value, offering price, and
redemption price per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 --
CLASS I:
Net assets -- $ 1,495,426 -- -- --
Shares issued and outstanding
($0.01 par value -- 20 billion authorized) -- 1,495,457 -- -- --
Net asset value, offering price, and
redemption price per share -- $ 1.00 -- -- --
CLASS Y:
Net assets $ 2,000,084 $ 5,939,133 $ 871,974 $ 3,225,426 --
Shares issued and outstanding
($0.01 par value -- 20 billion authorized) 2,000,187 5,939,028 871,978 3,225,456 --
Net asset value, offering price, and
redemption price per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 --
CLASS Z:
Net assets $ 38,599 $ 3,057,189 $ 103,239 $ 93,606 --
Shares issued and outstanding
($0.01 par value -- 20 billion authorized) 38,599 3,057,179 103,239 93,606 --
Net asset value, offering price, and
redemption price per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 --
PIPER JAFFRAY:
Net assets $ 341,616 $ 3,395,018 $ 252,235 $ 40,101 --
Shares issued and outstanding
($0.01 par value -- 20 billion authorized) 341,684 3,394,998 252,252 40,101 --
Net asset value, offering price, and
redemption price per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 --
</Table>
The accompanying notes are an integral part of the financial statements.
12
<Page>
STATEMENTS OF OPERATIONS For the six months ended March 31, 2004 (unaudited), in
thousands
<Table>
<Caption>
GOVERNMENT PRIME TAX FREE TREASURY TREASURY
OBLIGATIONS OBLIGATIONS OBLIGATIONS OBLIGATIONS RESERVE
FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 16,672 $ 95,774 $ 7,671 $ 56,040 $ 10,639
Securities lending 34 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 16,706 95,774 7,671 56,040 10,639
============================================================================================================================
EXPENSES:
Investment advisory fees 1,514 8,270 743 5,366 1,010
Co-administration fees and expenses (including per
account transfer agency fees) 2,122 12,818 1,075 7,291 1,328
Custodian fees 151 827 74 536 101
Directors' fees 26 133 12 96 21
Registration fees 40 68 38 35 29
Printing 34 172 16 125 27
Professional fees 57 294 27 213 45
Other 53 273 25 198 42
Distribution and shareholder servicing fees - Class A 320 2,332 392 3,257 7,578
Distribution and shareholder servicing fees - Class B -- 31 -- -- --
Distribution and shareholder servicing fees - Class C -- 29 -- -- --
Distribution and shareholder servicing fees - Class D 1,669 1,562 40 11,123 --
Shareholder servicing fees - Class I -- 1,408 -- -- --
Shareholder servicing fees - Class Y 2,070 8,077 1,190 4,543
Shareholder servicing fees - Piper Jaffray 986 9,725 731 389 --
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 9,042 46,019 4,363 33,172 10,181
============================================================================================================================
Less: Fee waivers (815) (2,108) (411) (2,764) (683)
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 8,227 43,911 3,952 30,408 9,498
============================================================================================================================
INVESTMENT INCOME - NET 8,479 51,863 3,719 25,632 1,141
- ----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS 9 85 1 -- --
============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 8,488 $ 51,948 $ 3,720 $ 25,632 $ 1,141
============================================================================================================================
</Table>
13
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
GOVERNMENT PRIME
OBLIGATIONS FUND OBLIGATIONS FUND
- -----------------------------------------------------------------------------------------------------------
10/1/03 10/1/02 10/1/03 10/1/02
3/31/04 9/30/03 3/31/04 9/30/03
- -----------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED)
OPERATIONS:
Investment income - net $ 8,479 $ 25,267 $ 51,863 $ 150,493
Net realized gain on investments 9 -- 85 6
- -----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 8,488 25,267 51,948 150,499
- -----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (226) (523) (1,764) (348)
Class B -- -- (2) (11)
Class C -- -- (2) (6)
Class D (2,101) (5,707) (2,061) (6,265)
Class I -- -- (6,278) (25,049)
Class Y (5,412) (15,558) (21,909) (81,697)
Class Z (66) -- (13,428) (3,190)
Piper Jaffray (675) (3,478) (6,419) (33,928)
Net realized gain on investments:
Class A -- -- (2) --
Class B -- -- -- --
Class C -- -- -- --
Class D -- -- -- --
Class I -- -- -- --
Class Y -- -- (3) --
Class Z -- -- (1) --
Piper Jaffray -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Total distributions (8,480) (25,266) (51,869) (150,494)
===========================================================================================================
CAPITAL SHARE TRANSACTIONS AT NET
ASSET VALUE OF $1.00 PER SHARE:
Class A:
Proceeds from sales 237,355 215,734 1,910,543 504,642
Reinvestment of distributions 175 1 2,145 1
Payments for redemptions (243,208) (257,042) (2,315,697) (417,928)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class A transactions (5,678) (41,307) (403,009) 86,715
- -----------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales -- -- 1,289 4,397
Reinvestment of distributions -- -- 2 13
Payments for redemptions -- -- (2,396) (6,680)
- -----------------------------------------------------------------------------------------------------------
Decrease in net assets from Class B
transactions -- -- (1,105) (2,270)
- -----------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- -- 1,828 15,669
Reinvestment of distributions -- -- 1 4
Payments for redemptions -- -- (2,089) (11,894)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class C transactions -- -- (260) 3,779
- -----------------------------------------------------------------------------------------------------------
Class D:
Proceeds from sales 1,906,686 3,531,232 2,725,318 6,138,802
Reinvestment of distributions 3 54 24 556
Payments for redemptions (1,976,046) (3,056,653) (2,587,614) (6,130,325)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class D transactions (69,357) 474,633 137,728 9,033
- -----------------------------------------------------------------------------------------------------------
Class I:
Proceeds from sales -- -- 3,734,027 8,342,321
Reinvestment of distributions -- -- 637 2,257
Payments for redemptions -- -- (3,870,933) (9,291,624)
- -----------------------------------------------------------------------------------------------------------
Decrease in net assets from Class I
transactions -- -- (136,269) (947,046)
- -----------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 8,662,382 12,298,176 40,493,029 66,564,151
Reinvestment of distributions 2,096 6,776 9,763 37,417
Payments for redemptions (8,214,843) (12,317,387) (41,394,285) (68,437,758)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class Y transactions 449,635 (12,435) (891,493) (1,836,190)
- -----------------------------------------------------------------------------------------------------------
Class Z:
Proceeds from sales 138,837 -- 9,674,119 4,895,562
Reinvestment of distributions -- -- 1,323 62
Payments for redemptions (100,237) -- (9,846,628) (1,667,259)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class Z transactions 38,600 -- (171,186) 3,228,365
- -----------------------------------------------------------------------------------------------------------
Piper Jaffray:
Proceeds from sales 279,660 813,989 1,866,995 10,000,038
Reinvestment of distributions 549 3,488 5,402 35,428
Payments for redemptions (314,929) (878,280) (1,736,436) (11,131,842)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Piper Jaffray transactions (34,720) (60,803) 135,961 (1,096,376)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from capital share transactions 378,480 360,088 (1,329,633) (553,990)
- -----------------------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets 378,488 360,089 (1,329,554) (553,985)
NET ASSETS AT BEGINNING OF PERIOD 2,981,132 2,621,043 17,091,160 17,645,145
===========================================================================================================
NET ASSETS AT END OF PERIOD $ 3,359,620 $ 2,981,132 $ 15,761,606 $ 17,091,160
===========================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN
EXCESS OF) NET INVESTMENT INCOME
(LOSS) AT END OF PERIOD $ (28) $ (27) $ 172 $ 172
===========================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
14
<Page>
<Table>
<Caption>
TAX FREE TREASURY TREASURY
OBLIGATIONS FUND OBLIGATIONS FUND RESERVE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02
3/31/04 9/30/03 3/31/04 9/30/03 3/31/04 9/30/03
- -----------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
OPERATIONS:
Investment income - net $ 3,719 $ 8,966 $ 25,632 $ 78,089 $ 1,141 $ 10,163
Net realized gain on investments 1 95 -- 2 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 3,720 9,061 25,632 78,091 1,141 10,163
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (220) (880) (1,918) (8,107) (1,149) (10,163)
Class B -- -- -- -- -- --
Class C -- -- -- -- -- --
Class D (43) (131) (12,359) (36,523) -- --
Class I -- -- -- -- -- --
Class Y (2,774) (6,028) (10,800) (31,412) -- --
Class Z (265) -- (329) -- -- --
Piper Jaffray (417) (1,927) (226) (2,047) -- --
Net realized gain on investments: -- -- -- -- -- --
Class A (6) -- -- -- -- --
Class B -- -- -- -- -- --
Class C -- -- -- -- -- --
Class D (1) -- -- -- -- --
Class I -- -- -- -- -- --
Class Y (48) -- -- -- -- --
Class Z -- -- -- -- -- --
Piper Jaffray (18) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions (3,792) (8,966) (25,632) (78,089) (1,149) (10,163)
===================================================================================================================================
CAPITAL SHARE TRANSACTIONS AT NET
ASSET VALUE OF $1.00 PER SHARE:
Class A:
Proceeds from sales 188,686 389,270 1,782,264 2,891,552 1,727,173 3,491,491
Reinvestment of distributions 151 -- 63 48 805 9,039
Payments for redemptions (231,756) (472,655) (2,157,619) (3,185,732) (1,873,476) (4,339,951)
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class A transactions (42,919) (83,385) (375,292) (294,132) (145,498) (839,421)
- -----------------------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales -- -- -- -- -- --
Reinvestment of distributions -- -- -- -- -- --
Payments for redemptions -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class B
transactions -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- -- -- -- -- --
Reinvestment of distributions -- -- -- -- -- --
Payments for redemptions -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class C transactions -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Class D:
Proceeds from sales 43,832 69,558 14,206,569 36,795,843 -- --
Reinvestment of distributions -- -- -- 32 -- --
Payments for redemptions (43,136) (71,168) (14,340,453) (36,231,031) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class D transactions 696 (1,610) (133,884) 564,844 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Class I:
Proceeds from sales -- -- -- -- -- --
Reinvestment of distributions -- -- -- -- -- --
Payments for redemptions -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class I
transactions -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 1,002,500 2,638,663 10,916,092 20,137,572 -- --
Reinvestment of distributions 448 741 2,149 7,504 -- --
Payments for redemptions (1,011,611) (2,342,910) (11,263,209) (19,571,299) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class Y transactions (8,663) 296,494 (344,968) 573,777 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Class Z:
Proceeds from sales 311,533 -- 335,662 -- -- --
Reinvestment of distributions 34 -- -- -- -- --
Payments for redemptions (208,328) -- (242,057) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class Z transactions 103,239 -- 93,605 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Piper Jaffray:
Proceeds from sales 166,407 430,912 141,450 1,329,721 -- --
Reinvestment of distributions 355 2,073 58 318 -- --
Payments for redemptions (169,873) (490,240) (311,155) (1,081,952) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Piper Jaffray transactions (3,111) (57,255) (169,647) 248,087 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from capital share transactions 49,242 154,244 (930,186) 1,092,576 (145,498) (839,421)
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets 49,170 154,339 (930,186) 1,092,578 (145,506) (839,421)
NET ASSETS AT BEGINNING OF PERIOD 1,372,274 1,217,935 11,123,345 10,030,767 1,955,352 2,794,773
===================================================================================================================================
NET ASSETS AT END OF PERIOD $ 1,421,444 $ 1,372,274 $ 10,193,159 $ 11,123,345 $ 1,809,846 $ 1,955,352
===================================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN
EXCESS OF) NET INVESTMENT INCOME
(LOSS) AT END OF PERIOD $ (4) $ (4) $ (5) $ (5) $ (8) $ --
===================================================================================================================================
</Table>
15
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
NET ASSET DIVIDENDS NET ASSET
VALUE NET FROM NET VALUE NET ASSETS
BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF
OF PERIOD INCOME INCOME PERIOD RETURN (6) PERIOD (000)
- -----------------------------------------------------------------------------------------------------------------------------
GOVERNMENT OBLIGATIONS FUND
Class A
2004 (1) (2) $ 1.00 $ 0.002 $ (0.002) $ 1.00 0.18% $ 145,734
2003 1.00 0.006 (0.006) 1.00 0.52 60,206
2002 1.00 0.014 (0.014) 1.00 1.41 101,513
2001(3) 1.00 0.001 (0.001) 1.00 0.05 96,036
Class D
2004 (1) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.25% $ 833,587
2003 1.00 0.008 (0.008) 1.00 0.78 902,940
2002 1.00 0.015 (0.015) 1.00 1.56 428,307
2001 1.00 0.046 (0.046) 1.00 4.68 609,315
2000 1.00 0.055 (0.055) 1.00 5.59 472,078
1999 1.00 0.044 (0.044) 1.00 4.52 439,287
Class Y
2004 (1) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.33% $ 2,000,084
2003 1.00 0.009 (0.009) 1.00 0.93 1,550,445
2002 1.00 0.017 (0.017) 1.00 1.71 1,562,880
2001 1.00 0.047 (0.047) 1.00 4.84 1,041,700
2000 1.00 0.056 (0.056) 1.00 5.75 937,230
1999 1.00 0.046 (0.046) 1.00 4.67 938,897
Class Z
2004 (1) (4) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.30% $ 38,599
Piper Jaffray
2004 (1) (5) $ 1.00 $ 0.002 $ (0.002) $ 1.00 0.17% $ 341,616
2003 1.00 0.006 (0.006) 1.00 0.65 467,541
2002 1.00 0.014 (0.014) 1.00 1.41 528,343
2001 1.00 0.044 (0.044) 1.00 4.53 490,164
2000 1.00 0.053 (0.053) 1.00 5.43 470,587
1999 1.00 0.043 (0.043) 1.00 4.36 435,227
</Table>
(1) For the six months ended March 31, 2004 (unaudited). All ratios for the
period have been annualized, except total return.
(2) On December 1, 2003, existing Class S shares of the fund were designated as
Class A shares.
(3) Commenced operations on September 24, 2001. All ratios for the period have
been annualized, except total return.
(4) Class Z shares have been offered since December 1, 2003. All ratios for the
period have been annualized, except total return.
(5) On December 1, 2003, existing Class A shares of the fund were designated as
Piper Jaffray shares.
(6) Total return would have been lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
16
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
EXPENSES TO INCOME NET ASSETS TO AVERAGE NET
AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING
NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- --------------------------------------------------------------------------------------------------------------
GOVERNMENT OBLIGATIONS FUND
Class A
2004 (1) (2) 0.75% 0.35% 0.80% 0.30%
2003 0.75 0.67 0.81 0.61
2002 0.75 1.42 0.81 1.36
2001 (3) 0.70 2.66 0.80 2.56
Class D
2004 (1) 0.60% 0.51% 0.65% 0.46%
2003 0.60 0.73 0.65 0.68
2002 0.60 1.57 0.66 1.51
2001 0.60 4.51 0.66 4.45
2000 0.60 5.47 0.66 5.41
1999 0.60 4.44 0.67 4.37
Class Y
2004 (1) 0.45% 0.65% 0.50% 0.60%
2003 0.45 0.93 0.51 0.87
2002 0.45 1.68 0.51 1.62
2001 0.45 4.75 0.51 4.69
2000 0.45 5.59 0.51 5.53
1999 0.45 4.57 0.52 4.50
Class Z
2004 (1) (4) 0.20% 0.90% 0.25% 0.85%
Piper Jaffray
2004 (1) (5) 0.76% 0.34% 0.81% 0.29%
2003 0.73 0.65 0.78 0.60
2002 0.75 1.39 0.81 1.33
2001 0.75 4.41 0.81 4.35
2000 0.76 5.29 0.82 5.23
1999 0.75 4.28 0.82 4.21
</Table>
17
<Page>
<Table>
<Caption>
NET ASSET DIVIDENDS NET ASSET
VALUE NET FROM NET VALUE NET ASSETS
BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF
OF PERIOD INCOME INCOME PERIOD RETURN (7) PERIOD (000)
- -----------------------------------------------------------------------------------------------------------------------------
PRIME OBLIGATIONS FUND
Class A
2004 (1) (2) $ 1.00 $ 0.002 $ (0.002) $ 1.00 0.19% $ 1,091,193
2003 1.00 0.007 (0.007) 1.00 0.67 120,863
2002 1.00 0.014 (0.014) 1.00 1.46 34,147
2001 (3) 1.00 -- -- 1.00 0.04 --
Class B
2004 (1) $ 1.00 $ -- $ -- $ 1.00 0.02% $ 6,974
2003 1.00 0.001 (0.001) 1.00 0.04 8,079
2002 1.00 0.007 (0.007) 1.00 0.75 10,350
2001 1.00 0.038 (0.038) 1.00 3.92 7,393
2000 1.00 0.047 (0.047) 1.00 4.85 4,009
1999 1.00 0.038 (0.038) 1.00 3.85 4,007
Class C
2004 (1) $ 1.00 $ -- $ -- $ 1.00 0.02% $ 6,477
2003 1.00 0.001 (0.001) 1.00 0.14 6,736
2002 1.00 0.007 (0.007) 1.00 0.75 2,958
2001 1.00 0.038 (0.038) 1.00 3.90 2,163
2000 1.00 0.047 (0.047) 1.00 4.85 371
1999 (4) 1.00 0.024 (0.024) 1.00 2.47 341
Class D
2004 (1) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.26% $ 770,196
2003 1.00 0.008 (0.008) 1.00 0.82 632,464
2002 1.00 0.016 (0.016) 1.00 1.61 623,431
2001 1.00 0.047 (0.047) 1.00 4.81 738,871
2000 1.00 0.056 (0.056) 1.00 5.74 515,806
1999 1.00 0.046 (0.046) 1.00 4.73 426,004
Class I
2004 (1) $ 1.00 $ 0.004 $ (0.004) $ 1.00 0.38% $ 1,495,426
2003 1.00 0.010 (0.010) 1.00 1.05 1,631,687
2002 1.00 0.018 (0.018) 1.00 1.84 2,578,732
2001 (3) 1.00 0.001 (0.001) 1.00 0.06 2,932,264
Class Y
2004 (1) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.34% $ 5,939,133
2003 1.00 0.010 (0.010) 1.00 0.97 6,830,595
2002 1.00 0.017 (0.017) 1.00 1.76 8,666,782
2001 1.00 0.048 (0.048) 1.00 4.96 7,577,143
2000 1.00 0.057 (0.057) 1.00 5.90 6,431,029
1999 1.00 0.048 (0.048) 1.00 4.89 6,228,207
Class Z
2004 (1) $ 1.00 $ 0.005 $ (0.005) $ 1.00 0.48% $ 3,057,189
2003 (5) 1.00 0.002 (0.002) 1.00 0.16 3,228,365
Piper Class
2004 (1) (6) $ 1.00 $ 0.002 $ (0.002) $ 1.00 0.16% $ 3,395,018
2003 1.00 0.006 (0.006) 1.00 0.63 4,632,371
2002 1.00 0.014 (0.014) 1.00 1.43 5,728,745
2001 1.00 0.045 (0.045) 1.00 4.61 5,784,153
2000 1.00 0.054 (0.054) 1.00 5.52 4,614,094
1999 1.00 0.044 (0.044) 1.00 4.51 4,170,881
</Table>
(1) For the six months ended March 31, 2004 (unaudited). All ratios for the
period have been annualized, except total return.
(2) On December 1, 2003, existing Class S shares of the fund were designated as
Class A shares.
(3) Class A and Class I shares have been offered since September 24, 2001. All
ratios for the period have been annualized, except total return.
(4) Class C shares have been offered since February 1, 1999. All ratios for the
period have been annualized, except total return.
(5) Class Z shares have been offered since August 1, 2003. All ratios for the
period have been annualized, except total return.
(6) On December 1, 2003, existing Class A shares of the fund were designated as
Piper Jaffray shares.
(7) Total return would have been lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
18
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
EXPENSES TO INCOME NET ASSETS TO AVERAGE NET
AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING
NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- --------------------------------------------------------------------------------------------------------------
PRIME OBLIGATIONS FUND
Class A
2004 (1) (2) 0.78% 0.38% 0.80% 0.36%
2003 0.78 0.59 0.80 0.57
2002 0.78 1.31 0.81 1.28
2001 (3) -- -- -- --
Class B
2004 (1) 1.11% 0.05% 1.13% 0.03%
2003 1.36 0.10 1.38 0.08
2002 1.48 0.73 1.51 0.70
2001 1.48 3.74 1.51 3.71
2000 1.47 4.72 1.51 4.68
1999 1.45 3.78 1.51 3.72
Class C
2004 (1) 1.11% 0.05% 1.13% 0.03%
2003 1.33 0.07 1.35 0.05
2002 1.48 0.71 1.51 0.68
2001 1.49 3.66 1.51 3.64
2000 1.46 4.63 1.51 4.58
1999 (4) 1.45 3.75 1.51 3.69
Class D
2004 (1) 0.63% 0.53% 0.65% 0.51%
2003 0.63 0.80 0.65 0.78
2002 0.63 1.61 0.66 1.58
2001 0.63 4.55 0.65 4.53
2000 0.62 5.62 0.66 5.58
1999 0.60 4.62 0.66 4.56
Class I
2004 (1) 0.40% 0.76% 0.42% 0.74%
2003 0.40 1.07 0.42 1.05
2002 0.40 1.85 0.43 1.82
2001 (3) 0.48 3.00 0.54 2.94
Class Y
2004 (1) 0.48% 0.68% 0.50% 0.66%
2003 0.48 0.98 0.50 0.96
2002 0.48 1.73 0.51 1.70
2001 0.48 4.78 0.50 4.76
2000 0.47 5.75 0.51 5.71
1999 0.45 4.78 0.51 4.72
Class Z
2004 (1) 0.20% 0.96% 0.22% 0.94%
2003 (5) 0.20 0.97 0.22 0.95
Piper Class
2004 (1) (6) 0.83% 0.33% 0.85% 0.31%
2003 0.81 0.64 0.83 0.62
2002 0.81 1.42 0.84 1.39
2001 0.83 4.46 0.85 4.44
2000 0.82 5.40 0.86 5.36
1999 0.80 4.42 0.87 4.35
</Table>
19
<Page>
<Table>
<Caption>
NET ASSET DIVIDENDS NET ASSET
VALUE NET FROM NET VALUE NET ASSETS
BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF
OF PERIOD INCOME INCOME PERIOD RETURN (7) PERIOD (000)
- -----------------------------------------------------------------------------------------------------------------------------
TAX FREE OBLIGATIONS FUND (1)
Class A
2004 (2) (3) $ 1.00 $ 0.001 $ (0.001) $ 1.00 0.15% $ 173,957
2003 1.00 0.005 (0.005) 1.00 0.45 123,272
2002 1.00 0.008 (0.008) 1.00 0.85 206,647
2001 (4) 1.00 -- -- 1.00 0.02 402,813
Class D
2004 (2) $ 1.00 $ 0.002 $ (0.002) $ 1.00 0.22% $ 20,039
2003 1.00 0.006 (0.006) 1.00 0.60 19,343
2002 1.00 0.010 (0.010) 1.00 1.01 20,952
2001 1.00 0.028 (0.028) 1.00 2.86 32,615
2000 1.00 0.034 (0.034) 1.00 3.43 24,112
1999 1.00 0.026 (0.026) 1.00 2.66 33,464
Class Y
2004 (2) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.30% $ 871,974
2003 1.00 0.008 (0.008) 1.00 0.76 880,685
2002 1.00 0.011 (0.011) 1.00 1.16 584,132
2001 1.00 0.029 (0.029) 1.00 3.02 443,276
2000 1.00 0.035 (0.035) 1.00 3.59 375,891
1999 1.00 0.028 (0.028) 1.00 2.82 338,490
Class Z
2004 (2) (5) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.28% $ 103,239
Piper Jaffray
2004 (2) (6) $ 1.00 $ 0.001 $ (0.001) $ 1.00 0.15% $ 252,235
2003 1.00 0.005 (0.005) 1.00 0.48 348,974
2002 1.00 0.008 (0.008) 1.00 0.85 406,204
2001 1.00 0.027 (0.027) 1.00 2.72 497,631
2000 1.00 0.032 (0.032) 1.00 3.28 286,449
1999 1.00 0.025 (0.025) 1.00 2.51 268,626
TREASURY OBLIGATIONS FUND
Class A
2004 (2) (3) $ 1.00 $ 0.001 $ (0.001) $ 1.00 0.15% $ 1,247,781
2003 1.00 0.006 (0.006) 1.00 0.56 1,354,195
2002 1.00 0.013 (0.013) 1.00 1.34 1,648,326
2001 (4) 1.00 0.001 (0.001) 1.00 0.05 2,035,433
Class D
2004 (2) $ 1.00 $ 0.002 $ (0.002) $ 1.00 0.22% $ 5,586,245
2003 1.00 0.007 (0.007) 1.00 0.71 5,720,129
2002 1.00 0.015 (0.015) 1.00 1.49 5,155,284
2001 1.00 0.045 (0.045) 1.00 4.54 3,996,702
2000 1.00 0.052 (0.052) 1.00 5.37 3,252,551
1999 1.00 0.043 (0.043) 1.00 4.41 3,852,189
Class Y
2004 (2) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.30% $ 3,225,426
2003 1.00 0.009 (0.009) 1.00 0.86 3,570,394
2002 1.00 0.016 (0.016) 1.00 1.64 2,996,616
2001 1.00 0.046 (0.046) 1.00 4.70 2,929,764
2000 1.00 0.054 (0.054) 1.00 5.53 2,065,655
1999 1.00 0.045 (0.045) 1.00 4.57 2,620,803
Class Z
2004 (2) (5) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.28% $ 93,606
Piper Jaffray
2004 (2) (6) $ 1.00 $ 0.001 $ (0.001) $ 1.00 0.15% $ 40,101
2003 1.00 0.006 (0.006) 1.00 0.61 478,627
2002 1.00 0.013 (0.013) 1.00 1.34 230,541
2001 1.00 0.043 (0.043) 1.00 4.44 132,245
2000 1.00 0.052 (0.052) 1.00 5.27 30,506
1999 1.00 0.042 (0.042) 1.00 4.31 23,496
</Table>
(1) The financial highlights for the Tax Free Obligations Fund as set forth
herein include the historical financial highlights of the Qualivest Tax-Free
Money Market Fund Class A and Y shares. The assets of the Qualivest Tax-Free
Money Market Fund were acquired by the Tax Free Obligations Fund on November
25, 1997. In connection with such acquisition, (i) Class A shares of the
Qualivest Tax-Free Money Market Fund were exchanged for Class A shares of
the Tax Free Obligations Fund; and (ii) Class Y and Class Q shares of the
Qualivest Tax-Free Money Market Fund were exchanged for Class Y shares of
the Tax Free Obligations Fund.
(2) For the six months ended March 31, 2004 (unaudited). All ratios for the
period have been annualized, except total return.
(3) On December 1, 2003, existing Class S shares of the fund were designated as
Class A shares.
(4) Class A shares have been offered since September 24, 2001. All ratios for
the period have been annualized, except total return.
(5) Class Z shares have been offered since December 1, 2003. All ratios for the
period have been annualized, except total return.
(6) On December 1, 2003, existing Class A shares of the fund were designated as
Piper Jaffray shares.
(7) Total return would have been lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
20
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
EXPENSES TO INCOME NET ASSETS TO AVERAGE NET
AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING
NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- --------------------------------------------------------------------------------------------------------------
TAX FREE OBLIGATIONS FUND (1)
Class A
2004 (2) (3) 0.75% 0.28% 0.81% 0.22%
2003 0.75 0.48 0.81 0.42
2002 0.75 0.88 0.81 0.82
2001 (4) 0.70 1.67 0.76 1.61
Class D
2004 (2) 0.60% 0.43% 0.66% 0.37%
2003 0.60 0.59 0.65 0.54
2002 0.60 1.03 0.66 0.97
2001 0.60 2.84 0.66 2.78
2000 0.60 3.36 0.66 3.30
1999 0.60 2.62 0.67 2.55
Class Y
2004 (2) 0.45% 0.58% 0.51% 0.52%
2003 0.45 0.72 0.50 0.67
2002 0.45 1.14 0.51 1.08
2001 0.45 2.93 0.51 2.87
2000 0.45 3.53 0.51 3.47
1999 0.45 2.75 0.52 2.68
Class Z
2004 (2) (5) 0.20% 0.81% 0.26% 0.75%
Piper Jaffray
2004 (2) (6) 0.75% 0.28% 0.81% 0.22%
2003 0.72 0.48 0.77 0.43
2002 0.75 0.85 0.81 0.79
2001 0.74 2.63 0.80 2.57
2000 0.75 3.23 0.81 3.17
1999 0.74 2.47 0.82 2.39
TREASURY OBLIGATIONS FUND
Class A
2004 (2) (3) 0.75% 0.29% 0.80% 0.24%
2003 0.75 0.57 0.80 0.52
2002 0.75 1.34 0.81 1.28
2001 (4) 0.70 2.46 0.82 2.34
Class D
2004 (2) 0.60% 0.44% 0.65% 0.39%
2003 0.60 0.68 0.65 0.63
2002 0.60 1.48 0.66 1.42
2001 0.60 4.40 0.66 4.34
2000 0.60 5.23 0.66 5.17
1999 0.60 4.32 0.66 4.26
Class Y
2004 (2) 0.45% 0.59% 0.50% 0.54%
2003 0.45 0.85 0.51 0.79
2002 0.45 1.62 0.51 1.56
2001 0.45 4.48 0.51 4.42
2000 0.45 5.39 0.51 5.33
1999 0.45 4.49 0.51 4.43
Class Z
2004 (2) (5) 0.20% 0.85% 0.25% 0.80%
Piper Jaffray
2004 (2) (6) 0.75% 0.29% 0.80% 0.24%
2003 0.70 0.55 0.75 0.50
2002 0.75 1.29 0.81 1.23
2001 0.70 4.00 0.76 3.94
2000 0.70 5.16 0.76 5.10
1999 0.70 4.24 0.76 4.18
</Table>
21
<Page>
<Table>
<Caption>
NET ASSET DIVIDENDS NET ASSET
VALUE NET FROM NET VALUE NET ASSETS
BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF
OF PERIOD INCOME INCOME PERIOD RETURN (6) PERIOD (000)
- -----------------------------------------------------------------------------------------------------------------------------
TREASURY RESERVE FUND (1)
Class A
2004 (2) $ 1.00 $ 0.001 $ (0.001) $ 1.00 0.06% $ 1,809,846
2003 1.00 0.004 (0.004) 1.00 0.39 1,955,352
2002 1.00 0.011 (0.011) 1.00 1.15 2,794,773
2001 (3) 1.00 0.039 (0.039) 1.00 3.97 2,760,479
2000 (4) 1.00 0.05 (0.05) 1.00 5.04 2,284,168
1999 (5) 1.00 0.04 (0.04) 1.00 4.02 1,049,641
</Table>
(1) The financial highlights for the Treasury Reserve Fund as set forth herein
include the historical financial highlights of the Firstar U.S. Treasury
Money Market Fund class A shares. The assets of the Firstar U.S. Treasury
Money Market Fund were acquired by the Treasury Reserve Fund on September
24, 2001. In connection with such acquisition, Class A shares of the Firstar
U.S. Treasury Money Market Fund were exchanged for Class A shares of the
Treasury Reserve Fund.
(2) For the six months ended March 31, 2004 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
(3) For the period November 1, 2000 to September 30, 2001. Effective in 2001,
the Fund's fiscal year end was changed from October 31 to September 30. All
ratios for the period have been annualized, except total return.
(4) For the period December 1, 1999 to October 31, 2000. Effective in 2000, the
Fund's fiscal year end was changed from November 30 to October 31. All
ratios for the period have been annualized, except total return.
(5) For the year ended November 30, 1999.
(6) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
22
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
EXPENSES TO INCOME NET ASSETS TO AVERAGE NET
AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING
NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- --------------------------------------------------------------------------------------------------------------
TREASURY RESERVE FUND (1)
Class A
2004 (2) 0.94% 0.11% 1.01% 0.04%
2003 0.94 0.41 1.00 0.35
2002 0.94 1.15 1.00 1.09
2001 (3) 0.94 3.92 0.95 3.91
2000 (4) 0.99 4.98 1.09 4.88
1999 (5) 0.92 3.98 1.08 3.82
</Table>
23
<Page>
NOTES TO FINANCIAL STATEMENTS March 31, 2004 (unaudited)
1> ORGANIZATION
The First American Government Obligations Fund, Prime Obligations Fund, Tax
Free Obligations Fund, Treasury Obligations Fund, and Treasury Reserve Fund
(each a "Fund" and collectively, the "Funds") are mutual funds offered by
First American Funds, Inc. ("FAF"), which is a member of the First American
Family of Funds. FAF is registered under the Investment Company Act of 1940,
as amended, as an open-end investment management company. FAF's articles of
incorporation permit the board of directors to create additional funds in the
future.
FAF offers Class A, Class B, Class C, Class D, Class I, Class Y, Class Z, and
Piper Jaffray shares. Prior to December 1, 2003, Class A shares were named
Class S shares and Piper Jaffray shares were named Class A shares. Class A
shares are not subject to sales charges. Class B and Class C shares of the
Prime Obligations Fund are only available pursuant to an exchange for Class B
and Class C shares, respectively, of another fund in the First American
Family of Funds. Class B shares may be subject to a contingent deferred sales
charge for six years and automatically convert to Class A shares after eight
years. Class C shares may be subject to a contingent deferred sales charge
for 18 months. Class D, Class I, Class Y, Class Z, and Piper Jaffray shares
are offered only to qualifying institutional investors. Treasury Reserve Fund
offers only a single class of shares, which are not subject to sales charges.
Class B, Class C, and Class I shares are not offered by the Government
Obligations Fund, Tax Free Obligations Fund, Treasury Obligations Fund, or
Treasury Reserve Fund.
The Funds' prospectuses provide descriptions of each Fund's investment
objectives, policies and strategies. All classes of shares of a Fund have
identical voting, dividend, liquidation and other rights, and the same terms
and conditions, except that the level of distribution and shareholder
servicing fees charged may differ among classes and each class has exclusive
voting rights on any matters relating to that class' servicing or
distribution arrangements.
2> SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Funds are as follows:
SECURITY VALUATION - Investment securities held are stated at amortized cost,
which approximates market value. Under the amortized cost method, any
discount or premium is amortized ratably to the expected maturity of the
security and is included in interest income. In accordance with Rule 2a-7 of
the Securities and Exchange Act of 1940, the market value of the securities
held in the Funds are determined weekly using prices supplied by the Funds'
pricing services. This value is then compared to the securities' amortized
cost. Securities whose market price varies by more than 0.5% are identified
and validated with the pricing agent. If the difference between the aggregate
market price and aggregate amortized cost of all securities held by a Fund
exceeds 50% of the allowable 0.5% threshold, the administrators will notify
the Funds' board of directors. The board of directors will be kept apprised
of the situation until the difference is less than 50% of the allowable 0.5%
threshold. During the period no such notification was required.
SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security
transactions on the trade date of the security purchase or sale. Interest
income, including amortization of bond premium and discount, is recorded on
an accrual basis.
DISTRIBUTIONS TO SHAREHOLDERS - Distributions from net investment income are
declared on a daily basis and are payable on the first business day of the
following month.
EXPENSES - Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses are generally allocated to
the Funds on the basis of relative net assets of all Funds within the First
American Fund complex. Class specific expenses, such as 12b-1 fees, are borne
by that class. Income, other expenses, and realized and unrealized gains and
losses of a Fund are allocated to each respective class in proportion to the
relative net assets of each class.
FEDERAL TAXES - Each Fund is treated as a separate taxable entity. Each Fund
intends to continue to qualify as a regulated investment company as provided
in Subchapter M of the Internal Revenue Code, as amended, and to distribute
all taxable income, if any, to its shareholders. Accordingly, no provision
for federal income taxes is required.
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. In addition, due to the timing of dividend
distributions, the fiscal year in which the amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded
by the Fund. To the extent these differences are permanent, adjustments are
made to the appropriate equity accounts in the period that the differences
arise.
24
<Page>
The character of the distributions paid and declared for the six months ended
March 31, 2004 (estimated) and the fiscal year ended September 30, 2003, were
as follows (000):
<Table>
<Caption>
2004
--------------------------------------------------------------------------------------------
ORDINARY TAX-EXEMPT
FUND INCOME INCOME TOTAL
--------------------------------------------------------------------------------------------
Government Obligations Fund $ 8,479 $ -- $ 8,479
Prime Obligations Fund 51,863 -- 51,863
Tax Free Obligations Fund -- 3,719 3,719
Treasury Obligations Fund 25,632 -- 25,632
Treasury Reserve Fund 1,141 -- 1,141
</Table>
<Table>
<Caption>
2003
--------------------------------------------------------------------------------------------
ORDINARY TAX-EXEMPT
FUND INCOME INCOME TOTAL
--------------------------------------------------------------------------------------------
Government Obligations Fund $ 25,266 $ -- $ 25,266
Prime Obligations Fund 150,494 -- 150,494
Tax Free Obligations Fund -- 8,966 8,966
Treasury Obligations Fund 78,089 -- 78,089
Treasury Reserve Fund 10,163 -- 10,163
</Table>
As of September 30, 2003, the Funds' most recently completed fiscal year end,
the components of accumulated earnings on a tax-basis were:
<Table>
<Caption>
GOVERNMENT PRIME TAX FREE
OBLIGATIONS OBLIGATIONS OBLIGATIONS
--------------------------------------------------------------------------------------------
Undistributed ordinary income $ 1,356 $ 8,943 $ 20
Undistributed tax exempt income -- -- 507
Undistributed long term capital gains -- -- 66
---------------------------------------
Accumulated earnings 1,356 8,943 593
Accumulated capital and post-October losses (12) -- --
--------------------------------------------------------------------------------------------
Total accumulated earnings $ 1,344 $ 8,943 $ 593
--------------------------------------------------------------------------------------------
<Caption>
TREASURY TREASURY
OBLIGATIONS RESERVE
--------------------------------------------------------------------------------------------
Undistributed ordinary income $ 4,402 $ 235
Undistributed tax exempt income -- --
Undistributed long term capital gains -- --
-------------------------
Accumulated earnings 4,402 235
Accumulated capital and post-October losses (62) --
--------------------------------------------------------------------------------------------
Total accumulated earnings $ 4,340 $ 235
--------------------------------------------------------------------------------------------
</Table>
The differences between book-basis and tax-basis undistributed/accumulated
income, gains and losses is primarily due to distributions declared but not
paid by September 30, 2003.
As of September 30, 2003, the following Funds had capital loss carryforwards
(000):
<Table>
<Caption>
EXPIRATION YEAR 2006 2008 TOTAL
--------------------------------------------------------------------------------------------
FUND
--------------------------------------------------------------------------------------------
Government Obligations Fund $ 12 $ -- $ 12
Treasury Obligations Fund -- 62 62
</Table>
REPURCHASE AGREEMENTS - Each Fund may enter into repurchase agreements with
member banks of the Federal Reserve or registered broker dealers whom the
Funds' investment advisor deems creditworthy under guidelines approved by the
Funds' board of directors, subject to the seller's agreement to repurchase
such securities at a mutually agreed upon date and price. The repurchase
price generally equals the price paid by the Fund plus interest negotiated on
the basis of current short-term rates.
25
<Page>
Securities pledged as collateral for repurchase agreements are held by the
custodian bank until the respective agreements mature. Each Fund may also
invest in triparty repurchase agreements. Securities held as collateral for
triparty repurchase agreements are maintained in a segregated account by the
broker's custodian bank until the maturity of the repurchase agreement.
Provisions of the repurchase agreements ensure that the market value of the
collateral, including accrued interest thereon, is sufficient in the event of
default of the counterparty. If the counterparty defaults and the value of
the collateral declines or if the counterparty enters an insolvency
proceeding, realization of the collateral by the Fund may be delayed or
limited.
SECURITIES LENDING - In order to generate additional income, a Fund may lend
securities representing up to one-third of the value of its total assets
(which includes collateral for securities on loan) to broker-dealers, banks
or other institutional borrowers of securities. Each Fund's policy is to
maintain collateral in the form of cash, U.S. Government securities, or other
high-grade debt obligations equal to at least 100% of the value of securities
loaned. The collateral is then "marked to market" daily until the securities
are returned. As with other extensions of credit, there may be risks of delay
in recovery of the securities or even loss of rights in the collateral should
the borrower of the security fail financially.
U.S. Bancorp Asset Management, Inc. ("USBAM") serves as the securities
lending agent for the Funds in transactions involving the lending of
portfolio securities on behalf of the Funds. USBAM acts as the securities
lending agent pursuant to, and subject to compliance with conditions
contained in, an SEC exemptive order. USBAM currently receives fees equal to
25% of the Funds' income from securities lending transactions. The Funds also
pay an administrative fee equal to 0.025% based on the cash collateral held
for the securities on loan. Fees paid to USBAM from the Government
Obligations Fund for the six months ended March 31, 2004 were $24,991.
INTERFUND LENDING PROGRAM - Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Funds, along with other registerd
investment companies in the First American Family of Funds, may participate
in an interfund lending program. This program provides an alternative credit
facility allowing the Funds to borrow from, or lend money to, other
participating funds. The Funds did not have any interfund lending
transactions during the six months ended March 31, 2004.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS - The preparation
of financial statements, in conformity with accounting principles generally
accepted in the United States, requires management to make estimates and
assumptions that affect the reported amount of net assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported results of operations during the reporting
period. Actual results could differ from those estimates.
3> FEES AND EXPENSES
ADVISORY FEES - Pursuant to an investment advisory agreement (the
"Agreement"), USBAM manages each Fund's assets and furnishes related office
facilities, equipment, research and personnel. The Agreement requires each
Fund to pay USBAM a monthly fee based upon average daily net assets. At March
31, 2004, the fee for the Funds is equal to an annual rate of 0.10% of the
average daily net assets of each Fund. USBAM voluntarily waived fees during
the current fiscal period so that the total fund operating expenses as a
percentage of average daily net assets did not exceed the following amounts:
<Table>
<Caption>
SHARE CLASS A B C D I Y Z PIPER JAFFRAY
-----------------------------------------------------------------------------------------------------------------------
FUND
-----------------------------------------------------------------------------------------------------------------------
Government Obligations Fund 0.75% --% --% 0.60% --% 0.45% 0.20% 0.77%
Prime Obligations Fund 0.78 1.23 1.23 0.63 0.40 0.48 0.20 0.84
Tax Free Obligations Fund 0.75 -- -- 0.60 -- 0.45 0.20 0.75
Treasury Obligations Fund 0.75 -- -- 0.60 -- 0.45 0.20 0.75
Treasury Reserve Fund 0.94 -- -- -- -- -- -- --
</Table>
26
<Page>
CO-ADMINISTRATION FEES - USBAM, and U.S. Bancorp Fund Services, LLC,
("USBFS"), (collectively, the "Administrators"), serve as co-administrators
pursuant to a co-administration agreement between the Administrators and the
Funds. USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank").
Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the
co-administration agreement, the Administrators are compensated to provide,
or compensate other entities to provide, services to the Funds. These
services include various legal, oversight and administrative services,
accounting services, transfer agency and dividend disbursing services, and
shareholder services. The Funds pay the Administrators at an annual rate,
calculated daily and paid monthly, based on the average daily net assets of
all open-end mutual funds in the First American Family of Funds, equal to
each Fund's pro rata share of an amount equal to 0.15% of the aggregate
average daily net assets up to $8 billion, 0.135% on the next $17 billion of
the aggregate average daily net assets, 0.12% on the next $25 billion of the
aggregate average daily net assets, and 0.10% of the aggregate average daily
net assets in excess of $50 billion. The Funds pay transfer agent fees of
$18,500 per share class. These fees are allocated to each Fund based upon the
Fund's pro rata share of the aggregate average daily net assets of the Funds
that comprise FAF. Each Fund also pays additional per account fees for
transfer agent services. For the six months ended March 31, 2004,
administration and transfer agent fees paid to USBAM and USBFS for the Funds
included in this annual report were as follows (000):
<Table>
<Caption>
FUND AMOUNT
-----------------------------------------------------------------------------
Government Obligations Fund $ 1,972
Prime Obligations Fund 10,915
Tax Free Obligations Fund 978
Treasury Obligations Fund 6,998
Treasury Reserve Fund 1,296
</Table>
During the six months ended March 31, 2004, administration fees of $418,538
were waived on Class Z of Prime Obligations Fund.
CUSTODIAN FEES - U.S. Bank serves as the Funds' custodian pursuant to a
custodian agreement with FAF. The fee for each Fund is equal to an annual
rate of 0.01% of average daily net assets. All fees are computed daily and
paid monthly.
DISTRIBUTION AND SHAREHOLDER SERVICING (12b-1) FEES - Quasar Distributors,
LLC, ("Quasar"), a subsidiary of U.S. Bancorp, serves as distributor of the
Funds pursuant to a distribution agreement with FAF. Under the distribution
agreement, and pursuant to a plan adopted by each Fund under rule 12b-1 of
the Investment Company Act, each of the Funds pays Quasar a monthly
distribution and/or shareholder servicing fee equal to an annual rate of
0.25% of each Fund's average daily net assets of the Class A and Piper
Jaffray shares, 1.00% of the Class B shares, 1.00% of the Class C shares,
0.15% of the Class D shares, and 0.50% of the Treasury Reserve Fund. These
fees may be used by Quasar to provide compensation for sales support and
distribution activities for each class of the Funds. In addition, for Class B
shares and Class C shares, a portion of these fees may be used to provide
compensation for shareholder servicing activities. No distribution and
shareholder servicing fees are paid to Quasar by Class Y or Class I shares.
Under these distribution and service agreements, the following amounts were
retained by Quasar for the six months ended March 31, 2004 (000):
<Table>
<Caption>
FUND AMOUNT
-----------------------------------------------------------------------------
Government Obligations Fund $ 956
Prime Obligations Fund 6,235
Tax Free Obligations Fund 568
Treasury Obligations Fund 3,936
Treasury Reserve Fund 5,048
</Table>
SHAREHOLDER SERVICING (NON-12b-1) FEES - Effective August 1, 2003, FAF
entered into a shareholder service plan and agreement with USBAM, under which
USBAM has agreed to provide FAF, or will enter into written agreements with
other service providers pursuant to which the service providers will provide
FAF, with non-distribution-related services to shareholders of Class A, Class
D, Class I, Class Y, and Piper Jaffray shares, and Treasury Reserve Fund.
Under this plan and agreement, the Funds have agreed to pay USBAM a fee at an
annual rate of 0.25% of the average net asset value of the Class A, Class D,
Class Y, and Piper Jaffray shares, and the Treasury Reserve Fund, and a fee
at an annual rate of 0.20% of the average net asset value of the Class I
shares, computed daily and paid monthly. For the six months ended March 31,
2004,
27
<Page>
shareholder servicing fees paid by the Funds to USBAM were as follows (000):
<Table>
<Caption>
FUND AMOUNT
-----------------------------------------------------------------------------
Government Obligations Fund $ 329
Prime Obligations Fund 3,080
Tax Free Obligations Fund 290
Treasury Obligations Fund 1,201
Treasury Reserve Fund 2,524
</Table>
SALES CHARGES - A contingent deferred sales charge ("CDSC") is imposed on
redemptions made in the Class B shares. The CDSC varies depending on the
number of years from time of payment for the purchase of Class B shares until
the redemption of such shares. Class B shares automatically convert to Class
A shares after eight years.
<Table>
<Caption>
CONTINGENT DEFERRED SALES CHARGE
AS A PERCENTAGE OF DOLLAR
YEAR SINCE PURCHASE AMOUNT SUBJECT TO CHARGE
-----------------------------------------------------------------------------
First 5.00%
Second 5.00
Third 4.00
Fourth 3.00
Fifth 2.00
Sixth 1.00
Seventh --
Eighth --
</Table>
A CDSC of 1.00% is imposed on redemptions made in Class C shares for the
first 18 months.
The CDSC for Class B shares and Class C shares is imposed on the value of the
purchased shares, or the value at the time of redemption, whichever is less.
For the six months ended March 31, 2004, total sales charges retained by
affiliates of USBAM for distributing shares of the Prime Obligations Fund
were $2,370.
OTHER FEES - In addition to the investment advisory fees, custodian fees,
distribution and shareholder servicing fees, and co-administration fees, each
Fund is responsible for paying most other operating expenses including fees
and expenses of outside directors, registration fees, printing of shareholder
reports, legal, auditing, insurance and other miscellaneous expenses. For the
six months ended March 31, 2004, legal fees and expenses were paid to a law
firm of which the Secretary and two Assistant Secretaries of the Funds are
partners.
4> CONCENTRATION OF CREDIT RISK
The Tax Free Obligations Fund invests in securities that include revenue
bonds, tax and revenue anticipation notes, and general obligation bonds. At
March 31, 2004, the percentage of portfolio investments by each revenue
source was as follows:
<Table>
<Caption>
TAX FREE
OBLIGATIONS
FUND
-----------------------------------------------------------------------------
Revenue Bonds 87%
General Obligations 13
-----
100%
</Table>
The implied credit ratings of all portfolio holdings as a percentage of total
market value of investments at March 31, 2004, were as follows:
<Table>
<Caption>
STANDARD & POOR'S/ TAX FREE
MOODY'S OBLIGATIONS
RATINGS: FUND
-----------------------------------------------------------------------------
AAA/Aaa 31.0%
AA/Aa 65.7
A/A 3.3
NR --
</Table>
Securities rated by only one agency are shown in that category. Securities
rated by both agencies are shown with their lowest rating.
5> INDEMNIFICATIONS
The Funds enter into contracts that contain a variety of indemnifications.
The Funds maximum exposure under these arrangements is unknown. However, the
Funds have not had prior claims or losses pursuant to these contracts and
expect the risk of loss to be remote.
HOW TO OBTAIN A COPY OF THE FUNDS' PROXY VOTING POLICIES
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is
available (1) without charge upon request by calling 800.677. FUND; (2) at
firstamericanfunds.com; and (3) on the U.S. Securities and Exchange
Commission's website at sec.gov.
28
<Page>
Board of Directors First American Funds, Inc.
VIRGINIA STRINGER
Chairperson of First American Funds, Inc.
Owner and President of Strategic Management Resources, Inc.
BENJAMIN FIELD III
Director of First American Funds, Inc.
Senior Financial Advisor to, and formerly Senior Vice President, Chief Financial
Officer, and Treasurer of, Bemis Company, Inc.
MICKEY FORET
Director of First American Funds, Inc.
Consultant to, and formerly Executive Vice President and Chief Financial Officer
of, Northwest Airlines, Inc.
ROGER GIBSON
Director of First American Funds, Inc.
Retired; former Vice President of Cargo-United Airlines
VICTORIA HERGET
Director of First American Funds, Inc.
Investment Consultant; former Managing Director of Zurich Scudder Investments
LEONARD KEDROWSKI
Director of First American Funds, Inc.
Owner and President of Executive and Management Consulting, Inc.
RICHARD RIEDERER
Director of First American Funds, Inc.
Retired; former President and Chief Executive Officer of Weirton Steel
JOSEPH STRAUSS
Director of First American Funds, Inc.
Owner and President of Strauss Management Company
JAMES WADE
Director of First American Funds, Inc.
Owner and President of Jim Wade Homes
FIRST AMERICAN FUNDS, INC.'S BOARD OF DIRECTORS IS COMPRISED ENTIRELY OF
INDEPENDENT DIRECTORS.
<Page>
[FIRST AMERICAN FUNDS(TM) LOGO]
DIRECT FUND CORRESPONDENCE TO:
FIRST AMERICAN FUNDS
P.O. Box 1330
Minneapolis, MN 55440-1330
This report and the financial statements contained herein are not intended to be
a forecast of future events, a guarantee of future results, or investment
advice. Further, there is no assurance that certain securities will remain in or
out of each fund's portfolio.
This report is for the information of shareholders of the First American Funds,
Inc. It may also be used as sales literature when preceded or accompanied by a
current prospectus, which contains information concerning investment objectives,
risks, and charges and expenses of the Funds. Read the prospectus carefully
before investing.
THE FIGURES IN THIS REPORT REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE
FUTURE RESULTS. THE PRINCIPAL VALUE OF AN INVESTMENT AND INVESTMENT RETURN WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST.
INVESTMENT ADVISOR
U.S. BANCORP ASSET MANAGEMENT, INC.
800 Nicollet Mall
Minneapolis, Minnesota 55402
CO-ADMINISTRATORS
U.S. BANCORP ASSET MANAGEMENT, INC.
800 Nicollet Mall
Minneapolis, Minnesota 55402
U.S. BANCORP FUND SERVICES, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
CUSTODIAN
U.S. BANK NATIONAL ASSOCIATION
180 East Fifth Street
St. Paul, Minnesota 55101
DISTRIBUTOR
QUASAR DISTRIBUTORS, LLC
615 East Michigan Street, 2nd floor
Milwaukee, Wisconsin 53202
INDEPENDENT AUDITOR
ERNST & YOUNG LLP
220 South Sixth Street
Suite 1400
Minneapolis, Minnesota 55402
COUNSEL
DORSEY & WHITNEY LLP
50 South Sixth Street
Suite 1500
Minneapolis, Minnesota 55402
FIRST AMERICAN FUNDS
P.O. Box 1330
Minneapolis, MN 55440-1330
In an attempt to reduce shareholder costs and help eliminate duplication, First
American Funds will try to limit their mailing to one report for each address
that lists one or more shareholders with the same last name. If you would like
additional copies, please call First American Investor Services at 800.677.FUND.
Visit us at firstamericanfunds.com.
0135-04 5/2004 SAR-MM
<Page>
ITEM 2--CODE OF ETHICS - Did registrant adopt a code of ethics, as of the end of
the period covered by this report, that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party? If not, why not?
Briefly describe any amendments or waivers that occurred during the period.
State here if code of ethics/amendments/waivers are on website and give website
address. State here if fund will send code of ethics to shareholders without
charge upon request.
RESPONSE: Not applicable to semi-annual report.
ITEM 3--AUDIT COMMITTEE FINANCIAL EXPERT - Did the registrant's board of
directors determine that the registrant either: (i) has at least one audit
committee financial expert serving on its audit committee; or (ii) does not have
an audit committee financial expert serving on its audit committee? If yes,
disclose name of financial expert and whether he/she is "independent," (fund
may, but is not required, to disclose name/independence of more than one
financial expert) If no, explain why not.
RESPONSE: Not applicable to semi-annual report.
ITEM 4--PRINCIPAL ACCOUNTANT FEES AND SERVICES - Disclose annually only (not
answered until December 15, 2003).
RESPONSE: Not applicable to semi-annual report.
(a) Audit Fees - Disclose aggregate fees billed for each of the last
two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual
financial statements or services that are normally provided by the
accountant in connection with statutory and regulatory filings or
engagements for those fiscal years.
(b) Audit-Related Fees - Disclose aggregate fees billed in each of the
last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance
of the audit of the registrant's financial statements and are not
reported under paragraph (a) of this Item. Registrants shall
describe the nature of the services comprising the fees disclosed
under this category.
(c) Tax Fees - Disclose aggregate fees billed in each of the last two
fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising
the fees disclosed under this category.
(d) All Other Fees - Disclose aggregate fees billed in each of the last
two fiscal years for products and services provided by the
principal accountant, other than the services reported in
paragraphs (a) through (c) of this Item.
<Page>
Registrants shall describe the nature of the services comprising
the fees disclosed under this category.
(e)(1) Disclose the audit committee's pre-approval policies and procedures
pursuant to paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(e)(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50%, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial
statements for the most recent fiscal year that were attributed to work
performed by persons other than the principal accountant's full-time,
permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose
role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling,
controlled by, or under common control with the adviser that provides
ongoing services to the registrant for each of the last two fiscal
years of the registrant.
(h) Disclose whether the registrant's audit committee has considered
whether the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any subadviser whose
role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling,
controlled by, or under common control with the investment adviser that
provides ongoing services to the registrant that were not pre-approved
pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's independence.
ITEM 5--AUDIT COMMITTEE OF LISTED REGISTRANTS
RESPONSE: Not applicable.
ITEM 6 - Reserved.
ITEM 7--DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES - For closed-end funds that contain voting
securities in their portfolio, describe the policies and procedures that it uses
to determine how to vote proxies relating to those portfolio securities.
RESPONSE: Not applicable.
<Page>
ITEM 8 - Reserved.
ITEM 9--CONTROLS AND PROCEDURES
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) based on their evaluation of these controls and procedures
as of a date within 90 days of the filing date of the report that includes
the disclosure required by this paragraph.
RESPONSE: The registrant's Principal Executive Officer and Principal
Financial Officer have evaluated the registrant's disclosure controls and
procedures within 90 days of the date of this filing and have concluded
that the registrant's disclosure controls and procedures were effective, as
of that date, in ensuring that information required to be disclosed by the
registrant in this Form N-CSR was recorded, processed, summarized and
reported timely. Notwithstanding this conclusion, the registrant's
Principal Executive Officer and Principal Financial Officer seek continuous
improvements to the registrant's disclosure controls and procedures.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c)))
that occurred during the registrant's last fiscal half-year (the
registrant's second fiscal half-year in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
RESPONSE: There were no changes in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal half-year that have materially affected, or are reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 10 - EXHIBITS
10(a) - Attach code of ethics or amendments/waivers, unless code of ethics or
amendments/waivers is on website or offered to shareholders upon request without
charge.
RESPONSE: Not applicable to semi-annual report.
10(b) - Attach certifications (4 in total pursuant to Sections 302 and 906 for
PEO/PFO).
RESPONSE: Attached hereto.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
First American Funds, Inc.
By:
/s/ Thomas S. Schreier, Jr.
-------------------------------
Thomas S. Schreier, Jr.
President
Date: June 4, 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/ Thomas S. Schreier, Jr.
-------------------------------
Thomas S. Schreier, Jr.
President
Date: June 4, 2004
By:
/s/ Joseph M. Ulrey III
-------------------------------
Joseph M. Ulrey III
Treasurer
Date: June 4, 2004