<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 811-05309
---------------------------------------------
First American Investment Funds, Inc.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
800 Nicollet Mall Minneapolis, MN 55402
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
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>
Item 1. Report to Shareholders
<Page>
[FIRST AMERICAN FUNDS(TM) LOGO]
2004
SEMIANNUAL REPORT
TAX FREE
INCOME
FUNDS
[GRAPHIC]
"NOTHING BUT HARMONY, HONESTY, INDUSTRY, AND FRUGALITY ARE NECESSARY TO
MAKE US A GREAT AND HAPPY PEOPLE."
GEORGE WASHINGTON
JANUARY 29, 1789
[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.
INCOME FROM TAX-EXEMPT FUNDS MAY BE SUBJECT TO STATE AND LOCAL TAXES AND A
PORTION OF INCOME MAY BE SUBJECT TO THE STATE AND/OR FEDERAL ALTERNATIVE MINIMUM
TAX FOR CERTAIN INVESTORS. FEDERAL INCOME TAX RULES WILL APPLY TO ANY CAPITAL
GAINS DISTRIBUTIONS.
MUTUAL FUND INVESTING INVOLVES RISK; PRINCIPAL LOSS IS POSSIBLE.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
<Page>
FIRST AMERICAN FUNDS ONLINE
TABLE OF CONTENTS
<Table>
Schedule of Investments 2
Statements of Assets and Liabilities 56
Statements of Operations 58
Statements of Changes in Net Assets 60
Financial Highlights 64
Notes to Financial Statements 72
</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)
ARIZONA TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 97.2%
REVENUE BONDS - 75.1%
EDUCATION - 10.0%
Energy Management Services, Arizona State
University Project, Main Campus,
Callable 07/01/12 @ 100 (MBIA)
5.000%, 07/01/13 $ 500 $ 559
Gilbert Industrial Development Authority,
Southwest Student Services,
Pre-refunded 02/01/09 @ 102
5.850%, 02/01/19 (a) 1,000 1,152
Glendale Industrial Development Authority,
Callable 05/15/11 @ 101
5.750%, 05/15/21 250 269
University of Arizona Board of Regents, Series A,
Callable 12/01/09 @ 100 (FGIC)
5.800%, 06/01/24 150 169
---------------
2,149
---------------
HEALTHCARE - 18.3%
Arizona Health Facilities Authority,
John C. Lincoln Health Network,
Callable 12/01/12 @ 101
5.750%, 12/01/32 150 151
Arizona Health Facilities Authority,
The Terraces Project, Series A,
Callable 11/15/13 @ 101
7.500%, 11/15/23 200 203
Johnson City, Tennessee Health & Elderly
Facilities Authority,
Callable 07/01/12 @ 103
7.500%, 07/01/25 100 116
Mesa Industrial Development Authority, Discovery
Health Systems, Series A,
Callable 01/01/10 @ 101 (MBIA)
5.750%, 01/01/25 500 554
5.625%, 01/01/29 500 546
Scottsdale Industrial Development Authority,
Scottsdale Healthcare,
Callable 12/01/11 @ 101
5.700%, 12/01/21 1,000 1,073
University Medical Center Corporation,
Callable 07/01/14 @ 100
5.000%, 07/01/24 500 503
Yavapai Industrial Development Authority,
Yavapai Regional Medical Center,
Series A, Callable 08/01/13 @ 100 (RAAI)
5.250%, 08/01/21 375 395
Yavapai Industrial Development Authority,
Yavapai Regional Medical Center, Series A,
Callable 08/01/13 @ 100
6.000%, 08/01/33 100 104
Yuma Industrial Development Authority,
Yuma Regional Medical Center,
Callable 08/01/07 @ 102 (MBIA)
5.500%, 08/01/17 250 277
---------------
3,922
---------------
HOUSING - 5.2%
Douglas Community Housing Corporation,
Rancho La Perilla,
Callable 01/20/10 @ 102 (GNMA)
5.900%, 07/20/20 500 536
6.000%, 07/20/25 475 504
Phoenix Industrial Development Authority,
The Phoenix Authority, Series 1A,
Callable 06/01/10 @ 102
(FHLMC) (FNMA) (GNMA)
5.875%, 06/01/16 $ 75 $ 77
---------------
1,117
---------------
LEASE REVENUE - 1.6%
Navajo County Municipal Property Corporation,
Jail Facility (ACA)
5.625%, 07/01/09 310 348
---------------
MISCELLANEOUS - 2.7%
Arizona Student Loan Acquisition Authority,
Series A, Callable 11/01/09 @ 102 (AMT)
5.900%, 05/01/24 100 106
Greater Arizona Infrastructure Development
Authority, Series A,
Callable 08/01/08 @ 102 (MBIA)
5.625%, 08/01/20 200 225
Greater Arizona Infrastructure Development
Authority, Series A, Callable 08/01/13 @ 100
5.000%, 08/01/23 250 257
---------------
588
---------------
TAX REVENUE - 16.4%
Arizona School Facilities Board, State School
Improvement, Callable 07/01/12 @ 100
5.250%, 07/01/16 750 838
5.250%, 07/01/20 250 273
Oro Valley Municipal Water Systems,
Pre-refunded 07/01/08 @ 101 (MBIA)
5.550%, 07/01/17 (a) 100 114
Oro Valley, Excise Tax,
Callable 07/01/10 @ 101 (AMBAC)
5.200%, 07/01/14 400 450
Phoenix Civic Improvements, Excise Tax,
Callable 07/01/09 @ 101
5.750%, 07/01/16 300 343
Surprise Municipal Property Corporation,
Callable 07/01/09 @ 101 (FGIC)
5.700%, 07/01/20 300 349
Surprise Municipal Property Corporation,
Callable 07/01/14 @ 100 (AMBAC)
5.000%, 07/01/17 750 822
Tempe, Excise Tax, Series A,
Callable 07/01/09 @ 100
5.625%, 07/01/20 300 335
---------------
3,524
---------------
TRANSPORTATION - 12.7%
Arizona State Transportation Highway Board,
Pre-refunded 07/01/09 @ 100
5.750%, 07/01/18 (a) 200 231
Arizona State Transportation Highway Board,
Series A
5.000%, 07/01/09 400 449
Mesa Street & Highway,
Pre-refunded 07/01/09 @ 100 (FSA)
5.100%, 07/01/14 (a) 500 562
5.500%, 07/01/16 (a) 100 114
Phoenix Civic Improvements, Series B,
Callable 07/01/12 @ 100 (AMT) (FGIC)
5.250%, 07/01/21 250 263
5.250%, 07/01/27 750 780
</Table>
The accompanying notes are an integral part of the financial statements.
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2004
2
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Tucson Street & Highway Improvements,
Series 1994-E,
Callable 07/01/10 @ 100 (FGIC)
5.000%, 07/01/18 $ 300 $ 320
---------------
2,719
---------------
UTILITIES - 8.2%
Chandler Water & Sewer Improvements,
Callable 07/01/10 @ 101 (FSA)
5.800%, 07/01/17 250 289
Peoria Water & Sewer,
Callable 07/01/09 @ 100 (FGIC)
5.000%, 07/01/13 400 448
Phoenix Civic Improvements Water System,
Pre-refunded 07/01/04 @ 102
5.500%, 07/01/24 (a) 100 103
Puerto Rico Electric Power Authority, Series X,
Callable 07/01/05 @ 100
5.500%, 07/01/25 100 104
Tucson Water, Series D,
Callable 07/01/09 @ 100 (FGIC)
5.400%, 07/01/17 250 278
Tucson Water, Series 1994-A (MBIA)
6.250%, 07/01/16 170 210
Yavapai Industrial Development Authority,
Waste Management Project, Series A-2,
Mandatory Put 03/01/08 @ 100 (AMT)
4.450%, 03/01/28 300 315
---------------
1,747
---------------
TOTAL REVENUE BONDS 16,114
---------------
GENERAL OBLIGATIONS - 19.5%
Chandler Public & Recreational Improvements,
Callable 07/01/10 @ 101
5.800%, 07/01/18 250 287
Maricopa County School District #11, Peoria Unit,
Pre-refunded 07/01/09 @ 101 (FGIC)
5.500%, 07/01/14 (a) 100 115
5.500%, 07/01/15 (a) 120 138
Mesa, Callable 07/01/09 @ 100 (FGIC)
5.000%, 07/01/18 250 280
Peoria, Callable 04/01/09 @ 100 (FGIC)
5.400%, 04/01/15 100 111
5.000%, 04/01/18 575 618
5.000%, 04/01/19 125 134
Phoenix, Callable 07/01/07 @ 102
5.250%, 07/01/20 250 271
Phoenix, Callable 07/01/10 @ 100
5.250%, 07/01/19 350 381
5.375%, 07/01/25 750 806
Pima County Unified School District #6,
Marana, Series A,
Callable 07/01/10 @ 101 (FGIC)
5.250%, 07/01/15 250 286
Pima County Unified School District #12,
Sunnyside, Callable 07/01/09 @ 100 (FGIC)
5.300%, 07/01/13 150 168
Scottsdale, Pre-refunded 07/01/09 @ 100
5.500%, 07/01/22 (a) 250 286
Tucson
5.500%, 07/01/18 250 291
---------------
TOTAL GENERAL OBLIGATIONS 4,172
---------------
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
CERTIFICATES OF PARTICIPATION - 2.6%
El Mirage, Callable 08/01/04 @ 100
6.900%, 08/01/16 $ 180 $ 181
Tucson, Callable 07/01/08 @ 100 (MBIA)
5.500%, 07/01/15 200 222
University of Arizona Parking & Student
Housing Authority,
Callable 06/01/09 @ 100 (AMBAC)
5.750%, 06/01/19 140 158
---------------
TOTAL CERTIFICATES OF PARTICIPATION 561
---------------
TOTAL MUNICIPAL BONDS
(Cost $18,799) 20,847
---------------
MONEY MARKET FUND - 1.6%
Federated Arizona Municipal
Money Market Fund 338,197 338
---------------
TOTAL MONEY MARKET FUND
(Cost $338) 338
---------------
TOTAL INVESTMENTS - 98.8%
(Cost $19,137) 21,185
---------------
OTHER ASSETS AND LIABILITIES, NET - 1.2% 261
---------------
TOTAL NET ASSETS - 100.0% $ 21,446
---------------
</Table>
(a) Pre-refunded issues are usually backed by U.S. Government obligations. These
bonds mature at the call date and price indicated.
ACA - American Capital Access
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market
value of securities subject to the AMT was $1,464,270, which represents
6.8% of net assets.
FGIC - Financial Guaranty Insurance Corporation
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
RAAI - Radian Asset Assurance Inc.
3
<Page>
SCHEDULE OF INVESTMENTS March 31, 2004 (unaudited)
CALIFORNIA INTERMEDIATE TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 94.7%
REVENUE BONDS - 63.5%
EDUCATION - 9.1%
ABAG Financial Authority, Schools of the
Sacred Heart, Series A
5.800%, 06/01/08 $ 200 $ 222
Aztec Shops, California State Auxiliary
Organization, San Diego State University,
Callable 09/01/10 @ 101
5.400%, 09/01/11 1,035 1,136
California State Higher Educational Facilities
Authority, Fresno Pacific University, Series A
5.650%, 03/01/07 380 414
5.750%, 03/01/08 400 443
California State Higher Educational Facilities
Authority, Occidental College Project,
Callable 10/01/07 @ 102 (MBIA)
5.300%, 10/01/10 500 560
California State Higher Educational Facilities
Authority, University of La Verne & Western
University of Health Sciences, Series B
6.000%, 06/01/10 495 560
California State Higher Educational Facilities
Authority, University of Redlands, Series A
5.550%, 06/01/09 225 255
California State Higher Educational Facilities
Authority, University of Redlands, Series A,
Callable 06/01/10 @ 101
5.700%, 06/01/11 250 284
5.750%, 06/01/12 260 293
California Statewide Communities Development
Authority, Viewpoint Schools (ACA)
4.125%, 10/01/14 405 401
---------------
4,568
---------------
HEALTHCARE - 22.5%
ABAG Financial Authority, O'Connor Woods (ACA)
5.250%, 11/01/05 500 530
ABAG Financial Authority, Odd Fellows Home
of California (CMI)
4.950%, 08/15/07 500 539
ABAG Financial Authority, San Diego Hospital
Association, Series C
4.000%, 03/01/08 300 310
California Health Facilities Financing
Authority, Casa Colina,
Callable 04/01/12 @ 100
5.500%, 04/01/13 300 323
California Health Facilities Financing
Authority, Marshall Medical Center, Series A,
Callable 11/01/14 @ 100 (CMI)
4.750%, 11/01/19 1,200 1,204
California Health Facilities Financing
Authority, Paradise Valley Estates (CMI)
4.125%, 01/01/10 500 520
4.375%, 01/01/12 540 560
California Health Facilities Financing
Authority, Valleycare Medical Center, Series A,
Callable 05/01/12 @ 100 (CMI)
4.625%, 05/01/13 300 313
4.800%, 05/01/14 715 747
California State Communities Development
Authority, Hospital of Monterey Peninsula,
Callable 08/15/08 @ 101 (MBIA)
5.250%, 08/15/09 500 559
California State Health Facilities
Authority, Casa de las Campanas, Series A,
Callable 08/01/08 @ 100 (CMI)
5.375%, 08/01/09 $ 250 $ 273
California Statewide Communities Development
Authority, Elder Care Alliance, Series A
7.250%, 11/15/11 500 501
California Statewide Communities Development
Authority, Health Facilities, Series A, Escrowed
to Maturity (CMI)
5.200%, 08/01/04 (a) 200 202
California Statewide Communities Development
Authority, Kaiser Permanente, Series D,
Mandatory Put 03/01/07 @ 100
4.350%, 11/01/36 500 526
California Statewide Communities Development
Authority, Kaiser Permanente, Series I,
Mandatory Put 05/01/11 @ 100
3.450%, 04/01/35 (b) 500 500
California Statewide Communities Development
Authority, Los Angeles Jewish Home (CMI)
5.000%, 11/15/12 500 540
California Statewide Communities Development
Authority, Los Angeles Orthopedic Hospital
Foundation, Callable 06/01/07 @ 101 (AMBAC)
5.000%, 06/01/12 150 162
John C. Fremont Hospital District,
Health Facility (CMI)
6.000%, 06/01/04 65 65
La Verne, Brethren Hillcrest Homes, Series B,
Callable 02/15/13 @ 101 (ACA)
5.600%, 02/15/33 500 524
Marysville Hospital, Fremont Rideout
Health Project, Series A,
Callable 07/01/08 @ 103 (AMBAC)
5.000%, 01/01/10 500 552
Puerto Rico Industrial, Tourist, Educational,
Medical & Environmental Control Facilities,
Hospital de la Concepcion, Series A
5.500%, 11/15/09 650 734
Rancho Mirage Joint Powers Finance
Authority, Eisenhower Medical Center,
Series A, Callable 07/01/07 @ 102 (MBIA)
5.125%, 07/01/08 500 558
Riverside County Public Financing
Authority, Air Force Village West
5.125%, 05/15/05 525 541
---------------
11,283
---------------
HOUSING - 4.1%
ABAG Financial
Authority, Archstone Redwood
Housing Project, Series A
5.300%, 10/01/08 500 533
California Rural Home Mortgage Finance
Authority, Single Family Mortgage,
Series D (AMT) (FNMA) (GNMA)
5.250%, 06/01/10 90 90
California State Housing Finance Agency,
Series E (MBIA)
5.850%, 08/01/04 150 152
California Statewide Communities Development
Authority, Equity Residential, Series B,
Mandatory Put 06/15/09 @ 100
5.200%, 12/01/29 500 546
</Table>
4
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
California Statewide Communities Development
Authority, Multifamily Housing, Citrus Gardens
Apartments, Callable 07/01/12 @ 102
5.375%, 07/01/26 $ 700 $ 720
---------------
2,041
---------------
LEASE REVENUE - 2.7%
California State Public Works Board,
California Community Colleges, Series A, (MLO)
Callable 12/01/09 @ 101
4.875%, 12/01/18 200 205
California State Public Works Board,
Department of Corrections,
Series A (AMBAC) (MLO)
6.000%, 01/01/06 545 588
California State Public Works Board,
Department of Health Services,
Callable 11/01/09 @ 101 (MBIA) (MLO)
5.200%, 11/01/12 500 550
---------------
1,343
---------------
MISCELLANEOUS - 0.6%
Children's Trust Fund,
Puerto Rico Tobacco Settlement Issue,
Escrowed to Maturity
5.000%, 07/01/08 (a) 250 279
---------------
RECREATIONAL FACILITY AUTHORITY - 1.0%
California State University Fresno Association,
Auxiliary Organization Event Center,
Callable 07/01/12 @ 101
6.000%, 07/01/22 500 525
---------------
SANITATION DISTRICT - 1.1%
Los Angeles Municipal Improvement Corporation,
Sanitation Equipment, Series A (FSA) (MLO)
6.000%, 02/01/07 500 559
---------------
SCHOOL DISTRICT - 3.7%
Golden West Schools Financing
Authority, Series A (MBIA)
5.700%, 02/01/13 720 848
5.750%, 02/01/14 520 617
Golden West Schools Financing
Authority, Series A, Zero Coupon Bond (MBIA)
5.000%, 02/01/12 (c) 535 396
---------------
1,861
---------------
TAX REVENUE - 3.7%
Long Beach Community Facilities District #5,
Towne Center Special Tax,
Callable 10/01/06 @ 102
6.100%, 10/01/12 165 175
Los Angeles County Public Works Financing
Authority, Regional Park & Open Space District,
Series A, Callable 10/01/07 @ 101
5.000%, 10/01/19 500 519
Los Angeles County Transportation Commission,
Series B (FGIC)
6.000%, 07/01/04 250 253
Montclair Redevelopment Agency,
Redevelopment Project No. IV (RAAI)
3.750%, 10/01/11 135 136
Montclair Redevelopment Agency,
Redevelopment Project No. IV,
Callable 10/01/13 @ 100 (RAAI)
5.000%, 10/01/31 250 247
West Covina Redevelopment Agency,
Fashion Plaza Project
5.125%, 09/01/05 $ 300 $ 315
William S. Hart Joint School Financing
Authority, Special Tax,
Callable 09/01/05 @ 102 (FSA)
6.100%, 09/01/06 200 217
---------------
1,862
---------------
TRANSPORTATION - 4.5%
San Francisco Bay Area Transportation
Financing Authority, Bridge Toll (ACA)
5.500%, 08/01/05 690 726
San Francisco City & County International
Airports Commission, Second Series,
Callable 05/01/04 @ 101 (AMT) (FGIC)
5.400%, 05/01/06 500 507
San Francisco City & County International
Airports Commission, Second Series,
Issue 25 (AMT) (FSA)
5.500%, 05/01/08 500 556
San Francisco City & County International
Airports Commission, SFO Fuel,
Series A (AMT) (FSA)
5.250%, 01/01/07 450 487
---------------
2,276
---------------
UTILITIES - 10.5%
California State Department of Water,
Central Valley Project, Series O,
Callable 12/01/05 @ 101
5.000%, 12/01/12 500 536
California State Department of Water,
Central Valley Project, Series P,
Pre-refunded 06/01/06 @ 101
5.300%, 12/01/07 (d) 750 818
California State Department of Water, Series A,
Callable 05/01/12 @ 101
5.875%, 05/01/16 500 567
Chino Basin Regional Financing Authority,
Inland Empire Utility Agency Sewer Project,
Callable 11/01/09 @ 101 (MBIA)
5.200%, 11/01/11 405 452
Imperial, Wastewater Treatment Facility,
Callable 10/15/11 @ 102 (FGIC)
5.000%, 10/15/20 1,000 1,069
Metropolitan Water District of Southern California,
Series B, Callable 07/01/06 @ 102 (MBIA)
4.875%, 07/01/10 325 352
5.000%, 07/01/14 500 544
Richmond Wastewater Systems,
Callable 08/01/09 @ 102 (FGIC)
5.200%, 08/01/11 500 557
Whittier Utility Authority,
Callable 06/01/13 @ 100 (MBIA)
4.400%, 06/01/17 305 316
4.500%, 06/01/18 65 67
---------------
5,278
---------------
TOTAL REVENUE BONDS 31,875
---------------
GENERAL OBLIGATIONS - 24.3%
Alisal Unified School District, Series C,
Zero Coupon Bond (FGIC)
5.050%, 08/01/08 (c) 860 771
California State, Callable 08/01/13 @ 100
5.000%, 02/01/17 1,000 1,047
</Table>
5
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Foothill-De Anza Community College District,
Callable 08/01/10 @ 101
6.000%, 08/01/11 $ 300 $ 353
Fresno Unified School District, Series A (MBIA)
6.050%, 08/01/11 500 600
Jefferson Union High School District,
San Mateo County, Series A (MBIA)
6.250%, 02/01/14 300 369
Lemon Grove School District,
Election of 1998-B, Zero Coupon Bond (FSA)
3.329%, 11/01/20 (c) 375 170
Los Angeles, Series A,
Pre-refunded 09/01/04 @ 102 (MBIA)
5.800%, 09/01/07 (d) 250 260
Montebello Unified School District,
Zero Coupon Bond (MBIA)
10.398%, 08/01/21 (c) 700 299
Newhall School District, Series A,
Callable 05/01/10 @ 101 (FSA)
5.500%, 05/01/11 540 635
Oxnard School District (MBIA)
5.000%, 08/01/05 600 631
Pomona School District, Series A (MBIA)
5.450%, 02/01/06 250 269
5.500%, 08/01/06 250 274
Pomona School District, Series A,
Callable 08/01/11 @ 103 (MBIA)
6.150%, 08/01/15 500 596
Puerto Rico Commonwealth (MBIA)
6.250%, 07/01/08 500 583
Puerto Rico Commonwealth, Series B (FSA)
6.500%, 07/01/15 1,000 1,265
Puerto Rico Commonwealth, Series C,
Mandatory Put 07/01/08 @ 100
5.000%, 07/01/18 (b) 500 548
Roseville Joint Union High School District,
Callable 08/01/11 @ 101
5.200%, 08/01/20 600 648
Rowland Unified School District, Series A,
Callable 09/01/10 @ 101 (FSA)
5.250%, 09/01/25 250 265
San Juan Unified School District,
Zero Coupon Bond (FSA)
5.420%, 08/01/16 (c) 390 226
San Mateo County Community College District,
Series A, Zero Coupon Bond (FGIC)
5.300%, 09/01/17 (c) 760 413
San Mateo Unified High School District,
Series B, Zero Coupon Bond (FGIC)
5.150%, 09/01/17 (c) 1,000 544
Walnut Valley Unified School District,
Series A (MBIA)
6.850%, 08/01/07 250 291
Walnut Valley Unified School District, Series A,
Callable 08/01/10 @ 102 (FSA)
5.000%, 08/01/12 255 283
West Covina Unified School District,
Series A (MBIA)
5.350%, 02/01/20 770 878
---------------
TOTAL GENERAL OBLIGATIONS 12,218
---------------
CERTIFICATES OF PARTICIPATION - 6.9%
Bakersfield Convention Center Expansion Project,
Callable 04/01/07 @ 101 (MBIA) (MLO)
5.500%, 04/01/10 250 276
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
Escondido Civic Center Project,
Escrowed to Maturity (AMBAC) (MLO)
5.800%, 09/01/04 (a) $ 100 $ 102
Grossmont Unified High School District,
Callable 09/01/08 @ 102 (FSA) (MLO)
5.400%, 09/01/13 300 339
Kern County Board of Education, Series A,
Callable 05/01/08 @ 102 (MBIA) (MLO)
5.200%, 05/01/12 905 1,003
Los Angeles Community College,
Energy Retrofit Project (AMBAC) (MLO)
5.000%, 08/15/09 300 341
Los Angeles County Schools, Regionalized
Business Services Financing Project, Series A (MLO)
5.000%, 09/01/08 200 223
Los Angeles, Sonnenblick Del Rio,
West Los Angeles (AMBAC) (MLO)
5.375%, 11/01/10 500 575
Paradise Unified School District,
Measure M Project, Series A,
Callable 09/01/05 @ 102 (AMBAC) (MLO)
5.250%, 09/01/07 300 322
West Covina Civic Center Project,
Pre-refunded 09/01/05 @ 102 (FSA) (MLO)
5.250%, 09/01/07 (d) 250 269
---------------
TOTAL CERTIFICATES OF PARTICIPATION 3,450
---------------
TOTAL MUNICIPAL BONDS
(Cost $43,975) 47,543
---------------
MONEY MARKET FUNDS - 4.3%
Federated California Municipal Cash Trust 1,380,389 1,380
Provident California Money Fund 749,989 750
---------------
TOTAL MONEY MARKET FUNDS
(Cost $2,130) 2,130
---------------
TOTAL INVESTMENTS - 99.0%
(Cost $46,105) 49,673
---------------
OTHER ASSETS AND LIABILITIES, NET - 1.0% 527
---------------
TOTAL NET ASSETS - 100.0% $ 50,200
---------------
</Table>
(a) Escrowed to Maturity issues are usually backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(b) Variable Rate Security - The rate shown is the rate in effect as of March
31, 2004.
(c) The rate shown is the effective yield at the time of purchase.
(d) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
ABAG - Association of Bay Area Governments
ACA - American Capital Access
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market value
of securities subject to the AMT was $1,639,933, which represents 3.3% of
net assets.
CMI - California Mortgage Insurance Program
FGIC - Financial Guaranty Insurance Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
RAAI - Radian Asset Assurance Inc.
The accompanying notes are an integral part of the financial statements.
6
<Page>
CALIFORNIA TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 95.9%
REVENUE BONDS - 63.7%
BUILDING - 4.3%
Sacramento City Financing Authority,
Callable 06/01/10 @ 101 (MLO)
5.400%, 06/01/18 $ 455 $ 501
5.500%, 06/01/23 645 703
---------------
1,204
---------------
EDUCATION - 14.6%
ABAG Financial Authority,
Schools of the Sacred Heart, Series A
5.900%, 06/01/10 200 225
Aztec Shops, California State Auxiliary
Organization, San Diego State University
5.200%, 09/01/08 455 498
California State Higher Educational Facilities
Authority, Fresno Pacific University, Series A
5.550%, 03/01/06 250 266
California State Higher Educational Facilities
Authority, Fresno Pacific University, Series A,
Callable 03/01/10 @ 101
6.750%, 03/01/19 380 430
California State Higher Educational Facilities
Authority, University of La Verne & Western
University of Health Sciences, Series B,
Callable 06/01/10 @ 101
6.625%, 06/01/20 215 238
California State Higher Educational Facilities
Authority, University of Redlands, Series A,
Callable 06/01/10 @ 101
5.950%, 06/01/15 310 346
California State University Foundation,
Monterey Bay, Callable 06/01/11 @ 100 (MBIA)
5.300%, 06/01/22 500 537
California State University Fresno Association,
Auxiliary Organization Event Center,
Callable 07/01/12 @ 101
6.000%, 07/01/22 500 525
University of California, Series K,
Callable 09/01/08 @ 101
5.000%, 09/01/20 1,000 1,054
---------------
4,119
---------------
HEALTHCARE - 8.3%
ABAG Finance Authority, Lincoln Glen Manor
Senior Citizens, Callable 02/15/08 @ 101 (CMI)
6.100%, 02/15/25 250 267
ABAG Financial Authority,
San Diego Hospital Association, Series C
4.000%, 03/01/08 100 103
California Health Facilities Financing Authority,
Casa Colina, Callable 04/01/12 @ 100
5.500%, 04/01/13 50 54
California Health Facilities Financing Authority,
Marshall Medical Center, Series A,
Callable 11/01/14 @ 100
4.750%, 11/01/19 560 562
California Statewide Communities Development
Authority, Elder Care Alliance, Series A
7.250%, 11/15/11 250 250
California Statewide Communities Development
Authority, Kaiser Permanente, Series D,
Mandatory Put 03/01/07 @ 100
4.350%, 11/01/36 250 263
California Statewide Communities Development
Authority, Los Angeles Orthopedic Hospital
Foundation, Callable 06/01/07 @ 101 (AMBAC)
5.000%, 06/01/12 $ 350 $ 378
Puerto Rico Industrial Tourist, Educational,
Medical & Environmental Control Facilities,
Hospital de La Concepcion, Series A
5.500%, 11/15/08 400 449
---------------
2,326
---------------
HOUSING - 4.7%
California State Department of Veterans Affairs,
Series C, Callable 01/09/11 @ 101 (AMT)
5.500%, 12/01/19 700 739
California State Housing Finance Agency,
Single Family Mortgage,
Series B (AMT) (FNMA) (GNMA)
5.650%, 06/01/10 55 57
California Statewide Communities Development
Authority, Archstone Seascape,
Mandatory Put 06/01/08 @ 100
5.250%, 06/01/29 500 530
---------------
1,326
---------------
SCHOOL DISTRICT - 3.9%
Golden West Schools Financing Authority,
Series A (MBIA)
5.750%, 02/01/14 250 297
5.800%, 08/01/22 320 382
5.800%, 08/01/23 345 411
---------------
1,090
---------------
TAX REVENUE - 9.1%
Grass Valley Community Redevelopment Agency,
Tax Allocation, Callable 12/01/08 @ 102
6.400%, 12/01/34 400 438
Long Beach Community Facilities District #5,
Towne Center Special Tax,
Callable 10/01/06 @ 102
6.100%, 10/01/12 250 265
Los Angeles, Callable 03/01/10 @ 101
5.625%, 03/01/19 200 225
Los Angeles County Community Facilities
District #3, Series A, Special Tax,
Callable 09/01/10 @ 100 (AMBAC)
5.250%, 09/01/18 715 782
Los Angeles County Public Works Financing
Authority, Regional Park & Open Space District,
Series A, Callable 10/01/07 @ 101
5.000%, 10/01/19 500 519
Puerto Rico Commonwealth Highway &
Transportation Authority, Series X (MBIA)
5.500%, 07/01/15 100 118
San Francisco Bay Area Transportation Authority,
Callable 07/01/09 @ 101 (FGIC)
5.500%, 07/01/26 200 217
---------------
2,564
---------------
TRANSPORTATION - 3.0%
Long Beach Harbor,
Callable 05/15/05 @ 102 (AMT) (MBIA)
5.375%, 05/15/20 250 263
Los Angeles Harbor, Series B,
Callable 11/01/06 @ 101 (AMT)
5.250%, 11/01/08 300 323
</Table>
7
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
San Francisco Airport Commission,
SFO Fuel Company,
Callable 01/01/08 @ 102 (AMT) (FSA)
5.625%, 01/01/12 $ 250 $ 278
---------------
864
---------------
UTILITIES - 15.8%
California State Department of Water, Series W (FSA)
5.500%, 12/01/14 450 528
California Statewide Communities Development
Authority, Waste Management Project,
Mandatory Put 04/01/04 @ 100 (AMT)
4.950%, 04/01/11 250 250
Compton Sewer Authority,
Callable 09/01/08 @ 102 (MBIA)
5.375%, 09/01/23 1,150 1,244
Contra Costa Water Authority, Series A,
Callable 10/01/12 @ 100 (FGIC)
5.000%, 10/01/20 340 363
Los Angeles Power System, Series A,
Subseries A-1 (MBIA)
5.000%, 07/01/12 1,225 1,381
Los Angeles Water & Power Development
Authority, Pre-refunded 02/15/05 @ 101
6.100%, 02/15/17 (a) 115 121
6.100%, 02/15/17 (a) 35 37
South Bayside Waste Management Authority,
Callable 03/01/09 @ 102 (AMBAC)
5.750%, 03/01/20 150 170
South Placer Waste Water Authority, Series A,
Pre-refunded 11/01/10 @ 101 (FGIC)
5.500%, 11/01/15 (a) 300 355
---------------
4,449
---------------
TOTAL REVENUE BONDS 17,942
---------------
GENERAL OBLIGATIONS - 24.5%
Acalanes Unified High School District,
Zero Coupon Bond,
Pre-refunded 08/01/10 @ 70.92 (FGIC)
5.560%, 08/01/16 (a) (b) 700 409
California State, Callable 10/01/10 @ 100
5.250%, 10/01/19 600 630
California State, Callable 02/01/13 @ 100
5.000%, 02/01/24 700 705
Glendora Unified School District, Series A,
Callable 09/01/10 @ 101 (FSA)
5.350%, 09/01/20 340 373
Jefferson Union High School District,
San Mateo County, Series A (MBIA)
6.250%, 08/01/20 460 571
Pleasant Valley School District, Ventura County,
Series A (MBIA)
5.850%, 02/01/19 250 300
Pomona Unified School District, Series A (MBIA)
5.950%, 02/01/17 855 1,032
Sacramento Unified School District, Series A,
Pre-refunded 07/01/09 @ 102
5.750%, 07/01/17 (a) 400 476
San Francisco City & County, Series 1,
Callable 06/15/07 @ 102 (FGIC)
5.500%, 06/15/09 300 337
Vallejo City Unified School District, Series A (MBIA)
5.900%, 08/01/21 350 421
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
Ventura County Community College District,
Series A, Callable 08/01/12 @ 101 (MBIA)
5.000%, 08/01/18 $ 910 $ 987
Wiseburn School District, Series A,
Callable 08/01/10 @ 100 (FGIC)
5.250%, 08/01/22 600 644
---------------
TOTAL GENERAL OBLIGATIONS 6,885
---------------
CERTIFICATES OF PARTICIPATION - 7.7%
Bakersfield Convention Center Expansion Project,
Callable 04/01/07 @ 101 (MBIA)
5.875%, 04/01/22 250 279
Escondido, Series A,
Callable 09/01/10 @ 101 (FGIC)
5.625%, 09/01/20 300 336
Lathrop, Series A,
Callable 06/01/10 @ 101 (MBIA)
5.875%, 06/01/30 350 401
Los Angeles, Sonnenblick del Rio Senior Lien,
Callable 11/01/10 @ 101 (AMBAC)
6.000%, 11/01/19 330 387
Orange County, Series A,
Callable 07/01/06 @ 102 (MBIA)
5.875%, 07/01/19 150 166
Ridgecrest Civic Center Project,
Callable 03/01/09 @ 101
6.250%, 03/01/21 250 271
West Kern County Water District,
Callable 06/01/10 @ 101
5.200%, 06/01/14 320 340
---------------
TOTAL CERTIFICATES OF PARTICIPATION 2,180
---------------
TOTAL MUNICIPAL BONDS
(Cost $24,816) 27,007
---------------
MONEY MARKET FUNDS - 3.0%
Federated California Municipal Cash Trust 500,040 500
Provident California Money Fund 342,400 342
---------------
TOTAL MONEY MARKET FUNDS
(Cost $842) 842
---------------
TOTAL INVESTMENTS - 98.9%
(Cost $25,658) 27,849
---------------
OTHER ASSETS AND LIABILITIES, NET - 1.1% 310
---------------
TOTAL NET ASSETS - 100.0% $ 28,159
---------------
</Table>
(a) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) The rate shown is the effective yield at the time of purchase.
ABAG - Association of Bay Area Governments
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market value
of securities subject to the AMT was $1,909,718, which represents 6.8% of
net assets.
CMI - California Mortgage Insurance Program
FGIC - Financial Guaranty Insurance Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
The accompanying notes are an integral part of the financial statements.
8
<Page>
COLORADO INTERMEDIATE TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 99.0%
REVENUE BONDS - 67.4%
EDUCATION - 6.6%
Colorado State Educational & Cultural Facilities
Authority, Bromley East Charter School Project
6.250%, 09/15/11 $ 375 $ 392
Colorado State Educational & Cultural Facilities
Authority, Classical Academy Charter School
Project, Escrowed to Maturity
6.375%, 12/01/11 (a) 885 1,018
Colorado State Educational & Cultural Facilities
Authority, Core Knowledge Charter School,
Callable 11/01/09 @ 100
6.850%, 11/01/16 440 482
Colorado State Educational & Cultural Facilities
Authority, University of Denver (MBIA)
4.250%, 03/01/13 2,000 2,138
---------------
4,030
---------------
HEALTHCARE - 17.4%
Colorado State Health Facilities Authority,
Boulder Hospital (MBIA)
4.875%, 10/01/09 500 556
5.000%, 10/01/10 500 560
Colorado State Health Facilities Authority,
Catholic Health Initiatives, Series A
5.000%, 03/01/12 500 547
Colorado State Health Facilities Authority,
The Devereux Foundation,
Callable 11/01/12 @ 100 (RAAI)
4.200%, 11/01/13 80 82
Colorado State Health Facilities Authority,
Evangelical Lutheran Health Facilities,
Callable 12/01/10 @ 102
6.900%, 12/01/25 350 389
Colorado State Health Facilities Authority,
National Jewish Medical & Research
Center Project, Callable 01/01/08 @ 100
5.375%, 01/01/16 700 715
Colorado State Health Facilities Authority,
North Colorado Medical Center Project (FSA)
5.000%, 05/15/09 1,000 1,114
Colorado State Health Facilities Authority,
Parkview Medical Center
5.500%, 09/01/07 250 271
5.750%, 09/01/08 250 276
5.500%, 09/01/09 500 550
Colorado State Health Facilities Authority,
Poudre Valley Healthcare,
Callable 12/01/09 @ 101 (FSA)
5.750%, 12/01/10 1,000 1,152
Colorado State Health Facilities Authority,
Steamboat Springs Health Project
4.600%, 09/15/04 405 408
Colorado State Health Facilities Authority,
Steamboat Springs Health Project,
Callable 09/15/08 @ 101
5.300%, 09/15/09 250 259
Colorado State Health Facilities Authority,
Vail Medical Center, Callable 01/15/12 @ 100
5.750%, 01/15/22 800 835
Delta County Memorial Hospital District,
Callable 09/01/13 @ 100
5.350%, 09/01/17 500 512
La Junta Hospital, Arkansas Valley
Regional Medical Center Project
5.200%, 04/01/06 $ 300 $ 312
5.300%, 04/01/07 320 336
5.400%, 04/01/08 335 354
5.500%, 04/01/09 355 376
Montrose Memorial Hospital
5.300%, 12/01/13 260 270
Montrose Memorial Hospital,
Callable 12/01/13 @ 102
5.450%, 12/01/14 390 405
University of Colorado Hospital Authority,
Callable 11/15/11 @ 100
5.000%, 11/15/14 300 317
---------------
10,596
---------------
HOUSING - 0.1%
Colorado State Housing Finance Authority,
Single Family Mortgages, Series B-1,
Callable 06/01/05 @ 103 (AMT)
5.875%, 06/01/11 75 76
---------------
MISCELLANEOUS - 8.4%
Children's Trust Fund, Puerto Rico Tobacco
Settlement Issue, Escrowed to Maturity
5.750%, 07/01/09 (a) 2,000 2,331
Colorado State Educational & Cultural Facilities
Authority, Colorado Public Radio
4.800%, 07/01/09 250 269
4.900%, 07/01/10 265 285
Colorado State Educational & Cultural Facilities
Authority, Nashville Public Radio
5.500%, 04/01/12 430 471
Colorado State Educational & Cultural Facilities
Authority, National Conference of State
Legislatures, Callable 06/01/11 @ 100
5.250%, 06/01/13 700 765
Denver City & County, Helen G. Bonfils Foundation
Project, Series B, Callable 12/01/07 @ 100
5.125%, 12/01/17 900 973
---------------
5,094
---------------
POLLUTION CONTROL - 1.7%
Moffat County, Pollution Control,
Tri-State Generation Project (AMBAC)
5.500%, 11/01/05 1,000 1,067
---------------
RECREATIONAL FACILITY AUTHORITY - 2.2%
Hyland Hills Metropolitan Park & Recreational
District, Series A, Callable 12/15/07 @ 101
6.100%, 12/15/09 210 229
Jefferson County, Metropolitan YMCA Project,
Series A, Pre-refunded 08/01/05 @ 100
7.500%, 08/01/08 (b) 1,000 1,081
---------------
1,310
---------------
TAX REVENUE - 8.4%
Boulder County Open Space Capital Improvement
Trust Fund, Callable 07/15/10 @ 100
4.750%, 07/15/12 1,000 1,084
Boulder County Sales & Use Tax (FGIC)
5.750%, 12/15/05 870 936
Boulder County Sales & Use Tax,
Escrowed to Maturity (FGIC)
5.750%, 12/15/05 (a) 130 140
</Table>
9
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Douglas County Sales & Use Tax (FSA)
6.000%, 10/15/09 $ 200 $ 235
Larimer County Sales & Use Tax (AMBAC)
5.000%, 12/15/10 460 521
Longmont Sales & Use Tax,
Callable 11/15/10 @ 100
5.500%, 11/15/15 500 568
Longmont Sales & Use Tax,
Callable 11/15/10 @ 101 (AMBAC)
4.875%, 11/15/18 1,000 1,053
Westminster Sales & Use Tax, Series A,
Callable 12/01/07 @ 102 (FGIC)
5.250%, 12/01/11 500 562
---------------
5,099
---------------
TRANSPORTATION - 10.4%
Colorado Department of Transportation (AMBAC)
6.000%, 06/15/10 1,000 1,182
The E-470 Public Highway Authority, Series B,
Zero Coupon Bond (MBIA)
5.520%, 09/01/17 (c) 1,575 856
6.400%, 09/01/19 (c) 960 460
5.650%, 09/01/20 (c) 500 225
5.396%, 09/01/22 (c) 1,620 643
Northwest Parkway Public Highway Authority,
Convertible, Zero Coupon Bond (AMBAC)
5.000%, 06/15/14 (c) 750 592
5.250%, 06/15/15 (c) 2,000 1,578
5.350%, 06/15/16 (c) 1,000 789
---------------
6,325
---------------
UTILITIES - 12.2%
Arapahoe County Water & Wastewater Authority
5.550%, 12/01/06 140 153
5.650%, 12/01/07 150 169
5.750%, 12/01/08 160 183
Arapahoe County Water & Wastewater Authority,
Callable 12/01/09 @ 100
6.000%, 12/01/11 185 216
Boulder Water & Sewer
5.750%, 12/01/10 1,545 1,814
Broomfield Water Activity Enterprise,
Callable 12/01/10 @ 101 (MBIA)
5.500%, 12/01/17 500 564
Colorado State Water Resource & Power
Development Authority, Small Water Resources,
Series A, Callable 11/01/10 @ 100 (FGIC)
5.700%, 11/01/15 100 115
Denver City & County Wastewater,
Callable 11/01/12 @ 100 (FGIC)
5.250%, 11/01/17 1,260 1,396
Platte River Power Authority, Series DD,
Callable 06/01/07 @ 102 (MBIA)
5.375%, 06/01/17 875 965
Ute Water Conservancy District (MBIA)
6.000%, 06/15/09 680 795
Westminster Water & Wastewater Utility Enterprise,
Pre-refunded 12/01/04 @ 100 (AMBAC)
5.800%, 12/01/05 (b) 1,000 1,030
---------------
7,400
---------------
TOTAL REVENUE BONDS 40,997
---------------
GENERAL OBLIGATIONS - 25.1%
Arapahoe County School District #5,
Cherry Creek, Callable 12/15/09 @ 100 (STAID)
5.500%, 12/15/11 $ 1,000 $ 1,142
Boulder, Larimer & Weld Counties,
School District #R-2, Thompson, Series A,
Callable 12/15/04 @ 100 (STAID)
5.900%, 12/15/06 1,000 1,031
Boulder, Larimer & Weld Counties,
St. Vrain Valley School District,
Callable 12/15/13 @ 100 (MBIA) (STAID)
5.250%, 12/15/14 1,000 1,140
Denver City & County School District #1,
Callable 12/01/13 @ 100 (FSA) (STAID)
4.000%, 12/01/14 500 517
Douglas & Elbert Counties,
School District #1, Series A,
Pre-refunded 12/15/04 @ 101 (MBIA) (STAID)
6.400%, 12/15/11 (b) 1,000 1,048
Eagle, Garfield & Routt Counties,
School District #50-J,
Pre-refunded 12/01/04 @ 102 (FGIC) (STAID)
6.125%, 12/01/09 (b) 1,040 1,096
El Paso County School District #20,
Series A (STAID)
6.100%, 12/15/05 500 541
Elbert County School District #C-1, Elizabeth
5.150%, 12/01/08 500 564
Garfield County School District #RE-2,
Callable 12/01/12 @ 100 (FSA) (STAID)
5.250%, 12/01/19 1,530 1,672
Garfield, Pitkin & Eagle Counties School District #1,
Callable 06/15/04 @ 101 (MBIA) (STAID)
6.000%, 12/15/04 510 520
Jefferson County
School District #R-001 (MBIA) (STAID)
6.250%, 12/15/09 1,000 1,192
Larimer County School District #R-1,
Poudre (STAID)
5.400%, 12/15/04 750 773
Puerto Rico Commonwealth, Series C,
Mandatory Put 07/01/08 @ 100
5.000%, 07/01/18 (d) 1,000 1,095
Summit County School District #R-1,
Pre-refunded 12/01/04 @ 100
6.450%, 12/01/08 (b) 1,000 1,036
Summit County School District #RE-1 (FSA) (STAID)
5.000%, 12/01/14 500 564
Westglenn Metropolitan District,
Callable 12/01/09 @ 100
6.000%, 12/01/14 1,220 1,326
---------------
TOTAL GENERAL OBLIGATIONS 15,257
---------------
CERTIFICATES OF PARTICIPATION - 6.5%
Aurora, Callable 12/01/04 @ 101 (MLO)
6.000%, 12/01/06 1,000 1,034
Colorado Springs Public Facility Authority,
Old City Hall Project (FSA) (MLO)
5.000%, 12/01/10 200 226
Englewood Civic Center Project,
Callable 12/01/08 @ 100 (MBIA) (MLO)
4.900%, 06/01/13 585 638
Garfield County Building (AMBAC) (MLO)
5.750%, 12/01/09 400 466
</Table>
The accompanying notes are an integral part of the financial statements.
10
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
Garfield County Building Corporation,
Callable 12/01/09 @ 101 (AMBAC) (MLO)
5.300%, 12/01/11 $ 400 $ 451
Westminster Recreational Facilities,
Callable 09/01/09 @ 101 (MBIA) (MLO)
5.200%, 09/01/10 1,000 1,125
---------------
TOTAL CERTIFICATES OF PARTICIPATION 3,940
---------------
TOTAL MUNICIPAL BONDS
(Cost $55,189) 60,194
---------------
AFFILIATED MONEY MARKET FUND - 0.6%
First American Tax Free Obligations
Fund, Cl Z (e) 376,527 377
---------------
TOTAL AFFILIATED MONEY MARKET FUND
(Cost $377) 377
---------------
TOTAL INVESTMENTS - 99.6%
(Cost $55,566) 60,571
---------------
OTHER ASSETS AND LIABILITIES, NET - 0.4% 221
---------------
TOTAL NET ASSETS - 100.0% $ 60,792
---------------
</Table>
(a) Escrowed to Maturity issues are usually backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(b) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(c) The rate shown is the effective yield at the time of purchase.
(d) Variable Rate Security - The rate shown is the rate in effect as of March
31, 2004.
(e) Investment in affiliated security. This money market fund is advised by
U.S. Bancorp Asset Management, Inc., which also serves as advisor for this
Fund. See note 3 in Notes to Financial Statements.
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market
value of securities subject to the AMT was $75,815, which represents 0.1%
of net assets.
Cl - Class
FGIC - Financial Guaranty Insurance Corporation
FSA - Financial Security Assurance
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
RAAI - Radian Asset Assurance Inc.
STAID - State Aid Withholding
COLORADO TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.1%
REVENUE BONDS - 65.8%
EDUCATION - 7.6%
Colorado State Board of Agriculture,
Auxiliary Facility Systems,
Callable 03/01/07 @ 101 (AMBAC)
5.125%, 03/01/17 $ 200 $ 216
Colorado State Educational & Cultural Facilities
Authority, Ave Marie School Project,
Callable 12/01/10 @ 100 (RAAI)
6.000%, 12/01/16 200 231
Colorado State Educational & Cultural Facilities
Authority, Classical Academy Charter
School Project
6.375%, 12/01/11 615 707
Colorado State Educational & Cultural Facilities
Authority, Core Knowledge Charter School,
Callable 11/01/09 @ 100
6.850%, 11/01/16 100 110
Colorado State Educational & Cultural Facilities
Authority, University of Denver Project,
Callable 03/01/11 @ 100 (AMBAC)
5.350%, 03/01/20 500 547
University of Northern Colorado, Auxiliary Facility
System, Pre-refunded 06/01/07 @ 100 (MBIA)
5.600%, 06/01/24 (a) 165 184
---------------
1,995
---------------
HEALTHCARE - 17.9%
Boulder County Longmont United
Hospital Project (RAAI)
5.250%, 12/01/09 260 291
5.300%, 12/01/10 330 370
Colorado State Health Facilities Authority,
Covenant Retirement Communities, Series B,
Callable 12/01/12 @ 101
6.125%, 12/01/33 350 364
Colorado State Health Facilities Authority,
Evangelical Lutheran Health Facilities,
Callable 12/01/10 @ 102
6.900%, 12/01/25 150 167
Colorado State Health Facilities Authority,
National Jewish Medical & Research
Center Project, Callable 01/01/08 @ 100
5.375%, 01/01/16 300 307
Colorado State Health Facilities Authority,
Parkview Medical Center
5.500%, 09/01/07 500 541
5.600%, 09/01/11 300 331
Colorado State Health Facilities Authority,
Portercare Adventist Project,
Callable 11/15/11 @ 101
6.500%, 11/15/23 600 669
Colorado State Health Facilities Authority,
Steamboat Springs Health Project,
Callable 09/15/08 @ 101
5.300%, 09/15/09 250 259
Colorado State Health Facilities Authority,
Vail Valley Medical Center,
Callable 01/15/12 @ 100
5.800%, 01/15/27 500 518
Colorado State Health Facilities Authority,
Vail Valley Medical Center, Series A,
Callable 01/15/05 @ 101 (ACA)
6.500%, 01/15/13 250 258
</Table>
11
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Delta County Memorial Hospital District,
Callable 09/01/13 @ 100
5.350%, 09/01/17 $ 220 $ 225
La Junta, Arkansas Valley Regional Medical
Center Project, Callable 04/01/09 @ 101
6.100%, 04/01/24 100 102
Montrose Memorial Hospital,
Callable 12/01/13 @ 102
6.375%, 12/01/23 130 139
University of Colorado Hospital Authority
5.600%, 11/15/31 100 103
---------------
4,644
---------------
HOUSING - 2.4%
Colorado State Housing Finance Authority,
Multifamily Project, Class I, Series B-4,
Callable 10/01/10 @ 100
5.900%, 04/01/31 100 106
Colorado State Housing Finance Authority,
Series E-2, Callable 08/01/10 @ 105 (AMT)
7.000%, 02/01/30 100 102
Colorado State Housing Finance Authority,
Single Family Housing Program, Series A-2,
Callable 10/01/09 @ 105 (AMT)
7.450%, 10/01/16 30 31
Colorado State Housing Finance Authority,
Single Family Housing Program, Series B-2,
Callable 04/01/10 @ 105 (AMT)
7.100%, 04/01/17 65 66
El Paso County, Series D, Zero Coupon Bond,
Escrowed to Maturity (AMT) (FSA) (GNMA)
6.000%, 07/01/11 (b) (c) 400 306
---------------
611
---------------
MISCELLANEOUS - 4.4%
Colorado State Educational & Cultural Facilities
Authority, Nashville Public Radio,
Callable 04/01/12 @ 100
5.875%, 04/01/22 250 264
Colorado State Educational & Cultural Facilities
Authority, National Conference of State Legislatures,
Callable 06/01/11 @ 100
5.250%, 06/01/21 750 780
Denver City & County, Helen G. Bonfils Foundation
Project, Series B, Callable 12/01/07 @ 100
5.125%, 12/01/17 100 108
---------------
1,152
---------------
RECREATIONAL FACILITY AUTHORITY - 0.8%
Hyland Hills Metropolitan Park & Recreational
District, Series A, Callable 12/15/07 @ 101
6.100%, 12/15/09 200 218
---------------
TAX REVENUE - 7.6%
Boulder County Sales & Use Tax, Series A,
Callable 12/15/09 @ 101 (FGIC)
5.800%, 12/15/16 495 572
6.000%, 12/15/19 200 234
Douglas County Sales & Use Tax,
Callable 10/15/10 @ 100 (FSA)
5.625%, 10/15/20 200 225
Highlands Ranch Metropolitan District #2,
Callable 06/15/06 @ 101 (FSA)
5.000%, 06/15/16 200 214
Larimer County Sales & Use Tax,
Callable 12/15/10 @ 100 (AMBAC)
5.625%, 12/15/18 $ 100 $ 114
Metex Metropolitan District, Series A,
Callable 12/01/07 @ 101 (MBIA)
5.800%, 12/01/16 350 395
Mountain Village Metropolitan District,
San Miguel County,
Callable 12/01/07 @ 101 (MBIA)
5.200%, 12/01/17 200 219
---------------
1,973
---------------
TRANSPORTATION - 11.9%
Denver City & County Airport, Series E,
Callable 11/15/07 @ 101 (MBIA)
5.250%, 11/15/23 500 530
The E-470 Public State Authority, Series A,
Callable 09/01/07 @ 101 (MBIA)
5.000%, 09/01/16 750 813
Northwest Parkway Public Highway Authority,
Convertible, Zero Coupon Bond (AMBAC)
5.000%, 06/15/14 (b) 500 395
5.160%, 06/15/15 (b) 750 592
Northwest Parkway Public Highway Authority,
Convertible, Zero Coupon Bond,
Callable 06/15/16 @ 100 (AMBAC)
5.700%, 06/15/21 (b) 1,000 763
---------------
3,093
---------------
UTILITIES - 13.2%
Arapahoe County Water & Wastewater (MBIA)
5.000%, 12/01/26 250 261
Boulder Water & Sewer,
Callable 12/01/10 @ 100
5.700%, 12/01/19 300 342
Broomfield Water Activity Enterprise,
Callable 12/01/10 @ 101 (MBIA)
5.500%, 12/01/19 400 447
Colorado Water Power Development Authority
5.250%, 09/01/11 300 345
Denver City & County, Wastewater,
Callable 11/01/12 @ 100 (FGIC)
5.000%, 11/01/20 500 531
5.125%, 11/01/22 250 266
Fort Collins Wastewater Utility Enterprise,
Callable 12/01/10 @ 100 (FSA)
5.500%, 12/01/20 300 335
Platte River Power Authority, Series DD,
Callable 06/01/07 @ 102 (MBIA)
5.375%, 06/01/17 500 552
Pueblo County Board of Waterworks, Series A,
Callable 11/01/10 @ 100 (FSA)
5.875%, 11/01/18 305 354
---------------
3,433
---------------
TOTAL REVENUE BONDS 17,119
---------------
GENERAL OBLIGATIONS - 17.4%
Adams & Arapahoe Counties
Joint School District #28J, Aurora, Series C,
Pre-refunded 12/01/12 @ 102 (STAID)
5.350%, 12/01/15 (a) 300 321
</Table>
The accompanying notes are an integral part of the financial statements.
12
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Adams County School District #12,
Callable 12/15/07 @ 101 (FGIC)
5.400%, 12/15/16 $ 250 $ 283
Arapahoe County School District #5, Cherry Creek,
Callable 12/15/09 @ 100 (STAID)
5.500%, 12/15/19 550 615
Boulder Open Space Acquisition,
Callable 08/15/10 @ 100
5.450%, 08/15/16 350 394
Clear Creek School District #1,
Pre-refunded 12/01/10 @ 100 (FSA) (STAID)
5.750%, 12/01/17 (a) 200 235
Denver City & County School District #1,
Callable 12/01/13 @ 100 (FSA) (STAID)
4.750%, 12/01/21 250 258
Douglas County School District #RE-1,
Callable 12/15/12 @ 100 (FSA)
5.125%, 12/15/25 750 792
Eagle Bend Metropolitan District #2,
Callable 12/01/13 @ 100 (RAAI)
5.250%, 12/01/23 250 262
El Paso County School District #38,
Pre-refunded 12/01/10 @ 100 (STAID)
6.375%, 12/01/18 (a) 200 242
6.000%, 12/01/24 (a) 250 297
El Paso County School District #49, Falcon,
Series A, Callable 12/01/09 @ 105 (FSA) (STAID)
6.000%, 12/01/18 200 236
Morgan County School District #RE-3,
Callable 12/01/09 @ 100 (AMBAC)
4.800%, 12/01/18 250 260
Pueblo County, School District #70,
Pre-refunded 12/01/09 @ 100 (FGIC) (STAID)
6.000%, 12/01/18 (a) 100 118
Puerto Rico Commonwealth, Public Improvements,
Callable 07/01/05 @ 101
6.000%, 07/01/29 200 214
---------------
TOTAL GENERAL OBLIGATIONS 4,527
---------------
CERTIFICATES OF PARTICIPATION - 14.9%
Arapahoe County Building Finance Authority,
Callable 02/15/10 @ 100 (AMBAC)
5.250%, 02/15/19 400 434
5.250%, 02/15/21 650 698
Broomfield Open Space Park & Recreation Facilities,
Callable 12/01/10 @ 100 (AMBAC)
5.500%, 12/01/20 800 888
Colorado Springs Old City Hall Project,
Callable 12/01/10 @ 100 (FSA)
5.500%, 12/01/17 200 225
5.500%, 12/01/20 200 222
Denver City & County, Series A,
Callable 05/01/10 @ 100 (MBIA)
5.500%, 05/01/17 400 449
Eagle County, Callable 12/01/09 @ 101 (MBIA)
5.400%, 12/01/18 300 332
Fremont County Lease,
Callable 12/15/07 @ 101 (MBIA) (MLO)
5.300%, 12/15/17 250 282
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
Garfield County,
Callable 12/01/09 @ 101 (AMBAC)
5.750%, 12/01/19 $ 300 $ 343
---------------
TOTAL CERTIFICATES OF PARTICIPATION 3,873
---------------
TOTAL MUNICIPAL BONDS
(Cost $22,810) 25,519
---------------
AFFILIATED MONEY MARKET FUND - 0.7%
First American Tax Free Obligations
Fund, Cl Z (d) 186,276 186
---------------
TOTAL AFFILIATED MONEY MARKET FUND
(Cost $186) 186
---------------
TOTAL INVESTMENTS - 98.8%
(Cost $22,996) 25,705
---------------
OTHER ASSETS AND LIABILITIES, NET - 1.2% 320
---------------
TOTAL NET ASSETS - 100.0% $ 26,025
---------------
</Table>
(a) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) The rate shown is the effective yield at the time of purchase.
(c) Escrowed to Maturity issues are usually backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(d) Investment in affiliated security. This money market fund is advised by
U.S. Bancorp Asset Management, Inc., which also serves as advisor for this
Fund. See note 3 in Notes to Financial Statements.
ACA - American Capital Access
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market
value of securities subject to the AMT was $503,992, which represents 1.9%
of net assets.
Cl - Class
FGIC - Financial Guaranty Insurance Corporation
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
RAAI - Radian Asset Assurance Inc.
STAID - State Aid Withholding
13
<Page>
INTERMEDIATE TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.7%
ALABAMA - 0.8%
Alabama State Docks Department,
Callable 10/01/08 @ 102 (MBIA) (RB)
5.250%, 10/01/10 $ 3,000 $ 3,387
Anniston, Regional Medical Center Board,
Northeast Alabama Regional Medical
Center Project, Escrowed to Maturity (RB)
8.000%, 07/01/11 (a) 1,400 1,749
West Jefferson Amusement & Public Park Authority,
First Mortgage, Visionland Alabama Project,
Pre-refunded 12/01/06 @ 102 (RB)
7.500%, 12/01/08 (b) 845 948
---------------
6,084
---------------
ALASKA - 1.1%
Alaska Energy Authority, Bradley Lake,
Third Series (FSA) (RB)
6.000%, 07/01/10 2,610 3,076
Alaska State Housing Finance Corporation,
Series A (MBIA) (RB)
5.350%, 06/01/06 380 382
Alaska State Housing Finance Corporation,
Series A (RB)
5.900%, 12/01/04 700 721
Alaska State Housing Finance Corporation,
Series A, Callable 06/01/04 @ 102 (RB)
5.400%, 12/01/23 3,000 3,050
Alaska State Housing Finance Corporation,
Series A, Callable 12/01/05 @ 102 (MBIA) (RB)
5.400%, 12/01/08 1,000 1,053
---------------
8,282
---------------
ARIZONA - 2.9%
Arizona Health Facilities Authority, The Terraces
Project, Series A, Callable 11/15/13 @101 (RB)
7.500%, 11/15/23 3,300 3,345
Arizona State Municipal Financing Program,
Escrowed to Maturity (COP) (MLO)
8.750%, 08/01/07 (a) 1,500 1,829
Arizona State Municipal Financing Program,
Series 15, Escrowed to Maturity (COP) (MLO)
8.750%, 08/01/07 (a) 2,085 2,541
Arizona State Transportation Highway Board (RB)
8.000%, 07/01/05 5,000 5,420
Maricopa County School District #69,
Paradise Valley (GO) (MBIA)
5.300%, 07/01/11 1,000 1,150
Phoenix Street & Highway User (RB)
6.500%, 07/01/09 180 182
6.250%, 07/01/11 900 911
Tucson Airport Authority (FSA) (RB)
5.000%, 06/01/13 2,760 3,093
Yavapai County Industrial Development Authority,
Waste Management Project,
Mandatory Put 06/01/05 @ 100 (AMT) (RB)
4.625%, 06/01/27 2,000 2,060
---------------
20,531
---------------
ARKANSAS - 0.4%
Pulaski County, Residential Housing Facilities
Board, Escrowed to Maturity (FHA) (RB) (VA)
7.250%, 06/01/10 (a) 2,640 3,033
---------------
CALIFORNIA - 4.3%
ABAG Financial Authority, Archstone
Redwood Housing Project, Series A (RB)
5.300%, 10/01/08 $ 290 $ 309
ABC Unified School District, Series A (GO) (MBIA)
4.900%, 02/01/20 1,615 1,758
California State Department of Water, Series A,
Callable 05/01/12 @ 101 (RB)
5.875%, 05/01/16 2,000 2,268
California State, Callable 08/01/13 @ 100 (GO)
5.000%, 02/01/16 1,000 1,053
5.000%, 02/01/17 2,000 2,094
California State, Callable 11/01/11 @ 100 (GO)
5.000%, 11/01/18 5,000 5,169
California State, Callable 02/01/14 @ 100 (GO)
5.000%, 02/01/21 1,500 1,536
California Statewide Communities Development
Authority, Archstone Seascape,
Mandatory Put 06/01/08 @ 100 (RB)
5.250%, 06/01/29 1,000 1,060
California Statewide Communities Development
Authority, Elder Care Alliance, Series A (RB)
7.250%, 11/15/11 1,450 1,452
California Statewide Communities Development
Authority, Kaiser Permanente, Series I,
Mandatory Put 05/01/11 @ 100 (RB)
3.450%, 04/01/35 (c) 500 500
California Statewide Communities Development
Authority, Los Angeles Jewish Home (CMI) (RB)
5.000%, 11/15/12 1,210 1,306
California Statewide Communities Development
Authority, Multifamily Housing, Citrus Gardens
Apartments, Callable 07/01/12 @ 102 (RB)
5.375%, 07/01/26 500 514
California Statewide Communities Development
Authority, Waste Management Project,
Mandatory Put 04/01/04 @ 100 (AMT) (RB)
4.950%, 04/01/11 750 751
Golden State Tobacco Securitization,
Callable 06/01/10 @ 100 (GO) (MLO)
5.600%, 06/01/28 2,450 2,509
Golden State Tobacco Securitization,
Series B (RB) (MLO)
5.000%, 06/01/12 1,000 1,081
La Verne, Brethren Hillcrest Homes, Series B,
Callable 02/15/13 @ 101 (ACA) (COP)
5.600%, 02/15/33 1,150 1,205
Mountain View Los Altos School District,
Callable 05/01/07 @ 102 (GO)
6.500%, 05/01/17 2,000 2,300
Roseville California JT High School,
Callable 08/01/11 @ 101 (GO)
5.100%, 08/01/19 390 420
San Marcos, Escrowed to Maturity,
Zero Coupon Bond (COP) (MLO)
4.890%, 02/15/06 (a) (d) 1,085 1,054
San Mateo Unified High School District,
Series B, Zero Coupon Bond (FGIC) (GO)
5.150%, 09/01/17 (d) 1,000 544
Victor Elementary School District, Series A,
Zero Coupon Bond (FGIC) (GO)
5.660%, 08/01/23 (d) 2,030 765
</Table>
14
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Woodland Financial Authority,
Callable 03/01/13 @ 102 (MLO) (RB) (XLCA)
4.700%, 03/01/19 $ 815 $ 853
4.800%, 03/01/20 855 896
---------------
31,397
---------------
COLORADO - 6.2%
Arapahoe County, Single Family,
Escrowed to Maturity, Zero Coupon Bond (RB)
3.340%, 09/01/10 (a) (d) 9,320 7,570
Colorado Department of
Transportation (AMBAC) (RB)
6.000%, 06/15/08 3,000 3,452
Colorado Springs, Series A (RB) (VRDO)
1.017%, 11/01/29 1,900 1,900
Colorado State Educational & Cultural Facilities
Authority, Bromley East Charter School Project,
Callable 09/15/11 @ 100 (RB)
6.750%, 09/15/15 1,200 1,232
Colorado State Educational & Cultural Facilities
Authority, Classical Academy Charter
School Project, Escrowed to Maturity (RB)
6.375%, 12/01/11 (a) 880 1,012
Colorado State Educational & Cultural Facilities
Authority, Classical Academy Charter School
Project, Pre-refunded 12/01/11 @ 100 (RB)
6.750%, 12/01/16 (b) 1,500 1,856
7.250%, 12/01/21 (b) 1,500 1,902
Colorado State Educational & Cultural Facilities
Authority, Pinnacle Charter School Project (RB)
5.250%, 12/01/11 1,490 1,694
Colorado State Health Facilities Authority,
Catholic Health Initiatives, Series A (RB)
5.000%, 03/01/12 745 815
Colorado State Health Facilities Authority,
Retirement Facilities, Escrowed to Maturity,
Zero Coupon Bond (RB)
5.500%, 07/15/20 (a) (d) 10,000 4,552
Colorado State Housing Finance Authority,
Series A-2, Callable 05/01/06 @ 105 (RB)
7.150%, 11/01/14 235 236
Denver City & County School District #1,
Callable 12/01/13 @ 100 (FSA) (GO) (STAID)
4.000%, 12/01/14 4,945 5,109
El Paso County School District #2, Harrison,
Callable 12/01/11 @ 100 (FGIC) (GO) (STAID)
5.500%, 12/01/16 1,280 1,443
Jefferson County School District #R-1 (GO) (MBIA)
6.500%, 12/15/11 2,000 2,473
Jefferson County School District #R-1,
Callable 12/15/08 @ 101 (FGIC) (GO) (STAID)
5.250%, 12/15/11 1,000 1,125
Loveland, Escrowed to Maturity (GO)
8.875%, 11/01/05 (a) 745 805
Mesa County, Escrowed to Maturity,
Zero Coupon Bond (RB)
3.539%, 12/01/11 (a) (d) 5,500 4,199
Montrose Memorial Hospital,
Callable 12/01/13 @ 102 (RB)
5.700%, 12/01/17 2,170 2,239
Westminster Water & Wastewater
Utilities Improvement,
Callable 12/01/04 @ 100 (AMBAC) (RB)
6.000%, 12/01/09 1,000 1,030
---------------
44,644
---------------
CONNECTICUT - 0.7%
Mashantucket Western Pequot Tribe, Series A,
Callable 09/01/06 @ 102,
Pre-refunded 09/01/07 @ 101 (RB)
6.400%, 09/01/11 (b) (e) $ 4,170 $ 4,768
---------------
DELAWARE - 0.7%
Delaware State Economic Development Authority,
Pre-refunded 07/01/05 @ 102 (RB)
7.625%, 07/01/25 (b) 2,800 3,070
Delaware State Health Facilities Authority,
Partially Pre-refunded 04/01/04
and 10/01/04 @ 100 (RB)
7.000%, 10/01/15 (b) 1,265 1,303
New Castle County, Callable 04/01/04 @ 102 (GO)
5.300%, 10/01/05 710 726
---------------
5,099
---------------
FLORIDA - 1.5%
Escambia County Health Facilities Authority,
Ascension Health Credit, Series A (RB)
5.250%, 11/15/14 2,000 2,226
Greater Orlando Aviation Authority, Airport
Facilities (AMT) (FGIC) (RB)
5.250%, 10/01/09 1,815 2,017
Lee County Industrial Development Authority,
Shell Point Village Health Project, Series A (RB)
5.500%, 11/15/08 1,000 1,090
Palm Beach County Health Facilities Authority,
Abbey Delray South, Life Care Retirement
Community (RB)
5.250%, 10/01/13 1,400 1,454
Palm Beach County Housing Facilities,
Lourdes Noreen McKeen (RAAI) (RB)
3.500%, 12/01/08 785 815
3.750%, 12/01/09 815 848
Tampa Excise Tax, Callable 04/01/04 @ 100 (RB)
6.125%, 04/01/08 2,000 2,213
---------------
10,663
---------------
GEORGIA - 0.2%
Cherokee County Water & Sewer Authority,
Escrowed to Maturity,
Callable 08/01/04 @ 101.50 (MBIA) (RB)
11.250%, 08/01/07 (a) 1,445 1,755
---------------
HAWAII - 1.4%
Hawaii State Airport System,
Series B (AMT) (FGIC) (RB)
6.250%, 07/01/06 2,000 2,194
Hawaii State Harbor System,
Series A (AMT) (FSA) (RB)
5.250%, 07/01/08 2,270 2,520
Hawaii State, Series CY (FSA) (GO)
5.250%, 02/01/10 5,000 5,672
---------------
10,386
---------------
IDAHO - 0.1%
Ada & Canyon Counties, Joint School District #2,
Pre-refunded 07/30/05 @ 101 (GO)
5.500%, 07/30/11 (b) 1,000 1,067
---------------
ILLINOIS - 17.4%
Bolingbrook, Capital Appreciation, Escrowed to
Maturity, Zero Coupon Bond (FGIC) (GO)
4.950%, 01/01/06 (a) (d) 1,000 973
</Table>
15
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Bolingbrook, Capital Appreciation,
Zero Coupon Bond (GO)
4.850%, 01/01/05 (d) $ 1,080 $ 1,071
Champaign County Community Unit School
District #004 (GO)
8.250%, 01/01/09 1,315 1,635
Chicago Water, Zero Coupon Bond (FGIC) (RB)
6.776%, 11/01/08 (d) 5,150 4,563
5.260%, 11/01/09 (d) 6,450 5,462
Chicago, City Colleges,
Zero Coupon Bond (FGIC) (GO)
5.900%, 01/01/15 (d) 10,000 6,316
Chicago, Midway Airport Project,
Series C (MBIA) (RB)
5.500%, 01/01/14 1,300 1,483
Chicago, Park District, Parking Facilities
Authority (ACA) (RB)
5.500%, 01/01/08 3,585 4,011
Chicago, Project & Refunding (FSA) (GO)
5.500%, 01/01/13 1,000 1,157
Chicago, Project & Refunding, Series A (FGIC) (GO)
5.250%, 01/01/11 5,000 5,676
Chicago, Single Family Mortgages, Series A,
Callable 03/01/06 @ 103 (AMT) (FHLMC)
(FNMA) (GNMA) (RB)
5.250%, 03/01/13 55 56
Cook County Community High School
District #219, Zero Coupon Bond (FSA) (GO)
4.900%, 12/01/07 (d) 1,560 1,434
Cook County Community Unit School District #65,
Evanston, Series A (FSA) (GO)
6.375%, 05/01/09 3,000 3,544
Cook County Community Unit School District #102,
Zero Coupon Bond (FGIC) (GO)
5.200%, 12/01/13 (d) 2,440 1,663
Cook County Community Unit School District #401
Elmwood Park, Zero Coupon Bond (FSA) (GO)
5.800%, 12/01/11 (d) 3,625 2,767
Cook County High School District #200, Oak Park,
Zero Coupon Bond (FSA) (GO)
4.900%, 12/01/06 (d) 2,265 2,154
Cook County School District #123, Oak Lawn,
Capital Appreciation,
Zero Coupon Bond (MBIA) (GO)
5.100%, 12/01/15 (d) 2,250 1,360
Cook County, Escrowed to Maturity (MBIA) (GO)
7.250%, 11/01/07 (a) 2,000 2,204
Cook County, Series A (MBIA) (GO)
6.250%, 11/15/11 1,000 1,210
Du Page County Community High School
District #94, West Chicago (FSA) (GO)
7.250%, 11/01/09 1,780 2,196
Granite Single Family Mortgage (RB)
7.750%, 10/01/11 760 920
Illinois Development Finance Authority,
Midwestern University, Series B,
Callable 05/15/11 @ 101 (RB)
5.750%, 05/15/16 350 377
Illinois Health Facilities Authority, St. Benedict,
Series 2003A-2, Callable 11/15/05 @ 100 (RB)
5.750%, 11/15/15 2,750 2,755
Illinois State (AMBAC) (COP) (MLO)
6.000%, 07/01/06 1,000 1,097
Illinois State Development Finance Authority,
Elgin School District, Zero Coupon Bond (RB)
5.210%, 01/01/18 (d) $ 2,750 $ 1,442
Illinois State Development Finance Authority,
Elmhurst Community School #205,
Callable 01/01/11 @ 100 (FSA) (RB)
6.375%, 01/01/13 1,025 1,222
Illinois State Development Finance Authority,
Waste Management Project (AMT) (RB)
5.850%, 12/01/07 1,000 1,085
Illinois State Educational Facilities Authority,
Loyola University of Chicago, Series A,
Escrowed to Maturity (RB)
7.000%, 07/01/07 (a) 1,000 1,133
Illinois State Educational Facilities Authority,
The Art Institute of Chicago,
Mandatory Put 03/01/06 @ 100 (RB)
4.700%, 03/01/30 4,500 4,722
Illinois State Health Facilities Authority (RB)
6.500%, 02/15/06 1,130 1,221
Illinois State Health Facilities Authority,
Covenant Retirement Communities,
Series A (RAAI) (RB)
3.875%, 12/01/08 1,000 1,052
4.350%, 12/01/10 1,605 1,707
Illinois State Health Facilities Authority,
Evangelical, Escrowed to Maturity (RB)
6.750%, 04/15/12 (a) 1,320 1,606
Illinois State Health Facilities Authority,
Mercy Hospital & Medical Center,
Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
10.000%, 01/01/15 (a) 780 1,091
Illinois State Sales Tax (RB)
6.000%, 06/15/09 2,500 2,920
5.100%, 06/15/10 2,000 2,260
Illinois State, First Series,
Callable 08/01/10 @ 100 (GO)
5.500%, 08/01/15 4,500 5,089
Illinois State, Pre-refunded
06/01/09 @ 101 (FGIC) (GO)
5.375%, 06/01/10 (b) 2,000 2,297
Kane County School District #129,
Aurora West Side, Series A (GO) (MBIA)
6.500%, 02/01/07 1,000 1,125
Lake County Community School District #50,
Woodland, Series A,
Callable 12/01/08 @ 100 (FGIC) (GO)
5.000%, 12/01/09 1,000 1,104
Lake County Community Unit School District #50,
Woodland (GO) (MBIA)
8.500%, 01/01/07 1,460 1,716
Lake County Community Unit School District #60,
Waukegan, Series B (FSA) (GO)
6.000%, 12/01/07 2,785 3,181
7.500%, 12/01/08 3,640 4,457
Lake County School District #56,
Gurnee (FGIC) (GO)
8.375%, 01/01/10 1,290 1,662
Madison & Jersey Counties Unit School
District #11, Alton, Capital Appreciation,
Zero Coupon Bond (FSA) (GO)
5.350%, 12/01/19 (d) 2,100 993
</Table>
16
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Metropolitan Pier & Exposition Authority,
State Sales Tax, Series A,
Zero Coupon Bond (FGIC) (RB)
5.000%, 06/15/09 (d) $ 35 $ 30
Metropolitan Pier & Exposition Authority,
State Sales Tax, Series A,
Callable 06/15/06 @ 102 (AMBAC) (RB)
6.000%, 06/15/07 750 830
Metropolitan Pier & Exposition Authority,
State Sales Tax, Series A,
Callable 12/15/09 @ 101 (FGIC) (RB)
5.550%, 12/15/11 675 774
Metropolitan Pier & Exposition Authority,
State Sales Tax, Series A, Escrowed to Maturity,
Zero Coupon Bond (FGIC) (RB)
5.000%, 06/15/09 (a) (d) 1,465 1,262
Metropolitan Pier & Exposition Authority,
State Sales Tax, Series A,
Pre-refunded 06/15/06 @ 102 (AMBAC) (RB)
6.000%, 06/15/07 (b) 250 279
Morton Grove Residential Housing,
Escrowed to Maturity (MBIA) (RB)
7.350%, 09/01/09 (a) (e) 5,570 6,888
Rockford School District #205 (FGIC) (GO)
5.000%, 02/01/14 500 558
Springfield Electric Revenue (MBIA) (RB)
6.000%, 03/01/06 1,050 1,138
St. Clair County,
Callable 10/01/09 @ 102 (FGIC) (GO)
6.000%, 10/01/11 1,000 1,175
St. Clair County, Public Building,
Series C (FGIC) (RB) (MLO)
6.000%, 12/01/09 2,175 2,552
Will County School District #86,
Zero Coupon Bond (FSA) (GO)
5.600%, 11/01/17 (d) 3,870 2,087
Will County School District #365,
Zero Coupon Bond (FSA) (GO)
4.530%, 11/01/05 (d) 1,685 1,648
Winnebago & Boone Counties School
District #205, Series C,
Partially Escrowed to Maturity (FGIC) (GO)
6.000%, 02/01/08 (a) 5,065 5,765
Winnebago County School District #122,
Harlem-Love Park, Zero Coupon Bond (FSA) (GO)
5.200%, 01/01/17 (d) 3,000 1,680
---------------
125,835
---------------
INDIANA - 2.1%
Crown Point Multi-School Building,
First Mortgage (MBIA) (MLO) (RB)
7.625%, 01/15/08 1,000 1,191
Evansville Vanderburgh, Public Leasing,
Callable 01/15/12 @ 100 (MBIA) (MLO) (RB)
5.750%, 07/15/18 1,000 1,120
Franklin Township Independent School Building
Corporation (RB)
5.750%, 07/15/09 1,235 1,432
Gary Sanitation District,
Special Tax District (GO) (RAAI)
3.750%, 02/01/11 1,260 1,286
Indiana State Educational Facilities Authority,
St. Joseph's College Project (RB)
6.100%, 10/01/09 1,200 1,330
Indiana State Educational Facilities Authority,
St. Joseph's College Project,
Callable 10/01/09 @ 102 (RB)
6.600%, 10/01/14 $ 1,410 $ 1,527
Indiana State Housing Authority, Series B-1,
Callable 07/01/05 @ 102 (RB)
6.150%, 07/01/17 435 442
Indiana Transportation Finance Authority,
Escrowed to Maturity,
Callable 06/01/11 @ 100 (RB)
5.750%, 06/01/12 (a) 180 210
Indiana Transportation Finance Authority,
Series A (AMBAC) (RB)
5.750%, 06/01/12 1,820 2,141
Indiana University, Series K,
Zero Coupon Bond (MBIA) (RB)
5.360%, 08/01/11 (d) 750 580
Indianapolis Industry Local Public Improvement
Board, Series D (RB)
6.600%, 02/01/07 1,960 2,208
St. Joseph County Hospital,
Callable 02/15/08 @ 101 (MBIA) (RB)
4.750%, 08/15/12 1,000 1,054
Zionsville Community Schools Building,
First Mortgage Bonds,
Callable 01/15/12 @ 100 (FGIC) (MLO) (RB) (STAID)
5.750%, 07/15/15 775 879
---------------
15,400
---------------
IOWA - 0.8%
Iowa Higher Education Authority,
Callable 10/01/12 @ 100 (ACA) (RB)
5.500%, 10/01/28 2,000 2,115
Iowa Higher Education Authority,
Central College (RB)
5.450%, 10/01/26 1,000 1,049
Muscatine Electric, Escrowed to Maturity,
Callable 07/01/04 @ 100 (RB)
9.700%, 01/01/13 (a) 2,140 2,834
---------------
5,998
---------------
KANSAS - 1.4%
Butler County Public Building Authority
(MBIA) (MLO) (RB)
6.375%, 10/01/10 1,000 1,208
Hays Water & Sewer, Escrowed to Maturity,
Callable 09/01/04 @ 100 (RB)
6.500%, 03/01/07 (a) 1,000 1,133
Johnson County Residual Housing,
Escrowed to Maturity, Zero Coupon Bond,
Callable 05/01/12 @ 100 (RB)
3.800%, 05/01/12 (a) (d) 7,500 5,529
Sedgwick & Shawnee Counties, Single Family
Mortgages, Series A-2 (GNMA) (RB)
6.700%, 06/01/29 1,110 1,143
Sedgwick County School District #267
(AMBAC) (GO)
5.250%, 11/01/12 1,045 1,198
---------------
10,211
---------------
KENTUCKY - 1.0%
Kentucky State Economic Development Finance
Authority, Scottsville Medical Center, Series A,
Pre-refunded 11/01/04 @ 103 (RB)
9.000%, 11/01/24 (b) 2,215 2,377
</Table>
17
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Kentucky State Turnpike Authority,
Escrowed to Maturity (RB)
7.200%, 07/01/09 (a) $ 1,240 $ 1,412
Kentucky State Turnpike Authority, Escrowed to
Maturity, Callable 04/01/04 @ 100 (RB)
6.000%, 07/01/11 (a) 815 920
Louisville Water, Escrowed to Maturity (RB)
6.000%, 11/15/07 (a) 1,250 1,419
Louisville Water, Escrowed to Maturity,
Callable 04/01/04 @ 101 (RB)
6.375%, 11/01/07 (a) 1,000 1,024
---------------
7,152
---------------
LOUISIANA - 0.3%
Louisiana Local Government Environmental
Facilities, Community Development Authority,
Callable 01/01/12 @ 101 (AMT) (RB)
6.650%, 01/01/25 840 874
Orleans Parish, Parishwide School District,
Series A (FGIC) (GO)
7.375%, 09/01/07 1,145 1,349
---------------
2,223
---------------
MAINE - 0.3%
Maine Municipal Bond Bank, Series B (FSA) (GO)
5.750%, 11/01/10 2,000 2,352
---------------
MASSACHUSETTS - 4.0%
Boston Industrial Development Financing
Authority, Crosstown Center Project,
Callable 09/01/12 @ 102 (AMT) (RB)
6.500%, 09/01/35 2,000 1,999
Massachusetts Bay Transportation Authority,
General Transportation System Project,
Series C (FGIC) (RB)
5.750%, 03/01/10 2,100 2,442
Massachusetts Bay Transportation Authority,
Series A (RB)
6.250%, 03/01/12 1,875 2,258
Massachusetts State Commonwealth, Special
Obligation, Series A (RB)
5.500%, 06/01/13 1,000 1,164
Massachusetts State Health & Educational
Facilities Authority, Partners Healthcare System,
Series A, Callable 07/01/07 @ 101 (MBIA) (RB)
5.100%, 07/01/10 3,000 3,269
Massachusetts State Port Authority (RB)
5.750%, 07/01/12 1,000 1,164
Massachusetts State Port Authority, Escrowed to
Maturity, Callable 04/01/04 @ 100 (RB)
13.000%, 07/01/13 (a) 4,515 6,773
Massachusetts State, Multi-Family Housing,
Escrowed to Maturity,
Callable 04/01/04 @ 100 (FHA) (RB)
6.350%, 04/01/08 (a) 1,000 1,000
Massachusetts State, Series A,
Callable 01/01/11 @ 100 (GO)
5.125%, 01/01/16 3,000 3,371
Massachusetts State, Series B,
Pre-refunded 05/01/10 @ 100 (GO)
5.000%, 05/01/12 (b) 5,000 5,598
---------------
29,038
---------------
MICHIGAN - 5.2%
Chippewa Valley Schools,
Callable 05/01/12 @ 100 (GO) (MQSBLF)
5.500%, 05/01/14 $ 1,775 $ 2,024
Constantine Public Schools,
Callable 11/01/12 @ 100 (GO) (MQSBLF)
5.000%, 05/01/15 1,050 1,150
5.000%, 05/01/16 1,075 1,168
Detroit (AMT) (FSA) (GO)
5.750%, 04/01/09 1,255 1,425
Detroit Water Supply, Escrowed to Maturity,
Callable 04/01/04 @ 101 (FGIC) (RB)
6.250%, 07/01/12 (a) 285 289
Gibraltar School District,
Callable 11/01/12 @ 100 (GO) (MQSBLF)
5.500%, 05/01/15 1,175 1,329
Lakeshore Public Schools,
Callable 05/01/11 @ 100 (GO)
5.000%, 05/01/12 1,260 1,398
Lakeview Public Schools,
Callable 05/01/11 @ 100 (GO)
5.000%, 05/01/14 1,985 2,176
Michigan State Hospital Finance Authority,
Ascension Health Credit, Series B,
Mandatory Put 11/15/05 @ 100 (RB)
5.200%, 11/15/33 3,000 3,183
Michigan State Hospital Finance Authority,
Henry Ford Health Systems, Series A,
Callable 03/01/13 @ 100 (RB)
5.500%, 03/01/15 3,500 3,800
Michigan State Hospital Finance Authority,
Henry Ford Hospital, Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
9.000%, 05/01/08 (a) 4,500 5,300
Michigan State Housing Development Authority,
Green Hill Project,
Callable 07/15/04 @ 102 (FNMA) (RB)
5.125%, 07/15/08 1,800 1,847
Michigan State Strategic Fund, Dow-Chemical
Project, Mandatory Put 06/01/06 @ 100 (RB)
3.800%, 06/01/14 (c) 2,200 2,274
Oakland University,
Callable 05/15/05 @ 102 (MBIA) (RB)
5.600%, 05/15/10 1,000 1,065
Rochester Community School District, Series 1,
Pre-refunded 05/01/10 @ 100 (FGIC) (GO)
5.375%, 05/01/11 (b) 2,000 2,292
Romulus Economic Development Corporation,
Partnership Project, Escrowed to Maturity,
Callable 04/01/04 @ 101.50 (RB)
7.000%, 11/01/15 (a) 1,300 1,660
Wayne Charter County Airport, Series A,
Callable 12/01/08 @ 101 (AMT) (MBIA) (RB)
5.250%, 12/01/09 5,000 5,516
---------------
37,896
---------------
MINNESOTA - 3.7%
Lakeville Independent School District #194,
School Building, Series C (FSA) (GO) (MSDCEP)
4.500%, 02/01/12 1,000 1,092
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B (AMT) (FGIC) (RB)
5.750%, 01/01/10 1,000 1,130
</Table>
18
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B,
Callable 01/01/08 @ 101 (AMBAC) (AMT) (RB)
5.375%, 01/01/10 $ 3,000 $ 3,250
Minneapolis Hospital & Rehabilitation,
Escrowed to Maturity (RB)
10.000%, 06/01/13 (a) 1,035 1,388
Minnesota Agriculture & Economic Development
Board, Health Care Systems, Series A,
Callable 11/15/10 @ 101 (RB)
5.875%, 11/15/11 2,135 2,447
Monticello, Big Lake Community Hospital District,
Health Care Facilities, Series C (RB)
5.250%, 12/01/11 1,940 2,049
Moorhead Independent School District #152,
Callable 04/01/12 @ 100 (FGIC) (GO) (MSDCEP)
5.000%, 04/01/13 1,270 1,419
Robbinsdale Independent School
District #281 (GO) (MSDCEP)
5.000%, 02/01/09 1,250 1,395
Robbinsdale Independent School District #281,
Callable 02/01/09 @ 100 (GO) (MSDCEP)
5.250%, 02/01/12 1,435 1,607
South Washington County Independent School
District #833, Series A,
Callable 02/01/10 @ 100 (GO) (MSDCEP)
5.300%, 02/01/11 1,000 1,126
St. Paul Housing & Redevelopment Authority,
Callable 08/01/06 @ 102.50 (AMBAC) (RB)
6.400%, 02/01/07 1,195 1,343
6.400%, 08/01/07 1,205 1,359
6.500%, 02/01/09 1,315 1,484
St. Paul Port Authority Hotel,
Pre-refunded 08/01/08 @ 100 (RB)
8.050%, 08/01/21 (b) 2,335 2,867
St. Paul Port Authority, Office Building at
Cedar St.-03-12 (MLO)
4.000%, 12/01/11 2,045 2,181
St. Paul Port Authority, Office Building at
Robnert St.-3-11 (MLO)
3.250%, 12/01/09 500 519
---------------
26,656
---------------
NEBRASKA - 1.7%
Douglas County Hospital Authority #002,
Medical Center (GTY) (RB)
5.000%, 11/15/11 2,860 3,140
Douglas County Hospital Authority #1,
Immanuel Medical Center,
Callable 09/01/07 @ 102 (AMBAC) (RB)
4.800%, 09/01/08 1,400 1,540
Nebraska Educational Finance Authority,
Creighton University Project,
Callable 01/01/06 @ 101 (AMBAC) (RB)
5.600%, 01/01/07 2,500 2,684
Nebraska Educational Telecommunication
Commission, Leasing Project,
Series 2000 (MLO) (RB)
6.000%, 02/01/06 1,275 1,375
Nebraska Investment Financial Authority,
Great Plains Regional Medical Center (RAAI) (RB)
4.700%, 11/15/11 500 540
Nebraska Investment Financial Authority,
Great Plains Regional Medical Center,
Callable 05/15/12 @ 100 (RAAI) (RB)
4.800%, 11/15/12 $ 500 $ 538
4.900%, 11/15/13 600 644
Omaha Northwest Library Facilities,
Callable 08/15/07 @ 102 (MLO) (RB)
5.250%, 08/15/12 975 1,088
University of Nebraska, Lincoln Student Fees &
Facilities, Series B,
Callable 11/15/13 @ 100 (RB)
4.000%, 07/01/15 500 506
---------------
12,055
---------------
NEVADA - 1.5%
Carson City, Carson-Tahoe Hospital Project (RB)
5.750%, 09/01/11 1,000 1,109
5.750%, 09/01/12 1,055 1,166
Clark County School District, Building &
Renovation, Series B,
Callable 06/15/07 @ 101 (FGIC) (GO)
5.750%, 06/15/08 1,000 1,132
Nevada State, Callable 06/01/08 @ 100 (GO)
5.250%, 06/01/11 3,000 3,319
Washoe County, Escrowed to Maturity,
Callable 08/01/04 @ 100 (GO)
9.875%, 08/01/09 (a) 3,455 4,335
---------------
11,061
---------------
NEW HAMPSHIRE - 0.1%
New Hampshire Health & Educational Facilities
Authority, Southern New Hampshire Medical
Center, Series A (RAAI) (RB)
5.000%, 10/01/13 790 864
---------------
NEW JERSEY - 1.5%
New Jersey Health Care Facilities,
Capital Health Systems, Series A (RB)
5.500%, 07/01/12 1,500 1,650
New Jersey State Transportation Trust Fund
Authority, Series A (RB)
5.500%, 06/15/08 2,000 2,255
New Jersey State Turnpike Authority,
Escrowed to Maturity (RB)
6.750%, 01/01/09 (a) 820 890
New Jersey State Turnpike Authority,
Series A (MBIA) (RB)
5.500%, 01/01/09 5,000 5,685
---------------
10,480
---------------
NEW MEXICO - 1.2%
Farmington, Pre-refunded 07/01/05 @ 100 (RB)
9.875%, 01/01/13 (b) 7,575 8,308
---------------
NEW YORK - 3.4%
Hempstead Town Industrial Development Agency,
Callable 12/01/06 @ 102 (MBIA) (RB)
5.000%, 12/01/08 2,000 2,171
Long Island Power Authority, Series B (RB)
5.250%, 12/01/13 4,000 4,463
New York City Transitional Finance Authority,
Series A, Callable 11/01/11 @ 100 (RB)
5.500%, 11/01/26 1,000 1,141
</Table>
19
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
New York State Dormitory Authority,
Mental Health Services Facilities,
Callable 08/15/10 @ 100 (FSA) (RB)
5.750%, 02/15/11 $ 1,200 $ 1,367
New York State Dormitory Authority,
State Personal Income Tax, Series A (FSA) (RB)
5.500%, 03/15/12 2,000 2,316
New York State Environmental Facilities,
Pollution Control, Series D,
Pre-refunded 11/15/04 @ 102 (RB)
6.400%, 05/15/06 (b) 530 558
New York State Environmental Facilities,
Pollution Control, Series D-02,
Callable 11/15/04 @ 102 (RB)
6.400%, 05/15/06 225 236
New York State Environmental Facilities,
Pollution Control, Series D-02,
Pre-refunded 11/15/04 @ 102 (RB)
6.400%, 05/15/06 (b) 495 521
New York, Series A, Callable 08/01/12 @ 100 (GO)
5.750%, 08/01/15 3,220 3,611
New York, Series C, Callable 03/15/12 @ 100 (GO)
5.500%, 03/15/14 3,000 3,323
New York, Series D (GO)
5.500%, 06/01/12 2,000 2,257
New York, Series G (GO) (XLCA)
5.500%, 08/01/12 2,000 2,298
---------------
24,262
---------------
NORTH CAROLINA - 0.8%
North Carolina Eastern Power Agency,
Series D (RB)
5.375%, 01/01/13 2,955 3,227
North Carolina Power Agency #1, Series A,
Callable 01/01/13 @ 100 (FSA) (RB)
5.250%, 01/01/16 2,000 2,211
---------------
5,438
---------------
NORTH DAKOTA - 0.2%
Fargo Health Systems, Meritcare Obligated Group,
Series A (FSA) (RB)
5.000%, 06/01/09 715 796
North Dakota State Industrial Commission,
Lignite Program, Series A (RB)
5.750%, 11/15/05 500 524
---------------
1,320
---------------
OHIO - 1.6%
Lorain County Hospital Facilities,
Catholic Healthcare Partners, Series B,
Callable 09/01/07 @ 102 (MBIA) (RB)
5.375%, 09/01/09 1,000 1,114
Ohio State Building Authority, Administration
Building Fund Project, Series A,
Callable 10/01/08 @ 101 (MLO) (RB)
5.250%, 10/01/09 3,000 3,364
Ohio State Building Authority, Adult Correctional
Facilities Project, Series A (MBIA) (MLO) (RB)
5.500%, 10/01/04 1,000 1,022
Ohio State Water Development Authority,
Escrowed to Maturity,
Callable 06/01/04 @ 100 (RB)
9.375%, 12/01/10 (a) 2,320 2,811
Richland County Hospital Facilities, Series A (RB)
5.450%, 11/15/04 $ 690 $ 707
5.500%, 11/15/05 725 765
5.550%, 11/15/06 765 828
5.650%, 11/15/08 595 664
---------------
11,275
---------------
OKLAHOMA - 2.6%
Cherokee County Economic, Zero Coupon Bond,
Escrowed to Maturity (AMBAC) (RB)
5.610%, 11/01/11 (a) (d) 3,340 2,564
Oklahoma City Industrial & Cultural Facilities,
Oklahoma City Project,
Callable 10/01/14 @ 101 (AMT) (RB)
5.750%, 01/01/23 1,430 1,371
Oklahoma County Housing Finance Authority,
Series B, Zero Coupon Bond,
Pre-refunded 03/01/06 @ 56.92 (RB)
5.740%, 07/01/12 (b) (d) 3,690 2,035
Oklahoma Housing Finance Agency, Series A-2,
Callable 05/01/05 @ 100 (FNMA) (RB)
5.500%, 11/01/25 3,000 3,115
South Oklahoma City, Callable 04/01/04 @ 100,
Pre-refunded 02/01/10 @ 100 (RB)
9.750%, 02/01/13 (b) 3,845 4,968
Tulsa County Home Finance Authority,
Escrowed to Maturity (RB)
6.900%, 08/01/10 (a) 1,710 2,101
Tulsa Educational Facilities Authority,
Holland Hall School Project, Series B,
Callable 12/01/08 @ 101 (RB)
4.600%, 12/01/09 1,195 1,288
Tulsa Metropolitan Utility Authority,
Callable 09/01/05 @ 102 (RB)
5.600%, 09/01/06 1,000 1,076
---------------
18,518
---------------
OREGON - 2.7%
Clackamas County School District #7J,
Lake Oswego, Callable 06/01/11 @ 100 (GO)
5.375%, 06/01/14 3,105 3,517
Lane County School District #19, Springfield,
Pre-refunded 10/15/04 @ 101 (GO) (MBIA)
5.900%, 10/15/06 (b) 1,000 1,036
Lane County School District #52,
Bethel (GO) (SBG)
5.500%, 06/15/09 1,000 1,146
Oregon State Department, Administrative
Services, Series A (COP) (FSA) (MLO)
5.500%, 11/01/13 1,275 1,489
Oregon State Department, Administrative
Services, Series E,
Callable 11/01/12 @ 100 (COP) (FSA) (MLO)
5.000%, 11/01/14 2,170 2,397
Polk, Marion & Benton Counties, School
District #13-J (FGIC) (GO)
5.500%, 12/01/04 1,015 1,045
Salem-Keizer School District #24-J,
Pre-refunded 06/01/09 @ 100 (GO) (SBG)
5.250%, 06/01/12 (b) 5,000 5,669
Washington County Unified Sewer Agency,
Series 1 (FGIC) (RB)
5.750%, 10/01/08 2,000 2,297
</Table>
20
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Washington County, Criminal Justice Facilities,
Pre-refunded 12/01/04 @ 100 (GO)
5.625%, 12/01/05 (b) $ 900 $ 928
---------------
19,524
---------------
PENNSYLVANIA - 0.7%
Central Greene School District, Capital
Appreciation, Escrowed to Maturity,
Zero Coupon Bond,
Callable 04/01/04 @ 63.986 (GO) (MBIA) (STAID)
4.690%, 12/01/07 (a) (d) 2,000 1,848
Montgomery County, Industrial Development
Authority, PECO Energy Project, Series A,
Mandatory Put 10/01/04 @ 100 (RB)
5.200%, 10/01/30 2,000 2,031
Philadelphia Hospitals Authority,
Pre-refunded 07/01/05 @ 100 (RB)
9.875%, 07/01/10 (b) 1,150 1,273
---------------
5,152
---------------
PUERTO RICO - 0.2%
Puerto Rico Electric Power Authority,
Series AA (MBIA) (RB)
6.000%, 07/01/06 1,000 1,101
---------------
SOUTH CAROLINA - 1.2%
Charleston, Public Facilities Corporation (COP) (MLO)
5.000%, 09/01/12 1,255 1,397
Lexington County Health Services District Inc.,
Lexington Medical Center,
Callable 11/01/13 @ 100 (RB)
5.500%, 11/01/23 2,000 2,118
South Carolina Jobs Economic Development
Authority, Palmetto Health Alliance, Series A (RB)
6.000%, 08/01/13 1,000 1,101
South Carolina Jobs Economic Development
Authority, Palmetto Health Alliance, Series C (RB)
6.000%, 08/01/13 2,000 2,201
South Carolina State Public Service Authority,
Series A (MBIA) (RB)
5.500%, 01/01/10 1,665 1,910
---------------
8,727
---------------
SOUTH DAKOTA - 1.1%
Deadwood (ACA) (COP) (MLO)
5.500%, 11/01/07 800 882
5.600%, 11/01/08 845 942
South Dakota State Health & Educational
Facilities Authority,
Sioux Valley Hospital (RB)
5.250%, 11/01/08 900 990
South Dakota State Health & Educational
Facilities Authority,
Westhills Village Retirement (RB)
5.500%, 09/01/04 640 644
5.650%, 09/01/05 665 676
5.800%, 09/01/06 735 754
5.900%, 09/01/07 755 777
4.750%, 09/01/11 530 553
5.000%, 09/01/12 1,000 1,051
South Dakota State Health & Educational
Facilities Authority,
Westhills Village Retirement Community,
Callable 09/01/12 @ 101 (RB)
5.000%, 09/01/13 1,000 1,053
---------------
8,322
---------------
TENNESSEE - 1.5%
Metropolitan Government Nashville & Davidson
County, Escrowed to Maturity,
Callable 04/01/04 @ 102 (RB)
6.400%, 04/01/11 (a) $ 1,030 $ 1,250
Shelby County Health, Educational & Housing
Facilities Board, Methodist Healthcare,
Callable 09/01/12 @ 100 (RB)
6.000%, 09/01/16 1,500 1,657
Shelby County Health, Educational & Housing
Facilities Board, St. Jude's Children's
Research (RB)
5.000%, 07/01/09 500 545
Sullivan County Health, Educational & Housing
Facilities, Wellmont Health Systems Project (RB)
6.250%, 09/01/11 1,465 1,671
6.250%, 09/01/12 1,085 1,234
Sullivan County Health, Educational & Housing
Facilities, Wellmont Health Systems Project,
Callable 09/01/12 @ 101 (RB)
6.500%, 09/01/13 2,215 2,544
Sullivan County Health, Educational & Housing
Facilities, Wellmont Health Systems Project,
Callable 09/01/13 @ 100 (RAAI) (RB)
5.000%, 09/01/16 2,000 2,119
---------------
11,020
---------------
TEXAS - 10.5%
Abilene Health Facilities Development, Sears
Methodist Retirement, Series A (RB)
5.100%, 11/15/05 1,115 1,127
5.250%, 11/15/06 1,175 1,204
5.300%, 11/15/07 1,000 1,031
5.350%, 11/15/08 1,300 1,348
Amarillo Health Facilities, Sears Panhandle
Retirement, Series B,
Pre-refunded 08/15/06 @ 102 (RB)
7.750%, 08/15/18 (b) 3,000 3,484
Amarillo Independent School District (GO) (PSFG)
7.000%, 02/01/06 1,035 1,136
7.000%, 02/01/07 1,095 1,246
Austin, Callable 09/01/11 @ 100 (GO)
5.000%, 09/01/13 4,510 4,993
Bexar County, Zero Coupon Bond (GO) (MBIA)
3.780%, 06/15/06 (d) 1,000 963
Brazos River Authority,
Electric Company Project, Series 1999-B,
Mandatory Put 04/01/13 @ 100 (AMT) (RB)
6.750%, 09/01/34 2,000 2,309
Brazos River Authority,
Electric Company Project, Series A,
Mandatory Put 05/01/05 @ 100 (AMT) (RB)
3.000%, 05/01/29 (c) 1,000 1,005
Brazos River Authority,
Electric Company Project, Series C,
Mandatory Put 11/01/11 @ 100 (AMT) (RB)
5.750%, 05/01/36 (c) 2,000 2,165
Brazos River Harbor District,
Dow Chemical, Series A-5,
Mandatory Put 05/15/12 @ 100 (AMT) (RB)
5.700%, 05/15/33 1,000 1,138
Cypress-Fairbanks Independent School District,
Callable 02/15/10 @ 100 (GO) (PSFG)
5.500%, 02/15/18 4,000 4,453
</Table>
21
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Frisco, Callable 02/05/11 @ 100 (FGIC) (GO)
5.000%, 02/15/18 $ 1,125 $ 1,202
5.000%, 02/15/19 1,675 1,776
Galveston County, Escrowed to Maturity,
Callable 04/01/04 @ 100 (GO) (MBIA)
6.400%, 02/01/05 (a) 315 329
Grapevine Industrial Development, Air Cargo,
Callable 01/01/12 @ 101 (AMT) (RB)
6.500%, 01/01/24 500 515
Grapevine-Colleyville Independent School
District (GO) (PSFG)
8.250%, 06/15/07 1,440 1,717
Gregg County Health Facilities Development,
Good Shepherd Medical Center, Series A (RB)
5.750%, 10/01/09 2,895 3,179
Houston Airport Systems (FSA) (RB)
5.250%, 07/01/11 2,735 3,108
Houston Airport Systems,
Callable 07/01/12 @ 100 (FSA) (RB)
5.000%, 07/01/27 2,000 2,065
Houston Airport Systems,
Escrowed to Maturity (RB)
8.200%, 07/01/05 (a) 430 451
Houston Health Facilities Development,
Buckingham Senior Living Community,
Series A, Callable 02/15/14 @ 101 (RB)
7.000%, 02/15/23 2,000 2,038
Houston Water & Sewer System,
Series B (AMBAC) (RB)
5.500%, 12/01/10 2,000 2,313
Irving Independent School District,
Series A, Zero Coupon Bond (GO) (PSFG)
5.000%, 02/15/09 (d) 5,000 4,350
Jefferson County Health Facilities Development,
Baptist Hospitals (AMBAC) (FHA) (RB)
4.400%, 08/15/09 1,000 1,081
Kaufman County,
Callable 02/15/12 @ 100 (FSA) (GO)
5.000%, 02/15/17 1,000 1,071
Keller Independent School District,
Callable 08/15/11 @ 100 (GO) (PSFG)
5.375%, 08/15/14 2,000 2,268
North Harris Montgomery Community College
District, Callable 02/15/12 @ 100 (FGIC) (GO)
5.375%, 02/15/15 2,535 2,840
Nueces County Housing Finance, Dolphins
Landing Apartments Project, Series A,
Callable 07/01/10 @ 102 (RB)
6.750%, 07/01/20 1,910 1,912
Odessa Housing Finance, Escrowed to Maturity,
Zero Coupon Bond,
Callable 06/01/04 @ 53.39 (MBIA) (RB)
3.780%, 06/01/12 (a) (d) 1,465 1,079
Plano Independent School District,
Pre-refunded 02/15/08 @ 100 (GO) (PSFG)
4.700%, 02/15/13 (b) 1,000 1,093
Port Houston Authority, Harris County, Series B,
Callable 10/01/11 @ 100 (AMT) (FGIC) (GO)
5.500%, 10/01/12 2,405 2,687
Sam Rayburn Municipal Power Agency,
Callable 04/01/04 @ 100, Partially
Pre-refunded 09/01/09 @ 100 (MBIA) (RB)
6.000%, 09/01/10 (b) 1,420 1,649
San Antonio Electric & Gas, Series A,
Callable 02/01/09 @ 101 (RB)
5.250%, 02/01/13 $ 2,135 $ 2,389
San Antonio Independent School
District (GO) (PSFG)
7.000%, 08/15/07 1,000 1,162
Texas State, Callable 10/01/08 @ 100 (GO)
5.000%, 10/01/15 1,000 1,080
Texas State Public Finance Authority,
Parks & Wildlife Projects,
Callable 02/01/08 @ 100 (AMBAC) (MLO) (RB)
6.000%, 08/01/08 1,000 1,134
Texas State Turnpike Authority,
Dallas North Highway Tolls (FGIC) (RB)
6.500%, 01/01/08 2,345 2,699
Tyler Health Facilities,
Mother Frances Hospital (RB)
5.250%, 07/01/12 1,000 1,068
---------------
75,857
---------------
UTAH - 0.6%
Ashley Valley Water & Sewer,
Escrowed to Maturity,
Callable 07/01/04 @ 102 (AMBAC) (GO)
10.900%, 01/01/10 (a) 1,500 1,929
South Jordan, Sales Tax,
Callable 08/15/11 @ 100 (AMBAC) (RB)
5.500%, 08/15/18 1,000 1,122
Utah State Housing Finance Agency,
Single Family Mortgages (FHA) (RB) (VA)
5.650%, 07/01/06 20 21
Utah State Housing Finance Agency,
Single Family Mortgages, Issue F-1,
Callable 07/01/05 @ 102 (FHA) (RB) (VA)
6.300%, 01/01/18 140 141
Utah State Housing Finance Agency,
Single Family Mortgages, Series III, Class R,
Callable 07/01/06 @ 102 (FHA) (RB) (VA)
5.950%, 07/01/08 900 969
---------------
4,182
---------------
VIRGINIA - 1.0%
Peninsula Port Authority, Partially
Pre-refunded 08/01/04 @ 102 and
08/01/08 @ 100 (RB)
7.000%, 08/01/17 (b) 2,000 2,077
Richmond Industrial Development Authority,
Government Facilities (AMBAC) (MLO)
5.000%, 07/15/18 1,845 2,040
Riverside Regional Jail Authority,
Callable 07/01/05 @ 102 (MBIA) (RB)
5.700%, 07/01/08 905 970
Riverside Regional Jail Authority,
Pre-refunded 07/01/05 @ 102 (MBIA) (RB)
5.700%, 07/01/08 (b) 1,095 1,178
Virginia State Peninsula Regional Jail Authority,
Pre-refunded 10/01/05 @ 101 (MBIA) (RB)
5.300%, 10/01/09 1,000 1,070
---------------
7,335
---------------
WASHINGTON - 4.5%
Clark County School District #37,
Vancouver (FSA) (GO)
5.250%, 12/01/14 1,515 1,739
</Table>
22
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Energy Northwest, Washington Wind Project,
Series A, Callable 01/01/07 @ 103 (RB)
5.100%, 07/01/09 $ 1,850 $ 1,971
5.200%, 07/01/10 1,950 2,069
Island County School District #206,
South Widbey, Partially
Pre-refunded 12/01/04 @ 100 (AMBAC) (GO)
5.750%, 12/01/06 (b) 700 720
King County School District #415, Kent,
Pre-refunded 06/01/04 @ 100 (AMBAC) (GO)
6.450%, 06/01/06 (b) 920 928
King County, Series B,
Pre-refunded 12/01/07 @ 102 (GO)
5.850%, 12/01/13 (b) 2,035 2,355
King County, Series B,
Pre-refunded 12/01/07 @ 102 (GO)
5.850%, 12/01/13 (b) 965 1,117
Pierce County School District #320, Sumner (GO)
6.000%, 12/01/06 665 701
Port Seattle Passenger Facility Charge,
Series B (AMBAC) (AMT) (RB)
5.000%, 12/01/07 1,000 1,094
Snohomish & Island Counties School
District #401, Stanwood (FSA) (GO) (SBG)
5.000%, 12/15/13 2,500 2,811
Snohomish County,
Callable 12/01/11 @ 100 (GO) (MBIA)
5.375%, 12/01/19 5,000 5,494
Snohomish County Housing Authority,
Callable 04/01/06 @ 100 (RB)
6.300%, 04/01/16 1,035 1,068
Spokane County School District #356,
Central Valley, Series B,
Zero Coupon Bond (FGIC) (GO)
5.030%, 12/01/14 (d) 5,690 3,661
Washington State Housing Finance,
Hearthstone Project,
Callable 01/01/05 @ 102 (RB)
6.000%, 01/01/10 810 850
Washington State Public Power Supply System,
Nuclear Project #2, Series A,
Callable 07/01/06 @ 102 (AMBAC) (RB)
5.700%, 07/01/11 1,000 1,101
Washington State, Series C (GO)
5.500%, 07/01/14 2,275 2,638
Washington State, Series S-5,
Zero Coupon Bond (FGIC) (GO)
5.830%, 01/01/16 (d) 3,000 1,787
---------------
32,104
---------------
WEST VIRGINIA - 0.3%
Brooke Pleasants & Tyler Wetzel Counties,
Single Family Mortgage,
Escrowed to Maturity (RB)
7.400%, 08/15/10 (a) 1,675 2,112
---------------
WISCONSIN - 1.9%
Door County, Series A,
Callable 09/01/11 @ 100 (FGIC) (GO)
5.125%, 09/01/16 1,720 1,890
Fond du Lac, Callable 03/01/12 @ 100 (FGIC) (GO)
3.400%, 03/01/13 1,000 995
Milwaukee (GO)
6.000%, 02/01/10 1,240 1,452
Wisconsin State Clean Water, Series 1,
Pre-refunded 06/01/05 @ 100 (RB)
5.800%, 06/01/15 (b) $ 2,915 $ 3,072
Wisconsin State Health & Educational Facilities
Authority, Aurora Health Care, Series A,
Callable 02/15/09 @ 101 (RB)
5.500%, 02/15/20 1,500 1,525
Wisconsin State Health & Educational Facilities
Authority, Marshfield Clinic, Series B (RB)
6.250%, 02/15/09 500 556
Wisconsin State Health & Educational Facilities
Authority, Marshfield Clinic, Series B,
Callable 02/15/12 @ 100 (RB)
5.500%, 02/15/13 850 908
Wisconsin State Health & Educational Facilities
Authority, Monroe Clinic (RB)
4.450%, 02/15/06 925 963
Wisconsin State Health & Educational Facilities
Authority, Southwest Health Center, Series A,
Callable 04/01/14 @ 100 (RB)
6.125%, 04/01/24 (f) 1,500 1,478
Wisconsin State Health & Educational Facilities
Authority, Wheaton Franciscan Services (RB)
5.750%, 08/15/11 645 739
---------------
13,578
---------------
WYOMING - 0.3%
Lincoln County, Pacificorp Project,
Mandatory Put 06/03/12 @ 100 (AMT) (RB)
4.125%, 11/01/25 (c) 2,250 2,224
---------------
CONVERTIBLE BONDS - 1.1%
Chicago, Series A, Convertible,
Zero Coupon Bond (GO) (MBIA)
3.489%, 01/01/16 (d) 2,000 1,585
Cook County High School District #209,
Proviso Township, Convertible,
Zero Coupon Bond (FSA) (GO)
4.210%, 12/01/16 (d) 1,000 896
Illinois Sports Facilities Authority,
Convertible, Zero Coupon Bond (AMBAC) (RB)
4.750%, 06/15/13 (d) 1,405 1,169
Illinois Sports Facilities Authority,
Convertible, Zero Coupon Bond,
Callable 06/15/15 @ 101 (AMBAC) (RB)
5.100%, 06/15/16 (d) 1,620 1,340
Metropolitan Pier & Exposition Authority,
State Sales Tax, Convertible,
Zero Coupon Bond (FGIC) (MBIA) (RB)
5.200%, 06/15/17 (d) 1,000 729
Northwest Parkway Public Highway Authority,
Convertible, Zero Coupon Bond (AMBAC) (RB)
5.250%, 06/15/15 (d) 2,750 2,170
---------------
7,889
---------------
TOTAL MUNICIPAL BONDS
(Cost $654,647) 713,178
---------------
</Table>
23
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
AFFILIATED MONEY MARKET FUND - 0.4%
First American Tax Free Obligations
Fund, Cl Z (g) 2,589,217 $ 2,589
---------------
TOTAL AFFILIATED MONEY MARKET FUND
(Cost $2,589) 2,589
---------------
TOTAL INVESTMENTS - 99.1%
(Cost $657,236) 715,767
---------------
OTHER ASSETS AND LIABILITIES, NET - 0.9% 6,564
---------------
TOTAL NET ASSETS - 100.0% $ 722,331
---------------
</Table>
(a) Escrowed to Maturity issues are usually backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(b) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(c) Variable Rate Security - The rate shown is the rate in effect as of March
31, 2004.
(d) The rate shown is the effective yield at the time of purchase.
(e) Security sold within the terms of a private placement memorandum, exempt
from registration under Rule 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"qualified institutional buyers." These securities have been determined to
be liquid under the guidelines established by the Funds' board of
directors. As of March 31, 2004, the value of these investments was
$11,655,645 or 1.6% of total net assets.
(f) Security purchased on a when-issued basis. On March 31, 2004, the total
cost of investments purchased on a when-issued basis was $1,495,710. See
note 2 in Notes to Financial Statements.
(g) Investment in affiliated security. This money market fund is advised by
U.S. Bancorp Asset Management, Inc., which also serves as advisor for this
Fund. See note 3 in Notes to Financial Statements.
ABAG - Association of Bay Area Governments
ACA - American Capital Access
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market
value of securities subject to the AMT was $39,386,575, which represents
5.5% of net assets.
Cl - Class
CMI - California Mortgage Insurance Program
COP - Certificate of Participation
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
GO - General Obligation
GTY - Guaranty
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
MQSBLF - Michigan Qualified School Board Loan Fund Program
MSDCEP - Minnesota School District Credit Enhancement Program
PSFG - Permanent School Fund Guarantee
RAAI - Radian Asset Assurance Inc.
RB - Revenue Bond
SBG - School Board Guaranty
STAID - State Aid Withholding
VA - Veterans Administration
VRDO - Variable Rate Demand Obligation. Floating or variable rate obligation
maturing in more than one year. The interest rate, which is based on
specific, or an index of, market interest rates, is subject to change
periodically and is the effective rate on March 31, 2004. This instrument
may also have a demand feature which allows the recovery of principal at
any time, or at specified intervals not exceeding one year, on up to 30
days' notice. Maturity date shown represents final maturity.
XLCA - XL Capital Assurance Inc.
The accompanying notes are an integral part of the financial statements.
24
<Page>
MINNESOTA INTERMEDIATE TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 97.9%
REVENUE BONDS - 50.5%
BUILDING - 0.2%
Minnesota State Retirement Systems Building,
Callable 06/01/10 @ 100
5.450%, 06/01/12 $ 550 $ 624
---------------
ECONOMIC DEVELOPMENT - 1.6%
Minnesota State Agricultural & Economic
Development Board, Small Business
Development, Series B (AMT)
6.500%, 08/01/08 1,335 1,472
Minnesota State Agricultural & Economic
Development Board, Small Business
Development, Series B,
Pre-refunded 08/01/04 @ 100 (AMT)
5.500%, 08/01/10 (a) 1,525 1,545
Minnesota State Agricultural & Economic
Development Board, Small Business
Development, Series C (AMT)
6.625%, 08/01/08 1,210 1,341
---------------
4,358
---------------
EDUCATION - 4.1%
Minneapolis, The Blake School Project,
Callable 09/01/11 @ 100
5.000%, 09/01/12 445 485
Minnesota State Higher Education Facilities
Authority, Augsburg College, Series 4
4.500%, 10/01/06 505 534
4.850%, 10/01/09 520 564
Minnesota State Higher Education Facilities
Authority, Augsburg College, Series 4,
Callable 10/01/09 @ 100
5.000%, 10/01/11 500 532
5.000%, 10/01/12 500 526
Minnesota State Higher Education Facilities
Authority, Carleton College, Series 3-L1,
Callable 05/01/06 @ 100
5.750%, 11/01/12 1,375 1,481
Minnesota State Higher Education Facilities
Authority, Minneapolis College of Art and Design
5.000%, 05/01/11 250 268
Minnesota State Higher Education Facilities
Authority, St. Benedict College,
Callable 03/01/07 @ 100
4.875%, 03/01/08 1,000 1,054
5.100%, 03/01/11 2,885 2,987
Minnesota State Higher Education Facilities
Authority, St. Catherine College, Series 5-N1,
Callable 10/01/12 @ 100
5.250%, 10/01/22 1,500 1,552
Minnesota State Higher Education Facilities
Authority, St. John's University, Series 5 (MBIA)
5.000%, 10/01/11 255 289
Minnesota State Higher Education Facilities
Authority, St. John's University, Series 5,
Callable 10/01/11 @ 100 (MBIA)
5.000%, 10/01/12 480 524
Minnesota State Higher Education Facilities
Authority, University of St. Thomas, Series 4,
Callable 04/01/08 @ 100
5.250%, 04/01/12 385 410
---------------
11,206
---------------
HEALTHCARE - 11.9%
Cuyuna Range Hospital District, Series A,
Callable 06/01/07 @ 102
5.500%, 06/01/10 $ 435 $ 440
5.650%, 06/01/12 940 951
Duluth Economic Development Authority,
Benedictine Health System,
Callable 02/15/14 @ 100
5.375%, 02/15/22 2,045 2,151
Duluth Economic Development Authority,
The Duluth Clinic, Escrowed to Maturity,
Callable 04/01/04 @ 101 (AMBAC)
6.100%, 11/01/04 (b) 250 257
Glencoe Health Care Facilities,
Callable 04/01/11 @ 101
7.400%, 04/01/21 1,000 1,089
Hastings Health Care Facility,
Regina Medical Center,
Callable 09/15/08 @ 100 (ACA)
5.000%, 09/15/13 500 521
Minneapolis & St. Paul Housing &
Redevelopment Authority, Healthspan,
Series A, Callable 04/01/04 @ 102 (AMBAC)
5.000%, 11/15/13 1,000 1,023
Minneapolis Healthcare System,
Allina Health System, Series A,
Callable 11/15/12 @ 100
6.000%, 11/15/23 2,500 2,739
5.750%, 11/15/32 1,300 1,382
Minneapolis Healthcare System,
Fairview Health Services, Series A
5.000%, 05/15/12 605 653
Minneapolis Healthcare System,
Fairview Health Services, Series B (MBIA)
4.500%, 05/15/11 1,170 1,270
Minnesota Agricultural & Economic
Development Board, Benedictine Health,
Series A (MBIA)
5.000%, 02/15/10 3,815 4,250
Minnesota Agricultural & Economic
Development Board,
Evangelical Lutheran Project
5.500%, 02/01/11 280 307
5.500%, 02/01/12 200 219
Minnesota Agricultural & Economic
Development Board, Evangelical Lutheran
Project, Callable 02/01/12 @ 101
5.500%, 02/01/15 730 777
Minnesota Agricultural & Economic
Development Board, Fairview Hospital Project,
Series A, Callable 11/15/07 @ 102 (MBIA)
5.400%, 11/15/08 1,000 1,123
5.500%, 11/15/17 1,500 1,668
5.750%, 11/15/26 500 556
Monticello, Big Lake Community Hospital,
Series C, Callable 12/01/12 @ 100
5.750%, 12/01/15 2,320 2,406
New Hope Housing & Health Care Facilities,
Masonic Home North Ridge
5.100%, 03/01/05 550 561
5.200%, 03/01/06 645 669
5.300%, 03/01/07 685 720
</Table>
25
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
New Hope Housing & Health Care Facilities,
Masonic Home North Ridge,
Callable 03/01/09 @ 102
5.500%, 03/01/10 $ 500 $ 529
Plymouth Health Facilities, Westhealth Project,
Series A, Callable 06/01/04 @ 102 (FSA)
6.200%, 06/01/11 1,360 1,397
Rochester, St. Mary's Hospital, Escrowed to
Maturity, Callable 04/01/04 @ 100
5.750%, 10/01/07 (b) 1,095 1,176
Sauk Rapids Health Care & Housing Facilities,
Good Shepherd Lutheran Home,
Callable 01/01/12 @ 101
5.750%, 01/01/21 1,175 1,189
St. Cloud Health Care (FSA)
5.500%, 05/01/07 500 554
5.500%, 05/01/08 1,450 1,632
---------------
32,209
---------------
HOUSING - 3.0%
Dakota County Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 04/01/04 @ 102 (AMT) (FNMA)
6.250%, 10/01/04 35 35
Dakota County Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 10/01/07 @ 101.50 (AMT)
(FNMA) (GNMA)
5.125%, 10/01/20 431 431
Hennepin County Housing & Redevelopment
Authority, Loring Park Apartments,
Callable 08/15/06 @ 102.50,
Mandatory Put 02/15/09 @ 100 (AMT) (FNMA)
3.050%, 06/15/34 (c) 1,250 1,240
Minneapolis, Residual Interest-Convertible
Capital Appreciation, Callable 10/01/05 @ 100
7.000%, 10/01/12 1,520 1,576
Minnesota State Housing Finance Agency,
Rental Housing, Series D (MBIA)
5.150%, 08/01/04 595 601
Minnesota State Housing Finance Agency,
Rental Housing, Series D,
Callable 02/01/05 @ 102 (MBIA)
5.450%, 08/01/07 1,830 1,905
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series B,
Callable 07/01/09 @ 100 (AMT)
5.550%, 07/01/24 645 653
Moorhead Economic Development Authority,
Eventide Senior Housing, Series B,
Callable 06/01/04 @ 102
5.750%, 06/01/16 1,360 1,370
South St. Paul Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 04/01/04 @ 102 (FNMA)
5.100%, 09/01/07 170 174
Vadnais Heights, Single Family Mortgages
5.500%, 11/01/04 25 25
6.000%, 11/01/09 25 25
---------------
8,035
---------------
LEASE REVENUE - 1.0%
St. Paul Port Authority, Office Building,
Callable 12/01/12 @ 100 (MLO)
5.000%, 12/01/19 2,415 2,594
---------------
MISCELLANEOUS - 1.5%
Childrens Trust Fund, Puerto Rico,
Tobacco Settlement
4.000%, 05/15/12 $ 500 $ 478
St. Paul Port Authority, Hotel Facilities,
Radisson Kellogg Project, Series 2
6.700%, 08/01/07 1,800 1,771
St. Paul Port Authority, Hotel Facilities,
Radisson Kellogg Project, Series 2,
Callable 08/01/08 @ 103
7.375%, 08/01/10 1,685 1,672
---------------
3,921
---------------
POLLUTION CONTROL - 2.0%
Minnesota State Public Facilities Authority,
Water Pollution Control,
Callable 03/01/07 @ 100
5.000%, 03/01/09 2,000 2,158
Minnesota State Public Facilities Authority,
Water Pollution Control, Series A,
Callable 03/01/08 @ 100
4.500%, 03/01/10 2,100 2,241
Minnesota State Public Facilities Authority,
Water Pollution Control, Series A,
Callable 03/01/10 @ 100
4.000%, 03/01/11 1,000 1,059
---------------
5,458
---------------
TAX REVENUE - 4.0%
Bloomington Port Authority,
Mall of America Project, Series A (FSA)
4.900%, 02/01/09 1,000 1,113
Minneapolis Community Development Agency,
Series G-3, Callable 12/01/11 @ 100
5.350%, 12/01/21 1,000 1,055
Minneapolis, St. Anthony Falls Project,
Callable 03/01/12 @ 102
5.000%, 02/01/17 1,040 1,012
St. Paul Housing & Redevelopment Authority,
Callable 08/01/06 @ 102.50 (AMBAC)
6.450%, 02/01/08 840 948
St. Paul Housing & Redevelopment Authority,
Downtown & Seventh Place Project,
Escrowed to Maturity,
Callable 04/01/04 @ 101 (AMBAC)
5.200%, 09/01/04 (b) 3,000 3,010
5.350%, 09/01/07 (b) 1,500 1,505
St. Paul Port Authority, Energy Park,
Tax Increment (FSA)
5.000%, 02/01/08 2,100 2,291
---------------
10,934
---------------
TRANSPORTATION - 7.7%
Minneapolis & St. Paul Metropolitan Airports
Commission, Series A,
Callable 01/01/13 @ 100 (MBIA)
5.000%, 01/01/20 2,200 2,348
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B (AMBAC) (AMT)
5.500%, 01/01/07 2,140 2,332
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B (AMT) (FGIC)
5.750%, 01/01/10 2,880 3,255
</Table>
26
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B,
Callable 01/01/08 @ 101 (AMBAC) (AMT)
5.500%, 01/01/09 $ 2,500 $ 2,750
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B,
Callable 01/01/09 @ 101 (AMT) (FGIC)
5.625%, 01/01/14 1,000 1,079
Minneapolis & St. Paul Metropolitan Airports
Commission, Series C,
Callable 01/01/11 @ 100 (FGIC)
5.125%, 01/01/20 3,095 3,311
Minnesota Public Facilities Authority
Transportation, Callable 03/01/10 @ 100
5.000%, 03/01/12 970 1,067
Puerto Rico Commonwealth,
Highway Transportation Authority, Series AA
5.000%, 07/01/07 1,000 1,093
Puerto Rico Commonwealth,
Highway Transportation Authority, Series H,
Mandatory Put 07/01/10 @ 100,
Callable 07/01/10 @ 100 (AMBAC)
5.000%, 07/01/35 (c) 2,000 2,254
Puerto Rico Commonwealth, Highway
Transportation Authority, Series X (MBIA)
5.500%, 07/01/13 1,250 1,470
---------------
20,959
---------------
UTILITIES - 13.5%
Anoka County Resource Recovery,
Northern States Power
4.350%, 12/01/04 150 152
4.400%, 12/01/05 2,000 2,065
4.500%, 12/01/07 300 313
Chaska Electric, Series A
5.500%, 10/01/06 610 663
5.550%, 10/01/07 645 716
5.600%, 10/01/08 680 763
5.650%, 10/01/09 720 817
5.650%, 10/01/10 760 868
Chaska Electric, Series A,
Callable 10/01/10 @ 100
5.400%, 10/01/11 805 894
5.500%, 10/01/12 845 930
Minnesota State Public Facilities Authority,
Drinking Water, Series A
3.750%, 03/01/13 405 419
Minnesota State Public Facilities Authority,
Drinking Water, Series B,
Callable 03/01/09 @ 100
5.125%, 03/01/19 2,000 2,171
Northern Minnesota Municipal Power Agency,
Electric System (FSA)
5.500%, 01/01/07 2,000 2,199
5.500%, 01/01/08 2,090 2,344
Princeton Public Utility System,
Callable 04/01/12 @ 100
4.100%, 04/01/15 450 451
Rochester Electric Utility,
Callable 12/01/10 @ 100
5.000%, 12/01/16 1,150 1,225
Southern Minnesota Municipal Power Agency,
Series A (AMBAC)
5.250%, 01/01/14 $ 3,415 $ 3,902
Southern Minnesota Municipal Power Agency,
Series A, Callable 01/01/09 @ 101 (AMBAC)
5.000%, 01/01/11 1,270 1,402
Southern Minnesota Municipal Power Agency,
Series A, Escrowed to Maturity,
Callable 04/01/04 @ 102 (FGIC)
5.000%, 01/01/06 (b) 995 1,055
Southern Minnesota Municipal Power Agency,
Series A, Zero Coupon Bond (MBIA)
5.257%, 01/01/20 (d) 3,500 1,713
5.275%, 01/01/21 (d) 5,000 2,308
Western Minnesota Municipal Power Agency,
Series A, Callable 01/01/06 @ 102 (AMBAC)
5.500%, 01/01/11 5,000 5,410
5.500%, 01/01/13 2,000 2,164
Western Minnesota Municipal Power Agency,
Series A, Callable 01/01/11 @ 100 (AMBAC)
5.500%, 01/01/12 1,360 1,548
---------------
36,492
---------------
TOTAL REVENUE BONDS 136,790
---------------
GENERAL OBLIGATIONS - 44.3%
Anoka County Capital Improvements, Series B
4.550%, 01/01/11 1,960 2,156
Anoka-Hennepin Independent School District #11,
Callable 02/01/11 @ 100 (MSDCEP)
5.000%, 02/01/14 2,000 2,188
Anoka-Hennepin Independent School District #11,
Series A (MSDCEP)
5.000%, 02/01/09 1,375 1,537
Anoka-Hennepin Independent School District #11,
Series A, Callable 02/01/10 @ 100 (MSDCEP)
5.300%, 02/01/12 1,000 1,138
5.375%, 02/01/13 600 685
Anoka-Hennepin Independent School District #11,
Series A, Callable 02/01/11 @ 100 (MSDCEP)
5.000%, 02/01/12 2,845 3,163
Apple Valley
2.000%, 12/01/07 425 427
Apple Valley, Callable 12/01/12 @ 100
4.000%, 12/01/15 1,000 1,021
Becker Tax Increment, Series D,
Callable 08/01/04 @ 100 (AMT) (MBIA)
6.000%, 08/01/07 3,955 4,002
Bloomington Independent School District #271,
Series B, Callable 02/01/10 @ 100 (MSDCEP)
5.250%, 02/01/11 1,000 1,123
Buffalo Independent School District #877,
Series B (FSA) (MSDCEP)
4.500%, 02/01/13 325 355
Burnsville Independent School District #191,
Series A (MSDCEP)
5.000%, 02/01/08 300 331
Burnsville Independent School District #191,
Series A, Callable 02/01/08 @ 100 (MSDCEP)
5.000%, 02/01/09 1,225 1,339
Centennial Independent School District #12,
Series A, Callable 02/01/12 @ 100
(FSA) (MSDCEP)
5.000%, 02/01/14 1,040 1,142
</Table>
27
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Chaska Independent School District #112,
Series A (MSDCEP)
4.800%, 02/01/10 $ 1,120 $ 1,245
Dakota County Capital Improvements, Series C
4.850%, 02/01/10 1,000 1,116
Duluth Independent School District #709,
Callable 02/01/09 @ 100 (FSA) (MSDCEP)
5.000%, 02/01/16 635 687
Eden Prairie Water & Sewer, Series A,
Zero Coupon Bond
4.459%, 12/01/06 (d) 2,090 1,988
Elk River Independent School District #728,
Series A, Callable 02/01/11 @ 100
(MBIA) (MSDCEP)
5.000%, 02/01/18 1,000 1,072
Faribault Independent School District #656,
Callable 06/01/08 @ 100 (MSDCEP)
4.750%, 06/01/15 1,100 1,168
Forest Lake Independent School District #831,
Series A, Callable 02/01/08 @ 100 (MSDCEP)
5.000%, 02/01/09 1,115 1,219
Fridley Independent School District #14,
Callable 02/01/05 @ 100 (FSA) (MSDCEP)
5.350%, 02/01/26 5,000 5,114
Hastings Independent School District #200,
Series A, Callable 02/01/08 @ 100 (MSDCEP)
5.000%, 02/01/11 1,095 1,190
Lakeville Independent School District #194,
Callable 02/01/09 @ 100 (MSDCEP)
5.000%, 02/01/16 2,000 2,156
Lakeville Independent School District #194,
Series A, Callable 02/01/08 @ 100 (MSDCEP)
5.125%, 02/01/22 1,000 1,051
Lakeville Independent School District #194,
Series A, Callable 02/01/13 @ 100
(FGIC) (MSDCEP)
5.000%, 02/01/22 2,435 2,579
Marshall Independent School District #413,
Series A (FSA) (MSDCEP)
4.000%, 02/01/11 785 839
Minneapolis & St. Paul Metropolitan Council,
Waste Water Treatment, Series A,
Callable 03/01/11 @ 100
5.000%, 03/01/13 1,890 2,143
Minneapolis School District #1 (MSDCEP)
4.500%, 02/01/08 1,450 1,576
Minneapolis School District #1,
Callable 02/01/06 @ 100 (MSDCEP)
5.000%, 02/01/07 1,025 1,086
5.000%, 02/01/07 1,000 1,060
Minneapolis, Callable 12/01/11 @ 100
5.000%, 12/01/12 3,600 4,039
Minneapolis, Series B, Callable 09/01/05 @ 100
5.050%, 03/01/06 6,000 6,308
Minnesota State, Callable 08/01/07 @ 100
4.800%, 08/01/11 2,010 2,168
4.850%, 08/01/12 4,420 4,775
Moorhead Independent School
District #152 (MSDCEP)
5.000%, 04/01/12 1,220 1,373
Moorhead Independent School District #152,
Callable 04/01/12 @ 100 (FGIC) (MSDCEP)
5.000%, 04/01/15 3,450 3,778
5.000%, 04/01/16 2,510 2,729
Mounds View Independent School District #621,
Series A (MSDCEP)
5.250%, 02/01/10 $ 1,230 $ 1,399
Mounds View Independent School District #621,
Series A, Callable 02/01/11 @ 100 (MSDCEP)
5.250%, 02/01/12 1,000 1,121
5.350%, 02/01/16 1,000 1,108
Mounds View Independent School District #621,
Series A, Callable 02/01/12 @ 100
(MBIA) (MSDCEP)
5.000%, 02/01/18 2,340 2,512
5.000%, 02/01/19 2,565 2,736
Northfield Independent School District #659,
Callable 02/01/11 @ 100 (MSDCEP)
4.600%, 02/01/13 1,100 1,189
5.000%, 02/01/15 1,295 1,415
Pequot Lakes Independent School District #186,
Callable 02/01/12 @ 100 (FGIC) (MSDCEP)
5.125%, 02/01/18 500 541
Perham, Callable 05/01/11 @ 100 (AMT)
5.850%, 05/01/15 1,205 1,279
Pipestone-Jasper Independent School
District #2689, Callable 03/01/09 @ 100
(FGIC) (MSDCEP)
5.400%, 03/01/13 1,095 1,227
Puerto Rico Commonwealth (MBIA)
6.000%, 07/01/14 1,605 1,964
Puerto Rico Commonwealth, Series A (XLCA)
5.500%, 07/01/17 1,000 1,168
Puerto Rico Commonwealth, Series C,
Mandatory Put 07/01/08 @ 100
5.000%, 07/01/18 (c) 1,500 1,643
Robbinsdale Independent School
District #281 (MSDCEP)
5.000%, 02/01/08 1,000 1,104
Robbinsdale Independent School District #281,
Callable 02/01/09 @ 100 (MBIA) (MSDCEP)
5.000%, 02/01/16 1,000 1,082
Robbinsdale Independent School District #281,
Callable 02/01/12 @ 100 (FSA) (MSDCEP)
5.000%, 02/01/19 1,160 1,239
5.000%, 02/01/20 1,215 1,290
Rochester Independent School District #535,
Series A, Callable 02/01/11 @ 100 (MSDCEP)
5.000%, 02/01/15 1,595 1,736
Rosemount Independent School District #196,
Series A, Crossover Refunded 06/01/04 @ 100
(MSDCEP)
5.625%, 06/01/07 (e) 1,400 1,410
Sauk Rapids Independent School District #47,
Series B, Zero Coupon Bond,
Callable 02/01/11 @ 89.37 (FSA) (MSDCEP)
5.700%, 02/01/13 (d) 1,055 728
Sauk Rapids Independent School District #47,
Series B, Zero Coupon Bond,
Callable 02/01/11 @ 94.63 (FSA)
5.753%, 02/01/12 (d) 1,790 1,322
Savage, Series A (FGIC)
5.200%, 02/01/05 1,000 1,034
Savage, Series A, Callable 02/01/06 @ 100 (FGIC)
5.350%, 02/01/07 1,000 1,066
5.500%, 02/01/08 1,000 1,069
</Table>
The accompanying notes are an integral part of the financial statements.
28
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
South Washington County, Independent School
District #833, Series A (MSDCEP)
5.500%, 02/01/09 $ 500 $ 569
South Washington County, Independent School
District #833, Series B,
Callable 02/01/12 @ 100 (FSA) (MSDCEP)
5.000%, 02/01/15 1,030 1,126
St. Louis Park Independent School District #283,
Callable 02/01/09 @ 100 (MSDCEP)
5.250%, 02/01/10 1,500 1,671
5.600%, 02/01/15 725 809
St. Michael Independent School District #885,
Callable 02/01/12 @ 100 (FSA) (MSDCEP)
5.000%, 02/01/14 1,690 1,856
5.000%, 02/01/17 1,000 1,079
St. Paul, Series A, Callable 03/01/09 @ 100
5.000%, 03/01/10 1,180 1,304
St. Paul Independent School District #625,
Series C (FGIC) (MSDCEP)
4.000%, 02/01/14 410 428
Stillwater Independent School District #834,
Callable 02/01/09 @ 100 (MSDCEP)
4.750%, 02/01/11 2,140 2,311
West St. Paul Independent School District #197,
Zero Coupon Bond (MBIA) (MSDCEP)
5.896%, 02/01/05 (d) 2,000 1,982
Willmar Independent School District #347,
Series A, Callable 02/01/06 @ 100 (MSDCEP)
5.150%, 02/01/09 1,160 1,228
---------------
TOTAL GENERAL OBLIGATIONS 119,811
---------------
CERTIFICATES OF PARTICIPATION - 3.1%
Eden Prairie Housing & Redevelopment Authority,
Series A, Callable 12/01/10 @ 100 (MLO)
5.000%, 12/01/11 255 286
Hennepin County (MLO)
4.650%, 11/15/08 1,000 1,105
Hennepin County, Callable 11/15/08 @ 100 (MLO)
5.375%, 11/15/09 2,280 2,553
Minneapolis Special School District #1, Series A,
Pre-refunded 02/01/06 @ 100 (MBIA) (MLO)
5.900%, 02/01/11 (a) 2,150 2,320
St. Paul Independent School District #625,
Series E, Callable 02/01/11 @ 100
(MBIA) (MLO) (MSDCEP)
4.200%, 02/01/15 500 515
Stearns County Housing & Redevelopment
Authority, Series A,
Callable 02/01/08 @ 100 (FSA) (MLO)
4.950%, 02/01/09 1,540 1,679
---------------
TOTAL CERTIFICATES OF PARTICIPATION 8,458
---------------
TOTAL MUNICIPAL BONDS
(Cost $247,387) 265,059
---------------
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
MONEY MARKET FUND - 1.0%
Federated Minnesota Municipal Cash Trust 2,757,562 $ 2,758
---------------
TOTAL MONEY MARKET FUND
(Cost $2,758) 2,758
---------------
TOTAL INVESTMENTS - 98.9%
(Cost $250,145) 267,817
---------------
OTHER ASSETS AND LIABILITIES, NET - 1.1% 3,014
---------------
TOTAL NET ASSETS - 100.0% $ 270,831
---------------
</Table>
(a) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) Escrowed to Maturity issues are usually backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(c) Variable Rate Security - The rate shown is the rate in effect as of March
31, 2004.
(d) The rate shown is the effective yield at the time of purchase.
(e) Crossover Refunded securities are backed by the credit of the refunding
issuer. These bonds mature at the call date and price indicated.
ACA - American Capital Access
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market
value of securities subject to the AMT was $21,413,500, which represents
7.9% of net assets.
FGIC - Financial Guaranty Insurance Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
MSDCEP - Minnesota School District Credit Enhancement Program
XLCA - XL Capital Assurance Inc.
29
<Page>
MINNESOTA TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.4%
REVENUE BONDS - 69.1%
ECONOMIC DEVELOPMENT - 2.3%
Minnesota Agricultural & Economic Development
Board, Small Business Development, Series B,
Callable 08/01/08 @ 102 (AMT)
7.250%, 08/01/20 $ 1,000 $ 1,063
Minnesota Agricultural & Economic Development
Board, Small Business Development, Series C,
Callable 08/01/08 @ 102 (AMT)
7.250%, 08/01/20 1,385 1,369
Minnesota Agricultural & Economic Development
Board, Small Business Development, Series D,
Callable 08/01/08 @ 102 (AMT)
7.250%, 08/01/20 1,120 1,126
Minnesota Agriculture & Economic Development
Board, Minnesota Small Business Program,
Series A, Callable 08/01/10 @ 100 (AMT)
5.550%, 08/01/16 500 513
---------------
4,071
---------------
EDUCATION - 6.4%
Golden Valley, The Breck School,
Callable 10/01/09 @ 100
5.750%, 10/01/14 1,000 1,136
Minneapolis Gateway Project, Series A,
Callable 12/01/07 @ 100
5.250%, 12/01/17 1,000 1,090
Minneapolis, The Blake School Project,
Callable 09/01/21 @ 100
5.450%, 09/01/21 2,000 2,134
Minnesota State Higher Education Facilities
Authority, Augsburg College, Series 4-F1,
Callable 05/01/06 @ 102
6.250%, 05/01/23 1,500 1,571
Minnesota State Higher Education Facilities
Authority, Carleton College,
Callable 11/01/07 @ 100
5.400%, 11/01/15 1,500 1,642
Minnesota State Higher Education Facilities
Authority, Carleton College, Series 3-L1,
Callable 05/01/06 @ 100
5.750%, 11/01/12 1,050 1,131
Minnesota State Higher Education Facilities
Authority, College of Art & Design, Series 5-D,
Callable 05/01/10 @ 100
6.625%, 05/01/20 1,000 1,089
Minnesota State Higher Education Facilities
Authority, College of St. Benedict, Series 3-W,
Callable 04/01/04 @ 100
6.200%, 03/01/14 460 461
6.375%, 03/01/20 140 140
Minnesota State Higher Education Facilities
Authority, Vermilion Community College,
Series 3-T, Callable 07/01/04 @ 100
5.750%, 01/01/13 575 589
University of Minnesota, Series A
5.500%, 07/01/21 500 578
---------------
11,561
---------------
HEALTHCARE - 22.2%
Bemidji Hospital Facilities,
North Country Health Services,
Callable 09/01/06 @ 102
5.625%, 09/01/15 $ 1,600 $ 1,694
Bemidji Hospital Facilities,
North Country Health Services,
Callable 09/01/12 @ 100 (RAAI)
5.000%, 09/01/24 500 512
Chisago Health Facilities Authority,
Callable 07/01/05 @ 102
7.300%, 07/01/25 400 415
Cuyuna Range Hospital District, Series A,
Callable 06/01/07 @ 102
6.000%, 06/01/29 3,000 2,887
Duluth Economic Development Authority,
Benedictine Health System,
Callable 02/15/14 @ 100
5.250%, 02/15/28 1,000 1,026
5.250%, 02/15/33 2,500 2,554
Fergus Falls Health Care Facilities Authority,
Lake Region Hospital, Long Term Care
Facilities Project, Callable 12/01/05 @ 102
6.500%, 12/01/25 2,000 2,084
Fergus Falls Health Care Facilities Authority,
Series A, Callable 11/01/04 @ 102
7.000%, 11/01/19 1,000 992
Glencoe Health Care Services Facilities Project,
Callable 04/01/11 @ 101
7.500%, 04/01/31 1,700 1,839
Glencoe Hospital Board,
Pre-refunded 08/01/04 @ 102
6.750%, 04/01/16 (a) 1,100 1,142
Golden Valley, Covenant Retirement
Communities, Series A,
Callable 12/01/09 @ 101
5.500%, 12/01/29 1,750 1,787
Marshall Minnesota Medical Center,
Weiner Memorial Medical Center Project,
Series A, Callable 11/01/13 @ 100
5.250%, 11/01/16 305 321
5.850%, 11/01/23 875 920
Minneapolis & St. Paul Housing & Redevelopment
Authority, Series A,
Callable 08/15/05 @ 102 (FSA)
5.600%, 08/15/12 250 268
Minneapolis Healthcare System,
Allina Health System, Series A,
Callable 11/15/12 @ 100
6.000%, 11/15/23 1,500 1,644
5.750%, 11/15/32 2,400 2,551
Minnesota Agricultural & Economic Development
Board, Benedictine Health, Series A,
Callable 02/15/10 @ 101 (MBIA)
5.250%, 02/15/15 2,000 2,196
Minnesota Agricultural & Economic Development
Board, Fairview Hospital Project, Series A,
Callable 11/15/07 @ 102 (MBIA)
5.500%, 11/15/11 500 561
5.500%, 11/15/17 1,000 1,112
Minnesota Agricultural & Economic Development
Board, Health Care System, Series A,
Callable 11/15/10 @ 101
6.375%, 11/15/29 4,000 4,388
</Table>
The accompanying notes are an integral part of the financial statements.
30
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Monticello, Big Lake Community Hospital,
Series A, Callable 12/01/09 @ 100
5.750%, 12/01/19 $ 1,000 $ 1,014
Monticello, Big Lake Community Hospital,
Series C, Callable 12/01/12 @ 100
6.200%, 12/01/22 1,000 1,049
Moorhead Economic Development Authority,
Series B, Callable 06/01/04 @ 102
6.000%, 06/01/29 1,900 1,907
New Hope Housing & Healthcare Facilities
Authority, Masonic Home North Ridge,
Callable 03/01/09 @ 102
5.750%, 03/01/15 1,600 1,635
Olmstead County, Hiawatha Homes Project,
Callable 04/01/04 @ 102
6.500%, 07/01/16 170 164
Sauk Rapids Health Care & Housing Facilities,
Good Shepherd Lutheran Home,
Callable 01/01/12 @ 101
6.000%, 01/01/34 900 909
St. Louis Park Health Care Facilities,
Park Nicollet Health Services, Series B,
Callable 07/01/14 @ 100
5.500%, 07/01/25 2,000 2,110
St. Paul Housing & Redevelopment Authority,
Callable 05/15/09 @ 100
5.250%, 05/15/18 500 512
---------------
40,193
---------------
HOUSING - 11.0%
Austin Housing & Redevelopment Authority,
Series A, Callable 01/01/06 @ 102
7.250%, 01/01/26 500 503
Coon Rapids Multifamily Housing,
Margaret Place, Callable 11/01/07 @ 102
6.250%, 05/01/18 500 465
Dakota County Community Development Agency,
Multifamily Housing, Ebenezer Ridges Project,
Callable 04/20/11 @ 102 (GNMA)
5.900%, 04/20/42 2,000 2,144
Eden Prairie Multifamily Housing,
Callable 01/20/08 @ 102 (GNMA)
5.500%, 01/20/18 500 529
Eden Prairie Multifamily Housing,
Parkway Apartments Project,
Series A, Callable 02/20/07 @ 104
5.700%, 08/20/22 1,000 1,063
Hennepin County Housing & Redevelopment
Authority, Loring Park Apartments,
Callable 08/15/06 @ 102.50,
Mandatory Put 02/15/09 @ 100 (AMT) (FNMA)
3.050%, 06/15/34 (b) 2,000 1,984
Hopkins Elderly Housing, Series A,
Callable 11/20/07 @ 102 (GNMA)
5.600%, 11/20/17 500 529
Hopkins Multifamily Housing,
Renaissance Project, Callable 04/01/07 @ 102
6.250%, 04/01/15 500 530
Minnesota State Housing Finance Agency,
Residential Housing, Series B,
Callable 07/01/11 @ 100 (AMT)
5.650%, 07/01/33 1,350 1,423
Minnesota State Housing Finance Agency,
Residential Housing, Series B-1-RMK,
Callable 07/01/11 @ 100 (AMT)
5.350%, 07/01/33 $ 1,410 $ 1,461
Minnesota State Housing Finance Agency,
Residential Housing, Series F,
Callable 07/01/11 @ 100 (AMT)
5.400%, 07/01/30 3,175 3,318
Minnesota State Housing Finance Agency,
Series A, Callable 08/01/11 @ 100
3.850%, 02/01/13 1,455 1,494
Minnesota State Housing Finance Agency,
Single Family Mortgage, Series C,
Callable 07/01/09 @ 100 (AMT)
6.100%, 07/01/30 665 682
St. Anthony Housing & Redevelopment Authority,
Callable 05/20/06 @ 102 (FHA) (GNMA)
6.250%, 11/20/25 1,500 1,648
St. Louis Park, Multifamily Housing,
Callable 11/01/08 @ 102 (FHA) (GNMA)
5.250%, 11/01/20 500 523
St. Louis Park, Multifamily Housing,
Callable 12/01/05 @ 102 (FHA)
6.250%, 12/01/28 500 519
White Bear Lake, Lake Square Housing,
Series A, Callable 02/01/07 @ 102 (FHA)
6.000%, 08/01/20 1,020 1,074
---------------
19,889
---------------
IMPROVEMENTS - 4.4%
Minnesota State Retirement Systems Building,
Callable 06/01/10 @ 100
5.875%, 06/01/27 7,000 8,013
---------------
INDUSTRIAL DEVELOPMENT - 0.7%
Little Canada Commercial Development,
Callable 04/01/04 @ 101 (MLO)
7.100%, 04/01/13 1,340 1,348
---------------
LEASE REVENUE - 2.5%
New Brighton Economic Development Authority,
Public Safety Facility, Leasing Project, Series A,
Callable 02/01/10 @ 100
4.900%, 02/01/15 850 889
5.000%, 02/01/16 895 936
5.100%, 02/01/17 900 941
St. Paul Port Authority,
Office Building at Robnert St.-3-11
4.000%, 12/01/13 1,695 1,783
---------------
4,549
---------------
RECREATIONAL FACILITY AUTHORITY - 2.2%
Moorhead, Golf Course, Series B,
Callable 12/01/08 @ 100
5.875%, 12/01/21 2,000 2,042
St. Paul Port Authority,
Radisson Kellogg Project, Series 2,
Callable 08/01/08 @ 103
7.375%, 08/01/29 2,000 2,040
---------------
4,082
---------------
TAX REVENUE - 2.5%
Duluth Economic Development Authority
8.000%, 08/01/08 220 235
</Table>
31
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Minneapolis Community Development,
Series A, Zero Coupon Bond (MBIA)
7.125%, 09/01/04 (c) $ 500 $ 498
Minneapolis Community Development,
Series G-3, Callable 12/01/11 @ 100
5.450%, 12/01/31 3,250 3,411
Minneapolis, St. Anthony Falls Project,
Callable 03/01/12 @ 102
5.750%, 02/01/27 300 294
---------------
4,438
---------------
TRANSPORTATION - 3.0%
Minneapolis & St. Paul Metropolitan
Airports Commission,
Callable 01/01/11 @ 100 (AMT) (FGIC)
5.250%, 01/01/21 2,000 2,088
Minneapolis & St. Paul Metropolitan
Airports Commission, Series A,
Callable 01/01/10 @ 101 (FGIC)
5.750%, 01/01/32 3,000 3,384
---------------
5,472
---------------
UTILITIES - 11.9%
Chaska Electric, Series A,
Callable 10/01/10 @ 100
6.100%, 10/01/30 5,000 5,367
Southern Minnesota Municipal Power Agency,
Series A (MBIA)
5.000%, 01/01/09 3,000 3,347
5.000%, 01/01/10 1,000 1,122
Southern Minnesota Municipal Power Agency,
Series A, Zero Coupon Bond (MBIA)
6.650%, 01/01/19 (c) 4,000 2,063
6.700%, 01/01/24 (c) 5,000 1,941
5.800%, 01/01/25 (c) 2,000 741
5.600%, 01/01/26 (c) 8,000 2,821
5.151%, 01/01/27 (c) 3,000 1,004
Western Minnesota Municipal Power Agency,
Callable 01/01/11 @ 100 (AMBAC)
5.500%, 01/01/14 1,545 1,756
5.500%, 01/01/15 550 613
Western Minnesota Municipal Power Agency,
Escrowed to Maturity (MBIA)
9.750%, 01/01/16 (d) 410 635
---------------
21,410
---------------
TOTAL REVENUE BONDS 125,026
---------------
GENERAL OBLIGATIONS - 29.0%
Anoka-Hennepin Independent School
District #11, Series A,
Callable 02/01/10 @ 100 (MSDCEP)
5.750%, 02/01/17 1,000 1,162
Becker Independent School
District #726, Series A,
Callable 02/01/10 @ 100 (FSA) (MSDCEP)
6.000%, 02/01/21 1,000 1,168
Burnsville Independent School District #191,
Series A, Callable 02/01/06 @ 100 (MSDCEP)
4.875%, 02/01/13 1,450 1,527
Chaska Independent School
District #112, Series A,
Callable 02/01/09 @ 100 (FSA) (MSDCEP)
5.700%, 02/01/18 1,000 1,123
Chaska Independent School District #112,
Series B, Crossover
Refunded 02/01/06 @ 100 (MSDCEP)
5.875%, 02/01/11 (e) $ 1,000 $ 1,075
6.000%, 02/01/15 (e) 525 566
6.000%, 02/01/16 (e) 5,525 5,954
Columbia Heights Independent School
District #13, Crossover
Refunded 02/01/07 @ 100 (MSDCEP)
5.250%, 02/01/15 (e) 1,000 1,074
Delano Independent School
District #879, Series A,
Callable 02/01/11 @ 100 (FSA) (MSDCEP)
5.875%, 02/01/25 1,000 1,132
Hennepin County, Series A,
Callable 12/01/10 @ 100
4.250%, 12/01/12 1,000 1,061
Hennepin County, Series B (VRDO)
0.868%, 12/01/20 6,550 6,550
Hopkins Independent School District #270,
Series B, Callable 02/01/11 @ 100 (MSDCEP)
4.125%, 02/01/12 2,200 2,324
Minneapolis Sports Arena,
Callable 04/01/08 @ 100
5.100%, 04/01/13 500 548
5.100%, 10/01/13 250 274
Minneapolis Sports Arena, Series B,
Callable 09/01/05 @ 100
5.200%, 03/01/13 400 420
Minneapolis, Series B,
Callable 05/01/04 @ 100 (SPA) (VRDO)
0.868%, 12/01/07 1,160 1,160
Minnesota State
4.000%, 08/01/11 10,000 10,702
5.000%, 08/01/11 2,500 2,840
North St. Paul Independent School District #622,
Series B, Callable 05/01/06 @ 100 (MSDCEP)
5.850%, 05/01/17 500 539
Northfield Independent School District #659,
Callable 02/01/11 @ 100
5.000%, 02/01/16 1,015 1,105
Perham, Disposal System,
Callable 05/01/11 @ 100 (AMT)
6.000%, 05/01/22 1,500 1,579
Sauk Rapids Independent School District #47,
Series A, Callable 02/01/11 @ 100 (MBIA)
5.750%, 02/01/23 2,000 2,244
South Washington County Independent School
District #833, Callable 06/01/05 @ 100 (MLO)
5.850%, 06/01/15 500 524
South Washington County Independent School
District #833, Series A (MSDCEP)
3.500%, 06/01/11 1,575 1,623
St. Louis Park Independent School District #283,
Callable 02/01/09 @ 100 (MSDCEP)
5.700%, 02/01/17 2,000 2,241
Wayzata Independent School District #284,
Series A, Callable 02/01/07 @ 100
5.500%, 02/01/17 2,000 2,164
---------------
TOTAL GENERAL OBLIGATIONS 52,679
---------------
</Table>
The accompanying notes are an integral part of the financial statements.
32
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
CERTIFICATE OF PARTICIPATION - 0.3%
South Washington County Independent School
District #833, Series A,
Callable 12/01/06 @ 100 (MLO)
5.250%, 12/01/14 $ 500 $ 516
---------------
TOTAL CERTIFICATE OF PARTICIPATION 516
---------------
TOTAL MUNICIPAL BONDS
(Cost $166,878) 178,221
---------------
MONEY MARKET FUND - 0.4%
Federated Minnesota Municipal Cash Trust 728,203 728
---------------
TOTAL MONEY MARKET FUND
(Cost $728) 728
---------------
TOTAL INVESTMENTS - 98.8%
(Cost $167,606) 178,949
---------------
OTHER ASSETS AND LIABILITIES, NET - 1.2% 2,226
---------------
TOTAL NET ASSETS - 100.0% $ 181,175
---------------
</Table>
(a) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) Variable Rate Security - The rate shown is the rate in effect as of March
31, 2004.
(c) The rate shown is the effective yield at the time of purchase.
(d) Escrowed to Maturity issues are usually backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(e) Crossover Refunded securities are backed by the credit of the refunding
issuer. These bonds mature at the call date and price indicated.
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market value
of securities subject to the AMT was $16,606,981, which represents 9.2% of
net assets
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
MSDCEP - Minnesota School District Credit Enhancement Program
RAAI - Radian Asset Assurance Inc.
SPA - Standby Purchase Agreement
VRDO - Variable Rate Demand Obligation. Floating or variable rate obligation
maturing in more than one year. The interest rate, which is based on
specific, or an index of, market interest rates, is subject to change
periodically and is the effective rate on March 31, 2004. This instrument
may also have a demand feature which allows the recovery of principal at
any time, or at specified intervals not exceeding one year, on up to 30
days' notice. Maturity date shown represents final maturity.
MISSOURI TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.8%
REVENUE BONDS - 73.2%
EDUCATION - 7.9%
Missouri State Health & Educational Facilities
Authority, University of Missouri-Columbia
Arena Project, Callable 11/01/11 @ 100
5.000%, 11/01/19 $ 2,540 $ 2,702
Missouri State Health & Educational Facilities
Authority, Washington University, Series A,
Callable 02/15/13 @ 100
5.000%, 02/15/33 1,000 1,041
Missouri State Health & Educational Facilities
Authority, Washington University, Series A,
Callable 06/15/11 @ 100
5.125%, 06/15/41 2,150 2,229
University of Missouri,
Pre-refunded 11/01/07 @ 101
5.500%, 11/01/21 (a) 3,000 3,400
5.800%, 11/01/27 (a) 5,000 5,719
---------------
15,091
---------------
HEALTHCARE - 17.5%
Boone County Hospital,
Callable 08/01/12 @ 100
5.050%, 08/01/20 1,200 1,246
Cape Girardeau County Authority,
Southeast Missouri Hospital Association,
Callable 06/01/12 @ 100
5.625%, 06/01/22 1,500 1,577
Missouri State Health & Educational Facilities
Authority, Barnes-Jewish Inc., Series A
4.750%, 05/15/05 100 104
Missouri State Health & Educational Facilities
Authority, BJC Health Systems,
Callable 05/15/08 @ 101
5.000%, 05/15/28 3,105 3,143
Missouri State Health & Educational Facilities
Authority, BJC Health Systems, Series A,
Callable 05/15/04 @ 102, Escrowed to Maturity
6.200%, 05/15/07 (b) 235 241
Missouri State Health & Educational Facilities
Authority, BJC Health Systems, Series A,
Escrowed to Maturity
6.750%, 05/15/12 (b) 3,310 4,109
Missouri State Health & Educational Facilities
Authority, Freeman Hospital Project, Series A,
Callable 02/15/05 @ 101 (FSA)
5.375%, 02/15/14 1,000 1,023
Missouri State Health & Educational Facilities
Authority, Lake Regional Health System Project
5.000%, 02/15/12 515 545
Missouri State Health & Educational Facilities
Authority, SSM Health Care System, Series A,
Callable 06/01/08 @ 101 (MBIA)
5.000%, 06/01/09 1,000 1,103
5.000%, 06/01/12 2,000 2,143
5.000%, 06/01/18 3,895 4,064
Missouri State Health & Educational Facilities
Authority, St. Luke's Health System,
Callable 11/15/04 @ 101 (MBIA)
5.100%, 11/15/13 2,000 2,042
</Table>
33
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
North Kansas City Hospital,
Callable 11/15/08 @ 101 (AMBAC)
5.000%, 11/15/13 $ 700 $ 750
5.000%, 11/15/28 2,000 2,064
North Kansas City Hospital, Series A,
Callable 11/15/13 @ 100 (FSA)
5.000%, 11/15/21 250 265
St. Louis County Industrial Development Authority,
Ranken-Jordan Project, Series A,
Callable 11/15/13 @ 100
6.625%, 11/15/35 500 508
University Health Facilities,
University of Missouri Health System, Series A,
Callable 11/01/06 @ 102 (AMBAC)
5.600%, 11/01/26 5,000 5,320
University Health Facilities,
University of Missouri Health System, Series A,
Callable 11/01/08 @ 100 (AMBAC)
5.000%, 11/01/09 1,000 1,100
University of Missouri Health Systems, Series A,
Callable 11/01/08 @ 100 (AMBAC)
5.125%, 11/01/28 2,000 2,048
---------------
33,395
---------------
HOUSING - 0.8%
Missouri State Community Development Agency,
Callable 05/07/04 @ 100 (FHA)
6.100%, 07/01/04 45 45
6.200%, 01/01/05 25 25
University City Industrial Development Authority,
Multifamily Housing, Series A,
Callable 12/20/05 @ 102
5.950%, 12/20/25 1,400 1,452
---------------
1,522
---------------
INDUSTRIAL DEVELOPMENT - 0.5%
Sugar Creek, Lafarge North America, Series A,
Callable 06/01/13 @ 101 (AMT)
5.650%, 06/01/37 1,000 1,014
---------------
LEASE REVENUE - 10.9%
Clay County, Public Building Authority,
Callable 05/15/08 @ 100 (MLO)
5.125%, 05/15/14 3,280 3,608
Missouri State Board of Public Buildings,
State Office Building Special Obligation,
Series A, Callable 05/01/11 @ 100 (MBIA) (MLO)
5.000%, 05/01/23 2,000 2,080
5.000%, 05/01/24 5,130 5,308
5.125%, 05/01/26 5,000 5,247
Missouri State Board of Public Buildings,
State Office Building Special Obligation,
Series A, Callable 05/01/11 @ 100 (MLO)
5.000%, 05/01/17 1,000 1,076
Missouri State Financial Board Infrastructure
Facilities, Branson, Series A,
Callable 12/01/12 @ 100 (MLO)
5.000%, 12/01/17 1,000 1,038
5.375%, 12/01/22 750 776
Puerto Rico Public Buildings Authority,
Public Education and Health Facilities, Series B,
Callable 07/01/07 @ 101.50
(AMBAC) (COMGTY) (MLO)
5.000%, 07/01/27 1,000 1,036
Puerto Rico Public Buildings Authority,
Public Education and Health Facilities, Series M,
Pre-refunded 07/01/05 @ 100 (COMGTY) (MLO)
5.500%, 07/01/21 (a) $ 755 $ 795
---------------
20,964
---------------
POLLUTION CONTROL - 16.8%
Missouri State Environmental
Improvement & Energy Resources Authority,
Amerenue Project, Series A (VRDO) (XLCA)
0.850%, 03/01/35 1,000 1,000
Missouri State Environmental
Improvement & Energy Resources Authority,
Water Pollution Control,
Associated Electric Co-Op, Thomas Hill,
Callable 12/01/06 @ 101
5.250%, 12/01/09 1,000 1,093
Missouri State Environmental
Improvement & Energy Resources Authority,
Water Pollution Control, Drinking Water,
Callable 01/01/07 @ 101
5.000%, 01/01/08 500 543
Missouri State Environmental
Improvement & Energy Resources Authority,
Water Pollution Control, Series A,
Drinking Water, Callable 07/01/08 @ 101
5.000%, 01/01/19 2,200 2,335
Missouri State Environmental
Improvement & Energy Resources Authority,
Water Pollution Control, Series B,
Drinking Water, Callable 01/01/09 @ 101
5.250%, 01/01/15 2,180 2,408
Missouri State Environmental
Improvement & Energy Resources Authority,
Water Pollution Control, Series B,
Drinking Water, Callable 01/01/13 @ 100
5.500%, 07/01/14 2,000 2,309
5.500%, 07/01/18 1,400 1,588
Missouri State Environmental
Improvement & Energy Resources Authority,
Water Pollution Control, Series E,
Drinking Water, Pre-refunded 07/01/06 @ 101
5.625%, 07/01/16 (a) 915 1,006
Missouri State Environmental
Improvement & Energy Resources Authority,
Water Pollution Control, Series A,
State Revolving Fund Program,
Callable 07/01/10 @ 100
5.500%, 07/01/16 2,495 2,821
Missouri State Environmental
Improvement & Energy Resources Authority,
Water Pollution Control, Series B,
State Revolving Fund Program,
Callable 01/01/13 @ 100
5.000%, 01/01/17 1,170 1,275
Missouri State Environmental
Improvement & Energy Resources Authority,
Water Pollution Control, Series C,
State Revolving Fund Program
5.375%, 07/01/13 1,570 1,828
5.375%, 07/01/14 2,400 2,803
5.375%, 07/01/15 1,500 1,738
5.375%, 07/01/16 2,000 2,317
</Table>
The accompanying notes are an integral part of the financial statements.
34
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Missouri State Environmental
Improvement & Energy Resources Authority,
Water Pollution Control, Series C,
State Revolving Fund Program,
Callable 07/01/11 @ 100
5.000%, 07/01/23 $ 6,655 $ 6,942
---------------
32,006
---------------
RECREATIONAL FACILITY AUTHORITY - 0.6%
Missouri Financial Board Cultural Facilities,
Nelson Gallery Foundation, Series A,
Callable 12/01/11 @ 100
5.250%, 12/01/14 1,000 1,125
---------------
TRANSPORTATION - 12.2%
Missouri State Highways & Transportation Road,
Series A
5.000%, 02/01/11 6,000 6,756
4.100%, 02/01/12 600 638
Missouri State Highways & Transportation Road,
Series A, Callable 02/01/11 @ 100
5.000%, 02/01/17 550 592
5.250%, 02/01/20 5,000 5,409
Missouri State Highways & Transportation Road,
Series A, Callable 02/01/12 @ 100
5.125%, 02/01/17 1,000 1,087
5.000%, 02/01/22 3,725 3,919
Platte County Industrial Development
Transportation Authority (MLO)
3.750%, 12/01/12 675 696
4.000%, 12/01/14 780 802
St. Louis Airport, Capital Improvement Program,
Series A, Callable 07/01/12 @ 100 (MBIA)
5.375%, 07/01/21 1,000 1,091
St. Louis Airport, Series A (FSA)
4.000%, 07/01/13 2,200 2,273
---------------
23,263
---------------
UTILITIES - 6.0%
Kansas City Water, Series A,
Callable 12/01/08 @ 101
5.000%, 12/01/11 4,390 4,867
Kansas City Water, Series B,
Callable 12/01/06 @ 101
5.000%, 12/01/07 500 545
5.000%, 12/01/16 2,200 2,369
Kansas City Water, Series D,
Pre-refunded 12/01/04 @ 100
6.300%, 12/01/08 (a) 500 517
Sikeston Electric,
Callable 06/01/06 @ 101 (MBIA)
5.000%, 06/01/22 1,000 1,039
Springfield Water Works, Series A,
Pre-refunded 05/01/05 @ 102
5.600%, 05/01/23 (a) 2,000 2,096
---------------
11,433
---------------
TOTAL REVENUE BONDS 139,813
---------------
GENERAL OBLIGATIONS - 25.6%
Clayton School District (STAID)
4.250%, 02/01/08 50 54
Clayton School District, Callable 03/01/07 @ 101
5.000%, 03/01/17 3,325 3,557
Columbia School District,
Callable 03/01/07 @ 100
6.300%, 03/01/11 $ 365 $ 408
Columbia School District,
Missouri Direct Deposit Program,
Callable 03/01/08 @ 100 (STAID)
4.850%, 03/01/14 1,000 1,083
Ferguson Reorganized School District #R-2 (STAID)
3.750%, 05/01/11 1,000 1,050
Independence School District,
Missouri Direct Deposit Program (FSA) (STAID)
3.500%, 03/01/14 1,315 1,303
Independence School District,
Missouri Direct Deposit Program,
Callable 03/01/13 @ 100 (MBIA) (STAID)
5.000%, 03/01/20 1,240 1,326
Jackson County School District #4,
Missouri Direct Deposit Program (STAID)
5.250%, 03/01/11 1,000 1,143
Jackson County School District,
Callable 03/01/08 @ 100
4.850%, 03/01/13 2,000 2,165
Jefferson City School District, Series A
6.700%, 03/01/11 1,000 1,204
Jefferson County School District #R-3,
Callable 03/01/08 @ 100 (STAID)
4.600%, 03/01/12 500 525
Kansas City, Series A, Callable 03/01/08 @ 101
5.250%, 09/01/09 300 334
5.250%, 09/01/12 3,980 4,434
Kansas City, Series A, Streetlight Project,
Callable 02/01/10 @ 101
5.750%, 02/01/12 1,000 1,156
Missouri State Water Pollution Control, Series A,
Pre-refunded 08/01/06 @ 100
5.750%, 08/01/18 (a) 2,085 2,284
Missouri State, Fourth State Building, Series A,
Pre-refunded 08/01/06 @ 100
5.400%, 08/01/09 (a) 2,000 2,174
North Kansas City School District,
Callable 03/01/11 @ 100
5.000%, 03/01/16 1,265 1,371
Puerto Rico Municipal Finance Agency,
Callable 08/01/09 @ 101
5.500%, 08/01/23 3,000 3,315
St. Charles County, Francis Howell School District,
Series A (STAID)
4.000%, 03/01/11 1,000 1,070
St. Charles School District,
Missouri Direct Deposit Program,
Callable 03/01/06 @ 101
5.000%, 03/01/12 750 802
St. Louis County
5.000%, 02/01/12 3,250 3,675
St. Louis County Public Safety,
Callable 08/15/09 @ 100 (FGIC)
5.125%, 02/15/17 4,185 4,545
St. Louis County Rockwood School District #R-6,
Callable 02/01/11 @ 100
5.000%, 02/01/13 3,000 3,312
St. Louis County Rockwood School District #R-6,
Series A, Callable 02/01/13 @ 100
5.000%, 02/01/14 2,000 2,226
</Table>
35
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
Taney County Reorganized School District #R-V,
Hollister, Missouri Direct Deposit Program,
Callable 03/01/13 @ 100 (FSA) (STAID)
5.000%, 03/01/17 $ 1,000 $ 1,086
Wentzville School District #R-4,
Callable 03/01/08 @ 100 (FSA)
5.100%, 03/01/18 3,000 3,226
---------------
TOTAL GENERAL OBLIGATIONS 48,828
---------------
TOTAL MUNICIPAL BONDS
(Cost $175,687) 188,641
---------------
AFFILIATED MONEY MARKET FUND - 1.0%
First American Tax Free Obligations
Fund, Cl Z (c) 1,866,640 1,867
---------------
TOTAL AFFILIATED MONEY MARKET FUND
(Cost $1,867) 1,867
---------------
TOTAL INVESTMENTS - 99.8%
(Cost $177,554) 190,508
---------------
OTHER ASSETS AND LIABILITIES, NET - 0.2% 475
---------------
TOTAL NET ASSETS - 100.0% $ 190,983
---------------
</Table>
(a) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) Escrowed to Maturity issues are usually backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(c) Investment in affiliated security. This money market fund is advised by
U.S. Bancorp Asset Management, Inc., which also serves as advisor for this
Fund. See note 3 in Notes to Financial Statements.
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market value
of securities subject to the AMT was $1,013,650, which represents 0.5% of
net assets.
COMGTY - Guaranteed by Commonwealth of Puerto Rico
Cl - Class
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FSA - Financial Security Assurance
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
STAID - State Aid Withholding
VRDO - Variable Rate Demand Obligation. Floating or variable rate obligation
maturing in more than one year. The interest rate, which is based on
specific, or an index of, market interest rates, is subject to change
periodically and is the effective rate on March 31, 2004. This instrument
may also have a demand feature which allows the recovery of principal at
any time, or at specified intervals not exceeding one year, on up to 30
days' notice. Maturity date shown represents final maturity.
XLCA - XL Capital Assurance Inc.
NEBRASKA TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.6%
REVENUE BONDS - 77.7%
EDUCATION - 20.8%
Nebraska Educational Finance Authority,
Concordia University Project,
Callable 12/15/08 @ 100
5.350%, 12/15/18 $ 650 $ 669
Nebraska Educational Finance Authority,
Creighton University Project, Series A (AMBAC)
5.000%, 09/01/09 500 561
Nebraska Educational Finance Authority,
Midland Lutheran College Project,
Callable 10/01/10 @ 100
5.200%, 10/01/20 350 353
Nebraska Educational Finance Authority,
Wesleyan University Project,
Callable 04/01/12 @ 100 (RAAI)
5.000%, 04/01/17 605 637
Nebraska Utility Corporation,
University of Nebraska, Lincoln Project,
Callable 01/01/12 @ 100
5.250%, 01/01/15 1,045 1,161
University of Nebraska, Facility Corporation,
Deferred Maintenance Project,
Callable 07/15/08 @ 100
5.250%, 07/15/11 1,000 1,106
University of Nebraska, Lincoln Parking Project,
Callable 08/01/05 @ 102
5.100%, 06/01/09 500 526
University of Nebraska, Lincoln Student Fees,
Callable 01/01/13 @ 100
5.000%, 07/01/22 750 781
University of Nebraska, Lincoln Student Fees,
Series B
4.250%, 07/01/12 175 187
University of Nebraska, Lincoln Student Fees,
Series B, Callable 11/15/13 @ 100
4.000%, 07/01/15 500 506
University of Nebraska,
Omaha Student Housing Project,
Callable 11/24/13 @ 100
5.000%, 05/15/23 500 525
University of Nebraska Facilities,
Medical Center Research Project,
Callable 02/15/12 @ 100
5.000%, 02/15/15 500 543
---------------
7,555
---------------
HEALTHCARE - 17.2%
Douglas County Hospital Authority #1,
Immanuel Medical Center,
Callable 09/01/07 @ 102 (AMBAC)
4.900%, 09/01/09 750 819
Douglas County Hospital Authority #2,
Nebraska Medical Center
5.000%, 11/15/16 700 741
Lancaster County Hospital Authority,
Bryanlgh Medical Center Project,
Callable 06/01/11 @ 100 (AMBAC)
5.000%, 06/01/19 500 524
5.125%, 06/01/21 1,200 1,260
</Table>
The accompanying notes are an integral part of the financial statements.
36
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Madison County Hospital Authority #1,
Faith Regional Health Services Project,
Callable 01/01/12 @ 100 (RAAI)
5.500%, 07/01/21 $ 1,000 $ 1,071
Nebraska Investment Finance Authority,
Great Plains Regional Medical Center,
Callable 05/15/12 @ 100 (RAAI)
5.200%, 11/15/16 250 267
5.300%, 11/15/17 805 861
Platte County Hospital Authority #1,
Columbus Community Hospital Project,
Callable 05/01/10 @ 101 (RAAI)
5.850%, 05/01/14 650 720
---------------
6,263
---------------
HOUSING - 5.6%
Nebraska Investment Finance Authority,
Multifamily Housing (GNMA)
4.625%, 07/20/12 455 488
Nebraska Investment Finance Authority,
Single Family Housing, Series A,
Callable 03/01/11 @ 100 (AMT)
5.150%, 03/01/16 755 803
Omaha Housing Authority, Multifamily Housing,
Timbercreek Apartments,
Callable 10/01/11 @ 100 (GNMA)
5.150%, 11/20/22 725 757
---------------
2,048
---------------
LEASE REVENUE - 2.2%
Nebraska Educational Telecommunication
Commission, Leasing Project, Series 2000 (MLO)
6.000%, 02/01/06 750 809
---------------
RECREATIONAL FACILITY AUTHORITY - 7.6%
Douglas County Zoo Facility, Omaha Henry Doorly
Zoo Project, Callable 09/01/09 @ 100
5.650%, 09/01/11 1,000 1,114
Omaha Convention Hotel Corporation, Series A,
Callable 04/01/12 @ 100 (AMBAC)
5.500%, 04/01/16 525 593
5.125%, 04/01/26 1,000 1,050
---------------
2,757
---------------
TAX REVENUE - 1.4%
Omaha Special Tax Revenue, Series A,
Callable 02/01/12 @ 101
5.125%, 02/01/32 500 526
---------------
TRANSPORTATION - 0.8%
Omaha Airport Authority,
Callable 01/01/11 @ 100 (FSA)
5.500%, 01/01/14 250 280
---------------
UTILITIES - 22.1%
Alliance Electrical Systems,
Callable 06/15/08 @ 100 (AMBAC)
5.000%, 12/15/14 260 285
5.100%, 12/15/15 460 501
Cuming County Public Power District,
Callable 05/15/06 @ 100
5.600%, 05/15/21 250 255
Grand Island Electrical Systems,
Callable 06/27/11 @ 100 (MBIA)
5.125%, 08/15/16 750 823
Hastings Electrical Systems,
Callable 05/01/11 @ 100 (FSA)
5.000%, 01/01/15 $ 1,000 $ 1,088
5.000%, 01/01/16 750 812
Lincoln Electrical Systems,
Callable 09/01/11 @ 100
5.000%, 09/01/15 500 546
Lincoln Electrical Systems,
Callable 09/01/13 @ 100
5.000%, 09/01/26 1,000 1,044
Nebraska Investment Finance Authority,
Drinking Water System Revolving Fund,
Callable 01/01/09 @ 100
4.500%, 01/01/10 115 122
5.150%, 01/01/16 580 605
Omaha Public Power District, Series A,
Callable 02/01/10 @ 100
5.000%, 02/01/17 655 702
5.200%, 02/01/22 630 671
Omaha Public Power Electrical Systems,
Escrowed to Maturity (a)
6.200%, 02/01/17 210 255
Washington County Wastewater Facilities,
Cargill Inc. Project, Callable 11/01/12 @ 101
5.900%, 11/01/27 300 324
---------------
8,033
---------------
TOTAL REVENUE BONDS 28,271
---------------
GENERAL OBLIGATIONS - 17.2%
Dawson County School District,
Callable 06/15/06 @ 102
5.100%, 12/15/16 365 394
Douglas County School District #17, Millard,
Callable 11/15/12 @ 100 (FSA)
4.000%, 11/15/13 500 524
Douglas County School District #54,
Ralston Public Schools,
Callable 08/15/11 @ 100 (FSA)
5.000%, 12/15/16 845 920
Lancaster County School District #1,
Lincoln Public Schools,
Callable 01/15/11 @ 100
5.250%, 07/15/19 220 240
Lancaster County School District #1,
Lincoln Public Schools,
Callable 07/15/12 @ 100
5.000%, 01/15/17 750 810
Lincoln County School District #1,
North Platte Public Schools,
Callable 02/15/09 @ 100 (FSA)
3.850%, 12/15/17 500 498
Omaha, Callable 04/01/14 @ 100
4.125%, 04/01/24 (b) 500 474
Omaha, Series A
6.500%, 12/01/18 825 1,057
Omaha, Series B,
Pre-refunded 05/01/04 @ 100 (c)
5.250%, 12/01/25 500 502
Omaha-Douglas Public Building,
Callable 05/01/11 @ 100
4.900%, 05/01/16 500 534
5.100%, 05/01/20 300 320
---------------
TOTAL GENERAL OBLIGATIONS 6,273
---------------
</Table>
37
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
CERTIFICATES OF PARTICIPATION - 3.7%
Western Nebraska Community College,
Callable 10/15/07 @ 100
4.700%, 10/15/10 $ 295 $ 310
4.800%, 10/15/11 195 204
4.900%, 10/15/12 250 261
5.000%, 10/15/13 300 312
5.100%, 10/15/14 250 260
---------------
TOTAL CERTIFICATES OF PARTICIPATION 1,347
---------------
TOTAL MUNICIPAL BONDS
(Cost $33,821) 35,891
---------------
AFFILIATED MONEY MARKET FUND - 1.3%
First American Tax Free Obligations Fund, Cl Z (d) 455,068 455
---------------
TOTAL AFFILIATED MONEY MARKET FUND
(Cost $455) 455
---------------
TOTAL INVESTMENTS - 99.9%
(Cost $34,276) 36,346
---------------
OTHER ASSETS AND LIABILITIES, NET - 0.1% 41
---------------
TOTAL NET ASSETS - 100.0% $ 36,387
---------------
</Table>
(a) Escrowed to Maturity issues are usually backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(b) Security purchased on a when-issued basis. On March 31, 2004, the total
cost of investments purchased on a when-issued basis was $488,995. See note
2 in Notes to Financial Statements.
(c) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(d) Investment in affiliated security. This money market fund is advised by
U.S. Bancorp Asset Management, Inc., which also serves as advisor for this
Fund. See note 3 in Notes to Financial Statements.
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market value
of securities subject to the AMT was $802,950, which represents 2.2% of
net assets.
Cl - Class
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
RAAI - Radian Asset Assurance Inc.
OHIO TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 97.0%
REVENUE BONDS - 28.7%
EDUCATION - 5.6%
Ohio State Higher Educational Facilities,
Xavier University Project,
Callable 05/01/13 @ 100 (FGIC)
5.250%, 05/01/16 $ 1,000 $ 1,115
University of Cincinnati, Series A,
Callable 06/01/11 @ 101 (FGIC)
5.500%, 06/01/14 1,000 1,141
---------------
2,256
---------------
HEALTHCARE - 7.5%
Erie County Hospital Facilities,
Firelands Regional Medical Center, Series A,
Callable 08/15/12 @ 101
5.500%, 08/15/22 500 525
Fairfield County Hospital Facilities,
Fairfield Medical Center,
Callable 06/15/12 @ 100 (RAAI)
5.000%, 06/15/22 500 512
Franklin County Health Care Facilities,
Refunding & Improvement, Ohio Presbyterian,
Series A, Callable 07/01/12 @ 100 (RAAI)
5.125%, 07/01/22 500 516
Hamilton County Hospital Facilities,
Children's Medical Center, Series F (FGIC)
5.200%, 05/15/09 1,000 1,109
Lorain County Hospital, Catholic Healthcare,
Callable 10/01/12 @ 100
5.500%, 10/01/17 350 378
---------------
3,040
---------------
POLLUTION CONTROL - 2.6%
Ohio State Water Development Authority,
Water Pollution Control, Callable 06/01/12 @ 100
5.050%, 12/01/21 1,000 1,063
---------------
TRANSPORTATION - 5.0%
Dayton, James M. Cox Dayton International,
Series A, Callable 12/01/13 @ 100 (RAAI)
4.750%, 12/01/14 160 170
4.750%, 12/01/15 165 173
4.750%, 12/01/17 180 185
Lucas County Port Authority, Crocker Park Public
Improvement Project, Callable 12/01/13 @ 102
5.250%, 12/01/23 400 407
Ohio State Turnpike Commission, Series A,
Pre-refunded 02/15/06 @ 102 (MBIA)
5.700%, 02/15/13 (a) 1,000 1,096
---------------
2,031
---------------
UTILITIES - 8.0%
Cincinnati Water System,
Callable 06/01/11 @ 100
5.000%, 12/01/20 1,000 1,058
Montgomery County Water, Greater Moraine
Beaver, Callable 11/15/12 @ 100 (AMBAC)
5.375%, 11/15/16 1,000 1,127
Ohio State Water Development Authority,
Escrowed to Maturity,
Callable 06/01/05 @ 102 (AMBAC)
5.800%, 12/01/11 (b) 1,000 1,069
---------------
3,254
---------------
TOTAL REVENUE BONDS 11,644
---------------
</Table>
The accompanying notes are an integral part of the financial statements.
38
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS - 59.6%
Cincinnati, Callable 12/01/11 @ 100
5.000%, 12/01/16 $ 1,000 $ 1,088
5.000%, 12/01/17 1,000 1,080
Columbus City School District, School Facilities
Construction & Improvement,
Callable 06/01/13 @ 100 (FGIC)
5.000%, 12/01/18 2,000 2,163
Dayton City School District, School Facilities
Construction & Improvement, Series D (FGIC)
5.000%, 12/01/11 1,000 1,133
Dublin, Refunding & Improvement, Series A,
Callable 12/01/09 @ 101
5.250%, 12/01/14 1,000 1,125
Greater Cleveland Regional Transportation
Authority, Pre-refunded 12/01/06 @ 101 (FGIC)
5.650%, 12/01/16 (a) 1,000 1,114
Northwest School District, School Improvement,
Callable 12/01/12 @ 100 (MBIA)
5.000%, 12/01/22 1,000 1,055
Ohio State Common Schools, Series A,
Callable 03/15/12 @ 100
5.125%, 09/15/22 2,000 2,124
Ohio State Higher Education, Series A,
Callable 02/01/11 @ 100
5.000%, 02/01/19 1,000 1,062
Ohio State Higher Education, Series A,
Callable 02/01/12 @ 100
5.000%, 08/01/22 1,000 1,051
Ohio State Higher Education, Series B,
Callable 11/01/11 @ 100
5.000%, 11/01/15 1,000 1,093
5.000%, 11/01/16 1,000 1,088
Ohio State Infrastructure Improvement, Series A
5.500%, 02/01/20 1,000 1,159
Pickerington School District, School Facilities
Construction & Improvement,
Callable 12/01/11 @ 100 (FGIC)
5.250%, 12/01/20 1,000 1,085
Revere Local School District (FSA)
5.000%, 12/01/12 1,150 1,298
Solon, Callable 12/01/12 @ 100
5.000%, 12/01/21 1,000 1,061
Springfield City School District,
Callable 12/01/11 @ 102 (FGIC)
5.200%, 12/01/23 1,000 1,077
Summit County, Series R (FGIC)
5.500%, 12/01/21 1,000 1,161
Sylvania City School District,
Pre-refunded 12/01/05 @ 101 (FGIC)
5.800%, 12/01/15 (a) 1,000 1,084
Toledo City School District, School Facilities
Improvement, Callable 12/01/13 @ 100 (FSA)
5.000%, 12/01/14 1,000 1,120
---------------
TOTAL GENERAL OBLIGATIONS 24,221
---------------
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
CERTIFICATES OF PARTICIPATION - 8.7%
Midview Local School District,
School Buildings Facilities Project,
Callable 05/01/13 @ 100
5.250%, 11/01/17 $ 1,270 $ 1,361
Ohio State Building Authority, State Facility,
Administration Building Fund, Series A,
Callable 04/01/12 @ 100 (FSA)
5.500%, 04/01/16 1,000 1,129
5.000%, 04/01/22 1,000 1,052
---------------
TOTAL CERTIFICATES OF PARTICIPATION 3,542
---------------
TOTAL MUNICIPAL BONDS
(Cost $37,590) 39,407
---------------
MONEY MARKET FUND - 1.5%
Federated Ohio Municipal Trust 608,768 609
---------------
TOTAL MONEY MARKET FUND
(Cost $609) 609
---------------
TOTAL INVESTMENTS - 98.5%
(Cost $38,199) 40,016
---------------
OTHER ASSETS AND LIABILITIES, NET - 1.5% 604
---------------
TOTAL NET ASSETS - 100.0% $ 40,620
---------------
</Table>
(a) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) Escrowed to Maturity issues are usually backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
AMBAC - American Municipal Bond Assurance Corporation
FGIC - Financial Guaranty Insurance Corporation
FSA - Financial Security Assurance
MBIA - Municipal Bond Insurance Association
RAAI - Radian Asset Assurance Inc.
39
<Page>
OREGON INTERMEDIATE TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.7%
REVENUE BONDS - 38.3%
BUILDING - 0.5%
Oregon State Fair & Exposition Center,
Callable 04/01/04 @ 101 (RAAI)
5.400%, 10/01/06 $ 755 $ 765
---------------
EDUCATION - 4.8%
Multnomah County Educational Facilities,
University of Portland,
Callable 04/01/07 @ 102 (AMBAC)
5.750%, 04/01/10 2,245 2,519
5.700%, 04/01/15 1,000 1,076
Oregon State Health, Housing,
Educational & Cultural Facilities Authority,
George Fox University, Series A,
Callable 03/01/07 @ 102 (BA)
5.400%, 03/01/09 395 432
5.450%, 03/01/10 415 451
Oregon State Health, Housing,
Educational & Cultural Facilities Authority,
Reed College, Series A, Callable 07/01/06 @ 102
5.375%, 07/01/15 2,000 2,100
Salem Educational Facilities, Williamette University,
Callable 04/01/04 @ 101
5.700%, 04/01/05 500 507
---------------
7,085
---------------
HEALTHCARE - 5.6%
Clackamas County Hospital Facilities Authority,
Legacy Health Systems,
Callable 08/15/09 @ 101
5.250%, 02/15/11 2,000 2,215
5.375%, 02/15/12 1,000 1,102
Clackamas County Hospital Facilities Authority,
Mary's Woods, Series A,
Callable 05/15/09 @ 102
6.125%, 05/15/13 1,000 1,068
Medford Hospital Facilities Authority,
Asante Health Systems,
Callable 08/15/08 @ 101 (MBIA)
5.250%, 08/15/11 1,000 1,111
5.375%, 08/15/12 1,000 1,116
Salem Hospital Facilities Authority,
Callable 08/15/08 @ 101
5.250%, 08/15/14 1,000 1,065
Umatilla County Hospital Facilities Authority,
Catholic Health Initiatives, Series A
5.000%, 03/01/12 690 754
---------------
8,431
---------------
HOUSING - 4.4%
Oregon State Housing & Community Services,
Series A, Callable 04/01/04 @ 102
4.900%, 07/01/05 1,075 1,099
5.750%, 07/01/12 2,490 2,535
Oregon State Housing & Community Services,
Series A, Callable 07/01/04 @ 102
6.400%, 07/01/18 465 476
Oregon State Housing & Community Services,
Series A, Callable 07/01/06 @ 102
6.000%, 07/01/16 550 582
Oregon State Housing & Community Services,
Series E, Callable 01/01/10 @ 100 (FHA)
5.750%, 07/01/13 615 646
Portland Housing Authority, Riverwood Project,
Pre-refunded 01/01/06 @ 100
6.000%, 01/01/11 (a) $ 1,170 $ 1,260
---------------
6,598
---------------
IMPROVEMENTS - 0.8%
Oregon State Department of Administrative
Services Lottery, Series A,
Callable 04/01/10 @ 100 (FSA)
5.000%, 04/01/12 1,050 1,156
---------------
POLLUTION CONTROL - 1.9%
Port of St. Helens Pollution Control,
Portland General Electric
4.800%, 04/01/10 2,450 2,458
4.800%, 06/01/10 400 401
---------------
2,859
---------------
TAX REVENUE - 1.5%
Medford Urban Renewal Agency,
Callable 01/01/13 @ 101
4.500%, 06/01/13 1,010 1,079
Portland Urban Renewal & Redevelopment,
Convention Center, Series A,
Callable 06/15/10 @ 101 (AMBAC)
5.750%, 06/15/15 1,000 1,154
---------------
2,233
---------------
TRANSPORTATION - 6.2%
Oregon State Department of Transportation,
Highway User Tax, Callable 11/15/10 @ 100
5.125%, 11/15/14 2,260 2,513
Oregon State Department of Transportation,
Highway User Tax, Series A,
Callable 11/15/12 @ 100
5.500%, 11/15/16 1,000 1,138
Port Morrow, Callable 06/01/05 @ 100
6.250%, 06/01/15 1,500 1,518
Port Portland Airport, Series 12-A,
Callable 01/01/09 @ 101 (FGIC)
5.250%, 07/01/11 1,165 1,284
5.250%, 07/01/12 2,000 2,196
Tri-County Metropolitan Transportation District,
Series 1 (MGT)
4.900%, 06/01/09 500 549
---------------
9,198
---------------
UTILITIES - 12.6%
Clackamas County Service District #1,
Pre-refunded 10/01/06 @ 100
6.200%, 10/01/09 (a) 700 778
Eugene Electric Utilities,
Callable 08/01/06 @ 100 (FSA)
5.375%, 08/01/11 1,195 1,290
Eugene Electric Utilities,
Callable 08/01/07 @ 100 (FSA)
5.000%, 08/01/11 1,305 1,420
Eugene Electric Utilities,
Callable 08/01/08 @ 100 (FSA)
4.800%, 08/01/13 690 744
Marion County Solid Waste & Electric,
Ogden Martin System Project (AMBAC)
5.500%, 10/01/06 1,465 1,600
</Table>
40
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Portland Sewer Systems, Series A,
Callable 06/01/07 @ 100 (FGIC)
5.000%, 06/01/09 $ 2,250 $ 2,442
5.000%, 06/01/10 2,000 2,171
5.000%, 06/01/15 250 268
Salem Water & Sewer (MBIA)
6.000%, 06/01/06 1,135 1,242
Tualatin Valley Water District,
Callable 06/01/08 @ 100 (FSA)
5.000%, 06/01/12 1,000 1,097
Washington County Clean Water Services,
Callable 10/01/11 @ 100 (FGIC)
5.125%, 10/01/14 1,790 1,989
Washington County Unified Sewer Agency,
Callable 10/01/06 @ 101 (FGIC)
5.200%, 10/01/09 1,300 1,416
Washington County Unified Sewer Agency,
Series 1 (FGIC)
5.750%, 10/01/08 1,000 1,149
Washington County Unified Sewer Agency,
Series A, Zero Coupon Bond (AMBAC)
4.200%, 10/01/07 (b) 1,200 1,113
---------------
18,719
---------------
TOTAL REVENUE BONDS 57,044
---------------
GENERAL OBLIGATIONS - 54.9%
Chemeketa Community College District,
Escrowed to Maturity (FGIC)
5.500%, 06/01/13 (c) 2,170 2,532
Clackamas & Washington Counties School
District #3, Linn-Wilsonville District, Series A,
Zero Coupon Bond (FGIC)
4.415%, 06/15/15 (b) 4,000 2,502
Clackamas County Limited Tax Assessment,
Callable 05/01/04 @ 100
6.000%, 05/01/10 1,000 1,001
Clackamas County School District #7,
Lake Oswego, Callable 06/01/11 @ 100
5.500%, 06/01/12 1,240 1,416
Clackamas County School District #62,
Oregon City (FSA) (SBG)
4.250%, 06/15/14 1,350 1,424
Clackamas County School District #86, Canby,
Callable 06/15/10 @ 100 (SBG)
5.500%, 06/15/15 1,835 2,072
Columbia County School District #502,
Zero Coupon Bond (FGIC)
0.000%, 06/01/12 (b) 1,530 1,136
5.000%, 06/01/16 (b) 1,000 600
Deschutes & Jefferson Counties School
District #2, Callable 06/15/11 @ 100
5.500%, 06/15/14 1,725 1,969
Deschutes County,
Callable 12/01/12 @ 100 (FSA)
5.000%, 12/01/14 1,755 1,940
Deschutes County,
Pre-refunded 12/01/06 @ 100 (MBIA)
5.250%, 12/01/09 (a) 1,000 1,094
Eugene Public Safety Facilities,
Callable 06/01/06 @ 100 (FGIC)
5.700%, 06/01/16 1,295 1,396
Hood River County School District,
Callable 06/15/11 @ 100 (SBG)
5.250%, 06/15/16 1,030 1,137
Jackson County School District #549,
Medford (SBG)
5.000%, 06/15/12 $ 2,000 $ 2,249
Josephine County School District #7 (FGIC)
5.750%, 06/01/06 1,525 1,660
Lake Oswego (MBIA)
5.250%, 06/01/13 1,035 1,189
Lane County School District #4, Eugene (FGIC)
5.000%, 07/01/11 1,785 2,018
Lane County School District #40, Creswell,
Callable 06/15/10 @ 100 (SBG)
5.000%, 06/15/11 1,120 1,244
Lane County School District #52, Bethel,
Pre-refunded 06/15/10 @ 100 (SBG)
5.350%, 06/15/11 (a) 1,285 1,472
Lincoln County School District (FGIC)
6.000%, 06/15/06 1,055 1,158
Linn Benton Community College District,
Zero Coupon Bond (FGIC) (SBG)
4.000%, 06/15/08 (b) 985 889
4.210%, 06/15/09 (b) 1,000 865
Linn County Community School District,
Callable 06/15/13 @ 100 (FGIC) (SBG)
5.550%, 06/15/21 1,000 1,125
Marion & Polk Counties School District #7-J,
Silverton, Callable 06/01/04 @ 101 (FSA)
5.600%, 06/01/06 860 875
Marion County School District #103C Woodburn,
Series B, Zero Coupon Bond (FGIC)
3.700%, 11/01/11 (b) 2,210 1,704
McMinnville School District
5.500%, 06/15/13 1,000 1,162
McMinnville School District #40 (FSA)
5.500%, 06/15/12 620 721
Metro, Callable 09/01/10 @ 102
5.250%, 09/01/14 1,000 1,127
Metropolitan, Washington Park Zoo, Series A,
Callable 01/15/07 @ 100
5.250%, 01/15/10 1,000 1,083
Multnomah-Clackamas County School
District #10, Gresham-Barlow,
Callable 06/15/11 @ 100 (FSA) (SBG)
5.500%, 06/15/13 1,780 2,042
Multnomah-Clackamas County School
District #28-302, Centennial,
Callable 06/15/11 @ 100 (FGIC) (SBG)
5.500%, 06/15/14 1,500 1,713
Multnomah County School District #7,
Reynolds (AMBAC)
5.500%, 06/01/06 1,000 1,086
Multnomah County School District #7, Reynolds,
Callable 06/15/11 @ 100 (SBG)
5.625%, 06/15/15 1,000 1,127
Multnomah County, Series A,
Callable 04/01/10 @ 100
5.000%, 04/01/11 1,000 1,111
5.125%, 04/01/13 2,445 2,726
Oregon State Alternative Energy, Private Act,
Callable 07/01/04 @ 100
5.300%, 07/01/05 900 909
Oregon State Board of Higher Education,
Series A, Callable 08/01/09 @ 101
5.500%, 08/01/15 1,255 1,446
</Table>
41
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Oregon State Pollution Control, Series A,
Callable 11/01/07 @ 100
4.875%, 11/01/11 $ 455 $ 494
Polk, Marion & Benton Counties School
District #13-J, Callable 12/01/04 @ 101 (FGIC)
5.500%, 12/01/05 570 593
Port Portland, Series A
4.500%, 03/01/06 1,000 1,056
Portland Community College Services,
Callable 06/01/11 @ 100
5.375%, 06/01/15 1,375 1,530
Portland Emergency Facilities, Series A,
Callable 06/01/09 @ 100
5.000%, 06/01/12 1,060 1,168
Puerto Rico Commonwealth, Series C,
Mandatory Put 07/01/08 @ 100 (FSA)
5.000%, 07/01/21 1,000 1,111
Salem-Keizer School District #24-J,
Callable 06/01/08 @ 100 (FSA)
5.100%, 06/01/12 2,000 2,201
Salem-Keizer School District #24-J,
Callable 06/01/09 @ 100 (SBG)
5.250%, 06/01/12 1,000 1,134
Tri-County Metropolitan Transportation District,
Light Rail Extension, Series A,
Callable 07/01/09 @ 101
5.250%, 07/01/10 1,115 1,259
5.250%, 07/01/12 1,000 1,121
Tualatin Hills Park & Recreation District (FGIC)
5.750%, 03/01/13 870 1,029
Umatilla County School District #016-R,
Pendleton (FGIC)
5.000%, 07/01/11 1,000 1,131
5.250%, 07/01/14 1,540 1,769
Wasco County School District #12
5.500%, 06/15/14 1,080 1,259
Washington & Clackamas Counties School
District #23-J, Tigard (FGIC)
5.750%, 06/01/06 1,055 1,151
5.250%, 06/01/11 1,335 1,529
Washington & Clackamas Counties School
District #23-J, Tigard, Zero Coupon Bond
5.820%, 06/15/14 (b) 1,030 683
Washington County
5.500%, 06/01/10 1,000 1,156
Washington County School District #48-J,
Beaverton, Callable 08/01/08 @ 100
5.250%, 08/01/10 2,000 2,220
Washington County School District #88,
Sherwood, Pre-refunded 06/01/05 @ 100 (FSA)
5.700%, 06/01/06 (a) 1,000 1,053
Washington, Multnomah & Yamhill Counties
School District #1-J
5.000%, 11/01/14 1,000 1,131
Washington, Multnomah & Yamhill Counties
School District #1-J (MBIA)
5.000%, 06/01/10 1,325 1,494
Washington, Multnomah & Yamhill Counties
School District #1-J, Callable 06/01/09 @ 100
5.250%, 06/01/12 1,185 1,322
Wilsonville, Callable 06/01/08 @ 100
5.000%, 12/01/10 350 350
---------------
TOTAL GENERAL OBLIGATIONS 81,864
---------------
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
CERTIFICATES OF PARTICIPATION - 5.5%
Multnomah County,
Callable 08/01/08 @ 101 (MLO)
4.750%, 08/01/11 $ 2,200 $ 2,369
Oregon State Department of Administrative
Services, Series A (AMBAC) (MLO)
5.500%, 05/01/07 1,000 1,108
Oregon State Department of Administrative
Services, Series A,
Callable 05/01/09 @ 101 (AMBAC) (MLO)
5.000%, 05/01/14 1,240 1,359
Oregon State Department of Administrative
Services, Series A,
Callable 05/01/13 @ 100 (FSA)
5.000%, 05/01/14 1,200 1,331
Oregon State Department of Administrative
Services, Series B,
Callable 11/01/07 @ 101 (AMBAC) (MLO)
5.000%, 11/01/11 840 923
Oregon State Department of Administrative
Services, Series C,
Pre-refunded 05/01/06 @ 101 (MBIA) (MLO)
5.750%, 05/01/07 (a) 990 1,085
---------------
TOTAL CERTIFICATES OF PARTICIPATION 8,175
---------------
TOTAL MUNICIPAL BONDS
(Cost $137,005) 147,083
---------------
AFFILIATED MONEY MARKET FUND - 0.9%
First American Tax Free Obligations Fund, Cl Z (d) 1,245,672 1,246
---------------
TOTAL AFFILIATED MONEY MARKET FUND
(Cost $1,246) 1,246
---------------
TOTAL INVESTMENTS - 99.6%
(Cost $138,251) 148,329
---------------
OTHER ASSETS AND LIABILITIES, NET - 0.4% 641
---------------
TOTAL NET ASSETS - 100.0% $ 148,970
---------------
</Table>
(a) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(b) The rate shown is the effective yield at the time of purchase.
(c) Escrowed to Maturity issues are usually backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(d) Investment in affiliated security. This money market fund is advised by
U.S. Bancorp Asset Management, Inc., which also serves as advisor for this
Fund. See note 3 in Notes to Financial Statements.
AMBAC - American Municipal Bond Assurance Corporation
BA - Bank of America
Cl - Class
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FSA - Financial Security Assurance
MBIA - Municipal Bond Insurance Association
MGT - Morgan Guaranty Trust
MLO - Municipal Lease Obligation
RAAI - Radian Asset Assurance Inc.
SBG - School Board Guaranty
The accompanying notes are an integral part of the financial statements.
42
<Page>
SHORT TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.6%
ALABAMA - 1.0%
Foley Utilities Board, Escrowed to Maturity,
Callable 09/01/04 @ 100 (RB)
6.000%, 03/01/07 (a) $ 1,500 $ 1,679
Homewood, Sewer 7, Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
6.125%, 03/01/07 (a) 1,340 1,505
Mobile, Escrowed to Maturity,
Callable 08/15/04 @ 100 (GO)
6.200%, 02/15/07 (a) 1,280 1,434
---------------
4,618
---------------
ALASKA - 1.2%
Anchorage, Series B (GO) (MBIA)
5.000%, 07/01/06 5,000 5,385
---------------
ARIZONA - 3.0%
Arizona State Funding Program, Series 15,
Escrowed to Maturity (COP)
8.750%, 08/01/06 (a) 2,115 2,457
8.750%, 08/01/06 (a) 1,410 1,639
Pima County (AMBAC) (COP)
2.000%, 01/01/06 1,000 1,009
Salt River Project, Agricultural Improvement &
Power District Electrical Systems, Series A (RB)
5.250%, 01/01/06 2,250 2,398
Scottsdale Water & Sewer,
Project of 1989, Series E (RB)
7.000%, 07/01/08 1,370 1,630
University Medical Center (PUFG) (RB)
5.000%, 07/01/07 300 326
5.000%, 07/01/08 350 383
5.000%, 07/01/09 500 550
Yavapai County Industrial Development Authority,
Waste Management Project, Series A-1,
Mandatory Put 03/01/06 @ 100 (AMT) (GTY) (RB)
3.650%, 03/01/28 3,100 3,174
---------------
13,566
---------------
CALIFORNIA - 5.2%
California State (GO)
5.000%, 06/01/07 5,000 5,401
5.000%, 02/01/08 5,000 5,422
5.000%, 02/01/08 1,000 1,084
California State, Series A (RB)
2.000%, 06/16/04 4,000 4,008
California Statewide Communities Development
Authority, Kaiser Permanente, Series H,
Mandatory Put 05/01/08 @ 100 (RB)
2.625%, 04/01/34 (b) 4,000 3,975
Contra Costa Transportation Authority, Series A,
Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
6.875%, 03/01/07 (a) 3,000 3,277
---------------
23,167
---------------
COLORADO - 1.2%
Denver City & County Airport,
Series E (AMT) (RB) (XLCA)
5.000%, 11/15/07 5,000 5,446
---------------
CONNECTICUT - 0.2%
Mashantucket Western Pequot Tribe, Series A,
Escrowed to Maturity (RB)
6.375%, 09/01/04 (a) (c) $ 1,020 $ 1,043
---------------
DISTRICT OF COLUMBIA - 1.3%
District of Columbia, Series A (GO) (MBIA)
5.500%, 06/01/07 5,000 5,545
---------------
FLORIDA - 0.8%
Escambia County Health Facilities Authority,
Ascension Health Credit, Series A (RB)
5.000%, 11/15/06 815 881
Highlands County Health Facilities Authority,
The Adventist Health System, Series B (RB)
3.750%, 11/15/06 2,605 2,717
---------------
3,598
---------------
GEORGIA - 0.2%
Fulton Dekalb Hospital Authority (FSA) (RB)
5.000%, 01/01/07 1,000 1,083
---------------
IDAHO - 0.5%
Idaho Falls, Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
10.250%, 04/01/06 (a) 995 1,086
Idaho Falls, Pre-refunded 04/01/07 @ 100,
Callable 04/01/04 @ 100 (RB)
10.375%, 04/01/13 (d) 1,075 1,333
---------------
2,419
---------------
ILLINOIS - 10.7%
Champaign County Community Unit School
District #4 (GO)
8.300%, 01/01/07 1,120 1,305
Chicago, Series C (GO) (MBIA)
4.000%, 01/01/08 1,000 1,064
Chicago O'Hare International Airport, 2nd Lien,
Passenger Facilities,
Series C (AMBAC) (AMT) (RB)
5.000%, 01/01/08 2,260 2,449
Chicago O'Hare International Airport, 2nd Lien,
Passenger Facilities, Series C (MBIA) (RB)
5.750%, 01/01/09 1,000 1,141
Chicago O'Hare International Airport,
Series A (AMBAC) (RB)
4.800%, 01/01/05 585 598
Chicago Park District,
Partially Pre-refunded 05/15/05 @ 102,
Callable 05/15/05 @ 102 (GO)
6.350%, 11/15/08 (d) 2,000 2,148
Cook County Community High School
District #218, Partially Escrowed to Maturity,
Zero Coupon Bond (FSA) (GO)
2.630%, 12/01/05 (a) (e) 1,760 1,720
Cook County Consolidated High School
District #200, Oak Park,
Zero Coupon Bond (FSA) (GO)
2.070%, 12/01/05 (e) 2,265 2,212
Cook County High School District #209,
Proviso Township (FSA) (GO)
2.650%, 12/01/08 1,485 1,364
Du Page Airport Authority, Series A (FGIC) (RB)
3.000%, 02/01/07 2,000 2,064
</Table>
43
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Illinois Development Finance Authority,
Mercy Housing Corporation Project,
Pre-refunded 08/01/04 @ 102 (GTY) (RB)
7.000%, 08/01/24 (d) $ 6,505 $ 6,744
Illinois Development Finance Authority,
People's Gas, Light & Coke, Series B,
Mandatory Put 02/01/08 @ 100 (AMBAC) (RB)
3.050%, 02/01/33 (b) 3,000 3,081
Illinois Educational Facilities Authority,
The Art Institute of Chicago,
Mandatory Put 03/01/08 @ 100 (RB)
3.100%, 03/01/34 2,000 2,017
Illinois Finance Authority, Depaul University,
Series A (RB)
5.000%, 10/01/07 1,000 1,092
5.000%, 10/01/09 1,000 1,104
Illinois Health Facilities Authority,
Covenant Retirement Communities,
Series A (RAAI) (RB)
3.375%, 12/01/06 1,365 1,415
Illinois Health Facilities Authority,
St. Elizabeth's Hospital,
Pre-refunded 07/01/04 @ 102 (RB)
7.625%, 07/01/10 (d) 1,000 1,036
7.750%, 07/01/16 (d) 3,150 3,264
Illinois Health Facilities Authority, University of
Chicago, Hospital & Health (MBIA) (RB)
5.000%, 08/15/06 1,000 1,079
5.000%, 08/15/07 1,000 1,098
Illinois State Toll Highway Authority,
Pre-refunded 07/01/06 @ 100,
Callable 04/01/04 @ 100 (RB)
6.750%, 01/01/10 (d) 55 60
Illinois State, First Series (GO)
4.000%, 12/01/06 2,000 2,122
Lake County Community Unit School District #60,
Waukegan, Series A (FSA) (GO)
6.000%, 12/01/05 1,115 1,201
Lake County School District #112,
Highland Park (GO)
9.000%, 12/01/06 1,655 1,959
9.000%, 12/01/07 1,000 1,237
Northern University, Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
7.125%, 04/01/05 (a) 1,405 1,445
Sangamon County (COP)
7.300%, 12/01/04 1,500 1,559
---------------
47,578
---------------
INDIANA - 4.0%
East Chicago Multi School Building Corporation,
Pre-refunded 07/15/06 @ 102 (RB) (STAID)
6.500%, 01/15/16 (d) 1,000 1,129
Gary Sanitation District,
Special Tax District (GO) (RAAI)
3.500%, 02/01/07 1,105 1,144
Indiana Transportation Finance Authority,
Airport Facilities, Series A (AMBAC) (RB)
6.000%, 11/01/08 2,600 3,004
Indianapolis Industries Local Public Improvement,
Airport Authority, Series A (AMT) (FSA) (RB)
5.000%, 01/01/07 10,000 10,751
New Albany Floyd County School Building,
Escrowed to Maturity (RB) (STAID)
6.200%, 07/01/04 (a) $ 1,300 $ 1,317
---------------
17,345
---------------
KANSAS - 0.7%
Augusta Electric Generating & Distribution
System, Escrowed to Maturity,
Callable 05/15/04 @ 100 (RB)
6.700%, 11/15/07 (a) 1,440 1,475
Newton Hospital, Newton Healthcare Corporation,
Series A, Pre-refunded 11/15/04 @ 102 (RB)
7.375%, 11/15/14 (d) 1,500 1,586
---------------
3,061
---------------
KENTUCKY - 0.3%
Bowling Green Industrial Building, Koehring
Company Project, Escrowed to Maturity (RB)
7.250%, 04/01/04 (a) 405 405
Kentucky State Turnpike Authority,
Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
6.125%, 07/01/07 (a) 420 451
Owensboro Electric, Light & Power,
Escrowed to Maturity,
Callable 07/01/04 @ 100 (RB)
6.850%, 01/01/08 (a) 570 631
---------------
1,487
---------------
LOUISIANA - 0.3%
Louisiana State Health & Education Authority,
Lambeth House Project,
Pre-refunded 10/01/06 @ 102 (RB)
9.000%, 10/01/26 (d) 1,000 1,196
---------------
MARYLAND - 0.5%
Calvert County Economic Development,
Asbury-Solomons Island Facilities Project,
Pre-refunded 01/01/05 @ 102 (RB)
8.375%, 01/01/15 (d) 1,000 1,074
Maryland State Health & Higher Education
Facilities Authority,
Memorial Hospital of Cumberland,
Pre-refunded 07/01/04 @ 100 (RB)
6.500%, 07/01/17 (d) 1,000 1,013
---------------
2,087
---------------
MASSACHUSETTS - 3.9%
Massachusetts State Housing Finance Agency,
Series B (RB)
2.500%, 06/01/06 6,000 6,074
Massachusetts State, Series E (GO)
5.500%, 01/01/09 10,000 11,297
---------------
17,371
---------------
MICHIGAN - 4.7%
Detroit Water Supply System,
Escrowed to Maturity,
Callable 07/01/04 @ 100 (RB)
8.875%, 01/01/05 (a) 1,590 1,674
Detroit, Series B (GO) (XLCA)
5.000%, 04/01/06 2,455 2,621
Michigan Municipal Bond Authority,
Pre-refunded 10/01/04 @ 102 (RB)
6.500%, 10/01/17 (d) 3,100 3,247
</Table>
44
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Michigan Municipal Bond Authority, Series A,
Escrowed to Maturity,
Callable 04/01/04 @ 101 (RB)
6.150%, 10/01/05 (a) $ 1,500 $ 1,610
Michigan State Hospital Finance Authority,
Genesys Health System, Series A,
Pre-refunded 10/01/05 @ 100 (RB)
7.500%, 10/01/27 (d) 6,620 7,235
Michigan State Hospital Finance Authority,
Harper-Grace Hospital, Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
7.125%, 05/01/09 (a) 445 500
Michigan State Hospital Finance Authority,
Henry Ford Health System, Series A (RB)
5.000%, 03/01/06 1,000 1,056
Michigan State Hospital Finance Authority,
Oakwood Obligated Group (RB)
5.000%, 11/01/06 1,000 1,073
Michigan State Strategic Fund,
Dow-Chemical Project, Mandatory
Put 06/01/06 @ 100 (RB)
3.800%, 06/01/14 (b) 1,800 1,860
---------------
20,876
---------------
MINNESOTA - 1.3%
Hennepin County Housing & Redevelopment
Authority, Loring Park Apartments,
Callable 08/15/06 @ 102.50,
Mandatory Put 02/15/09 @ 100 (AMT) (FNMA)
3.050%, 06/15/34 (b) 2,000 1,984
Minneapolis Healthcare System,
Allina Health System, Series A (RB)
5.000%, 11/15/06 1,895 2,030
Monticello, Big Lake Community Hospital District,
Series C (RB)
4.250%, 12/01/07 1,675 1,727
Northwestern Mutual Life Insurance Co.
Tax-Exempt Mortgage Trust #1 (RB)
7.605%, 02/15/09 (b) 46 46
---------------
5,787
---------------
MISSISSIPPI - 0.8%
Mississippi State, Escrowed to Maturity,
Callable 02/01/08 @ 100 (GO)
6.200%, 02/01/08 (a) 3,085 3,495
---------------
MISSOURI - 4.1%
Boone County Hospital (RB)
5.000%, 08/01/06 4,065 4,338
Little Blue Valley Sewer District,
Escrowed to Maturity (RB)
5.750%, 10/01/04 (a) 1,000 1,004
Little Blue Valley Sewer District,
Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
5.500%, 10/01/07 (a) 1,000 1,122
Missouri State Development Finance Board,
Branson, Series A (RB)
5.000%, 12/01/05 1,000 1,055
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution Control, Associated Electric CoOp,
Thomas Hill (RB)
5.500%, 12/01/06 1,000 1,102
Missouri State Highways & Transit Commission,
State Road, Series A (RB)
5.000%, 02/01/09 $ 7,500 $ 8,377
St. Louis International Airport, Series A (FSA) (RB)
5.000%, 07/01/07 1,100 1,202
---------------
18,200
---------------
NEBRASKA - 1.0%
Douglas County Hospital Authority #002,
Nebraska Medical Center (GTY) (RB)
5.000%, 11/15/07 1,000 1,091
5.000%, 11/15/08 1,000 1,099
Nebraska Investment Finance Authority,
Catholic Health Initiatives, Series A (RB)
5.500%, 12/01/07 2,000 2,223
---------------
4,413
---------------
NEVADA - 2.1%
Clark County Pollution Control, Series A,
Mandatory Put 03/02/09 @ 100 (AMT) (RB)
3.250%, 06/01/31 (b) 3,000 2,993
Clark County Pollution Control, Series C,
Mandatory Put 03/02/09 @ 100 (AMT) (RB)
3.250%, 06/01/31 (b) 3,000 2,993
Nevada State,
Partially Pre-refunded 12/01/04 @ 101,
Callable 12/01/04 @ 101 (GO)
6.500%, 12/01/12 (d) 3,000 3,139
---------------
9,125
---------------
NEW HAMPSHIRE - 1.3%
New Hampshire State, Series A (GO)
5.000%, 07/15/07 5,220 5,741
---------------
NEW JERSEY - 4.4%
New Jersey Economic Development Authority,
Arbor Glen Project, Series A,
Pre-refunded 05/15/06 @ 102 (RB)
8.000%, 05/15/12 (d) 2,000 2,305
New Jersey Economic Development Authority,
United Methodist Homes,
Pre-refunded 07/01/05 @ 102 (RB)
7.500%, 07/01/20 (d) 4,255 4,656
New Jersey Health Care Facilities Financing
Authority, Capital Health Systems, Series A (RB)
5.000%, 07/01/07 2,465 2,647
5.000%, 07/01/08 1,585 1,712
New Jersey Sports & Exposition Authority,
Monmouth Park, Series A,
Pre-refunded 01/01/05 @ 102 (RB)
8.000%, 01/01/25 (d) 2,400 2,572
New Jersey State Educational Facilities Authority,
Stevens Institute of Technology, Series C (RB)
4.000%, 07/01/04 500 503
New Jersey State Transportation Corporation,
Sub-Federal Transportation Administrative Grants,
Series B (COP)
5.000%, 09/15/06 2,025 2,180
New Jersey State Turnpike Authority,
Escrowed to Maturity (RB)
6.750%, 01/01/09 (a) 2,585 2,806
---------------
19,381
---------------
NEW MEXICO - 0.3%
Farmington, Pre-refunded 07/01/05 @ 100 (RB)
9.875%, 01/01/13 (d) 1,360 1,492
---------------
</Table>
45
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
NEW YORK - 7.1%
Long Island Power Authority, Series B (RB)
5.000%, 12/01/06 $ 3,700 $ 3,995
Monroe County Airport Authority,
Greater Rochester International (AMT) (MBIA) (RB)
4.000%, 01/01/08 1,125 1,191
5.000%, 01/01/09 1,175 1,299
New York, Series A (GO)
5.250%, 08/01/08 8,000 8,864
New York, Series G (GO)
5.000%, 08/01/08 1,615 1,773
New York, Series H (GO)
4.000%, 08/01/08 1,675 1,771
New York City Transitional Finance Authority,
Future Tax Secondary Subscriber, Series D-1 (RB)
5.000%, 11/01/09 2,950 3,316
New York State Dormitory Authority,
Lutheran Medical (FHA) (MBIA) (RB)
3.000%, 02/01/07 1,410 1,452
New York State Dormitory Authority,
Mental Health, Series F-1 (RB)
5.000%, 02/15/07 2,000 2,163
Port Authority of New York & New Jersey,
119th Series (AMT) (FGIC) (RB)
5.000%, 09/15/06 5,050 5,446
---------------
31,270
---------------
NORTH CAROLINA - 2.0%
North Carolina Medical Care Commission,
Health Care Facilities, Series A (RB)
2.500%, 11/01/07 1,000 999
North Carolina Medical Care Commission,
Novant Health Obligated Group, Series A (RB)
5.000%, 11/01/07 5,325 5,850
North Carolina Municipal Power Agency,
Series A (RB)
3.000%, 01/01/05 1,665 1,684
5.000%, 01/01/05 500 513
---------------
9,046
---------------
OHIO - 1.4%
Allen County Economic Development,
Young Men's Christian Association,
Mandatory Put 04/14/08 @ 100 (RB)
3.000%, 04/15/18 (b) 5,000 5,105
Toledo-Lucas County Port Authority,
Crocker Park Public Improvement Project (RB)
3.000%, 12/01/06 1,090 1,114
---------------
6,219
---------------
OKLAHOMA - 0.3%
Ponca City Utility Authority, Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
6.000%, 07/01/08 (a) 1,110 1,280
---------------
PENNSYLVANIA - 1.6%
Chartiers Valley Industrial & Commercial
Development Authority, Friendship Village South,
Series A (RB)
2.750%, 08/15/05 400 401
3.150%, 08/15/06 400 401
3.450%, 08/15/07 300 300
Hampden Township Sewer Authority,
Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
6.150%, 04/01/07 (a) $ 1,060 $ 1,156
Lehigh County General Purpose Authority,
Muhlenberg Hospital Center, Series A,
Pre-refunded 07/15/04 @ 100 (RB)
6.600%, 07/15/22 (d) 3,250 3,300
Ringgold School District Authority, Escrowed to
Maturity, Callable 04/01/04 @ 100 (RB)
6.700%, 01/15/08 (a) 1,165 1,302
---------------
6,860
---------------
PUERTO RICO - 2.8%
Puerto Rico Commonwealth,
Highway Transportation Authority, Series AA (RB)
5.000%, 07/01/07 7,200 7,869
Puerto Rico Commonwealth, Series C,
Mandatory Put 07/01/08 @ 100 (GO)
5.000%, 07/01/18 (b) 4,250 4,655
---------------
12,524
---------------
RHODE ISLAND - 0.6%
Rhode Island State Health & Educational Building,
Higher Education Facility,
Johnson & Wales (RB) (XLCA)
5.000%, 04/01/07 1,000 1,091
Rhode Island State Health & Educational Building,
Higher Education Facility, Roger Williams,
Pre-refunded 11/15/04 @ 102 (CLE) (RB)
7.200%, 11/15/14 (d) 1,500 1,587
---------------
2,678
---------------
SOUTH CAROLINA - 0.4%
Georgetown County, Series A (FGIC) (GO)
3.000%, 03/01/07 1,055 1,090
South Carolina Jobs Economic Development
Authority, Palmetto Health Alliance, Series C (RB)
4.500%, 08/01/06 660 684
---------------
1,774
---------------
SOUTH DAKOTA - 0.8%
Sioux Falls Health Facilities, Dow Rummel Village
Project, Series B,
Mandatory Put 11/15/07 @ 100,
Callable 11/15/07 @ 100 (RB)
4.750%, 11/15/33 1,675 1,676
South Dakota Housing Development Authority,
Homeownership Mortgage, Series I (AMT) (RB)
2.850%, 05/01/06 1,600 1,638
---------------
3,314
---------------
TENNESSEE - 0.4%
Sullivan County Health Educational & Housing
Facilities, Wellmont Health Systems Project (RB)
4.500%, 09/01/06 1,500 1,564
---------------
TEXAS - 19.3%
Arlington Independent School District,
Pre-refunded 02/15/05 @ 67.33,
Zero Coupon Bond (GO) (PSFG)
2.460%, 02/15/12 (d) (e) 8,940 5,961
Austin Utility System,
Pre-refunded 11/15/04 @ 100 (FGIC) (RB)
5.750%, 05/15/24 (d) 1,530 1,575
</Table>
The accompanying notes are an integral part of the financial statements.
46
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Austin, Escrowed to Maturity,
Callable 04/01/04 @ 100 (GO)
8.500%, 07/01/05 (a) $ 1,500 $ 1,635
Brazos River Authority, Utilities Electric Co.,
Series B, Mandatory
Put 06/19/06 @ 100 (AMT) (RB)
5.050%, 06/01/30 (b) 1,800 1,884
Colorado River Municipal Water
System (AMBAC) (RB)
5.000%, 01/01/06 1,500 1,590
Dallas (GO)
3.500%, 02/15/08 5,000 5,240
Fort Bend Independent School
District (GO) (PSFG)
7.750%, 08/15/04 1,485 1,521
Harris County Health Facilities Development,
Hermann Hospital Project,
Pre-refunded 10/01/04 @ 101 (MBIA) (RB)
6.375%, 10/01/24 (d) 830 860
Houston Airport Systems, Escrowed to
Maturity (RB)
8.200%, 07/01/05 (a) 910 954
Houston Health Facilities Development,
Buckingham Senior Living Community,
Series A, Callable 02/15/09 @ 100 (RB)
4.900%, 02/15/10 1,020 1,022
Houston Water & Sewer System,
Series A (FSA) (RB)
5.500%, 12/01/06 4,500 4,950
Houston, Public Improvement (GO) (MBIA)
5.000%, 03/01/07 5,000 5,440
Jefferson County Health Facilities Development
Authority, Baptist Hospitals (AMBAC) (FHA) (RB)
4.200%, 08/15/07 1,450 1,550
Laredo Independent School District (GO) (PSFG)
6.750%, 08/01/08 2,150 2,535
North Central Health Facility Development,
Baylor Health Care Systems Project (RB)
5.500%, 05/15/06 3,500 3,782
North East Independent School District (GO) (PSFG)
7.000%, 02/01/05 2,500 2,621
Northside Independent School District, Series B,
Callable 08/01/04 @ 100,
Mandatory Put 08/01/06 @ 100 (GO) (PSFG)
2.450%, 08/01/33 (b) 7,000 7,017
San Antonio (GO)
3.000%, 02/01/06 1,700 1,746
Southeast Hospital Financing Agency, Memorial
Hospital System Project, Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
8.500%, 12/01/08 (a) 800 927
Tarrant Regional Water District (FSA) (RB)
4.000%, 03/01/07 2,000 2,120
5.000%, 03/01/08 2,275 2,510
Texas State Public Finance Authority, Series A (GO)
5.250%, 10/01/07 10,250 11,400
Texas State Turnpike Authority (RB)
5.000%, 06/01/08 7,000 7,747
Texas Technical University, Improvement
Financing Systems, Ninth Series (AMBAC) (RB)
4.000%, 02/15/08 1,000 1,065
Trinity River Authority, Tarrant County Water
Project (MBIA) (RB)
3.000%, 02/01/05 $ 1,180 $ 1,198
3.000%, 02/01/06 2,590 2,660
3.250%, 02/01/07 2,130 2,210
Tyler Health Facilities Development,
Mother Frances Hospital (RB)
5.000%, 07/01/07 575 613
United Independent School District (GO) (PSFG)
8.000%, 08/15/05 1,075 1,173
---------------
85,506
---------------
UTAH - 1.7%
Intermountain Power Agency,
Series A (MBIA) (RB)
5.000%, 07/01/07 7,000 7,678
---------------
WASHINGTON - 2.7%
Clark County Public Utility District #001,
Electric (MBIA) (RB)
4.000%, 01/01/07 1,000 1,057
5.000%, 01/01/08 1,400 1,540
Clark County Public Utility District #001,
Generating Systems (MBIA) (RB)
4.000%, 01/01/07 1,000 1,058
Energy Northwest Electric, Columbia General
Station, Series F (MBIA) (RB)
5.000%, 07/01/07 1,000 1,098
Washington State Housing Finance Commission,
Presbyterian Ministries, Series A,
Pre-refunded 07/01/06 @ 102 (RB)
6.850%, 07/01/21 (d) 1,390 1,578
Washington State, Series E (GO)
6.000%, 07/01/07 5,000 5,640
---------------
11,971
---------------
WEST VIRGINIA - 0.7%
Putnam County Pollution Control,
Appalachian Power Company Project,
Series E, Mandatory Put 11/01/06 @ 100 (RB)
2.800%, 05/01/19 (b) 3,000 3,010
---------------
WISCONSIN - 1.8%
Racine Solid Waste Disposal,
Republic Services Project,
Mandatory Put 04/01/09 @ 100 (AMT) (RB)
3.250%, 12/01/37 (b) (f) 5,000 4,954
Wisconsin State Health & Educational Facilities
Authority, Gundersen Lutheran,
Series A (FSA) (RB)
5.000%, 02/15/08 1,000 1,095
Wisconsin State Health & Educational Facilities
Authority, Wheaton Franciscan Services,
Series A (RB)
5.000%, 08/15/07 1,000 1,086
Wisconsin State Health & Educational Facilities,
Marquette University Project,
Pre-refunded 12/01/04 @ 101 (FGIC) (RB)
6.450%, 12/01/19 (d) 1,000 1,046
---------------
8,181
---------------
TOTAL MUNICIPAL BONDS
(Cost $426,735) 437,380
---------------
</Table>
47
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
AFFILIATED MONEY MARKET FUND - 1.3%
First American Tax Free Obligations
Fund, Cl Z (g) 5,718,386 $ 5,718
---------------
TOTAL AFFILIATED MONEY MARKET FUND
(Cost $5,718) 5,718
---------------
TOTAL INVESTMENTS - 99.9%
(Cost $432,453) 443,098
---------------
OTHER ASSETS AND LIABILITIES, NET - 0.1% 424
---------------
TOTAL NET ASSETS - 100.0% $ 443,522
---------------
</Table>
(a) Escrowed to Maturity issues are usually backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(b) Variable Rate Security - The rate shown is the rate in effect as of March
31, 2004.
(c) 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
$1,042,797 or 0.2% of total net assets.
(d) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(e) The rate shown is the effective yield at the time of purchase.
(f) Security purchased on a when-issued basis. On March 31, 2004, the total
cost of investments purchased on a when-issued basis was $5,000,000. See
note 2 in Notes to Financial Statements.
(g) Investment in affiliated security. This money market fund is advised by
U.S. Bancorp Asset Management, Inc., which also serves as advisor for this
Fund. See note 3 in Notes to Financial Statements.
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market value
of securities subject to the AMT was $46,202,768, which represents 10.4%
of net assets.
Cl - Class
CLE - Connie Lee Insurance Company
COP - Certificate of Participation
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GO - General Obligation
GTY - Guaranty
MBIA - Municipal Bond Insurance Association
PSFG - Permanent School Fund Guarantee
PUFG - Permanent University Fund Guarantee
RAAI - Radian Asset Assurance Inc.
RB - Revenue Bond
STAID - State Aid Withholding
XLCA - XL Capital Assurance Inc.
TAX FREE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 97.4%
ALABAMA - 0.9%
Bessemer,
Callable 07/01/06 @ 102 (AMBAC) (RB)
5.750%, 07/01/16 $ 2,500 $ 2,752
Camden Industrial Development Board,
Series A, Callable 12/01/13 @ 100 (RB)
6.125%, 12/01/24 1,000 1,080
Camden Industrial Development Board, Series B,
Callable 12/01/13 @ 100 (AMT) (RB)
6.375%, 12/01/24 350 379
---------------
4,211
---------------
ALASKA - 1.9%
Alaska Energy Authority, Bradley Lake,
Third Series (FSA) (RB)
6.000%, 07/01/10 1,000 1,179
6.000%, 07/01/11 4,040 4,798
Alaska State Housing Finance Corporation,
Series A, Callable 12/01/05 @ 105 (MBIA) (RB)
5.700%, 12/01/11 505 528
Alaska State Housing Finance Corporation,
Series A, Callable 06/01/07 @ 102 (MBIA) (RB)
5.900%, 12/01/19 1,000 1,049
Anchorage, Series B,
Callable 07/01/12 @ 100 (GO) (MBIA)
5.000%, 07/01/22 2,000 2,102
---------------
9,656
---------------
ARIZONA - 1.5%
Arizona Health Facilities Authority,
The Terraces Project, Series A,
Callable 11/15/13 @ 101 (RB)
7.500%, 11/15/23 3,000 3,040
Arizona State Transportation Board,
Callable 07/01/09 @ 100 (RB)
6.000%, 07/01/12 3,830 4,430
---------------
7,470
---------------
CALIFORNIA - 6.0%
California State, Callable 04/01/09 @ 101 (GO)
4.750%, 04/01/22 500 498
California State, Callable 02/01/13 @ 100 (GO)
5.000%, 02/01/21 5,500 5,622
California State, Callable 02/01/14 @ 100 (GO)
5.000%, 02/01/33 2,000 2,000
California State Department of Water, Series A,
Callable 05/01/12 @ 101 (RB)
5.375%, 05/01/22 4,500 4,750
California Statewide Communities Development
Authority, Los Angeles Jewish Home,
Callable 11/01/13 @ 100 (CMI) (RB)
5.250%, 11/15/23 4,000 4,094
Chula Vista Industrial Development,
San Diego Gas & Electric Co.,
Series A (AMT) (RB)
4.900%, 03/01/23 (a) 2,500 2,473
Golden State Tobacco Securitization, Series B,
Callable 06/01/13 @ 100 (RB)
5.500%, 06/01/33 6,940 7,059
Vernon, Malburg Generating Station Project,
Callable 04/01/08 @ 100 (RB)
5.500%, 04/01/33 3,000 3,058
---------------
29,554
---------------
</Table>
48
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
COLORADO - 3.5%
Colorado State Educational & Cultural Facilities
Authority, Classical Academy Charter School
Project, Pre-refunded 12/01/11 @ 100 (RB)
7.250%, 12/01/21 (b) $ 1,500 $ 1,902
Colorado State Health Facilities Authority,
Covenant Retirement Communities, Series B,
Callable 12/01/12 @ 101 (RB)
6.125%, 12/01/33 1,150 1,195
Colorado State Health Facilities Authority,
Evangelical Lutheran Health Facilities,
Callable 10/01/12 @ 100 (RB)
5.900%, 10/01/27 2,500 2,604
Colorado State Health Facilities Authority,
Parkview Medical Center,
Callable 09/01/11 @ 100 (RB)
6.500%, 09/01/20 1,000 1,095
Colorado State Health Facilities Authority,
Vail Valley Medical Center,
Callable 01/15/12 @ 100 (RB)
5.800%, 01/15/27 1,500 1,553
The E-470 Public Highway Authority, Series B,
Zero Coupon Bond (MBIA) (RB)
5.470%, 09/01/32 (c) 15,000 3,421
La Junta Hospital, Arkansas Valley Medical
Center Project, Callable 04/01/09 @ 101 (RB)
6.000%, 04/01/19 1,000 1,031
Montrose Memorial Hospital,
Callable 12/01/13 @ 102 (RB)
6.000%, 12/01/28 1,000 1,018
6.000%, 12/01/33 1,000 1,011
Northwest Parkway Public Highway Authority,
Zero Coupon Bond (AMBAC) (RB)
6.290%, 06/15/29 (c) 10,000 2,378
---------------
17,208
---------------
FLORIDA - 3.0%
Capital Trust Agency, American Opportunity,
Senior A, Callable 06/01/11 @ 102 (RB)
5.750%, 06/01/23 1,000 969
Capital Trust Agency, Fort Lauderdale Project,
Callable 01/01/14 @ 101 (AMT) (RB)
5.750%, 01/01/32 1,000 954
Florida State Department of Transportation,
Callable 07/01/06 @ 101 (GO)
5.250%, 07/01/17 5,525 5,942
Florida State Department of Transportation,
Alligator Alley,
Callable 07/01/07 @ 101 (FGIC) (RB)
5.125%, 07/01/13 1,280 1,408
Palm Beach County, Park & Recreational Facilities,
Callable 11/01/06 @ 102 (FSA) (RB)
5.250%, 11/01/16 5,000 5,475
---------------
14,748
---------------
GEORGIA - 2.8%
Fulton County Residential Care Facilities,
Canterbury Court Project, Series A,
Callable 02/15/14 @ 101 (RB)
6.125%, 02/15/26 1,500 1,479
6.125%, 02/15/34 2,500 2,419
Gainesville & Hall County Hospital Authority,
Northeast Georgia Health Systems Inc. Project,
Callable 05/15/11 @ 100 (RB)
5.500%, 05/15/31 5,000 5,180
Georgia Municipal Electric Authority Power,
Series BB (MBIA) (RB)
5.250%, 01/01/25 $ 1,000 $ 1,109
Georgia State, Series C (GO)
5.750%, 09/01/09 3,190 3,725
---------------
13,912
---------------
HAWAII - 1.8%
Hawaii State, Series CN,
Callable 03/01/07 @ 102 (FGIC) (GO)
5.500%, 03/01/14 8,000 8,896
---------------
ILLINOIS - 12.5%
Bolingbrook, Residential Mortgages,
Escrowed to Maturity (FGIC) (RB)
7.500%, 08/01/10 (d) 1,080 1,266
Chicago Metropolitan Water Reclamation District,
Capital Improvement, Escrowed to Maturity (GO)
5.500%, 12/01/10 (d) 2,000 2,319
Cook County, Series A (GO) (MBIA)
6.250%, 11/15/12 9,090 11,037
Cook County Community School District #97,
Oak Park, Series B (FGIC) (GO)
9.000%, 12/01/11 2,235 3,117
Illinois Development Finance Authority,
Adventist Health System,
Callable 11/15/09 @ 101 (RB)
5.500%, 11/15/29 5,000 5,122
Illinois Health Facilities Authority, Condell Medical
Center, Callable 05/15/12 @ 100 (RB)
5.500%, 05/15/32 2,500 2,548
Illinois Health Facilities Authority,
Covenant Retirement Communities,
Callable 12/01/11 @ 101 (RB)
5.875%, 12/01/31 4,500 4,473
Illinois Health Facilities Authority,
Covenant Retirement Communities,
Series A, Callable 12/01/12 @ 100 (RAAI) (RB)
5.500%, 12/01/22 4,000 4,278
Illinois Health Facilities Authority,
Lutheran Senior Ministries, Series A,
Callable 08/15/11 @ 101 (RB)
7.375%, 08/15/31 3,000 3,018
Illinois State,
Pre-refunded 02/01/05 @ 102 (GO) (MBIA)
6.100%, 02/01/17 (b) 2,225 2,362
Illinois State,
Pre-refunded 05/01/06 @ 102 (GO) (MBIA)
5.750%, 05/01/21 (b) 1,410 1,536
Illinois State,
Pre-refunded 02/01/07 @ 101 (FGIC) (GO)
5.250%, 02/01/13 (b) 1,400 1,531
Illinois State Development Finance Authority,
Pollution Control, Series A,
Pre-refunded 07/01/06 @ 102 (RB)
7.375%, 07/01/21 (b) 500 569
Illinois State Development Finance Authority,
Waste Management Project (AMT) (RB)
5.850%, 02/01/07 1,000 1,085
Illinois State Educational Facilities Authority,
Augustana College,
Callable 10/01/07 @ 100 (CLE) (RB)
5.875%, 10/01/17 500 567
</Table>
49
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Illinois State Educational Facilities Authority,
Augustana College,
Callable 10/01/08 @ 100 (RB)
5.250%, 10/01/18 $ 1,000 $ 1,120
Illinois State Toll Highway Authority, Series A (RB)
6.300%, 01/01/12 1,000 1,201
McHenry County, Community Unit School
District #200, Woodstock, Series A,
Pre-refunded 01/01/08 @ 100 (FSA) (GO)
5.850%, 01/01/16 (b) 2,400 2,679
Metropolitan Pier & Exposition Authority,
McCormick Place, Illinois Dedicated State Tax,
Class B, Zero Coupon Bond (MBIA) (RB)
5.650%, 06/15/22 (c) 5,000 2,770
Northern Illinois University,
Auxiliary Facilities Systems, Partially
Pre-refunded 04/01/07 @ 100 (FGIC) (RB)
5.700%, 04/01/16 (b) 1,000 1,095
Rock Island, Friendship Manor Project (RB)
7.000%, 06/01/06 710 709
Rock Island, Friendship Manor Project,
Callable 04/01/04 @ 102 (RB)
7.200%, 06/01/13 400 401
Rockford Multifamily Housing, Rivers Edge
Apartments, Series A,
Callable 01/20/08 @ 102 (AMT) (GNMA) (RB)
5.875%, 01/20/38 1,215 1,267
Southern Illinois University, Housing & Auxiliary,
Zero Coupon Bond, Series A (MBIA) (RB)
5.500%, 04/01/20 (c) 2,280 1,049
Springfield Electric,
Callable 03/01/11 @ 101 (RB)
5.500%, 03/01/15 2,000 2,246
St. Clair County,
Callable 10/01/09 @ 102 (FGIC) (GO)
6.000%, 10/01/11 2,020 2,374
---------------
61,739
---------------
INDIANA - 2.7%
Crown Point, Multi-School Building Corporation,
First Mortgage (MBIA) (RB)
7.875%, 01/15/06 2,630 2,920
Indiana State Educational Facilities Authority,
St. Joseph's College Project,
Callable 10/01/09 @ 102 (RB)
7.000%, 10/01/29 1,000 1,063
Indiana State Municipal Power Agency,
Power Supply, Series B (MBIA) (RB)
6.000%, 01/01/11 1,000 1,178
6.000%, 01/01/12 1,000 1,184
Indiana Transportation Finance Authority,
Series A (AMBAC) (MLO) (RB)
5.000%, 11/01/07 2,000 2,206
Indiana Transportation Finance Authority,
Series A (AMBAC) (RB)
5.750%, 06/01/12 3,185 3,746
Lake County Redevelopment Authority,
Callable 02/01/05 @ 102 (MBIA) (MLO) (RB)
6.500%, 02/01/16 800 849
---------------
13,146
---------------
IOWA - 0.5%
Iowa Higher Education Loan Authority,
Central College Project,
Callable 10/01/11 @ 100 (RAAI) (RB)
5.500%, 10/01/31 $ 1,500 $ 1,574
Muscatine Electric, Escrowed to Maturity,
Callable 07/01/04 @ 100 (RB)
6.700%, 01/01/13 (d) 1,000 1,175
---------------
2,749
---------------
LOUISIANA - 1.5%
Baton Rouge Sales & Use Tax, Public
Improvements, Series A,
Callable 08/01/08 @ 101.50 (FGIC) (RB)
5.250%, 08/01/15 2,030 2,255
Jefferson Parish, Drain Sales Tax (AMBAC) (RB)
5.000%, 11/01/11 1,000 1,131
Jefferson Parish, Home Mortgage Authority,
Escrowed to Maturity,
Callable 08/01/04 @ 100 (FGIC) (FHA) (RB)
7.100%, 08/01/11 (d) 1,000 1,250
Lafayette, Public Improvement Sales Tax,
Series B (FGIC) (RB)
7.000%, 03/01/08 1,000 1,177
Louisiana Public Facilities Authority,
Tulane University of Louisiana, Series A-1,
Callable 11/15/07 @ 102 (MBIA) (RB)
5.100%, 11/15/14 1,500 1,665
---------------
7,478
---------------
MASSACHUSETTS - 2.3%
Boston Industrial Development Financing
Authority, Crosstown Center Project,
Callable 09/01/12 @ 102 (AMT) (RB)
6.500%, 09/01/35 2,500 2,499
Massachusetts Bay Transportation Authority,
Series A, Callable 03/01/07 @ 101 (FGIC) (RB)
5.000%, 03/01/12 5,795 6,362
Massachusetts Bay Transportation Authority,
Series A, Callable 03/01/09 @ 101 (FGIC) (RB)
5.750%, 03/01/21 2,000 2,323
---------------
11,184
---------------
MICHIGAN - 1.7%
Haslett Public School District,
Pre-refunded 05/01/07 @ 100 (GO) (MBIA)
5.700%, 05/01/16 (b) 1,200 1,340
Lanse Creuse, Public Schools,
Callable 05/01/07 @ 100 (AMBAC) (GO)
5.250%, 05/01/16 1,000 1,080
Thornapple Kellogg School Building & Site,
Callable 11/01/12 @ 100 (GO) (MQSBLF)
5.500%, 05/01/14 1,485 1,696
5.500%, 05/01/16 1,810 2,048
Ypsilanti School District,
Pre-refunded 05/01/07 @ 100 (FGIC) (GO)
5.600%, 05/01/12 (b) 2,000 2,227
---------------
8,391
---------------
MINNESOTA - 5.9%
Cuyuna Range Hospital District, Series A,
Callable 06/01/07 @ 102 (RB)
6.000%, 06/01/29 650 626
</Table>
50
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Edina Independent School District No. 273,
Callable 02/01/13 @ 100 (GO) (MBIA)
4.000%, 02/01/16 $ 1,000 $ 1,016
Edina Independent School District No. 273,
Callable 02/01/13 @ 100 (GO)
4.000%, 02/01/17 2,000 2,010
Fergus Falls Health Care Facilities Authority,
Series A, Callable 11/01/04 @ 102 (RB)
7.000%, 11/01/19 150 149
Glencoe Hospital Board,
Pre-refunded 08/01/04 @ 102 (RB)
6.750%, 04/01/16 (b) 485 503
Minneapolis Healthcare System,
Fairview Health Services, Series A,
Callable 05/15/12 @ 101 (RB)
5.625%, 05/15/32 7,000 7,411
Minnesota Agriculture & Economic
Development Board, Health Care System,
Series A, Callable 11/15/10 @ 101 (RB)
6.375%, 11/15/29 3,000 3,291
Minnesota State, Callable 08/01/07 @ 100 (GO)
4.900%, 08/01/14 4,000 4,343
Minnesota State Housing Finance Agency,
Single Family Housing (AMT) (RB)
4.400%, 07/01/07 1,835 1,960
Minnetonka Independent School District No. 276,
Series B,
Callable 02/15/14 @ 100 (GO) (MSDCEP)
4.000%, 02/01/19 1,820 1,798
4.000%, 02/01/20 1,880 1,837
Monticello, Big Lake Community Hospital,
Series C, Callable 12/01/12 @ 100 (RB)
6.200%, 12/01/22 2,995 3,141
St. Anthony Housing & Redevelopment Authority,
Callable 05/20/06 @ 102 (FHA) (GNMA) (RB)
6.250%, 11/20/25 1,000 1,099
---------------
29,184
---------------
MISSOURI - 0.7%
Cape Girardeau County Authority, Southeast
Missouri Hospital, Callable 06/01/12 @ 100 (RB)
5.750%, 06/01/32 2,500 2,605
Sugar Creek, Lafarge North America, Series A,
Callable 06/01/13 @ 101 (AMT) (RB)
5.650%, 06/01/37 1,000 1,014
---------------
3,619
---------------
NEBRASKA - 1.0%
Hastings Electrical Systems,
Callable 05/01/11 @ 100 (FSA) (RB)
5.000%, 01/01/15 1,000 1,088
Lancaster County, Hospital Authority,
Callable 06/01/11 @ 100 (AMBAC) (RB)
5.125%, 06/01/26 1,000 1,038
Nebraska Educational Finance Authority,
Concordia University Project,
Callable 12/15/08 @ 100 (RB)
5.250%, 12/15/15 500 518
5.350%, 12/15/18 540 556
Washington County Wastewater Facilities,
Cargill Inc. Project, Callable 11/01/12 @ 101 (RB)
5.900%, 11/01/27 1,700 1,834
---------------
5,034
---------------
NEVADA - 1.0%
Carson City, Carson-Tahoe Hospital Project,
Callable 09/01/12 @ 101 (RB)
5.750%, 09/01/31 $ 5,000 $ 5,022
---------------
NEW JERSEY - 2.3%
Camden County, Municipal Utilities Authority,
Series C, Callable 07/15/08 @ 101 (FGIC) (GO)
5.100%, 07/15/12 5,000 5,544
New Jersey Health Care Facilities,
Capital Health System, Series A,
Callable 07/01/13 @ 100 (RB)
5.375%, 07/01/33 3,095 3,123
New Jersey State Transportation System,
Series A, Callable 06/15/08 @ 100 (RB)
5.000%, 06/15/14 2,500 2,732
---------------
11,399
---------------
NEW YORK - 3.4%
New York, Series C, Callable 03/15/12 @ 100 (GO)
5.250%, 03/15/32 3,590 3,749
New York, Series C,
Pre-refunded 03/15/12 @ 100 (GO)
5.250%, 03/15/32 (b) 6,410 7,325
New York State Thruway Authority, Series A,
Callable 04/01/07 @ 102 (AMBAC) (RB)
5.250%, 04/01/14 5,000 5,528
---------------
16,602
---------------
NORTH DAKOTA - 0.4%
Fargo Health Systems, Meritcare Obligated Group,
Series A, Callable 06/01/10 @ 101 (FSA) (RB)
5.600%, 06/01/21 2,000 2,187
---------------
OHIO - 2.6%
Cincinnati Water System,
Callable 06/01/11 @ 100 (RB)
5.000%, 12/01/20 125 132
Cleveland Waterworks, Series H,
Pre-refunded 01/01/06 @ 102 (MBIA) (RB)
5.750%, 01/01/16 (b) 1,460 1,595
Greater Cleveland Regional Transportation
Authority,
Pre-refunded 12/01/06 @ 101 (FGIC) (GO)
5.650%, 12/01/16 (b) 2,500 2,784
Lucas County Port Authority, Crocker Park Public
Improvement Project,
Callable 12/01/13 @ 102 (RB)
5.250%, 12/01/23 2,000 2,037
Ohio State Building Authority,
Administration Building Fund, Series A,
Pre-refunded 10/01/04 @ 102 (MBIA) (MLO) (RB)
6.000%, 10/01/08 (b) 1,000 1,045
6.000%, 10/01/09 (b) 1,225 1,280
Ohio State Higher Education, Series A,
Callable 02/01/11 @ 100 (GO)
5.000%, 02/01/19 1,095 1,162
Ohio State Higher Education, Series B,
Callable 11/01/11 @ 100 (GO)
5.000%, 11/01/16 1,500 1,632
Ohio State Water Development Authority,
Callable 06/01/05 @ 101 (MBIA) (RB)
5.250%, 12/01/09 1,000 1,057
---------------
12,724
---------------
</Table>
51
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
OREGON - 1.4%
Washington County Unified Sewer Agency,
Series 1 (FGIC) (RB)
5.750%, 10/01/10 $ 6,110 $ 7,167
---------------
PENNSYLVANIA - 1.8%
Bucks County Water & Sewer Authority,
Callable 12/01/06 @ 100 (FGIC) (RB)
5.550%, 12/01/17 1,000 1,088
Chester Upland School Authority, Series A,
Callable 09/01/07 @ 100 (FSA) (RB)
5.250%, 09/01/17 2,000 2,170
Pennsylvania State,
Callable 03/15/07 @ 101.50 (AMBAC) (GO)
5.125%, 09/15/11 5,000 5,490
---------------
8,748
---------------
PUERTO RICO - 0.1%
Puerto Rico Public Improvements,
Callable 07/01/10 @ 100 (GO) (MBIA)
5.750%, 07/01/26 500 586
---------------
RHODE ISLAND - 1.1%
Rhode Island State, Series A,
Callable 08/01/07 @ 101 (GO) (MBIA)
5.125%, 08/01/12 5,055 5,634
---------------
SOUTH CAROLINA - 1.0%
Lexington County Health Services District Inc.,
Lexington Medical Center,
Callable 11/01/13 @ 100 (RB)
5.500%, 11/01/23 2,000 2,118
South Carolina Jobs Economic Development
Authority, Palmetto Health Alliance, Series A,
Callable 08/01/13 @ 100 (RB)
6.125%, 08/01/23 1,250 1,319
South Carolina Jobs Economic Development
Authority, Palmetto Health Alliance, Series C,
Callable 08/01/13 @ 100 (RB)
6.375%, 08/01/34 1,250 1,328
---------------
4,765
---------------
SOUTH DAKOTA - 1.2%
Deadwood, Callable 11/01/12 @ 100 (ACA) (COP)
4.750%, 11/01/17 1,500 1,540
Sioux Falls, Dow Rummel Village Project,
Series A, Callable 11/15/12 @ 100 (RB)
6.625%, 11/15/23 2,200 2,232
South Dakota Economic Development Finance
Authority, DTS Inc. Project, Series A,
Callable 04/01/09 @ 102 (AMT) (RB)
5.500%, 04/01/19 1,055 1,083
South Dakota State Health & Educational
Facilities Authority,
Callable 07/01/06 @ 102 (MBIA) (RB)
6.000%, 07/01/14 1,000 1,105
---------------
5,960
---------------
TENNESSEE - 2.4%
Johnson City Health & Educational Facilities
Authority, Series A,
Callable 07/01/12 @ 103 (RB)
7.500%, 07/01/33 2,500 2,878
Shelby County Health, Educational & Housing
Facilities Board, Methodist Healthcare,
Callable 09/01/12 @ 100 (RB)
6.500%, 09/01/21 (e) $ 3,000 $ 3,367
Sullivan County Health, Educational & Housing
Facilities Board, Wellmont Health Systems
Project, Callable 09/01/12 @ 101 (RB)
6.250%, 09/01/32 5,500 5,797
---------------
12,042
---------------
TEXAS - 15.5%
Abilene Health Facilities Development,
Sears Methodist Retirement Project,
Callable 05/15/09 @ 101 (RB)
5.875%, 11/15/18 500 503
6.000%, 11/15/29 2,000 1,944
Abilene Health Facilities Development,
Sears Methodist Retirement Project, Series A,
Callable 11/15/08 @ 101 (RB)
5.875%, 11/15/18 2,500 2,512
Abilene Health Facilities Development,
Sears Methodist Retirement Project, Series A,
Callable 11/15/13 @ 101 (RB)
7.000%, 11/15/33 4,000 4,205
Bexar County Housing Finance Authority,
American Opportunity Housing, Series A,
Callable 01/01/11 @ 102 (MBIA) (RB)
5.800%, 01/01/31 2,000 2,113
Brazos River Authority,
Callable 04/01/13 @ 101 (AMT) (RB)
7.700%, 04/01/33 2,500 2,852
Brazos River Harbor District, Dow Chemical,
Series A-5,
Mandatory Put 05/15/12 @ 100 (AMT) (RB)
5.700%, 05/15/33 2,500 2,846
Crawford Education Facilities Corp.,
University of St. Thomas Project,
Callable 10/01/12 @ 100 (RB)
5.250%, 10/01/22 1,300 1,318
5.375%, 10/01/27 1,750 1,772
Cypress-Fairbanks Independent School District,
Callable 02/15/10 @ 100 (GO) (PSFG) (STAID)
5.500%, 02/15/18 5,000 5,566
Fort Bend Independent School District,
Pre-refunded 02/15/05 @ 100 (GO) (PSFG)
5.000%, 02/15/14 (b) 500 563
Harris County Health Facilities Development,
Memorial Hospital Systems Project, Series A,
Callable 06/01/07 @ 102 (MBIA) (RB)
5.500%, 06/01/17 8,000 8,721
Laredo Independent School District (GO) (PSFG)
6.750%, 08/01/09 2,290 2,752
Nueces County Housing Financial Corporation,
Dolphins Landing Apartments Project, Series A,
Callable 07/01/10 @ 102 (RB)
6.875%, 07/01/30 1,860 1,865
Red River Authority Sewer & Solidwaste Disposal,
Callable 02/01/12 @ 101 (AMT) (RB)
6.100%, 02/01/22 3,775 3,911
Remington Municipal Utility District #1, Series A,
Callable 09/01/08 @ 100 (GO) (RAAI)
5.800%, 09/01/25 1,000 1,066
</Table>
52
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------------------------------
Sam Rayburn Municipal Power Agency,
Callable 10/01/12 @ 100 (RAAI) (RB)
5.750%, 10/01/21 $ 3,800 $ 4,161
San Antonio Independent School District,
Callable 08/15/08 @ 100 (GO) (PSFG)
5.125%, 08/15/14 6,000 6,611
Spring Branch Independent School District,
Callable 02/01/10 @ 100 (GO) (PSFG)
5.750%, 02/01/25 2,400 2,691
Tarrant County Housing Financial Corporation,
Multifamily Housing, Fair Oaks,
Callable 07/01/10 @ 102 (RB)
6.750%, 07/01/20 500 265
6.875%, 07/01/30 1,000 530
Texas Employment Community,
Callable 07/15/04 @ 101 (COP) (MLO)
8.250%, 08/01/04 40 41
8.300%, 02/01/05 40 41
8.300%, 08/01/05 45 46
8.350%, 02/01/06 20 21
8.350%, 08/01/06 50 51
8.400%, 08/01/07 25 26
8.450%, 08/01/08 55 56
Texas Employment Community,
Emnora Lane Project (COP) (MLO)
7.850%, 05/01/04 10 10
7.850%, 11/01/04 25 25
7.900%, 05/01/05 25 25
7.900%, 11/01/05 25 25
8.000%, 11/01/06 30 30
8.050%, 05/01/07 20 20
Texas State, Water Development,
Callable 08/01/06 @ 100 (GO)
5.400%, 08/01/21 6,750 7,194
Texas Water Development Board, Series A,
Callable 07/15/06 @ 100 (RB)
5.500%, 07/15/10 2,500 2,704
University of Texas Permanent University Fund,
Callable 07/01/08 @ 100 (PUFG) (RB)
5.000%, 07/01/14 7,060 7,852
---------------
76,934
---------------
UTAH - 0.2%
Intermountain Power Agency, Utah Power Supply,
Series A (AMBAC) (RB)
6.500%, 07/01/11 365 445
Intermountain Power Agency, Utah Power Supply,
Series A, Escrowed to Maturity (AMBAC) (RB)
6.500%, 07/01/11 (d) 635 777
---------------
1,222
---------------
VIRGINIA - 0.2%
Arlington County Industrial Development Authority,
Berkeley Apartments,
Callable 12/01/10 @ 102 (AMT) (FNMA) (RB)
5.850%, 12/01/20 1,000 1,091
---------------
WASHINGTON - 7.1%
Chelan County Public Utility District No.1,
Chelan Hydro Systems, Series A,
Callable 07/01/12 @ 100 (AMBAC) (AMT) (RB)
5.450%, 07/01/37 4,000 4,212
Energy Northwest, Washington Wind Project,
Callable 01/01/07 @ 103 (RB)
5.600%, 07/01/15 4,640 4,831
King County, Series F,
Callable 12/01/07 @ 100 (GO)
5.125%, 12/01/14 $ 5,000 $ 5,489
King County School District #415,
Callable 12/01/07 @ 100 (GO) (MBIA)
5.350%, 12/01/16 4,050 4,431
Snohomish County Public Utilities District #1,
Escrowed to Maturity,
Callable 04/01/04 @ 100 (RB)
6.750%, 01/01/12 (d) 1,000 1,191
Washington State, Series C,
Callable 01/01/07 @ 100 (GO)
5.500%, 01/01/17 4,190 4,525
Washington State Motor Vehicle Fuel Tax,
Series D, Callable 01/01/07 @ 100 (FGIC) (GO)
5.375%, 01/01/22 8,000 8,528
Washington State Public Power Supply System,
Nuclear Project #3, Series A,
Callable 07/01/07 @ 102 (FSA) (RB)
5.250%, 07/01/16 1,000 1,099
Washington State Public Power Supply System,
Nuclear Project #3, Series B (RB)
7.125%, 07/01/16 600 778
---------------
35,084
---------------
WISCONSIN - 4.8%
Amery, Apple River Hospital Project,
Callable 06/01/08 @ 100 (RB)
5.700%, 06/01/13 1,440 1,475
Wisconsin State, Series C,
Pre-refunded 05/01/07 @ 100 (FGIC) (GO)
5.500%, 05/01/10 (b) 2,095 2,326
Wisconsin State Health & Educational Facilities
Authority, Attic Angel Obligation Group,
Callable 11/15/08 @ 102 (RB)
5.750%, 11/15/27 1,000 906
Wisconsin State Health & Educational Facilities
Authority, Beloit Memorial Hospital,
Callable 04/01/04 @ 102 (RB)
5.800%, 07/01/09 555 567
Wisconsin State Health & Educational Facilities
Authority, Franciscan Skemp Medical Center,
Callable 11/15/05 @ 102 (RB)
6.125%, 11/15/15 1,000 1,081
Wisconsin State Health & Educational Facilities
Authority, Marshfield Clinic, Series B,
Callable 02/15/12 @ 100 (RB)
6.000%, 02/15/25 3,500 3,619
Wisconsin State Health & Educational Facilities
Authority, Meriter Hospital Inc.,
Callable 12/01/06 @ 102 (MBIA) (RB)
6.000%, 12/01/17 2,000 2,224
Wisconsin State Health & Educational Facilities
Authority, New Castle Place Project, Series A,
Callable 12/01/11 @ 101 (RB)
7.000%, 12/01/31 2,000 2,042
Wisconsin State Health & Educational Facilities
Authority, Southwest Health Center, Series A,
Callable 04/01/14 @ 100 (RB)
6.250%, 04/01/34 (f) 2,000 1,958
Wisconsin State Health & Educational Facilities
Authority, Synergy Health Inc.,
Callable 08/15/13 @ 100 (RB)
6.000%, 11/15/23 1,500 1,567
</Table>
53
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ------------------------------------------------------------------------------------------------
Wisconsin State Health & Educational Facilities
Authority, Wheaton Franciscan Services,
Callable 02/15/12 @ 100 (RB)
5.750%, 08/15/30 $ 5,500 $ 5,837
---------------
23,602
---------------
WYOMING - 0.7%
Teton County Hospital District, St. John's Medical
Center, Callable 06/01/12 @ 101 (RB)
6.750%, 12/01/22 2,100 2,149
6.750%, 12/01/27 1,500 1,522
---------------
3,671
---------------
TOTAL MUNICIPAL BONDS
(Cost $445,207) 482,619
---------------
AFFILIATED MONEY MARKET FUND - 1.8%
First American Tax Free Obligations
Fund, Cl Z (g) 9,008,852 9,009
---------------
TOTAL AFFILIATED MONEY MARKET FUND
(Cost $9,009) 9,009
---------------
TOTAL INVESTMENTS - 99.2%
(Cost $454,216) 491,628
---------------
OTHER ASSETS AND LIABILITIES, NET - 0.8% 3,734
---------------
TOTAL NET ASSETS - 100.0% $ 495,362
---------------
</Table>
(a) Variable Rate Security - The rate shown is the rate in effect as of March
31, 2004.
(b) Pre-refunded issues are usually backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(c) The rate shown is the effective yield at the time of purchase.
(d) Escrowed to Maturity issues are usually backed by U.S. Government
obligations. If callable, these bonds may still be subject to call at the
call date and price indicated.
(e) Inverse Floating Rate Security - Security pays interest at rates that
increase (decrease) in the same magnitude as, or in a multiple of, a
decrease (increase) in the market rate. See note 2 in Notes to Financial
Statements.
(f) Security purchased on a when-issued basis. On March 31, 2004, the total
cost of investments purchased on a when-issued basis was $1,981,260. See
note 2 in Notes to Financial Statements.
(g) Investment in affiliated security. This money market fund is advised by
U.S. Bancorp Asset Management, Inc., which also serves as advisor for this
Fund. See note 3 in Notes to Financial Statements.
ACA - American Capital Access
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market value
of securities subject to the AMT was $27,626,202, which represents 5.6% of
net assets.
Cl - Class
CLE - Connie Lee Insurance Company
CMI - California Mortgage Insurance Program
COP - Certificate of Participation
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Authority
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
GO - General Obligation
MBIA - Municipal Bond Insurance Association
MLO - Municipal Lease Obligation
MQSBLF - Michigan Qualified School Board Loan Fund Program
MSDCEP - Minnesota School District Credit Enhancement Program
PSFG - Permanent School Fund Guarantee
PUFG - Permanent University Fund Guarantee
RAAI - Radian Asset Assurance Inc.
RB - Revenue Bond
STAID - State Aid Withholding
The accompanying notes are an integral part of the financial statements.
54
<Page>
(This page has been left blank intentionally.)
<Page>
STATEMENTS OF ASSETS AND LIABILITIES March 31, 2004 (unaudited), in thousands,
except per share data
<Table>
<Caption>
CALIFORNIA COLORADO
ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE COLORADO
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated
securities, at value* $ 21,185 $ 49,673 $ 27,849 $ 60,194 $ 25,519
Investments in affiliated money
market fund, at value** -- -- -- 377 186
Dividends and interest receivable 264 562 325 824 343
Receivable for investment
securities sold -- -- -- 340 --
Receivable for capital shares sold -- -- 1 98 --
Prepaid expenses and other assets 7 6 6 5 6
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 21,456 50,241 28,181 61,838 26,054
=============================================================================================================================
LIABILITIES:
Payable for investment securities
purchased -- -- -- -- --
Payable for capital shares redeemed -- 10 10 1,005 13
Payable for advisory,
co-administration, and custodian
fees 8 30 11 39 11
Payable for distribution and
shareholder servicing fees 2 1 1 2 5
Accrued expenses and other
liabilities -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 10 41 22 1,046 29
=============================================================================================================================
NET ASSETS $ 21,446 $ 50,200 $ 28,159 $ 60,792 $ 26,025
=============================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 19,243 $ 46,415 $ 25,893 $ 55,785 $ 23,205
Undistributed net investment income 44 35 21 92 67
Accumulated net realized gain (loss)
on investments 111 182 54 (90) 44
Net unrealized appreciation of
investments 2,048 3,568 2,191 5,005 2,709
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 21,446 $ 50,200 $ 28,159 $ 60,792 $ 26,025
=============================================================================================================================
Investments in unaffiliated
securities, at cost* $ 19,137 $ 46,105 $ 25,658 $ 55,189 $ 22,810
Investments in affiliated money
market fund, at cost** $ -- $ -- $ -- $ 377 $ 186
CLASS A:
Net assets $ 10,037 $ 4,286 $ 10,653 $ 16,567 $ 12,599
Shares issued and outstanding
($0.0001 par value -- 2 billion
authorized) 872 403 933 1,492 1,087
Net asset value and redemption price
per share $ 11.50 $ 10.62 $ 11.41 $ 11.10 $ 11.59
Maximum offering price per share (1) $ 12.01 $ 10.86 $ 11.92 $ 11.36 $ 12.10
CLASS C:
Net assets $ 1,655 -- $ 990 -- $ 3,776
Shares issued and outstanding
($0.0001 par value-- 2 billion
authorized) 144 -- 87 -- 326
Net asset value, offering price, and
redemption price per share (2) $ 11.49 -- $ 11.43 -- $ 11.57
CLASS Y:
Net assets $ 9,754 $ 45,914 $ 16,516 $ 44,225 $ 9,650
Shares issued and outstanding
($0.0001 par value-- 2 billion
authorized) 848 4,316 1,447 3,993 832
Net asset value, offering price,
and redemption price per share $ 11.51 $ 10.64 $ 11.42 $ 11.08 $ 11.61
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge. For a description of front-end sales charges, see
note 1 in Notes to Financial Statements.
(2) Class C has a contingent deferred sales charge. For a description of this
sales charge, see notes 1 and 3 in Notes to Financial Statements.
The accompanying notes are an integral part of the financial statements.
56
<Page>
<Table>
<Caption>
MINNESOTA
INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI NEBRASKA
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated
securities, at value* $ 713,178 $ 267,817 $ 178,949 $ 188,641 $ 35,891
Investments in affiliated money
market fund, at value** 2,589 -- -- 1,867 455
Dividends and interest receivable 9,169 2,889 2,323 2,375 465
Receivable for investment
securities sold -- -- -- -- --
Receivable for capital shares sold 369 476 69 6 75
Prepaid expenses and other assets 11 7 8 7 7
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 725,316 271,189 181,349 192,896 36,893
=============================================================================================================================
LIABILITIES:
Payable for investment securities
purchased 1,496 -- -- 1,338 489
Payable for capital shares redeemed 1,032 189 36 451 --
Payable for advisory,
co-administration, and custodian
fees 449 165 111 118 15
Payable for distribution and
shareholder servicing fees 5 4 27 6 2
Accrued expenses and other
liabilities 3 -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 2,985 358 174 1,913 506
=============================================================================================================================
NET ASSETS $ 722,331 $ 270,831 $ 181,175 $ 190,983 $ 36,387
=============================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 662,132 $ 252,925 $ 168,697 $ 177,670 $ 34,243
Undistributed net investment income 846 27 252 108 57
Accumulated net realized gain (loss)
on investments 822 207 883 251 17
Net unrealized appreciation of
investments 58,531 17,672 11,343 12,954 2,070
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 722,331 $ 270,831 $ 181,175 $ 190,983 $ 36,387
=============================================================================================================================
Investments in unaffiliated
securities, at cost* $ 654,647 $ 250,145 $ 167,606 $ 175,687 $ 33,821
Investments in affiliated money
market fund, at cost** $ 2,589 $ -- $ -- $ 1,867 $ 455
CLASS A:
Net assets $ 36,221 $ 34,565 $ 123,034 $ 27,932 $ 4,621
Shares issued and outstanding
($0.0001 par value -- 2 billion
authorized) 3,204 3,315 10,824 2,251 431
Net asset value and redemption price
per share $ 11.31 $ 10.43 $ 11.37 $ 12.41 $ 10.71
Maximum offering price per share (1) $ 11.57 $ 10.67 $ 11.87 $ 12.96 $ 11.19
CLASS C:
Net assets -- -- $ 11,801 $ 255 $ 1,782
Shares issued and outstanding
($0.0001 par value-- 2 billion
authorized) -- -- 1,042 21 168
Net asset value, offering price, and
redemption price per share (2) -- -- $ 11.33 $ 12.38 $ 10.64
CLASS Y:
Net assets $ 686,110 $ 236,266 $ 46,340 $ 162,796 $ 29,984
Shares issued and outstanding
($0.0001 par value-- 2 billion
authorized) 60,783 22,759 4,081 13,117 2,800
Net asset value, offering price,
and redemption price per share $ 11.29 $ 10.38 $ 11.35 $ 12.41 $ 10.71
- -----------------------------------------------------------------------------------------------------------------------------
<Caption>
OREGON
OHIO INTERMEDIATE SHORT
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -----------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated
securities, at value* $ 40,016 $ 147,083 $ 437,380 $ 482,619
Investments in affiliated money
market fund, at value** -- 1,246 5,718 9,009
Dividends and interest receivable 616 2,037 5,514 6,886
Receivable for investment
securities sold -- -- -- 249
Receivable for capital shares sold -- 10 289 128
Prepaid expenses and other assets 5 6 8 14
- -----------------------------------------------------------------------------------------------------------
TOTAL ASSETS 40,637 150,382 448,909 498,905
===========================================================================================================
LIABILITIES:
Payable for investment securities
purchased -- -- 5,000 2,229
Payable for capital shares redeemed -- 1,319 157 994
Payable for advisory,
co-administration, and custodian
fees 17 92 229 308
Payable for distribution and
shareholder servicing fees -- 1 1 12
Accrued expenses and other
liabilities -- -- -- --
- -----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 17 1,412 5,387 3,543
===========================================================================================================
NET ASSETS $ 40,620 $ 148,970 $ 443,522 $ 495,362
===========================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 38,747 $ 138,557 $ 432,622 $ 455,213
Undistributed net investment income 27 42 207 260
Accumulated net realized gain (loss)
on investments 29 293 48 2,477
Net unrealized appreciation of
investments 1,817 10,078 10,645 37,412
- -----------------------------------------------------------------------------------------------------------
NET ASSETS $ 40,620 $ 148,970 $ 443,522 $ 495,362
===========================================================================================================
Investments in unaffiliated
securities, at cost* $ 38,199 $ 137,005 $ 426,735 $ 445,207
Investments in affiliated money
market fund, at cost** $ -- $ 1,246 $ 5,718 $ 9,009
CLASS A:
Net assets $ 1,359 $ 9,210 $ 6,957 $ 42,596
Shares issued and outstanding
($0.0001 par value -- 2 billion
authorized) 129 886 691 3,774
Net asset value and redemption price
per share $ 10.54 $ 10.39 $ 10.07 $ 11.29
Maximum offering price per share (1) $ 11.01 $ 10.63 $ 10.30 $ 11.79
CLASS C:
Net assets $ 247 -- -- $ 3,165
Shares issued and outstanding
($0.0001 par value-- 2 billion
authorized) 24 -- -- 282
Net asset value, offering price, and
redemption price per share (2) $ 10.44 -- -- $ 11.24
CLASS Y:
Net assets $ 39,014 $ 139,760 $ 436,565 $ 449,601
Shares issued and outstanding
($0.0001 par value-- 2 billion
authorized) 3,699 13,444 43,366 39,797
Net asset value, offering price,
and redemption price per share $ 10.55 $ 10.40 $ 10.07 $ 11.30
- -----------------------------------------------------------------------------------------------------------
</Table>
57
<Page>
STATEMENTS OF OPERATIONS For the six months ended March 31, 2004 (unaudited), in
thousands
<Table>
<Caption>
CALIFORNIA COLORADO
ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE COLORADO
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest from unaffiliated
securities $ 539 $ 1,132 $ 662 $ 1,539 $ 653
Interest from affiliated money
market fund -- -- -- 3 2
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 539 1,132 662 1,542 655
=============================================================================================================================
EXPENSES:
Investment advisory fees 56 122 70 161 67
Co-administration fees and expenses
(including per account transfer
agency fees) 33 68 40 92 38
Custodian fees 1 2 1 3 1
Directors' fees -- -- -- 1 --
Registration fees 5 3 3 3 3
Professional fees -- 1 -- 1 --
Printing -- 1 -- 1 --
Other -- 1 -- 1 1
Distribution and shareholder
servicing fees - Class A 14 5 14 23 16
Distribution and shareholder
servicing fees - Class C 9 -- 6 -- 20
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 118 203 134 286 146
=============================================================================================================================
Less: Fee waivers (43) (29) (47) (46) (50)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 75 174 87 240 96
=============================================================================================================================
INVESTMENT INCOME - NET 464 958 575 1,302 559
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS - NET:
Net realized gain on investments 111 185 78 373 44
Net change in unrealized
appreciation or depreciation of
investments 327 (132) 187 (312) 186
- -----------------------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS 438 53 265 61 230
=============================================================================================================================
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 902 $ 1,011 $ 840 $ 1,363 $ 789
=============================================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
58
<Page>
<Table>
<Caption>
MINNESOTA
INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI NEBRASKA
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest from unaffiliated
securities $ 17,321 $ 6,179 $ 4,366 $ 4,449 $ 806
Interest from affiliated money
market fund 26 -- 7 6 3
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 17,347 6,179 4,373 4,455 809
=============================================================================================================================
EXPENSES:
Investment advisory fees 1,818 673 458 485 89
Co-administration fees and expenses
(including per account transfer
agency fees) 1,004 372 255 270 50
Custodian fees 36 13 9 10 2
Directors' fees 6 2 2 2 --
Registration fees 12 4 6 6 3
Professional fees 13 5 3 4 1
Printing 8 3 2 2 --
Other 12 5 3 3 1
Distribution and shareholder
servicing fees - Class A 44 41 155 35 6
Distribution and shareholder
servicing fees - Class C -- -- 60 1 9
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 2,953 1,118 953 818 161
=============================================================================================================================
Less: Fee waivers (382) (151) (117) (102) (60)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 2,571 967 836 716 101
=============================================================================================================================
INVESTMENT INCOME - NET 14,776 5,212 3,537 3,739 708
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS - NET:
Net realized gain on investments 1,507 219 932 270 17
Net change in unrealized
appreciation or depreciation of
investments (330) (1) 1,060 774 276
- -----------------------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS 1,177 218 1,992 1,044 293
=============================================================================================================================
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 15,953 $ 5,430 $ 5,529 $ 4,783 $ 1,001
=============================================================================================================================
<Caption>
OREGON
OHIO INTERMEDIATE SHORT
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -----------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest from unaffiliated
securities $ 838 $ 3,324 $ 6,894 $ 12,686
Interest from affiliated money
market fund -- 3 45 26
- -----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 838 3,327 6,939 12,712
===========================================================================================================
EXPENSES:
Investment advisory fees 101 377 1,052 1,251
Co-administration fees and expenses
(including per account transfer
agency fees) 57 209 578 693
Custodian fees 2 8 21 25
Directors' fees -- 1 4 4
Registration fees 2 3 7 10
Professional fees 1 3 8 9
Printing 1 2 4 5
Other 1 3 7 9
Distribution and shareholder
servicing fees - Class A 1 11 9 53
Distribution and shareholder
servicing fees - Class C 1 -- -- 24
- -----------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 167 617 1,690 2,083
===========================================================================================================
Less: Fee waivers (64) (81) (422) (263)
- -----------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 103 536 1,268 1,820
===========================================================================================================
INVESTMENT INCOME - NET 735 2,791 5,671 10,892
- -----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS - NET:
Net realized gain on investments 29 346 51 2,509
Net change in unrealized
appreciation or depreciation of
investments 298 296 (2,442) 2,637
- -----------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS 327 642 (2,391) 5,146
===========================================================================================================
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,062 $ 3,433 $ 3,280 $ 16,038
===========================================================================================================
</Table>
59
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
CALIFORNIA
ARIZONA INTERMEDIATE
TAX FREE FUND TAX FREE FUND
- ---------------------------------------------------------------------------------------
10/1/03 10/1/02 10/1/03 10/1/02
TO TO TO TO
3/31/04 9/30/03 3/31/04 9/30/03
- ---------------------------------------------------------------------------------------
(unaudited) (unaudited)
OPERATIONS:
Investment income - net $ 464 $ 1,098 $ 958 $ 1,989
Net realized gain on investments 111 99 185 161
Net change in unrealized
appreciation or depreciation of
investments 327 (262) (132) (843)
- ---------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 902 935 1,011 1,307
- ---------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (218) (551) (80) (174)
Class C (30) (88) -- --
Class Y (205) (443) (879) (1,791)
Net realized gain on investments:
Class A (50) (32) (14) (10)
Class C (8) (6) -- --
Class Y (41) (29) (141) (93)
- ---------------------------------------------------------------------------------------
Total distributions (552) (1,149) (1,114) (2,068)
=======================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 1,230 5,152 735 1,412
Reinvestment of distributions 235 548 76 145
Payments for redemptions (3,521) (6,083) (778) (2,080)
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class A transactions (2,056) (383) 33 (523)
- ---------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- 385 -- --
Reinvestment of distributions 27 90 -- --
Payments for redemptions (254) (1,494) -- --
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class C transactions (227) (1,019) -- --
- ---------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 1,609 3,295 4,008 4,535
Reinvestment of distributions 18 37 28 42
Payments for redemptions (1,277) (4,666) (2,628) (4,513)
Shares issued in connection with
the acquisition of Common Trust
Fund net assets -- -- -- --
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class Y transactions 350 (1,334) 1,408 64
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from capital share transactions (1,933) (2,736) 1,441 (459)
- ---------------------------------------------------------------------------------------
Total increase (decrease) in net
assets (1,583) (2,950) 1,338 (1,220)
NET ASSETS AT BEGINNING OF PERIOD 23,029 25,979 48,862 50,082
=======================================================================================
NET ASSETS AT END OF PERIOD $ 21,446 $ 23,029 $ 50,200 $ 48,862
=======================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME
AT END OF PERIOD $ 44 $ 33 $ 35 $ 36
=======================================================================================
</Table>
(1) See note 4 in Notes to Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
60
<Page>
<Table>
<Caption>
COLORADO
CALIFORNIA INTERMEDIATE COLORADO
TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -----------------------------------------------------------------------------------------------------------------
10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02
TO TO TO TO TO TO
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 $ 575 $ 1,164 $ 1,302 $ 2,801 $ 559 $ 1,276
Net realized gain on investments 78 186 373 9 44 224
Net change in unrealized
appreciation or depreciation of
investments 187 (540) (312) (128) 186 (518)
- -----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 840 810 1,363 2,682 789 982
- -----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (221) (492) (355) (879) (272) (673)
Class C (21) (41) -- -- (78) (159)
Class Y (345) (632) (918) (2,017) (216) (415)
Net realized gain on investments:
Class A (84) (76) -- -- (90) --
Class C (9) (7) -- -- (29) --
Class Y (117) (77) -- -- (68) --
- -----------------------------------------------------------------------------------------------------------------
Total distributions (797) (1,325) (1,273) (2,896) (753) (1,247)
=================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 1,126 1,401 1,198 19,547 748 1,122
Reinvestment of distributions 251 481 247 681 330 625
Payments for redemptions (1,882) (3,414) (7,438) (12,878) (2,338) (7,321)
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class A transactions (505) (1,532) (5,993) 7,350 (1,260) (5,574)
- -----------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 202 153 -- -- 210 1,375
Reinvestment of distributions 27 47 -- -- 102 141
Payments for redemptions (345) (189) -- -- (824) (934)
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class C transactions (116) 11 -- -- (512) 582
- -----------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 2,145 7,475 1,087 10,796 797 1,670
Reinvestment of distributions 21 51 4 11 11 14
Payments for redemptions (916) (3,925) (4,805) (11,176) (690) (1,366)
Shares issued in connection with
the acquisition of Common Trust
Fund net assets -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class Y transactions 1,250 3,601 (3,714) (369) 118 318
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from capital share transactions 629 2,080 (9,707) 6,981 (1,654) (4,674)
- -----------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets 672 1,565 (9,617) 6,767 (1,618) (4,939)
NET ASSETS AT BEGINNING OF PERIOD 27,487 25,922 70,409 63,642 27,643 32,582
=================================================================================================================
NET ASSETS AT END OF PERIOD $ 28,159 $ 27,487 $ 60,792 $ 70,409 $ 26,025 $ 27,643
=================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME
AT END OF PERIOD $ 21 $ 33 $ 92 $ 63 $ 67 $ 74
=================================================================================================================
<Caption>
MINNESOTA
INTERMEDIATE INTERMEDIATE
TAX FREE FUND TAX FREE FUND
- ---------------------------------------------------------------------------------------
10/1/03 10/1/02 10/1/03 10/1/02
TO TO TO TO
3/31/04 9/30/03 3/31/04 9/30/03
- ---------------------------------------------------------------------------------------
(unaudited) (unaudited)
OPERATIONS:
Investment income - net $ 14,776 $ 29,232 $ 5,212 $ 10,730
Net realized gain on investments 1,507 1,153 219 584
Net change in unrealized
appreciation or depreciation of
investments (330) 2,929 (1) (1,539)
- ---------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 15,953 33,314 5,430 9,775
- ---------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (683) (1,224) (620) (1,050)
Class C -- -- -- --
Class Y (13,831) (27,420) (4,690) (10,004)
Net realized gain on investments:
Class A (38) -- (59) (37)
Class C -- -- -- --
Class Y (799) -- (444) (395)
- ---------------------------------------------------------------------------------------
Total distributions (15,351) (28,644) (5,813) (11,486)
=======================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 10,003 15,542 8,226 20,400
Reinvestment of distributions 576 935 484 775
Payments for redemptions (8,585) (12,029) (5,172) (9,945)
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class A transactions 1,994 4,448 3,538 11,230
- ---------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- -- -- --
Reinvestment of distributions -- -- -- --
Payments for redemptions -- -- -- --
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class C transactions -- -- -- --
- ---------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 58,128 133,415 13,504 39,846
Reinvestment of distributions 1,390 1,827 193 331
Payments for redemptions (71,008) (141,567) (16,023) (51,205)
Shares issued in connection with
the acquisition of Common Trust
Fund net assets -- 213,002 -- --
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class Y transactions (11,490) 206,677 (2,326) (11,028)
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from capital share transactions (9,496) 211,125 1,212 202
- ---------------------------------------------------------------------------------------
Total increase (decrease) in net
assets (8,894) 215,795 829 (1,509)
NET ASSETS AT BEGINNING OF PERIOD 731,225 515,430 270,002 271,511
=======================================================================================
NET ASSETS AT END OF PERIOD $ 722,331 $ 731,225 $ 270,831 $ 270,002
=======================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME
AT END OF PERIOD $ 846 $ 584 $ 27 $ 125
=======================================================================================
</Table>
61
<Page>
<Table>
<Caption>
MINNESOTA MISSOURI
TAX FREE FUND TAX FREE FUND
- ---------------------------------------------------------------------------------------
10/1/03 10/1/02 10/1/03 10/1/02
TO TO TO TO
3/31/04 9/30/03 3/31/04 9/30/03
- ---------------------------------------------------------------------------------------
(unaudited) (unaudited)
OPERATIONS:
Investment income - net $ 3,537 $ 8,269 $ 3,739 $ 7,622
Net realized gain on investments 932 1,349 270 699
Net realized loss on redemption
in-kind -- -- -- (102)
Net increase from payment by
affiliate and net losses realized
on the disposal of investments in
violation of restrictions (2) -- -- -- --
Net change in unrealized
appreciation or depreciation of
investments 1,060 (2,480) 774 (482)
- ---------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 5,529 7,138 4,783 7,737
- ---------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (2,524) (5,192) (512) (1,017)
Class C (221) (450) (4) (8)
Class Y (1,014) (2,153) (3,199) (6,513)
Net realized gain on investments:
Class A (947) (307) (75) (138)
Class C (93) (28) (1) (1)
Class Y (358) (121) (437) (721)
- ---------------------------------------------------------------------------------------
Total distributions (5,157) (8,251) (4,228) (8,398)
=======================================================================================
CAPITAL SHARE TRANSACTIONS (3):
Class A:
Proceeds from sales 3,600 17,441 2,242 6,019
Reinvestment of distributions 3,223 5,120 302 655
Payments for redemptions (9,964) (31,535) (2,837) (4,745)
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class A transactions (3,141) (8,974) (293) 1,929
- ---------------------------------------------------------------------------------------
Class C:
Proceeds from sales 473 3,135 2 251
Reinvestment of distributions 293 446 4 8
Payments for redemptions (942) (3,279) (31) (2)
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class C transactions (176) 302 (25) 257
- ---------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 3,141 5,315 8,732 19,318
Reinvestment of distributions 153 266 197 363
Payments for redemptions (4,899) (12,019) (14,697) (26,019)
Shares issued in connection with
the acquisition of Common Trust
Fund net assets -- -- -- 32,466
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class Y transactions (1,605) (6,438) (5,768) 26,128
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from capital share transactions (4,922) (15,110) (6,086) 28,314
- ---------------------------------------------------------------------------------------
Total increase (decrease) in net
assets (4,550) (16,223) (5,531) 27,653
NET ASSETS AT BEGINNING OF PERIOD 185,725 201,948 196,514 168,861
=======================================================================================
NET ASSETS AT END OF PERIOD $ 181,175 $ 185,725 $ 190,983 $ 196,514
=======================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME
AT END OF PERIOD $ 252 $ 474 $ 108 $ 84
=======================================================================================
</Table>
(1) Commencement of operations.
(2) See note 6 in Notes to Financial Statements for additional information.
(3) See note 4 in Notes to Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
62
<Page>
<Table>
<Caption>
OREGON
NEBRASKA OHIO INTERMEDIATE
TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -----------------------------------------------------------------------------------------------------------------
10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02
TO TO TO TO TO TO
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 $ 708 $ 1,387 $ 735 $ 1,488 $ 2,791 $ 5,912
Net realized gain on investments 17 123 29 369 346 1,155
Net realized loss on redemption
in-kind -- -- -- -- -- --
Net increase from payment by
affiliate and net losses realized
on the disposal of investments in
violation of restrictions (2) -- -- -- -- -- --
Net change in unrealized
appreciation or depreciation of
investments 276 (212) 298 (413) 296 (1,811)
- -----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 1,001 1,298 1,062 1,444 3,433 5,256
- -----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (88) (173) (18) (20) (158) (300)
Class C (28) (43) (3) (4) -- --
Class Y (575) (1,145) (689) (1,462) (2,658) (5,603)
Net realized gain on investments:
Class A (17) (3) (9) -- (66) (12)
Class C (6) (1) (2) -- -- --
Class Y (100) (21) (358) -- (1,095) (208)
- -----------------------------------------------------------------------------------------------------------------
Total distributions (814) (1,386) (1,079) (1,486) (3,977) (6,123)
=================================================================================================================
CAPITAL SHARE TRANSACTIONS (3):
Class A:
Proceeds from sales 466 1,001 597 439 1,345 3,805
Reinvestment of distributions 67 110 11 9 141 186
Payments for redemptions (807) (1,117) (97) (60) (433) (2,769)
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class A transactions (274) (6) 511 388 1,053 1,222
- -----------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 382 785 93 213 -- --
Reinvestment of distributions 26 38 1 1 -- --
Payments for redemptions (290) (151) (61) -- -- --
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class C transactions 118 672 33 214 -- --
- -----------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 2,436 4,416 2,748 7,072 7,231 17,727
Reinvestment of distributions 31 52 159 203 699 319
Payments for redemptions (757) (3,634) (3,343) (5,843) (13,902) (22,926)
Shares issued in connection with
the acquisition of Common Trust
Fund net assets -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class Y transactions 1,710 834 (436) 1,432 (5,972) (4,880)
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from capital share transactions 1,554 1,500 108 2,034 (4,919) (3,658)
- -----------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets 1,741 1,412 91 1,992 (5,463) (4,525)
NET ASSETS AT BEGINNING OF PERIOD 34,646 33,234 40,529 38,537 154,433 158,958
=================================================================================================================
NET ASSETS AT END OF PERIOD $ 36,387 $ 34,646 $ 40,620 $ 40,529 $ 148,970 $ 154,433
=================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME
AT END OF PERIOD $ 57 $ 40 $ 27 $ 2 $ 42 $ 67
=================================================================================================================
<Caption>
SHORT
TAX FREE FUND TAX FREE FUND
- ---------------------------------------------------------------------------------------
10/1/03 10/25/02 (1) 10/1/03 10/1/02
TO TO TO TO
3/31/04 9/30/03 3/31/04 9/30/03
- ---------------------------------------------------------------------------------------
(unaudited) (unaudited)
OPERATIONS:
Investment income - net $ 5,671 $ 10,163 $ 10,892 $ 23,245
Net realized gain on investments 51 2,432 2,509 4,886
Net realized loss on redemption
in-kind -- -- -- --
Net increase from payment by
affiliate and net losses realized
on the disposal of investments in
violation of restrictions (2) -- -- -- --
Net change in unrealized
appreciation or depreciation of
investments (2,442) 13,087 2,637 (6,702)
- ---------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 3,280 25,682 16,038 21,429
- ---------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (90) (61) (894) (1,818)
Class C -- -- (87) (235)
Class Y (5,422) (10,054) (10,112) (21,211)
Net realized gain on investments:
Class A (44) -- (406) (486)
Class C -- -- (46) (70)
Class Y (2,391) -- (4,411) (5,440)
- ---------------------------------------------------------------------------------------
Total distributions (7,947) (10,115) (15,956) (29,260)
=======================================================================================
CAPITAL SHARE TRANSACTIONS (3):
Class A:
Proceeds from sales 1,696 10,862 4,502 9,898
Reinvestment of distributions 104 55 1,143 2,040
Payments for redemptions (1,211) (4,499) (5,989) (12,077)
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class A transactions 589 6,418 (344) (139)
- ---------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- -- 365 454
Reinvestment of distributions -- -- 129 293
Payments for redemptions -- -- (2,231) (1,953)
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class C transactions -- -- (1,737) (1,206)
- ---------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 95,272 508,191 28,980 55,624
Reinvestment of distributions 3,097 183 862 1,557
Payments for redemptions (54,135) (126,993) (40,937) (86,596)
Shares issued in connection with
the acquisition of Common Trust
Fund net assets -- -- -- --
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class Y transactions 44,234 381,381 (11,095) (29,415)
- ---------------------------------------------------------------------------------------
Increase (decrease) in net assets
from capital share transactions 44,823 387,799 (13,176) (30,760)
- ---------------------------------------------------------------------------------------
Total increase (decrease) in net
assets 40,156 403,366 (13,094) (38,591)
NET ASSETS AT BEGINNING OF PERIOD 403,366 -- 508,456 547,047
=======================================================================================
NET ASSETS AT END OF PERIOD $ 443,522 $ 403,366 $ 495,362 $ 508,456
=======================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME
AT END OF PERIOD $ 207 $ 48 $ 260 $ 461
=======================================================================================
</Table>
63
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET
VALUE NET GAINS FROM NET DISTRIBUTIONS VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET END OF
OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS PERIOD
- ----------------------------------------------------------------------------------------------------------------------------
ARIZONA TAX FREE FUND
Class A
2004 (1) $ 11.33 $ 0.24 $ 0.21 $ (0.23) $ (0.05) $ 11.50
2003 11.41 0.46 (0.06) (0.45) (0.03) 11.33
2002 10.99 0.48 0.44 (0.48) (0.02) 11.41
2001 10.45 0.55 0.53 (0.54) -- 10.99
2000 (2) 10.00 0.36 0.45 (0.36) -- 10.45
Class C
2004 (1) $ 11.31 $ 0.21 $ 0.22 $ (0.20) $ (0.05) $ 11.49
2003 11.40 0.42 (0.08) (0.40) (0.03) 11.31
2002 10.98 0.44 0.44 (0.44) (0.02) 11.40
2001 10.44 0.53 0.51 (0.50) -- 10.98
2000 (2) 10.00 0.34 0.44 (0.34) -- 10.44
Class Y
2004 (1) $ 11.33 $ 0.25 $ 0.22 $ (0.24) $ (0.05) $ 11.51
2003 11.41 0.48 (0.06) (0.47) (0.03) 11.33
2002 10.99 0.51 0.44 (0.51) (0.02) 11.41
2001 10.45 0.57 0.53 (0.56) -- 10.99
2000 (2) 10.00 0.37 0.45 (0.37) -- 10.45
CALIFORNIA INTERMEDIATE TAX FREE FUND
Class A
2004 (1) $ 10.64 $ 0.20 $ 0.01 $ (0.20) $ (0.03) $ 10.62
2003 10.80 0.41 (0.14) (0.41) (0.02) 10.64
2002 10.41 0.42 0.39 (0.42) -- 10.80
2001 10.02 0.44 0.39 (0.44) -- 10.41
2000 9.89 0.43 0.13 (0.43) -- 10.02
1999 10.37 0.42 (0.46) (0.41) (0.03) 9.89
Class Y
2004 (1) $ 10.66 $ 0.21 $ 0.01 $ (0.21) $ (0.03) $ 10.64
2003 10.81 0.43 (0.14) (0.42) (0.02) 10.66
2002 10.43 0.43 0.38 (0.43) -- 10.81
2001 10.04 0.44 0.39 (0.44) -- 10.43
2000 9.89 0.43 0.15 (0.43) -- 10.04
1999 10.36 0.42 (0.45) (0.41) (0.03) 9.89
CALIFORNIA TAX FREE FUND
Class A
2004 (1) $ 11.40 $ 0.23 $ 0.10 $ (0.23) $ (0.09) $ 11.41
2003 11.63 0.47 (0.16) (0.47) (0.07) 11.40
2002 11.17 0.48 0.50 (0.47) (0.05) 11.63
2001 10.66 0.52 0.50 (0.51) -- 11.17
2000 (2) 10.00 0.35 0.66 (0.35) -- 10.66
Class C
2004 (1) $ 11.41 $ 0.20 $ 0.12 $ (0.21) $ (0.09) $ 11.43
2003 11.64 0.43 (0.16) (0.43) (0.07) 11.41
2002 11.18 0.42 0.52 (0.43) (0.05) 11.64
2001 10.66 0.47 0.51 (0.46) -- 11.18
2000 (2) 10.00 0.32 0.66 (0.32) -- 10.66
Class Y
2004 (1) $ 11.40 $ 0.24 $ 0.11 $ (0.24) $ (0.09) $ 11.42
2003 11.63 0.49 (0.15) (0.50) (0.07) 11.40
2002 11.17 0.49 0.52 (0.50) (0.05) 11.63
2001 10.66 0.54 0.50 (0.53) -- 11.17
2000 (2) 10.00 0.37 0.65 (0.36) -- 10.66
COLORADO INTERMEDIATE TAX FREE FUND
Class A
2004 (1) $ 11.08 $ 0.23 $ 0.01 $ (0.22) $ -- $ 11.10
2003 11.12 0.41 (0.02) (0.43) -- 11.08
2002 10.79 0.47 0.32 (0.46) -- 11.12
2001 10.28 0.46 0.52 (0.47) -- 10.79
2000 10.32 0.48 (0.04) (0.48) -- 10.28
1999 10.89 0.46 (0.55) (0.46) (0.02) 10.32
Class Y
2004 (1) $ 11.05 $ 0.23 $ 0.02 $ (0.22) $ -- $ 11.08
2003 11.10 0.43 (0.03) (0.45) -- 11.05
2002 10.76 0.49 0.33 (0.48) -- 11.10
2001 10.26 0.48 0.49 (0.47) -- 10.76
2000 10.29 0.48 (0.03) (0.48) -- 10.26
1999 10.88 0.46 (0.57) (0.46) (0.02) 10.29
</Table>
(1) For the six months ended March 31, 2004 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
(2) Commenced operations on February 1, 2000. All ratios for the period have
been annualized, except total return and portfolio turnover.
The accompanying notes are an integral part of the financial statements.
64
<Page>
<Table>
<Caption>
RATIO OF NET
RATIO OF INVESTMENT
NET ASSETS EXPENSES TO INCOME
TOTAL END OF AVERAGE TO AVERAGE
RETURN (3) PERIOD (000) NET ASSETS NET ASSETS
- ----------------------------------------------------------------------------------------------------
ARIZONA TAX FREE FUND
Class A
2004 (1) 4.00% $ 10,037 0.75% 4.05%
2003 3.61 11,928 0.75 4.03
2002 8.69 12,413 0.75 4.40
2001 10.50 13,971 0.25 5.10
2000 (2) 8.21 9,668 0.25 5.31
Class C
2004 (1) 3.88% $ 1,655 1.15% 3.65%
2003 3.10 1,857 1.15 3.63
2002 8.28 2,910 1.15 4.00
2001 10.15 2,003 0.65 4.66
2000 (2) 7.88 22 0.65 4.95
Class Y
2004 (1) 4.22% $ 9,754 0.50% 4.30%
2003 3.86 9,244 0.50 4.28
2002 8.95 10,656 0.50 4.64
2001 10.76 5,822 -- 5.33
2000 (2) 8.36 2,670 -- 5.53
CALIFORNIA INTERMEDIATE TAX FREE FUND
Class A
2004 (1) 2.06% $ 4,286 0.85% 3.79%
2003 2.58 4,262 0.85 3.86
2002 8.01 4,870 0.85 4.01
2001 8.41 3,392 0.70 4.25
2000 5.84 2,344 0.70 4.35
1999 (0.40) 2,042 0.70 4.19
Class Y
2004 (1) 2.13% $ 45,914 0.70% 3.94%
2003 2.83 44,600 0.70 4.02
2002 8.05 45,212 0.70 4.16
2001 8.39 43,647 0.70 4.26
2000 6.05 43,262 0.70 4.36
1999 (0.30) 41,469 0.70 4.11
CALIFORNIA TAX FREE FUND
Class A
2004 (1) 2.90% $ 10,653 0.75% 3.97%
2003 2.85 11,143 0.75 4.16
2002 9.10 12,954 0.75 4.26
2001 9.73 18,139 0.25 4.75
2000 (2) 10.23 6,029 0.25 5.20
Class C
2004 (1) 2.79% $ 990 1.15% 3.57%
2003 2.45 1,101 1.15 3.75
2002 8.69 1,115 1.15 3.86
2001 9.42 647 0.65 4.38
2000 (2) 9.95 34 0.65 5.12
Class Y
2004 (1) 3.12% $ 16,516 0.50% 4.22%
2003 3.11 15,243 0.50 4.40
2002 9.36 11,853 0.50 4.51
2001 9.99 6,726 -- 5.00
2000 (2) 10.38 4,766 -- 5.42
COLORADO INTERMEDIATE TAX FREE FUND
Class A
2004 (1) 2.14% $ 16,567 0.85% 3.93%
2003 3.64 22,555 0.85 3.79
2002 7.56 15,244 0.85 4.48
2001 9.75 8,320 0.70 4.55
2000 4.40 3,485 0.70 4.66
1999 (0.88) 4,733 0.70 4.32
Class Y
2004 (1) 2.32% $ 44,225 0.70% 4.08%
2003 3.71 47,854 0.70 3.94
2002 7.83 48,398 0.70 4.60
2001 9.67 47,907 0.70 4.58
2000 4.51 52,885 0.70 4.66
1999 (1.07) 57,236 0.70 4.31
<Caption>
RATIO OF RATIO OF NET
EXPENSES TO INVESTMENT
AVERAGE INCOME
NET ASSETS TO AVERAGE NET PORTFOLIO
(EXCLUDING ASSETS (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- ----------------------------------------------------------------------------------
ARIZONA TAX FREE FUND
Class A
2004 (1) 1.11% 3.69% 8%
2003 1.09 3.69 37
2002 1.37 3.78 30
2001 1.45 3.90 19
2000 (2) 1.80 3.76 27
Class C
2004 (1) 1.86% 2.94% 8%
2003 1.84 2.94 37
2002 2.12 3.03 30
2001 1.84 3.47 19
2000 (2) 2.72 2.88 27
Class Y
2004 (1) 0.86% 3.94% 8%
2003 0.84 3.94 37
2002 1.12 4.02 30
2001 1.19 4.14 19
2000 (2) 1.53 4.00 27
CALIFORNIA INTERMEDIATE TAX FREE FUND
Class A
2004 (1) 1.06% 3.58% 8%
2003 1.06 3.65 17
2002 1.14 3.72 23
2001 1.21 3.74 12
2000 1.18 3.87 23
1999 1.17 3.72 9
Class Y
2004 (1) 0.81% 3.83% 8%
2003 0.81 3.91 17
2002 0.89 3.97 23
2001 0.96 4.00 12
2000 0.93 4.13 23
1999 0.92 3.89 9
CALIFORNIA TAX FREE FUND
Class A
2004 (1) 1.07% 3.65% 5%
2003 1.08 3.83 20
2002 1.31 3.70 33
2001 1.35 3.65 19
2000 (2) 1.85 3.60 12
Class C
2004 (1) 1.82% 2.90% 5%
2003 1.83 3.07 20
2002 2.06 2.95 33
2001 1.75 3.28 19
2000 (2) 2.25 3.52 12
Class Y
2004 (1) 0.82% 3.90% 5%
2003 0.83 4.07 20
2002 1.06 3.95 33
2001 1.10 3.90 19
2000 (2) 1.59 3.83 12
COLORADO INTERMEDIATE TAX FREE FUND
Class A
2004 (1) 1.06% 3.72% 3%
2003 1.06 3.58 14
2002 1.11 4.22 15
2001 1.34 3.91 24
2000 1.25 4.11 42
1999 1.15 3.87 33
Class Y
2004 (1) 0.81% 3.97% 3%
2003 0.81 3.83 14
2002 0.86 4.44 15
2001 1.09 4.19 24
2000 1.00 4.36 42
1999 0.90 4.11 33
</Table>
(3) Total return does not reflect sales changes. Total return would have been
lower had certain expenses not been waived.
65
<Page>
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET
VALUE NET GAINS FROM NET DISTRIBUTIONS VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET RETURN OF END OF
OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS CAPITAL PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO TAX FREE FUND
Class A
2004 (1) $ 11.57 $ 0.25 $ 0.10 $ (0.25) $ (0.08) $ -- $ 11.59
2003 11.65 0.50 (0.10) (0.48) -- -- 11.57
2002 11.09 0.48 0.56 (0.47) (0.01) -- 11.65
2001 10.42 0.54 0.66 (0.53) -- -- 11.09
2000 (2) 10.00 0.35 0.42 (0.35) -- -- 10.42
Class C
2004 (1) $ 11.56 $ 0.22 $ 0.09 $ (0.22) $ (0.08) $ -- $ 11.57
2003 11.63 0.44 (0.08) (0.43) -- -- 11.56
2002 11.08 0.44 0.56 (0.44) (0.01) -- 11.63
2001 10.41 0.49 0.67 (0.49) -- -- 11.08
2000 (2) 10.00 0.34 0.41 (0.34) -- -- 10.41
Class Y
2004 (1) $ 11.59 $ 0.26 $ 0.10 $ (0.26) $ (0.08) $ -- $ 11.61
2003 11.67 0.51 (0.09) (0.50) -- -- 11.59
2002 11.10 0.48 0.60 (0.50) (0.01) -- 11.67
2001 10.43 0.58 0.64 (0.55) -- -- 11.10
2000 (2) 10.00 0.37 0.42 (0.36) -- -- 10.43
INTERMEDIATE TAX FREE FUND
Class A
2004 (1) $ 11.30 $ 0.22 $ 0.02 $ (0.22) $ (0.01) $ -- $ 11.31
2003 11.32 0.44 (0.03) (0.43) -- -- 11.30
2002 10.95 0.43 0.40 (0.43) -- (0.03) 11.32
2001 10.48 0.48 0.46 (0.47) -- -- 10.95
2000 10.45 0.48 0.04 (0.49) -- -- 10.48
1999 11.05 0.46 (0.55) (0.46) (0.05) -- 10.45
Class Y
2004 (1) $ 11.28 $ 0.23 $ 0.02 $ (0.23) $ (0.01) $ -- $ 11.29
2003 11.30 0.46 (0.03) (0.45) -- -- 11.28
2002 10.93 0.44 0.40 (0.44) -- (0.03) 11.30
2001 10.46 0.48 0.46 (0.47) -- -- 10.93
2000 10.43 0.48 0.04 (0.49) -- -- 10.46
1999 11.03 0.46 (0.55) (0.46) (0.05) -- 10.43
MINNESOTA INTERMEDIATE TAX FREE FUND
Class A
2004 (1) $ 10.44 $ 0.20 $ 0.01 $ (0.20) $ (0.02) $ -- $ 10.43
2003 10.51 0.40 (0.04) (0.41) (0.02) -- 10.44
2002 10.21 0.43 0.29 (0.42) -- -- 10.51
2001 9.80 0.44 0.41 (0.44) -- -- 10.21
2000 9.79 0.45 0.02 (0.45) (0.01) -- 9.80
1999 10.29 0.43 (0.47) (0.43) (0.03) -- 9.79
Class Y
2004 (1) $ 10.40 $ 0.20 $ 0.01 $ (0.21) $ (0.02) $ -- $ 10.38
2003 10.46 0.42 (0.03) (0.43) (0.02) -- 10.40
2002 10.17 0.45 0.27 (0.43) -- -- 10.46
2001 9.76 0.44 0.41 (0.44) -- -- 10.17
2000 9.76 0.45 0.01 (0.45) (0.01) -- 9.76
1999 10.26 0.43 (0.47) (0.43) (0.03) -- 9.76
</Table>
(1) For the six months ended March 31, 2004 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
(2) Commenced operations on February 1, 2000. All ratios for the period have
been annualized, except total return and portfolio turnover.
(3) Total return does not reflect sales changes. Total return would have been
lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
66
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
NET ASSETS EXPENSES TO INCOME NET ASSETS TO AVERAGE NET PORTFOLIO
TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
RETURN (3) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO TAX FREE FUND
Class A
2004 (1) 3.05% $ 12,599 0.75% 4.16% 1.07% 3.84% 8%
2003 3.53 13,843 0.75 4.23 1.07 3.91 14
2002 9.72 19,633 0.75 4.32 1.30 3.77 22
2001 11.78 20,550 0.25 5.03 1.42 3.86 23
2000 (2) 7.80 8,068 0.25 5.28 1.80 3.73 36
Class C
2004 (1) 2.76% $ 3,776 1.15% 3.76% 1.82% 3.09% 8%
2003 3.23 4,284 1.15 3.83 1.82 3.16 14
2002 9.23 3,705 1.15 3.95 2.05 3.05 22
2001 11.41 1,698 0.65 4.61 1.82 3.44 23
2000 (2) 7.52 156 0.65 4.92 2.58 2.99 36
Class Y
2004 (1) 3.17% $ 9,650 0.50% 4.41% 0.82% 4.09% 8%
2003 3.78 9,516 0.50 4.49 0.82 4.17 14
2002 10.07 9,244 0.50 4.59 1.05 4.04 22
2001 12.02 1,923 -- 5.32 1.18 4.14 23
2000 (2) 8.05 2,430 -- 5.47 1.53 3.94 36
INTERMEDIATE TAX FREE FUND
Class A
2004 (1) 2.15% $ 36,221 0.85% 3.91% 1.05% 3.71% 6%
2003 3.74 34,231 0.85 3.91 1.05 3.71 15
2002 7.78 29,838 0.85 3.87 1.03 3.69 28
2001 9.19 23,236 0.70 4.43 1.13 4.00 12
2000 5.10 8,994 0.70 4.61 1.12 4.19 29
1999 (0.78) 10,713 0.70 4.31 1.12 3.89 23
Class Y
2004 (1) 2.23% $ 686,110 0.70% 4.06% 0.80% 3.96% 6%
2003 3.90 696,994 0.70 4.05 0.80 3.95 15
2002 7.95 485,592 0.70 4.04 0.78 3.96 28
2001 9.21 458,743 0.70 4.43 0.87 4.26 12
2000 5.11 375,279 0.70 4.62 0.87 4.45 29
1999 (0.79) 442,464 0.70 4.31 0.87 4.14 23
MINNESOTA INTERMEDIATE TAX FREE FUND
Class A
2004 (1) 2.01% $ 34,565 0.85% 3.73% 1.05% 3.53% 4%
2003 3.55 31,044 0.85 3.85 1.05 3.65 15
2002 7.23 19,914 0.85 4.27 1.03 4.09 15
2001 8.85 12,408 0.70 4.38 1.13 3.95 13
2000 4.94 12,469 0.70 4.59 1.12 4.17 18
1999 (0.43) 14,629 0.70 4.30 1.12 3.88 12
Class Y
2004 (1) 2.00% $ 236,266 0.70% 3.88% 0.80% 3.78% 4%
2003 3.82 238,958 0.70 4.01 0.80 3.91 15
2002 7.31 251,597 0.70 4.41 0.78 4.33 15
2001 8.89 255,939 0.70 4.38 0.88 4.20 13
2000 5.04 244,353 0.70 4.59 0.87 4.42 18
1999 (0.44) 279,776 0.70 4.28 0.87 4.11 12
</Table>
67
<Page>
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET
VALUE NET GAINS FROM NET DISTRIBUTIONS VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET END OF
OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
MINNESOTA TAX FREE FUND
Class A
2004 (1) $ 11.34 $ 0.22 $ 0.13 $ (0.23) $ (0.09) $ 11.37
2003 11.39 0.48 (0.05) (0.45) (0.03) 11.34
2002 11.06 0.47 0.34 (0.47) (0.01) 11.39
2001 10.64 0.53 0.43 (0.54) -- 11.06
2000 10.70 0.55 (0.06) (0.55) -- 10.64
1999 11.46 0.55 (0.69) (0.56) (0.06) 10.70
Class C
2004 (1) $ 11.31 $ 0.19 $ 0.13 $ (0.21) $ (0.09) $ 11.33
2003 11.36 0.43 (0.04) (0.41) (0.03) 11.31
2002 11.04 0.43 0.33 (0.43) (0.01) 11.36
2001 10.62 0.49 0.43 (0.50) -- 11.04
2000 10.69 0.53 (0.09) (0.51) -- 10.62
1999 (2) 11.38 0.37 (0.71) (0.35) -- 10.69
Class Y
2004 (1) $ 11.33 $ 0.23 $ 0.12 $ (0.24) $ (0.09) $ 11.35
2003 11.38 0.51 (0.05) (0.48) (0.03) 11.33
2002 11.05 0.49 0.35 (0.50) (0.01) 11.38
2001 10.63 0.55 0.44 (0.57) -- 11.05
2000 10.69 0.58 (0.07) (0.57) -- 10.63
1999 11.45 0.58 (0.69) (0.59) (0.06) 10.69
MISSOURI TAX FREE FUND (3)
Class A
2004 (1) $ 12.37 $ 0.23 $ 0.07 $ (0.23) $ (0.03) $ 12.41
2003 12.47 0.45 (0.04) (0.45) (0.06) 12.37
2002 12.05 0.46 0.47 (0.47) (0.04) 12.47
2001 (4) 11.54 0.46 0.50 (0.44) (0.01) 12.05
2000 (5) 11.31 0.48 0.23 (0.48) -- 11.54
1999 (6) 12.08 0.50 (0.74) (0.51) (0.02) 11.31
Class C
2004 (1) $ 12.35 $ 0.20 $ 0.06 $ (0.20) $ (0.03) $ 12.38
2003 12.46 0.40 (0.04) (0.41) (0.06) 12.35
2002 12.05 0.41 0.48 (0.44) (0.04) 12.46
2001 (7) 12.03 -- 0.02 -- -- 12.05
Class Y
2004 (1) $ 12.38 $ 0.24 $ 0.06 $ (0.24) $ (0.03) $ 12.41
2003 12.48 0.49 (0.05) (0.48) (0.06) 12.38
2002 12.06 0.48 0.48 (0.50) (0.04) 12.48
2001 (4) 11.55 0.49 0.50 (0.47) (0.01) 12.06
2000 (5) 11.32 0.50 0.23 (0.50) -- 11.55
1999 (6) 12.08 0.53 (0.74) (0.53) (0.02) 11.32
NEBRASKA TAX FREE FUND
Class A
2004 (1) $ 10.66 $ 0.20 $ 0.09 $ (0.20) $ (0.04) $ 10.71
2003 10.70 0.41 (0.04) (0.40) (0.01) 10.66
2002 10.20 0.41 0.49 (0.40) -- 10.70
2001 (8) 10.00 0.24 0.20 (0.24) -- 10.20
Class C
2004 (1) $ 10.58 $ 0.18 $ 0.09 $ (0.17) $ (0.04) $ 10.64
2003 10.63 0.36 (0.04) (0.36) (0.01) 10.58
2002 10.14 0.36 0.50 (0.37) -- 10.63
2001 (8) 10.00 0.20 0.17 (0.23) -- 10.14
Class Y
2004 (1) $ 10.65 $ 0.21 $ 0.10 $ (0.21) $ (0.04) $ 10.71
2003 10.69 0.43 (0.03) (0.43) (0.01) 10.65
2002 10.19 0.43 0.50 (0.43) -- 10.69
2001 (8) 10.00 0.26 0.19 (0.26) -- 10.19
</Table>
(1) For the six months ended March 31, 2004 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
(2) Class of shares has been offered since February 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(3) The financial highlights for the Missouri Tax Free Fund as set forth herein
include the historical financial highlights of the Firstar Missouri
Tax-Exempt Bond Fund Class A shares and Class I shares. The assets of the
Firstar Missouri Tax-Exempt Bond Fund were acquired by Missouri Tax Free
Fund on September 24, 2001. In connection with such acquisition, Class A
shares and Class I shares of the Firstar Missouri Tax-Exempt Bond Fund were
exchanged for Class A shares and Class Y shares of Missouri Tax Free Fund,
respectively.
(4) For the period November 1, 2000 to September 30, 2001. Effective in 2001,
the Fund's fiscal year end was changed from October 31 to September 30. All
ratios for the period have been annualized, except total return and
portfolio turnover.
The accompanying notes are an integral part of the financial statements.
68
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
NET ASSETS EXPENSES TO INCOME NET ASSETS TO AVERAGE NET PORTFOLIO
TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
RETURN (9) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA TAX FREE FUND
Class A
2004 (1) 3.11% $ 123,034 0.95% 3.81% 1.05% 3.71% 19%
2003 3.90 125,916 0.95 4.25 1.06 4.14 23
2002 7.23 135,607 0.95 4.22 1.09 4.08 26
2001 9.24 107,260 0.95 4.84 1.18 4.61 15
2000 4.75 93,995 0.95 5.22 1.17 5.00 34
1999 (1.31) 108,116 0.95 4.98 1.17 4.76 15
Class C
2004 (1) 2.92% $ 11,801 1.35% 3.42% 1.80% 2.97% 19%
2003 3.51 11,951 1.35 3.85 1.81 3.39 23
2002 7.10 11,703 1.35 3.80 1.84 3.31 26
2001 8.88 6,382 1.35 4.39 1.58 4.16 15
2000 4.25 2,037 1.35 4.83 1.77 4.41 34
1999 (2) (3.03) 1,682 1.35 4.70 1.87 4.18 15
Class Y
2004 (1) 3.15% $ 46,340 0.70% 4.06% 0.80% 3.96% 19%
2003 4.16 47,858 0.70 4.50 0.81 4.39 23
2002 7.84 54,638 0.70 4.47 0.84 4.33 26
2001 9.52 49,078 0.70 5.09 0.93 4.86 15
2000 5.00 40,860 0.70 5.49 0.93 5.26 34
1999 (1.07) 17,356 0.70 5.26 0.87 5.09 15
MISSOURI TAX FREE FUND (3)
Class A
2004 (1) 2.43% $ 27,932 0.95% 3.63% 1.06% 3.52% 2%
2003 3.45 28,141 0.95 3.69 1.06 3.58 20
2002 7.99 26,496 0.95 3.81 1.06 3.70 25
2001 (4) 8.44 22,573 0.94 4.23 1.00 4.17 9
2000 (5) 6.41 19,876 0.87 4.59 0.98 4.48 3
1999 (6) (2.09) 21,242 0.86 4.30 1.07 4.09 1
Class C
2004 (1) 2.14% $ 255 1.35% 3.24% 1.81% 2.78% 2%
2003 3.05 279 1.35 3.30 1.81 2.84 20
2002 7.58 21 1.35 3.28 1.81 2.82 25
2001 (7) 0.17 -- -- -- -- -- 9
Class Y
2004 (1) 2.47% $ 162,796 0.70% 3.88% 0.81% 3.77% 2%
2003 3.71 168,094 0.70 3.94 0.81 3.83 20
2002 8.25 142,344 0.70 4.06 0.81 3.95 25
2001 (4) 8.67 129,715 0.69 4.48 0.75 4.42 9
2000 (5) 6.60 126,896 0.67 4.79 1.08 4.38 3
1999 (6) (1.81) 111,842 0.66 4.51 1.07 4.10 1
NEBRASKA TAX FREE FUND
Class A
2004 (1) 2.69% $ 4,621 0.75% 3.78% 1.07% 3.46% 4%
2003 3.57 4,869 0.75 3.87 1.07 3.55 15
2002 9.09 4,904 0.75 3.98 1.29 3.44 35
2001 (8) 4.48 5,090 0.55 4.12 1.38 3.29 30
Class C
2004 (1) 2.60% $ 1,782 1.15% 3.38% 1.82% 2.71% 4%
2003 3.10 1,657 1.15 3.46 1.82 2.79 15
2002 8.66 982 1.15 3.57 2.04 2.68 35
2001 (8) 3.71 226 0.95 3.73 1.75 2.93 30
Class Y
2004 (1) 2.92% $ 29,984 0.50% 4.02% 0.82% 3.70% 4%
2003 3.82 28,120 0.50 4.11 0.82 3.79 15
2002 9.37 27,348 0.50 4.22 1.04 3.68 35
2001 (8) 4.51 22,443 0.30 4.36 1.13 3.53 30
</Table>
(5) For the period December 1, 1999 to October 31, 2000. Effective in 2000, the
Fund's fiscal year end was changed from November 30 from October 31. All
ratios for the period have been annualized, except total return and
portfolio turnover.
(6) For the fiscal year ended November 30.
(7) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(8) Commenced operations on February 28, 2001. All ratios for the period have
been annualized, except total return and portfolio turnover.
(9) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
69
<Page>
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET
VALUE NET GAINS FROM NET DISTRIBUTIONS VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET END OF
OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS PERIOD
- ---------------------------------------------------------------------------------------------------------------------------
OHIO TAX FREE FUND
Class A
2004 (1) $ 10.54 $ 0.18 $ 0.09 $ (0.17) $ (0.10) $ 10.54
2003 10.58 0.36 (0.03) (0.37) -- 10.54
2002 (2) 10.00 0.15 0.59 (0.16) -- 10.58
Class C
2004 (1) $ 10.44 $ 0.16 $ 0.09 $ (0.15) $ (0.10) $ 10.44
2003 10.57 0.32 (0.12) (0.33) -- 10.44
2002 (2) 10.00 0.13 0.58 (0.14) -- 10.57
Class Y
2004 (1) $ 10.55 $ 0.19 $ 0.10 $ (0.19) $ (0.10) $ 10.55
2003 10.57 0.39 (0.02) (0.39) -- 10.55
2002 (2) 10.00 0.16 0.58 (0.17) -- 10.57
OREGON INTERMEDIATE TAX FREE FUND
Class A
2004 (1) $ 10.43 $ 0.19 $ 0.04 $ (0.19) $ (0.08) $ 10.39
2003 10.49 0.37 (0.03) (0.38) (0.02) 10.43
2002 10.18 0.40 0.31 (0.40) -- 10.49
2001 9.74 0.43 0.44 (0.43) -- 10.18
2000 9.72 0.43 0.02 (0.43) -- 9.74
1999 (3) 10.23 0.29 (0.51) (0.29) -- 9.72
Class Y
2004 (1) $ 10.43 $ 0.19 $ 0.06 $ (0.20) $ (0.08) $ 10.40
2003 10.49 0.40 (0.05) (0.39) (0.02) 10.43
2002 10.18 0.42 0.31 (0.42) -- 10.49
2001 9.74 0.43 0.44 (0.43) -- 10.18
2000 9.72 0.43 0.02 (0.43) -- 9.74
1999 10.24 0.43 (0.49) (0.43) (0.03) 9.72
SHORT TAX FREE FUND
Class A
2004 (1) $ 10.18 $ 0.13 $ (0.06) $ (0.12) $ (0.06) $ 10.07
2003 (4) 10.00 0.26 0.19 (0.27) -- 10.18
Class Y
2004 (1) $ 10.18 $ 0.14 $ (0.06) $ (0.13) $ (0.06) $ 10.07
2003 (4) 10.00 0.28 0.18 (0.28) -- 10.18
TAX FREE FUND (5)
Class A
2004 (1) $ 11.28 $ 0.23 $ 0.13 $ (0.24) $ (0.11) $ 11.29
2003 11.44 0.47 (0.03) (0.47) (0.13) 11.28
2002 10.99 0.47 0.44 (0.46) -- 11.44
2001 (6) 10.53 0.42 0.43 (0.39) -- 10.99
2000 (7) 10.20 0.40 0.34 (0.41) -- 10.53
1999 (8) 11.06 0.44 (0.75) (0.44) (0.11) 10.20
Class C
2004 (1) $ 11.24 $ 0.22 $ 0.10 $ (0.21) $ (0.11) $ 11.24
2003 11.40 0.42 (0.02) (0.43) (0.13) 11.24
2002 10.96 0.42 0.45 (0.43) -- 11.40
2001 (9) 10.93 0.01 0.02 -- -- 10.96
Class Y
2004 (1) $ 11.29 $ 0.25 $ 0.12 $ (0.25) $ (0.11) $ 11.30
2003 11.45 0.50 (0.03) (0.50) (0.13) 11.29
2002 11.00 0.49 0.45 (0.49) -- 11.45
2001 (6) 10.53 0.44 0.45 (0.42) -- 11.00
2000 (7) 10.21 0.42 0.33 (0.43) -- 10.53
1999 (8) 11.10 0.47 (0.78) (0.47) (0.11) 10.21
</Table>
(1) For the six months ended March 31, 2004 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
(2) Commenced operations on April 30, 2002. All ratios for the period have
been annualized, except total return and portfolio turnover.
(3) Class of shares has been offered since February 1, 1999. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(4) Commenced operations on October 25, 2002. All ratios for the period have
been annualized, except total return and portfolio turnover.
(5) The financial highlights for the Tax Free Fund as set forth herein include
the historical financial highlights of the Firstar National Municipal Bond
Fund Class A shares and Class I shares. The assets of the Firstar National
Municipal Bond Fund were acquired by Tax Free Fund on September 24, 2001.
In connection with such acquisition, Class A shares and Class I shares of
the Firstar National Municipal Bond Fund were exchanged for Class A shares
and Class Y shares of Tax Free Fund, respectively. Historical per-share
amounts have been adjusted to reflect the conversion ratios utilized for
the merger of the Tax Free Fund and the Firstar National Municipal Bond
Fund. Firstar National Municipal Bond Fund is the accounting survivor.
The accompanying notes are an integral part of the financial statements.
70
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
NET ASSETS EXPENSES TO INCOME NET ASSETS TO AVERAGE NET PORTFOLIO
TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
RETURN (10) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO TAX FREE FUND
Class A
2004 (1) 2.61% $ 1,359 0.75% 3.38% 1.07% 3.06% 7%
2003 3.22 849 0.75 3.52 1.09 3.18 22
2002 (2) 7.42 453 0.75 3.25 1.23 2.77 3
Class C
2004 (1) 2.43% $ 247 1.15% 2.99% 1.82% 2.32% 7%
2003 1.95 215 1.15 3.08 1.84 2.39 22
2002 (2) 7.13 1 1.15 3.01 1.98 2.18 3
Class Y
2004 (1) 2.73% $ 39,014 0.50% 3.64% 0.82% 3.32% 7%
2003 3.65 39,465 0.50 3.78 0.84 3.44 22
2002 (2) 7.41 38,083 0.50 3.74 0.98 3.26 3
OREGON INTERMEDIATE TAX FREE FUND
Class A
2004 (1) 2.21% $ 9,210 0.85% 3.55% 1.05% 3.35% 2%
2003 3.31 8,189 0.85 3.67 1.05 3.47 17
2002 7.23 7,030 0.85 3.95 1.05 3.75 18
2001 9.08 5,477 0.70 4.27 1.13 3.84 20
2000 4.79 3,303 0.70 4.47 1.13 4.04 18
1999 (3) (2.22) 2,005 0.70 4.37 1.12 3.95 13
Class Y
2004 (1) 2.39% $ 139,760 0.70% 3.70% 0.80% 3.60% 2%
2003 3.46 146,244 0.70 3.82 0.80 3.72 17
2002 7.39 151,928 0.70 4.10 0.80 4.00 18
2001 9.08 153,951 0.70 4.28 0.89 4.09 20
2000 4.78 160,124 0.70 4.47 0.88 4.29 18
1999 (0.66) 178,411 0.70 4.30 0.87 4.13 13
SHORT TAX FREE FUND
Class A
2004 (1) 0.74% $ 6,957 0.75% 2.54% 1.05% 2.24% 7%
2003 (4) 4.54 6,448 0.75 2.67 1.05 2.37 54
Class Y
2004 (1) 0.82% $ 436,565 0.60% 2.69% 0.80% 2.49% 7%
2003 (4) 4.66 396,918 0.60 3.00 0.80 2.80 54
TAX FREE FUND (5)
Class A
2004 (1) 3.22% $ 42,596 0.95% 4.12% 1.05% 4.02% 12%
2003 4.06 42,942 0.95 4.21 1.05 4.11 23
2002 8.56 43,708 0.95 4.20 1.02 4.13 39
2001 (6) 8.22 48,769 1.16 4.27 1.18 4.25 3
2000 (7) 7.43 1,526 0.98 4.34 1.09 4.23 4
1999 (8) (2.87) 1,582 0.96 4.14 1.16 3.94 --
Class C
2004 (1) 2.91% $ 3,165 1.35% 3.72% 1.80% 3.27% 12%
2003 3.67 4,880 1.35 3.81 1.80 3.36 23
2002 8.14 6,199 1.35 3.82 1.77 3.40 39
2001 (9) 0.27 4,494 1.04 5.61 1.04 5.61 3
Class Y
2004 (1) 3.35% $ 449,601 0.70% 4.37% 0.80% 4.27% 12%
2003 4.31 460,634 0.70 4.46 0.80 4.36 23
2002 8.84 497,140 0.70 4.47 0.77 4.40 39
2001 (6) 8.59 501,361 0.73 4.32 0.74 4.31 3
2000 (7) 7.63 253,803 0.78 4.54 1.19 4.13 4
1999 (8) (2.97) 326,840 0.76 4.33 1.16 3.93 --
</Table>
(6) For the period November 1, 2000 to September 30, 2001. Effective in 2001,
the Fund's fiscal year end was changed from October 31 to September 30.
All ratios for the period have been annualized, except total return and
portfolio turnover.
(7) For the period December 1, 1999 to October 31, 2000. Effective in 2000,
the Fund's fiscal year end was changed from November 30 from October 31.
All ratios for the period have been annualized, except total return and
portfolio turnover.
(8) For the fiscal year ended November 30.
(9) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(10) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
71
<Page>
NOTES TO FINANCIAL STATEMENTS March 31, 2004 (unaudited)
1> Organization
The First American Arizona Tax Free Fund, California Intermediate Tax Free
Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund,
Colorado Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate
Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska
Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund, Short
Tax Free Fund, and Tax Free Fund (each a "Fund" and collectively, the
"Funds") are mutual funds offered by First American Investment Funds, Inc.
("FAIF"), which is a member of the First American Family of Funds. FAIF
currently offers 37 funds, including the Funds listed above. FAIF is
registered under the Investment Company Act of 1940, as amended, as an
open-end investment management company. FAIF's articles of incorporation
permit the board of directors to create additional funds in the future.
Each of these Funds offers Class A and Class Y shares. Arizona Tax Free
Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free
Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund,
and Tax Free Fund also offer Class C shares. Class A shares of Arizona Tax
Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax
Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free
Fund, and Tax Free Fund are sold with a front-end sales charge of 4.25%.
Class A shares of California Intermediate Tax Free Fund, Colorado
Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota
Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short
Tax Free Fund are sold with a front-end sales charge of 2.25%. Class C
shares are sold with a front-end sales charge of 1.00% and are subject to a
contingent deferred sales charge for eighteen months. Class Y shares have
no sales charge and are offered only to qualifying institutional investors
and certain other qualifying accounts.
The Funds' prospectuses provide a description of each Fund's investment
objective, policies and strategies. The Intermediate Tax Free Fund, Short
Tax Free Fund, and Tax Free Fund are diversified funds. The Arizona Tax
Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund,
Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Minnesota
Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free
Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Oregon Intermediate
Tax Free Fund are non-diversified funds. Non-diversified funds may invest a
large component of their net assets in the securities of relatively few
issuers. All classes of shares in a Fund have identical voting, dividend,
liquidation, and other rights, and the same terms and conditions, except
that the level of distribution and shareholder servicing fees charged may
differ among classes and each class has exclusive voting rights on any
matters relating to that class' servicing or distribution arrangements.
2> Summary of Significant Accounting Policies
The significant accounting policies followed by the Funds are as follows:
SECURITY VALUATION - Security valuations for the Funds' investments are
furnished by independent pricing services that have been approved by the
Funds' board of directors. Debt obligations exceeding 60 days to maturity
are valued by an independent pricing service. The pricing service may
employ methodologies that utilize actual market transactions, broker-dealer
supplied valuations, or other formula-driven valuation techniques. These
techniques generally consider such factors as yields or prices of bonds of
comparable quality, type of issue, coupon, maturity, ratings, and general
market conditions. Securities for which prices are not available from an
independent pricing service, but where an active market exists, are valued
using market quotations obtained from one or more dealers that make markets
in the securities or from a widely-used quotation system. When market
quotations are not readily available, securities are valued at fair value
as determined in good faith by procedures established and approved by the
Funds' board of directors. Some of the factors which may be considered by
the board of directors in determining fair value are fundamental analytical
data relating to the investment; the nature and duration of any
restrictions on disposition; trading in similar securities of the same
issuer or comparable companies; information from broker-dealers; and an
evaluation of the forces that influence the market in which the securities
are purchased and sold. If events occur that materially affect the value of
securities between the close of trading in those securities and the close
of regular trading on the New York Stock Exchange, the securities will be
valued at fair value. As of March 31, 2004, the Funds held no fair-valued
securities. Debt obligations with 60 days or less remaining until maturity
may be valued at their amortized cost, which approximates market value.
Investments in open-end mutual funds are valued at the respective net asset
value of each underlying fund, determined at the close of the New York
Stock Exchange (generally 3:00 p.m. central time) on the valuation date.
72
<Page>
SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security
transactions on the trade date of the security purchase or sale. Interest
income, including amortization of bond premium and discount, is recorded on
an accrual basis. Security gains and losses are determined on the basis of
identified cost, which is the same basis used for federal FIRST AMERICAN
FUNDS Semiannual Report 2004#income tax purposes. Each Fund reserves the
right to pay part or all of the proceeds from a redemption request in a
proportionate share of readily marketable securities in the Fund instead of
cash. The resulting gain/loss is calculated as the difference between the
fair value and the underlying cost of the security on the transaction date.
DISTRIBUTIONS TO SHAREHOLDERS - Distributions from net investment income
are declared and paid monthly. Any net realized capital gains on sales of a
Fund's securities are distributed to shareholders at least annually.
FEDERAL TAXES - Each Fund is treated as a separate taxable entity. Each
Fund intends to continue to qualify as a regulated investment company as
provided in Subchapter M of the Internal Revenue Code, as amended, and to
distribute all taxable income, if any, to its shareholders. Accordingly, no
provision for federal income taxes is required.
Net investment income and net realized gains (losses) may differ for
financial statement and tax purposes because of temporary or permanent
book/tax differences. These differences are primarily due to redemptions
in-kind and income related to advisor reimbursements. To the extent these
differences are permanent, reclassifications are made to the appropriate
equity accounts in the period that the difference arises.
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. The character of the distributions paid during the
six months ended March 31, 2004 (estimated) and the year ended September
30, 2003, were characterized as follows (000):
<Table>
<Caption>
2004
-----------------------------------------------------
TAX EXEMPT ORDINARY LONG TERM
FUND INCOME INCOME GAIN TOTAL
--------------------------------------------------------------------------------------------------
Arizona Tax Free Fund $ 453 $ -- $ 99 $ 552
California Intermediate Tax Free Fund 959 -- 155 1,114
California Tax Free Fund 587 -- 210 797
Colorado Intermediate Tax Free Fund 1,273 -- -- 1,273
Colorado Tax Free Fund 566 -- 187 753
Intermediate Tax Free Fund 14,514 -- 837 15,351
Minnesota Intermediate Tax Free Fund 5,310 -- 503 5,813
Minnesota Tax Free Fund 3,759 -- 1,398 5,157
Missouri Tax Free Fund 3,715 -- 513 4,228
Nebraska Tax Free Fund 691 -- 123 814
Ohio Tax Free Fund 710 -- 369 1,079
Oregon Intermediate Tax Free Fund 2,816 -- 1,161 3,977
Short Tax Free Fund 5,512 -- 2,435 7,947
Tax Free Fund 11,093 -- 4,863 15,956
</Table>
<Table>
<Caption>
2003
-----------------------------------------------------
TAX EXEMPT ORDINARY LONG TERM
FUND INCOME INCOME GAIN TOTAL
--------------------------------------------------------------------------------------------------
Arizona Tax Free Fund $ 1,078 $ 29 $ 42 $ 1,149
California Intermediate Tax Free Fund 1,963 11 94 2,068
California Tax Free Fund 1,164 85 76 1,325
Colorado Intermediate Tax Free Fund 2,877 19 -- 2,896
Colorado Tax Free Fund 1,237 10 -- 1,247
Intermediate Tax Free Fund 28,635 9 -- 28,644
Minnesota Intermediate Tax Free Fund 11,012 63 411 11,486
Minnesota Tax Free Fund 7,778 348 125 8,251
Missouri Tax Free Fund 7,534 83 781 8,398
Nebraska Tax Free Fund 1,361 -- 25 1,386
Ohio Tax Free Fund 1,486 -- -- 1,486
Oregon Intermediate Tax Free Fund 5,872 32 219 6,123
Short Tax Free Fund 10,115 -- -- 10,115
Tax Free Fund 23,221 43 5,996 29,260
</Table>
73
<Page>
As of September 30, 2003, the Funds' most recently completed fiscal year
end, the components of accumulated earnings on a tax basis were (000):
<Table>
<Caption>
ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND TOTAL
ORDINARY TAX EXEMPT LONG TERM POST-OCTOBER UNREALIZED ACCUMULATED
FUND INCOME INCOME CAPITAL GAINS LOSSES APPRECIATION EARNINGS
-------------------------------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund $ 37 $ 33 $ 62 $ -- $ 1,721 $ 1,853
California Intermediate Tax Free Fund 78 36 74 -- 3,700 3,888
California Tax Free Fund -- 33 186 -- 2,004 2,223
Colorado Intermediate Tax Free Fund -- 63 -- (463) 5,317 4,917
Colorado Tax Free Fund 1 74 186 -- 2,523 2,784
Intermediate Tax Free Fund -- 587 152 -- 58,861 59,600
Minnesota Intermediate Tax Free Fund 29 124 463 -- 17,673 18,289
Minnesota Tax Free Fund 75 474 1,274 -- 10,283 12,106
Missouri Tax Free Fund -- 84 494 -- 12,180 12,758
Nebraska Tax Free Fund 29 40 94 -- 1,794 1,957
Ohio Tax Free Fund 83 2 186 -- 1,519 1,890
Oregon Intermediate Tax Free Fund 81 67 1,027 -- 9,782 10,957
Short Tax Free Fund 173 48 2,259 -- 13,087 15,567
Tax Free Fund 127 408 4,757 -- 34,775 40,067
</Table>
74
<Page>
As of September 30, 2003, the Funds' most recently completed fiscal year
end, the following Fund had capital loss carryforwards (000):
<Table>
<Caption>
EXPIRATION YEAR 2008 2009 TOTAL
---------------------------------------------------------------------------
FUND
COLORADO INTERMEDIATE TAX FREE FUND $ 2 $461 $ 463
</Table>
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS - Delivery and payment for
securities that have been purchased by a Fund on a forward-commitment or
when-issued basis can take place up to a month or more after the
transaction date. During this period, such securities are subject to market
fluctuations and the Fund maintains, in a segregated account with its
custodian, assets with a market value equal to or greater than the amount
of its purchase commitments. The purchase of securities on a when-issued or
forward-commitment basis may increase the volatility of a Fund's net asset
value if the Fund makes such investments while remaining substantially
fully invested. At March 31, 2004, the following Funds had outstanding
when-issued commitments (000):
<Table>
<Caption>
FUND COST SEGREGATED ASSETS
---------------------------------------------------------------------------
INTERMEDIATE TAX FREE FUND $ 1,496 $ 16,765
NEBRASKA TAX FREE FUND 489 2,903
SHORT TAX FREE FUND 5,000 10,334
TAX FREE FUND 1,981 40,429
</Table>
ILLIQUID SECURITIES AND RESTRICTED SECURITIES - At March 31, 2004, no Fund
held illiquid securities. A security may be considered illiquid if it lacks
a readily available market or if its valuation has not changed for a
certain period of time. Each Fund intends to invest no more than 15% of its
net assets (determined at the time of purchase and reviewed periodically)
in illiquid securities.
Certain restricted securities may be considered illiquid. Restricted
securities are often purchased in private placement transactions, are not
registered under the Securities Act of 1933, may have contractual
restrictions on resale, and may be valued under methods approved by the
Funds' board of directors as reflecting fair value. Certain restricted
securities eligible for resale to qualified institutional investors,
including Rule 144A securities, are not subject to the limitation on a
Fund's investment in illiquid securities if they are determined to be
liquid in accordance with procedures adopted by the Funds' board of
directors.
The following restricted securities, including Rule 144A securities, have
been determined to be liquid under the guidelines established by the Funds'
board of directors.
INTERMEDIATE TAX FREE FUND
<Table>
<Caption>
DATES
SECURITY PAR ACQUIRED COST BASIS
---------------------------------------------------------------------------
MASHANTUCKET WESTERN PEQUOT $ 4,170 01/98 $ 4,416
MORTON GROVE RESIDENTIAL HOUSING 5,570 08/95 6,180
</Table>
SHORT TAX FREE FUND
<Table>
<Caption>
DATES
SECURITY PAR ACQUIRED COST BASIS
---------------------------------------------------------------------------
MASHANTUCKET WESTERN PEQUOT $ 1,020 02/98 $ 1,029
</Table>
INVERSE FLOATERS - As part of their investment strategy, the Funds may
invest in certain securities for which the potential income return is
inversely related to changes in a floating interest rate ("inverse
floaters"). In general, income on inverse floaters will decrease when
short-term interest rates increase and increase when short-term interest
rates decrease. Inverse floaters may be characterized as derivative
securities and may subject a Fund to the risks of reduced or eliminated
interest payments and losses of invested principal. In addition, inverse
floaters have the effect of providing investment leverage and, as a result,
the market value of such securities will generally be more volatile than
that of fixed-rate, tax-exempt securities. To the extent the Funds invest
in inverse floaters, the net asset value of the Funds' shares may be more
volatile than if the Funds did not invest in such securities. At March 31,
2004, the Tax Free Fund had investments in inverse floaters with a value of
$3,367,230, which represents 0.1% of the Fund's net assets.
INTERFUND LENDING PROGRAM - Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Funds, along with other registered
investment companies in the First American Family of Funds, may participate
in an interfund lending program. This program provides an alternative
credit facility allowing the Funds to borrow from, or lend money to, other
participating funds. The Funds did not have any interfund lending
transactions during the six months ended March 31, 2004.
DEFERRED COMPENSATION PLAN - Under a Deferred Compensation Plan (the
"Plan"), non-interested directors of the First American Fund family may
participate and elect to defer receipt of their annual compensation.
Deferred amounts are treated as though equivalent dollar amounts had been
invested in shares of selected open-end First American Funds as designated
by the Directors. All amounts in the Plan are 100% vested and accounts
under the Plan are obligations of the Funds. Deferred amounts remain in the
Funds until distributed in accordance with the Plan.
75
<Page>
EXPENSES - Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses are generally
allocated to the Funds on the basis of relative net assets of all funds
within the First American Fund complex. Class specific expenses, such as
12b-1 fees, are borne by that class. Income, other expenses, and realized
and unrealized gains and losses of a Fund are allocated to each respective
class in proportion to the relative net assets of each class.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS - The
preparation of financial statements, in conformity with accounting
principles generally accepted in the United States, requires management to
make estimates and assumptions that affect the reported amount of assets
and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported results of operations
during the reporting period. Actual results could differ from those
estimates.
3> Fees and Expenses
ADVISOR FEES - Pursuant to an investment advisory agreement (the
"Agreement"), U.S. Bancorp Asset Management, Inc. ("USBAM"), manages each
Fund's assets and furnishes related office facilities, equipment, research,
and personnel. The Agreement requires each Fund to pay USBAM a monthly fee
based upon average daily net assets. The fee for each Fund was equal to an
annual rate of 0.50% of the average daily net assets of the Fund. USBAM
voluntarily waived fees during six months ended March 31, 2004 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 C Y
---------------------------------------------------------------------------
FUND
---------------------------------------------------------------------------
Arizona Tax Free Fund 0.75% 1.15% 0.50%
California Intermediate Tax Free Fund 0.85 -- 0.70
California Tax Free Fund 0.75 1.15 0.50
Colorado Intermediate Tax Free Fund 0.85 -- 0.70
Colorado Tax Free Fund 0.75 1.15 0.50
Intermediate Tax Free Fund 0.85 -- 0.70
Minnesota Intermediate Tax Free Fund 0.85 -- 0.70
Minnesota Tax Free Fund 0.95 1.35 0.70
Missouri Tax Free Fund 0.95 1.35 0.70
Nebraska Tax Free Fund 0.75 1.15 0.50
Ohio Tax Free Fund 0.75 1.15 0.50
Oregon Intermediate Tax Free Fund 0.85 -- 0.70
Short Tax Free Fund 0.75 -- 0.60
Tax Free Fund 0.95 1.35 0.70
</Table>
The Funds may invest in the money market funds that are series of First
American Funds, Inc. ("FAF"), subject to certain limitations. In order to
avoid the payment of duplicative investment advisory fees to USBAM, which
acts as the investment adviser to both the investing Funds and the related
money market funds, USBAM will reimburse each investing Fund an amount
equal to that portion of their investment advisory fee received from the
related money market funds that is attributable to the assets of the
investing Fund. For financial statement purposes, these reimbursements are
recorded as investment income.
CO-ADMINISTRATION FEES - USBAM and U.S. Bancorp Fund Services, LLC
("USBFS") (collectively the "Administrators"), serve as the
co-administrators pursuant to a co-administration agreement between the
Administrators and FAIF. USBAM is a subsidiary of U.S. Bank National
Association ("U.S. Bank"). Both U.S. Bank and USBFS are direct subsidiaries
of U.S. Bancorp. Under the co-administration agreement, the Administrators
are compensated to provide, or compensate other entities to provide,
services to the Funds. These services include various legal, oversight and
administrative services, accounting services, transfer agency and dividend
disbursing services, and shareholder services. The Funds pay the
Administrators at an annual rate, calculated daily and paid monthly, based
on the average daily net assets of all open-end mutual funds in the First
American Family of Funds, equal to each Fund's pro rata share of an amount
equal to 0.25% of the aggregate average daily net assets up to $8 billion,
0.235% of the next $17 billion of the aggregate average daily net assets,
0.22% of the next $25 billion of the aggregate daily net assets, and 0.20%
of the aggregate average daily net assets in excess of $50 billion. The
Funds pay transfer agent fees of $18,500 per share class. These fees are
allocated to each Fund based upon the Fund's pro rata share of the
aggregate average daily net assets of the Funds that comprise FAIF. Each
Fund also pays additional per account fees for transfer agent services. For
the six months ended March 31, 2004, administration fees paid to USBAM and
USBFS for the Funds included in this semiannual report were as follows
(000):
<Table>
<Caption>
FUND AMOUNT
---------------------------------------------------------------------------
Arizona Tax Free Fund $ 29
California Intermediate Tax Free Fund 64
California Tax Free Fund 37
Colorado Intermediate Tax Free Fund 85
Colorado Tax Free Fund 35
Intermediate Tax Free Fund 954
Minnesota Intermediate Tax Free Fund 353
Minnesota Tax Free Fund 241
Missouri Tax Free Fund 255
Nebraska Tax Free Fund 47
Ohio Tax Free Fund 53
Oregon Intermediate Tax Free Fund 198
Short Tax Free Fund 553
Tax Free Fund 657
</Table>
76
<Page>
CUSTODIAN FEES - U.S. Bank serves as the Funds' custodian pursuant to a
custodian agreement with FAIF. The fee for each Fund is equal to an annual
rate of 0.01% of average daily net assets. All fees are computed daily and
paid monthly.
DISTRIBUTION AND SHAREHOLDER SERVICING FEES - Quasar Distributors, LLC
("Quasar"), a subsidiary of U.S. Bancorp, serves as distributor of the
Funds pursuant to distribution agreements with FAIF. Under the respective
distribution agreements, each of the Funds pays Quasar a monthly
distribution and/or shareholder servicing fee equal to an annual rate of
0.25% and 1.00% of each Fund's average daily net assets of the Class A
shares and Class C shares, respectively. These fees may be used by Quasar
to provide compensation for sales support, distribution activities, or
shareholder servicing activities. The distributor is currently limiting its
fee to 0.15% of average daily net assets for Class A shares in the
California Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund,
Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Oregon
Intermediate Tax Free Fund, and Short Tax Free Fund. For Class C shares,
the distributor is currently limiting fees to 0.65% of average daily net
assets for Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax
Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax
Free Fund, Ohio Tax Free Fund, and Tax Free Fund. No distribution or
shareholder servicing fees are paid by Class Y shares.
For the six months ended March 31, 2004, total distribution and shareholder
servicing fees waived by the distributor for the Funds included in this
semiannual report were as follows (000):
<Table>
<Caption>
FUND AMOUNT
---------------------------------------------------------------------------
Arizona Tax Free Fund $ 3
California Intermediate Tax Free Fund 2
California Tax Free Fund 2
Colorado Intermediate Tax Free Fund 9
Colorado Tax Free Fund 7
Intermediate Tax Free Fund 18
Minnesota Intermediate Tax Free Fund 16
Minnesota Tax Free Fund 21
Missouri Tax Free Fund --
Nebraska Tax Free Fund 3
Ohio Tax Free Fund --
Oregon Intermediate Tax Free Fund 4
Short Tax Free Fund 4
Tax Free Fund 8
</Table>
Under the distribution agreements, the following amounts were retained by
Quasar or paid to affiliates of USBAM for the six months ended March 31,
2004 (000):
<Table>
<Caption>
FUND AMOUNT
---------------------------------------------------------------------------
Arizona Tax Free Fund $ 19
California Intermediate Tax Free Fund 3
California Tax Free Fund 18
Colorado Intermediate Tax Free Fund 14
Colorado Tax Free Fund 29
Intermediate Tax Free Fund 26
Minnesota Intermediate Tax Free Fund 25
Minnesota Tax Free Fund 198
Missouri Tax Free Fund 37
Nebraska Tax Free Fund 12
Ohio Tax Free Fund 2
Oregon Intermediate Tax Free Fund 6
Short Tax Free Fund 5
Tax Free Fund 68
</Table>
OTHER FEES - In addition to the investment advisory fees, custodian fees,
distribution and shareholder servicing fees, and co-administration fees,
each Fund is responsible for paying most other operating expenses including
fees and expenses of outside directors, registration fees, printing of
shareholder reports, legal, auditing, insurance, and other miscellaneous
expenses. For the 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.
SALES CHARGES - A contingent deferred sales charge ("CDSC") of 1.00% is
imposed on redemptions made in the Class C shares for the first eighteen
months. The CDSC is imposed on the value of the purchased shares or the
value at the time of redemption, whichever is less.
For the six months ended March 31, 2004, total sales charges retained by
affiliates of USBAM for distributing the Funds' shares were as follows
(000):
<Table>
<Caption>
FUND AMOUNT
---------------------------------------------------------------------------
Arizona Tax Free Fund $ 17
California Intermediate Tax Free Fund 11
California Tax Free Fund 22
Colorado Intermediate Tax Free Fund 16
Colorado Tax Free Fund 20
Intermediate Tax Free Fund 70
Minnesota Intermediate Tax Free Fund 88
Minnesota Tax Free Fund 43
Missouri Tax Free Fund 24
Nebraska Tax Free Fund 30
Ohio Tax Free Fund 16
Oregon Intermediate Tax Free Fund 24
Short Tax Free Fund 11
Tax Free Fund 51
</Table>
77
<Page>
4> Capital Share Transactions
FAIF has 420 billion shares of $0.0001 par value capital stock authorized.
Capital share transactions for the Funds were as follows (000):
<Table>
<Caption>
ARIZONA CALIFORNIA COLORADO
TAX FREE INTERMEDIATE CALIFORNIA INTERMEDIATE
FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02
to to to to to to to to
3/31/04 9/30/03 3/31/04 9/30/03 3/31/04 9/30/03 3/31/04 9/30/03
- -----------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
Class A:
Shares issued 108 459 69 133 99 124 108 1,771
Shares issued in lieu of cash distributions 21 49 7 14 22 43 22 62
Shares redeemed (310) (543) (74) (197) (166) (303) (674) (1,168)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS (181) (35) 2 (50) (45) (136) (544) 665
===================================================================================================================================
Class C:
Shares issued -- 34 -- -- 18 13 -- --
Shares issued in lieu of cash distributions 2 8 -- -- 3 4 -- --
Shares redeemed (22) (133) -- -- (30) (17) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS (20) (91) -- -- (9) -- -- --
===================================================================================================================================
Class Y:
Shares issued 141 293 376 428 188 660 98 985
Shares issued in lieu of cash distributions 2 3 3 4 2 5 -- 1
Shares redeemed (111) (414) (248) (429) (80) (347) (435) (1,016)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 32 (118) 131 3 110 318 (337) (30)
===================================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES (169) (244) 133 (47) 56 182 (881) 635
===================================================================================================================================
</Table>
<Table>
<Caption>
COLORADO
TAX FREE INTERMEDIATE
FUND TAX FREE FUND
- -------------------------------------------------------------------------------------------------------------
10/1/03 10/1/02 10/1/03 10/1/02
to to to to
3/31/04 9/30/03 3/31/04 9/30/03
- -------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited)
Class A:
Shares issued 65 97 883 1,388
Shares issued in lieu of cash distributions 28 55 51 83
Shares redeemed (202) (642) (760) (1,077)
- -------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS (109) (490) 174 394
=============================================================================================================
Class C:
Shares issued 18 120 -- --
Shares issued in lieu of cash distributions 8 13 -- --
Shares redeemed (71) (80) -- --
- -------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS (45) 53 -- --
=============================================================================================================
Class Y:
Shares issued 69 146 5,155 11,900
Shares issued in lieu of cash distributions 1 2 123 164
Shares redeemed (59) (119) (6,301) (12,662)
Shares issued in connection with acquisition
of Common Trust Fund net assets -- -- -- 19,435
- -------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 11 29 (1,023) 18,837
=============================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES (143) (408) (849) 19,231
=============================================================================================================
<Caption>
MINNESOTA
INTERMEDIATE MINNESOTA MISSOURI
TAX FREE FUND TAX FREE FUND TAX FREE FUND
- ---------------------------------------------------------------------------------------------------------------------------------
10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02
to to to to to to
3/31/04 9/30/03 3/31/04 9/30/03 3/31/04 9/30/03
- ---------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
Class A:
Shares issued 790 1,958 317 1,549 181 486
Shares issued in lieu of cash distributions 47 75 285 457 24 54
Shares redeemed (495) (956) (879) (2,807) (229) (389)
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 342 1,077 (277) (801) (24) 151
=================================================================================================================================
Class C:
Shares issued -- -- 42 279 -- 20
Shares issued in lieu of cash distributions -- -- 26 40 1 --
Shares redeemed -- -- (83) (292) (2) --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS -- -- (15) 27 (1) 20
=================================================================================================================================
Class Y:
Shares issued 1,299 3,848 277 470 705 1,571
Shares issued in lieu of cash distributions 18 32 14 24 16 30
Shares redeemed (1,545) (4,937) (433) (1,071) (1,187) (2,122)
Shares issued in connection with acquisition
of Common Trust Fund net assets -- -- -- -- -- 2,697
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS (228) (1,057) (142) (577) (466) 2,176
=================================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 114 20 (434) (1,351) (491) 2,347
=================================================================================================================================
</Table>
<Table>
<Caption>
NEBRASKA OREGON
TAX FREE OHIO INTERMEDIATE
FUND TAX FREE FUND TAX FREE FUND
- ----------------------------------------------------------------------------------------------------------------
10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02
to to to to to to
3/31/04 9/30/03 3/31/04 9/30/03 3/31/04 9/30/03
- ----------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
Class A:
Shares issued 44 94 57 43 129 365
Shares issued in lieu of cash distributions 6 11 1 1 14 18
Shares redeemed (76) (107) (10) (6) (42) (268)
- ----------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS (26) (2) 48 38 101 115
================================================================================================================
Class C:
Shares issued 36 75 9 20 -- --
Shares issued in lieu of cash distributions 2 4 -- -- -- --
Shares redeemed (27) (14) (5) -- -- --
- ----------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 11 65 4 20 -- --
================================================================================================================
Class Y:
Shares issued 229 420 262 680 694 1,712
Shares issued in lieu of cash distributions 3 5 15 19 68 31
Shares redeemed (71) (343) (319) (560) (1,336) (2,207)
- ----------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 161 82 (42) 139 (574) (464)
================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 146 145 10 197 (473) (349)
================================================================================================================
<Caption>
SHORT
TAX FREE FUND TAX FREE FUND
- ---------------------------------------------------------------------------------------------
10/1/03 10/25/02(1) 10/1/03 10/1/02
to to to to
3/31/04 9/30/03 3/31/04 9/30/03
- ---------------------------------------------------------------------------------------------
(unaudited) (unaudited)
Class A:
Shares issued 168 1,072 399 885
Shares issued in lieu of cash distributions 10 5 102 184
Shares redeemed (120) (444) (533) (1,083)
- ---------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 58 633 (32) (14)
=============================================================================================
Class C:
Shares issued -- -- 33 40
Shares issued in lieu of cash distributions -- -- 12 26
Shares redeemed -- -- (197) (176)
- ---------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS -- -- (152) (110)
=============================================================================================
Class Y:
Shares issued 9,432 51,494 2,569 4,962
Shares issued in lieu of cash distributions 307 18 77 141
Shares redeemed (5,360) (12,525) (3,636) (7,734)
- ---------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 4,379 38,987 (990) (2,631)
=============================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 4,437 39,620 (1,174) (2,755)
=============================================================================================
</Table>
(1) Commencement of operations.
78
<Page>
5> Investment Security Transactions
During the six months ended March 31, 2004, purchases of securities and
proceeds from sales of securities, other than temporary investments in
short-term securities, were as follows (000):
<Table>
<Caption>
PURCHASES SALES
---------------------------------------------------------------------------
Arizona Tax Free Fund $ 1,766 $ 3,376
California Intermediate Tax Free Fund 4,019 4,540
California Tax Free Fund 1,504 1,412
Colorado Intermediate Tax Free Fund 1,721 10,346
Colorado Tax Free Fund 2,035 2,804
Intermediate Tax Free Fund 40,186 55,195
Minnesota Intermediate Tax Free Fund 11,093 12,706
Minnesota Tax Free Fund 32,563 33,267
Missouri Tax Free Fund 3,333 11,279
Nebraska Tax Free Fund 3,439 1,334
Ohio Tax Free Fund 2,678 2,934
Oregon Intermediate Tax Free Fund 3,375 8,073
Short Tax Free Fund 89,836 26,519
Tax Free Fund 60,062 67,779
</Table>
The aggregate gross unrealized appreciation and depreciation for securities
held by the Funds and the total cost of securities for federal income tax
purposes at March 31, 2004, were as follows (000):
<Table>
<Caption>
FEDERAL
AGGREGATE AGGREGATE INCOME
GROSS GROSS TAX
APPRECIATION DEPRECIATION NET COST
---------------------------------------------------------------------------------------
Arizona Tax Free Fund $ 2,048 $ -- $ 2,048 $ 19,137
California Intermediate Tax Free Fund 3,585 (17) 3,568 46,105
California Tax Free Fund 2,198 (7) 2,191 25,658
Colorado Intermediate Tax Free Fund 5,005 -- 5,005 55,566
Colorado Tax Free Fund 2,721 (12) 2,709 22,996
Intermediate Tax Free Fund 59,092 (561) 58,531 657,236
Minnesota Intermediate Tax Free Fund 17,858 (186) 17,672 250,145
Minnesota Tax Free Fund 11,490 (147) 11,343 167,606
Missouri Tax Free Fund 12,989 (35) 12,954 177,554
Nebraska Tax Free Fund 2,087 (17) 2,070 34,276
Ohio Tax Free Fund 1,817 -- 1,817 38,199
Oregon Intermediate Tax Free Fund 10,120 (42) 10,078 138,251
Short Tax Free Fund 10,797 (152) 10,645 432,453
Tax Free Fund 38,370 (958) 37,412 454,216
</Table>
6> Payments Made by Affiliates
In October 2002, an ineligible security was purchased in the Tax Free Fund.
A loss occurred as a result of bringing the Tax Free Fund back into
compliance. USBAM fully reimbursed the Tax Free Fund for the loss on this
transaction. The amount of the loss and resulting reimbursement was $52,643
or $0.001 per share based upon the shares outstanding as of September 30,
2003, and had no impact on total return. In January 2003, an ineligible
security was purchased in the Missouri Tax Free Fund. No loss was incurred
as a result of bringing the Missouri Tax Free Fund back into compliance,
however USBAM reimbursed Missouri Tax Free Fund for the amount of the
commission. The amount of the reimbursement was $750 or $0.000 per share
based upon the shares outstanding as of September 30, 2003, and had no
impact on total return.
7> Concentration of Credit Risk
The Arizona Tax Free Fund, California Intermediate Tax Free Fund,
California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax
Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund,
Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and
Oregon Intermediate Tax Free Fund invest in debt instruments of municipal
issuers in specific states. Although these Funds monitor investment
concentration, the issuers' ability to meet their obligations may be
affected by economic developments in a specific state or region.
Additionally, each state has various guidelines relating to the tax
treatment of the income distributed from each Fund.
The rating of long-term securities as a percentage of the total value of
investments at March 31, 2004, was as follows:
<Table>
<Caption>
STANDARD & CALIFORNIA COLORADO
POOR'S/ ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE
MOODY'S TAX FREE TAX FREE TAX FREE TAX FREE
RATINGS: FUND FUND FUND FUND
---------------------------------------------------------------------------
AAA/Aaa 61.8% 53.8% 54.7% 59.0%
AA/Aa 15.7 8.7 15.9 15.9
A/A 3.3 11.2 5.8 4.2
BBB/Baa 12.0 23.4 20.8 10.0
NR 7.2 2.9 2.8 10.9
---------------------------------------------------------------------------
100% 100% 100% 100%
---------------------------------------------------------------------------
</Table>
<Table>
<Caption>
STANDARD & MINNESOTA
POOR'S/ COLORADO INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI
MOODY'S TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE
RATINGS: FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------
AAA/Aaa 61.2% 60.4% 56.2% 35.6% 49.9%
AA/Aa 14.3 14.6 24.2 22.3 45.6
A/A 8.6 10.2 7.6 17.6 1.1
BBB/Baa 13.1 9.5 4.1 5.0 1.8
NR 2.8 5.3 7.9 19.5 1.6
-----------------------------------------------------------------------------
100% 100% 100% 100% 100%
-----------------------------------------------------------------------------
</Table>
<Table>
<Caption>
STANDARD & OREGON
POOR'S/ NEBRASKA OHIO INTERMEDIATE SHORT
MOODY'S TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE
RATINGS: FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------
AAA/Aaa 44.7% 57.1% 57.3% 41.5% 47.9%
AA/Aa 41.9 37.2 34.1 26.3 11.6
A/A 6.1 4.7 3.5 14.3 15.1
BBB/Baa -- -- 2.7 12.1 15.1
B -- -- -- -- 0.1
NR 7.3 1.0 2.4 5.8 10.2
-----------------------------------------------------------------------------
100% 100% 100% 100% 100%
-----------------------------------------------------------------------------
</Table>
Securities rated by only one agency are shown in that category. Securities
rated by both agencies are shown with their highest rating.
79
<Page>
8> 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.
9> Common Trust Fund Conversions
On October 25, 2002, the Intermediate Tax Free Fund acquired substantially
all of the assets of the Total Return Tax Exempt Bond Common Trust Fund
(sponsored by U.S. Bank) in exchange for Class Y shares of the Intermediate
Tax Free Fund. On November 22, 2002, the Missouri Tax Free Fund acquired
substantially all of the assets of the Common Fund M (Joplin) Common Trust
Fund (sponsored by U.S. Bank) in exchange for Class Y shares of the
Missouri Tax Free Fund. In addition, the First American Short Tax Free Fund
shell portfolio acquired substantially all of the assets of the
Intermediate Tax Exempt Bond Common Trust Fund (sponsored by U.S. Bank) in
exchange for Class Y of the Short Tax Free Fund. The following table
illustrates the specifics of the common trust fund conversions of certain
Funds included in this semiannual report (000):
<Table>
<Caption>
ACQUIRED SHARES ISSUED TO
FUNDS NET SHAREHOLDERS OF
ACQUIRED FUND ACQUIRING FUND ASSETS ACQUIRED FUND
- --------------------------------------------------------------------------------------------------------------------------------
Total Return Tax Exempt Bond Common Trust Fund Intermediate Tax Free Fund - Class Y $ 213,002(2) 19,435
Common Fund M (Joplin) Common Trust Fund Missouri Tax Free Fund - Class Y 32,466(3) 2,697
Intermediate Tax Exempt Bond Common Trust Fund Short Tax Free Fund - Class Y (1) 314,140 31,414
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
ACQUIRING FUND COMBINED TAX STATUS
ACQUIRED FUND NET ASSETS NET ASSETS OF TRANSFER
- -------------------------------------------------------------------------------------------
Total Return Tax Exempt Bond Common Trust Fund $ 516,336 $ 729,338 Non-taxable
Common Fund M (Joplin) Common Trust Fund 164,002 196,468 Non-taxable
Intermediate Tax Exempt Bond Common Trust Fund -- 314,140 Non-taxable
- -------------------------------------------------------------------------------------------
</Table>
(1) Shell portfolio.
(2) Includes unrealized appreciation of $18,817.
(3) Includes unrealized appreciation of $1,187.
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.
80
<Page>
[GRAPHIC]
BOARD OF DIRECTORS First American Investment Funds, Inc.
VIRGINIA STRINGER
Chairperson of First American Investment Funds, Inc.
Owner and President of Strategic Management Resources, Inc.
BENJAMIN FIELD III
Director of First American Investment Funds, Inc.
Senior Financial Advisor to, and formerly Senior Vice President,
Chief Financial Officer, and Treasurer of, Bemis Company, Inc.
MICKEY FORET
Director of First American Investment Funds, Inc.
Consultant to, and formerly Executive Vice President and Chief Financial
Officer of, Northwest Airlines, Inc.
ROGER GIBSON
Director of First American Investment Funds, Inc.
Retired; former Vice President of Cargo-United Airlines
VICTORIA HERGET
Director of First American Investment Funds, Inc.
Investment Consultant; former Managing Director of Zurich Scudder Investments
LEONARD KEDROWSKI
Director of First American Investment Funds, Inc.
Owner and President of Executive and Management Consulting, Inc.
RICHARD RIEDERER
Director of First American Investment Funds, Inc.
Retired; former President and Chief Executive Officer of Weirton Steel
JOSEPH STRAUSS
Director of First American Investment Funds, Inc.
Owner and President of Strauss Management Company
JAMES WADE
Director of First American Investment Funds, Inc.
Owner and President of Jim Wade Homes
FIRST AMERICAN INVESTMENT FUNDS, 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
Investment 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.
0138-04 5/2004 SAR-TAXFREE
<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 Investment 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