<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-8194
FINANCIAL INVESTORS TRUST
-------------------------
(Exact name of registrant as specified in charter)
1625 Broadway, Suite 2200, Denver, Colorado 80202
-------------------------------------------------
(Address of principal executive offices) (Zip code)
Erin E. Douglas, Secretary
Financial Investors Trust
1625 Broadway, Suite 2200
Denver, CO 80202
----------------
(Name and address of agent for service)
Registrant's Telephone Number, including Area Code: (303) 623-2577
--------------
Date of fiscal year end: April 30
--------
Date of reporting period: October 31, 2003 - April 30, 2004
---------------------------------
<Page>
Item 1. Reports to Stockholders
INVESTMENT ADVISER
SSgA FUNDS MANAGEMENT, INC.
1 INTERNATIONAL PLACE, 25TH FLOOR
BOSTON, MASSACHUSETTS 02110
ADMINISTRATOR, TRANSFER AGENT & FUND ACCOUNTANT
ALPS MUTUAL FUNDS SERVICES, INC.
1625 BROADWAY
SUITE 2200
DENVER, COLORADO 80202
DISTRIBUTOR
ALPS DISTRIBUTORS, INC.
1625 BROADWAY
SUITE 2200
DENVER, COLORADO 80202
LEGAL COUNSEL
DAVIS GRAHAM & STUBBS LLP
1550 SEVENTEENTH STREET
SUITE 500
DENVER, COLORADO 80202
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
555 SEVENTEENTH STREET
SUITE 3600
DENVER, COLORADO 80202
CUSTODIAN
STATE STREET BANK & TRUST COMPANY
OF CONNECTICUT N.A.
750 MAIN STREET
SUITE 1114
HARTFORD, CONNECTICUT 06103
SUB-CUSTODIAN
STATE STREET BANK & TRUST COMPANY
1776 HERITAGE DRIVE
NORTH QUINCY, MASSACHUSETTS 02171
MUST BE ACCOMPANIED OR PRECEDED BY A
CURRENT PROSPECTUS.
FOR MORE INFORMATION, PLEASE CALL
800.298.3442 OR VISIT
www.fitfunds.com
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
ANNUAL REPORT
[FINANCIAL INVESTORS TRUST LOGO]
APRIL 30, 2004
<Page>
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
FINANCIAL INVESTORS TRUST
WE HAVE AUDITED THE ACCOMPANYING STATEMENTS OF ASSETS AND LIABILITIES, INCLUDING
THE STATEMENTS OF INVESTMENTS, OF THE U.S. TREASURY MONEY MARKET FUND, U.S.
GOVERNMENT MONEY MARKET FUND AND PRIME MONEY MARKET FUND OF THE FINANCIAL
INVESTORS TRUST (THE "TRUST"), AS OF APRIL 30, 2004, AND THE RELATED STATEMENTS
OF OPERATIONS FOR THE YEAR THEN ENDED, THE STATEMENTS OF CHANGES IN NET ASSETS
FOR EACH OF THE TWO YEARS IN THE PERIOD THEN ENDED, AND THE FINANCIAL HIGHLIGHTS
FOR EACH OF THE PERIODS INDICATED. THESE FINANCIAL STATEMENTS AND FINANCIAL
HIGHLIGHTS ARE THE RESPONSIBILITY OF THE TRUST'S MANAGEMENT. OUR RESPONSIBILITY
IS TO EXPRESS AN OPINION ON THESE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS
BASED ON OUR AUDITS.
WE CONDUCTED OUR AUDITS IN ACCORDANCE WITH STANDARDS OF THE PUBLIC COMPANY
ACCOUNTING OVERSIGHT BOARD. THOSE STANDARDS REQUIRE THAT WE PLAN AND PERFORM THE
AUDIT TO OBTAIN REASONABLE ASSURANCE ABOUT WHETHER THE FINANCIAL STATEMENTS AND
FINANCIAL HIGHLIGHTS ARE FREE OF MATERIAL MISSTATEMENT. AN AUDIT INCLUDES
EXAMINING, ON A TEST BASIS, EVIDENCE SUPPORTING THE AMOUNTS AND DISCLOSURES IN
THE FINANCIAL STATEMENTS. OUR PROCEDURES INCLUDED CONFIRMATION OF SECURITIES
OWNED AS OF APRIL 30, 2004, BY CORRESPONDENCE WITH THE CUSTODIAN. AN AUDIT ALSO
INCLUDES ASSESSING THE ACCOUNTING PRINCIPLES USED AND SIGNIFICANT ESTIMATES MADE
BY MANAGEMENT, AS WELL AS EVALUATING THE OVERALL FINANCIAL STATEMENT
PRESENTATION. WE BELIEVE THAT OUR AUDITS PROVIDE A REASONABLE BASIS FOR OUR
OPINION.
IN OUR OPINION, THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS REFERRED TO
ABOVE PRESENT FAIRLY, IN ALL MATERIAL RESPECTS, THE FINANCIAL POSITION OF U.S.
TREASURY MONEY MARKET FUND, U.S. GOVERNMENT MONEY MARKET FUND AND PRIME MONEY
MARKET FUND OF FINANCIAL INVESTORS TRUST AS OF APRIL 30, 2004, THE RESULTS OF
THEIR OPERATIONS FOR THE YEAR THEN ENDED, THE CHANGES IN THEIR NET ASSETS FOR
EACH OF THE TWO YEARS IN THE PERIOD THEN ENDED, AND THE FINANCIAL HIGHLIGHTS FOR
EACH OF THE PERIODS INDICATED, IN CONFORMITY WITH ACCOUNTING PRINCIPLES
GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA.
DELOITTE & TOUCHE LLP
DENVER, COLORADO
JUNE 15, 2004
1
<Page>
STATEMENT OF INVESTMENTS
U.S. TREASURY MONEY MARKET FUND
APRIL 30, 2004
<Table>
<Caption>
FACE VALUE VALUE*
- -------------- --------------
U.S. TREASURY OBLIGATIONS 41.43%
U.S. Treasury Bills:
$ 2,000,000 0.97%, 7/8/04 $ 1,996,461
11,000,000 0.99%, 9/9/04 10,961,307
2,000,000 0.99%, 9/30/04 1,991,724
U.S. Treasury Notes:
3,000,000 2.88%, 6/30/04 3,008,750
1,000,000 2.25%, 7/31/04 1,002,852
--------------
TOTAL U.S. TREASURY OBLIGATIONS 18,961,094
(Cost $18,961,094) --------------
<Caption>
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS 58.57% COLLATERAL VALUE
- -----------------------------------------------------------------------------------------------------------------
Agreement with ABN AMRO Bank and Bank of New York
(Tri-party), 0.93%, dated 4/30/04 and maturing 5/3/04,
collateralized by Government National Mortgage Association
Pass-Through Certificate, Pool #G22701, 6.50% due 1/20/29,
and U.S. Treasury Notes, 3.00-8.13% due 11/15/07-8/15/27
with a repurchase amount of $1,500,039 1,500,000 $ 1,530,172
Agreement with Bank of America and Bank of New York
(Tri-party), 1.00%, dated 4/30/04 and maturing 5/3/04,
collateralized by U.S. Treasury Note, 4.25% due 8/15/13
with a repurchase amount of $1,500,042 1,500,000 1,530,086
Agreement with Credit Suisse First Boston and J.P. Morgan
Chase & Co. (Tri-party), 0.93%, dated 4/30/04 and maturing
5/3/04, collateralized by U.S. Treasury Note, 2.25% due
4/30/06 with a repurchase amount of $9,000,233 9,000,000 9,182,796
Agreement with Deutsche Bank and Bank of New York
(Tri-party), 0.93%, dated 4/30/04 and maturing 5/3/04,
collateralized by U.S. Treasury Note, 1.63% due 2/28/06
with a repurchase amount of $9,000,233 9,000,000 9,180,357
Agreement with Goldman Sachs & Co. and Bank of New
York (Tri-party), 0.90%, dated 4/30/04 and maturing 5/3/04,
collateralized by U.S. Treasury Note, 1.63% due 2/28/06
with a repurchase amount of $1,500,038 1,500,000 1,530,721
</Table>
2
<Page>
<Table>
<Caption>
VALUE* COLLATERAL VALUE
-------------- ----------------
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS (CONTINUED)
Agreement with Lehman Brothers, Inc. and J.P. Morgan Chase
& Co. (Tri-party), 1.00%, dated 4/30/04 and maturing 5/3/04,
collateralized by U.S. Treasury Notes, 7.63-9.13% due
5/15/18-2/15/25 with a repurchase amount of $1,301,036 $ 1,301,000 $ 1,330,749
Agreement with Morgan Stanley & Co., Inc. and Bank of New
York (Tri-party), 0.93%, dated 4/30/04 and maturing 5/3/04,
collateralized by U.S. Treasury Note, 8.88% due 2/15/19 with
a repurchase amount of $1,500,039 1,500,000 1,530,807
Agreement with UBS Warburg, LLC and J.P. Morgan
Chase & Co. (Tri-party), 0.93%, dated 4/30/04 and maturing
5/3/04, collateralized by U.S. Treasury Note, 2.88% due
6/30/04 with a repurchase amount of $1,500,039 1,500,000 1,534,221
---------------------------------
TOTAL REPURCHASE AGREEMENTS 26,801,000 27,349,909
(Cost $26,801,000) ---------------------------------
TOTAL INVESTMENTS 100.00% $ 45,762,094
(Cost $47,762,094)
Liabilities in Excess of Other Assets 0.00% (187)
----------------------------
NET ASSETS 100.00% $ 45,761,907
============================
</Table>
* See Note 1 to financial statements.
Income Tax Information:
Total cost for federal income tax purposes: $45,762,094
3
<Page>
STATEMENT OF INVESTMENTS
U.S. GOVERNMENT MONEY MARKET FUND
APRIL 30, 2004
<Table>
<Caption>
FACE VALUE VALUE*
- -------------- --------------
U.S. GOVERNMENT AGENCY & OBLIGATIONS 61.01%
U.S. Treasury Note
$ 5,000,000 2.25%, 7/31/04 $ 5,014,258
Federal Home Loan Bank
10,000,000 1.05%, 7/21/04 DN 9,976,889
10,000,000 1.05%, 8/6/04 DN 9,972,227
10,002,000 1.05%, 8/13/04 DN 9,972,179
Federal Home Loan Mortgage Corp.
15,000,000 1.01%, 5/10/04** 14,997,708
6,619,000 1.02%, 6/7/04 DN 6,612,417
8,393,000 1.02%, 6/16/04 DN 8,382,506
7,000,000 1.09%, 8/10/04 DN 6,978,965
5,000,000 1.16%, 10/12/04 DN 4,973,886
Federal National Mortgage Association
25,000,000 1.05%, 6/10/04** 25,000,000
7,102,000 1.03%, 5/26/04 DN 7,097,315
10,000,000 1.02%, 6/11/04** 9,998,457
5,000,000 1.05%, 7/21/04 DN 4,988,475
7,000,000 1.09%, 9/29/04 DN 6,968,545
20,000,000 1.06%, 11/18/04 DN 19,882,770
--------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS 150,816,597
(Cost $150,816,597) --------------
</Table>
4
<Page>
<Table>
<Caption>
VALUE* COLLATERAL VALUE
-------------- ----------------
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS 39.04%
Agreement with ABN AMRO Bank and Bank of New York
(Tri-party), 1.04%, dated 4/30/04 and maturing 5/3/04,
collateralized by Federal Home Loan Mortgage Corp.
Participation Certificates, Pools #B90296, B90397, B90446,
B90460, B90471, G11202, G20010, 6.00-10.00% due
11/1/16-10/1/31, and Federal National Mortgage Association
Pass-Through Certificate, Pool #254689, 6.00% due 3/1/23
with a repurchase amount of $50,001,444 $ 50,000,000 $ 51,000,000
Agreement with Lehman Brothers, Inc. and J.P. Morgan Chase &
Co. (Tri-party), 1.04%, dated 4/30/04 and maturing 5/3/04,
collateralized by Federal Home Loan Bank Bond, 3.63% due
11/14/08 with a repurchase amount of $6,514,188 6,514,000 6,647,620
Agreement with UBS Warburg, LLC and J.P. Morgan Chase & Co.
(Tri-party), 1.04%, dated 4/30/04 and maturing 5/3/04,
collateralized by Federal Home Loan Bank Bonds, 3.88-4.88%
due 12/15/04-11/15/06 with a repurchase amount of
$40,001,156 40,000,000 40,804,888
---------------------------------
TOTAL REPURCHASE AGREEMENTS 96,514,000 98,452,508
(Cost $96,514,000) ---------------------------------
TOTAL INVESTMENTS 100.05% $ 247,330,597
(Cost $247,330,597)
Liabilities in Excess of Other Assets -0.05% (112,649)
----------------------------
NET ASSETS 100.00% $ 247,217,948
============================
</Table>
* See Note 1 to financial statements.
** Floating rate security - rate disclosed as of April 30, 2004. Maturity date
represents the next interest rate reset date.
DN - Discount Note
Income Tax Information:
Total cost for federal income tax purposes: $247,330,597
As of April 30, 2004, the U.S. Government Money Market Fund had capital loss
carryovers of $2,673 and $1,193 available to offset capital gains to the extent
provided in regulations, which will expire on April 30, 2006 and 2008,
respectively.
5
<Page>
STATEMENT OF INVESTMENTS
PRIME MONEY MARKET FUND
APRIL 30, 2004
<Table>
<Caption>
FACE VALUE VALUE*
- -------------- --------------
U.S. GOVERNMENT AGENCY &OBLIGATIONS 10.44%
Federal Home Loan Mortgage Corp.
$ 5,000,000 1.01%, 5/10/04** $ 4,999,236
3,000,000 5.00%, 5/15/04 3,003,683
Federal National Mortgage Association
2,000,000 1.08%, 5/28/04 DN 1,998,489
3,000,000 1.10%, 6/25/04 DN 2,995,111
4,000,000 1.06%, 9/15/04 DN 3,984,084
--------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS 16,980,603
(Cost $16,980,603) --------------
</Table>
<Table>
<Caption>
DUE DATE DISCOUNT RATE OR COUPON RATE PRINCIPAL AMOUNT
- -------- ---------------------------- ----------------
BANKNOTES 6.15%
Bank One
5/13/04 1.02%** $ 5,000,000 4,999,083
Wells Fargo Bank
5/14/04 1.04%** 5,000,000 5,000,000
--------------
TOTAL BANK NOTES 9,999,083
(Cost $9,999,083) --------------
CERTIFICATES OF DEPOSIT 32.58%
ABN AMRO Bank
9/7/04 1.09% 3,000,000 2,999,977
Banco Bilbao Vizcaya Argentaria
9/20/04 1.08% 5,000,000 5,000,000
Bank of New York
5/17/04 1.03%** 3,000,000 2,999,871
Barclays Bank, PLC
10/6/04 1.10% 3,000,000 2,999,340
BNP Paribas
5/17/04 1.02%** 5,000,000 4,998,309
Den Danske Corp.
9/7/04 1.40% 5,000,000 4,999,592
Fortis Bank
5/21/04 1.03%** 5,000,000 4,999,025
</Table>
6
<Page>
<Table>
<Caption>
DUE DATE DISCOUNT RATE OR COUPON RATE PRINCIPAL AMOUNT VALUE*
- -------- ---------------------------- ---------------- ------
CERTIFICATES OF DEPOSIT (CONTINUED)
HBOS Treasury Services, PLC
5/27/04 1.06% $ 5,000,000 $ 5,000,000
Lloyds Bank Tsb Bank, PLC
6/7/04 1.18% 4,000,000 4,000,000
Marshall & Ilsley Bank
6/21/04 1.14%** 5,000,000 5,002,526
Royal Bank of Scotland Group, PLC
5/20/04 1.03%** 5,000,000 4,999,028
Svenska Handelsbanken
5/13/04 1.02%** 5,000,000 4,999,352
(Cost $9,999,083) --------------
TOTAL CERTIFICATES OF DEPOSIT 52,997,020
(Cost $52,997,020) --------------
COMMERCIAL PAPER 30.80%
Bills Securitization, Ltd.
8/6/04 1.12% 4,000,000 3,988,147
Charta, LLC
6/4/04 1.04% 5,000,000 4,995,372
Edison Asset Securitization, LLC
9/2/04 1.11% 5,000,000 4,981,179
Galaxy Funding Corp.
5/25/04 1.05% 5,000,000 4,996,785
General Electric Capital Co.
9/8/04 1.11% 5,000,000 4,980,254
Giro Balanced Funding Corp.
5/12/04 1.05% 3,543,000 3,542,068
GOVCO, Inc.
7/12/04 1.06% 4,000,000 3,991,751
Grampian Funding, Ltd., LLC
6/23/04 1.10% 5,000,000 4,992,186
Lake Constance Funding, LLC
6/25/04 1.05% 4,650,000 4,642,804
</Table>
7
<Page>
<Table>
<Caption>
DUE DATE DISCOUNT RATE OR COUPON RATE PRINCIPAL AMOUNT VALUE*
- -------- ---------------------------- ---------------- ------
COMMERCIAL PAPER (CONTINUED)
Nordea North America, Inc.
7/19/04 1.07% $ 5,000,000 $ 4,988,552
Surrey Funding Corp.
7/12/04 1.06% 4,000,000 3,991,751
--------------
TOTAL COMMERCIAL PAPER 50,090,849
(Cost $50,090,849) --------------
TIME DEPOSITS 1.23%
Rabobank
11/8/04 1.40% 2,000,000 1,999,742
--------------
TOTAL TIME DEPOSITS 1,999,742
(Cost $1,999,742) --------------
<Caption>
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS 18.77% COLLATERAL VALUE
- -----------------------------------------------------------------------------------------------------------------
Agreement with ABN AMRO Bank and Bank of New York
(Tri-party), 1.04%, dated 4/30/04 and maturing 5/3/04,
collateralized by Federal Home Loan Bank Bond, 3.50% due
2/13/09, and Federal Home Loan Mortgage Corp. Participation
Certificates, Pools #B90296, B90445, 9.00-10.00% due 9/1/21-
11/1/30 with a repurchase amount of $12,000,347 12,000,000 $ 12,240,001
Agreement with Lehman Brothers, Inc. and J.P. Morgan Chase
& Co. (Tri-party), 1.04%, dated 4/30/04 and maturing 5/3/04,
collateralized by Federal Home Loan Bank Bond, 3.63% due
11/14/08, and Federal National Mortgage Association Note,
3.75% due 9/15/08 with a repurchase amount of $6,533,189 6,533,000 6,667,332
Agreement with UBS Warburg, LLC and J.P. Morgan Chase
& Co. (Tri-party), 1.04%, dated 4/30/04 and maturing 5/3/04,
collateralized by Federal Home Loan Bank Bond, 3.88% due
12/15/04 with a repurchase amount of $12,000,347 12,000,000 12,241,999
---------------------------------
TOTAL REPURCHASE AGREEMENTS 30,533,000 31,149,332
(Cost $30,533,000) ---------------------------------
</Table>
8
<Page>
<Table>
<Caption>
VALUE*
------
TOTAL INVESTMENTS 99.97% $ 162,600,297
(Cost $162,600,297)
Other Assets in Excess of Liabilities 0.03% 54,909
----------------------------
NET ASSETS 100.00% $ 162,655,206
============================
</Table>
* See note 1 to financial statements.
** Floating rate security - rate disclosed as of April 30, 2004. Maturity date
represents the next interest rate reset date.
DN - Discount Note
Income Tax Information:
Total cost for federal income tax purposes: $162,600,297
9
<Page>
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2004
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------------------------------------------------------
ASSETS
Investments, at amortized cost (which
approximates market value) (1) -
see accompanying statement of investments $ 45,762,094 $ 247,330,597 $ 162,600,297
Interest receivable 37,220 101,179 203,953
Prepaid and other assets 3,952 18,739 7,985
------------------------------------------------------------
Total Assets 45,803,266 247,450,515 162,812,235
------------------------------------------------------------
LIABILITIES
Dividends payable 25,206 185,448 112,205
Accrued investment advisory fee 2,673 15,837 10,060
Accrued administration fee 9,963 24,502 15,789
Accrued board of trustees fee 498 1,446 1,040
Accrued SEC registration fee - 1,954 -
Accrued distribution fee - 463 15,672
Other payables 3,019 2,917 2,367
------------------------------------------------------------
Total Liabilities 41,359 232,567 157,133
------------------------------------------------------------
NET ASSETS $ 45,761,907 $ 247,217,948 $ 162,655,102
============================================================
COMPOSITION OF NET ASSETS
Paid-in capital $ 45,742,434 $ 247,220,324 $ 162,642,066
Undistributed net investment income 19,384 1,490 -
Accumulated net realized gain/(loss) 89 (3,866) 13,036
------------------------------------------------------------
NET ASSETS $ 45,761,907 $ 247,217,948(2) $ 162,655,102(2)
============================================================
Shares of beneficial interest outstanding
(no par value, unlimited shares
authorized) 45,776,865 247,072,547(2) 162,642,066(2)
------------------------------------------------------------
Net asset value and redemption value per share $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------
</Table>
(1) Including repurchase agreements for the U.S. Treasury Money Market, U.S.
Government Money Market, and Prime Money Market Funds in the amounts of
$26,801,000, $96,514,000, and $30,533,000, respectively.
<Table>
<Caption>
(2) U.S. GOVERNMENT MONEY MARKET FUND NET ASSETS SHARES OUTSTANDING
----------------- ------------------
Class I $ 245,482,193 245,337,262
Class II $ 1,735,755 1,735,285
<Caption>
PRIME MONEY MARKET FUND NET ASSETS SHARES OUTSTANDING
----------------- --------------------
Class I $ 117,878,648 117,864,458
Class II $ 44,776,454 44,777,608
</Table>
See notes to financial statements.
10
<Page>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2004
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------------------------------------------------------
INVESTMENT INCOME $ 638,112 $ 4,248,728 $ 1,800,602
------------------------------------------------------------
EXPENSES
Investment advisory fee (Note 2) 56,004 362,099 154,904
Administration services (Note 2) 604,933 599,406 361,968
Legal 1,325 12,641 7,600
Reports to Shareholders 3,290 9,124 4,678
Insurance 4,017 22,819 8,765
State Registration 5,019 - -
Class I - 5,310 1,678
Class II - 28 777
Distribution - Class II (Note 2) - 4,710 202,015
Board of Trustees 3,913 24,495 10,076
Miscellaneous 170 7,273 2,944
------------------------------------------------------------
Total Expenses before fee waiver 678,671 1,047,905 755,405
Expenses waived by administrator (470,563) (177,393) (188,885)
Expenses waived by investment advisor (17,261) (114,047) (49,408)
------------------------------------------------------------
Net Expenses 190,847 756,465 517,112
------------------------------------------------------------
NET INVESTMENT INCOME 447,265 3,492,263 1,283,490
------------------------------------------------------------
Net realized gain on investments 11,941 86,553 14,656
------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 459,206 $ 3,578,816 $ 1,298,146
============================================================
</Table>
See notes to financial statements.
11
<Page>
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
U.S. TREASURY
MONEY MARKET
FUND
-------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
APRIL 30, 2004 APRIL 30, 2003
-------------------------------------
OPERATIONS
Net investment income $ 447,265 $ 1,075,616
Net realized gain on investments 11,941 -
-------------------------------------
Net increase in net assets resulting
from operations 459,206 1,075,616
-------------------------------------
DISTRIBUTIONS
Dividends to shareholders from net
investment income (447,265) (1,075,616)
-------------------------------------
BENEFICIAL INTEREST
TRANSACTIONS (1)
Shares sold 116,973,962 311,027,805
Dividends reinvested 461,228 1,072,820
Shares redeemed (152,620,186) (319,560,904)
-------------------------------------
Net decrease in net assets
from beneficial interest transactions (35,184,996) (7,460,279)
-------------------------------------
Net decrease in net assets (35,173,055) (7,460,279)
NET ASSETS:
Beginning of period 80,934,962 88,395,241
-------------------------------------
End of period* $ 45,761,907 $ 80,934,962
=====================================
* Includes (over)/undistributed net
investment income of: $ 19,384 $ (9,178)
</Table>
(1) At net asset value of $1.00 per share.
See notes to financial statements.
12
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
U.S. GOVERNMENT PRIME
MONEY MARKET MONEY MARKET
FUND FUND
----------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, 2004 APRIL 30, 2003 APRIL 30, 2004 APRIL 30, 2003
----------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,492,263 $ 6,157,694 $ 1,283,490 $ 2,408,163
Net realized gain on investments 86,553 - 14,656 39,921
----------------------------------------------------------------------------
Net increase in net assets resulting
from operations 3,578,816 6,157,694 1,298,146 2,448,084
----------------------------------------------------------------------------
DISTRIBUTIONS
Dividends to shareholders from net
investment income
Class I (3,479,530) (6,153,506) (1,009,315) (1,979,015)
Class II (12,733) (4,188) (274,252) (429,148)
Dividends to shareholders from net
realized gains
Class I - - (36,572) -
Class II - - (14,842) -
----------------------------------------------------------------------------
Net decrease in net assets from
distributions (3,492,263) (6,157,694) (1,334,981) (2,408,163)
----------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (1)
Class I
Shares sold 1,045,693,823 1,050,300,725 506,321,941 588,986,769
Dividends reinvested 3,438,053 5,892,046 467,012 928,401
Shares redeemed (1,210,882,693) (1,115,527,969) (486,962,494) (630,139,577)
Class II
Shares sold 1,914,017 3,241,911 110,896,619 114,464,985
Dividends reinvested 13,191 2,620 12,377 7,646
Shares redeemed (2,355,839) (1,080,615) (117,872,870) (65,321,686)
----------------------------------------------------------------------------
Net increase/(decrease) in net assets
from beneficial interest transactions (162,179,448) (57,171,282) 12,862,585 8,926,538
----------------------------------------------------------------------------
Net increase/(decrease) in net assets (162,092,895) (57,171,282) 12,825,750 8,966,459
NET ASSETS:
Beginning of period 409,310,843 466,482,125 149,829,352 140,862,893
----------------------------------------------------------------------------
End of period* $ 247,217,948 $ 409,310,843 $ 162,655,102 $ 149,829,352
============================================================================
* Includes undistributed net
investment income of: $ 1,490 $ 15 $ - $ -
</Table>
(1) At net asset value of $1.00 per share.
See notes to financial statements.
13
<Page>
FINANCIAL HIGHLIGHTS
U.S. TREASURY MONEY MARKET FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE YEAR ENDED APRIL 30,
2004 2003 2002 2001 2000
----------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01 0.01 0.03 0.06 0.05
----------------------------------------------------------------------
DISTRIBUTIONS
From net investment income (0.01) (0.01) (0.03) (0.06) (0.05)
----------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================================================================
TOTAL RETURN+ 0.76% 1.26% 2.53% 5.92% 5.01%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 45,762 $ 80,935 $ 88,395 $ 74,590 $ 78,943
Ratio of expenses to average net assets 0.33% 0.33% 0.33% 0.33% 0.33%
Ratio of net investment income to
average net assets 0.78% 1.25% 2.51% 5.82% 4.85%
Ratio of expenses to average net assets
without fee waivers 1.18% 0.76% 0.69% 0.80% 0.72%
Ratio of net investment income to
average net assets without fee waivers (0.07)% 0.81% 2.15% 5.34% 4.46%
</Table>
+ Total return would have been lower had various fees not been waived during the
period.
See notes to financial statements.
14
<Page>
U.S. GOVERNMENT MONEY MARKET FUND - CLASS I
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE YEAR ENDED APRIL 30,
2004 2003 2002 2001 2000
----------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01 0.01 0.03 0.06 0.05
----------------------------------------------------------------------
DISTRIBUTIONS
From net investment income (0.01) (0.01) (0.03) (0.06) (0.05)
----------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================================================================
TOTAL RETURN+ 0.93% 1.43% 2.87% 6.14% 5.27%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 245,482 $ 407,147 $ 466,482 $ 343,856 $ 223,152
Ratio of expenses to average net assets 0.20% 0.20% 0.20% 0.20% 0.20%
Ratio of net investment income to
average net assets 0.94% 1.42% 2.78% 5.96% 5.12%
Ratio of expenses to average net assets
without fee waivers 0.28% 0.21% 0.21% 0.21% 0.22%
Ratio of net investment income to
average net assets without fee waivers 0.86% 1.41% 2.77% 5.95% 5.10%
</Table>
+ Total return would have been lower had various fees not been waived during the
period.
See notes to financial statements.
15
<Page>
U.S. GOVERNMENT MONEY MARKET FUND - CLASS II
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE
YEAR ENDED FOR THE PERIOD ENDED
APRIL 30, 2004 APRIL 30, 2003(1)
----------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00
----------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01 0.01
----------------------------------------
DISTRIBUTIONS
From net investment income (0.01) (0.01)
----------------------------------------
Net asset value, end of period $ 1.00 $ 1.00
========================================
TOTAL RETURN+ 0.67% 1.03%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 1,736 $ 2,164
Ratio of expenses to average net assets 0.45% 0.45%*
Ratio of net investment income to
average net assets 0.68% 0.92%*
Ratio of expenses to average net assets
without fee waivers 0.53% 0.46%*
Ratio of net investment income to
average net assets without fee waivers 0.60% 0.91%*
</Table>
* Annualized
+ Total return would have been lower had various fees not been waived during the
period.
(1) Class II commenced operations on June 18, 2002.
See notes to financial statements.
16
<Page>
PRIME MONEY MARKET FUND - CLASS I
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE YEAR ENDED APRIL 30,
2004 2003 2002 2001 2000
----------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01 0.01 0.03 0.06 0.05
Net realized gain 0.00* - - - -
----------------------------------------------------------------------
Total from investment operations 0.01 0.01 0.03 0.06 0.05
----------------------------------------------------------------------
DISTRIBUTIONS
From net investment income (0.01) (0.01) (0.03) (0.06) (0.05)
From net realized gain 0.00* - - - -
----------------------------------------------------------------------
Total distributions (0.01) (0.01) (0.03) (0.06) (0.05)
----------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================================================================
TOTAL RETURN+ 0.95% 1.42% 2.88% 6.23% 5.43%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 117,879 $ 98,079 $ 138,272 $ 120,383 $ 140,005
Ratio of expenses to average net assets 0.20% 0.20% 0.20% 0.20% 0.20%
Ratio of net investment income to
average net assets 0.95% 1.46% 2.74% 6.06% 5.37%
Ratio of expenses to average net assets
without fee waivers 0.35% 0.26% 0.28% 0.33% 0.28%
Ratio of net investment income to
average net assets without fee waivers 0.79% 1.41% 2.66% 5.93% 5.28%
</Table>
* Less than $.005 per share
+ Total return would have been lower had various fees not been waived during the
period.
See notes to financial statements.
17
<Page>
PRIME MONEY MARKET FUND - CLASS II
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE YEAR ENDED APRIL 30,
2004 2003 2002 2001 2000
----------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01 0.01 0.03 0.06 0.05
Net realized gain 0.00* - - - -
----------------------------------------------------------------------
Total from investment operations 0.01 0.01 0.03 0.06 0.05
----------------------------------------------------------------------
DISTRIBUTIONS
From net investment income (0.01) (0.01) (0.03) (0.06) (0.05)
From net realized gain 0.00* - - - -
----------------------------------------------------------------------
Total distributions (0.01) (0.01) (0.03) (0.06) (0.05)
----------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================================================================
TOTAL RETURN+ 0.55% 1.02% 2.62% 5.97% 5.17%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 44,776 $ 51,750 $ 2,591 $ 39 $ 32
Ratio of expenses to average net assets 0.60% 0.60% 0.51% 0.45% 0.45%
Ratio of net investment income to
average net assets 0.55% 0.96% 2.17% 5.88% 5.11%
Ratio of expenses to average net assets
without fee waivers 0.75% 0.66% 0.60% 0.58% 0.57%
Ratio of net investment income to
average net assets without fee waivers 0.39% 0.91% 2.08% 5.75% 4.99%
</Table>
* Less than $.005 per share
+ Total return would have been lower had various fees not been waived during the
period.
See notes to financial statements.
18
<Page>
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Financial Investors Trust, a Delaware business trust, is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company. The financial statements included herein relate to the U.S.
Treasury Money Market Fund, U.S. Government Money Market Fund and the Prime
Money Market Fund (the "Funds"). The financial statements of the remaining
portfolios of the Trust are presented separately.
The U.S. Government Money Market Fund and the Prime Money Market Fund offer
two classes of shares (Class I and Class II). Class I and Class II are identical
in all respects with the exception that Class II shares charge a distribution
fee and have a lower investment minimum. Each Class of shares has equal rights
as to earnings, assets and voting privileges except that Class II has exclusive
voting rights with respect to its Distribution Plan. Income, expenses (other
than expenses incurred under the Class II Distribution Plan and other class
specific expenses) and realized gains or losses on investments are allocated to
each Class based upon their relative net assets.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with accounting principles generally accepted in the
United States of America.
INVESTMENT VALUATION: Each of the Money Market Funds values securities
utilizing the amortized cost method of valuation under Rule 2a-7 of the 1940
Act, pursuant to which each Money Market Fund must adhere to certain conditions.
Under this method, investments are valued initially at cost and thereafter
assume a constant amortization to maturity of any discount or premium.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on the date the investments are purchased or sold (trade date).
Realized gains and losses from investment transactions are reported on an
identified cost basis which is the same basis the Funds use for federal income
tax purposes. Interest income is accrued and recorded as earned.
REPURCHASE AGREEMENTS: In some cases, the Funds' custodian takes possession
of the collateral pledged for investments in repurchase agreements, unless it is
a tri-party repurchase agreement. The underlying collateral is valued daily on a
mark-to-market basis to ensure that value, including accrued interest, is at
least equal to the repurchase price. In the event of default on the obligation
to repurchase, the Funds have the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. Under certain circumstances, in
the event of default by or bankruptcy of the other party to the agreement,
realization and/or retention of the collateral may be subject to legal
proceedings.
FEDERAL INCOME TAXES: It is the Funds' policy to continue to comply with
provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of their taxable income to shareholders.
Therefore, no federal income tax provisions are required.
At April 30, 2004, the U.S. Government Money Market Fund had available for
federal income tax purposes unused capital loss carryovers of $2,673 and $1,193,
respectively, expiring between 2006 and 2008. The U.S. Treasury and U.S.
Government Money Market Funds used $11,852 and $86,553, respectively, of capital
loss carryovers in the current period to offset net realized gains for federal
income tax purposes.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net
investment income are declared daily and paid monthly. Distributions of
accumulated net realized gains, if any, are declared at least once a year.
Net investment income (loss) and net realized gain (loss) may differ
for financial statement and tax purposes. The character of distributions made
during the year from net investment income or net realized gains may differ from
its ultimate characterization for federal income tax purposes. Also, due to the
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the fiscal year in which the income or realized gain
was recorded by the Fund.
19
<Page>
The tax character of the distributions paid by the Funds during the years ended
April 30, 2004 and 2003 were as follows:
<Table>
<Caption>
U.S. TREASURY MONEY MARKET U.S. GOVERNMENT MONEY MARKET PRIME MONEY MARKET
FUND FUND FUND
2004 2003 2004 2003 2004 2003
---------------------------------------------------------------------------------------
DISTRIBUTIONS PAID FROM:
Ordinary income $ 447,265 $ 1,075,616 $ 3,492,263 $ 6,157,694 $ 1,334,981 $ 2,408,163
Long-Term Capital Gains - - - - - -
---------------------------------------------------------------------------------------
Total $ 447,265 $ 1,075,616 $ 3,492,263 $ 6,157,694 $ 1,334,981 $ 2,408,163
=======================================================================================
</Table>
As of April 30, 2004, the components of distributable earnings on a tax basis
were as follows:
<Table>
<Caption>
U.S TREASURY U.S. GOVERNMENT PRIME
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
----------------------------------------------------------
Undistributed net investment income $ 19,384 $ 1,490 $ -
Accumulated net realized gain/(loss) 89 (3,866) 13,036
Net unrealized appreciation/depreciation - - -
----------------------------------------------------------
Total $ 19,473 $ (2,376) $ 13,036
==========================================================
</Table>
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended April 30, 2004, amounts have been reclassified on the U.S. Treasury
Money Market Fund to reflect a decrease in paid in capital of $28,562 and an
increase of$28,562 to (over)/undistributed net investment income. In addition,
amounts have been reclassified on the Prime Money Market Fund to reflect a
decrease in overdistributed net investment income of $77 and a decrease in
accumulated net realized gain on investments of $77 and on the U.S. Government
Money Market Fund to reflect an increase in undistributed net investment income
of $1,475, a decrease in accumulated net realized loss on investments of $2,037
and a decrease in paid in capital of $3,512. Net assets of the Funds were
unaffected by the reclassification's and the calculation of net investment
income in the Financial Highlights excludes these adjustments.
These reclassification's are primarily the result of differing book/tax
treatment of organization, cost and expiration of capital loss carryovers and
non-deductible excise taxes paid.
EXPENSES: Most expenses of the Trust can be directly attributed to a Fund.
Expenses which cannot be directly attributed are apportioned among all funds in
the Trust based on average net assets.
OTHER: The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from these estimates.
20
<Page>
2. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS
At a special meeting on June 10, 2003, shareholders of each of the Funds
approved an Investment Advisory Agreement between the Trust and SSgA Funds
Management, Inc. ("SSgA FM" or the "Adviser"). Pursuant to these advisory
agreements, SSgA FM is entitled to an advisory fee at the annual rate of .105%
of each Fund's average net assets. SSgA FM has voluntarily agreed to waive .035%
of their advisory fee until assets for each Fund reach $1 billion.
Prior to June 10, 2003, SSgA FM assumed the interim investment advisory
responsibility for the Financial Investors Trust Money Market Funds. Pursuant to
the interim advisory agreement, SSgA FM was entitled to the following advisory
fee schedule:
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
AVERAGE NET ASSETS MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
- ------------------ ----------------- ----------------- -----------------
First $500 million 0.05% 0.04% 0.04%
Next $500 million 0.075% 0.06% 0.06%
Next $500 million 0.10% 0.08% 0.08%
In excess of $1.5 billion 0.15% 0.08% 0.08%
</Table>
Any information contained in this report prior to January 13, 2003, reflects the
operations of the funds while GE Asset Management, Inc ("GEAM") was the adviser.
GEAM had the following fee schedule:
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
AVERAGE NET ASSETS MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
- ------------------ ----------------- ----------------- -----------------
First $500 million 0.05% 0.04% 0.04%
Next $500 million 0.075% 0.06% 0.06%
Next $500 million 0.10% 0.08% 0.08%
In excess of $1.5 billion 0.15% 0.08% 0.08%
</Table>
ALPS Mutual Funds Services, Inc. ("ALPS") serves as the Funds'
administrator. ALPS is entitled to receive a fee from each Fund for its
administrative services, computed daily and payable monthly, based on the
following fee schedule:
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
AVERAGE NET ASSETS MONEY MARKET FUND* MONEY MARKET FUND* MONEY MARKET FUND*
- ------------------ ------------------ ------------------ ------------------
First $500 million 0.26% 0.16% 0.16%
Next $500 million 0.24% 0.14% 0.14%
In excess of $1 billion 0.22% 0.12% 0.12%
</Table>
*Subject to a minimum monthly fee of $50,000, $30,000 and $30,000 for the U.S.
Treasury Money Market Fund, U.S. Government Money Market Fund and Prime Money
Market Fund, respectively.
21
<Page>
ALPS has contractually agreed to waive a portion of its administration fees
until at least April 30, 2005, to the extent necessary for U.S. Treasury to
maintain a total expense ratio of no more than .33% of its average net assets,
U.S. Government Class I to maintain a total expense ratio of no more than .20%
of its average net assets, U.S. Government Class II to maintain a total expense
ratio of no more than .45% of its average net assets, Prime Class I to maintain
a total expense ratio of no more than .20% of its average net assets, and Prime
Class II to maintain a total expense ratio of no more than .60% of its average
net assets, respectively. After that date, the fee waivers by ALPS are voluntary
and may be terminated at any time.
Administration services include: fund accounting, daily pricing, custody,
registration, shareholder servicing, transfer agency, fund ratings and audit.
The Trustees have adopted a Distribution Plan on behalf of Class II of the
U.S. Government Money Market Fund and the Prime Money Market Fund ("Class II")
pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended. The
Distribution Plan provides for payment of a fee to the Distributor, ALPS
Distributors, Inc. at the annual rate of .25% of the average net assets of Class
II of the U.S. Government Money Market Fund and .40% of the average net assets
of Class II of the Prime Money Market Fund.
Shareholders holding more than 10% of the Funds' outstanding shares as of
April 30, 2004, constituted 10% of the U.S. Treasury Money Market Fund, 27% of
the U.S. Government Money Market Fund and 78% of the Prime Money Market Fund.
22
<Page>
TRUSTEES & OFFICERS (Unaudited)
As of April 30, 2004, the Funds represent three of seven separate series under
the Trust. The Trust's Board of Trustees oversees the overall management of each
series of the Trust and elects the officers of the Trust. The principal
occupations for the past five years of the Trustees and executive officers of
the Trust are listed below.
INTERESTED TRUSTEES & OFFICERS
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND
POSITION(S) HELD NUMBER OF PORTFOLIOS PRINCIPAL OCCUPATION DURING THE PAST 5
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN YEARS* AND OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ----------------------------------------------------------------------------------------------------------------------------------
W. Robert Alexander, (76) Trustee and W. Robert Alexander was Mr. Alexander is the Chief Executive Officer
Chairman elected by the initial of ALPS Mutual Funds Services, Inc.,("ALPS")
1625 Broadway shareholder in December 1993 and ALPS Distributors, Inc., ("ADI") which
Suite 2200 and oversees 7 portfolios in provide administration and distribution
Denver, CO 80202 fund complex. services, respectively, for proprietary mutual
fund complexes. Mr. Alexander was Vice
Chairman of First Interstate Bank of Denver,
responsible for Trust, Private Banking, Retail
Banking, Cash Management Services and
Marketing. Mr. Alexander is currently a member
of the Board of Trustees of the Hunter and
Hughes Trusts, Financial Investors Variable
Insurance Trust, and Reaves Utility Income
Fund. Because of his affiliation with ALPS and
ADI, Mr. Alexander is considered an
"interested" Trustee of the Trust.
Edmund J. Burke, (43) President Edmund J. Burke was elected Mr. Burke is President and Director of ALPS and
as President at the December ADI. Mr. Burke joined ALPS in 1991 as Vice
1625 Broadway 17, 2002 meeting of the President and National Sales Manager. Because
Suite 2200 Board of Trustees. of his positions with ADI and ALPS. Mr. Burke
Denver, CO 80202 is deemed an affiliate of the Trust as defined
under the 1940 Act.
J. Jeffrey Dohse, (62) Vice President J. Jeffrey Dohse was elected Executive Vice President of Tempest Investment
as Vice President at the Counselors, Inc., since July 1983.
1380 Lawrence Street September 17, 2002 meeting
Suite 1050 of the Board of Trustees.
Denver, CO 80202
H. David Lansdowne, (57) Vice President H. David Lansdowne was President and CEO of Tempest Investment
elected as Vice President at Counselors, Inc., since January 1987. Mr.
1380 Lawrence Street the January 20, 1998 meeting Lansdowne joined Tempest as Director of
Suite 1050 of the Board of Trustees. Research in 1983.
Denver, CO 80202
</Table>
23
<Page>
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND
POSITION(S) HELD NUMBER OF PORTFOLIOS PRINCIPAL OCCUPATION DURING THE PAST 5
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN YEARS* AND OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ----------------------------------------------------------------------------------------------------------------------------------
Jeremy O. May, (34) Treasurer Jeremy May was elected at Mr. May is Managing Director, Operations &
the October 7, 1997 meeting Client Services of ALPS and ADI. Mr. May
1625 Broadway of the Board of Trustees. joined ALPS in 1995 as a Controller. Mr. May
Suite 2200 was an auditor with Deloitte & Touche LLP in
Denver, CO 80202 their Denver office. Because of his positions
with ALPS and ADI, Mr. May is deemed an
affiliate of the Trust as defined under the
1940 Act. Mr. May is currently Treasurer of
Financial Investors Variable Insurance Trust,
Reaves Utility Income Fund, and First Funds
Trust.
Traci A. Thelen, (31) Secretary Traci A. Thelen was elected Ms. Thelen is the General Counsel of ALPS and
as Secretary at the June 11, ADI. Ms. Thelen joined ALPS and ADI in October
1625 Broadway 2002 meeting of the Board of 1999 as Associate Counsel. Prior to that,
Suite 2200 Trustees. Ms. Thelen did contract work for various law
Denver, CO 80202 firms in Boulder, Colorado. Because of her
positions with ALPS and ADI, Ms. Thelen is
deemed an affiliate of the Trust as defined
under the 1940 Act. Ms. Thelen is currently
Secretary of First Funds Trust, Financial
Investors Variable Insurance Trust, Reaves
Utility Income Fund, and Westcore Trust.
INDEPENDENT TRUSTEES
Mary K. Anstine, (63) Trustee Mary K. Anstine was elected President/Chief Executive Officer, HealthONE
at a special meeting of Alliance, Denver, Colorado; Former Executive
1625 Broadway shareholders held on March Vice President, First Interstate Bank of
Suite 2200 21, 1997 and oversees 7 Denver. Ms. Anstine is currently a Director of
Denver, CO 80202 portfolios in fund complex. the Trust of Colorado, Trustee of the Denver
Area Council of the Boy Scouts of America, a
Director of the Junior Achievement Board and
the Colorado Uplift Board, and a member of the
Advisory Boards for the Girl Scouts Mile Hi
Council and the Hospice of Metro Denver. Ms.
Anstine is a Trustee of Financial Investors
Variable Insurance Trust, and Reaves Utility
Income Fund. Formerly, Ms. Anstine served as a
Director of ALPS Distributors, Inc., from
October 1995 to December 1996; Director of
HealthONE; a member of the American Bankers
Association Trust Executive Committee; and
Director of the Center for Dispute Resolution.
</Table>
24
<Page>
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND
POSITION(S) HELD NUMBER OF PORTFOLIOS PRINCIPAL OCCUPATION DURING THE PAST 5
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN YEARS* AND OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ----------------------------------------------------------------------------------------------------------------------------------
Edwin B. Crowder, (72) Trustee Edwin B. Crowder was elected Mr. Crowder currently operates a marketing
at a special meeting of concern with operations in the U. S. and Latin
1625 Broadway shareholders held on March America. He has previously engaged in business
Suite 2200 21, 1997 and oversees 7 pursuits in the restaurant, oil and gas
Denver, CO 80202 portfolios in fund complex. drilling, and real estate development
industries. Mr. Crowder is a former Director
of Athletics and Head Football Coach at the
University of Colorado.
Robert E. Lee, (68) Trustee Robert E. Lee was appointed Mr. Lee has been a Director of Storage
as a Trustee at the December Technology Corporation since 1989 and of
1625 Broadway 15, 1998, meeting of the Equitable of Iowa since 1981. Mr. Lee was the
Suite 2200 Board of Trustees and Executive Director of The Denver Foundation
Denver, CO 80202 oversees 7 portfolios in from 1989 to 1996, and is currently the
fund complex. Executive Director of Emeritus. Mr. Lee is
also a Director of Meredith Capital
Corporation and Source Capital Corporation.
Mr. Lee is a Trustee of the Financial
Investors Variable Insurance Trust and Reaves
Utility Income Fund.
John R. Moran, Jr., (73) Trustee John R. Moran was elected at Mr. Moran is President of The Colorado Trust,
a special meeting of a private foundation serving the health and
1625 Broadway shareholders held on March hospital community in the State of Colorado.
Suite 2200 21, 1997 and oversees 7 An attorney, Mr. Moran was formerly a partner
Denver, CO 80202 portfolios in fund complex. with the firm of Kutak Rock & Campbell in
Denver, Colorado and a member of the Colorado
House of Representatives. Currently, Mr. Moran
is a member of the Board of Directors and
Treasurer of Grantmakers in Health; a Director
of the Conference of Southwest Foundations; a
member of the Treasurer's Office Investment
Advisory Committee for the University of
Colorado; a Trustee of the Robert J. Kutak
Foundation, Financial Investors Variable
Insurance Trust; Director of the Colorado
Wildlife Heritage Foundation; and a member of
the Alumni Council of the University of Denver
College of Law.
</Table>
* Except as otherwise indicated, each individual has held the office shown or
other offices in the same company for the last five years.
25
<Page>
PROXY RESULTS (Unaudited)
A special meeting of the shareholders of each Money Market Fund was held on June
10, 2003, for the purpose of voting on a proposal to approve SSgA FM as the new
investment adviser. The results of the vote are described in the following
table:
<Table>
<Caption>
SHARES VOTED SHARES VOTED SHARES ABSTAINED
FOR PROPOSAL AGAINST PROPOSAL FROM VOTING
- ----------------------------------------------------------------------------------------------------------
U.S. Treasury 42,440,925.186 0 501,702.270
U.S. Government 269,042,764.944 0 0
Prime 109,542,918.686 0 5,973.280
</Table>
26
<Page>
INTENTIONALLY LEFT BLANK
<Page>
INVESTMENT ADVISER
SSgA FUNDS MANAGEMENT, INC.
1 INTERNATIONAL PLACE, 25TH FLOOR
BOSTON, MASSACHUSETTS 02110
ADMINISTRATOR, TRANSFER AGENT &
FUND ACCOUNTANT
ALPS MUTUAL FUNDS SERVICES, INC.
1625 BROADWAY
SUITE 2200
DENVER, COLORADO 80202
DISTRIBUTOR
ALPS DISTRIBUTORS, INC.
1625 BROADWAY
SUITE 2200
DENVER, COLORADO 80202
LEGAL COUNSEL
DAVIS GRAHAM & STUBBS LLP
1550 SEVENTEENTH STREET
SUITE 500
DENVER, COLORADO 80202
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
555 SEVENTEENTH STREET
SUITE 3600
DENVER, COLORADO 80202
CUSTODIAN
STATE STREET BANK & TRUST COMPANY
OF CONNECTICUT N.A.
750 MAIN STREET
SUITE 1114
HARTFORD, CONNECTICUT 06103
SUB-CUSTODIAN
STATE STREET BANK & TRUST COMPANY
1776 HERITAGE DRIVE
NORTH QUINCY, MASSACHUSETTS 02171
MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
FOR MORE INFORMATION, PLEASE CALL
800.862.3040 OR VISIT
WWW.AMERICANFREEDOMFUNDS.COM
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
[AMERICAN FREEDOM FUNDS LOGO]
ANNUAL REPORT
APRIL 30, 2004
<Page>
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
FINANCIAL INVESTORS TRUST
WE HAVE AUDITED THE ACCOMPANYING STATEMENT OF ASSETS AND LIABILITIES, INCLUDING
THE STATEMENT OF INVESTMENTS, OF THE AMERICAN FREEDOM U.S. GOVERNMENT MONEY
MARKET FUND OF THE FINANCIAL INVESTORS TRUST (THE "TRUST"), AS OF APRIL 30,
2004, AND THE RELATED STATEMENT OF OPERATIONS AND STATEMENT OF CHANGES IN NET
ASSETS FOR THE PERIOD FROM SEPTEMBER 11, 2003 (COMMENCEMENT OF OPERATIONS) TO
APRIL 30, 2004, AND THE FINANCIAL HIGHLIGHTS FOR THE PERIOD INDICATED. THESE
FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS ARE THE RESPONSIBILITY OF THE
TRUST'S MANAGEMENT. OUR RESPONSIBILITY IS TO EXPRESS AN OPINION ON THESE
FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS BASED ON OUR AUDITS.
WE CONDUCTED OUR AUDITS IN ACCORDANCE WITH STANDARDS OF THE PUBLIC COMPANY
ACCOUNTING OVERSIGHT BOARD. THOSE STANDARDS REQUIRE THAT WE PLAN AND PERFORM THE
AUDIT TO OBTAIN REASONABLE ASSURANCE ABOUT WHETHER THE FINANCIAL STATEMENTS AND
FINANCIAL HIGHLIGHTS ARE FREE OF MATERIAL MISSTATEMENT. AN AUDIT INCLUDES
EXAMINING, ON A TEST BASIS, EVIDENCE SUPPORTING THE AMOUNTS AND DISCLOSURES IN
THE FINANCIAL STATEMENTS. OUR PROCEDURES INCLUDED CONFIRMATION OF SECURITIES
OWNED AS OF APRIL 30, 2004, BY CORRESPONDENCE WITH THE CUSTODIAN. AN AUDIT ALSO
INCLUDES ASSESSING THE ACCOUNTING PRINCIPLES USED AND SIGNIFICANT ESTIMATES MADE
BY MANAGEMENT, AS WELL AS EVALUATING THE OVERALL FINANCIAL STATEMENT
PRESENTATION. WE BELIEVE THAT OUR AUDITS PROVIDE A REASONABLE BASIS FOR OUR
OPINION.
IN OUR OPINION, THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS REFERRED TO
ABOVE PRESENT FAIRLY, IN ALL MATERIAL RESPECTS, THE FINANCIAL POSITION OF THE
AMERICAN FREEDOM U.S. GOVERNMENT MONEY MARKET FUND OF THE FINANCIAL INVESTORS
TRUST AS OF APRIL 30, 2004, THE RESULTS OF ITS OPERATIONS AND THE CHANGES IN ITS
NET ASSETS FOR THE PERIOD FROM SEPTEMBER 11, 2003 (COMMENCEMENT OF OPERATIONS)
TO APRIL 30, 2004, AND THE FINANCIAL HIGHLIGHTS FOR THE PERIOD INDICATED, IN
CONFORMITY WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF
AMERICA.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
DENVER, COLORADO
JUNE 15, 2004
1
<Page>
STATEMENT OF INVESTMENTS
U.S. GOVERNMENT MONEY MARKET FUND
APRIL 30, 2004
<Table>
<Caption>
FACE VALUE VALUE*
- ---------- ------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS 52.41%
U.S. Treasury Note
$ 5,000,000 2.25%, 7/31/04 $ 5,014,258
Federal Home Loan Bank
3,000,000 1.38%, 1/5/05 2,999,130
Federal Home Loan Mortgage Corp
10,000,000 1.01%, 5/10/04** 9,998,472
10,000,000 1.20%, 6/9/04 DN 9,987,605
2,000,000 1.05%, 10/20/04 DN 1,990,079
2,000,000 1.11%, 12/1/04 DN 1,986,919
Federal National Mortgage Association
5,000,000 1.02%, 6/11/04** 4,999,229
2,000,000 1.05%, 7/21/04 DN 1,995,390
3,000,000 1.02%, 8/4/04 DN 2,991,771
2,000,000 1.06%, 8/11/04 DN 1,994,127
2,000,000 1.06%, 8/18/04 DN 1,993,715
4,000,000 1.05%, 9/8/04 DN 3,985,123
2,000,000 1.09%, 9/29/04 DN 1,991,013
1,000,000 1.48%, 11/12/04 DN 992,041
2,000,000 1.27%, 11/18/04 DN 1,985,932
------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Cost $54,904,804) 54,904,804
------------
</Table>
2
<Page>
STATEMENT OF INVESTMENTS
<Table>
<Caption>
VALUE* COLLATERAL VALUE
-----------------------------------
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS 47.64%
Agreement with ABN AMRO Bank and Bank of New York (Tri-party), 1.04%,
dated 4/30/04 and maturing 5/3/04, collateralized by Federal Home
Loan Mortgage Corp. Note, 5.55% due 4/22/19, and Federal National
Mortgage Association Note, 2.50% due 4/19/07 with a repurchase
amount of $24,000,693 $ 24,000,000 $ 24,480,789
Agreement with Lehman Brothers, Inc. and J.P. Morgan Chase
& Co. (Tri-party), 1.04%, dated 4/30/04 and maturing 5/3/04
collateralized by Federal Home Loan Bank Bond, 3.63% due
11/14/08 with a repurchase amount of $1,900,055 1,900,000 1,939,716
Agreement with UBS Warburg, LLC and J.P. Morgan Chase
& Co. (Tri-party), 1.04% dated 4/30/04 and maturing 5/3/04,
collateralized by Federal Home Loan Bank Bonds, 2.38-4.25%
due 2/15/06-11/13/09 with a repurchase amount of $24,000,693 24,000,000 24,482,843
-----------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $49,900,000) 49,900,000 50,903,348
-----------------------------------
TOTAL INVESTMENTS 100.05% $ 104,804,804
(Cost $104,804,804)
Liabilities in Excess of Other Assets -0.05% (49,550)
-------------------------
NET ASSETS 100.00% $ 104,755,254
=========================
</Table>
* See Note 1 to financial statements.
**Floating rate security - rate disclosed as of April 30, 2004. Maturity date
represents the next interest rate reset date.
DN- Discount Note
INCOME TAX INFORMATION:
Total cost for federal income tax purposes - $104,804,804
3
<Page>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2004
<Table>
<Caption>
U.S. GOVERNMENT
MONEY MARKET FUND
-----------------
ASSETS
Investments, at amortized cost (which
approximates market value)(1) -
see accompanying statements $ 104,804,804
Interest receivable 60,550
Prepaid and other assets 2,289
-----------------
Total Assets 104,867,643
-----------------
LIABILITIES
Dividends payable 82,753
Accrued investment advisory fee 6,589
Accrued administration fee 12,236
Accrued board of trustees fee 4,826
Other payables 5,985
-----------------
Total Liabilities 112,389
-----------------
NET ASSETS $ 104,755,254
=================
COMPOSITION OF NET ASSETS
Paid-in capital $ 104,739,644
Undistributed net investment income -
Accumulated net realized gain 15,610
-----------------
NET ASSETS $ 104,755,254(2)
=================
Shares of beneficial interest outstanding
(no par value, unlimited
shares authorized) 104,739,637(2)
-----------------
Net asset value and redemption value per share $ 1.00
-----------------
</Table>
(1) Including repurchase agreements in the amount of $49,900,000.
(2) U.S. Government Money Market Fund
<Table>
<Caption>
NET ASSETS SHARES OUTSTANDING
------------- ------------------
Class I $ 104,752,252 104,736,636
Class II $ 3,002 3,001
</Table>
See notes to financial statements.
4
<Page>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED APRIL 30, 2004
<Table>
<Caption>
U.S. GOVERNMENT
MONEY MARKET FUND
-----------------
INVESTMENT INCOME $ 837,661
-----------------
EXPENSES
Investment advisory fee (Note 2) 81,882
Administration services (Note 2) 225,247
Legal 6,305
Insurance 8,645
State Registration
Class I 1,986
Class II -
Distribution - Class II (Note 2) 0
Board of Trustees 8,613
Miscellaneous 3,480
-----------------
Total Expenses before fee waiver 336,158
Expenses waived by administrator (154,644)
Expenses waived by investment advisor (27,294)
-----------------
Net Expenses 154,220
-----------------
NET INVESTMENT INCOME 683,441
-----------------
Net realized gain on investments 15,610
-----------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 699,051
=================
</Table>
See notes to financial statements.
5
<Page>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 2004
<Table>
<Caption>
U.S. GOVERNMENT
MONEY MARKET FUND
-----------------
OPERATIONS
Net investment income $ 683,441
Net realized gain on investments 15,610
-----------------
Net increase in net assets resulting
from operations 699,051
-----------------
DISTRIBUTIONS
Dividends to shareholders from net
investment income
Class I (683,431)
Class II (3)
-----------------
Net decrease in net assets from
distributions (683,434)
-----------------
BENEFICIAL INTEREST TRANSACTIONS (1)
Class I
Shares sold 268,683,223
Dividends reinvested 522,218
Shares redeemed (164,468,805)
Class II
Shares sold 3,000
Dividends reinvested 1
Shares redeemed -
-----------------
Net increase in net assets derived
from beneficial interest transactions 104,739,637
-----------------
Net increase in net assets 104,755,254
NET ASSETS
Beginning of period -
-----------------
End of period* $ 104,755,254
=================
*Includes Undistributed
net investment income of: $ -
</Table>
(1) At net asset value of $1.00 per share.
See notes to financial statements.
6
<Page>
FINANCIAL HIGHLIGHTS
U.S. GOVERNMENT MONEY MARKET FUND - CLASS I
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE PERIOD ENDED
APRIL 30, 2004**
--------------------
Net asset value, beginning of period $ 1.00
--------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01
--------------------
DISTRIBUTIONS
From net investment income (0.01)
--------------------
Net asset value, end of period $ 1.00
====================
TOTAL RETURN+ 0.55%#
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 104,752
Ratio of expenses to average net assets 0.20%*
Ratio of net investment income to
average net assets 0.88%*
Ratio of expenses to average net assets
without fee waivers 0.43%*
Ratio of net investment income to
average net assets without fee waivers 0.65%*
</Table>
* Annualized.
** Class I commenced operations on September 11, 2003.
+ Total return would have been lower had various fees not been waived during the
period.
# Total returns for periods of less than one year are not annualized.
See notes to financial statements.
7
<Page>
U.S. GOVERNMENT MONEY MARKET FUND - CLASS II
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE PERIOD ENDED
APRIL 30, 2004**
--------------------
Net asset value, beginning of period $ 1.00
--------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.00^
--------------------
DISTRIBUTIONS
From net investment income 0.00^
--------------------
Net asset value, end of period $ 1.00
====================
TOTAL RETURN+ 0.11%#
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 3
Ratio of expenses to average net assets 0.43%*
Ratio of net investment income to
average net assets 0.62%*
Ratio of expenses to average net assets
without fee waivers 0.66%*
Ratio of net investment income to
average net assets without fee waivers 0.39%*
</Table>
* Annualized.
** Class II commenced operations on September 17, 2003.
+ Total return would have been lower had various fees not been waived during the
period.
# Total returns for periods of less than one year are not annualized.
^ Less than $.005 per share.
See notes to financial statements.
8
<Page>
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Financial Investors Trust, a Delaware business trust, is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company. The financial statements included herein relate to the
Trust's American Freedom Family of Funds. The American Freedom Family of Funds
includes the U.S. Government Money Market Fund. The financial statements of the
remaining portfolios of the Trust are presented separately.
The U.S. Government Money Market Fund offers two classes of shares (Class I
and Class II). Class I and Class II are identical in all respects with the
exception that Class II shares charge a distribution fee and have a lower
investment minimum. Each Class of shares has equal rights as to earnings, assets
and voting privileges except that Class II has exclusive voting rights with
respect to its Distribution Plan. Income, expenses (other than expenses incurred
under the Class II Distribution Plan and other class specific expenses) and
realized gains or losses on investments are allocated to each Class based upon
their relative net assets.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with accounting principles generally accepted in the
United States of America.
INVESTMENT VALUATION: The U.S. Government Money Market Fund values
securities utilizing the amortized cost method of valuation under Rule 2a-7 of
the 1940 Act, pursuant to which the fund must adhere to certain conditions.
Under this method, investments are valued initially at cost and thereafter
assume a constant amortization to maturity of any discount or premium.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on the date the investments are purchased or sold (trade date).
Realized gains and losses from investment transactions are reported on an
identified cost basis which is the same basis the Funds use for federal income
tax purposes. Interest income is accrued and recorded as earned.
REPURCHASE AGREEMENTS: In some cases, the Fund's custodian takes possession
of the collateral pledged for investments in repurchase agreements, unless it is
a tri-party repurchase agreement. The underlying collateral is valued daily on a
mark-to-market basis to ensure that value, including accrued interest, is at
least equal to the repurchase price. In the event of default on the obligation
to repurchase, the Funds have the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. Under certain circumstances, in
the event of default by or bankruptcy of the other party to the agreement,
realization and/or retention of the collateral may be subject to legal
proceedings.
FEDERAL INCOME TAXES: Dividends from net investment income are declared
daily and paid monthly. Distributions of accumulated net realized gains, if any,
are declared at least once a year.
It is the Fund's policy to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of their taxable income to shareholders. Therefore, no federal
income tax provisions are required.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS: Net investment income
(loss) and net realized gain (loss) may differ for financial statement and tax
purposes. The character of distributions made during the year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed
may differ from the fiscal year in which the income or realized gain was
recorded by the Fund.
9
<Page>
The tax character of the distributions paid by the U.S. Government Money
Market Fund during the period ended April 30, 2004 was as follows:
<Table>
DISTRIBUTIONS PAID FROM:
Ordinary income $ 683,434
Long-Term Capital Gain -
----------
Total $ 683,434
==========
</Table>
As of April 30, 2004, the components of distributable earnings on a tax basis
for the U.S. Government Money Market Fund was as follows:
<Table>
(Over)/undistributed net investment income $ -
Accumulated net realized gain 15,610
Net unrealized appreciation/depreciation -
----------
Total $ 15,610
==========
</Table>
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended April 30, 2004, amounts have been reclassified to reflect an increase
in paid in capital of $7 and a decrease of $7 to (over)/undistributed net
investment income. Net assets of the U.S. Government Money Market Fund were
unaffected by the reclassifications and the calculation of net investment income
in the Financial Highlights excludes these adjustments.
EXPENSES: Most expenses of the Trust can be directly attributed to a Fund.
Expenses which cannot be directly attributed are apportioned among all funds in
the Trust based on average net assets.
OTHER: The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from these estimates.
2. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS
The Trust has entered into Investment Advisory Agreements with SSgA Funds
Management, Inc. ("SSgA FM"). Pursuant to these advisory agreements, SSgA FM is
entitled to an advisory fee at the annual rate of .105% of average net assets of
the U.S. Government Money Market Fund. SSgA FM has voluntarily agreed to waive
..035% of their advisory fee until assets of the Fund reach $1 billion.
10
<Page>
ALPS Mutual Funds Services, Inc. ("ALPS") serves as the Fund's administrator.
ALPS is entitled to receive a fee from the Fund for its administrative services,
computed daily and payable monthly, based on the following fee schedule:
<Table>
<Caption>
U.S. GOVERNMENT
AVERAGE NET ASSETS MONEY MARKET FUND*
------------------ ------------------
First $500 million 0.16%
Next $500 million 0.14%
In excess of $1 billion 0.12%
</Table>
*Subject to a minimum monthly fee of $30,000 for the U.S. Government Money
Market Fund.
ALPS has contractually agreed to waive a portion of its administration fees
until at least April 30, 2005, to the extent necessary for U.S. Government Class
I to maintain a total expense ratio of no more than .20% of its average net
assets, and U.S. Government Class II to maintain a total expense ratio of no
more than .45% of its average net assets, respectively. After that date, the fee
waivers by ALPS are voluntary and may be terminated at any time.
Administration services include: fund accounting, daily pricing, custody,
registration, shareholder servicing, transfer agency, fund ratings and audit.
The Trustees have adopted a Distribution Plan on behalf of Class II of the
U.S. Government Money Market Fund ("Class II") pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended. The Distribution Plan provides for
payment of a fee to the Distributor, ALPS Distributors, Inc. at the annual rate
of .25% of the average net assets of Class II of the U.S. Government Money
Market Fund.
Shareholders holding more than 10% of the Funds' outstanding shares as of
April 30, 2004, constituted 35% of the U.S. Government Money Market Fund.
11
<Page>
TRUSTEES AND OFFICERS (Unaudited)
As of April 30, 2004, the U.S. Government Money Market Fund represents one
of seven separate series under the Trust. The Trust's Board of Trustees oversees
the overall management of each series of the Trust and elects the officers of
the Trust. The principal occupations for the past five years of the Trustees and
executive officers of the Trust are listed below.
INTERESTED TRUSTEES & OFFICERS
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND
POSITION(S) HELD NUMBER OF PORTFOLIOS PRINCIPAL OCCUPATION DURING THE PAST 5
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN YEARS* AND OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ----------------------------------------------------------------------------------------------------------------------
W. Robert Alexander, (76) Trustee and W. Robert Alexander Mr. Alexander is the Chief Executive Officer
Chairman was elected by the of ALPS Mutual Funds Services, Inc., ("ALPS")
1625 Broadway initial shareholder in and ALPS Distributors, Inc., ("ADI") which
Suite 2200 December 1993 and provide administration and distribution
Denver, CO 80202 oversees 7 portfolios services, respectively, for proprietary mutual
in fund complex. fund complexes. Mr. Alexander was Vice
Chairman of First Interstate Bank of Denver,
responsible for Trust, Private Banking, Retail
Banking, Cash Management Services and
Marketing. Mr. Alexander is currently a member
of the Board of Trustees of the Hunter and
Hughes Trusts, Financial Investors Variable
Insurance Trust, and Reaves Utility Income
Fund. Because of his affiliation with ALPS and
ADI, Mr. Alexander is considered an
"interested" Trustee of the Trust.
Edmund J. Burke, (43) President Edmund J. Burke was Mr. Burke is President and Director of ALPS and
elected as President ADI. Mr. Burke joined ALPS in 1991 as Vice
1625 Broadway at the December 17, President and National Sales Manager. Because
Suite 2200 2002 meeting of the of his positions with ADI and ALPS, Mr. Burke
Denver, CO 80202 Board of Trustees. is deemed an affiliate of the Trust as defined
under the 1940 Act.
J. Jeffrey Dohse, (62) Vice President J. Jeffrey Dohse was Executive Vice President of Tempest Investment
elected as Vice Counselors, Inc., since July 1983.
1380 Lawrence Street President at the
Suite 1050 September 17, 2002
Denver, CO 80202 meeting of the Board
of Trustees.
H. David Lansdowne, (57) Vice President H. David Lansdowne was President and CEO of Tempest Investment
elected as Vice Counselors, Inc., since January 1987. Mr.
1380 Lawrence Street President at the Lansdowne joined Tempest as Director of
Suite 1050 January 20, 1998 Research in 1983.
Denver, CO 80202 meeting of the Board
of Trustees.
</Table>
12
<Page>
INTERESTED TRUSTEES
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND PRINCIPAL OCCUPATION DURING THE PAST 5
POSITION(S) HELD NUMBER OF PORTFOLIOS YEARS* AND OTHER DIRECTORSHIPS HELD BY
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN TRUSTEE
- ----------------------------------------------------------------------------------------------------------------------
Jeremy O. May, (34) Treasurer Jeremy May was elected Mr. May is Managing Director, Operations &
at the October 7, 1997 Client Services of ALPS and ADI. Mr. May
1625 Broadway meeting of the Board joined ALPS in 1995 as a Controller. Mr. May
Suite 2200 of Trustees. was an auditor with Deloitte & Touche LLP in
Denver, CO 80202 their Denver office. Because of his positions
with ALPS and ADI, Mr. May is deemed an
affiliate of the Trust as defined under the
1940 Act. Mr. May is currently Treasurer of
Financial Investors Variable Insurance Trust,
Reaves Utility Income Fund, and First Funds
Trust.
Traci A. Thelen, (31) Secretary Traci A. Thelen was Ms. Thelen is the General Counsel of ALPS and
elected as Secretary ADI. Ms. Thelen joined ALPS and ADI in October
1625 Broadway at the June 11, 2002 1999 as Associate Counsel. Prior to that,
Suite 2200 meeting of the Board Ms.Thelen did contract work for various law
Denver, CO 80202 of Trustees. firms in Boulder, Colorado. Because of her
positions with ALPS and ADI, Ms. Thelen is
deemed an affiliate of the Trust as defined
under the 1940 Act. Ms. Thelen is currently
Secretary of First Funds Trust, Financial
Investors Variable Insurance Trust, Reaves
Utility Income Fund, and Westcore Trust.
INDEPENDENT TRUSTEES
Mary K. Anstine, (63) Trustee Mary K. Anstine was President/Chief Executive Officer, Health ONE
elected at a special Alliance, Denver, Colorado; Former Executive
1625 Broadway meeting of Vice President, First Interstate Bank of
Suite 2200 shareholders held on Denver. Ms. Anstine is currently a Director of
Denver, CO 80202 March 21, 1997 and the Trust of Colorado, Trustee of the Denver
oversees 7 Area Council of the Boy Scouts of America, a
portfolios in fund Director of the Junior Achievement Board and
complex. the Colorado Uplift Board, and a member of the
Advisory Boards for the Girl Scouts Mile Hi
Council and the Hospice of Metro Denver. Ms.
Anstine is a Trustee of Financial Investors
Variable Insurance Trust, and Reaves Utility
Income Fund. Formerly, Ms. Anstine served as a
Director of ALPS Distributors, Inc., from
October 1995 to December 1996; Director of
HealthONE; a member of the American Bankers
Association Trust Executive Committee; and
Director of the Center for Dispute
Resolution.
</Table>
13
<Page>
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND PRINCIPAL OCCUPATION DURING THE PAST 5
POSITION(S) HELD NUMBER OF PORTFOLIOS YEARS* AND OTHER DIRECTORSHIPS HELD BY
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN TRUSTEE
- ----------------------------------------------------------------------------------------------------------------------
Edwin B. Crowder, (72) Trustee Edwin B. Crowder was Mr. Crowder currently operates a marketing
elected at a special concern with operations in the U. S. and Latin
1625 Broadway meeting of America. He has previously engaged in business
Suite 2200 shareholders held on pursuits in the restaurant, oil and gas
Denver, CO 80202 March 21, 1997 drilling, and real estate development
and oversees 7 industries. Mr. Crowder is a former Director
portfolios in fund of Athletics and Head Football Coach at the
complex. University of Colorado.
Robert E. Lee, (68) Trustee Robert E. Lee was Mr. Lee has been a Director of Storage
appointed as a Trustee Technology Corporation since 1989 and of
1625 Broadway at the December 15, Equitable of Iowa since 1981. Mr. Lee was the
Suite 2200 1998, meeting of the Executive Director of The Denver Foundation
Denver, CO 80202 Board of Trustees and from 1989 to 1996, and is currently the
oversees 7 portfolios Executive Director of Emeritus. Mr. Lee is
in fund complex. also a Director of Meredith Capital
Corporation and Source Capital Corporation.
Mr. Lee is a Trustee of the Financial
Investors Variable Insurance Trust and Reaves
Utility Income Fund.
John R. Moran, Jr., (73) Trustee John R. Moran was Mr. Moran is President of The Colorado Trust,
elected at a special a private foundation serving the health and
1625 Broadway meeting of hospital community in the State of Colorado.
Suite 2200 shareholders held on An attorney, Mr. Moran was formerly a partner
Denver, CO 80202 March 21, 1997 and with the firm of Kutak Rock & Campbell in
oversees 7 Denver, Colorado and a member of the Colorado
port folios in fund House of Representatives. Currently, Mr. Moran
complex. is a member of the Board of Directors and
Treasurer of Grantmakers in Health; a Director
of the Conference of Southwest Foundations; a
member of the Treasurer's Office Investment
Advisory Committee for the University of
Colorado; a Trustee of the Robert J. Kutak
Foundation, Financial Investors Variable
Insurance Trust; Director of the Colorado
Wildlife Heritage Foundation; and a member of
the Alumni Council of the University of Denver
College of Law.
</Table>
- ----------
* Except as otherwise indicated, each individual has held the office shown or
other offices in the same company for the last five years.
14
<Page>
INTENTIONALLY LEFT BLANK
<Page>
THESE FUNDS ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT, THE FDIC,
THE FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENTAL AGENCY OR INSURER.
INVESTMENT ADVISER
TEMPEST INVESTMENT COUNSELORS, INC.
1380 LAWRENCE STREET
SUITE 1050
DENVER, COLORADO 80204
ADMINISTRATOR, TRANSFER AGENT & FUND ACCOUNTANT
ALPS MUTUAL FUNDS SERVICES, INC.
1625 BROADWAY
SUITE 2200
DENVER, COLORADO 80202
DISTRIBUTOR
ALPS DISTRIBUTORS, INC.
1625 BROADWAY
SUITE 2200
DENVER, COLORADO 80202
LEGAL COUNSEL
DAVIS GRAHAM & STUBBS LLP
1550 SEVENTEENTH STREET
SUITE 500
DENVER, COLORADO 80202
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
555 SEVENTEENTH STREET
SUITE 3600
DENVER, COLORADO 80202
CUSTODIAN
FIFTH THIRD BANK, N.A.
FIFTH THIRD CENTER
38 FOUNTAIN SQUARE PLAZA
CINCINNATI, OHIO 45263
MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
FOR MORE INFORMATION, PLEASE CALL 1-800-644-8595 OR VISIT www.aristata.com
[ALPS DISTRIBUTORS, INC. LOGO]
[ARISTATA(TM) MUTUAL FUNDS LOGO]
A CLASS ABOVE
[GRAPHIC]
ANNUAL REPORT
APRIL 30, 2004
<Page>
LETTER FROM THE INVESTMENT ADVISER
Dear Fellow Shareholders,
We are pleased to offer you our annual report for the period ended April
30, 2004.
The past twelve months have been dominated by world events as the war in
Iraq has continued despite the ending of "major hostilities". The situation
remains volatile. As a result, the price of oil has reached historically
high levels as has the price of gasoline (have you filled up lately?).
The US economy is growing and profits are rising. Gross Domestic Product
(GDP) growth is positive, the employment numbers are improving and the
unemployment numbers declining. The Federal Reserve Board has kept interest
rates low, further bolstering growth. There is a large amount of stimulus
being applied to the economy (the tax cuts enacted last year, the low level
of interest rates, increased federal spending) yet consumers remain
cautious. In short, the economic backdrop looks good but not great.
In these volatile and uncertain times, we at TEMPEST INVESTMENT COUNSELORS,
INC. continue to emphasize and remind ourselves of the disciplined
investment process we have used for over 25 years. We have a long tradition
of value investing. We search for good companies with above average
prospects that we believe are selling at a discount to their long-term
inherent value.
We place significant focus on industry analysis. Groups of stocks in the
same industry tend to move together. Identification of both the better
performing industries and avoidance of the weaker performing industries can
successfully impact long-term investment results. We strive to make
independent decisions. We believe following the herd is usually a recipe
for poor performance.
1
<Page>
Our portfolios are diversified. This is one of the keys to risk management.
The diversification extends across industry groups and individual stocks.
We realize a few negative surprises are inevitable, but over the long-term
we manage portfolios proactively to minimize the impact.
Finally, at the individual stock level we look for strong, viable
businesses where our analysis shows a higher stock price is warranted.
Often we look for an industry or company dynamic that will help "unlock"
the unrecognized value.
Our two bond funds hold high quality issues that are rated investment
grade. We avoid the more volatile junk bond market. We also keep a moderate
duration, choosing to avoid the increased risk of longer-term bonds.
At TEMPEST INVESTMENT COUNSELORS, INC. we are cognizant and deeply
appreciative of the trust our shareholders place in us as managers of the
Aristata family of mutual funds. We remain dedicated to our philosophy of
investing for above average returns without assuming above average risk.
Finally, we say "thank you" to you - we appreciate your trust and
confidence.
Sincerely,
/s/ H. David Lansdowne
H. David Lansdowne, CFA
President
TEMPEST INVESTMENT COUNSELORS, INC.
2
<Page>
FUND REVIEW
ARISTATA EQUITY FUND
PERFORMANCE
The Aristata Equity Fund's total return for the year ended April 30, 2004 was
26.21%. The Standard & Poor's 500 Index rose 22.88% during the same period. The
majority of the advance occurred in calendar 2003 as the first four months of
2004 experienced modest slippage.
Of note, the energy sector has been particularly strong reflecting historically
high oil prices and increasing world demand. The value-oriented Aristata Equity
Fund is over-weighted in the energy sector compared to the Standard & Poor's 500
Index and we continue to like the sector.
Net assets for the Aristata Equity Fund were $31.2 million as of April 30, 2004.
EQUITY MARKET OVERVIEW
Since our last report to you six months ago, returns in the stock market have
been acceptable, but not overly exciting. The Standard & Poor's 500 Index was up
6.27% over the last six months. Since the beginning of 2004 (four months ago)
the Standard & Poor's 500 is mostly unchanged. In addition, the technology heavy
Nasdaq index is down 4.15% since the beginning of the year. The Aristata Equity
Fund is up 9.60% for the most recent six month period.
There is still a high level of uncertainty in the equity markets. The turmoil in
Iraq continues to persist without any sign of an easy or quick resolution. On
the domestic front, the economy is healthy and growing although there is
widespread speculation that interest rates may head up before year end. In this
environment, we remain committed to attempting to build a diversified portfolio
of high quality stocks with attractive valuations and above-average dividend
yield.
OIL & GAS STOCKS HAVE BEEN STRONG OVER THE PAST YEAR
It's hard not to notice that energy prices are much higher than they used to be!
In the last few weeks, most of us have been shocked as gas prices breached $2 a
gallon at the pump.
At TEMPEST INVESTMENT COUNSELORS, INC. we take an industry approach to our stock
selection and right now one area we like is the energy sector. Commodity prices
are set by supply and demand, and both of these are acting to push up energy
prices.
3
<Page>
Supply is limited and somewhat uncertain. OPEC (Organization of Petroleum
Exporting Countries) uses a quota system that, at times, can limit its output.
There is also continued unrest in places such as Nigeria and Venezuela that
restricts their exports and adds an element of uncertainty to the picture. In
addition, natural gas has become an important fuel for heating and electrical
generation. Annual domestic production of natural gas is (at best) stable
despite an increasing number of wells being drilled
On the demand side, our economy is expanding and raising domestic demand for
energy. At the same time, China's economy is growing (very strongly) and its
energy needs are rising. Eastern Europe, Russia and India represent other areas
that can be expected to increase their energy consumption in the years ahead,
adding fuel (pun intended) to world demand for energy.
[CHART]
ARISTATA EQUITY FUND
SECTOR PROFILE as of April 30, 2004
<Table>
Telecommunications 4.2%
Boilding/Real Estate 4.8%
Consumer Durables 3.6%
Consumer Staples 10.1%
Electic & Gas Utilities 7.6%
Energy 13.0%
Financial 9.8%
Healthcare 15.9%
Technology 9.5%
Industrial Products & Services 12.7%
Consumer Services 1.4%
Short-Term Investments 1.6%
Basic Materials 5.8%
</Table>
A major oil company, BP PLC, (the third largest holding in the Aristata Equity
Fund) recently announced a major effort to return cash to its stockholders
through higher dividends and increased share buybacks. BP management stated that
these actions would be funded from the higher profits that BP makes when oil is
above $20 a barrel. BP's Chief Executive Lord Browne noted that there is
"overwhelmingly more chance of the oil price being above $20 a barrel for the
next few years, than not."
The reality of a limited supply and increasing demand has worked to push up oil
prices. For all these reasons the energy sector may be a rewarding area for
investors in coming years.
4
<Page>
PORTFOLIO UPDATE
The fifteen largest holdings represent approximately 35.2% of the total
portfolio. These fifteen companies have an average price-to-earnings (PE) ratio
of 22.7x based on earnings for the last twelve months and an average dividend
yield of 2.0%. In contrast, the Standard & Poor's 500 has a PE ratio of about
31.5x trailing reported earnings and a current dividend yield of 1.7%.
FIFTEEN LARGEST HOLDINGS(2) - AS OF APRIL 30, 2004
<Table>
<Caption>
SECTOR % OF DIVIDEND PRICE
COMPANY REPRESENTATION INVESTMENTS YIELD EARNINGS RATIO
- -----------------------------------------------------------------------------------------------------------------
Abbott Laboratories Healthcare 3.1% 2.1% 25.0x
Valero Energy Energy 2.8% 0.9% 11.8x
BP PLC Energy 2.7% 3.0% 18.2x
Westport Resources Corp. Energy 2.4% N/A 26.1x
Emerson Electric Co. Industrial Products & Svcs. 2.4% 2.6% 22.7x
Snap On, Inc. Industrial Products & Svcs. 2.4% 3.0% 28.2x
Int'l Business Machines Corp. Technology 2.3% 0.8% 19.6x
Kennametal, Inc. Industrial Products & Svcs. 2.2% 1.6% 40.7x
Verizon Communications, Inc. Telecommunications 2.2% 4.1% 37.7x
Allstate Corp. Financial 2.2% 1.8% 10.2x
Avon Products, Inc. Consumer Staples 2.1% 1.3% 28.2x
Merck & Co Inc. Healthcare 2.1% 3.1% 16.1x
Albertson's, Inc. Consumer Staples 2.1% 3.3% 15.5x
Vulcan Materials Co. Building/Real Estate 2.1% 2.2% 20.1x
Flextronics International Technology 2.1% N/A 20.1x
FIFTEEN LARGEST HOLDINGS 35.2% 2.0% AVG. 22.7x AVG.
STANDARD & POOR'S 500 1.7% 31.5X
</Table>
5
<Page>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE ARISTATA EQUITY
FUND, THE S&P 500, VALUE LINE COMPOSITE, AND THE LIPPER MULTI-CAP VALUE FUND
INDEX.
[CHART]
<Table>
<Caption>
ARISTATA EQUITY FUND S&P 500* VALUE LINE COMPOSITE LIPPER MULTI-CAP VALUE FUND INDEX
3/2/1998 10000 10000 10000 10000
10410 10513 10437 10449
10454 10620 10477 10508
10229 10431 10051 10275
10189 10856 10003 10264
9997 10743 9367 9867
8775 9188 7728 8358
9279 9775 8087 8704
9933 10575 8632 9420
10244 11214 8986 9827
10607 11861 9279 9990
10359 12360 9166 10025
10177 11972 8652 9792
10445 12451 8731 10062
4/30/1999 11435 12937 9518 10957
11598 12624 9634 10900
12001 13325 9981 11251
11718 12911 9721 10868
11490 12844 9303 10494
10886 12492 8984 10041
10897 13283 8932 10352
11083 13553 9044 10347
11326 14351 9311 10583
11001 13631 8864 10127
10677 13373 8712 9594
11639 14681 9296 10608
4/30/2000 11689 14240 9113 10588
11939 13943 8889 10735
11599 14290 8872 10502
11549 14069 8916 10591
12264 14937 9492 11263
12122 14148 9160 11107
12298 14088 8940 11371
11908 12977 8237 10951
12456 13041 8608 11603
12786 13504 9219 12041
12511 12272 8657 11712
12107 11495 8094 11301
4/30/2001 12894 12388 8636 12034
13239 12471 8861 12300
12539 12167 8781 12092
12526 12048 8544 12076
12249 11293 8108 11628
11135 10381 6851 10436
11371 10579 7180 10651
12107 11391 7812 11422
12337 11491 8164 11753
12159 11323 8017 11600
12144 11105 7792 11448
12594 11522 8377 12033
4/30/2002 12251 10824 8167 11679
12087 10757 7865 11668
11194 9991 7212 10775
9999 9212 6195 9881
10216 9273 6158 10038
8989 8265 5469 8950
9519 8993 5731 9429
10253 9510 6304 10131
9995 8952 5932 9684
9588 8717 5748 9484
9400 8586 5536 9241
9527 8670 5530 9276
4/30/2003 10138 9384 6078 10082
10766 9878 6697 10924
10952 10004 6798 11004
10983 10181 7090 11156
11438 10379 7402 11505
11157 10269 7276 11373
11676 10850 7808 11999
11957 10945 8034 12255
12592 11519 8315 12858
12797 11731 8565 13130
13080 11894 8702 13380
12874 11714 8675 13263
4/30/2004 12795 11530 8328 13020
</Table>
*FUND BENCHMARK INDEX
PERFORMANCE
AS OF APRIL 30, 2004
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURN (1) 1 YEAR 3 YEAR 5 YEAR SINCE INCEPTION (3/2/98)
Aristata Equity Fund 26.21% (0.26)% 2.27% 4.08%
S&P 500 Index 22.88% (2.36)% (2.28)% 2.34%
Value Line Composite Index 37.04% (1.20)% (2.63)% (2.92)%
Lipper Multi-Cap Value Fund Index 29.14% 2.66% 3.51% 4.37%
</Table>
THE TOTAL RETURN FIGURES REPRESENT PAST PERFORMANCE AND ARE NOT INDICATIVE OF
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN PERFORMANCE DATA
QUOTED. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. TOTAL RETURN FIGURES ARE NET OF ALL FUND EXPENSES AND REFLECT ALL
FEE WAIVERS. WITHOUT THESE FEE WAIVERS, TOTAL RETURN WOULD HAVE BEEN LOWER. TO
OBTAIN MOST RECENT MONTH-END PERFORMANCE CALL TOLL-FREE 1-800-644-8595.
THE GRAPH AND PERFORMANCE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES.
6
<Page>
ARISTATA QUALITY BOND FUND AND ARISTATA COLORADO
QUALITY TAX-EXEMPT FUND
PERFORMANCE
The Aristata Quality Bond Fund's total return for the year ending April 30, 2004
was -0.21%. The Lehman Brothers Government/Credit Bond Index and the Lehman
Brothers Intermediate Government/Credit Bond Index registered returns of 1.81%
and 2.03% for the same period, respectively. As of April 30, net assets of the
Aristata Quality Bond Fund were $11.5 million.
The Aristata Colorado Quality Tax-Exempt Fund had net assets of $11.2 million
for the same ending period, while its 12 month total return was 0.68%.
Comparable returns for the Lipper Municipal Intermediate Bond Fund Index and the
Lehman Brothers Municipal Index were 1.71% and 2.68%, respectively.
FIXED INCOME MARKET REVIEW
While the U.S. economic recovery has advanced at a solid pace, the short-term
Federal Funds interest rate has remained near a 40-year low of 1%. It is not
surprising, with short rates at multi-decade lows, that the debate is
intensifying on the future direction of interest rates and volatility has become
widespread in the bond markets.
On one hand, renewed fears of terrorism and unrest in Iraq have led to a
flight-to-quality and greater demand for U.S. Treasury bonds. On the other hand,
U.S. Treasury bonds have declined considerably as greater than expected payroll
jobs were reportedly added in March and April. Yields on Colorado municipal
securities remain relatively attractive as they have not declined as much as
taxable U.S. treasuries.
Previously, weak employment growth had been a major issue in this economic
expansion, yet signs are now surfacing of employment gaining momentum. The most
recent Federal Reserve's statement has noted that while inflation remains low,
the current accommodative monetary policy can be removed at a measured pace
moving forward, while still providing support for continued economic activity.
7
<Page>
PORTFOLIO UPDATE
ARISTATA QUALITY BOND FUND
For the annual period under review, long-term 10 year Treasury yields have
fluctuated between yields of 3.11% and 4.60%. Despite volatility in the bond
markets, several areas have offered opportunities. Corporate bonds have offered
compelling value as corporations improve their balance sheets and regain their
profitability.
Our fixed income strategy continues to emphasize the 5-year to 15-year maturity
range. This strategy allows the Fund to capture a good portion of income from
the yield curve, (difference between short and long maturities), while still
limiting the risk of extending maturities.
The Aristata Quality Bond Fund holds 59% in investment-grade corporate bonds and
35% in U.S. Government and agency obligations. The Fund's average maturity on
April 30 was 8.1 years.
[CHART]
ARISTATA QUALITY BOND FUND
SECTOR PROFILE as of April 30, 2004*
<Table>
U.S. Government & Agency Obligations 34.8%
Communications 3.3%
Financial 19.2%
Industrial 36.0%
Short-Term Investments 5.7%
</Table>
*Other Assets in Excess of Liabilities 1.0%
[CHART]
ARISTATA QUALITY BOND FUND
QUALITY PROFILE (3) as of April 30, 2004
<Table>
Aaa 38.5%
Aa 13.5%
A 44.2%
Baa 3.8%
</Table>
8
<Page>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE ARISTATA QUALITY BOND
FUND, THE LEHMAN BROTHERS GOVERNMENT/CREDIT BOND INDEX, THE LEHMAN BROTHERS
INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX AND THE LIPPER CORPORATE DEBT FUNDS A
RATED INDEX.
[CHART]
<Table>
<Caption>
ARISTATA QUALITY BOND LEHMAN BROTHERS LEHMAN BROTHERS INTERMEDIATE
FUND GOV'T/CREDIT GOV'T/CREDIT BOND INDEX LIPPER CORP. "A" RATED
BOND INDEX*
3/2/1998 10000 10000 10000 10000
10030 10031 10032 10037.4
10069 10081 10082 10083.5
10158 10189 10156 10192.7
10218 10293 10221 10283.2
10251 10301 10256 10285
10400 10502 10418 10376.7
10636 10802 10679 10608.5
10585 10726 10669 10474.5
10602 10790 10667 10588.3
10641 10816 10710 10622.7
10687 10893 10769 10712.7
10537 10633 10610 10475.1
10599 10687 10690 10543.8
4/30/1999 10622 10713 10723 10578.4
10542 10603 10641 10458.2
10519 10570 10648 10407.2
10508 10541 10639 10360.6
10495 10532 10647 10332.1
10603 10627 10746 10430.7
10613 10655 10774 10446.6
10611 10648 10787 10453.8
10569 10583 10751 10406.2
10507 10580 10712 10383.7
10597 10712 10799 10493.6
10702 10867 10912 10636
4/30/2000 10652 10813 10887 10549.2
10663 10804 10904 10508.5
10862 11024 11096 10742.7
10916 11141 11180 10833.8
11044 11298 11312 10977.8
11139 11341 11415 11038.6
11149 11412 11468 11085
11303 11607 11624 11248.8
11483 11836 11838 11479.1
11647 12035 12032 11692.7
11779 12159 12146 11798.3
11863 12215 12239 11840.1
4/30/2001 11859 12123 12208 11773.1
11916 12194 12276 11850.6
11951 12252 12321 11898.5
12142 12557 12578 12168.6
12241 12718 12703 12305.9
12410 12835 12889 12353.8
12556 13161 13103 12620.1
12481 12945 12972 12467
12425 12843 12901 12373.3
12481 12936 12968 12459.9
12538 13046 13070 12552.6
12366 12782 12871 12352
4/30/2002 12552 13030 13084 12571.3
12664 13151 13216 12667
12808 13263 13330 12721.5
12973 13422 13487 12797.6
13113 13722 13688 13032.2
13299 14017 13933 13234.1
13287 13883 13879 13101.2
13210 13890 13865 13147.7
13466 14258 14167 13433.6
13451 14258 14165 13462.3
13625 14512 14365 13658.5
13587 14493 14380 13648.5
4/30/2003 13673 14648 14489 13801.1
13921 15064 14780 14089
13883 15004 14770 14057
13378 14375 14368 13575
13427 14470 14402 13665
13794 14928 14767 14039
13635 14739 14628 13922
13638 14779 14649 13970
13743 14925 14776 14108
13832 15061 14874 14226
13976 15245 15025 14362
14093 15385 15142 14472
4/30/2004 13643 14912 14784 14117
</Table>
*FUND BENCHMARK INDEX
PERFORMANCE
AS OF APRIL 30, 2004
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURN (1) 1 YEAR 3 YEAR 5 YEAR SINCE INCEPTION (3/2/98)
Aristata Quality Bond Fund (0.21)% 4.78% 5.13% 5.17%
Lehman Bros. Gov't/Credit Bond Index 1.81% 7.15% 6.84% 6.69%
Lehman Bros. Intermediate Gov't/Credit Bond Index 2.03% 6.59% 6.63% 6.54%
Lipper Corporate Debt Funds A Rated Index 2.29% 6.24% 5.94% 5.75%
</Table>
THE TOTAL RETURN FIGURES REPRESENT PAST PERFORMANCE AND ARE NOT INDICATIVE OF
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN PERFORMANCE DATA
QUOTED. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. TOTAL RETURN FIGURES ARE NET OF ALL FUND EXPENSES AND REFLECT ALL
FEE WAIVERS. WITHOUT THESE FEE WAIVERS, TOTAL RETURN WOULD HAVE BEEN LOWER. TO
OBTAIN MOST RECENT MONTH-END PERFORMANCE CALL TOLL-FREE 1-800-644-8595.
THE GRAPH AND PERFORMANCE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES.
9
<Page>
PORTFOLIO UPDATE
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
The Aristata Colorado Quality Tax-Exempt portfolio continues to emphasize high
quality municipal issues with 81.1% of the holdings AAA rated. The Fund
continues to evaluate new issues as they come to market. Several Colorado
municipals have been issued, some of which have included financing for the
state's highway and road improvements. The Fund maintains a broad mix of
diversified sector holdings.
The Fund's average maturity on April 30 was 9.4 years. Our fixed income strategy
remains focused on providing tax-exempt income to our shareholders while
maintaining a balanced portfolio of investment-grade securities.
[CHART]
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
SECTOR PROFILE as of April 30, 2004*
<Table>
Prerefunded Bonds 7.5%
General Obligation Bonds 26.7%
Revenue Bonds 61.0%
</Table>
*Other Assets in Excess of Liabilities 4.8%
[CHART]
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
QUALITY PROFILE (3) as of April 30, 2004
<Table>
Aaa 81.1%
Aa 15.1%
A 3.8%
</Table>
10
<Page>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE ARISTATA COLORADO
QUALITY TAX-EXEMPT FUND, THE LIPPER MUNICIPAL INTERMEDIATE BOND FUND INDEX, THE
LEHMAN BROTHERS MUNICIPAL BOND INDEX, AND THE LIPPER COLORADO MUNICIPAL FUND
AVERAGE.
[CHART]
<Table>
<Caption>
ARISTATA COLORADO QUALITY LEHMAN BROTHERS LIPPER MUNICIPAL LIPPER COLORADO MUNICIPAL
TAX-EXEMPT FUND MUNICIPAL BOND INTERMEDIATE BOND FUND INDEX* FUND AVERAGE
INDEX
3/2/1998 10000 10000 10000 10000
10061 10009 10007 10004
10022 9976 9960 9942
10154 10121 10094 10098
10176 10161 10128 10132
10200 10186 10151 10153
10330 10344 10298 10303
10423 10473 10409 10426
10446 10473 10413 10401
10455 10510 10435 10441
10494 10536 10469 10458
10605 10662 10586 10565
10563 10615 10530 10503
10551 10630 10527 10502
4/30/1999 10564 10656 10556 10527
10517 10594 10493 10456
10410 10442 10350 10281
10464 10480 10399 10301
10440 10396 10352 10181
10460 10400 10357 10148
10415 10288 10284 10008
10478 10397 10372 10087
10446 10319 10325 9990
10418 10274 10279 9906
10506 10394 10358 10039
10620 10621 10507 10251
4/30/2000 10582 10559 10462 10190
10546 10504 10419 10118
10752 10782 10634 10374
10839 10932 10755 10512
10940 11100 10888 10665
10916 11042 10856 10607
10993 11163 10947 10717
11049 11248 10999 10788
11224 11525 11220 11071
11349 11640 11350 11129
11381 11677 11386 11181
11438 11782 11474 11266
4/30/2001 11374 11655 11370 11122
11479 11781 11487 11247
11549 11859 11558 11343
11641 12035 11698 11525
11786 12234 11875 11737
11794 12192 11858 11672
11887 12337 11972 11789
11810 12233 11848 11690
11728 12117 11758 11592
11893 12327 11929 11751
12010 12476 12063 11882
11820 12231 11844 11662
4/30/2002 12013 12470 12074 11863
12097 12546 12139 11931
12214 12679 12263 12049
12334 12842 12405 12202
12432 12996 12519 12324
12625 13281 12737 12584
12488 13061 12544 12341
12439 13006 12493 12287
12670 13280 12740 12552
12644 13247 12694 12492
12810 13433 12870 12668
12804 13441 12866 12668
4/30/2003 12877 13529 12948 12778
13144 13846 13211 13047
13062 13786 13150 12960
12645 13304 12752 12501
12708 13404 12847 12607
13044 13798 13176 12953
12951 13729 13112 12896
13024 13872 13218 13029
13101 13987 13296 13131
13151 14066 13346 13191
13308 14279 13533 13405
13236 14229 13450 13325
4/30/2004 12964 13892 13169 13016
</Table>
*FUND BENCHMARK INDEX
PERFORMANCE
AS OF APRIL 30, 2004
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURN (1) 1 YEAR 3 YEAR 5 YEAR SINCE INCEPTION (3/2/98)
Aristata Colorado Quality Tax-Exempt Fund 0.68% 4.45% 4.18% 4.30%
Lehman Brothers Municipal Bond Index 2.68% 6.03% 5.45% 5.47%
Lipper Municipal Intermediate Bond Fund Index 1.71% 5.02% 4.52% 4.57%
Lipper Colorado Municipal Fund Average 1.86% 5.38% 4.34% 4.37%
</Table>
THE TOTAL RETURN FIGURES REPRESENT PAST PERFORMANCE AND ARE NOT INDICATIVE OF
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN PERFORMANCE DATA
QUOTED. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. TOTAL RETURN FIGURES ARE NET OF ALL FUND EXPENSES AND REFLECT ALL
FEE WAIVERS. WITHOUT THESE FEE WAIVERS, TOTAL RETURN WOULD HAVE BEEN LOWER. TO
OBTAIN MOST RECENT MONTH-END PERFORMANCE CALL TOLL-FREE 1-800-644-8595.
THE GRAPH AND PERFORMANCE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES.
NOTES TO FUND REVIEW
(1) TOTAL RETURN IS THE CHANGE IN THE VALUE OF AN INVESTMENT IN THE FUND AFTER
REINVESTING ALL INCOME AND CAPITAL GAINS. IT IS CALCULATED BY DIVIDING THE
CHANGE IN TOTAL INVESTMENT VALUE BY THE INITIAL VALUE OF THE INVESTMENT. THE
INCEPTION DATE OF EACH FUND IS MARCH 2, 1998.
(2) THE FIFTEEN LARGEST HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE
EQUITY SECURITIES THAT THE FUND HOLDS AT 4/30/04, AND MAY NOT BE REPRESENTATIVE
OF THE FUND'S CURRENT OR FUTURE INVESTMENTS.
(3) QUALITY PROFILE BASED ON EACH SECURITY'S RATING FROM MOODY'S. FOR THOSE
RATINGS NOT AVAILABLE FROM MOODY'S, S&P RATINGS WERE USED.
THE VIEWS EXPRESSED IN THIS ADVISER UPDATE REFLECT THE ADVISER'S VIEW ONLY
THROUGH 4/30/04. THE ADVISER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON
MARKET AND OTHER CONDITIONS.
11
<Page>
DEFINITION OF INDICES
The LEHMAN BROTHERS GOVERNMENT/CREDIT BOND INDEX and the LEHMAN BROTHERS
INTERMEDIATE GOVERNMENT/ CREDIT BOND INDEX are unmanaged indices that are a
broad measure of bond performance that reflect the reinvestment of income
dividends and capital gain distributions, if any, but do not reflect fees,
brokerage commissions, or other expenses of investing. Intermediate indices
include bonds with maturities of up to ten years.
The LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index that is a broad
measure of tax-exempt bond performance that reflects the reinvestment of income
dividends and capital gain distributions, if any, but does not reflect fees,
brokerage commissions, or other expenses of investing.
The LIPPER COLORADO MUNICIPAL BOND FUND AVERAGE is the average return of all
bond funds tracked by Lipper that limit their assets to those securities exempt
from taxation in the state of Colorado. The average return reflects the
reinvestment of income dividends and capital gain distributions, if any.
The LIPPER CORPORATE DEBT FUNDS A RATED INDEX is an unmanaged index that
measures the performance of funds that invest at least 65% of their assets in
corporate debt issues rated "A" or better or government issues.
The LIPPER MULTI-CAP VALUE FUND INDEX is an unmanaged index of funds, that by
portfolio practice, invest in a variety of market capitalization ranges, without
concentrating 75% of their equity assets in any one market capitalization range
over an extended period of time. Multi-Cap Value funds seek long-term growth of
capital by investing in companies that are considered to be undervalued relative
to a major unmanaged stock index based on price-to-current earnings, book value,
asset value, or other factors. These funds will normally have a below-average
price-to-earnings ratio, price-to-book ratio, and three-year earnings growth
figure, compared to the U.S. diversified multi-cap funds universe average.
The LIPPER MUNICIPAL INTERMEDIATE BOND FUND INDEX is an unmanaged index that
measures the performance of intermediate municipal debt funds (i.e. those with
dollar-weighted average maturities of 5 to 10 years). The index return reflects
the reinvestment of income dividends and capital gain distributions, if any.
The NASDAQ COMPOSITE INDEX is an unmanaged market capitalization price-only
index that tracks the performance of domestic common stocks traded on the
regular NASDAQ market, as well as National Market System traded foreign common
stocks and ADRs. The index includes over 5,000 companies with a market
capitalization over $2.3 trillion.
The STANDARD & POOR'S 500 INDEX (S&P 500) is an unmanaged index containing
common stocks of 500 industrial, transportation, utility and financial
companies, regarded as generally representative of the U.S. stock market. The
return per the total return index reflects the reinvestment of income dividends
and capital gain distributions, if any, but does not reflect fees, brokerage
commissions, or other expenses of investing.
The VALUE LINE COMPOSITE INDEX is an unmanaged equally weighted geometric
average composed of approximately 1700 stocks traded on the New York Stock
Exchange, American Stock Exchange, and over- the-counter that are tracked by the
Value Line Investment Survey. The index return reflects the reinvestment of
income dividends and capital gain distributions, if any, but does not reflect
fees, brokerage commissions, or other expenses of investing.
12
<Page>
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
Financial Investors Trust
We have audited the accompanying statements of assets and liabilities, including
the statements of investments, of the Aristata Equity Fund, Aristata Quality
Bond Fund and Aristata Colorado Quality Tax-Exempt Fund of the Financial
Investors Trust (the "Trust"), as of April 30, 2004, and the related statements
of operations for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended, and the financial highlights
for each of the five years in the period then ended. These financial statements
and financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of April 30, 2004, by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Aristata Equity Fund, Aristata Quality Bond Fund and Aristata Colorado Quality
Tax-Exempt Fund of Financial Investors Trust as of April 30, 2004, the results
of their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Denver, Colorado
June 15, 2004
13
<Page>
STATEMENTS OF INVESTMENTS - APRIL 30, 2004
ARISTATA EQUITY FUND
<Table>
<Caption>
SHARES VALUE*
------ ------
COMMON STOCKS - 98.46%
BASIC MATERIALS - 5.82%
AGRICULTURE - 1.59%
Archer Daniels Midland Co. 28,300 $ 496,948
------------
CHEMICAL - 1.51%
DU Pont (EI) DE Nemours 11,000 472,450
------------
PAPER/PACKAGING - 2.72%
International Paper Co 11,000 443,520
Wausau-Mosinee Paper Corp. 29,000 406,870
------------
850,390
------------
TOTAL BASIC MATERIALS 1,819,788
------------
BUILDING/REAL ESTATE - 4.79%
BUILDING MATERIALS - 2.07%
Vulcan Materials Co. 14,000 647,360
------------
R.E.I.T./REAL ESTATE - 2.72%
Archstone-Smith Trust 15,000 411,450
Duke Realty Corp. 15,000 437,400
------------
848,850
------------
TOTAL BUILDING/REAL ESTATE 1,496,210
------------
CONSUMER DURABLES - 3.63%
HOUSEHOLD GOODS - 3.63%
LA-Z-Boy Inc. 21,000 437,640
Leggett & Platt, Inc. 12,000 271,200
Mattel Inc. 25,000 424,000
------------
1,132,840
------------
TOTAL CONSUMER DURABLES 1,132,840
------------
CONSUMER SERVICES - 1.40%
BROADCASTING/ENTERTAINMENT - 1.40%
Time Warner Inc.** 26,000 437,320
------------
TOTAL CONSUMER SERVICES 437,320
------------
CONSUMER STAPLES - 10.12%
FOOD/BEVERAGE - 2.10%
Albertson's, Inc. 28,000 654,080
------------
PACKAGED GOODS - 2.15%
Avon Products, Inc. 8,000 $ 672,000
------------
RETAIL - 4.23%
BJ's Wholesale Club, Inc.** 16,000 387,680
Dollar General Corp. 20,000 375,200
Target Corp. 12,900 559,473
------------
1,322,353
------------
TEXTILE/APPAREL - 1.64%
Jones Apparel Group 14,000 512,400
------------
TOTAL CONSUMER STAPLES 3,160,833
------------
ELECTRIC & GAS UTILITIES - 7.64%
ELECTRIC UTILITIES - 4.41%
Atmos Energy Corp. 16,000 394,240
Duke Energy Corp. 20,400 429,624
Xcel Energy Inc. 33,190 555,269
------------
1,379,133
------------
GAS UTILITIES - 3.23%
Nicor Inc. 13,000 441,870
Questar Corp. 16,000 567,520
------------
1,009,390
------------
TOTAL ELECTRIC & GAS UTILITIES 2,388,523
------------
ENERGY - 12.98%
OIL FIELD SERVICES - 1.78%
Transocean Inc.** 20,000 555,400
------------
OIL & GAS - 9.40%
BP PLC ADR 15,780 834,762
Kerr-McGee Corp. 10,000 489,300
Valero Energy 13,500 860,760
Westport Resources Corp.** 22,000 753,060
------------
2,937,882
------------
COAL - 1.80%
Peabody Energy Corp. 12,000 562,680
------------
TOTAL ENERGY 4,055,962
------------
</Table>
14
<Page>
<Table>
<Caption>
SHARES VALUE*
------ ------
FINANCIAL - 9.82%
BANKS/S & L/FINANCE/LEASE - 3.45%
Bank Of America Corp. 6,000 $ 482,940
Wachovia Corp. 13,000 594,750
------------
1,077,690
------------
BROKERS/FINANCIAL SERVICES - 3.29%
Arthur J. Gallagher & Co. 12,900 415,767
Marsh & McLennan Cos., Inc. 13,600 613,360
------------
1,029,127
------------
INSURANCE - 3.08%
Allstate Corp. 14,720 675,648
American International Group 4,000 286,600
------------
962,248
------------
TOTAL FINANCIAL 3,069,065
------------
HEALTHCARE - 15.91%
DRUGS - 11.24%
Abbott Laboratories 22,100 972,842
AMGEN, Inc.** 11,000 618,970
Barr Laboritories Inc.** 9,000 372,780
Merck & Co Inc. 14,000 658,000
Mylan Laboratories 16,875 386,606
Schering-Plough Corp. 30,000 501,900
------------
3,511,098
------------
MEDICAL PRODUCTS - 2.99%
Cardinal Health, Inc. 8,000 586,000
Lincare Holdings, Inc.** 10,000 347,300
------------
933,300
------------
HEALTHCARE SERVICES - 1.68%
Medco Health Solutions Inc.** 14,844 525,478
------------
TOTAL HEALTHCARE 4,969,876
------------
INDUSTRIAL PRODUCTS & SERVICES - 12.72%
AEROSPACE - 1.64%
Boeing Co. 12,000 512,280
------------
BUSINESS INFO/SERV. - 1.90%
Maximus Inc.** 17,000 595,000
------------
ELECTRICAL PRODUCTS - 2.39%
Emerson Electric Co. 12,400 $ 746,728
------------
INDUSTRIAL COMPONENTS - 6.79%
General Electric Company 12,000 359,400
Kennametal, Inc. 16,000 690,560
Robbins & Myers, Inc. 15,000 327,900
Snap On, Inc. 22,000 743,160
------------
2,121,020
------------
TOTAL INDUSTRIAL
PRODUCTS & SERVICES 3,975,028
------------
TECHNOLOGY - 9.46%
COMPUTERS/PERIPHERAL - 4.22%
Hewlett-Packard Co. 31,100 612,670
International Business
Machines Corp. 8,000 705,360
------------
1,318,030
------------
ELECTRONICS - 3.95%
Anixter International, Inc.** 20,200 591,860
Flextronics International** 40,000 644,000
------------
1,235,860
------------
SOFTWARE/SYSTEM SUPPORT - 1.29%
Electronic Data Systems Corp. 22,000 402,380
------------
TOTAL TECHNOLOGY 2,956,270
------------
TELECOMMUNICATIONS - 4.17%
COMMUNICATIONS - 4.17%
Bellsouth Corp. 24,100 622,021
Verizon Communications, Inc. 18,000 679,320
------------
1,301,341
------------
TOTAL TELECOMMUNICATIONS 1,301,341
------------
TOTAL COMMON STOCKS
(Cost $21,205,680) 30,763,056
------------
</Table>
15
<Page>
<Table>
<Caption>
SHARES VALUE*
------ ------
SHORT-TERM INVESTMENTS - 1.60%
MUTUAL FUNDS - 1.60%
Fifth Third C/P Fund *** 500,046 $ 500,046
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $500,046) 500,046
------------
TOTAL INVESTMENTS
(Cost $21,705,726) 100.06% 31,263,102
Liabilities in Excess
of Other Assets -0.06% (18,813)
------ ------------
NET ASSETS 100.00% $ 31,244,289
====== ============
</Table>
* SEE NOTE 1 TO FINANCIAL STATEMENTS.
** DENOTES NON-INCOME PRODUCING SECURITY.
*** RELATED PARTY
ADR - AMERICAN DEPOSITARY RECEIPT
ARISTATA QUALITY BOND FUND
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- ---- ------ ----------- ------ ------
U.S. GOVERNMENT &
AGENCY OBLIGATIONS - 34.82%
U.S. TREASURY NOTES - 14.17%
07/15/06 7.000% Aaa/AAA $ 650,000 $ 713,147
08/15/11 5.000% Aaa/AAA 690,000 725,686
05/15/13 3.625% Aaa/AAA 200,000 188,782
------------
1,627,615
------------
U.S. TREASURY BONDS - 3.68%
05/15/10 10.000% Aaa/AAA 390,000 422,571
------------
FEDERAL HOME LOAN BANK - 11.64%
06/11/18 5.000% Aaa/AAA 125,000 119,436
08/19/09 7.050% Aaa/AAA 120,000 121,995
01/12/10 7.155% Aaa/AAA 120,000 124,512
11/18/13 5.125% Aaa/AAA 75,000 74,915
02/09/15 8.000% Aaa/AAA 100,000 105,057
01/24/18 5.740% Aaa/AAA 125,000 125,138
05/09/18 5.350% Aaa/AAA 125,000 122,370
06/04/18 5.150% Aaa/AAA 100,000 96,538
08/08/18 5.500% Aaa/AAA 150,000 148,083
03/04/19 5.750% Aaa/NR 300,000 299,441
------------
1,337,485
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 5.33%
03/10/16 8.200% Aaa/AAA 55,000 70,456
12/28/16 6.780% Aaa/AAA 70,000 75,269
04/24/17 6.500% Aaa/AAA 70,000 74,707
11/07/17 5.750% Aaa/AAA 200,000 200,666
06/04/18 5.000% Aaa/AAA 200,000 191,349
------------
612,447
------------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $3,838,062) 4,000,118
------------
CORPORATE BONDS - 58.40%
COMMUNICATIONS - 3.26%
Bellsouth Corp.
10/15/11 6.000% A1/A+ 120,000 128,178
SBC Communications Inc.
03/15/11 6.250% A1/A+ 120,000 129,654
Verizon Global
06/01/13 4.375% A2/A+ 125,000 116,445
------------
374,277
------------
TOTAL COMMUNICATIONS 374,277
------------
</Table>
16
<Page>
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- ---- ------ ----------- ------ ------
FINANCIAL - 19.17%
AUTOMOBILE - 1.68%
Toyota Motor Credit
12/15/08 5.500% Aa1/AAA $ 180,000 $ 193,574
------------
BANKS/S & L/FINANCE/LEASE - 5.51%
National City Corp.
05/15/19 6.875% A2/A 280,000 315,640
Wells Fargo & Co.
11/15/14 5.000% Aa2/A+ 325,000 317,549
------------
633,189
------------
BROKERS/FINANCIAL SERVICES - 11.98%
Bear Stearns Co.
03/01/07 7.000% A1/A 120,000 131,891
Bear Stearns Co.
07/02/18 4.650% A1/A 140,000 125,184
Charles Schwab Corp.
03/01/10 8.050% A3/A- 210,000 240,745
Goldman Sachs Group Inc.
01/15/11 6.875% Aa3/A+ 120,000 133,704
Merrill Lynch & Co.
04/27/08 7.000% Aa3/A+ 330,000 368,272
Morgan Stanley Dean Witter & Co.
01/15/07 8.330% Aa3/A+ 230,000 259,199
Morgan Stanley Dean Witter & Co.
04/01/14 4.750% A1/A 125,000 117,012
------------
1,376,007
------------
TOTAL FINANCIAL 2,202,770
------------
INDUSTRIAL - 35.97%
AEROSPACE - 3.19%
General Dynamics Corp.
05/15/13 4.25% A2/A 125,000 117,517
United Technologies Corp.
05/15/12 6.100% A2/A 230,000 248,377
------------
365,894
------------
CHEMICALS - 3.27%
Dow Chemical Co.
02/01/11 6.125% A3/A- 350,000 375,587
------------
COMPUTER/PERIPHERAL - 1.74%
Hewlett Packard Co.
06/15/05 7.150% A2/A- $ 190,000 $ 200,288
------------
DRUGS - 3.05%
Eli Lilly & Co.
03/15/12 6.000% Aa3/AA 100,000 108,467
Pfizer Inc.
02/15/14 4.500% Aaa/AAA 250,000 241,623
------------
350,090
------------
FOOD/BEVERAGE - 7.24%
Albertson's, Inc.
08/01/09 6.950% Baa2/BBB 70,000 77,426
Anheuser Busch Co.
01/15/14 4.950% A1/A+ 175,000 173,725
Anheuser Busch Co.
10/15/16 5.050% A1/A+ 150,000 146,543
Campbell Soup Co.
12/03/12 5.000% A3/A 150,000 150,461
Coca-Cola Enterprises Inc.
08/15/11 6.125% A2/A+ 140,000 151,984
Sara Lee Corp.
09/15/11 6.250% A3/A+ 120,000 131,568
------------
831,707
------------
HOUSEHOLD GOODS - 3.25%
Kimberly Clark Corp.
02/15/12 5.625% Aa2/AA- 350,000 372,814
------------
MEDICAL PRODUCTS - 1.99%
Cardinal Health Inc.
06/15/15 4.000% A2/A 255,000 228,510
------------
METALS - 2.72%
Alcan Aluminum Ltd.
11/01/08 6.250% Baa1/A- 290,000 312,800
------------
PACKAGED GOODS - 4.16%
Fortune Brands, Inc.
04/01/08 6.250% A2/A 230,000 250,294
Estee Lauder Inc.
01/15/12 6.000% A1/A+ 210,000 227,860
------------
478,154
------------
</Table>
17
<Page>
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- ---- ------ ----------- ------ ------
RESTAURANTS - 4.25%
McDonalds Corp.
04/15/11 6.000% A2/A $ 190,000 $ 203,975
09/30/16 5.000% A2/A 300,000 284,328
------------
488,303
------------
RETAIL - 1.11%
Target Corp.
03/01/12 5.875% A2/A+ 120,000 128,005
------------
TOTAL INDUSTRIAL 4,132,152
------------
TOTAL CORPORATE BONDS 6,709,199
(Cost $6,417,340) ------------
<Caption>
SHARES
------
SHORT-TERM INVESTMENTS - 5.75%
MUTUAL FUNDS - 5.75%
Fifth Third C/P Fund *** 200,000 200,000
Fifth Third Treasury Fund *** 460,219 460,219
------------
TOTAL SHORT-TERM INVESTMENTS 660,219
(Cost $660,219) ------------
TOTAL INVESTMENTS 98.97% 11,369,536
(Cost $10,915,621)
Other Assets in Excess 1.03% 118,541
of Liabilities --------- ------------
NET ASSETS 100.00% $ 11,488,077
========= ============
</Table>
* See note 1 to financial statements.
** Ratings - The Moody's and S&P ratings are believed to be the most recent
ratings at April 30, 2004. Ratings are not covered by the Report of Independent
Auditors.
*** Related Party
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- ---- ------ ----------- ------ ------
COLORADO MUNICIPAL OBLIGATIONS - 95.26%
PREREFUNDED - 7.53%
Adams County
School District #12, FGIC
12/15/09 5.250% Aaa/AAA $ 500,000 $ 556,160
Colo Department of Transportation, AMBAC
06/15/15 5.700% Aaa/AAA 250,000 285,613
------------
TOTAL PREREFUNDED 841,773
(Cost $747,770) ------------
GENERAL OBLIGATION BONDS - 26.70%
Adams County
School District #50
12/01/10 5.250% A1/AA- 500,000 541,845
Arapahoe County
School District #5, FSA
12/15/22 4.125% Aaa/AAA 100,000 91,500
Basalt Colorado
Sanitation District, AMBAC
12/01/18 5.000% Aaa/NR 125,000 129,789
Boulder County Open Space
06/15/08 5.100% NR/AA 200,000 212,820
Boulder Valley
School District #Re-2, FGIC
12/01/13 5.000% Aaa/AAA 150,000 158,971
City of Aspen
Series B 5.000% Aa3/NR 175,000 179,275
12/01/20
Clear Creek County
School District #Re-1, FSA
12/01/13 4.300% NR/AAA 125,000 128,454
Denver Colorado City & County
08/01/14 5.000% Aa1/AA+ 100,000 105,399
El Paso County
School District #20, FGIC
12/15/07 3.750% Aaa/AAA 150,000 157,120
Garfield County School District, FSA
12/01/15 4.300% Aaa/NR 125,000 125,911
Parker Colorado Property
District 1, AMBAC
12/01/12 4.550% Aaa/AAA 175,000 182,658
</Table>
18
<Page>
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- ---- ------ ----------- ------ ------
GENERAL OBLIGATION BONDS (CONTINUED)
Pitkin County
School District 1, FGIC
12/01/20 5.000% Aaa/AAA $ 150,000 $ 154,382
San Miguel County
School District #R-1, MBIA
12/01/06 5.200% Aaa/AAA 250,000 270,545
Thornton, FSA
12/01/07 5.150% Aaa/AAA 500,000 547,330
------------
TOTAL GENERAL OBLIGATION BONDS 2,985,999
(Cost $2,814,633) ------------
REVENUE BONDS - 61.03%
EDUCATION - 9.49%
Colorado EDL & Cultural
12/01/16 6.000% NR/AA 125,000 140,237
Colorado EDL & Cultural, AMBAC
06/01/20 5.000% Aaa/AAA 200,000 205,500
12/01/21 5.000% Aaa/NR 150,000 153,414
Colorado School of Mines, AMBAC
12/01/30 5.000% Aaa/AAA 100,000 99,967
University of Colorado
Certificates of Participation, AMBAC
06/01/23 5.000% Aaa/AAA 150,000 152,103
University of Colorado Enterprise
System Revenue Series A
06/01/16 5.100% Aa3/AA- 150,000 158,465
University of Colorado Enterprise
System Revenue Series B, FGIC
06/01/24 5.000% Aaa/AAA 150,000 151,223
------------
1,060,909
------------
FINANCE - 8.42%
Aspen Colorado Sales Tax
11/01/10 5.000% NR/A 120,000 127,780
Boulder Colorado Sales Tax, AMBAC
08/15/13 5.150% Aaa/AAA 100,000 107,011
Delta CO Sales & Use Tax, FSA
12/01/11 4.000% Aaa/NR 100,000 102,838
Durango Colorado Sales & Use Tax, FGIC
12/01/16 5.500% Aaa/AAA 200,000 219,198
Jefferson County Open Space, FGIC
11/01/19 5.000% Aaa/AAA $ 100,000 $ 103,265
Larimar County Courts Cetificate, FSA
12/15/11 3.800% Aaa/AAA 150,000 152,290
Pitkin County Sales Tax, FSA
12/01/11 4.000% Aaa/AAA 125,000 128,548
------------
940,930
------------
HOSPITAL - 2.14%
University of Colorado Hospital Authority, AMBAC
11/15/09 5.000% Aaa/NR 220,000 239,283
------------
MISCELLANEOUS-OTHER - 6.63%
Boulder County CO (Atmospheric Research), AMBAC
09/01/15 4.000% Aaa/AAA 120,000 117,912
Boulder County CO (Atmospheric Research), MBIA
09/01/22 5.000% Aaa/AAA 200,000 203,418
Boulder County CO Open Space, MBIA
07/15/14 4.000% Aaa/AAA 100,000 99,456
Douglas County Sales & Use Tax, MBIA
10/15/07 Aaa/AAA 300,000 320,916
------------
741,702
------------
POWER - 2.96%
Adams County Pollution Control, MBIA
04/01/08 5.625% Aaa/AAA 175,000 175,432
Pueblo County Pollution Control, AMBAC
01/01/19 5.100% Aaa/AAA 150,000 155,367
------------
330,799
------------
TRANSPORTATION - 7.39%
Arapahoe County
Highway E-470, MBIA
08/31/05 5.150% Aaa/AAA 250,000 262,742
Colorado Department of Transportation, MBIA
06/15/09 4.200% Aaa/AAA 225,000 236,981
Denver City & County Airport, MBIA
11/15/16 5.750% Aaa/AAA 300,000 327,096
------------
826,819
------------
WATER/SEWER - 24.00%
Boulder Colorado Water & Sewer
12/01/12 5.300% Aa2/AA+ 125,000 136,185
</Table>
19
<Page>
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- ---- ------ ----------- ------ ------
REVENUE BONDS (CONTINUED)
WATER/SEWER (CONTINUED)
Broomfield CO Water Activity, MBIA
12/01/22 4.750% Aaa/AAA $ 125,000 $ 125,014
Colorado Springs Utility
11/15/21 5.000% Aa2/AA 245,000 251,652
Colorado Water Reservoir & Power
Development Authority
09/01/07 5.250% Aaa/AAA 250,000 273,115
East Cherry Creek Water
& Sanitation, MBIA
11/15/17 4.600% Aaa/AAA 250,000 254,455
Fort Collins Storm Drainage, AMBAC
12/01/20 4.875% Aaa/AAA 250,000 255,392
Fountain Valley Authority
Water Treatment
12/01/07 5.200% Aa2/AA 400,000 422,168
Golden CO Water & Waste, FSA
11/15/22 4.950% Aaa/NR 150,000 152,317
Greeley CO Water Reservoir, AMBAC
08/01/19 Aaa/AAA 250,000 233,667
Little Thompson Water District, MBIA
12/01/18 5.800% Aaa/NR 150,000 169,062
Pagosa Area Water & Sanitation, MBIA
12/01/14 4.000% Aaa/AAA 150,000 149,169
Pleasant View Water and Sanitation District, MBIA
12/01/13 4.350% Aaa/AAA 125,000 128,498
Pueblo Colorado Board
Waterworks, FSA
11/01/09 5.250% Aaa/AAA 120,000 132,844
------------
2,683,538
------------
TOTAL REVENUE BONDS 6,823,980
(Cost $6,520,690) ------------
TOTAL COLORADO MUNICIPAL
OBLIGATIONS
(Cost $10,083,093) 10,651,752
------------
TOTAL INVESTMENTS 95.26% 10,651,752
(Cost $10,083,093)
Other Assets in Excess
of Liabilities 4.74% 529,774
------ ------------
NET ASSETS 100.00% $ 11,181,526
====== ============
</Table>
*See note 1 to financial statements.
**Ratings - The Moody's and S&P ratings are believed to be the most recent
ratings at April 30, 2004. Ratings are not covered by the Report of Independent
Auditors.
***The Aristata Colorado Quality Tax-Exempt Fund had the following insurance
concentration greater than 10% at April 30, 2004 (as a percentage of net
assets):
<Table>
MBIA 24.35%
AMBAC 20.73%
FSA 13.97%
FGIC 13.42%
</Table>
20
<Page>
STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 2004
<Table>
<Caption>
COLORADO QUALITY
EQUITY QUALITY BOND TAX-EXEMPT
-------------------------------------------------------
ASSETS:
Investments, at value (Cost - see below) $ 31,263,102 $ 11,369,536 $ 10,651,752
Cash 1 0 337,701
Dividends receivable 36,747 0 0
Interest receivable 241 176,431 188,138
Receivable for portfolio shares sold 11,056 3,612 1,000
Receivable for investments sold 0 0 130,658
Prepaid and other assets 4,964 3,799 0
-------------------------------------------------------
Total assets 31,316,111 11,553,378 11,309,249
-------------------------------------------------------
LIABILITIES:
Payable for portfolio shares redeemed 7,500 7,500 67,000
Accrued investment advisory fee 23,593 5,128 5,055
Accrued administration fee 12,785 6,227 3,604
Dividends payable 0 11,780 27,458
Other payables 27,944 34,666 24,606
-------------------------------------------------------
Total Liabilities 71,822 65,301 127,723
-------------------------------------------------------
NET ASSETS $ 31,244,289 $ 11,488,077 $ 11,181,526
=======================================================
COST OF INVESTMENTS $ 21,705,726 $ 10,915,621 $ 10,083,093
COMPOSITION OF NET ASSETS:
Paid in capital $ 20,217,217 $ 11,414,012 $ 10,479,745
Undistributed net investment income 0 62,714 39,316
Accumulated net realized gain (loss) on investments 1,469,696 (442,564) 93,806
Net unrealized appreciation in value of investments 9,557,376 453,915 568,659
-------------------------------------------------------
NET ASSETS $ 31,244,289 $ 11,488,077 $ 11,181,526
=======================================================
NET ASSET VALUE PER SHARE:
Net Assets $ 31,244,289 $ 11,488,077 $ 11,181,526
Shares of beneficial interest outstanding of
no par value, unlimited shares authorized 3,853,637 1,207,358 1,167,932
Net asset value and redemption price per share $ 8.11 $ 9.52 $ 9.57
</Table>
See notes to financial statements.
21
<Page>
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED APRIL 30, 2004
<Table>
<Caption>
COLORADO QUALITY
EQUITY QUALITY BOND TAX-EXEMPT
-------------------------------------------------------
INVESTMENT INCOME:
Interest $ 5,170 $ 778,162 $ 587,498
Dividends 632,283 0 0
-------------------------------------------------------
Total Income 637,453 778,162 587,498
-------------------------------------------------------
EXPENSES:
Investment advisory fee (Note 4) 249,626 70,997 65,452
Administration fee (Note 4) 150,821 75,410 45,246
Legal 1,840 4,340 1,395
Printing 10,365 4,954 5,361
Registration 9,576 8,458 894
Audit 17,960 21,568 17,787
Custodian 4,336 2,951 3,076
Trustees 1,652 1,003 736
Insurance 896 1,114 748
Other 13,960 17,235 17,200
-------------------------------------------------------
Total Expenses Before Waivers 461,032 208,030 157,895
Expenses waived by administrator (Note 4) (12,391) (7,166) (5,076)
-------------------------------------------------------
Net Expenses 448,641 200,864 152,819
-------------------------------------------------------
NET INVESTMENT INCOME 188,812 577,298 434,679
-------------------------------------------------------
Net realized gain on investments 3,100,101 159,533 214,406
Change in net unrealized appreciation/depreciation 3,233,011 (714,693) (547,034)
-------------------------------------------------------
Net gain (loss) on investments 6,333,112 (555,160) (332,628)
-------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 6,521,924 $ 22,138 $ 102,051
=======================================================
</Table>
See notes to financial statements.
22
<Page>
STATEMENTS OF CHANGES IN NET ASSETS - EQUITY FUND
<Table>
<Caption>
FOR THE YEAR ENDED FOR THE YEAR ENDED
APRIL 30, 2004 APRIL 30, 2003
----------------------------------------
OPERATIONS:
Net investment income $ 188,812 $ 381,997
Net realized gain on investments 3,100,101 4,597,536
Change in unrealized appreciation/depreciation 3,233,011 (18,777,911)
----------------------------------------
Net increase (decrease) in net assets from operations 6,521,924 (13,798,378)
----------------------------------------
DISTRIBUTIONS:
From net investment income (202,145) (407,670)
From net realized gain 0 (2,115,710)
----------------------------------------
Net decrease in net assets from distributions (202,145) (2,523,380)
----------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 3,743,726 3,844,850
Reinvested dividends 145,844 2,123,577
Cost of shares redeemed (3,246,190) (33,063,463)
----------------------------------------
Net increase (decrease) in net assets from
share transactions 643,380 (27,095,036)
----------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 6,963,159 (43,416,794)
----------------------------------------
NET ASSETS:
Beginning of period 24,281,130 67,697,924
----------------------------------------
End of period* $ 31,244,289 $ 24,281,130
========================================
*Includes undistributed net investment income of: $ 0 $ 3,581
</Table>
See notes to financial statements.
23
<Page>
STATEMENTS OF CHANGES IN NET ASSETS - QUALITY BOND FUND
<Table>
<Caption>
FOR THE YEAR ENDED FOR THE YEAR ENDED
APRIL 30, 2004 APRIL 30, 2003
----------------------------------------
OPERATIONS:
Net investment income $ 577,298 $ 1,201,017
Net realized gain on investments 159,533 1,103,817
Change in net unrealized appreciation/depreciation (714,693) 80,383
----------------------------------------
Net increase in net assets from operations 22,138 2,385,217
----------------------------------------
DISTRIBUTIONS:
From net investment income (577,229) (1,509,224)
----------------------------------------
Net decrease in net assets from distributions (577,229) (1,509,224)
----------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 2,250,978 3,306,781
Reinvested dividends 412,790 1,067,814
Cost of shares redeemed (7,038,495) (30,655,057)
----------------------------------------
Net decrease in net assets from
share transactions (4,374,727) (26,280,462)
----------------------------------------
NET DECREASE IN NET ASSETS (4,929,818) (25,404,469)
----------------------------------------
NET ASSETS:
Beginning of period 16,417,895 41,822,364
----------------------------------------
End of period* $ 11,488,077 $ 16,417,895
========================================
*Includes (over) undistributed net investment income of: $ 62,714 $ (224,341)
</Table>
See notes to financial statements.
24
<Page>
STATEMENTS OF CHANGES IN NET ASSETS - COLORADO QUALITY TAX-EXEMPT FUND
<Table>
<Caption>
FOR THE YEAR ENDED FOR THE YEAR ENDED
APRIL 30, 2004 APRIL 30, 2003
----------------------------------------
OPERATIONS:
Net investment income $ 434,679 $ 546,746
Net realized gain on investments 214,406 8,795
Change in net unrealized appreciation/depreciation (547,034) 418,742
----------------------------------------
Net increase in net assets from operations 102,051 974,283
----------------------------------------
DISTRIBUTIONS:
From net investment income (434,588) (546,152)
From net realized gain (153,389) (6,020)
----------------------------------------
Net decrease in net assets from distributions (587,977) (552,172)
----------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 216,644 1,634,243
Reinvested dividends 184,159 174,495
Cost of shares redeemed (2,702,159) (1,612,115)
----------------------------------------
Net increase(decrease) in net assets from
share transactions (2,301,356) 196,623
----------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (2,787,282) 618,734
----------------------------------------
NET ASSETS:
Beginning of period 13,968,808 13,350,074
----------------------------------------
End of period* $ 11,181,526 $ 13,968,808
========================================
*Includes undistributed net investment income of: $ 39,316 $ 8,889
</Table>
See notes to financial statements.
25
<Page>
FINANCIAL HIGHLIGHTS - EQUITY FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE YEAR ENDED APRIL 30,
2004 2003 2002 2001 2000
------------------------------------------------------------
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $ 6.47 $ 8.22 $ 9.34 $ 9.34 $ 11.11
------------------------------------------------------------
Income from investment operations:
Net investment income 0.05 0.07 0.10 0.11 0.12
Net realized and unrealized gain (loss)
on investments 1.64 (1.49) (0.58) 0.78 (0.01)
------------------------------------------------------------
Total income (loss) from investment
operations 1.69 (1.42) (0.48) 0.89 0.11
------------------------------------------------------------
DISTRIBUTIONS:
From net investment income (0.05) (0.07) (0.09) (0.11) (0.12)
From net realized gain - (0.26) (0.55) (0.78) (1.76)
------------------------------------------------------------
Total distributions (0.05) (0.33) (0.64) (0.89) (1.88)
------------------------------------------------------------
Net asset value - end of period $ 8.11 $ 6.47 $ 8.22 $ 9.34 $ 9.34
============================================================
TOTAL RETURN* 26.21% (17.25)% (4.99)% 10.31% 2.23%
============================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 31,244 $ 24,281 $ 67,698 $ 68,707 $ 73,076
============================================================
Ratio of expenses to average net assets 1.53% 1.29% 1.05% 1.05% 1.01%
============================================================
Ratio of net investment income to
average net assets 0.65% 1.10% 1.10% 1.14% 1.20%
============================================================
Ratio of expenses to average net
assets without fee waivers 1.58% 1.47% 1.17% 1.16% 1.09%
============================================================
Ratio of net investment income to
average net assets without fee waivers 0.60% 0.92% 0.99% 1.03% 1.12%
============================================================
Portfolio turnover rate 25.83% 17.82% 24.12% 27.47% 16.63%
============================================================
</Table>
* Total return would have been lower had various fees not been waived during
the period.
See notes to financial statements.
26
<Page>
FINANCIAL HIGHLIGHTS - QUALITY BOND FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE YEAR ENDED APRIL 30,
2004 2003 2002 2001 2000
------------------------------------------------------------
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $ 9.94 $ 9.75 $ 9.75 $ 9.32 $ 9.88
------------------------------------------------------------
Income from investment operations:
Net investment income 0.35 0.51 0.57 0.60 0.59
Net realized and unrealized gain (loss)
on investments (0.37) 0.34 (0.01) 0.43 (0.57)
------------------------------------------------------------
Total income (loss) from investment
operations (0.02) 0.85 0.56 1.03 0.02
------------------------------------------------------------
DISTRIBUTIONS:
From net investment income (0.40) (0.66) (0.56) (0.60) (0.58)
------------------------------------------------------------
Total distributions (0.40) (0.66) (0.56) (0.60) (0.58)
------------------------------------------------------------
Net asset value - end of period $ 9.52 $ 9.94 $ 9.75 $ 9.75 $ 9.32
============================================================
TOTAL RETURN* (0.21)% 8.93% 5.85% 11.33% 0.28%
============================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 11,488 $ 16,418 $ 41,822 $ 42,399 $ 42,408
============================================================
Ratio of expenses to average net assets 1.42% 0.94% 0.70% 0.70% 0.68%
============================================================
Ratio of net investment income to
average net assets 4.09% 5.02% 5.75% 6.25% 6.16%
============================================================
Ratio of expenses to average net
assets without fee waivers 1.47% 1.06% 0.77% 0.79% 0.75%
============================================================
Ratio of net investment income to
average net assets without fee waivers 4.04% 4.91% 5.67% 6.16% 6.10%
============================================================
Portfolio turnover rate 33.82% 20.41% 32.04% 15.72% 10.06%
============================================================
</Table>
* Total return would have been lower had various fees not been waived during
the period.
See notes to financial statements.
27
<Page>
FINANCIAL HIGHLIGHTS - COLORADO QUALITY TAX-EXEMPT FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE YEAR ENDED APRIL 30,
2004 2003 2002 2001 2000
------------------------------------------------------------
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $ 9.95 $ 9.65 $ 9.58 $ 9.35 $ 9.89
------------------------------------------------------------
Income from investment operations:
Net investment income 0.33 0.38 0.45 0.46 0.46
Net realized and unrealized gain (loss)
on investments (0.26) 0.30 0.08 0.23 (0.45)
------------------------------------------------------------
Total income from investment operations 0.07 0.68 0.53 0.69 0.01
------------------------------------------------------------
DISTRIBUTIONS:
From net investment income (0.33) (0.38) (0.44) (0.46) (0.46)
From net realized gain (0.12) - (0.02) - (0.09)
------------------------------------------------------------
Total distributions (0.45) (0.38) (0.46) (0.46) (0.55)
------------------------------------------------------------
Net asset value - end of period $ 9.57 $ 9.95 $ 9.65 $ 9.58 $ 9.35
============================================================
TOTAL RETURN* 0.68% 7.19% 5.62% 7.50% 0.16%
============================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 11,182 $ 13,969 $ 13,350 $ 12,725 $ 13,799
============================================================
Ratio of expenses to average net assets 1.17% 0.86% 0.50% 0.50% 0.48%
============================================================
Ratio of net investment income to
average net assets 3.34% 3.86% 4.57% 4.81% 4.85%
============================================================
Ratio of expenses to average net assets
without fee waivers and reimbursements 1.21% 1.09% 1.03% 1.04% 0.93%
============================================================
Ratio of net investment income to
average net assets without fee
waivers and reimbursements 3.30% 3.62% 4.04% 4.27% 4.41%
============================================================
Portfolio turnover rate 10.93% 17.79% 15.91% 9.29% 12.41%
============================================================
</Table>
* Total return would have been lower had various fees not been waived during
the period.
See notes to financial statements.
28
<Page>
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Financial Investors Trust, a Delaware business trust, is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company. The financial statements included herein relate to the
Trust's Aristata Family of Funds. The Aristata Family of Funds includes the
Equity Fund, Quality Bond Fund and Colorado Quality Tax-Exempt Fund. The
financial statements of the remaining portfolios of the Trust are presented
separately.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with accounting principles generally accepted in the
United States of America.
INVESTMENT VALUATION: Securities of the Fund are valued as of the close of
regular trading on the New York Stock Exchange, normally 4:00 p.m. (Eastern
time), on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sales price of the day
or, in the absence of sales, at values based on the average closing bid and
asked price. Securities traded on NASDAQ are valued at the NASDAQ Official
Closing Price. Securities for which market quotations are not readily available
are valued under procedures established by the Board of Trustees to determine
fair value in good faith. Short-term securities having a remaining maturity of
60 days or less are valued at amortized cost which approximates market value.
FEDERAL INCOME TAXES: It is the Funds' policy to comply with the provisions
of the Internal Revenue Code applicable to regulated investment companies and to
distribute all of their taxable income to shareholders. Therefore, no federal
income tax provision is required.
At April 30, 2004, the Aristata Quality Bond Fund used $159,531 of capital
loss carryover in the current period to offset net realized gain and had
available for federal income tax purposes unused capital loss carryovers of
$274,026 and 168,538 expiring April 30, 2009 and 2010, respectively.
The Aristata Equity Fund used $1,262,843 of capital loss carryover in the
current period to offset net realized gain for federal income tax purposes.
EXPENSES: Most expenses of the Trust can be directly attributed to a Fund.
Expenses which cannot be directly attributed are apportioned among all funds in
the Trust based on average net assets.
DIVIDENDS: The Equity Fund will declare and pay dividends from net
investment income, if any, quarterly. Dividends from net investment income are
declared daily and paid monthly for the Quality Bond and Colorado Quality
Tax-Exempt Funds. Dividends from net realized gains, if any, are declared at
least once a year for each of the Funds. Dividends to shareholders are recorded
on the ex-dividend date.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS: Net investment income
(loss) and net realized gain (loss) may differ for financial statement and tax
purposes. The character of distributions made during the year from net
investment income or net realized gains (losses) may differ from its ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain (loss) was
recorded by the Fund.
The tax character of the distributions paid by the Funds during the last two
fiscal years ended April 30, 2004 and 2003, respectively, were as follows:
<Table>
<Caption>
EQUITY QUALITY BOND COLORADO TAX-EXEMPT
2004 2003 2004 2003 2004 2003
---------------------------------------------------------------------------------
DISTRIBUTIONS PAID FROM:
Ordinary Income $ 185,272 $ 407,670 $ 577,229 $ 1,509,224 - -
Tax-Exempt Income - - - - $ 434,588 $ 546,152
Long-Term Capital Gain 16,873 2,115,710 - - 153,389 6,020
---------------------------------------------------------------------------------
Total $ 202,145 $ 2,523,380 $ 577,229 $ 1,509,224 $ 587,977 $ 552,172
=================================================================================
</Table>
29
<Page>
As of April 30, 2004, the components of distributable earnings on a tax basis
were as follows:
<Table>
<Caption>
EQUITY QUALITY BOND COLORADO TAX-EXEMPT
--------------------------------------------------
Accumulated net investment income (loss) $ 0 $ 5,617 $ 33,290
Accumulated net realized gain (loss) 1,469,696 (442,564) 93,806
Net unrealized appreciation 9,557,376 453,915 568,659
Other cumulative effect of timing differences 0 57,097 6,026
--------------------------------------------------
Total $ 11,027,072 $ 74,065 $ 701,781
==================================================
</Table>
The timing differences are the result of differences between book and tax
recognition of premium amortization and accretion of discount.
For the year ended April 30, 2004, the effect of certain differences was
reclassified. Accordingly, amounts have been reclassified on the Aristata Equity
Fund to reflect an increase in undistributed net investment income of $9,752 and
a decrease in accumulated net realized gain on investment of $9,752. In
addition, amounts have been reclassified on the Aristata Quality Bond Fund to
reflect an increase in undistributed net investment income of $286,986, an
increase in accumulated net realized loss on investments of $12,681, and a
decrease in paid in capital of $274,305. These reclassifications are primarily
the result of differing book/tax treatment of bond premium and discount income
from real estate investment trusts and non-deductible excise taxes paid.
OTHER: Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Dividend income is recorded on
the ex-dividend date. Interest income, which includes amortization of premium
and accretion of discount, is accrued and recorded daily. Realized gains and
losses from investment transactions and unrealized appreciation and depreciation
of investments are reported on an identified cost basis which is the same basis
the Funds use for federal income tax purposes.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates.
2. SHARES OF BENEFICIAL INTEREST
On April 30, 2004, there was an unlimited number of no par value shares of
beneficial interest authorized for each fund. Transactions in shares of
beneficial interest were as follows:
<Table>
<Caption>
COLORADO QUALITY
EQUITY FUND QUALITY BOND FUND TAX-EXEMPT FUND
--------------------------------------------------------------------------------------------
FOR THE YEAR ENDED APRIL 30, FOR THE YEAR ENDED APRIL 30, FOR THE YEAR ENDED APRIL 30,
2004 2003 2004 2003 2004 2003
--------------------------------------------------------------------------------------------
Shares sold 500,645 561,873 225,752 332,813 21,631 166,288
Shares issued as
reinvestment of dividends 19,150 320,954 42,241 107,672 18,767 17,732
Shares redeemed (417,962) (5,369,477) (712,328) (3,079,605) (275,938) (163,977)
- ----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) 101,833 (4,486,650) (444,335) (2,639,120) (235,540) 20,043
============================================================================================================================
</Table>
3. UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS
<Table>
<Caption>
COLORADO QUALITY
EQUITY FUND QUALITY BOND FUND TAX-EXEMPT FUND
-----------------------------------------------------
As of April 30, 2004
Gross appreciation (excess of
value over tax cost) $ 10,129,656 $ 587,541 $ 595,292
Gross depreciation (excess of
tax cost over value) (572,280) (133,626) (26,633)
- ----------------------------------------------------------------------------------------
Net unrealized appreciation $ 9,557,376 $ 453,915 $ 568,659
========================================================================================
Cost of investments for income
tax purposes $ 21,705,726 $ 10,915,621 $ 10,083,093
========================================================================================
</Table>
30
<Page>
4. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS
Tempest Investment Counselors, Inc. (the "Adviser") serves as investment
adviser to each Fund pursuant to separate investment advisory agreements (the
"Advisory Agreements") with the Trust. For its services, the Adviser is entitled
to receive a fee, computed daily and payable monthly, at the annual rate of
0.85%, 0.50% and 0.50% of the average net assets for the Equity Fund, Quality
Bond Fund and Colorado Quality Tax-Exempt Fund, respectively. Prior to October
1, 2002, the Adviser voluntarily agreed to waive a portion of its fees and/or
reimburse fund expenses to the extent necessary for the Equity, Quality Bond and
Colorado Quality Tax-Exempt Funds to maintain a total expense ratio of no more
than 1.05%, 0.70% and 0.50%, respectively.
On May 20, 2004, Tempest Investment Counselors, Inc. ("Tempest"), the
current investment adviser to the Aristata Funds, publicly announced that it was
in negotiations to be acquired by Denver Investment Advisors ("DIA") in a
transaction as a result of which Tempest would become a wholly-owned subsidiary
of DIA. On June 15, 2004, the Trustees (including the independent Trustees)
voted unanimously at an in-person meeting to approve, subject to stockholder
approval, having the Trust (on behalf of the Aristata Funds) enter into an
interim advisory contract with DIA, in the event that the contemplated
acquisition were to occur. The effective date of the interim advisory contract
would be consistent with the closing of the acquisition, currently scheduled for
June 30, 2004.
ALPS Mutual Funds Services, Inc. ("ALPS") serves as the administrator to
each Fund. ALPS is entitled to receive a fee from each Fund, computed daily and
payable monthly, at the annual rate of .20% of the average net assets of each
Fund, subject to a minimum annual fee, effective October 1, 2002, of $150,000
for the Equity Fund, $75,000 for the Quality Bond Fund and $45,000 for the
Colorado Quality Tax-Exempt Fund. In addition to administration services, the
administration fee also covers the costs of fund accounting, shareholder
servicing and transfer agency. ALPS has voluntarily agreed to waive its minimum
annual fees to $146,500, $71,500 and $41,500 for the Aristata Equity, Quality
Bond, and Colorado Quality Tax-Exempt Funds, respectively, for the period
October 1, 2003 to September 30, 2004. These waivers are voluntary and may be
terminated at any time. For the period October 1, 2002 to September 20, 2003,
ALPS voluntarily waived its minimum annual fees to $125,000, $62,500 and $37,500
for the Aristata Equity, Quality Bond and Colorado Quality Tax-Exempt Funds,
respectively. Prior to October 1, 2002, ALPS was entitled to receive a fee from
each Fund at the annual rate of 0.20% of the average net assets of each Fund,
subject to a minimum monthly fee of $15,000 for the Equity Fund, $7,500 for the
Quality Bond Fund, and $5,000 for the Colorado Quality Tax-Exempt Fund.
As of April 30, 2004, one shareholder owned 10% of the Colorado Quality
Tax-Exempt Fund.
5. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from the sale of securities,
other than temporary cash investments, during the year ended April 30, 2004 were
as follows:
<Table>
<Caption>
U.S. GOVERNMENT
SECURITIES ALL OTHER TOTAL
-------------------------------------------
EQUITY FUND
Purchases $ - $ 8,223,782 $ 8,223,782
Sales $ - $ 7,353,844 $ 7,353,844
-----------------------------------------------------------------
QUALITY BOND FUND
Purchases $ 2,216,899 $ 2,291,508 $ 4,508,407
Sales $ 3,778,476 $ 4,596,335 $ 8,374,811
-----------------------------------------------------------------
COLORADO QUALITY
TAX-EXEMPT FUND
Purchases $ - $ 1,376,003 $ 1,376,003
Sales $ - $ 3,888,501 $ 3,888,501
</Table>
31
<Page>
TRUSTEES AND OFFICERS (UNAUDITED)
As of April 30, 2004, the Funds represent three of seven separate series
under the Trust. The Trust's Board of Trustees oversees the overall management
of each series of the Trust and elects the officers of the Trust. The principal
occupations for the past five years of the Trustees and executive officers of
the Trust are listed below.
INTERESTED TRUSTEES & OFFICERS
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND
POSITION(S) HELD NUMBER OF PORTFOLIOS PRINCIPAL OCCUPATION DURING THE PAST 5
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN YEARS* AND OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ---------------------------------------------------------------------------------------------------------------------------
W. Robert Alexander, (76) Trustee and W. Robert Alexander was Mr. Alexander is the Chief Executive Officer
Chairman elected by the initial of ALPS Mutual Funds Services, Inc., ("ALPS")
1625 Broadway shareholder in December and ALPS Distributors, Inc., ("ADI") which
Suite 2200 1993 and oversees 7 provide administration and distribution
Denver, CO 80202 portfolios in fund services, respectively, for proprietary mutual
complex. fund complexes. Mr. Alexander was Vice
Chairman of First Interstate Bank of Denver,
responsible for Trust, Private Banking, Retail
Banking, Cash Management Services and
Marketing. Mr. Alexander is currently a member
of the Board of Trustees of the Hunter and
Hughes Trusts, Financial Investors Variable
Insurance Trust, and Reaves Utility Income
Fund. Because of his affiliation with ALPS and
ADI, Mr. Alexander is considered an
"interested" Trustee of the Trust.
Edmund J. Burke, (43) President Edmund J. Burke was Mr. Burke is President and Director of ALPS and
elected as President at ADI. Mr. Burke joined ALPS in 1991 as Vice
1625 Broadway the December 17, 2002 President and National Sales Manager. Because
Suite 2200 meeting of the Board of of his positions with ADI and ALPS, Mr. Burke
Denver, CO 80202 Trustees. is deemed an affiliate of the Trust as defined
under the 1940 Act.
J. Jeffrey Dohse, (62) Vice President J. Jeffrey Dohse was Executive Vice President of Tempest Investment
elected as Vice President Counselors, Inc., since July 1983.
1380 Lawrence Street at the September 17, 2002
Suite 1050 meeting of the Board of
Denver, CO 80202 Trustees.
H. David Lansdowne, (57) Vice President H. David Lansdowne was President and CEO of Tempest Investment
elected as Vice President Counselors, Inc., since January 1987. Mr.
1380 Lawrence Street at the January 20, 1998 Lansdowne joined Tempest as Director of
Suite 1050 meeting of the Board of Research in 1983.
Denver, CO 80202 Trustees.
</Table>
32
<Page>
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND
POSITION(S) HELD NUMBER OF PORTFOLIOS PRINCIPAL OCCUPATION DURING THE PAST 5
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN YEARS* AND OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ---------------------------------------------------------------------------------------------------------------------------
Jeremy O. May, (34) Treasurer Jeremy May was elected at Mr. May is Managing Director, Operations &
the October 7, 1997 Client Services of ALPS and ADI. Mr. May
1625 Broadway meeting of the Board of joined ALPS in 1995 as a Controller. Mr. May
Suite 2200 Trustees. was an auditor with Deloitte & Touche LLP in
Denver, CO 80202 their Denver office. Because of his positions
with ALPS and ADI, Mr. May is deemed an
affiliate of the Trust as defined under the
1940 Act. Mr. May is currently Treasurer of
Financial Investors Variable Insurance Trust,
Reaves Utility Income Fund, and First Funds
Trust.
Traci A. Thelen, (31) Secretary Traci A. Thelen was Ms. Thelen is the General Counsel of ALPS and
elected as Secretary at ADI. Ms. Thelen joined ALPS and ADI in October
1625 Broadway the June 11, 2002 meeting 1999 as Associate Counsel. Prior to that,
Suite 2200 of the Board of Trustees. Ms. Thelen did contract work for various law
Denver, CO 80202 firms in Boulder, Colorado. Because of her
positions with ALPS and ADI, Ms. Thelen is
deemed an affiliate of the Trust as defined
under the 1940 Act. Ms. Thelen is currently
Secretary of First Funds Trust, Financial
Investors Variable Insurance Trust, Reaves
Utility Income Fund, and Westcore Trust.
INDEPENDENT TRUSTEES
Mary K. Anstine, (63) Trustee Mary K. Anstine was President/Chief Executive Officer, HealthONE
elected at a special Alliance, Denver, Colorado; Former Executive
1625 Broadway meeting of shareholders Vice President, First Interstate Bank of
Suite 2200 held on March 21, 1997 and Denver. Ms. Anstine is currently a Director of
Denver, CO 80202 oversees 7 portfolios in the Trust of Colorado, Trustee of the Denver
fund complex. Area Council of the Boy Scouts of America, a
Director of the Junior Achievement Board and
the Colorado Uplift Board, and a member of the
Advisory Boards for the Girl Scouts Mile Hi
Council and the Hospice of Metro Denver. Ms.
Anstine is a Trustee of Financial Investors
Variable Insurance Trust, and Reaves Utility
Income Fund. Formerly, Ms. Anstine served as a
Director of ALPS Distributors, Inc., from
October 1995 to December 1996; Director of
HealthONE; a member of the American Bankers
Association Trust Executive Committee; and
Director of the Center for Dispute Resolution.
</Table>
33
<Page>
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND
POSITION(S) HELD NUMBER OF PORTFOLIOS PRINCIPAL OCCUPATION DURING THE PAST 5
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN YEARS* AND OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ---------------------------------------------------------------------------------------------------------------------------
Edwin B. Crowder, (72) Trustee Edwin B. Crowder was Mr. Crowder currently operates a marketing
elected at a special concern with operations in the U. S. and Latin
1625 Broadway meeting of shareholders America. He has previously engaged in business
Suite 2200 held on March 21, 1997 pursuits in the restaurant, oil and gas
Denver, CO 80202 and oversees 7 portfolios drilling, and real estate development
in fund complex. industries. Mr. Crowder is a former Director
of Athletics and Head Football Coach at the
University of Colorado.
Robert E. Lee, (68) Trustee Robert E. Lee was Mr. Lee has been a Director of Storage
appointed as a Trustee at Technology Corporation since 1989 and of
1625 Broadway the December 15, 1998, Equitable of Iowa since 1981. Mr. Lee was the
Suite 2200 meeting of the Board of Executive Director of The Denver Foundation
Denver, CO 80202 Trustees and oversees 7 from 1989 to 1996, and is currently the
portfolios in fund Executive Director of Emeritus. Mr. Lee is
complex. also a Director of Meredith Capital
Corporation and Source Capital Corporation.
Mr. Lee is a Trustee of the Financial
Investors Variable Insurance Trust and Reaves
Utility Income Fund.
John R. Moran, Jr., (73) Trustee John R. Moran was elected Mr. Moran is President of The Colorado Trust,
at a special meeting of a private foundation serving the health and
1625 Broadway shareholders held on March hospital community in the State of Colorado.
Suite 2200 21, 1997 and oversees 7 An attorney, Mr. Moran was formerly a partner
Denver, CO 80202 portfolios in fund complex. with the firm of Kutak Rock & Campbell in
Denver, Colorado and a member of the Colorado
House of Representatives. Currently, Mr. Moran
is a member of the Board of Directors and
Treasurer of Grantmakers in Health; a Director
of the Conference of Southwest Foundations; a
member of the Treasurer's Office Investment
Advisory Committee for the University of
Colorado; a Trustee of the Robert J. Kutak
Foundation, Financial Investors Variable
Insurance Trust; Director of the Colorado
Wildlife Heritage Foundation; and a member of
the Alumni Council of the University of Denver
College of Law.
</Table>
* Except as otherwise indicated, each individual has held the office shown or
other offices in the same company for the last five years.
34
<Page>
FUND PROXY VOTING POLICIES & PROCEDURES (UNAUDITED)
Fund policies and procedures used in determining how to vote proxies
relating to portfolio securities is available without a charge, upon request, by
contacting Aristata Funds at 800.644.8595 or www.aristata.com and on the
Commission's website at http://www.sec.gov.
SHAREHOLDER TAX INFORMATION (UNAUDITED)
During the year ended April 30, 2004, 100% of the dividends paid by the
Aristata Colorado Quality Tax-Exempt Fund from net investment income should be
treated as tax-exempt dividends and 99.83% of the dividends paid by the Aristata
Equity Fund from net investment income qualify for the corporate dividends
received deduction. For the calendar year ending December 31, 2004, it is
estimated that 100% of the dividends paid by the Aristata Equity Fund will be
Qualifying Dividend Income.
35
<Page>
Item 2. CODE OF ETHICS
(a) The Registrant, as of the end of the period covered by the report, has
adopted a code of ethics that applies to the Registrant's principal
executive officer, principal financial officer, principal accounting
officer or controller or any persons performing similar functions on
behalf of the Registrant.
(b) Not applicable.
(c) During the period covered by this report, no amendments were made to
the provisions of the code of ethics adopted in 2(a) above.
(d) During the period covered by this report, no implicit or explicit
waivers to the provisions of the code of ethics adopted in 2(a) above
were granted.
(e) Not applicable.
(f) The Registrant's Code of Ethics is attached as an Exhibit hereto.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the Registrant has determined that the Registrant has
at least one audit committee financial expert serving on its audit committee.
The Board of Trustees has designated Robert E. Lee as the Registrant's "audit
committee financial expert." Mr. Lee is "independent" as defined in paragraph
(a)(2) of Item 3 to Form N-CSR.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) AUDIT FEES: For the Registrant's fiscal years ended April 30, 2004
and April 30, 2003, the aggregate fees billed for professional
services rendered by the principal accountant for the audit of the
Registrant's annual financial statements were $64,000 and $55,300,
respectively.
(b) AUDIT-RELATED FEES: For the Registrant's fiscal years ended April
30, 2004 and April 30, 2003, the aggregate fees billed for
professional services rendered by the principal accountant for the
17f-2 audit of the Registrant's annual financial statements were
$14,400 and $4,000, respectively.
(c) TAX FEES: For the Registrant's fiscal years ended April 30, 2004 and
April 30, 2003, aggregate fees of $41,250 and $28,200, respectively,
were billed for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. The
fiscal year 2004 and 2003 tax fees were for services for dividend
calculation, excise tax preparation and tax return preparation.
<Page>
(d) ALL OTHER FEES: For the Registrant's fiscal years ended April 30,
2004 and April 30, 2003, no fees were billed to Registrant by the
principal accountant for services other than the services reported
in paragraphs (a) through (c) of this item.
(e)(1) AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES: All services
to be performed by the Registrant's principal auditors must be
pre-approved by the Registrant's audit committee.
(e)(2) No services described in paragraphs (b) through (d) were approved
pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Not applicable.
(h) Not applicable.
Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
N/A
Item 6. SCHEDULE OF INVESTMENTS
Schedule of Investments is included as part of the Report to Stockholders filed
under Item 1 of this Form.
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
N/A
Item 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANIES
N/A
Item 9. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS
The Board of Trustees has not yet adopted procedures by which shareholders
can recommend nominees to the Board of Trustees.
Item 10. CONTROLS AND PROCEDURES
(a) The registrant's principal executive officer and principal financial
officer have concluded that the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940, as amended) are effective based on their
<Page>
evaluation of these controls and procedures as of a date within 90
days of the filing date of this document.
(b) There were no significant changes in the registrant's internal
control over financial reporting during Registrant's second fiscal
half-year that has materially affected, or reasonably likely to
materially affect, the Registrant's internal control over financial
reporting.
Item 11. EXHIBITS
(a)(1) The code of ethics that applies to the Registrant's principal executive
officer and principal financial officer is attached hereto as EX-11.A.1.
(a)(2) The certifications required by Rule 30a-2 of the Investment Company Act
of 1940, as amended, and Sections 302 of the Sarbanes-Oxley Act of 2002
are attached hereto as Ex-99.Cert.
(a)(3) N/A
(b) A Certification for the Registrant's Principal Executive Officer and
Principal Financial Officer, as required by Rule 30a-2(b) of the
Investment Company Act of 1940, as amended, and Sections 906 of the
Sarbanes-Oxley Act of 2002 are attached hereto as Ex99.906.Cert.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
FINANCIAL INVESTORS TRUST
By: /s/Edmund Burke
---------------
Edmund Burke
President
Date: July 7, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/Edmund Burke
---------------
Edmund Burke
President
Date: July 7, 2004
By: /s/Jeremy O. May
----------------
Jeremy O. May
Treasurer
Date: July 7, 2004