JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
BALANCED
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN BALANCED FUND
--------------------------------------------------------------------------------
OBJECTIVE
Balanced Fund's objective is to maximize total return (capital appreciation plus
income).
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Balanced Fund invests in a balanced portfolio of stocks and bonds. The mix of
securities will change based on existing and anticipated market conditions. Over
the long term, the fund's asset mix is likely to average approximately 60%
equity securities and 40% debt securities.
Under normal market conditions, the equity securities portion of the fund's
portfolio will be invested primarily (at least 75% of the total assets) in
common stocks of companies that cover a broad range of industries and that have
market capitalizations of at least $5 billion at the time of purchase. The
fund's advisor will utilize separate value and growth strategies in selecting
securities for this portion of the fund. Although no limits will be placed on
the fund's equity holdings invested in the value strategy versus the growth
strategy, the advisor expects that, over the long-term, the fund will be
invested in an equal mix of value and growth securities.
In implementing the value strategy for this portion of the fund, the advisor
will select securities that it believes: are undervalued relative to other
securities in the same industry or market; exhibit good or improving
fundamentals; and exhibit an identifiable catalyst that could close the gap
between market value and fair value over the next one to two years. In
implementing the growth strategy for this portion of the fund, the advisor will
select securities that exhibit the potential for superior growth based on
factors such as: above average growth in revenue and earnings; strong
competitive position; strong management; and sound financial condition.
Up to 25% of the equity portion of the fund may be invested in securities of
foreign issuers that are either listed on a U.S. stock exchange or represented
by American Depositary Receipts.
Under normal market conditions, the debt securities portion of the fund's
portfolio will be comprised of securities such as: U.S. government securities
(securities issued or guaranteed by the U.S. government or its agencies or
instrumentalities) including zero coupon bonds; mortgage- and asset-backed
securities; and corporate debt obligations.
In selecting debt securities for the fund, the advisor uses a "top-down"
approach, that begins with the formulation of a general economic outlook.
Following this, various sectors and industries are analyzed and selected for
investment. This is followed by the selection of individual securities.
The fund's debt securities will be rated investment grade at the time or
purchase or, if unrated, determined to be of comparable quality by the fund's
advisor. At least 65% of these securities will be either U.S. government
securities or securities that have received at least an A or equivalent rating.
The fund may invest up to 15% of the debt portion of its portfolio in foreign
securities payable in United States dollars.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks and other
institutions. It also may invest up to 25% of total assets in dollar roll
transactions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISK OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry or sector of the market.
In addition, value stocks, growth stocks, and/or large-capitalization stocks may
underperform the market as a whole.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability or
diplomatic developments that could adversely affect the securities.
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities, or the other party to a contract (such as a
securities lending agreement) may default on its obligations.
CALL RISK. During periods of falling interest rates, a bond issuer may "call" --
or repay -- its high-yielding bonds before their maturity date. The fund would
then be forced to invest the unanticipated proceeds at lower interest rates,
resulting in a decline in the fund's income.
RISKS OF MORTGAGE- AND ASSET-BACKED SECURITIES. Falling interest rates could
cause faster than expected prepayments of the obligations underlying mortgage-
and asset-backed securities, which the fund would have to invest at lower
interest rates. On the other hand, rising interest rates could cause prepayments
of the obligations to decrease, extending the life of mortgage- and asset-backed
securities with lower interest rates.
RISKS OF DOLLAR ROLL TRANSACTIONS. The use of mortgage dollar rolls could
increase the volatility of the fund's share price. It could also diminish the
fund's investment performance if the advisor does not predict mortgage
prepayments and interest rates correctly.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Balanced Fund
<PAGE>
FIRST AMERICAN BALANCED FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations below provide you with information on the fund's volatility
and performance. Of course, past performance does not guarantee future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measures of market performance. However,
because Class C shares have not been offered for a full calendar year, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
12.31% 0.79% 26.51% 17.76% 16.98% 10.47% 3.10%
----------------------------------------------------------------
1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: June 30, 1997 10.08%
Worst Quarter:
Quarter ending: September 30, 1998 (5.78)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since Inception Since Inception
AS OF 12/31/99 Date To Date(2) One Year Five Years (Class A) (Class B)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balanced Fund (Class A) 12/14/92 (5.01)% (2.31)% 13.47% 11.41% N/A
---------------------------------------------------------------------------------------------------------------------------
Balanced Fund (Class B) 8/15/94 (5.17)% (2.19)% 13.61% N/A 12.56%
---------------------------------------------------------------------------------------------------------------------------
Standard & Poor's 500 Composite Index(3) (0.43)% 21.04% 28.55% 21.52% 25.95%
---------------------------------------------------------------------------------------------------------------------------
Lehman Gov't/Corp Bond Index(4) 4.16% (2.15)% 7.60% 6.42% 6.88%
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 0.21%.
(2) Year to date performance for the fund (with sales charges reflected) and the
indices is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index of large capitalization stocks. The since inception
performance of the indexes for Class A and Class B shares is calculated from
12/31/92 and 8/31/94, respectively.
(4) An unmanaged index of Treasury securities, other securities issued or
guaranteed by the U.S. government or its agencies or instrumentalities, and
investment grade corporate debt securities. The since inception performance
of the indexes for Class A and Class B shares is calculated from 12/31/92
and 8/31/94, respectively.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-----------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.21% 0.21% 0.21%
TOTAL 1.16% 1.91% 1.91%
-----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999, were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.09)% (0.11)% (0.10)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.05% 1.80% 1.81%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.05%, 1.80%, AND 1.80%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 637 $ 694 $ 194 $ 392 $ 292
3 years $ 874 $1,000 $ 600 $ 694 $ 694
5 years $1,130 $1,232 $1,032 $1,121 $1,121
10 years $1,860 $2,038 $2,038 $2,310 $2,310
</TABLE>
2 FUND PROFILE - First American Balanced Fund
<PAGE>
FIRST AMERICAN BALANCED FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund's investments are managed by a team of persons associated with First
American Asset Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B and Class C shares, the fees and expenses
may vary (as set forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPB(R)
3 FUND PROFILE - First American Balanced Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
EQUITY INCOME
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN EQUITY INCOME FUND
--------------------------------------------------------------------------------
OBJECTIVE
Equity Income Fund's objective is long-term growth of capital and income.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Equity Income Fund invests primarily (at least
65% of its total assets) in equity securities of companies which the fund's
investment advisor believes are characterized by:
* the ability to pay above average dividends.
* the ability to finance expected growth.
* strong management.
The fund will attempt to maintain a dividend that will grow quickly enough to
keep pace with inflation. As a result, higher-yielding equity securities will
generally represent the core holdings of the fund. However, the fund also may
invest in lower-yielding, higher growth equity securities if the advisor
believes they will help balance the portfolio. The fund's equity securities
include common stocks and preferred stocks, and corporate debt securities which
are convertible into common stocks. All securities held by the fund will provide
current income at the time of purchase.
The fund invests in convertible debt securities in pursuit of both long-term
growth of capital and income. The securities' conversion features provide
long-term growth potential, while interest payments on the securities provide
income. The fund may invest in convertible debt securities without regard to
their ratings, and therefore may hold convertible debt securities which are
rated lower than investment grade.
Up to 25% of the fund's total assets may be invested in securities of foreign
issuers which are either listed on a United States stock exchange or represented
by American Depositary Receipts.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semi-annual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry, or sector of the market.
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities, or the other party to a contract (such as a
securities lending agreement) may default on its obligations.
RISKS OF NON-INVESTMENT GRADE SECURITIES. The fund may invest in securities
which are rated lower than investment grade. These securities, which are
commonly called "high-yield" securities or "junk bonds," generally have more
volatile prices and carry more risk to principal than investment grade
securities. High yield securities may be more susceptible to real or perceived
adverse economic conditions than investment grade securities. In addition, the
secondary trading market may be less liquid.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability or
diplomatic developments that could adversely affect the securities.
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Equity Income Fund
<PAGE>
FIRST AMERICAN EQUITY INCOME FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2)
[BAR CHART]
4.70% 3.85% 22.73% 19.80% 27.53% 15.68% 3.86%
----------------------------------------------------------------
1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: June 30, 1997 11.95%
Worst Quarter:
Quarter ending: September 30, 1999 (8.67)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since Inception Since Inception
AS OF 12/31/99(1) Date To Date(3) One Year Five Years (Class A) (Class B)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Equity Income Fund (Class A) 12/18/92 (6.35)% (1.59)% 16.38% 12.78% N/A
---------------------------------------------------------------------------------------------------------------------------
Equity Income Fund (Class B) 8/15/94 (6.42)% (1.53)% 16.63% N/A 15.60%
---------------------------------------------------------------------------------------------------------------------------
Standard & Poor's 500 Composite Index(4) (0.43)% 21.04% 28.55% 21.52% 25.95%
---------------------------------------------------------------------------------------------------------------------------
Lehman Gov't/Corp Bond Index(5) 4.16% (2.15)% 7.60% 6.42% 6.88%
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) First American Asset Management became the investment advisor of the Equity
Income Fund on 3/25/94. Prior to the change, Boulevard Bank was the
investment advisor of the fund.
(2) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was (1.15)%.
(3) Year to date performance for the fund (with sales charges reflected) and the
indices is for the period from 1/1/2000 to 6/30/2000.
(4) An unmanaged index of large capitalization stocks. The since inception
performance of the indexes for Class A and Class B shares is calculated from
3/31/94 and 8/31/94, respectively.
(5) An unmanaged index of Treasury securities, other securities issued or
guaranteed by the U.S. government or its agencies or instrumentalities, and
investment grade corporate debt securities. The since inception performance
of the indexes for Class A and Class B shares is calculated from 12/31/92
and 8/31/94, respectively.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-------------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.18% 0.18% 0.18%
TOTAL 1.13% 1.88% 1.88%
-------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.13)% (0.13)% (0.12)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.00% 1.75% 1.76%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.00%, 1.75%, AND 1.75%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 634 $ 691 $ 191 $ 389 $ 289
3 years $ 865 $ 991 $ 591 $ 685 $ 685
5 years $1,115 $1,216 $1,016 $1,106 $1,106
10 years $1,827 $2,005 $2,005 $2,279 $2,279
</TABLE>
2 FUND PROFILE - First American Equity Income Fund
<PAGE>
FIRST AMERICAN EQUITY INCOME FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B and Class C shares, the fees and expenses
may vary (as set forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPEIF(R)
3 FUND PROFILE - First American Equity Income Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
EQUITY INDEX
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN EQUITY INDEX FUND
--------------------------------------------------------------------------------
OBJECTIVE
Equity Index Fund's objective is to provide investment results that correspond
to the performance of the Standard & Poor's 500 Composite Index (S&P 500).
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Equity Index Fund invests at least 90% of its
total assets in common stocks included in the S&P 500. The S&P 500 is a
market-value weighted index consisting of 500 stocks chosen for market size,
liquidity and industry group representation.
The fund's advisor believes that the fund's objective can best be achieved by
investing in common stocks of approximately 90% to 100% of the issues included
in the S&P 500, depending on the size of the fund. A computer program is used to
identify which stocks should be purchased or sold in order to replicate, as
closely as possible, the composition of the S&P 500.
Because the fund may not always hold all of the stocks included in the S&P 500,
and because the fund has expenses and the index does not, the fund will not
duplicate the index's performance precisely. However, the fund's advisor
believes there should be a close correlation between the fund's performance and
that of the S&P 500 in both rising and falling markets.
The fund will attempt to achieve a correlation between the performance of its
portfolio and that of the S&P 500 of at least 95%, without taking into account
expenses of the fund. A perfect correlation would be indicated by a figure of
100%, which would be achieved if the fund's net asset value, including the value
of its dividends and capital gains distributions, increased or decreased in
exact proportion to changes in the S&P 500. If the fund is unable to achieve a
correlation of 95% over time, the fund's board of directors will consider
alternative strategies for the fund.
The fund also may invest up to 10% of its total assets in stock index futures
contracts, options on stock indices, options on stock index futures and index
participation contracts based on the S&P 500. The fund makes these investments
to maintain the liquidity needed to meet redemption requests, to increase the
level of fund assets devoted to replicating the composition of the S&P 500 and
to reduce transaction costs.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may affect the market as a whole, or
they may affect only a particular company, industry or sector of the market.
FAILURE TO MATCH PERFORMANCE OF S&P 500. The fund's ability to replicate the
performance of the S&P 500 may be affected by, among other things, changes in
securities markets, the manner in which Standard & Poor's calculates the
performance of the S&P 500, the amount and timing of cash flows into and out of
the fund, commissions, sales charges (if any) and other expenses.
RISKS OF OPTIONS AND FUTURES. The fund will suffer a loss in connection with its
use of options, futures contracts and options on futures contracts if securities
prices do not move in the direction anticipated by the fund's advisor when
entering into the options or the futures contracts.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Equity Index Fund
<PAGE>
FIRST AMERICAN EQUITY INDEX FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
9.80% 1.02% 36.63% 22.13% 32.51% 28.24% 20.12%
----------------------------------------------------------------
1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1998 21.30%
Worst Quarter:
Quarter ending: September 30, 1998 (9.96)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since Inception Since Inception
AS OF 12/31/99 Date To Date(2) One Year Five Years (Class A) (Class B)
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Equity Index Fund (Class A) 12/14/92 (6.17)% 13.79% 26.41% 19.92% N/A
-------------------------------------------------------------------------------------------------------------------------
Equity Index Fund (Class B) 8/15/94 (6.30)% 14.21% 26.69% N/A 24.69%
-------------------------------------------------------------------------------------------------------------------------
Standard & Poor's 500 Composite Index(3) (0.43)% 21.04% 28.55% 21.52% 25.95%
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was (0.96)%.
(2) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index of large capitalization stocks. The since inception
performance of the index is calculated from the month end following the
inception of the respective class of shares. The since inception performance
of the index for Class A and Class B shares is calculated from 12/31/92 and
8/31/94, respectively.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-----------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.19% 0.19% 0.19%
TOTAL 1.14% 1.89% 1.89%
-----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.54)% (0.54)% (0.54)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.60% 1.35% 1.35%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 0.60%, 1.35%, AND 1.35%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 635 $ 692 $ 192 $ 390 $ 290
3 years $ 868 $ 994 $ 594 $ 688 $ 688
5 years $1,120 $1,221 $1,021 $1,111 $1,111
10 years $1,838 $2,016 $2,016 $2,289 $2,289
</TABLE>
2 FUND PROFILE - First American Equity Index Fund
<PAGE>
FIRST AMERICAN EQUITY INDEX FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B and Class C shares, the fees and expenses
may vary (as set forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPEINX(R)
3 FUND PROFILE - First American Equity Index Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
LARGE CAP
GROWTH
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN LARGE CAP GROWTH FUND
--------------------------------------------------------------------------------
OBJECTIVE
Large Cap Growth Fund's objective is long-term growth of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Large Cap Growth Fund invests primarily (at
least 75% of its total assets) in common stocks of companies that have market
capitalizations of at least $5 billion at the time of purchase. The advisor will
select companies that it believes exhibit the potential for superior growth
based on factors such as:
* Above average growth in revenue and earnings
* Strong competitive position
* Strong management
* Sound financial condition
Up to 25% of the fund's total assets may be invested in securities of foreign
issuers which are either listed on a United States stock exchange or represented
by American Depositary Receipts.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCK. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry, or sector of the market.
In addition, growth stocks and/or large-capitalization stocks may underperform
the market as a whole.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability or
diplomatic developments that could adversely affect the securities.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Large Cap Growth Fund
<PAGE>
FIRST AMERICAN LARGE CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2)
[BAR CHART]
-2.15% -1.00% 32.43% 22.93% 21.42% 23.56% 37.76%
----------------------------------------------------------------
1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1999 22.65%
Worst Quarter:
Quarter ending: September 30, 1998 (14.22)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since Inception Since Inception
AS OF 12/31/99(1) Date To Date(3) One Year Five Years (Class A) (Class B)
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Large Cap Growth Fund (Class A) 12/18/92 (1.89)% 30.50% 26.10% 17.00% N/A
-------------------------------------------------------------------------------------------------------------------------
Large Cap Growth Fund (Class B) 8/15/94 (1.83)% 31.64% 26.37% N/A 25.38%
-------------------------------------------------------------------------------------------------------------------------
Standard & Poor's 500 Composite Index(4) (0.43)% 21.04% 28.55% 21.52% 25.95%
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) First American Asset Management became the investment advisor of the Large
Cap Growth Fund on 3/25/94. Prior to the change, Boulevard Bank was the
investment advisor of the fund.
(2) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 3.72%.
(3) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(4) An unmanaged index of large capitalization stocks. The since inception
performance of the index is calculated from the month end following the
inception of the respective class of shares. The since inception performance
of the index for Class A and Class B shares is calculated from 12/31/92 and
8/31/94, respectively.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-----------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.19% 0.19% 0.19%
TOTAL 1.14% 1.89% 1.89%
-----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.09)% (0.09)% (0.09)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.05% 1.80% 1.80%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.05%, 1.80%, AND 1.80%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 635 $ 692 $ 192 $ 390 $ 290
3 years $ 868 $ 994 $ 594 $ 688 $ 688
5 years $1,120 $1,221 $1,021 $1,111 $1,111
10 years $1,838 $2,016 $2,016 $2,289 $2,289
</TABLE>
2 FUND PROFILE - First American Large Cap Growth Fund
<PAGE>
FIRST AMERICAN LARGE CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B, and Class C shares, the fees and expenses
may vary (as set forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. Because of its investment objective and strategy, distributions for
the fund are expected to consist primarily of capital gains.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPLCG(R)
3 FUND PROFILE - First American Large Cap Growth Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
LARGE CAP
VALUE
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN LARGE CAP VALUE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Large Cap Value Fund's primary objective is capital appreciation. Current income
is a secondary objective of the fund.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Large Cap Value Fund invests primarily (at least
75% of its total assets) in common stocks of companies that cover a broad range
of industries and that have market capitalizations of at least $5 billion at the
time of purchase. In selecting stocks, the fund's advisor invests in securities
that it believes:
* are undervalued relative to other securities in the same industry or market.
* exhibit good or improving fundamentals.
* exhibit an identifiable catalyst that could close the gap between market value
and fair value over the next one to two years.
Up to 25% of the fund's total assets may be invested in securities of foreign
issuers which are either listed on a United States stock exchange or represented
by American Depositary Receipts.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry, or sector of the market.
In addition, value stocks and/or large-capitalization stocks may underperform
the market as a whole.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability or
diplomatic developments that could adversely affect the securities.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Large Cap Value Fund
<PAGE>
FIRST AMERICAN LARGE CAP VALUE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
-2.01% 21.46% 7.98% 15.10% 4.12% 31.94% 29.10% 22.41% 9.71% 7.91%
--------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1998 16.55%
Worst Quarter:
Quarter ending: September 30, 1998 (13.91)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Ten Years Since Inception
AS OF 12/31/99 Date To Date(2) One Year Five Years (Class A) (Class B)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Large Cap Value Fund (Class A) 12/22/87 (10.97)% 2.26% 18.52% 13.67% N/A
---------------------------------------------------------------------------------------------------------------------
Large Cap Value Fund (Class B) 8/15/94 (11.06)% 2.35% 18.71% N/A 17.27%
---------------------------------------------------------------------------------------------------------------------
Standard & Poor's 500 Composite Index(3) (0.43)% 21.04% 28.55% 18.20% 25.95%
---------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was (6.06)%.
(2) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index of large capitalization stocks. The since inception
performance of the index is calculated from the month end following the
inception of the Class B shares. The since inception performance of the
index for Class B shares is calculated from 8/31/94.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-----------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.20% 0.20% 0.20%
TOTAL 1.15% 1.90% 1.90%
-----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.10)% (0.10)% (0.10)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.05% 1.80% 1.80%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.05%, 1.80%, AND 1.80%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 636 $ 693 $ 193 $ 391 $ 291
3 years $ 871 $ 997 $ 597 $ 691 $ 691
5 years $1,125 $1,226 $1,026 $1,116 $1,116
10 years $1,849 $2,027 $2,027 $2,300 $2,300
</TABLE>
2 FUND PROFILE - First American Large Cap Value Fund
<PAGE>
FIRST AMERICAN LARGE CAP VALUE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B, and Class C shares, the fees and expenses
may vary (as set forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. Because of its investment objective and strategy, distributions for
the fund are expected to consist primarily of capital gains.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPLCV(R)
3 FUND PROFILE - First American Large Cap Value Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
EQUITY INDEX
FUND
U.S. BANCORP
401(k) SAVINGS PLAN
CLASS Y SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN EQUITY INDEX FUND
--------------------------------------------------------------------------------
OBJECTIVE
Equity Index Fund's objective is to provide investment results that correspond
to the performance of the Standard & Poor's 500 Composite Index (S&P 500).
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Equity Index Fund invests at least 90% of its
total assets in common stocks included in the S&P 500. The S&P 500 is a
market-value weighted index consisting of 500 stocks chosen for market size,
liquidity, and industry representation.
The fund's advisor believes that the fund's objective can best be achieved by
investing in common stocks of approximately 90% to 100% of the issues included
in the S&P 500, depending on the size of the fund. A computer program is used to
identify which stocks should be purchased or sold in order to replicate, as
closely as possible, the composition of the S&P 500.
Because the fund may not always hold all of the stocks included in the S&P 500,
and because the fund has expenses and the index does not, the fund will not
duplicate the index's performance precisely. However, the fund's advisor
believes there should be a close correlation between the fund's performance and
that of the S&P 500 in both rising and falling markets.
The fund will attempt to achieve a correlation between the performance of its
portfolio and that of the S&P 500 of at least 95%, without taking into account
expenses of the fund. A perfect correlation would be indicated by a figure of
100%, which would be achieved if the fund's net asset value, including the value
of its dividends and capital gains distributions, increased or decreased in
exact proportion to changes in the S&P 500. If the fund is unable to achieve a
correlation of 95% over time, the fund's board of directors will consider
alternative strategies for the fund.
The fund also may invest up to 10% of its total assets in stock index futures
contracts, options on stock indices, options on stock index futures, and index
participation contracts based on the S&P 500. The fund makes these investments
to maintain the liquidity needed to meet redemption requests, to increase the
level of fund assets devoted to replicating the composition of the S&P 500 and
to reduce transaction costs.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may affect the market as a whole, or
they may affect only a particular company, industry, or sector of the market.
FAILURE TO MATCH PERFORMANCE OF S&P 500. The fund's ability to replicate the
performance of the S&P 500 may be affected by, among other things, changes in
securities markets, the manner in which Standard & Poor's calculates the
performance of the S&P 500, the amount and timing of cash flows into and out of
the fund, commissions, sales charges (if any), and other expenses.
RISKS OF OPTIONS AND FUTURES. The fund will suffer a loss in connection with its
use of options, futures contracts, and options on futures contracts if
securities prices do not move in the direction anticipated by the fund's advisor
when entering into the options or the futures contracts.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Equity Index Fund
<PAGE>
FIRST AMERICAN EQUITY INDEX FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations below provide you with information on the fund's volatility
and performance. Of course, past performance does not guarantee future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. The table compares the fund's performance over different time
periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects fund expenses; the benchmark
is unmanaged and has no expenses. Both the chart and the table assume that all
distributions have been reinvested.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
36.97% 22.44% 32.84% 28.56% 20.41%
----------------------------------------------
1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1998 21.39%
Worst Quarter:
Quarter ending: September 30, 1998 (9.91)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99 Date To Date(2) One Year Five Years Inception
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Equity Index Fund 2/4/94 (0.87)% 20.41% 28.09% 23.34%
-------------------------------------------------------------------------------------------------
Standard & Poor's 500 Composite Index(3) (0.43)% 21.04% 28.55% 24.17%
-------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return for the period from 1/1/2000 to 6/30/2000 was (0.87)%.
(2) Year to date performance for the fund and the index is for the period from
1/1/2000 to 6/30/2000.
(3) An unmanaged index of large capitalization stocks. The since inception
performance of the index is calculated from 2/28/94.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
The fund does not impose any sales charges (loads) or other fees when you buy,
sell or exchange shares. However, when you hold shares of the fund you
indirectly pay a portion of the fund's operating expenses. These expenses are
deducted from fund assets. The figures below are based on expenses during the
fiscal year ended September 30, 1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) None
MAXIMUM DEFERRED SALES CHARGE (LOAD) None
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees None
Other Expenses 0.19%
TOTAL 0.89%
--------------------------------------------------------------------------------
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
Waiver of Fund Expenses (0.54)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.35%
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 0.35%. FEE WAIVERS MAY BE DISCONTINUED AT
ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 91
3 years $ 284
5 years $ 493
10 years $1,096
2 FUND PROFILE - First American Equity Index Fund
<PAGE>
FIRST AMERICAN EQUITY INDEX FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
REVIEWING INVESTMENT OPTIONS
You may review and make changes to your investment options by calling U-Connect
at 1-800-806-7009 or logging on to the U.S. Bancorp 401(k) Savings Plan Web site
at www.rsweb.com/60587.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Distributions may be requested by calling U-Connect at 1-800-806-7009.
Distributions from the U.S. Bancorp 401(k) Savings Plan are generally taxable
and subject to withholding in the current year unless the participant requests a
direct rollover to an IRA or another qualified plan. Certain distributions such
as distributions from an employee's after-tax account or, in some circumstances,
portions of distributions made after a participant has attained age 70 1/2 may
not be rolled over to an IRA or another qualified plan. Generally, an employee's
distribution will be taxed at ordinary income tax rates. Distributions made
before a participant attains age 59 1/2 are subject to a 10% penalty tax unless
an exception applies.
Participants in the U.S. Bancorp 401(k) Savings Plan will not be taxed on pretax
earnings reductions or on employer contributions at the time such amounts are
allocated to their accounts. Pretax contributions, however, are subject to tax
under FICA and FUTA. Participants will not be taxed on the income earned on any
securities in the trust fund until they are withdrawn or distributed under the
Plan.
To inquire about or initiate loans against your 401(k) Savings Plan, call
U-Connect at 1-800-806-7009 or log on to the Internet Web site at
www.rsweb.com/60587.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPEINX(I)
3 FUND PROFILE - First American Equity Index Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
LARGE CAP
GROWTH
FUND
U.S. BANCORP
401(k) SAVINGS PLAN
CLASS Y SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN LARGE CAP GROWTH FUND
--------------------------------------------------------------------------------
OBJECTIVE
Large Cap Growth Fund's objective is long-term growth of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Large Cap Growth Fund invests primarily (at
least 75% of its total assets) in common stocks of companies that have market
capitalizations of at least $5 billion at the time of purchase. The advisor will
select companies that it believes exhibit the potential for superior growth
based on factors such as:
* Above average growth in revenue and earnings
* Strong competitive position
* Strong management
* Sound financial condition
Up to 25% of the fund's total assets may be invested in securities of foreign
issuers which are either listed on a United States stock exchange or represented
by American Depositary Receipts.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry, or sector of the market.
In addition, growth stocks and/or large-capitalization stocks may underperform
the market as a whole.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability or
diplomatic developments that could adversely affect the securities.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Large Cap Growth Fund
<PAGE>
FIRST AMERICAN LARGE CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations below provide you with information on the fund's volatility
and performance. Of course, past performance does not guarantee future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. The table compares the fund's performance over different time
periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects fund expenses; the benchmark
is unmanaged and has no expenses. Both the chart and the table assume that all
distributions have been reinvested.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
32.78% 23.23% 21.61% 24.05% 38.04%
----------------------------------------------
1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1999 22.71%
Worst Quarter:
Quarter ending: September 30, 1998 (14.09)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99 Date To Date(2) One Year Five Years Inception
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Large Cap Growth Fund 8/2/94 3.69% 38.04% 27.79% 26.38%
-------------------------------------------------------------------------------------------------
Standard & Poor's 500 Composite Index(3) (0.43)% 21.04% 28.55% 25.95%
-------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return for the period from 1/1/2000 to 6/30/2000 was 3.69%.
(2) Year to date performance for the fund and the index is for the period from
1/1/2000 to 6/30/2000.
(3) An unmanaged index of large capitalization stocks. The since inception
performance of each index is calculated from 8/31/94.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
The fund does not impose any sales charges (loads) or other fees when you buy,
sell or exchange shares. However, when you hold shares of the fund you
indirectly pay a portion of the fund's operating expenses. These expenses are
deducted from fund assets. The figures below are based on expenses during the
fiscal year ended September 30, 1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) None
MAXIMUM DEFERRED SALES CHARGE (LOAD) None
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees None
Other Expenses 0.19%
TOTAL 0.89%
--------------------------------------------------------------------------------
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
Waiver of Fund Expenses (0.09)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.80%
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 0.80%. FEE WAIVERS MAY BE DISCONTINUED AT
ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 91
3 years $ 284
5 years $ 493
10 years $1,096
2 FUND PROFILE - First American Large Cap Growth Fund
<PAGE>
FIRST AMERICAN LARGE CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
REVIEWING INVESTMENT OPTIONS
You may review and make changes to your investment
options by calling U-Connect at 1-800-806-7009 or logging
on to the U.S. Bancorp 401(k) Savings Plan Web site at www.rsweb.com/60587.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Distributions may be requested by calling U-Connect at 1-800-806-7009.
Distributions from the U.S. Bancorp 401(k) Savings Plan are generally taxable
and subject to withholding in the current year unless the participant requests a
direct rollover to an IRA or another qualified plan. Certain distributions such
as distributions from an employee's after-tax account or, in some circumstances,
portions of distributions made after a participant has attained age 70 1/2 may
not be rolled over to an IRA or another qualified plan. Generally, an employee's
distribution will be taxed at ordinary income tax rates. Distributions made
before a participant attains age 59 1/2 are subject to a 10% penalty tax unless
an exception applies.
Participants in the U.S. Bancorp 401(k) Savings Plan will not be taxed on pretax
earnings reductions or on employer contributions at the time such amounts are
allocated to their accounts. Pretax contributions, however, are subject to tax
under FICA and FUTA. Participants will not be taxed on the income earned on any
securities in the trust fund until they are withdrawn or distributed under the
Plan.
To inquire about or initiate loans against your 401(k) Savings Plan, call
U-Connect at 1-800-806-7009 or log on to the Internet Web site at
www.rsweb.com/60587.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPLCG(I)
3 FUND PROFILE - First American Large Cap Growth Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
LARGE CAP
VALUE
FUND
U.S. BANCORP
401(k) SAVINGS PLAN
CLASS Y SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN LARGE CAP VALUE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Large Cap Value Fund's primary objective is capital appreciation. Current income
is a secondary objective of the fund.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Large Cap Value Fund invests primarily (at least
75% of its total assets) in common stocks of companies that cover a broad range
of industries and that have market capitalizations of at least $5 billion at the
time of purchase. In selecting stocks, the fund's advisor invests in securities
that it believes:
* are undervalued relative to other securities in the same industry or market.
* exhibit good or improving fundamentals.
* exhibit an identifiable catalyst that could close the gap between market value
and fair value over the next one to two years.
Up to 25% of the fund's total assets may be invested in securities of foreign
issuers which are either listed on a United States stock exchange or represented
by American Depositary Receipts.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry, or sector of the market.
In addition, value stocks and/or large-capitalization stocks may underperform
the market as a whole.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability or
diplomatic developments that could adversely affect the securities.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Large Cap Value Fund
<PAGE>
FIRST AMERICAN LARGE CAP VALUE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations below provide you with information on the fund's volatility
and performance. Of course, past performance does not guarantee future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. The table compares the fund's performance over different time
periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects fund expenses; the benchmark
is unmanaged and has no expenses. Both the chart and the table assume that all
distributions have been reinvested.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
32.23% 29.47% 22.80% 9.99% 8.20%
----------------------------------------------
1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1998 16.64%
Worst Quarter:
Quarter ending: September 30, 1998 (13.85)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99 Date To Date(2) One Year Five Years Inception
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Large Cap Value Fund 2/4/94 (5.98)% 8.20% 20.13% 17.17%
-------------------------------------------------------------------------------------------------
Standard & Poor's 500 Composite Index(3) (0.43)% 21.04% 28.55% 24.17%
-------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return for the period from 1/1/2000 to 6/30/2000 was (5.98)%.
(2) Year to date performance for the fund and the index is for the period from
1/1/2000 to 6/30/2000.
(3) An unmanaged index of large capitalization stocks. The since inception
performance of each index is calculated from 2/28/94.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
The fund does not impose any sales charges (loads) or other fees when you buy,
sell or exchange shares. However, when you hold shares of the fund you
indirectly pay a portion of the fund's operating expenses. These expenses are
deducted from fund assets. The figures below are based on expenses during the
fiscal year ended September 30, 1999.(1)
SHAREHOLDER FEES
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) None
MAXIMUM DEFERRED SALES CHARGE (LOAD) None
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees None
Other Expenses 0.20%
TOTAL 0.90%
--------------------------------------------------------------------------------
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
Waiver of Fund Expenses (0.10)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.80%
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 0.80%. FEE WAIVERS MAY BE DISCONTINUED AT
ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 92
3 years $ 287
5 years $ 498
10 years $1,108
2 FUND PROFILE - First American Large Cap Value Fund
<PAGE>
FIRST AMERICAN LARGE CAP VALUE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
REVIEWING INVESTMENT OPTIONS
You may review and make changes to your investment
options by calling U-Connect at 1-800-806-7009 or logging
on to the U.S. Bancorp 401(k) Savings Plan Web site at www.rsweb.com/60587.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Distributions may be requested by calling U-Connect at 1-800-806-7009.
Distributions from the U.S. Bancorp 401(k) Savings Plan are generally taxable
and subject to withholding in the current year unless the participant requests a
direct rollover to an IRA or another qualified plan. Certain distributions such
as distributions from an employee's after-tax account or, in some circumstances,
portions of distributions made after a participant has attained age 70 1/2 may
not be rolled over to an IRA or another qualified plan. Generally, an employee's
distribution will be taxed at ordinary income tax rates. Distributions made
before a participant attains age 59 1/2 are subject to a 10% penalty tax unless
an exception applies.
Participants in the U.S. Bancorp 401(k) Savings Plan will not be taxed on pretax
earnings reductions or on employer contributions at the time such amounts are
allocated to their accounts. Pretax contributions, however, are subject to tax
under FICA and FUTA. Participants will not be taxed on the income earned on any
securities in the trust fund until they are withdrawn or distributed under the
Plan.
To inquire about or initiate loans against your 401(k) Savings Plan, call
U-Connect at 1-800-806-7009 or log on to the Internet Web site at
www.rsweb.com/60587.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPLCV(I)
3 FUND PROFILE - First American Large Cap Value Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
MID CAP
GROWTH
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN MID CAP GROWTH FUND
--------------------------------------------------------------------------------
OBJECTIVE
Mid Cap Growth Fund has an objective of growth of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Mid Cap Growth Fund invests primarily (at least
75% of total assets) in common stocks of mid-capitalization companies, defined
as companies that have market capitalizations at the time of purchase within the
range of market capitalizations of companies constituting the Russell Midcap
Index. This index measures the performance of the 800 smallest companies in the
Russell 1000 Index (which is made up of the 1,000 largest U.S. companies based
on total market capitalization). As of the date of this prospectus, market
capitalizations of companies in the Russell Midcap Index ranged from
approximately $223 million to $37 billion.
The advisor will select companies that it believes exhibit the potential for
superior growth based on factors such as:
* Above average growth in revenue and earnings
* Strong competitive position
* Strong management
* Sound financial condition
Up to 25% of the fund's total assets may be invested in securities of foreign
issuers which are either listed on a United States stock exchange or represented
by American Depositary Receipts.
Under certain market conditions, the fund may frequently invest in companies at
the time of their initial public offering (IPO). By virtue of its size and
institutional nature, the advisor may have greater access than individual
investors have to IPOs, including access to so-called "hot issues" which are
generally traded in the aftermarket at prices in excess of the IPO price. IPOs
will frequently be sold within 12 months of purchase which may result in
increased short-term capital gains.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry, or sector of the market.
In addition, growth stocks and/or mid-cap stocks may underperform the market as
a whole.
RISKS OF MID-CAP STOCKS. While stocks of mid-cap companies may be slightly less
volatile than those of small-cap companies, they still involve substantial risk
and their prices may be subject to more abrupt or erratic movements than those
of larger, more established companies or the market averages in general.
RISKS OF IPOs. Companies involved in IPOs generally have limited operating
histories, and prospects for future profitability are uncertain. Prices of IPOs
may also be unstable due to the absence of a prior public market, the small
number of shares available for trading, and limited investor information. IPOs
will frequently be sold within 12 months of purchase. This may result in
increased short-term capital gains, which will be taxable to shareholders as
ordinary income.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability, or
diplomatic developments that could adversely affect the securities.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Mid Cap Growth Fund
<PAGE>
FIRST AMERICAN MID CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2),(3)
[BAR CHART]
65.53% 7.23% 18.46% -4.90% 39.35% 11.84% 23.40% 10.58% 54.59%
--------------------------------------------------------------------------
1991 1992 1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1999 47.75%
Worst Quarter:
Quarter ending: September 30, 1998 (19.34)%
<TABLE>
<CAPTION>
Since Since
AVERAGE ANNUAL TOTAL RETURNS Inception Year Inception Inception
AS OF 12/31/99(1),(2) Date To Date(4) One Year Five Years (Class A) (Class B)
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Mid Cap Growth Fund (Class A) 4/23/90 6.41% 46.50% 25.51% 20.26% N/A
--------------------------------------------------------------------------------------------------------
Mid Cap Growth Fund (Class B) 8/7/98 6.93% 48.41% N/A N/A 39.15%
--------------------------------------------------------------------------------------------------------
Russell Midcap Index(5) 5.12% 18.23% 21.86% 17.52% 34.92%
--------------------------------------------------------------------------------------------------------
</TABLE>
(1) On 8/7/98, the Mid Cap Growth Fund became the successor by merger to the
Piper Emerging Growth Fund, a series of Piper Funds Inc. Prior to the
merger, the Mid Cap Growth Fund had no assets or liabilities. Performance
presented prior to 8/7/98, represents that of the Piper Emerging Growth
Fund.
(2) Mid Cap Growth Fund's recent returns were higher due in part to its strategy
of investing in IPOs in a period favorable for IPO investing. Of course,
such favorable returns involve accepting the risk of volatility, and there
is no assurance that the fund's future investment in IPOs will have the same
effect on performance as it did recently.
(3) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 12.33%.
(4) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(5) An unmanaged index comprised of the 800 smallest securities in the Russell
1000 Index, which represent approximately 35% of the total market
capitalization of the investable U.S. equity market. The since inception
performance of the index for Class A and Class B shares is calculated from
4/30/90 and 8/31/98, respectively.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD) AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD) AS A % OF ORIGINAL PURCHASE PRICE OR
REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.24% 0.28% 0.28%
TOTAL 1.19% 1.98% 1.98%
--------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown because of
voluntary fee waivers by the fund's distributor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.05)% (0.09)% (0.09)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.14% 1.89% 1.89%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.15%, 1.90%, AND 1.90%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 640 $ 701 $ 201 $ 399 $ 299
3 years $ 883 $1,021 $ 621 $ 715 $ 715
5 years $1,145 $1,268 $1,068 $1,157 $1,157
10 years $1,892 $2,102 $2,102 $2,383 $2,383
</TABLE>
2 FUND PROFILE - First American Mid Cap Growth Fund
<PAGE>
FIRST AMERICAN MID CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B, and Class C shares, the fees and expenses
may vary (as set forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from a fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of a fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. Because of its investment objective and strategy, distributions for
the fund are expected to consist primarily of capital gains.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPMCG(R)
3 FUND PROFILE - First American Mid Cap Growth Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
MID CAP
VALUE
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN MID CAP VALUE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Mid Cap Value Fund has an objective of capital appreciation.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Mid Cap Value Fund invests primarily (at least
75% of total assets) in common stocks of mid-capitalization companies, defined
as companies that have market capitalizations at the time of purchase within the
range of market capitalizations of companies constituting the Russell Midcap
Index. This index measures the performance of the 800 smallest companies in the
Russell 1000 Index (which is made up of the 1,000 largest U.S. companies based
on total market capitalization). As of the date of this prospectus, market
capitalizations of companies in the Russell Midcap Index ranged from
approximately $223 million to $37 billion.
In selecting stocks, the fund's advisor invests in securities it believes:
* are undervalued relative to other securities in the same industry or market.
* exhibit good or improving fundamentals.
* exhibit an identifiable catalyst that could close the gap between market value
and fair value over the next one to two years.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry or sector of the market.
In addition, value stocks and/or mid-cap stocks may underperform the market as a
whole.
RISKS OF MID-CAP STOCKS. While stocks of mid-cap companies may be slightly less
volatile than those of small-cap companies, they still involve substantial risk
and their prices may be subject to more abrupt or erratic movements than those
of larger, more established companies or the market averages in general.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Mid Cap Value Fund
<PAGE>
FIRST AMERICAN MID CAP VALUE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
-6.82% 18.70% 19.33% 19.01% 6.72% 20.02% 31.94% 24.21% -13.24% -6.29%
--------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: June 30, 1997 17.97%
Worst Quarter:
Quarter ending: September 30, 1998 (30.80)%
<TABLE>
<CAPTION>
Since
AVERAGE ANNUAL TOTAL RETURNS Inception Year Ten Years Inception
AS OF 12/31/99 Date To Date(2) One Year Five Years (Class A) (Class B)
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Mid Cap Value Fund (Class A) 12/22/87 (4.72)% (11.23)% 8.67% 9.77% N/A
-------------------------------------------------------------------------------------------------------
Mid Cap Value Fund (Class B) 8/15/94 (4.73)% (11.62)% 8.80% N/A 8.33%
-------------------------------------------------------------------------------------------------------
Russell Midcap Index(3) 5.12% 18.23% 21.86% 15.92% 19.25%
-------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 0.55%.
(2) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index comprised of the 800 smallest securities in the Russell
1000 Index, which represent approximately 35% of the total market
capitalization of the investable U.S. equity market. The since inception
performance of the index for Class B shares is calculated from 8/31/94.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD) AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD) AS A % OF ORIGINAL PURCHASE PRICE OR
REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
---------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.23% 0.23% 0.23%
TOTAL 1.18% 1.93% 1.93%
---------------------------------------------------------------------------------------------------------
</TABLE>
(1) The net expenses the fund actually paid after waivers for the fiscal year
ended September 30, 1999, were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.03)% (0.03)% (0.03)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.15% 1.90% 1.90%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.15%, 1.90%, AND 1.90%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 639 $ 696 $ 196 $ 394 $ 294
3 years $ 880 $1,006 $ 596 $ 700 $ 700
5 years $1,140 $1,242 $1,042 $1,131 $1,131
10 years $1,882 $2,059 $2,059 $2,331 $2,331
</TABLE>
2 FUND PROFILE - First American Mid Cap Value Fund
<PAGE>
FIRST AMERICAN MID CAP VALUE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B, and Class C shares, the fees and expenses
may vary (as set forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. Because of its investment objective and strategy, distributions for
the fund are expected to consist primarily of capital gains.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPMCV(R)
3 FUND PROFILE - First American Mid Cap Value Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
SMALL CAP
GROWTH
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
OBJECTIVE
Small Cap Growth Fund has an objective of growth of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Small Cap Growth Fund invests primarily (at
least 75% of total assets) in common stocks of small-capitalization companies,
defined as companies that have market capitalizations at the time of purchase
within the range of market capitalizations of companies constituting the Russell
2000 Index. This index measures the performance of the 2,000 smallest companies
in the Russell 3000 Index (which is made up of the 3,000 largest U.S. companies
based on total market capitalization). As of the date of this prospectus, market
capitalizations of companies in the Russell 2000 Index ranged from approximately
$11 million to $13 billion.
The advisor will select companies that it believes exhibit the potential for
superior growth based on factors such as:
* Above average growth in revenue and earnings
* Strong competitive position
* Strong management
* Sound financial condition
Up to 25% of the fund's total assets may be invested in securities of foreign
issuers which are either listed on a United States stock exchange or represented
by American Depositary Receipts.
Under certain market conditions, the fund may frequently invest in companies at
the time of their initial public offering (IPO). By virtue of its size and
institutional nature, the advisor may have greater access than individual
investors have to IPOs, including access to so-called "hot issues" which are
generally traded in the aftermarket at prices in excess of the IPO price. IPOs
will frequently be sold within 12 months of purchase which may result in
increased short-term capital gains.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry or sector of the market.
In addition, growth stocks and/or stocks of small-capitalization companies may
underperform the market as a whole.
RISKS OF SMALL-CAP STOCKS. Stocks of small-capitalization companies involve
substantial risk. These stocks historically have experienced greater price
volatility than stocks of larger-capitalization companies, and they may be
expected to do so in the future.
RISKS OF IPOs. Companies involved in IPOs generally have limited operating
histories, and prospects for future profitability are uncertain. Prices of IPOs
may also be unstable due to the absence of a prior public market, the small
number of shares available for trading, and limited investor information. IPOs
will frequently be sold within 12 months of purchase. This may result in
increased short-term capital gains, which will be taxable to shareholders as
ordinary income.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability, or
diplomatic developments that could adversely affect the securities.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Small Cap Growth Fund
<PAGE>
FIRST AMERICAN SMALL CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2),(3)
[BAR CHART]
-0.42% 40.55% 11.47% 10.98% -2.44% 20.20% 11.68 29.23% 7.73% 66.76%
--------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1999 51.34%
Worst Quarter:
Quarter ending: September 30, 1998 (22.14)%
<TABLE>
<CAPTION>
Since
AVERAGE ANNUAL TOTAL RETURNS Inception Year Ten Years Inception
AS OF 12/31/99(1),(2) Date To Date(4) One Year Five Years (Class A) (Class B)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Small Cap Growth Fund (Class A) 3/16/87 (0.25)% 58.04% 24.18% 17.43% N/A
---------------------------------------------------------------------------------------------------------
Small Cap Growth Fund (Class B) 7/31/98 (0.03)% 60.39% N/A N/A 46.51%
---------------------------------------------------------------------------------------------------------
Russell 2000 Index(5) 3.04% 21.26% 16.69% 13.40% 15.43%
---------------------------------------------------------------------------------------------------------
</TABLE>
(1) On 7/31/98, the Small Cap Growth Fund became the successor by merger to the
Piper Small Company Growth Fund, a series of Piper Funds Inc. Prior to the
merger, the Small Cap Growth Fund had no assets or liabilities. Performance
presented prior to 7/31/98 represents that of the Piper Small Company Growth
Fund. On 9/21/96, shareholders approved a change in the Fund's investment
objective from high total investment return consistent with prudent
investment risk to long-term capital appreciation. In connection with this
change, the Fund's investment policies were revised.
(2) Small Cap Growth Fund's recent returns were higher due in part to its
strategy of investing in IPOs in a period favorable for IPO investing. Of
course, such favorable returns involve accepting the risk of volatility, and
there is no assurance that the fund's future investment in IPOs will have
the same effect on performance as it did recently.
(3) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 5.30%.
(4) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(5) An unmanaged index comprised of the smallest 2000 companies in the Russell
3000 Index. The latter index is composed of 3000 large U.S. companies
representing approximately 98% of the investable U.S. equity market. The
since inception performance of the index for Class B shares is calculated
from 7/31/98.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD) AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD) AS A % OF ORIGINAL PURCHASE PRICE OR
REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
---------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.20% 0.21% 0.21%
TOTAL 1.15% 1.91% 1.91%
---------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown because of
voluntary fee waivers by the fund's distributor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.01)% (0.01)% (0.01)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.14% 1.90% 1.90%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.15%, 1.90%, AND 1.90%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 636 $ 694 $ 194 $ 392 $ 292
3 years $ 871 $1,000 $ 600 $ 694 $ 694
5 years $1,125 $1,232 $1,032 $1,121 $1,121
10 years $1,849 $2,035 $2,035 $2,310 $2,310
</TABLE>
2 FUND PROFILE - First American Small Cap Growth Fund
<PAGE>
FIRST AMERICAN SMALL CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B, and Class C shares, the fees and expenses
may vary (as set forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. Because of its investment objective and strategy, distributions for
the fund are expected to consist primarily of capital gains.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPSCG(R)
3 FUND PROFILE - First American Small Cap Growth Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
SMALL CAP
VALUE
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN SMALL CAP VALUE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Small Cap Value Fund has an objective of capital appreciation.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Small Cap Value Fund invests primarily (at least
75% of total assets) in common stocks of small-capitalization companies, defined
as companies that have market capitalizations at the time of purchase within the
range of market capitalizations of companies constituting the Russell 2000
Index. This index measures the performance of the 2,000 smallest companies in
the Russell 3000 Index (which is made up of the 3,000 largest U.S. companies
based on total market capitalization). As of the date of this prospectus, market
capitalizations of companies in the Russell 2000 Index ranged from approximately
$11 million to $13 billion.
In selecting stocks, the fund's advisor invests in securities it believes:
* are undervalued relative to other securities in the same industry or market.
* exhibit good or improving fundamentals.
* exhibit an identifiable catalyst that could close the gap between market value
and fair value over the next one to two years.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry or sector of the market.
In addition, value stocks and/or stocks of small-capitalization companies may
underperform the market as a whole.
RISKS OF SMALL-CAP STOCKS. Stocks of small-capitalization companies involve
substantial risk. These stocks historically have experienced greater price
volatility than stocks of larger-capitalization companies, and they may be
expected to do so in the future.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Small Cap Value Fund
<PAGE>
FIRST AMERICAN SMALL CAP VALUE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2)
[BAR CHART]
-13.72% 60.96% 26.50% 22.60% -0.33% 47.30% 20.07% 20.07% -8.47% 5.93%
-------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: March 31, 1991 33.49%
Worst Quarter:
Quarter ending: September 30, 1998 (23.21)%
<TABLE>
<CAPTION>
Ten Since
AVERAGE ANNUAL TOTAL RETURNS Inception Year Years Inception
AS OF 12/31/99(1) Date To Date(3) One Year Five Years (Class A) (Class B)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Small Cap Value Fund (Class A) 1/1/88 3.20% 0.35% 14.29% 15.39% N/A
---------------------------------------------------------------------------------------------------------
Small Cap Value Fund (Class B) 11/24/97 3.57% 0.10% N/A N/A (4.52)%
---------------------------------------------------------------------------------------------------------
Russell 2000 Index(4) 3.04% 21.26% 16.69% 13.40% 9.25%
---------------------------------------------------------------------------------------------------------
</TABLE>
(1) Performance prior to 8/1/94 is that of Small Company Value Trust Fund, a
predecessor collective trust fund. On 8/1/94, substantially all of the
assets of Small Company Value Trust Fund were transferred into Qualivest
Small Companies Value Fund, a mutual fund registered under the Investment
Company Act of 1940. On 11/21/97, First American Small Cap Value Fund became
the successor by merger to Qualivest Small Companies Value Fund. The
objectives, policies, and guidelines of the predecessor funds were, in all
material respects, identical to those of Small Cap Value Fund. Performance
is adjusted to reflect Small Cap Value Fund's Class A share fees and
expenses, before any fee waivers. Small Company Value Trust Fund was not
registered under the Investment Company Act of 1940 and therefore was not
subject to certain investment restrictions that might have adversely
affected performance.
(2) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 8.92%.
(3) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(4) An unmanaged index comprised of the smallest 2000 companies in the Russell
3000 Index. The latter index is composed of 3000 large U.S. companies
representing approximately 98% of the investable U.S. equity market. The
since inception performance of the index for Class B shares is calculated
from 11/30/97.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-----------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.19% 0.19% 0.19%
TOTAL 1.14% 1.89% 1.89%
-----------------------------------------------------------------------------------------------------------
</TABLE>
(1) The net expenses the fund actually paid after waivers for the fiscal year
ended September 30, 1999, were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.00)% (0.00)% (0.00)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.14% 1.89% 1.89%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.15%, 1.90%, AND 1.90%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 635 $ 692 $ 192 $ 390 $ 290
3 years $ 868 $ 994 $ 594 $ 688 $ 688
5 years $1,120 $1,221 $1,021 $1,111 $1,111
10 years $1,838 $2,016 $2,016 $2,289 $2,289
</TABLE>
2 FUND PROFILE - First American Small Cap Value Fund
<PAGE>
FIRST AMERICAN SMALL CAP VALUE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B, and Class C shares, the fees and expenses
may vary (as first forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. Because of its investment objective and strategy, distributions for
the fund are expected to consist primarily of capital gains.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPSCV(R)
3 FUND PROFILE - First American Small Cap Value Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
MID CAP
GROWTH
FUND
U.S. BANCORP
401(k) SAVINGS PLAN
CLASS Y SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN MID CAP GROWTH FUND
--------------------------------------------------------------------------------
OBJECTIVE
Mid Cap Growth Fund has an objective of growth of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Mid Cap Growth Fund invests primarily (at least
75% of total assets) in common stocks of mid capitalization companies, defined
as companies that have market capitalizations at the time of purchase within the
range of market capitalizations of companies constituting the Russell Midcap
Index. This index measures the performance of the 800 smallest companies in the
Russell 1000 Index (which is made up of the 1,000 largest U.S. companies based
on total market capitalization). As of the date of this prospectus, market
capitalizations of companies in the Russell Midcap Index ranged from
approximately $223 million to $37 billion.
The advisor will select companies that it believes exhibit the potential for
superior growth based on factors such as:
* Above average growth in revenue and earnings
* Strong competitive position
* Strong management
* Sound financial condition
Up to 25% of the fund's total assets may be invested in securities of foreign
issuers which are either listed on a United States stock exchange or represented
by American Depositary Receipts.
Under certain market conditions, the fund may frequently invest in companies at
the time of their initial public offering (IPO). By virtue of its size and
institutional nature, the advisor may have greater access than individual
investors have to IPOs, including access to so-called "hot issues" which are
generally traded in the aftermarket at prices in excess of the IPO price. IPOs
will frequently be sold within 12 months of purchase which may result in
increased short-term capital gains.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry, or sector of the market.
In addition, growth stocks and/or mid-cap stocks may underperform the market as
a whole.
RISKS OF MID-CAP STOCKS. While stocks of mid-cap companies may be slightly less
volatile than those of small-cap companies, they still involve substantial risk
and their prices may be subject to more abrupt or erratic movements than those
of larger, more established companies or the market averages in general.
RISKS OF IPOs. Companies involved in IPOs generally have limited operating
histories, and prospects for future profitability are uncertain. Prices of IPOs
may also be unstable due to the absence of a prior public market, the small
number of shares available for trading and limited investor information. IPOs
will frequently be sold within 12 months of purchase. This may result in
increased short-term capital gains, which will be taxable to shareholders as
ordinary income.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability, or
diplomatic developments that could adversely affect the securities.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Mid Cap Growth Fund
<PAGE>
FIRST AMERICAN MID CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations below provide you with information on the fund's volatility
and performance. Of course, past performance does not guarantee future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. The table compares the fund's performance over different time
periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects fund expenses; the benchmark
is unmanaged and has no expenses. Both the chart and the table assume that all
distributions have been reinvested.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2),(3)
[BAR CHART]
10.84% 55.02%
----------------
1998 1999
Best Quarter:
Quarter ending: December 31, 1999 47.87%
Worst Quarter:
Quarter ending: September 30, 1998 (19.31)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99(1),(2) Date To Date(4) One Year Inception
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mid Cap Growth Fund 2/18/97 12.44% 55.02% 29.01%
-------------------------------------------------------------------------------
Russell Midcap Index(5) 5.12% 18.23% 18.59%
-------------------------------------------------------------------------------
</TABLE>
(1) On 8/7/98, the Mid Cap Growth Fund became the successor by merger to the
Piper Emerging Growth Fund, a series of Piper Funds, Inc. Prior to the
merger, the First American Fund had no assets or liabilities. Performance
presented prior to 8/7/98 represents that of the Piper Emerging Growth Fund.
(2) Mid Cap Growth Fund's recent returns were higher due in part to its strategy
of investing in IPOs in a period favorable for IPO investing. Of course,
such favorable returns involve accepting the risk of volatility, and there
is no assurance that the fund's future investment in IPOs will have the same
effect on performance as it did recently.
(3) Total return for the period from 1/1/2000 to 6/30/2000 was 12.44%.
(4) Year to date performance for the fund and the index is for the period from
1/1/2000 to 6/30/2000.
(5) An unmanaged index comprised of the 800 smallest securities in the Russell
1000 Index, which represent approximately 35% of the total market
capitalization. The since inception performance of the index is calculated
from 2/28/97.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
The fund does not impose any sales charges (loads) or other fees when you buy,
sell or exchange shares. However, when you hold shares of the fund you
indirectly pay a portion of the fund's operating expenses. These expenses are
deducted from fund assets. The figures below are based on expenses during the
fiscal year ended September 30, 1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) None
MAXIMUM DEFERRED SALES CHARGE (LOAD) None
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees None
Other Expenses 0.26%
TOTAL 0.96%
--------------------------------------------------------------------------------
(1) The net expenses the fund actually paid after waivers for the fiscal year
ended September 30, 1999, were:
Waiver of Fund Expenses (0.07)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.89%
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 0.90%. FEE WAIVERS MAY BE DISCONTINUED AT
ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 98
3 years $ 306
5 years $ 531
10 years $1,178
2 FUND PROFILE - First American Mid Cap Growth Fund
<PAGE>
FIRST AMERICAN MID CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
REVIEWING INVESTMENT OPTIONS
You may review and make changes to your investment options by calling U-Connect
at 1-800-806-7009 or logging on to the U.S. Bancorp 401(k) Savings Plan Web site
at www.rsweb.com/60587.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Distributions may be requested by calling U-Connect at 1-800-806-7009.
Distributions from the U.S. Bancorp 401(k) Savings Plan are generally taxable
and subject to withholding in the current year unless the participant requests a
direct rollover to an IRA or another qualified plan. Certain distributions such
as distributions from an employee's after-tax account or, in some circumstances,
portions of distributions made after a participant has attained age 70 1/2 may
not be rolled over to an IRA or another qualified plan. Generally, an employee's
distribution will be taxed at ordinary income tax rates. Distributions made
before a participant attains age 59 1/2 are subject to a 10% penalty tax unless
an exception applies.
Participants in the U.S. Bancorp 401(k) Savings Plan will not be taxed on pretax
earnings reductions or on employer contributions at the time such amounts are
allocated to their accounts. Pretax contributions, however, are subject to tax
under FICA and FUTA. Participants will not be taxed on the income earned on any
securities in the trust fund until they are withdrawn or distributed under the
Plan.
To inquire about or initiate loans against your 401(k) Savings Plan, call
U-Connect at 1-800-806-7009 or log on to the Internet Web site at
www.rsweb.com/60587.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPMCG(I)
3 FUND PROFILE - First American Mid Cap Growth Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
MID CAP
VALUE
FUND
U.S. BANCORP
401(k) SAVINGS PLAN
CLASS Y SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN MID CAP VALUE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Mid Cap Value Fund has an objective of capital appreciation.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Mid Cap Value Fund invests primarily (at least
75% of total assets) in common stocks of mid-capitalization companies, defined
as companies that have market capitalizations at the time of purchase within the
range of market capitalizations of companies constituting the Russell Midcap
Index. This index measures the performance of the 800 smallest companies in the
Russell 1000 Index (which is made up of the 1,000 largest U.S. companies based
on total market capitalization). As of the date of this prospectus, market
capitalizations of companies in the Russell Midcap Index ranged from
approximately $223 million to $37 billion.
In selecting stocks, the fund's advisor invests in securities it believes:
* are undervalued relative to other securities in the same industry or market.
* exhibit good or improving fundamentals.
* exhibit an identifiable catalyst that could close the gap between market value
and fair value over the next one to two years.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry or sector of the market.
In addition, value stocks and/or mid-cap stocks may underperform the market as a
whole.
RISKS OF MID-CAP STOCKS. While stocks of mid-cap companies may be slightly less
volatile than those of small-cap companies, they still involve substantial risk
and their prices may be subject to more abrupt or erratic movements than those
of larger, more established companies or the market averages in general.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Mid Cap Value Fund
<PAGE>
FIRST AMERICAN MID CAP VALUE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations below provide you with information on the fund's volatility
and performance. Of course, past performance does not guarantee future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. The table compares the fund's performance over different time
periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects fund expenses; the benchmark
is unmanaged and has no expenses. Both the chart and the table assume that all
distributions have been reinvested.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
20.30% 32.34% 24.53% -12.96% -6.00
--------------------------------------------
1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: June 30, 1997 17.97%
Worst Quarter:
Quarter ending: September 30, 1998 (30.80)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99 Date To Date(2) One Year Five Years Inception
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Mid Cap Value Fund 2/4/94 0.72% (6.00)% 10.16% 9.01%
-------------------------------------------------------------------------------------------
Russell Midcap Index(3) 5.12% 18.23% 21.86% 17.76%
-------------------------------------------------------------------------------------------
</TABLE>
(1) Total return for the period from 1/1/2000 to 6/30/2000 was 0.72%.
(2) Year to date performance for the fund and the index is for the period from
1/1/2000 to 6/30/2000.
(3) An unmanaged index comprised of the 800 smallest securities in the Russell
1000 Index, which represent approximately 35% of the total market
capitalization of investable U.S. equity markets. The since inception
performance of the index is calculated from 2/28/94.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
The fund does not impose any sales charges (loads) or other fees when you buy,
sell or exchange shares. However, when you hold shares of the fund you
indirectly pay a portion of the fund's operating expenses. These expenses are
deducted from fund assets. The figures below are based on expenses during the
fiscal year ended September 30, 1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) None
MAXIMUM DEFERRED SALES CHARGE (LOAD) None
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees None
Other Expenses 0.23%
TOTAL 0.93%
--------------------------------------------------------------------------------
(1) The net expenses the fund actually paid after waivers for the fiscal year
ended September 30, 1999, were:
Waiver of Fund Expenses (0.03)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.90%
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 0.90%. FEE WAIVERS MAY BE DISCONTINUED AT
ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 95
3 years $ 296
5 years $ 515
10 years $1,143
2 FUND PROFILE - First American Mid Cap Value Fund
<PAGE>
FIRST AMERICAN MID CAP VALUE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
REVIEWING INVESTMENT OPTIONS
You may review and make changes to your investment options by calling U-Connect
at 1-800-806-7009 or logging on to the U.S. Bancorp 401(k) Savings Plan Web site
at www.rsweb.com/60587.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Distributions may be requested by calling U-Connect at 1-800-806-7009.
Distributions from the U.S. Bancorp 401(k) Savings Plan are generally taxable
and subject to withholding in the current year unless the participant requests a
direct rollover to an IRA or another qualified plan. Certain distributions such
as distributions from an employee's after-tax account or, in some circumstances,
portions of distributions made after a participant has attained age 70 1/2 may
not be rolled over to an IRA or another qualified plan. Generally, an employee's
distribution will be taxed at ordinary income tax rates. Distributions made
before a participant attains age 59 1/2 are subject to a 10% penalty tax unless
an exception applies.
Participants in the U.S. Bancorp 401(k) Savings Plan will not be taxed on pretax
earnings reductions or on employer contributions at the time such amounts are
allocated to their accounts. Pretax contributions, however, are subject to tax
under FICA and FUTA. Participants will not be taxed on the income earned on any
securities in the trust fund until they are withdrawn or distributed under the
Plan.
To inquire about or initiate loans against your 401(k) Savings Plan, call
U-Connect at 1-800-806-7009 or log on to the Internet Web site at
www.rsweb.com/60587.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPMCV(I)
3 FUND PROFILE - First American Mid Cap Value Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
SMALL CAP
GROWTH
FUND
U.S. BANCORP
401(k) SAVINGS PLAN
CLASS Y SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
OBJECTIVE
Small Cap Growth Fund has an objective of growth of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Small Cap Growth Fund invests primarily (at
least 75% of total assets) in common stocks of small capitalization companies,
defined as companies that have market capitalizations at the time of purchase
within the range of market capitalizations of companies constituting the Russell
2000 Index. This index measures the performance of the 2,000 smallest companies
in the Russell 3000 Index (which is made up of the 3,000 largest U.S. companies
based on total market capitalization). As of the date of this prospectus, market
capitalizations of companies in the Russell 2000 Index ranged from approximately
$11 million to $13 billion.
The advisor will select companies that it believes exhibit the potential for
superior growth based on factors such as:
* Above average growth in revenue and earnings
* Strong competitive position
* Strong management
* Sound financial condition
Up to 25% of the fund's total assets may be invested in securities of foreign
issuers which are either listed on a United States stock exchange or represented
by American Depositary Receipts.
Under certain market conditions, the fund may frequently invest in companies at
the time of their initial public offering (IPO). By virtue of its size and
institutional nature, the advisor may have greater access than individual
investors have to IPOs, including access to so-called "hot issues" which are
generally traded in the aftermarket at prices in excess of the IPO price. IPOs
will frequently be sold within 12 months of purchase which may result in
increased short-term capital gains.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry or sector of the market.
In addition, growth stocks and/or stocks of small-capitalization companies may
underperform the market as a whole.
RISKS OF SMALL-CAP STOCKS. Stocks of small-capitalization companies involve
substantial risk. These stocks historically have experienced greater price
volatility than stocks of larger-capitalization companies, and they may be
expected to do so in the future.
RISKS OF IPOs. Companies involved in IPOs generally have limited operating
histories, and prospects for future profitability are uncertain. Prices of IPOs
may also be unstable due to the absence of a prior public market, the small
number of shares available for trading, and limited investor information. IPOs
will frequently be sold within 12 months of purchase. This may result in
increased short-term capital gains, which will be taxable to shareholders as
ordinary income.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability, or
diplomatic developments that could adversely affect the securities.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Small Cap Growth Fund
<PAGE>
FIRST AMERICAN SMALL CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations below provide you with information on the fund's volatility
and performance. Of course, past performance does not guarantee future results.
The bar chart is intended to show you how performance of the fund's shares has
varied from year to year. However, because Class Y shares were first offered in
1998, only one calendar year of information is available. The table compares the
fund's performance over different time periods to that of the fund's benchmark
index, which is a broad measure of market performance. The fund's performance
reflects fund expenses; the benchmark is unmanaged and has no expenses. Both the
chart and the table assume that all distributions have been reinvested.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2)
[BAR CHART]
67.21%
----------
1999
Best Quarter:
Quarter ending: December 31, 1999 51.50%
Worst Quarter:
Quarter ending: September 30, 1998 (22.14)%
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99(1) Date To Date(3) One Year Inception
--------------------------------------------------------------------------------
Small Cap Growth Fund 7/31/98 5.50% 67.21% 51.08%
--------------------------------------------------------------------------------
Russell 2000 Index(4) 3.04% 21.26% 15.43%
--------------------------------------------------------------------------------
(1) Small Cap Growth Fund's recent returns were higher due in part to its
strategy of investing in IPOs in a period favorable for IPO investing. Of
course, such favorable returns involve accepting the risk of volatility, and
there is no assurance that the fund's future investment in IPOs will have
the same effect on performance as it did recently.
(2) Total return for the period from 1/1/2000 to 6/30/2000 was 5.50%.
(3) Year to date performance for the fund and the index is for the period from
1/1/2000 to 6/30/2000.
(4) An unmanaged index comprised of the smallest 2000 companies in the Russell
3000 Index. The latter index is composed of 3000 large U.S. companies
representing approximately 98% of the investable U.S. equity market. The
since inception performance for the index is calculated from 7/31/98.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
The fund does not impose any sales charges (loads) or other fees when you buy,
sell or exchange shares. However, when you hold shares of the fund you
indirectly pay a portion of the fund's operating expenses. These expenses are
deducted from fund assets. The figures below are based on expenses during the
fiscal year ended September 30, 1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) None
MAXIMUM DEFERRED SALES CHARGE (LOAD) None
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees None
Other Expenses 0.21%
TOTAL 0.91%
--------------------------------------------------------------------------------
(1) The net expenses the fund actually paid after waivers for the fiscal year
ended September 30, 1999, were:
Waiver of Fund Expenses (0.01)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.90%
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 0.90%. FEE WAIVERS MAY BE DISCONTINUED AT
ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 93
3 years $ 290
5 years $ 504
10 years $1,120
2 FUND PROFILE - First American Small Cap Growth Fund
<PAGE>
FIRST AMERICAN SMALL CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
REVIEWING INVESTMENT OPTIONS
You may review and make changes to your investment options by calling U-Connect
at 1-800-806-7009 or logging on to the U.S. Bancorp 401(k) Savings Plan Web site
at www.rsweb.com/60587.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Distributions may be requested by calling U-Connect at 1-800-806-7009.
Distributions from the U.S. Bancorp 401(k) Savings Plan are generally taxable
and subject to withholding in the current year unless the participant requests a
direct rollover to an IRA or another qualified plan. Certain distributions such
as distributions from an employee's after-tax account or, in some circumstances,
portions of distributions made after a participant has attained age 70 1/2 may
not be rolled over to an IRA or another qualified plan. Generally, an employee's
distribution will be taxed at ordinary income tax rates. Distributions made
before a participant attains age 59 1/2 are subject to a 10% penalty tax unless
an exception applies.
Participants in the U.S. Bancorp 401(k) Savings Plan will not be taxed on pretax
earnings reductions or on employer contributions at the time such amounts are
allocated to their accounts. Pretax contributions, however, are subject to tax
under FICA and FUTA. Participants will not be taxed on the income earned on any
securities in the trust fund until they are withdrawn or distributed under the
Plan.
To inquire about or initiate loans against your 401(k) Savings Plan, call
U-Connect at 1-800-806-7009 or log on to the Internet Web site at
www.rsweb.com/60587.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPSCG(I)
3 FUND PROFILE - First American Small Cap Growth Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
SMALL CAP
VALUE
FUND
U.S. BANCORP
401(k) SAVINGS PLAN
CLASS Y SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN SMALL CAP VALUE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Small Cap Value Fund has an objective of capital appreciation.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Small Cap Value Fund invests primarily (at least
75% of total assets) in common stocks of small capitalization companies, defined
as companies that have market capitalizations at the time of purchase within the
range of market capitalizations of companies constituting the Russell 2000
Index. This index measures the performance of the 2,000 smallest companies in
the Russell 3000 Index (which is made up of the 3,000 largest U.S. companies
based on total market capitalization). As of the date of this prospectus, market
capitalizations of companies in the Russell 2000 Index ranged from approximately
$11 million to $13 billion.
In selecting stocks, the fund's advisor invests in securities it believes:
* are undervalued relative to other securities in the same industry or market.
* exhibit good or improving fundamentals.
* exhibit an identifiable catalyst that could close the gap between market value
and fair value over the next one to two years.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry or sector of the market.
In addition, value stocks and/or stocks of small-capitalization companies may
underperform the market as a whole.
RISKS OF SMALL-CAP STOCKS. Stocks of small-capitalization companies involve
substantial risk. These stocks historically have experienced greater price
volatility than stocks of larger-capitalization companies, and they may be
expected to do so in the future.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Small Cap Value Fund
<PAGE>
FIRST AMERICAN SMALL CAP VALUE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations below provide you with information on the fund's volatility
and performance. Of course, past performance does not guarantee future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. The table compares the fund's performance over different time
periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects fund expenses; the benchmark
is unmanaged and has no expenses. Both the chart and the table assume that all
distributions have been reinvested.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2)
[BAR CHART]
-13.26% 61.17% 26.81% 22.80% 0.01% 47.33% 20.36% 20.37% -8.26% 6.24%
-------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: March 31, 1991 33.25%
Worst Quarter:
Quarter ending: September 30, 1998 (23.17)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year
AS OF 12/31/99(1) Date To Date(3) One Year Five Years Ten Years
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Small Cap Value Fund 1/1/88 5.50% 6.24% 15.78% 16.31%
------------------------------------------------------------------------------------------
Russell 2000 Index(4) 3.04% 21.26% 16.69% 13.40%
------------------------------------------------------------------------------------------
</TABLE>
(1) Performance prior to 8/1/94 is that of Small Company Value Trust Fund, a
predecessor collective trust fund. On 8/1/94, substantially all of the
assets of Small Company Value Trust Fund were transferred into Qualivest
Small Companies Value Fund, a mutual fund registered under the Investment
Company Act of 1940. On 11/21/97, First American Small Cap Value Fund became
the successor by merger to Qualivest Small Companies Value Fund. The
objectives, policies, and guidelines of the predecessor funds were, in all
material respects, identical to those of Small Cap Value Fund. Performance
is adjusted to reflect Small Cap Value Fund's Class Y share fees and
expenses, before any fee waivers. Small Company Value Trust Fund was not
registered under the Investment Company Act of 1940 and therefore was not
subject to certain investment restrictions that might have adversely
affected performance.
(2) Total return for the period from 1/1/2000 to 6/30/2000 was 5.50%.
(3) Year to date performance for the fund and the index is for the period from
1/1/2000 to 6/30/2000.
(4) An unmanaged index comprised of the smallest 2000 companies in the Russell
3000 Index. The latter index is composed of 3000 large U.S. companies
representing approximately 98% of the investable U.S. equity market. The
since inception performance for the index is calculated from 8/31/94.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
The fund does not impose any sales charges (loads) or other fees when you buy,
sell or exchange shares. However, when you hold shares of the fund you
indirectly pay a portion of the fund's operating expenses. These expenses are
deducted from fund assets. The figures below are based on expenses during the
fiscal year ended September 30, 1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) None
MAXIMUM DEFERRED SALES CHARGE (LOAD) None
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees None
Other Expenses 0.19%
TOTAL 0.89%
--------------------------------------------------------------------------------
(1) The net expenses the fund actually paid after waivers for the fiscal year
ended September 30, 1999, were:
Waiver of Fund Expenses 0.00%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.89%
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 0.90%. FEE WAIVERS MAY BE DISCONTINUED AT
ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 91
3 years $ 284
5 years $ 493
10 years $1,096
2 FUND PROFILE - First American Small Cap Value Fund
<PAGE>
FIRST AMERICAN SMALL CAP VALUE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
REVIEWING INVESTMENT OPTIONS
You may review and make changes to your investment
options by calling U-Connect at 1-800-806-7009 or logging
on to the U.S. Bancorp 401(k) Savings Plan Web site at www.rsweb.com/60587.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Distributions may be requested by calling U-Connect at 1-800-806-7009.
Distributions from the U.S. Bancorp 401(k) Savings Plan are generally taxable
and subject to withholding in the current year unless the participant requests a
direct rollover to an IRA or another qualified plan. Certain distributions such
as distributions from an employee's after-tax account or, in some circumstances,
portions of distributions made after a participant has attained age 70 1/2 may
not be rolled over to an IRA or another qualified plan. Generally, an employee's
distribution will be taxed at ordinary income tax rates. Distributions made
before a participant attains age 59 1/2 are subject to a 10% penalty tax unless
an exception applies.
Participants in the U.S. Bancorp 401(k) Savings Plan will not be taxed on pretax
earnings reductions or on employer contributions at the time such amounts are
allocated to their accounts. Pretax contributions, however, are subject to tax
under FICA and FUTA. Participants will not be taxed on the income earned on any
securities in the trust fund until they are withdrawn or distributed under the
Plan.
To inquire about or initiate loans against your 401(k) Savings Plan, call
U-Connect at 1-800-806-7009 or log on to the Internet Web site at
www.rsweb.com/60587.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPSCV(I)
3 FUND PROFILE - First American Small Cap Value Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
EMERGING
MARKETS
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN EMERGING MARKETS FUND
--------------------------------------------------------------------------------
OBJECTIVE
Emerging Markets Fund has an objective of long-term growth of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Emerging Markets Fund invests primarily (at
least 65% of its total assets) in equity securities from the world's emerging
markets. Normally, the fund will invest in securities traded in at least six
foreign countries.
A country is considered to have an "emerging market" if it has a relatively low
gross national product per capita compared to the world's major economies and
the potential for rapid economic growth. Countries with emerging markets
include: those that have an emerging stock market (as defined by the
International Financial Corporation); those with low- to middle-income economies
(according to the World Bank); and those listed in World Bank publications as
"developing."
In choosing investments for the fund, the fund's sub-advisor generally places
primary emphasis on country selection. This is followed by the selection of
industries or sectors within or across countries and the selection of individual
stocks within those industries or sectors. The fund is not subject to any
restrictions on the size of the companies in which it invests and it may invest
in smaller capitalization companies.
Equity securities in which the fund invests include common and preferred stock.
In addition, the fund may invest in securities representing underlying
international securities, such as American Depository Receipts and European
Depository Receipts, and in securities of other investment companies.
In order to hedge against adverse movements in currency exchange rates, the fund
may enter into forward foreign currency exchange contracts.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF EQUITY SECURITIES. Equity securities may decline significantly in price
over short or extended periods of time. Price changes may occur in the world
market as a whole, or they may occur in only a particular country, company,
industry, or sector of the world market.
RISKS OF INTERNATIONAL INVESTING. International investing involves risks not
typically associated with domestic investing. Because of these risks, and
because of the sub-advisor's ability to invest substantial portions of the
fund's assets in a small number of countries, the fund may be subject to greater
volatility than mutual funds that invest principally in domestic securities.
Risks of international investing include adverse currency fluctuations,
potential political and economic instability, limited liquidity and volatile
prices of non-U.S. securities, limited availability of information regarding
non-U.S. companies, investment and repatriation restrictions, and foreign
taxation.
RISKS OF EMERGING MARKETS. The risks of international investing are particularly
significant in emerging markets. Investing in emerging markets generally
involves exposure to economic structures that are less diverse and mature and to
political systems that are less stable than those of developed countries. In
addition, issuers in emerging markets typically are subject to a greater degree
of change in earnings and business prospects than are companies in developed
markets.
RISKS OF SMALLER CAPITALIZATION COMPANIES. Stocks of smaller capitalization
companies involve substantial risk and their prices may be subject to more
abrupt or erratic movements than those of larger, more established companies or
of market averages in general.
RISKS OF FOREIGN CURRENCY HEDGING TRANSACTIONS. If the sub-advisor's forecast of
exchange rate movements is incorrect, the fund may realize losses on its foreign
currency transactions. In addition, the fund's hedging transactions may prevent
the fund from realizing the benefits of a favorable change in the value of
foreign currencies.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Emerging Markets Fund
<PAGE>
FIRST AMERICAN EMERGING MARKETS FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2)
[BAR CHART]
-18.10% -21.77% 29.31% -1.27% -30.08% 60.16%
---------------------------------------------------
1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1999 49.04%
Worst Quarter:
Quarter ending: March 31, 1995 (30.83)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since Inception Since Inception
AS OF 12/31/99(1) Date To Date(3) One Year Five Years (Class A) (Class B)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Emerging Markets Fund (Class A) 11/9/93 (12.86)% 51.73% 1.17% (0.67)% N/A
------------------------------------------------------------------------------------------------------------------------
Emerging Markets Fund (Class B) 8/7/98 (12.98)% 54.24% N/A N/A 22.30%
------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Capital International
Emerging Markets Free Index(4) (7.99)% 66.41% 2.00% 2.94% 73.70%
------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) On 8/7/98, the Emerging Markets Fund became the successor by merger to the
Piper Emerging Markets Growth Fund. Prior to the merger, the First American
Fund had no assets or liabilities. Performance presented from 6/21/96 to
8/7/98, is that of the Emerging Markets Growth Fund, a series of Piper
Global Funds Inc. for which Edinburgh Fund Managers acted as sub-advisor.
Performance presented prior to 6/21/96, is that of the Hercules Latin
American Value Fund, series of Hercules Funds, Inc. for which Banker's Trust
Company acted as sub-advisor.
(2) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was (8.03)%.
(3) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(4) An unmanaged index of securities from emerging markets that are open to
foreign investors. The since inception performance of the index for Class A
and Class B shares is calculated from 11/30/93 and 8/31/98, respectively.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-----------------------------------------------------------------------------------------------------------
Management Fees 1.25% 1.25% 1.25%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.52% 0.47% 0.47%(4)
TOTAL 2.02% 2.72% 2.72%
-----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.32)% (0.27)% (0.27)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.70% 2.45% 2.45%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.70%, 2.45%, AND 2.45%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
(4) "Other Expenses" are based on estimated amounts for the current fiscal year.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 719 $ 775 $ 275 $ 472 $ 372
3 years $1,125 $1,244 $ 844 $ 936 $ 936
5 years $1,556 $1,640 $1,440 $1,525 $1,525
10 years $2,750 $2,883 $2,883 $3,121 $3,121
</TABLE>
2 FUND PROFILE - First American Emerging Markets Fund
<PAGE>
FIRST AMERICAN EMERGING MARKETS FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
Marvin & Palmer Associates (Marvin & Palmer) is paid a portion of the advisory
fee to sub-advise the fund. A team of persons associated with Marvin & Palmer
manages the fund's day to day investments. As of December 31, 1999, the
sub-advisor managed a total of approximately $14 billion in investments.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B, and Class C shares, the fees and expenses
may vary (as first forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends and capital gains from the
fund's net investment income, if any, are declared and paid annually. For most
investors, fund dividends and distributions are considered taxable whether they
are reinvested or taken in cash (unless your investment is in an IRA or other
tax-advantaged account). Dividends from the fund's net investment income and
short-term capital gains are taxable as ordinary income. Distributions of the
fund's long-term capital gains are taxable as long-term capital gains,
regardless of how long you have held your shares.
The fund may be required to pay withholding and other taxes imposed by foreign
countries. If the fund has more than 50% of its total assets invested in
securities of foreign corporations at the end of its taxable year, it may make
an election that will permit you either to claim a foreign tax credit with
respect to foreign taxes paid by the fund or to deduct those amounts as an
itemized deduction on your tax return. If the fund makes this election, you will
be notified and provided with sufficient information to calculate the amount you
may deduct as foreign taxes paid or your foreign tax credit.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPEM(R)
3 FUND PROFILE - First American Emerging Markets Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
INTERNATIONAL
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN INTERNATIONAL FUND
--------------------------------------------------------------------------------
OBJECTIVE
International Fund has an objective of long-term growth of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, International Fund invests primarily (at least
65% of its total assets) in equity securities that trade in markets other than
the United States. These securities generally are issued by companies that are
domiciled in countries other than the United States or that derive at least 50%
of either their revenues or their pre-tax income from activities outside of the
United States. Normally, the fund will invest in securities traded in at least
three foreign countries.
In choosing investments for the fund, the fund's sub-advisor generally places
primary emphasis on country selection. This is followed by the selection of
industries or sectors within or across countries and the selection of individual
stocks within those industries or sectors. Investments are expected to be made
primarily in developed markets and larger capitalization companies. However, the
fund also has the ability to invest in emerging markets and smaller
capitalization companies.
Equity securities in which the fund invests include common and preferred stock.
In addition, the fund may invest in securities representing underlying
international securities, such as American Depository Receipts and European
Depository Receipts, and in securities of other investment companies.
In order to hedge against adverse movements in currency exchange rates, the fund
may enter into forward foreign currency exchange contracts.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF EQUITY SECURITIES. Equity securities may decline significantly in price
over short or extended periods of time. Price changes may occur in the world
market as a whole, or they may occur in only a particular country, company,
industry, or sector of the world market.
RISKS OF INTERNATIONAL INVESTING. International investing involves risks not
typically associated with domestic investing. Because of these risks, and
because of the sub-advisor's ability to invest substantial portions of the
fund's assets in a small number of countries, the fund may be subject to greater
volatility than mutual funds that invest principally in domestic securities.
Risks of international investing include adverse currency fluctuations,
potential political and economic instability, limited liquidity and volatile
prices of non-U.S. securities, limited availability of information regarding
non-U.S. companies, investment and repatriation restrictions, and foreign
taxation.
RISKS OF EMERGING MARKETS. The risks of international investing are particularly
significant in emerging markets. Investing in emerging markets generally
involves exposure to economic structures that are less diverse and mature and to
political systems that are less stable than those of developed countries. In
addition, issuers in emerging markets typically are subject to a greater degree
of change in earnings and business prospects than are companies in developed
markets.
RISKS OF SMALLER CAPITALIZATION COMPANIES. Stocks of smaller capitalization
companies involve substantial risk and their prices may be subject to more
abrupt or erratic movements than those of larger, more established companies or
of market averages in general.
RISKS OF FOREIGN CURRENCY HEDGING TRANSACTIONS. If the sub-advisor's forecast of
exchange rate movements is incorrect, the fund may realize losses on its foreign
currency transactions. In addition, the fund's hedging transactions may prevent
the fund from realizing the benefits of a favorable change in the value of
foreign currencies.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American International Fund
<PAGE>
FIRST AMERICAN INTERNATIONAL FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
9.08% 7.84% 16.63% 25.86% 83.18%
------------------------------------------
1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1999 61.51%
Worst Quarter:
Quarter ending: June 30, 2000 (15.00)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since Inception Since Inception
AS OF 12/31/99 Date To Date(2) One Year Five Years (Class A) (Class B)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
International Fund (Class A) 4/7/94 (17.88)% 73.61% 24.56% 19.59% N/A
------------------------------------------------------------------------------------------------------------------------
International Fund (Class B) 8/15/94 (17.99)% 76.62% 24.74% N/A 20.61%
------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Capital International
Europe, Australia, Far East Index(3) (4.06)% 26.96% 12.83% 11.23% 11.10%
------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was (13.33)%.
(2) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index including approximately 1,077 companies representing the
stock markets of 14 European countries, Australia, New Zealand, Japan, Hong
Kong and Singapore. The since inception performance of the index for Class A
and Class B shares is calculated from 4/30/94 and 8/31/94, respectively.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-----------------------------------------------------------------------------------------------------------
Management Fees 1.25% 1.25% 1.25%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.26% 0.26% 0.28%
TOTAL 1.76% 2.51% 2.53%
-----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.16)% (0.16)% (0.18)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.60% 2.35% 2.35%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.70%, 2.45%, AND 2.45%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 694 $ 754 $ 254 $ 454 $ 354
3 years $1,050 $1,182 $ 782 $ 880 $ 880
5 years $1,429 $1,535 $1,335 $1,432 $1,432
10 years $2,489 $2,662 $2,662 $2,937 $2,937
</TABLE>
2 FUND PROFILE - First American International Fund
<PAGE>
FIRST AMERICAN INTERNATIONAL FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
Marvin & Palmer Associates (Marvin & Palmer) is paid a portion of the advisory
fee to sub-advise the fund. A team of persons associated with Marvin & Palmer
manages the fund's day to day investments. As of December 31, 1999, the
sub-advisor managed a total of approximately $14 billion in investments.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B, and Class C shares, the fees and expenses
may vary (as first forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends and capital gains from the
fund's net investment income, if any, are declared and paid annually. For most
investors, fund dividends and distributions are considered taxable whether they
are reinvested or taken in cash (unless your investment is in an IRA or other
tax-advantaged account). Dividends from the fund's net investment income and
short-term capital gains are taxable as ordinary income. Distributions of the
fund's long-term capital gains are taxable as long-term capital gains,
regardless of how long you have held your shares.
The fund may be required to pay withholding and other taxes imposed by foreign
countries. If the fund has more than 50% of its total assets invested in
securities of foreign corporations at the end of its taxable year, it may make
an election that will permit you either to claim a foreign tax credit with
respect to foreign taxes paid by the fund or to deduct those amounts as an
itemized deduction on your tax return. If the fund makes this election, you will
be notified and provided with sufficient information to calculate the amount you
may deduct as foreign taxes paid or your foreign tax credit.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPI(R)
3 FUND PROFILE - First American International Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
INTERNATIONAL
FUND
U.S. BANCORP
401(k) SAVINGS PLAN
CLASS Y SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN INTERNATIONAL FUND
--------------------------------------------------------------------------------
OBJECTIVE
International Fund has an objective of long-term growth of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, International Fund invests primarily (at least
65% of its total assets) in equity securities that trade in markets other than
the United States. These securities generally are issued by companies:
* that are domiciled in countries other than the United States, or
* that derive at least 50% of either their revenues or their pre-tax income from
activities outside of the United States.
Normally, the fund will invest in securities traded in at least three foreign
countries.
In choosing investments for the fund, the fund's sub-advisor generally places
primary emphasis on country selection. This is followed by the selection of
industries or sectors within or across countries and the selection of individual
stocks within those industries or sectors. Investments are expected to be made
primarily in developed markets and larger capitalization companies. However, the
fund also has the ability to invest in emerging markets and smaller
capitalization companies.
Equity securities in which the fund invests include common and preferred stock.
In addition, the fund may invest in securities representing underlying
international securities, such as American Depositary Receipts and European
Depositary Receipts, and in securities of other investment companies.
In order to hedge against adverse movements in currency exchange rates, the fund
may enter into forward foreign currency exchange contracts.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF EQUITY SECURITIES. Equity securities may decline significantly in price
over short or extended periods of time. Price changes may occur in the world
market as a whole, or they may occur in only a particular country, company,
industry, or sector of the world market.
RISKS OF INTERNATIONAL INVESTING. International investing involves risks not
typically associated with domestic investing. Because of these risks, and
because of the sub-advisor's ability to invest substantial portions of the
fund's assets in a small number of countries, the fund may be subject to greater
volatility than mutual funds that invest principally in domestic securities.
Risks of international investing include adverse currency fluctuations,
potential political and economic instability, limited liquidity, and volatile
prices of non-U.S. securities, limited availability of information regarding
non-U.S. companies, investment and repatriation restrictions, and foreign
taxation.
RISKS OF EMERGING MARKETS. The risks of international investing are particularly
significant in emerging markets. Investing in emerging markets generally
involves exposure to economic structures that are less diverse and mature, and
to political systems that are less stable, than those of developed countries. In
addition, issuers in emerging markets typically are subject to a greater degree
of change in earnings and business prospects than are companies in developed
markets.
RISKS OF SMALLER CAPITALIZATION COMPANIES. Stocks of smaller capitalization
companies involve substantial risk and their prices may be subject to more
abrupt or erratic movements than those of larger, more established companies or
of market averages in general.
RISKS OF FOREIGN CURRENCY HEDGING TRANSACTIONS. If the subadvisor's forecast of
exchange rate movements is incorrect, the fund may realize losses on its foreign
currency transactions. In addition, the fund's hedging transactions may prevent
the fund from realizing the benefits of a favorable change in the value of
foreign currencies.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default on its obligations.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American International Fund
<PAGE>
FIRST AMERICAN INTERNATIONAL FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations below provide you with information on the fund's volatility
and performance. Of course, past performance does not guarantee future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. The table compares the fund's performance over different time
periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects fund expenses; the benchmark
is unmanaged and has no expenses. Both the chart and the table assume that all
distributions have been reinvested.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
9.36% 8.13% 16.79% 26.11% 83.40%
-------------------------------------------
1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1999 61.60%
Worst Quarter:
Quarter ending: June 30, 2000 (14.97)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99 Date To Date(2) One Year Five Years Inception
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
International Fund 4/4/94 (13.28)% 83.40% 26.14% 20.84%
--------------------------------------------------------------------------------------------------------------------
Morgan Stanley Capital International Europe, Australasia,
Far East Index(3) (4.06)% 26.96% 12.83% 11.23%
--------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return for the period from 1/1/2000 to 6/30/2000 was (13.28)%
(2) Year to date performance for the fund and the index is for the period from
1/1/2000 to 6/30/2000.
(3) An unmanaged index including approximately 1,077 companies representing the
stock markets of 14 European countries, Australia, New Zealand, Japan, Hong
Kong and Singapore. The since inception performance of the index is
calculated from 4/30/94.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
The fund does not impose any sales charges (loads) or other fees when you buy,
sell or exchange shares. However, when you hold shares of the fund you
indirectly pay a portion of the fund's operating expenses. These expenses are
deducted from fund assets. The figures below are based on expenses during the
fiscal year ended September 30, 1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) None
MAXIMUM DEFERRED SALES CHARGE (LOAD) None
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 1.25%
Distribution and Service (12b-1) Fees None
Other Expenses 0.26%
TOTAL 1.51%
--------------------------------------------------------------------------------
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
Waiver of Fund Expenses (0.16)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.35%
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.35%. FEE WAIVERS MAY BE DISCONTINUED AT
ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 154
3 years $ 477
5 years $ 824
10 years $1,802
2 FUND PROFILE - First American International Fund
<PAGE>
FIRST AMERICAN INTERNATIONAL FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
Marvin & Palmer Associates (Marvin & Palmer) is paid a portion of the advisory
fee to sub-advise the fund. A team of persons associated with Marvin & Palmer
manages the fund's day to day investments. As of December 31, 1999, the
subadvisor managed a total of approximately $14 billion in investments.
--------------------------------------------------------------------------------
REVIEWING INVESTMENT OPTIONS
You may review and make changes to your investment options by calling U-Connect
at 1-800-806-7009 or logging on to the U.S. Bancorp 401(k) Savings Plan Web site
at www.rsweb.com/60587.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Distributions may be requested by calling U-Connect at 1-800-806-7009.
Distributions from the U.S. Bancorp 401(k) Savings Plan are generally taxable
and subject to withholding in the current year unless the participant requests a
direct rollover to an IRA or another qualified plan. Certain distributions such
as distributions from an employee's after-tax account or, in some circumstances,
portions of distributions made after a participant has attained age 70 1/2 may
not be rolled over to an IRA or another qualified plan. Generally, an employee's
distribution will be taxed at ordinary income tax rates. Distributions made
before a participant attains age 59 1/2 are subject to a 10% penalty tax unless
an exception applies.
Participants in the U.S. Bancorp 401(k) Savings Plan will not be taxed on pretax
earnings reductions or on employer contributions at the time such amounts are
allocated to their accounts. Pretax contributions, however, are subject to tax
under FICA and FUTA. Participants will not be taxed on the income earned on any
securities in the trust fund until they are withdrawn or distributed under the
Plan.
To inquire about or initiate loans against your 401(k) Savings Plan, call
U-Connect at 1-800-806-7009 or log on to the Internet Web site at
www.rsweb.com/60587.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPI(I)
3 FUND PROFILE - First American International Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
INTERNATIONAL
INDEX
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
EFFECTIVE MAY 1, 2000, NO NEW INVESTORS WILL BE ACCEPTED INTO THE FIRST AMERICAN
INTERNATIONAL INDEX FUND. SUBSEQUENT PURCHASES BY CURRENT INVESTORS WILL
CONTINUE UNTIL FURTHER NOTICE.
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN INTERNATIONAL INDEX FUND
--------------------------------------------------------------------------------
OBJECTIVE
International Index Fund's objective is to provide investment results that
correspond to the performance of the Morgan Stanley Capital International
Europe, Australia, Far East Index (the "EAFE Index").
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, International Index Fund invests at least 90% of
its total assets in common stocks included in the EAFE Index. The EAFE Index
currently includes approximately 1,077 companies representing the stock markets
of 14 European countries, Australia, New Zealand, Japan, Hong Kong and
Singapore. The fund's advisor believes that the fund's objective can best be
achieved by investing in common stocks of approximately 50% to 100% of the
issues included in the EAFE Index, depending on the size of the fund. A computer
program is used to identify which stocks should be purchased or sold in order to
replicate, as closely as possible, the composition of the EAFE Index.
Because the fund may not always hold all of the stocks included in the EAFE
Index, and because the fund has expenses and the index does not, the fund will
not duplicate the index's performance precisely. However, the fund's advisor
believes that there should be a close correlation between the fund's performance
and that of the EAFE Index in both rising and falling markets.
The fund will attempt to achieve a correlation between the performance of its
portfolio and that of the EAFE Index of at least 95%, without taking into
account expenses of the fund. A perfect correlation would be indicated by a
figure of 100%, which would be achieved if the fund's net asset value, including
the value of its dividends and capital gains distributions, increased or
decreased in exact proportion to changes in the EAFE Index. If the fund is
unable to achieve a correlation of 95% over time, the fund's board of directors
will consider alternative strategies for the fund.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry, or sector of the market.
RISKS OF INTERNATIONAL INVESTING. International investing involves risks not
typically associated with domestic investing. Because of these risks, the fund
may be subject to greater volatility than mutual funds that invest principally
in domestic securities. Risks of international investing include adverse
currency fluctuations, potential political and economic instability, limited
liquidity and volatile prices of non-U.S. securities, limited availability of
information regarding non-U.S. companies, investment and repatriation
restrictions, and foreign taxation.
FAILURE TO MATCH THE PERFORMANCE OF THE EAFE INDEX. The fund's ability to
replicate the performance of the EAFE Index may be affected by, among other
things, changes in securities markets, the manner in which Morgan Stanley
calculates the performance of the EAFE Index, administrative and other expenses
incurred by the fund, taxes (including foreign withholding taxes, which will
affect the fund), the amount and timing of cash flows into and out of the fund,
commissions, sales charges (if any) and other expenses.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares were not offered prior to the date of this prospectus, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American International Index Fund
<PAGE>
FIRST AMERICAN INTERNATIONAL INDEX FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2)
[BAR CHART]
4.81% 0.02% 19.29% 27.39%
-------------------------------------
1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1998 20.54%
Worst Quarter:
Quarter ending: September 30, 1998 (14.26)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since Inception Since Inception
AS OF 12/31/99(1) Date To Date(3) One Year (Class A) (Class B)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
International Index Fund (Class A) 7/3/95 (6.01)% 20.71% 11.09% N/A
----------------------------------------------------------------------------------------------------------------
International Index Fund (Class B) 11/24/97 (5.83)% 21.36% N/A 19.38%
----------------------------------------------------------------------------------------------------------------
Morgan Stanley Capital International
Europe, Australia, Far East Index(4) (0.11)% 26.96% 12.43% 22.91%
----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Performance presented prior to 11/21/97 is that of Qualivest International
Opportunities Fund.
(2) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was (0.80)%.
(3) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 3/31/2000.
(4) An unmanaged index including approximately 1,077 companies representing the
stock markets of 14 European countries, Australia, New Zealand, Japan, Hong
Kong and Singapore. The since inception performance of the index for Class A
and Class B shares is calculated from 7/31/95 and 11/30/97, respectively.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-------------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.30% 0.31% 0.31%(4)
TOTAL 1.25% 2.01% 2.01%
-------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.25)% (0.26)% (0.26)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.00% 1.75% 1.75%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.00%, 1.75%, AND 1.75%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
(4) "Other Expenses" are based on estimated amounts for the current fiscal year.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 646 $ 704 $ 204 $ 402 $ 302
3 years $ 901 $1,030 $ 630 $ 724 $ 724
5 years $1,175 $1,283 $1,083 $1,172 $1,172
10 years $1,957 $2,142 $2,142 $2,414 $2,414
</TABLE>
2 FUND PROFILE - First American International Index Fund
<PAGE>
FIRST AMERICAN INTERNATIONAL INDEX FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B, and Class C shares, the fees and expenses
may vary (as first forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income, if any, are declared and paid quarterly. Any capital gains
are distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares.
The fund may be required to pay withholding and other taxes imposed by foreign
countries. If the fund has more than 50% of its total assets invested in
securities of foreign corporations at the end of its taxable year, it may make
an election that will permit you either to claim a foreign tax credit with
respect to foreign taxes paid by the fund or to deduct those amounts as an
itemized deduction on your tax return. If the fund makes this election, you will
be notified and provided with sufficient information to calculate the amount you
may deduct as foreign taxes paid or your foreign tax credit.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPII(R)
3 FUND PROFILE - First American International Index Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
HEALTH
SCIENCES
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN HEALTH SCIENCES FUND
--------------------------------------------------------------------------------
OBJECTIVE
Health Sciences Fund has an objective of long-term growth of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Health Sciences Fund invests primarily (at least
65% of its total assets) in common stocks of companies which develop, produce,
or distribute products or services connected with health care or medicine, and
which derive at least 50% of their assets, revenues, or profits from these
products or services at the time of investment.
Examples of products or services connected with health care or medicine include:
pharmaceuticals; health care services and administration; diagnostics; medical
equipment and supplies; medical technology; and medical research and
development.
The fund's advisor will invest in companies that it believes have the potential
for above average growth in revenue and earnings as a result of new or unique
products, processes, or services; increasing demand for a company's products or
services; established market leadership; or exceptional management.
The fund's investments may include development stage companies (companies that
do not have significant revenues) and small- and mid-capitalization companies.
The fund may also invest in real estate investment trusts (REITs) that finance
medical care facilities. REITs are publicly traded corporations or trusts that
acquire, hold and manage real estate.
Up to 25% of the fund's total assets may be invested in securities of foreign
issuers which are either listed on a United States stock exchange or represented
by American Depositary Receipts.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may affect the market as a whole, or
they may affect only a particular company, industry, or sector of the market.
RISKS OF THE HEALTH SCIENCES SECTOR. Because the fund invests primarily in
stocks related to health care or medicine, it is particularly susceptible to
risks associated with the health sciences industries. Many products and services
in the health sciences industries may become rapidly obsolete due to
technological and scientific advances. In addition, governmental regulation may
have a material effect on the demand for products and services in these
industries.
RISKS OF NON-DIVERSIFICATION. The fund is non-diversified. This means that it
may invest a larger portion of its assets in a limited number of companies than
a diversified fund. Because a relatively high percentage of the fund's assets
may be invested in the securities of a limited number of issuers, and because
those issuers will be in the same or related economic sectors, the fund's
portfolio securities may be more susceptible to any single economic,
technological, or regulatory occurrence than the portfolio securities of a
diversified fund.
RISKS OF DEVELOPMENT STAGE, SMALL- AND MID-CAP STOCKS. Stocks of development
stage and small-capitalization companies involve substantial risk. These stocks
historically have experienced greater price volatility than stocks of more
established and larger-capitalization companies, and they may be expected to do
so in the future.
RISKS OF REITs. REITs will be affected by changes in the values of and incomes
from the properties they own or the credit quality of the mortgages they hold.
REITs are dependent on specialized management skills which may affect their
ability to generate cash flow for operating purposes and to make distributions
to shareholders or unitholders.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability or
diplomatic developments that could adversely affect the securities.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default
on its obligations.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
performance information is presented for these shares. The fund's performance
reflects sales charges and fund expenses; the benchmark is unmanaged and has no
expenses. Both the chart and the table assume that all distributions have been
reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Health Sciences Fund
<PAGE>
FIRST AMERICAN HEALTH SCIENCES FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
16.14% -6.94% -1.32%
--------------------------
1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1998 17.93%
Worst Quarter:
Quarter ending: September 30, 1998 (22.34)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since Inception Since Inception
AS OF 12/31/99 Date To Date(2) One Year (Class A) (Class B)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Health Sciences Fund (Class A) 1/31/96 27.36% (6.52)% 0.15% N/A
---------------------------------------------------------------------------------------------------------
Health Sciences Fund (Class B) 1/31/96 28.75% (6.70)% N/A 0.17%
---------------------------------------------------------------------------------------------------------
S & P Health Care Composite Index(3) 23.70% (8.15)% 21.96% 21.96%
---------------------------------------------------------------------------------------------------------
Russell 2000 Index(4) 3.04% 21.26% 14.28% 14.28%
---------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 34.40%.
(2) Year to date performance for the fund (with sales charges reflected) and the
indices is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index comprised of health care stocks in the S & P 500 (an
unmanaged index of large capitalization stocks). Previously, the fund used
the Russell 2000 Index as a benchmark. Going forward, the fund will use the
S & P Health Care Composite Index as a comparison, as it is better suited to
the fund's investment strategies. The since inception performance of the
index is calculated from 1/31/96.
(4) An unmanaged index comprised of the smallest 2000 companies in the Russell
3000 Index. The latter index is composed of 3000 large U.S. companies
representing approximately 98% of the investable U.S. equity market. The
since inception performance of the index is calculated from 1/31/96.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-----------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.35% 0.35% 0.35%(4)
TOTAL 1.30% 2.05% 2.05%
-----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.14)% (0.13)% (0.13)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.16% 1.92% 1.92%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.15%, 1.90%, AND 1.90%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
(4) "Other Expenses" are based on estimated amounts for the current fiscal year.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 650 $ 708 $ 208 $ 406 $ 306
3 years $ 915 $1,043 $ 643 $ 736 $ 736
5 years $1,200 $1,303 $1,103 $1,192 $1,192
10 years $2,010 $2,187 $2,187 $2,455 $2,455
</TABLE>
2 FUND PROFILE - First American Health Sciences Fund
<PAGE>
FIRST AMERICAN HEALTH SCIENCES FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B, and Class C shares, the fees and expenses
may vary (as first forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income, if any, are declared and paid quarterly. Any capital gains
are distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. The fund expects that, as a result of its investment objective and
strategy, the fund's distributions will consist primarily of capital gains.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPHS(R)
3 FUND PROFILE - First American Health Sciences Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
REAL ESTATE
SECURITIES
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN REAL ESTATE SECURITIES FUND
--------------------------------------------------------------------------------
OBJECTIVE
Real Estate Securities Fund's objective is to provide above average current
income and long-term capital appreciation.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Real Estate Securities Fund invests primarily
(at least 65% of its total assets) in income producing common stocks of publicly
traded companies engaged in the real estate industry. These companies derive at
least 50% of their revenues or profits from the ownership, construction,
management, financing, or sale of real estate or have at least 50% of the fair
market value of their assets invested in real estate. The advisor will select
companies that it believes exhibit strong management teams, a strong competitive
position, above average growth in revenues and a sound balance sheet.
A majority of the fund's total assets will be invested in real estate investment
trusts (REITs). REITs are publicly traded corporations or trusts that acquire,
hold and manage residential or commercial real estate. REITs generally can be
divided into the following three types:
* Equity REITs, which invest the majority of their assets directly in real
property and derive their income primarily from rents and capital gains or
real estate appreciation.
* Mortgage REITs, which invest the majority of their assets in real estate
mortgage loans and derive their income primarily from interest payments.
* Hybrid REITs, which combine the characteristics of equity REITs and mortgage
REITs.
The fund expects to emphasize investments in equity REITs, although it may
invest in all three kinds of REITs.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry, or sector of the market.
RISKS OF THE REAL ESTATE INDUSTRY. Because the fund invests primarily in the
real estate industry, it is particularly susceptible to risks associated with
that industry. The real estate industry has been subject to substantial
fluctuations and declines on a local, regional, and national basis in the past
and may continue to be in the future.
RISK OF REITs. There are risks associated with direct investments in REITs.
Equity REITs will be affected by changes in the values of and incomes from the
properties they own, while mortgage REITs may be affected by the credit quality
of the mortgage loans they hold. REITs are dependent on specialized management
skills which may affect their ability to generate cash flow for operating
purposes and to make distributions to shareholders or unitholders.
RISKS OF NON-DIVERSIFICATION. The fund is non-diversified. This means that it
may invest a larger portion of its assets in a limited number of companies than
a diversified fund. Because a relatively high percentage of the fund's assets
may be invested in the securities of a limited number of issuers, and because
those issuers generally will be in the real estate industry, the fund's
portfolio securities may be more susceptible to any single economic or
regulatory occurrence than the portfolio securities of a diversified fund.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default
on its obligations.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
performance information is presented for these shares. The fund's performance
reflects sales charges and fund expenses; the benchmark is unmanaged and has no
expenses. Both the chart and the table assume that all distributions have been
reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Real Estate Securities Fund
<PAGE>
FIRST AMERICAN REAL ESTATE SECURITIES FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
30.63% 19.21% -16.16% -3.91
-----------------------------------------
1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1996 16.59%
Worst Quarter:
Quarter ending: September 30, 1998 (9.78)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since Inception Since Inception
AS OF 12/31/99 Date To Date(2) One Year (Class A) (Class B)
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Real Estate Securities Fund (Class A) 9/29/95 9.02% (8.99)% 5.48% N/A
------------------------------------------------------------------------------------------------------------
Real Estate Securities Fund (Class B) 9/29/95 9.55% (9.08)% N/A 5.57%
------------------------------------------------------------------------------------------------------------
Morgan Stanley REIT Index(3) 13.31% (4.55)% 7.58% 7.02%
------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 15.05%.
(2) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index of the most actively traded real estate investment
trusts. The since inception performance of the index is calculated from
9/30/95.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-------------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.23% 0.23% 0.23%(4)
TOTAL 1.18% 1.93% 1.93%
-------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.13)% (0.13)% (0.13)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.05% 1.80% 1.80%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.05%, 1.80%, AND 1.80%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
(4) "Other expenses" are based on estimated amounts for the current fiscal year.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 639 $ 696 $ 196 $ 394 $ 294
3 years $ 880 $1,006 $ 606 $ 700 $ 700
5 years $1,140 $1,242 $1,042 $1,131 $1,131
10 years $1,882 $2,059 $2,059 $2,331 $2,331
</TABLE>
2 FUND PROFILE - First American Real Estate Securities Fund
<PAGE>
FIRST AMERICAN REAL ESTATE SECURITIES FUND CONTINUED
--------------------------------------------------------------------------------
FUND MANAGEMENT
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B, and Class C shares, the fees and expenses
may vary (as first forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income, if any, are declared and paid quarterly. Any capital gains
are distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. The fund expects that, as a result of its investment objective and
strategy, its distributions will consist primarily of ordinary income, while a
portion of the distributions paid may be a return of capital.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPRES(R)
3 FUND PROFILE - First American Real Estate Securities Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
(*) EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
TECHNOLOGY
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN TECHNOLOGY FUND
--------------------------------------------------------------------------------
OBJECTIVE
Technology Fund has an objective of long-term growth of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Technology Fund invests primarily (at least 65%
of its total assets) in common stocks of companies which the fund's advisor
believes either have, or will develop, products, processes, or services that
will provide or will benefit significantly from technological innovations,
advances, and improvements. These may include: inexpensive computing power, such
as personal computers; improved methods of communications, such as satellite
transmission; and technology related services such as Internet related marketing
services.
The prime emphasis of the fund is to identify companies which the advisor
believes are positioned to benefit from technological advances in areas such as
semiconductors, computers, software, communications, and online services.
Companies in which the fund invests may include development-stage companies
(companies that do not have significant revenues) and small- capitalization
companies. The advisor will generally select companies that it believes exhibit
strong management teams, a strong competitive position, above average growth in
revenues and a sound balance sheet.
Under certain market conditions, the fund may frequently invest in companies at
the time of their initial public offering (IPO). By virtue of its size and
institutional nature, the advisor may have greater access than individual
investors have to IPOs, including access to so-called "hot issues" which are
generally traded in the aftermarket at prices in excess of the IPO price.
Up to 25% of the fund's total assets may be invested in securities of foreign
issuers which are either listed on a United States stock exchange or represented
by American Depositary Receipts.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The value of your investment in this fund will change daily, which means you
could lose money. The main risks of investing in this fund include:
RISKS OF COMMON STOCKS. Stocks may decline significantly in price over short or
extended periods of time. Price changes may affect the market as a whole, or
they may affect only a particular company, industry, or sector of the market.
RISKS OF NON-DIVERSIFICATION. The fund is non-diversified. This means that it
may invest a larger portion of its assets in a limited number of companies than
a diversified fund. Because a relatively high percentage of the fund's assets
may be invested in the securities of a limited number of issuers, and because
those issuers will be in the same or related economic sectors, the fund's
portfolio securities may be more susceptible to any single economic,
technological or regulatory occurrence than the portfolio securities of a
diversified fund.
RISKS OF THE TECHNOLOGY SECTOR. Because the fund invests primarily in technology
related stocks, it is particularly susceptible to risks associated with the
technology industry. Competitive pressures may have a significant effect on the
financial condition of companies in that industry.
RISKS OF DEVELOPMENT-STAGE AND SMALL-CAP STOCKS. Stocks of development-stage and
small-capitalization companies involve substantial risk. These stocks
historically have experienced greater price volatility than stocks of more
established and larger-capitalization companies, and they may be expected to do
so in the future.
RISKS OF IPOs. Companies involved in IPOs generally have limited operating
histories and prospects for future profitability are uncertain. Prices of IPOs
may also be unstable due to the absence of a prior public market, the small
number of shares available for trading and limited investor information. IPOs
will frequently be sold within 12 months of purchase. This may result in
increased short-term capital gains, which will be taxable to shareholders as
ordinary income.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability, or
diplomatic developments that could adversely affect the securities.
RISKS OF SECURITIES LENDING. The fund is subject to the risk that the other
party to a securities lending agreement will default
on its obligations.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
performance information is presented for these shares. The fund's performance
reflects sales charges and fund expenses; the benchmark is unmanaged and has no
expenses. Both the chart and the table assume that all distributions have been
reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Technology Fund
<PAGE>
FIRST AMERICAN TECHNOLOGY FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2)
[BAR CHART]
40.93% 22.12% 6.91% 32.47% 191.79%
----------------------------------------------------
1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1999 80.60%
Worst Quarter:
Quarter ending: September 30, 1998 (18.20)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
AS OF 12/31/99(1) Inception Year Since Inception Since Inception
Date To Date(3) One Year Five Years (Class A) (Class B)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Technology Fund (Class A) 4/4/94 5.01% 176.52% 46.46% 45.04% N/A
----------------------------------------------------------------------------------------------------------------------
Technology Fund (Class B) 8/15/94 5.43% 184.69% 46.87% N/A 49.45%
----------------------------------------------------------------------------------------------------------------------
S & P Technology Composite Index(4) 3.32% 75.21% 50.76% 47.34% 47.88%
----------------------------------------------------------------------------------------------------------------------
Russell 2000 Index(5) 3.04% 21.26% 16.69% 14.64% 15.09%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Technology Fund's recent returns were primarily achieved buying IPOs and
technology related stocks in a period favorable for these investments. Of
course, such favorable returns involve accepting the risk of volatility, and
there is no assurance that the fund's future investment in IPOs and
technology stocks will have the same effect on performance as it did in
recently.
(2) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 10.83%.
(3) Year to date performance for the fund (with sales charges reflected) and the
indices is for the period from 1/1/2000 to 6/30/2000.
(4) An unmanaged index comprised of Technology stocks in the S & P 500 (an
unmanaged index of large capitalization stocks). Previously, the fund used
the Russell 2000 Index as a benchmark. Going forward, the fund will use the
S & P Technology Composite Index as a comparison, as it is better suited to
the fund's investment strategies. The since inception performance of the
indexes for Class A and Class B shares is calculated from 4/30/94 and
8/31/94, respectively.
(5) An unmanaged index comprised of the smallest 2000 companies in the Russell
3000 Index. The latter index is composed of 3000 large U.S. companies
representing approximately 98% of the investable U.S. equity market. The
since inception performance of the indexes for Class A and Class B shares is
calculated from 4/30/94 and 8/31/94, respectively.
PERFORMANCE MAY BE LOWER DUE TO RECENT MARKET VOLATILITY.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 5.25% 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-------------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.21% 0.21% 0.21%(4)
TOTAL 1.16% 1.91% 1.91%
-------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.01)% (0.01)% (0.01)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.15% 1.90% 1.90%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.15%, 1.90%, AND 1.90%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
(4) "Other expenses" are based on estimated amounts for the current fiscal year.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 637 $ 694 $ 194 $ 392 $ 292
3 years $ 874 $1,000 $ 600 $ 694 $ 694
5 years $1,130 $1,232 $1,032 $1,121 $1,121
10 years $1,860 $2,038 $2,038 $2,310 $2,310
</TABLE>
2 FUND PROFILE - First American Technology Fund
<PAGE>
FIRST AMERICAN TECHNOLOGY FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a CDSC of 1% if the shares are redeemed within 18
months from the date of purchase. In addition to the different sales-load
structures between Class A, Class B, and Class C shares, the fees and expenses
may vary (as first forth in the Fees and Expenses table). See an investment
professional to help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Purchase Net Amount Purchase
Price Invested Price
--------------------------------------------------------------------------------
Less than $ 50,000 5.25% 5.54% 5.00%
$ 50,000 - $ 99,999 4.25% 4.44% 4.00%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New Account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class B or Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income, if any, are declared and paid quarterly. Any capital gains
are distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. The fund expects that, as a result of its investment objective and
strategy, its distributions will consist primarily of capital gains.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPT(R)
3 FUND PROFILE - First American Technology Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
(*) BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
CORPORATE BOND
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN CORPORATE BOND FUND
--------------------------------------------------------------------------------
OBJECTIVE
Corporate Bond Fund's objective is to provide investors with a high level of
current income consistent with prudent risk to capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Corporate Bond Fund will invest primarily (at
least 65% of its total assets) in corporate debt obligations. The Fund will also
invest in a combination of: U.S. dollar denominated investment grade debt
obligations of foreign issuers; securities issued or guaranteed by the U.S.
government or its agencies and instrumentalities; and mortgage- and asset-backed
securities.
Fund managers employ a bottom-up approach to investing, evaluating individual
securities before considering the impact of economic trends. Securities are
selected using fundamental credit research to identify relative value in the
market. Positions are sold in anticipation of credit deterioration or when a
security is priced expensively relative to other comparable investments.
The fund invests primarily in securities rated investment grade at the time of
purchase or in unrated securities of comparable quality. However, up to 35% of
the fund's securities may be rated lower than investment grade at the time of
purchase or unrated and of comparable quality (securities commonly referred to
as "junk bonds"). The fund will not invest in securities rated lower than B at
the time of purchase or in unrated securities of equivalent quality. Unrated
securities will not exceed 25% of the fund's assets. Quality determinations
regarding these securities will be made by the fund's advisor.
The fund may invest up to 25% of its total assets in foreign debt securities
payable in U.S. dollars.
Under normal market conditions the fund attempts to maintain a weighted average
effective maturity for its portfolio securities of 15 years or less and an
average effective duration of four to nine years. The fund's weighted average
effective maturity and effective duration are measures of how the fund may react
to interest rate changes.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities, or the other party to a contract (such as a
securities lending agreement) may default on its obligations.
CALL RISK. During periods of falling interest rates, a bond issuer may "call" --
or repay -- its high-yielding bonds before their maturity date. The fund would
then be forced to invest the unanticipated proceeds at lower interest rates,
resulting in a decline in the fund's income.
RISKS OF MORTGAGE- AND ASSET-BACKED SECURITIES. Falling interest rates could
cause faster than expected prepayments of the obligations underlying mortgage-
and asset-backed securities, which the fund would have to invest at lower
interest rates. On the other hand, rising interest rates could cause prepayments
of the obligations to decrease, extending the life of mortgage- and asset-backed
securities with lower payment rates.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability or
diplomatic developments that could adversely affect the securities.
RISKS OF HIGH-YIELD SECURITIES. A significant portion of the fund's portfolio
may consist of lower-rated debt obligations, which are commonly called
"high-yield" securities or "junk bonds." High-yield securities generally have
more volatile prices and carry more risk to principal than investment grade
securities.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Corporate Bond Fund
<PAGE>
FIRST AMERICAN CORPORATE BOND FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
Because Corporate Bond Fund shares have not been offered for a full calendar
year, no performance information is presented for these shares.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 4.25%(1) 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OF REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-----------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses(4) 0.19% 0.19% 0.19%
TOTAL(5) 1.14% 1.89% 1.89%
-----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Certain investors may qualify for reduced sales charges.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
(4) Other expenses are based on estimated amounts for the current fiscal year.
(5) THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT
TOTAL FUND OPERATING EXPENSES DO NOT EXCEED 0.75%, 1.50% AND 1.50%,
RESPECTIVELY, FOR THE CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY
BE DISCONTINUED AT ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $536 $692 $192 $390 $290
3 years $772 $994 $594 $688 $688
</TABLE>
2 FUND PROFILE - First American Corporate Bond Fund
<PAGE>
FIRST AMERICAN CORPORATE BOND FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a contingent deferred sales charge (CDSC) of 1% if the
shares are redeemed within 18 months from the date of purchase. In addition to
the different sales-load structures between Class A, Class B and Class C shares,
the fees and expenses may vary (as set forth in the Fees and Expenses table
contained in this Profile). See an investment professional to help determine
which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
as a % of as a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 4.25% 4.44% 4.00%
$ 50,000 - $ 99,999 4.00% 4.17% 3.75%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0% 0% 0%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. The fund expects that, as a result of its investment objective and
strategy, its distributions will consist primarily of ordinary income.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPCB(R)
3 FUND PROFILE - First American Corporate Bond Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
(*) BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
FIXED INCOME
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN FIXED INCOME FUND
--------------------------------------------------------------------------------
OBJECTIVE
Fixed Income Fund's objective is to provide investors with high current income
consistent with limited risk to capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Fixed Income Fund invests in investment grade
debt securities, such as: U.S. government securities, (securities issued or
guaranteed by the U.S. government or its agencies or instrumentalities),
including zero coupon securities; mortgage- and asset-backed securities; and
corporate debt obligations.
Fund managers select securities using a "top-down" approach, which begins with
the formulation of their general economic outlook. Following this, various
sectors and industries are analyzed and selected for investment. Finally, fund
managers select individual securities within these sectors or industries.
Debt securities in the fund will be rated investment grade at the time of
purchase or, if unrated, determined to be of comparable quality by the fund's
advisor. If the rating of a security is reduced or discontinued after purchase,
the fund is not required to sell the security, but may consider doing so. At
least 65% of the fund's debt securities must be either U.S. government
securities or securities that have received at least an A or equivalent rating.
Unrated securities will not exceed 25% of the fund's total assets.
At least 65% of the fund's total assets will be invested in fixed rate
obligations. The fund may invest up to 15% of its total assets in foreign
securities payable in U.S. dollars.
Under normal market conditions the fund attempts to maintain a weighted average
effective maturity for its portfolio securities of 15 years or less and an
average effective duration of three to eight years. The fund's weighted average
effective maturity and effective duration are measures of how the fund may react
to interest rate changes.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions. It also may invest up to 25% of total assets in dollar roll
transactions. In a dollar roll transaction, the fund sells mortgage-backed
securities for delivery in the current month while contracting with the same
party to repurchase similar securities at a future date.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities, or the other party to a contract (such as a
securities lending agreement) may default on its obligations.
CALL RISK. During periods of falling interest rates, a bond issuer may "call" --
or repay -- its high-yielding bonds before their maturity date. The fund would
then be forced to invest the unanticipated proceeds at lower interest rates,
resulting in a decline in the fund's income.
RISKS OF MORTGAGE- AND ASSET-BACKED SECURITIES. Falling interest rates could
cause faster than expected prepayments of the obligations underlying mortgage-
and asset-backed securities, which the fund would have to invest at lower
interest rates. On the other hand, rising interest rates could cause prepayments
of the obligations to decrease, extending the life of mortgage- and asset-backed
securities with lower payment rates.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability or
diplomatic developments that could adversely affect the securities.
RISKS OF DOLLAR ROLL TRANSACTIONS. The use of mortgage dollar rolls could
increase the volatility of the fund's share price. It could also diminish the
fund's investment performance if the advisor does not predict mortgage
prepayments and interest rates correctly.
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class B and Class C shares will be lower
due to their higher expenses. Sales charges are not reflected in the chart; if
they had been, returns would be lower. The table compares the fund's performance
for Class A and Class B shares over different time periods to that of the fund's
benchmark index, which is a broad measure of market performance. However,
because Class C shares have not been offered for a full calendar year, no
information is presented for these shares. The fund's performance reflects sales
charges and fund expenses; the benchmark is unmanaged and has no expenses. Both
the chart and the table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Fixed Income Fund
<PAGE>
FIRST AMERICAN FIXED INCOME FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
7.66% 14.43% 6.46% 9.65% -2.42% 17.02% 3.20% 8.47% 8.67% -3.00%
-------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: June 30, 1995 6.06%
Worst Quarter:
Quarter ending: March 31, 1994 (2.04)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Ten Years Since Inception
AS OF 12/31/99 Date To Date(2) One Year Five Years (Class A) (Class B)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Fixed Income Fund (Class A) 12/22/87 (0.47)% (7.09)% 5.75% 6.38% N/A
----------------------------------------------------------------------------------------------------------------
Fixed Income Fund (Class B) 8/15/94 (1.43)% (8.39)% 5.54% N/A 5.15%
----------------------------------------------------------------------------------------------------------------
Lehman Aggregate Bond Index(3) 3.98% (0.83)% 7.73% 7.70% 8.27%
----------------------------------------------------------------------------------------------------------------
Lehman Gov't/Corp Bond Index(4) 4.16% (2.15)% 7.60% 7.66% 6.88%
----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 3.92% Class A, 3.57% Class B.
(2) Year to date performance for the fund (with sales charges reflected) and the
indices is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index composed of the Lehman Government/Corporate Bond Index,
the Lehman Mortgage Backed Securities Index and Lehman Asset Backed
Securities Index. The Lehman Government/Corporate Bond Index is comprised of
Treasury securities, other securities issued or guaranteed by the U.S.
government or its agencies or instrumentalities, including U.S. agency
mortgage securities, and investment-grade corporate debt securities. The
Lehman Asset-Backed Index is composed of debt securities backed by credit
card, auto and home equity loans that are rated investment grade or higher.
The since inception performance of th index for Class B shares is calculated
from 8/31/94. Previously, the fund used the Lehman Government/Corporate Bond
Index as a benchmark. Going forward, the fund will use the Lehman Aggregate
Bond Index as a comparison, because it is better suited to the fund's
investment strategies.
(4) An unmanaged index comprised of Treasury securities, other securities issued
or guaranteed by the U.S. government or its agencies or instrumentalities,
including U.S. agency mortgage securities, and investment grade securities.
The since inception performance of the index for Class B shares is
calculated from 8/31/94.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 4.25%(2) 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(3) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(4)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses 0.19% 0.19% 0.19%
TOTAL 1.14% 1.89% 1.89%
--------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.19)% (0.19)% (0.54)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.95% 1.70% 1.35%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 0.95%, 1.70% AND 1.70%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Certain investors may qualify for reduced sales charges.
(3) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(4) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 536 $ 692 $ 192 $ 390 $ 290
3 years $ 772 $ 994 $ 594 $ 688 $ 688
5 years $1,026 $1,221 $1,021 $1,111 $1,111
10 years $1,752 $2,016 $2,016 $2,289 $2,289
</TABLE>
2 FUND PROFILE - First American Fixed Income Fund
<PAGE>
FIRST AMERICAN FIXED INCOME FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a contingent deferred sales charge (CDSC) of 1% if the
shares are redeemed within 18 months from the date of purchase. In addition to
the different sales-load structures between Class A, Class B and Class C shares,
the fees and expenses may vary (as first forth in the Fees and Expenses table
contained in this Profile). See an investment professional to help determine
which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 4.25% 4.44% 4.00%
$ 50,000 - $ 99,999 4.00% 4.17% 3.75%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. The fund expects that, as a result of its investment objective and
strategy, its distributions will consist primarily of ordinary income.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPFI(R)
3 FUND PROFILE - First American Fixed Income Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
(*) BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
INTERMEDIATE
TERM INCOME
FUND
CLASS A SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN INTERMEDIATE TERM INCOME FUND
--------------------------------------------------------------------------------
OBJECTIVE
Intermediate Term Income Fund's objective is to provide investors with current
income to the extent consistent with preservation of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Intermediate Term Income Fund invests in
investment grade debt securities, such as: U.S. government securities,
(securities issued or guaranteed by the U.S. government or its agencies or
instrumentalities), including zero coupon securities; mortgage- and
asset-backed securities; and corporate debt obligations.
Fund managers select securities using a "top-down" approach, which begins with
the formulation of their general economic outlook. Following this, various
sectors and industries are analyzed and selected for investment. Finally, fund
managers select individual securities within these sectors or industries.
Debt securities in the fund will be rated investment grade at the time of
purchase or, if unrated, determined to be of comparable quality by the fund's
advisor. If the rating of a security is reduced or discontinued after purchase,
the fund is not required to sell the security, but may consider doing so. At
least 65% of the fund's debt securities must be either U.S. government
securities or securities that have received at least an A or equivalent rating.
Unrated securities will not exceed 25% of the fund's total assets.
The fund may invest up to 15% of its total assets in foreign securities payable
in U.S. dollars.
Under normal market conditions the fund attempts to maintain a weighted average
effective maturity for its portfolio securities of two to seven years and an
average effective duration of two to six years. The fund's weighted average
effective maturity and effective duration are measures of how the fund may react
to interest rate changes.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions. It also may invest up to 25% of total assets in dollar roll
transactions. In a dollar roll transaction, the fund sells mortgage-backed
securities for delivery in the current month while contracting with the same
party to repurchase similar securities at a future date.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities, or the other party to a contract (such as a
securities lending agreement) may default on its obligations.
CALL RISK. During periods of falling interest rates, a bond issuer may "call" --
or repay -- its high-yielding bonds before their maturity date. The fund would
then be forced to invest the unanticipated proceeds at lower interest rates,
resulting in a decline in the fund's income.
RISKS OF MORTGAGE- AND ASSET-BACKED SECURITIES. Falling interest rates could
cause faster than expected prepayments of the obligations underlying mortgage-
and asset-backed securities, which the fund would have to invest at lower
interest rates. On the other hand, rising interest rates could cause prepayments
of the obligations to decrease, extending the life of mortgage- and asset-backed
securities with lower payment rates.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability or
diplomatic developments that could adversely affect the securities.
RISKS OF ROLL TRANSACTIONS. The use of mortgage dollar rolls could increase the
volatility of the fund's share price. It could also diminish the fund's
investment performance if the advisor does not predict mortgage prepayments and
interest rates correctly.
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. Sales charges are not reflected in the chart; if they had been,
returns would be lower. The table compares the fund's performance over different
time periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects sales charges and fund
expenses; the benchmark is unmanaged and has no expenses. Both the chart and the
table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Intermediate Term Income Fund
<PAGE>
FIRST AMERICAN INTERMEDIATE TERM INCOME FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
6.86% -1.35% 14.62% 4.22% 7.11% 8.36% -0.62%
----------------------------------------------------------
1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: June 30, 1995 4.71%
Worst Quarter:
Quarter ending: March 31, 1994 (1.29)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99 Date To Date(2) One Year Five Years Inception
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Intermediate Term Income Fund (Class A) 12/14/92 0.30% (3.09)% 6.08% 5.12%
-----------------------------------------------------------------------------------------------------------
Lehman Intermediate Gov't/Corp Bond Index(3) 3.20% 0.39% 7.09% 5.99%
-----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 2.90%.
(2) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index of Treasury securities, other securities issued by the
U.S. government or its agencies or instrumentalities, and investment grade
corporate debt securities, in each case with maturities of one to 10 years.
The since inception performance of the index is calculated from 12/31/92.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets.
--------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 2.50%(2)
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees 0.25%
Other Expenses 0.17%
TOTAL 1.12%
--------------------------------------------------------------------------------
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
Waiver of Fund Expenses (0.27)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.85%
THE DISTRIBUTOR INTENDS TO LIMIT ITS 12b-1 FEE TO 0.15% DURING THE CURRENT
FISCAL YEAR. IN ADDITION, THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT
FISCAL YEAR SO THAT TOTAL FUND OPERATING EXPENSES DO NOT EXCEED 0.85%. FEE
WAIVERS MAY BE DISCONTINUED AT ANY TIME.
(2) Certain investors may qualify for reduced sales charges. Investments of $1
million or more on which no front-end sales charge is paid may be subject to
a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 361
3 years $ 597
5 years $ 851
10 years $1,579
2 FUND PROFILE - First American Intermediate Term Income Fund
<PAGE>
FIRST AMERICAN INTERMEDIATE TERM INCOME FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below).
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 2.50% 2.56% 2.25%
$ 50,000 - $ 99,999 2.00% 2.04% 1.75%
$100,000 - $249,999 1.50% 1.52% 1.25%
$250,000 - $499,999 1.00% 1.01% 0.75%
$500,000 - $999,999 0.75% 0.76% 0.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. The fund expects that, as a result of its investment objective and
strategy, its distributions will consist primarily of ordinary income.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPINTI(R)
3 FUND PROFILE - First American Intermediate Term Income Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
(*) BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
LIMITED TERM
INCOME
FUND
CLASS A SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN LIMITED TERM INCOME FUND
--------------------------------------------------------------------------------
OBJECTIVE
Limited Term Income Fund's objective is to provide investors with current income
while maintaining a high degree of principal stability.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Limited Term Income Fund invests in investment
grade debt securities, such as: mortgage- and asset-backed securities;
corporate debt obligations; U.S. government securities, which are securities
issued or guaranteed by the U.S. government or its agencies or
instrumentalities; and commercial paper.
Fund managers select securities using a "top-down" approach, which begins with
the formulation of their general economic outlook. Following this, various
sectors and industries are analyzed and selected for investment. Finally, fund
managers select individual securities within these sectors or industries.
Debt securities in the fund will be rated investment grade at the time of
purchase or, if unrated, determined to be of comparable quality by the fund's
advisor. If the rating of a security is reduced or discontinued after purchase,
the fund is not required to sell the security, but may consider doing so. At
least 65% of the fund's debt securities must be either U.S. government
securities or securities that have received at least an A or equivalent rating.
Unrated securities will not exceed 25% of the fund's total assets.
The fund may invest up to 15% of its total assets in foreign securities payable
in U.S. dollars.
Under normal market conditions the fund attempts to maintain a weighted average
effective maturity and an average effective duration for its portfolio
securities of one to three years. The fund's weighted average effective maturity
and effective duration are measures of how the fund may react to interest rate
changes.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities, or the other party to a contract (such as a
securities lending agreement) may default on its obligations.
CALL RISK. During periods of falling interest rates, a bond issuer may "call" --
or repay -- its high-yielding bonds before their maturity date. The fund would
then be forced to invest the unanticipated proceeds at lower interest rates,
resulting in a decline in the fund's income.
RISKS OF MORTGAGE- AND ASSET-BACKED SECURITIES. Falling interest rates could
cause faster than expected prepayments of the obligations underlying mortgage-
and asset-backed securities, which the fund would have to invest at lower
interest rates. On the other hand, rising interest rates could cause prepayments
of the obligations to decrease, extending the life of mortgage- and asset-backed
securities with lower payment rates.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability or
diplomatic developments that could adversely affect the securities.
--------------------------------------------------------------------------------
FUND PERFORMANCE
The illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. Sales charges are not reflected in the chart; if they had been,
returns would be lower. The table compares the fund's performance over different
time periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects sales charges and fund
expenses; the benchmark is unmanaged and has no expenses. Both the chart and the
table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Limited Term Income Fund
<PAGE>
FIRST AMERICAN LIMITED TERM INCOME FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
4.14% 1.79% 8.23% 5.60% 5.93% 6.08% 3.34%
----------------------------------------------------------
1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: June 30, 1995 2.47%
Worst Quarter:
Quarter ending: March 31, 1994 0.03%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99 Date To Date(2) One Year Five Years Inception
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Limited Term Income Fund (Class A) 12/14/92 0.35% 0.72% 5.29% 4.61%
-------------------------------------------------------------------------------------------------------------
Lehman Gov't/Corporate Index 1-3 Year Bond Index(3) 2.94% 3.15% 6.55% 5.53%
-------------------------------------------------------------------------------------------------------------
Merrill Lynch 1-Year U.S. Treasury Index(4) 3.14% 4.03% 5.85% 5.05%
-------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 2.90%.
(2) Year to date performance for the fund (with sales charges reflected) and the
indices is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index of one to three year Treasury securities, other
securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities, and investment-grade corporate debt securities. The since
inception performance of the index is calculated from 12/31/92. Previously,
the fund used the Merrill Lynch 1-Year U.S. Treasury Index as a benchmark.
Going forward, the fund will use the Lehman Government/Corporate Index 1-3
Year Bond Index as a comparison, because it is better suited to the fund's
investment strategies.
(4) An unmanaged index of one-year constant maturity Treasury bills. The since
inception performance of the index is calculated from 12/31/92.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets.
--------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 2.50%(2)
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees 0.25%
Other Expenses 0.17%
TOTAL 1.12%
--------------------------------------------------------------------------------
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
Waiver of Fund Expenses (0.52)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.60%
THE DISTRIBUTOR INTENDS TO LIMIT ITS 12b-1 FEE TO 0.15% DURING THE CURRENT
FISCAL YEAR. IN ADDITION, THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT
FISCAL YEAR SO THAT TOTAL FUND OPERATING EXPENSES DO NOT EXCEED 0.60%. FEE
WAIVERS MAY BE DISCONTINUED AT ANY TIME.
(2) Certain investors may qualify for reduced sales charges. Investments of $1
million or more on which no front-end sales charge is paid may be subject to
a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 361
3 years $ 597
5 years $ 851
10 years $1,579
2 FUND PROFILE - First American Limited Term Income Fund
<PAGE>
FIRST AMERICAN LIMITED TERM INCOME FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below).
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 2.50% 2.56% 2.25%
$ 50,000 - $ 99,999 2.00% 2.04% 1.75%
$100,000 - $249,999 1.50% 1.52% 1.25%
$250,000 - $499,999 1.00% 1.01% 0.75%
$500,000 - $999,999 0.75% 0.76% 0.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. The fund expects that, as a result of its investment objective and
strategy, its distributions will consist primarily of ordinary income.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPLTI(R)
3 FUND PROFILE - First American Limited Term Income Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
(*) BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
STRATEGIC INCOME
FUND
CLASS A, CLASS B,
AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN STRATEGIC INCOME FUND
--------------------------------------------------------------------------------
OBJECTIVE
Strategic Income Fund's objective is to provide investors with a high level of
current income.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Strategic Income Fund invests primarily (at
least 65% of its total assets) in a combination of: securities issued or
guaranteed by the U.S. government or its agencies or instrumentalities,
including mortgage-backed securities, and investment grade debt obligations
issued by domestic issuers; high-yield (non-investment grade) debt obligations
issued by domestic issuers; and investment grade and high-yield debt obligations
issued by foreign governments and other foreign issuers.
Based upon historical returns, the fund's advisor expects these three categories
of investments to have different returns and risks under similar market
conditions. The advisor relies on the differences in the expected performance of
each category to manage risks by allocating the fund's portfolio among the three
categories above. The advisor also seeks to enhance the fund's performance by
allocating more of its portfolio to the category that the advisor expects to
offer the best balance between risk and return. Normally, the fund's assets will
be invested in each of these three categories, with no more than 50% invested in
any one category. However, the fund may from time to time invest up to 100% of
its total assets in any one category if the advisor believes it will help the
fund achieve its objective without undue risk to principal.
The fund's investments may include securities which do not pay interest
currently, such as zero coupon securities and delayed interest securities. The
fund also may invest in payment-in-kind bonds, where interest is paid in other
securities rather than cash. In addition to debt obligations, the fund may
invest in preferred stock, convertible securities and equity securities,
including common stock and warrants. These investments may be denominated in
U.S. dollars or foreign currencies.
There is no minimum rating requirement for securities in which the fund may
invest (which means that the fund may invest in lower-rated securities, or
unrated securities of comparable quality, commonly referred to as "junk bonds").
In addition, there is no limitation on the average maturity or average effective
duration of securities held by the fund.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks, and other
institutions. It also may invest up to 25% of total assets in dollar roll
transactions. In a dollar roll transaction, the fund sells mortgage-backed
securities for delivery in the current month while contracting with the same
party to repurchase similar securities at a future date.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year.
You may obtain either or both of these reports at no cost by calling First
American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
RISKS OF FOREIGN SECURITIES. Investing in foreign securities involves risks not
typically associated with U.S. investing. Risks of foreign investing include
adverse currency fluctuations, potential political and economic instability,
limited liquidity and volatile prices of non-U.S. securities, limited
availability of information regarding non-U.S. companies, investment and
repatriation restrictions and foreign taxation. The fund's foreign securities
investments may include emerging markets, where the risks of foreign investing
are higher.
RISKS OF HIGH-YIELD SECURITIES. A significant portion of the fund's portfolio
may consist of lower-rated debt obligations, which are commonly called
"high-yield" securities or "junk bonds." High-yield securities generally have
more volatile prices and carry more risk to principal than investment grade
securities.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities, or the other party to a contract (such as a
securities lending agreement) may default on its obligations.
CALL RISK. During periods of falling interest rates, a bond issuer may "call" --
or repay -- its high-yielding bonds before their maturity date. The fund would
then be forced to invest the unanticipated proceeds at lower interest rates,
resulting in a decline in the fund's income.
RISKS OF MORTGAGE- AND ASSET-BACKED SECURITIES. Falling interest rates could
cause faster than expected prepayments of the obligations underlying mortgage-
and asset-backed securities, which the fund would have to invest at lower
interest rates. On the other hand, rising interest rates could cause prepayments
of the obligations to decrease, extending the life of mortgage- and asset-backed
securities with lower payment rates.
RISKS OF COMMON STOCKS. The fund's investments may include common stock and
warrants to purchase, or securities convertible into, common stocks. Stocks may
decline significantly in price over short or extended periods of time. Price
changes may occur in the market as a whole, or they may occur in only a
particular company, industry or sector of the market.
RISKS OF DOLLAR ROLL TRANSACTIONS. The use of mortgage dollar rolls could
increase the volatility of the fund's share price. It could also diminish the
fund's investment performance if the advisor does not predict mortgage
prepayments and interest rates correctly.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Strategic Income Fund
<PAGE>
FIRST AMERICAN STRATEGIC INCOME FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations below provide you with information on the fund's volatility and
performance. Of course, past performance does not guarantee future results.
The bar chart is intended to show you how performance of the fund's Class A
shares has varied from year to year. However, because Class A shares were first
offered in 1998, only one calendar year of information is available. The
performance of Class B and Class C shares will be lower due to their higher
expenses. Sales charges are not reflected in the chart; if they had been,
returns would be lower. The table compares the fund's performance for Class A
and Class B shares over different time periods to that of the fund's benchmark
index, which is a broad measure of market performance. However, because Class C
shares have not been offered for a full calendar year, no information is
presented for these shares. The fund's performance reflects sales charges and
fund expenses; the benchmark is unmanaged and has no expenses. Both the chart
and the table assume that all distributions have been reinvested.
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
3.19%
--------
1999
Best Quarter:
Quarter ending: December 31, 1999 2.88%
Worst Quarter:
Quarter ending: June 30, 1999 (0.63)%
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99 Date To Date(2) One Year Inception
--------------------------------------------------------------------------------
Strategic Income Fund (Class A) 7/24/98 (3.15)% (1.23)% (1.55)%
--------------------------------------------------------------------------------
Strategic Income Fund (Class B) 7/24/98 (4.16)% (2.34)% (2.44)%
--------------------------------------------------------------------------------
Lehman Aggregate Bond Index(3) 3.98% (0.83)% 2.45%
--------------------------------------------------------------------------------
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was (1.19)% for Class A and 0.72% for Class B.
(2) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index of Treasury securities, other securities issued or
guaranteed by the U.S. government or its agencies or instrumentalities,
including U.S. agency mortgage securities, and investment-grade corporate
debt securities. The since inception performance of the index is calculated
from 7/31/98.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets.
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS B CLASS C
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 4.25%(2) 0.00% 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(3) 5.00% 1.00%
ANNUAL MAINTENANCE FEE(4)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-------------------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00% 1.00%
Other Expenses(3) 0.26% 0.26% 0.20%
TOTAL(4) 1.21% 1.96% 1.90%
-------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
<TABLE>
<S> <C> <C> <C>
Waiver of Fund Expenses (0.06)% (0.06)% (0.35)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.15% 1.90% 1.55%
</TABLE>
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 1.15%, 1.90% AND 1.90%, RESPECTIVELY, FOR
CLASS A, CLASS B, AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT ANY
TIME.
(2) Certain investors may qualify for reduced sales charges.
(3) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(4) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
CLASS B CLASS B CLASS C CLASS C
assuming redemption assuming no redemption assuming redemption assuming no redemption
CLASS A at end of each period at end of each period at end of each period at end of each period
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 year $ 540 $ 696 $ 199 $ 391 $ 291
3 years $ 793 $1,015 $ 615 $ 691 $ 691
5 years $1,062 $1,257 $1,057 $1,116 $1,116
10 years $1,829 $2,091 $2,091 $2,300 $2,300
</TABLE>
2 FUND PROFILE - First American Strategic Income Fund
<PAGE>
FIRST AMERICAN STRATEGIC INCOME FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
Federated Global Investment Management Corp. is a subadvisor to the fund. The
sub-advisor has been retained by the fund's investment advisor and is paid a
portion of the advisory fee. Federated Global Investment Management Corp.
manages the fund's investments in investment grade and high-yield foreign
government and foreign corporate debt obligations.
The subadvisor and other subsidiaries of Federated Investors serve as investment
advisors to a number of investment companies and private accounts.
First American Asset Management manages the fund's investments in U.S.
government and investment grade domestic debt obligations, high-yield debt
obligations and U.S. dollar denominated foreign corporate debt obligations, and
determines how the fund's assets will be allocated among the three sectors in
which the fund invests. The subadvisor manages the fund's investments in
investment grade and high yield foreign government and foreign corporate debt
obligations.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class B
shares have a back-end sales load, which means that if you redeem your shares
within six years of purchase, you will pay a contingent deferred sales charge
(CDSC) that declines from 5% the first year the shares are held to 0% by the
beginning of the seventh year the shares are held. Class C shares have a 1%
front-end sales load and a contingent deferred sales charge (CDSC) of 1% if the
shares are redeemed within 18 months from the date of purchase. In addition to
the different sales-load structures between Class A, Class B and Class C shares,
the fees and expenses may vary (as first forth in the Fees and Expenses table
contained in this Profile). See an investment professional to help determine
which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 4.25% 4.44% 4.00%
$ 50,000 - $ 99,999 4.00% 4.17% 3.75%
$100,000 - $249,999 3.25% 3.36% 3.00%
$250,000 - $499,999 2.25% 2.30% 2.00%
$500,000 - $999,999 1.75% 1.78% 1.50%
$1 million and over 0% 0% 0%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. For most investors, fund dividends and
distributions are considered taxable whether they are reinvested or taken in
cash (unless your investment is in an IRA or other tax-advantaged account).
Dividends from the fund's net investment income and short-term capital gains are
taxable as ordinary income. Distributions of the fund's long-term capital gains
are taxable as long-term capital gains, regardless of how long you have held
your shares. The fund expects that, as a result of its investment objective and
strategy, its distributions will consist primarily of ordinary income.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPSI(R)
3 FUND PROFILE - First American Strategic Income Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
(*) BOND FUNDS
* TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
FIXED INCOME
FUND
U.S. BANCORP
401(k) SAVINGS PLAN
CLASS Y SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN FIXED INCOME FUND
--------------------------------------------------------------------------------
OBJECTIVE
Fixed Income Fund's objective is to provide investors with high current income
consistent with limited risk to capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Fixed Income Fund invests in investment grade
debt securities, such as: U.S. government securities, (securities issued or
guaranteed by the U.S. government or its agencies or instrumentalities),
including zero coupon securities; mortgage- and asset-backed securities; and
corporate debt obligations.
Fund managers select securities using a "top-down" approach, which begins with
the formulation of their general economic outlook. Following this, various
sectors and industries are analyzed and selected for investment. Finally, fund
managers select individual securities within these sectors or industries.
Debt securities in the fund will be rated investment grade at the time of
purchase or, if unrated, determined to be of comparable quality by the fund's
advisor. If the rating of a security is reduced or discontinued after purchase,
the fund is not required to sell the security, but may consider doing so. At
least 65% of the fund's debt securities must be either U.S. government
securities or securities that have received at least an A or equivalent rating.
Unrated securities will not exceed 25% of the fund's total assets.
At least 65% of the fund's total assets will be invested in fixed rate
obligations. The fund may invest up to 15% of its total assets in foreign
securities payable in U.S. dollars.
Under normal market conditions the fund attempts to maintain a weighted average
effective maturity for its portfolio securities of 15 years or less and an
average effective duration of three to eight years. The fund's weighted average
effective maturity and effective duration are measures of how the fund may react
to interest rate changes.
To generate additional income, the fund may lend securities representing up to
one-third of the value of its total assets to broker-dealers, banks and other
institutions. It also may invest up to 25% of total assets in dollar roll
transactions. In a dollar roll transaction, the fund sells mortgage-backed
securities for delivery in the current month while contracting with the same
party to repurchase similar securities at a future date.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities, or the other party to a contract (such as a
securities lending agreement) may default on its obligations.
CALL RISK. During periods of falling interest rates, a bond issuer may "call" --
or repay -- its high-yielding bonds before their maturity date. The fund would
then be forced to invest the unanticipated proceeds at lower interest rates,
resulting in a decline in the fund's income.
RISKS OF MORTGAGE- AND ASSET-BACKED SECURITIES. Falling interest rates could
cause faster than expected prepayments of the obligations underlying mortgage-
and asset-backed securities, which the fund would have to invest at lower
interest rates. On the other hand, rising interest rates could cause prepayments
of the obligations to decrease, extending the life of mortgage- and asset-backed
securities with lower payment rates.
FOREIGN SECURITY RISK. Securities of foreign issuers, even when
dollar-denominated and publicly traded in the United States, may involve risks
not associated with the securities of domestic issuers, including the risks of
adverse currency fluctuations and of political or social instability or
diplomatic developments that could adversely affect the securities.
RISKS OF DOLLAR ROLL TRANSACTIONS. The use of mortgage dollar rolls could
increase the volatility of the fund's share price. It could also diminish the
fund's investment performance if the advisor does not predict mortgage
prepayments and interest rates correctly.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Fixed Income Fund
<PAGE>
FIRST AMERICAN FIXED INCOME FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE INFORMATION
The illustrations below provide you with information on the fund's volatility
and performance. Of course, past performance does not guarantee future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. The table compares the fund's performance over different time
periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects fund expenses; the benchmark
is unmanaged and has no expenses. Both the chart and the table assume that all
distributions have been reinvested.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
17.29% 3.46% 8.85% 8.93% -2.76%
----------------------------------------------
1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: June 30, 1995 6.13%
Worst Quarter:
Quarter ending: March 31, 1996 (1.63)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99 Date To Date(2) One Year Five Years Inception
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Fixed Income Fund 2/4/94 4.04% (2.76)% 6.95% 5.33%
-------------------------------------------------------------------------------------------
Lehman Aggregate Bond Index(3) 3.98% (0.83)% 7.73% 6.13%
-------------------------------------------------------------------------------------------
Lehman Gov't/Corp Bond Index(4) 4.16% (2.15)% 7.60% 5.96%
-------------------------------------------------------------------------------------------
</TABLE>
(1) Total return for the period from 1/1/2000 to 6/30/2000 was 4.04%.
(2) Year to date performance for the fund and the indices is for the period from
1/1/2000 to 6/30/2000.
(3) An unmanaged index composed of the Lehman Government/Corporate Bond Index,
the Lehman Mortgage Backed Securities Index and Lehman Asset Backed
Securities Index. The Lehman Government/Corporate Bond Index is comprised of
Treasury securities, other securities issued or guaranteed by the U.S.
government or its agencies or instrumentalities, including U.S. agency
mortgage securities, and investment-grade corporate debt securities. The
Lehman Asset-Backed Index is composed of debt securities backed by credit
card, auto and home equity loans that are rated investment grade or higher.
The since inception performance of the index is calculated from 2/28/94.
Previously, the fund used the Lehman Government/Corporate Bond Index as a
benchmark. Going forward, the fund will use the Lehman Aggregate Bond Index
as a comparison, because it is better suited to the fund's investment
strategies.
(4) An unmanaged index comprised of Treasury securities, other securities issued
or guaranteed by the U.S. government or its agencies or instrumentalities,
including U.S. agency mortgage securities, and investment grade securities.
The since inception performance of the index is calculated from 2/28/94.
--------------------------------------------------------------------------------
FEES AND EXPENSES
The fund does not impose any sales charges (loads) or other fees when you buy,
sell or exchange shares. However, when you hold shares of the fund you
indirectly pay a portion of the fund's operating expenses. These expenses are
deducted from fund assets. The figures below are based on expenses during the
fiscal year ended September 30, 1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) None
MAXIMUM DEFERRED SALES CHARGE (LOAD) None
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees None
Other Expenses 0.19%
TOTAL 0.89%
--------------------------------------------------------------------------------
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor. The net expenses the fund
actually paid after waivers for the fiscal year ended September 30, 1999,
were:
Waiver of Fund Expenses (0.19)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.70%
THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT FISCAL YEAR SO THAT TOTAL
FUND OPERATING EXPENSES DO NOT EXCEED 0.70%. FEE WAIVERS MAY BE DISCONTINUED AT
ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 91
3 years $ 284
5 years $ 493
10 years $1,096
2 FUND PROFILE - First American Fixed Income Fund
<PAGE>
FIRST AMERICAN FIXED INCOME FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
INVESTMENT OPTIONS
You may review and make changes to your investment options by calling U-Connect
at 1-800-806-7009 or logging on to the U.S. Bancorp 401(k) Savings Plan Web site
at www.rsweb.com/60587.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Distributions may be requested by calling U-Connect at 1-800-806-7009.
Distributions from the U.S. Bancorp 401(k) Savings Plan are generally taxable
and subject to withholding in the current year unless the participant requests a
direct rollover to an IRA or another qualified plan. Certain distributions such
as distributions from an employee's after-tax account or, in some circumstances,
portions of distributions made after a participant has attained age 70 1/2 may
not be rolled over to an IRA or another qualified plan. Generally, an employee's
distribution will be taxed at ordinary income tax rates. Distributions made
before a participant attains age 59 1/2 are subject to a 10% penalty tax unless
an exception applies.
Participants in the U.S. Bancorp 401(k) Savings Plan will not be taxed on pretax
earnings reductions or on employer contributions at the time such amounts are
allocated to their accounts. Pretax contributions, however, are subject to tax
under FICA and FUTA. Participants will not be taxed on the income earned on any
securities in the trust fund until they are withdrawn or distributed under the
Plan.
To inquire about or initiate loans against your 401(k) Savings Plan, call
U-Connect at 1-800-806-7009 or log on to the Internet Web site at
www.rsweb.com/60587.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPFI(I)
3 FUND PROFILE - First American Fixed Income Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
(*) TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
CALIFORNIA
INTERMEDIATE
TAX FREE
FUND
CLASS A SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN CALIFORNIA INTERMEDIATE TAX FREE FUND
--------------------------------------------------------------------------------
OBJECTIVE
California Intermediate Tax Free Fund has an objective of providing current
income that is exempt from both federal income tax and California state income
tax to the extent consistent with preservation of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, California Intermediate Tax Free Fund invests at
least 80% of its total assets in municipal securities that pay interest that is
exempt from federal and California income tax, including the federal alternative
minimum tax. The fund normally may invest up to 20% of its net assets in taxable
obligations, including obligations the interest on which is subject to the
federal alternative minimum tax. The fund may invest in: "general obligation"
bonds, which are backed by the full faith, credit and taxing power of the
issuer; "revenue" bonds, which are payable only from the revenues generated by a
specific project or from another specific revenue source; participation
interests in municipal leases; zero coupon municipal securities, which pay no
cash income to their holders until they mature; and inverse floating rate
municipal securities (up to 10% of the fund's total assets).
In selecting securities for the fund, fund managers first determine their
economic outlook and the direction in which inflation and interest rates are
expected to move. In selecting individual securities consistent with this
outlook, fund managers evaluate factors such as credit quality, yield, maturity,
liquidity, and portfolio diversification.
The fund only invests in securities that, at the time of purchase, are either
rated investment grade or are unrated and determined to be of comparable quality
by the fund's advisor. If the rating of a security is reduced or discontinued
after purchase, the fund is not required to sell the security, but may consider
doing so. Unrated securities will not exceed 25% of the fund's total assets (not
including unrated securities that have been pre-refunded with U.S. government
securities and U.S. government agency securities).
The fund will attempt to maintain the weighted average maturity of its portfolio
securities at three to 10 years under normal market conditions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
Inverse floating rate municipal securities may be highly volatile as interest
rates rise or fall.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities. The revenue bonds and municipal lease
obligations in which the fund invests may entail greater credit risk than the
fund's investments in general obligation bonds.
CALL RISK. Some municipal securities held by the fund may be redeemed by the
issuer, or "called," prior to their stated maturity dates. If a security is
redeemed during a time of declining interest rates, the fund may be unable to
reinvest in securities providing as high a level of income.
RISKS OF MUNICIPAL LEASE OBLIGATIONS. Many municipal leases and contracts
contain "non-appropriation" clauses that provide that the governmental issuer
has no obligation to make future payments under the lease or contract unless
money is appropriated for this purpose by the appropriate legislative body.
POLITICAL AND ECONOMIC RISK. Because the fund invests primarily in municipal
securities issued by the state of California and its political subdivisions, the
fund will be particularly affected by political and economic conditions and
developments in that state. See the Statement of Additional Information for
details. The value of municipal securities owned by the fund also may be
adversely affected by future changes in federal or state income tax laws,
including rate reductions or the imposition of a flat tax.
RISKS OF NON-DIVERSIFICATION. The fund is non-diversified. This means that it
may invest a larger portion of its assets in a limited number of issuers than a
diversified fund. Because a relatively high percentage of the fund's assets may
be invested in the securities of a limited number of issuers, the fund may be
more susceptible to any single economic, political, or regulatory occurrence
than a diversified fund.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. Sales charges are not reflected in the chart; if they had been,
returns would be lower. The table compares the fund's performance over different
time periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects sales charges and fund
expenses; the benchmark is unmanaged and has no expenses. Both the chart and the
table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American California Intermediate Tax Free Fund
<PAGE>
FIRST AMERICAN CALIFORNIA INTERMEDIATE TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2)
[BAR CHART]
5.82% -0.90%
------------------
1998 1999
Best Quarter:
Quarter ending: September 30, 1998 3.77%
Worst Quarter:
Quarter ending: June 30, 1999 (1.86)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99(2) Date To Date(3) One Year Inception
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California Intermediate Tax Free Fund 8/8/97 1.61% (3.36)% 2.11%
---------------------------------------------------------------------------------------------
Lehman Brothers 7-Year Municipal Bond Index(4) 3.24% (0.14)% 3.98%
---------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 4.23%.
(2) The fund has previously presented the performance history of an unregistered
predecessor common trust fund for periods prior to the fund's registration
under the Investment Company Act of 1940 on 8/8/97. The fund has determined
that, going forward, it will present performance information only for
periods subsequent to the fund's registration.
(3) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(4) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with maturities between six and eight years. The since inception
performance for the index is calculated from 8/31/97.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 2.50%(2)
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees 0.25%
Other Expenses 0.22%
TOTAL 1.17%
--------------------------------------------------------------------------------
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor and the distributor. The net
expenses the fund actually paid after waivers for the fiscal year ended
September 30, 1999, were:
Waiver of Fund Expenses (0.47)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.70%
THE DISTRIBUTOR INTENDS TO WAIVE PAYMENT OF ALL 12b-1 FEES DURING THE CURRENT
FISCAL YEAR. IN ADDITION, THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT
FISCAL YEAR SO THAT TOTAL FUND OPERATING EXPENSES DO NOT EXCEED 0.70%. FEE
WAIVERS MAY BE DISCONTINUED AT ANY TIME.
(2) Certain investors may qualify for reduced sales charges. Investments of $1
million or more on which no front-end sales charge is paid may be subject to
a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 366
3 years $ 612
5 years $ 878
10 years $1,635
2 FUND PROFILE - First American California Intermediate Tax Free Fund
<PAGE>
FIRST AMERICAN CALIFORNIA INTERMEDIATE TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below).
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 2.50% 2.56% 2.25%
$ 50,000 - $ 99,999 2.00% 2.04% 1.75%
$100,000 - $249,999 1.50% 1.52% 1.25%
$250,000 - $499,999 1.00% 1.01% 0.75%
$500,000 - $999,999 0.75% 0.76% 0.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. The fund intends to meet certain federal
tax requirements so that distributions of tax-exempt interest income may be
treated as "exempt-interest dividends." These dividends are not subject to
regular federal income tax. However, the fund may invest up to 20% of its net
assets in municipal securities the interest on which is subject to the
alternative minimum tax. Any portion of exempt-interest dividends attributable
to interest on these securities may increase some shareholders' alternative
minimum tax. The fund expects that its distributions will consist primarily of
exempt-interest dividends.
The fund intends to comply with certain California state tax requirements so
that dividends it pays that are attributable to interest on California municipal
securities will be excluded from the California taxable income of individuals,
trusts and estates. To meet these requirements, at least 50% of the value of the
fund's total assets must consist of obligations which pay interest that is
exempt from California personal income tax. Exempt-interest dividends are not
excluded from the California taxable income of corporations and financial
institutions. In addition, dividends derived from interest paid on California
municipal bonds (including securities treated for federal purposes as private
activity bonds) will not be subject to the alternative minimum tax that
California imposes on individuals, trusts, and estates.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FDCAINTF(R)
3 FUND PROFILE - First American California Intermediate Tax Free Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
(*) TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
COLORADO
INTERMEDIATE
TAX FREE
FUND
CLASS A SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN COLORADO INTERMEDIATE TAX FREE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Colorado Intermediate Tax Free Fund has an objective of providing current income
that is exempt from both federal income tax and Colorado state income tax to the
extent consistent with preservation of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Colorado Intermediate Tax Free Fund invests at
least 80% of its total assets in municipal securities that pay interest that is
exempt from federal and Colorado income tax, including the federal alternative
minimum tax. The fund normally may invest up to 20% of its net assets in taxable
obligations, including obligations the interest on which is subject to the
federal alternative minimum tax. The fund may invest in: "general obligation"
bonds, which are backed by the full faith, credit and taxing power of the
issuer; "revenue" bonds, which are payable only from the revenues generated by a
specific project or from another specific revenue source; participation
interests in municipal leases; zero coupon municipal securities, which pay no
cash income to their holders until they mature; and inverse floating rate
municipal securities (up to 10% of the fund's total assets).
In selecting securities for the fund, fund managers first determine their
economic outlook and the direction in which inflation and interest rates are
expected to move. In selecting individual securities consistent with this
outlook, fund managers evaluate factors such as credit quality, yield, maturity,
liquidity, and portfolio diversification.
The fund only invests in securities that, at the time of purchase, are either
rated investment grade or are unrated and determined to be of comparable quality
by the fund's advisor. If the rating of a security is reduced or discontinued
after purchase, the fund is not required to sell the security, but may consider
doing so. Unrated securities will not exceed 25% of the fund's total assets (not
including unrated securities that have been pre-refunded with U.S. government
securities and U.S. government agency securities).
The fund will attempt to maintain the weighted average maturity of its portfolio
securities at three to 10 years under normal market conditions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
Inverse floating rate securities may be highly volatile as interest rates rise
or fall.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities. The revenue bonds and municipal lease
obligations in which the fund invests may entail greater credit risk than the
fund's investments in general obligation bonds.
CALL RISK. Some municipal securities held by the fund may be redeemed by the
issuer, or "called," prior to their stated maturity dates. If a security is
redeemed during a time of declining interest rates, the fund may be unable to
reinvest in securities providing as high a level of income.
RISKS OF MUNICIPAL LEASE OBLIGATIONS. Many municipal leases and contracts
contain "non-appropriation" clauses that provide that the governmental issuer
has no obligation to make future payments under the lease or contract unless
money is appropriated for this purpose by the appropriate legislative body.
POLITICAL AND ECONOMIC RISK. Because the fund invests primarily in municipal
securities issued by the state of Colorado and its political subdivisions, the
fund will be particularly affected by political and economic conditions and
developments in that state. See the Statement of Additional Information for
details. The value of municipal securities owned by the fund also may be
adversely affected by future changes in federal or state income tax laws,
including rate reductions or the imposition of a flat tax.
RISKS OF NON-DIVERSIFICATION. The fund is non-diversified. This means that it
may invest a larger portion of its assets in a limited number of issuers than a
diversified fund. Because a relatively high percentage of the fund's assets may
be invested in the securities of a limited number of issuers, the fund may be
more susceptible to any single economic, political or regulatory occurrence than
a diversified fund.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. Sales charges are not reflected in the chart; if they had been,
returns would be lower. The table compares the fund's performance over different
time periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects sales charges and fund
expenses; the benchmark is unmanaged and has no expenses. Both the chart and the
table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Colorado Intermediate Tax Free Fund
<PAGE>
FIRST AMERICAN COLORADO INTERMEDIATE TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
12.33% 3.86% 7.07% 5.44% -1.58%
---------------------------------------------
1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: March 31, 1995 5.18%
Worst Quarter:
Quarter ending: June 30, 1999 (1.85)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year Since
AS OF 12/31/99 Date To Date(2) One Year Five Years Inception
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Colorado Intermediate Tax Free Fund 4/4/94 0.23% (4.08)% 4.78% 4.66%
---------------------------------------------------------------------------------------------------------
Lehman Brothers 7-Year Municipal Bond Index(3) 3.24% (0.14)% 6.36% 5.65%
---------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 2.79%.
(2) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with maturities between six and eight years. The since inception
performance for the index is calculated from 4/30/94.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 2.50%(2)
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees 0.25%
Other Expenses 0.20%
TOTAL 1.15%
--------------------------------------------------------------------------------
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor and the distributor. The net
expenses the fund actually paid after waivers for the fiscal year ended
September 30, 1999, were:
Waiver of Fund Expenses (0.45)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.70%
THE DISTRIBUTOR INTENDS TO WAIVE PAYMENT OF ALL 12b-1 FEES DURING THE CURRENT
FISCAL YEAR. IN ADDITION, THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT
FISCAL YEAR SO THAT TOTAL OPERATING EXPENSES DO NOT EXCEED 0.70%. FEE WAIVERS
MAY BE DISCONTINUED AT ANY TIME.
(2) Certain investors may qualify for reduced sales charges. Investments of $1
million or more on which no front-end sales charge is paid may be subject to
a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 364
3 years $ 606
5 years $ 867
10 years $1,613
2 FUND PROFILE - First American Colorado Intermediate Tax Free Fund
<PAGE>
FIRST AMERICAN COLORADO INTERMEDIATE TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below).
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 2.50% 2.56% 2.25%
$ 50,000 - $ 99,999 2.00% 2.04% 1.75%
$100,000 - $249,999 1.50% 1.52% 1.25%
$250,000 - $499,999 1.00% 1.01% 0.75%
$500,000 - $999,999 0.75% 0.76% 0.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. The fund intends to meet certain federal
tax requirements so that distributions of tax-exempt interest income may be
treated as "exempt-interest dividends." These dividends are not subject to
regular federal income tax. However, the fund may invest up to 20% of its net
assets in municipal securities the interest on which is subject to the
alternative minimum tax. Any portion of exempt-interest dividends attributable
to interest on these securities may increase some shareholders' alternative
minimum tax. The fund expects that its distributions will consist primarily of
exempt-interest dividends.
Dividends paid by Colorado Intermediate Tax Free Fund will be exempt from
Colorado income taxes for individuals, trusts, estates, and corporations to the
extent that they are derived from interest on Colorado municipal securities. In
addition, dividends derived from interest on Colorado municipal securities
(including securities treated for federal purposes as private activity bonds)
will not be subject to the alternative minimum tax that Colorado imposes on
individuals, trusts, and estates.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPCOINTF(R)
3 FUND PROFILE - First American Colorado Intermediate Tax Free Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
(*) TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
INTERMEDIATE
TAX FREE
FUND
CLASS A SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN INTERMEDIATE TAX FREE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Intermediate Tax Free Fund has an objective of providing current income that is
exempt from federal income tax to the extent consistent with preservation of
capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Intermediate Tax Free Fund invests at least 80%
of its total assets in municipal securities that pay interest that is exempt
from federal income tax, including the federal alternative minimum tax. The fund
normally may invest up to 20% of its net assets in taxable obligations,
including obligations the interest on which is subject to the federal
alternative minimum tax. The fund may invest in: "general obligation" bonds,
which are backed by the full faith, credit, and taxing power of the issuer;
"revenue" bonds, which are payable only from the revenues generated by a
specific project or from another specific revenue source; participation
interests in municipal leases; zero coupon municipal securities, which pay no
cash income to their holders until they mature; and inverse floating rate
municipal securities (up to 10% of the fund's total assets).
In selecting securities for the fund, fund managers first determine their
economic outlook and the direction in which inflation and interest rates are
expected to move. In selecting individual securities consistent with this
outlook, fund managers evaluate factors such as credit quality, yield, maturity,
liquidity, and portfolio and geographical diversification.
The fund only invests in securities that, at the time of purchase, are either
rated investment grade or are unrated and determined to be of comparable quality
by the fund's advisor. If the rating of a security is reduced or discontinued
after purchase, the fund is not required to sell the security, but may consider
doing so. Unrated securities will not exceed 25% of the fund's total assets (not
including unrated securities that have been pre-refunded with U.S. government
securities and U.S. government agency securities).
The fund will attempt to maintain the weighted average maturity of its portfolio
securities at 3 to 10 years under normal market conditions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
Inverse floating rate securities may be highly volatile as interest rates rise
or fall.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities. The revenue bonds and municipal lease
obligations in which the fund invests may entail greater credit risk than the
fund's investments in general obligation bonds.
CALL RISK. Some municipal securities held by the fund may be redeemed by the
issuer, or "called," prior to their stated maturity dates. If a security is
redeemed during a time of declining interest rates, the fund may be unable to
reinvest in securities providing as high a level of income.
RISKS OF MUNICIPAL LEASE OBLIGATIONS. Many municipal leases and contracts
contain "non-appropriation" clauses that provide that the governmental issuer
has no obligation to make future payments under the lease or contract unless
money is appropriated for this purpose by the appropriate legislative body.
POLITICAL AND ECONOMIC RISK. The value of municipal securities owned by the fund
may be adversely affected by state and local political and economic conditions
and developments, or by future changes in federal or state income tax laws,
including rate reductions or the imposition of a flat tax.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. Sales charges are not reflected in the chart; if they had been,
returns would be lower. The table compares the fund's performance over different
time periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects sales charges and fund
expenses; the benchmark is unmanaged and has no expenses. Both the chart and the
table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Intermediate Tax Free Fund
<PAGE>
FIRST AMERICAN INTERMEDIATE TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
5.54% 8.44 6.49% 8.20% -2.95% 12.89% 3.72% 6.79% 5.38% -1.46%
--------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: March 31, 1995 5.10%
Worst Quarter:
Quarter ending: March 31, 1994 (4.10)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year
AS OF 12/31/99 Date To Date(2) One Year Five Years Ten Years
<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------
Intermediate Tax Free Fund 12/22/87 0.54% (3.93)% 4.83% 4.94%
-------------------------------------------------------------------------------------------------------
Lehman 7-Year Municipal Bond Index(3) 3.24% (0.14)% 6.36% 6.60%
-------------------------------------------------------------------------------------------------------
Lehman Brothers 7-Year G.O. Index(4) 3.20% (0.17)% 6.50% 6.56%
-------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was (3.08)%.
(2) Year to date performance for the fund (with sales charges reflected) and the
indices is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with maturities between six and eight years. Previously, the fund used
the Lehman 7-Year G.O. Index as a benchmark. Going forward, the fund will
use the Lehman 7-Year Municipal Bond Index as a comparison, because it is
better suited to the fund's investment strategies.
(4) An unmanaged index comprised of fixed rate, investment grade, general
obligation tax-exempt bonds with maturities between six and eight years.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 2.50%(2)
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees 0.25%
Other Expenses 0.17%
TOTAL 1.12%
--------------------------------------------------------------------------------
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor and the distributor. The net
expenses the fund actually paid after waivers for the fiscal year ended
September 30, 1999, were:
Waiver of Fund Expenses (0.42)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.70%
THE DISTRIBUTOR INTENDS TO WAIVE PAYMENT OF ALL 12b-1 FEES DURING THE CURRENT
FISCAL YEAR. IN ADDITION, THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT
FISCAL YEAR SO THAT TOTAL FUND OPERATING EXPENSES DO NOT EXCEED 0.70%. FEE
WAIVERS MAY BE DISCONTINUED AT ANY TIME.
(2) Certain investors may qualify for reduced sales charges. Investments of $1
million or more on which no front-end sales charge is paid may be subject to
a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 361
3 years $ 597
5 years $ 851
10 years $1,579
2 FUND PROFILE - First American Intermediate Tax Free Fund
<PAGE>
FIRST AMERICAN INTERMEDIATE TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below).
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 2.50% 2.56% 2.25%
$ 50,000 - $ 99,999 2.00% 2.04% 1.75%
$100,000 - $249,999 1.50% 1.52% 1.25%
$250,000 - $499,999 1.00% 1.01% 0.75%
$500,000 - $999,999 0.75% 0.76% 0.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. The fund intends to meet certain federal
tax requirements so that distributions of tax-exempt interest income may be
treated as "exempt-interest dividends." These dividends are not subject to
regular federal income tax. However, the fund may invest up to 20% of its net
assets in municipal securities the interest on which is subject to the
alternative minimum tax. Any portion of exempt-interest dividends attributable
to interest on these securities may increase some shareholders' alternative
minimum tax. The fund expects that its distributions will consist primarily of
exempt-interest dividends.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPINTF(R)
3 FUND PROFILE - First American Intermediate Tax Free Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
(*) TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
MINNESOTA
INTERMEDIATE
TAX FREE
FUND
CLASS A SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN MINNESOTA INTERMEDIATE TAX FREE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Minnesota Intermediate Tax Free Fund has an objective of providing current
income that is exempt from both federal income tax and Minnesota state income
tax to the extent consistent with preservation of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Minnesota Intermediate Tax Free Fund invests at
least 80% of its total assets in municipal securities that pay interest that is
exempt from federal and Minnesota income tax, including federal and state of
Minnesota alternative minimum tax. The fund normally may invest up to 20% of its
net assets in taxable obligations, including obligations the interest on which
is subject to federal and state of Minnesota alternative minimum tax. The fund
may invest in: "general obligation" bonds, which are backed by the full faith,
credit, and taxing power of the issuer; "revenue" bonds, which are payable only
from the revenues generated by a specific project or from another specific
revenue source; participation interests in municipal leases; zero coupon
municipal securities, which pay no cash income to their holders until they
mature; and inverse floating rate municipal securities (up to 10% of the fund's
total assets).
In selecting securities for the fund, fund managers first determine their
economic outlook and the direction in which inflation and interest rates are
expected to move. In selecting individual securities consistent with this
outlook, fund managers evaluate factors such as credit quality, yield, maturity,
liquidity, and portfolio diversification.
The fund only invests in securities that, at the time of purchase, are either
rated investment grade or are unrated and determined to be of comparable quality
by the fund's advisor. If the rating of a security is reduced or discontinued
after purchase, the fund is not required to sell the security, but may consider
doing so. Unrated securities will not exceed 25% of the fund's total assets (not
including unrated securities that have been pre-refunded with U.S. government
securities and U.S. government agency securities).
The fund will attempt to maintain the weighted average maturity of its portfolio
securities at three to 10 years under normal market conditions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
Inverse floating rate municipal securities may be highly volatile as interest
rates rise or fall.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities. The revenue bonds and municipal lease
obligations in which the fund invests may entail greater credit risk than the
fund's investments in general obligation bonds.
CALL RISK. Some municipal securities held by the fund may be redeemed by the
issuer, or "called," prior to their stated maturity dates. If a security is
redeemed during a time of declining interest rates, the fund may be unable to
reinvest in securities providing as high a level of income.
RISKS OF MUNICIPAL LEASE OBLIGATIONS. Many municipal leases and contracts
contain "non-appropriation" clauses that provide that the governmental issuer
has no obligation to make future payments under the lease or contract unless
money is appropriated for this purpose by the appropriate legislative body.
POLITICAL AND ECONOMIC RISK. Because the fund invests primarily in municipal
securities issued by the state of Minnesota and its political subdivisions, the
fund will be particularly affected by political and economic conditions and
developments in that state. See the Statement of Additional Information for
details. The value of municipal securities owned by the fund also may be
adversely affected by future changes in federal or state income tax laws,
including rate reductions or the imposition of a flat tax.
RISKS OF NON-DIVERSIFICATION. The fund is non-diversified. This means that it
may invest a larger portion of its assets in a limited number of issuers than a
diversified fund. Because a relatively high percentage of the fund's assets may
be invested in the securities of a limited number of issuers, the fund may be
more susceptible to any single economic, political or regulatory occurrence than
a diversified fund.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. Sales charges are not reflected in the chart; if they had been,
returns would be lower. The table compares the fund's performance over different
time periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects sales charges and fund
expenses; the benchmark is unmanaged and has no expenses. Both the chart and the
table assume that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Minnesota Intermediate Tax Free Fund
<PAGE>
FIRST AMERICAN MINNESOTA INTERMEDIATE TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1)
[BAR CHART]
12.67% 3.82% 6.74% 5.34% -1.26%
-------------------------------------------
1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: March 31, 1995 5.30%
Worst Quarter:
Quarter ending: June 30, 1999 (1.62)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year To Since
AS OF 12/31/99 Date Date(2) One Year Five Years Inception
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Minnesota Intermediate Tax Free Fund 2/25/94 0.37% (3.72)% 4.84% 3.64%
-----------------------------------------------------------------------------------------------------------
Lehman Brothers 7-Year Municipal Bond Index(3) 3.24% (0.14)% 6.36% 5.13%
-----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 2.98%.
(2) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(3) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with maturities between six and eight years. The since inception
performance for the index is calculated from 2/28/94.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 2.50%(2)
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees 0.25%
Other Expenses 0.17%
TOTAL 1.12%
--------------------------------------------------------------------------------
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor and the distributor. The net
expenses the fund actually paid after waivers for the fiscal year ended
September 30, 1999, were:
Waiver of Fund Expenses (0.42)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.70%
THE DISTRIBUTOR INTENDS TO WAIVE PAYMENT OF ALL 12b-1 FEES DURING THE CURRENT
FISCAL YEAR. IN ADDITION, THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT
FISCAL YEAR SO THAT TOTAL FUND OPERATING EXPENSES DO NOT EXCEED 0.70%. FEE
WAIVERS MAY BE DISCONTINUED AT ANY TIME.
(2) Certain investors may qualify for reduced sales charges. Investments of $1
million or more on which no front-end sales charge is paid may be subject to
a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 361
3 years $ 597
5 years $ 851
10 years $1,579
2 FUND PROFILE - First American Minnesota Intermediate Tax Free Fund
<PAGE>
FIRST AMERICAN MINNESOTA INTERMEDIATE TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below).
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 2.50% 2.56% 2.25%
$ 50,000 - $ 99,999 2.00% 2.04% 1.75%
$100,000 - $249,999 1.50% 1.52% 1.25%
$250,000 - $499,999 1.00% 1.01% 0.75%
$500,000 - $999,999 0.75% 0.76% 0.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. The fund intends to meet certain federal
tax requirements so that distributions of tax-exempt interest income may be
treated as "exempt-interest dividends." These dividends are not subject to
regular federal income tax. However, the fund may invest up to 20% of its net
assets in municipal securities the interest on which is subject to the
alternative minimum tax. Any portion of exempt-interest dividends attributable
to interest on these securities may increase some shareholders' alternative
minimum tax. The fund expects that its distributions will consist primarily of
exempt-interest dividends.
Minnesota Intermediate Tax Free Fund intends to comply with certain state tax
requirements so that dividends it pays that are attributable to interest on
Minnesota municipal securities will be excluded from the Minnesota taxable net
income of individuals, estates, and trusts. To meet these requirements, at least
95% of the exempt-interest dividends paid by the fund must be derived from
interest income on Minnesota municipal securities. A portion of the fund's
dividends may be subject to the Minnesota alternative minimum tax.
Exempt-interest dividends are not excluded from the Minnesota taxable income of
corporations and financial institutions.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPMNINTF(R)
3 FUND PROFILE - First American Minnesota Intermediate Tax Free Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
(*) TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
OREGON
INTERMEDIATE
TAX FREE
FUND
CLASS A SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN OREGON INTERMEDIATE TAX FREE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Oregon Intermediate Tax Free Fund has an objective of providing current income
that is exempt from both federal income tax and Oregon state income tax to the
extent consistent with preservation of capital.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Oregon Intermediate Tax Free Fund invests at
least 80% of its total assets in municipal securities that pay interest that is
exempt from federal and Oregon income tax, including the federal alternative
minimum tax. The fund normally may invest up to 20% of its net assets in taxable
obligations, including obligations the interest on which is subject to the
federal alternative minimum tax. The fund may invest in: "general obligation"
bonds, which are backed by the full faith, credit, and taxing power of the
issuer; "revenue" bonds, which are payable only from the revenues generated by a
specific project or from another specific revenue source; participation
interests in municipal leases; zero coupon municipal securities, which pay no
cash income to their holders until they mature; and inverse floating rate
municipal securities (up to 10% of the fund's total assets).
In selecting securities for the fund, fund managers first determine their
economic outlook and the direction in which inflation and interest rates are
expected to move. In selecting individual securities consistent with this
outlook, fund managers evaluate factors such as credit quality, yield, maturity,
liquidity, and portfolio diversification.
The fund only invests in securities that, at the time of purchase, are either
rated investment grade or are unrated and determined to be of comparable quality
by the fund's advisor. If the rating of a security is reduced or discontinued
after purchase, the fund is not required to sell the security, but may consider
doing so. Unrated securities will not exceed 25% of the fund's total assets (not
including unrated securities that have been pre-refunded with U.S. government
securities and U.S. government agency securities).
The fund will attempt to maintain the weighted average maturity of its portfolio
securities at three to 10 years under normal market conditions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
Inverse floating rate municipal securities may be highly volatile as interest
rates rise or fall.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities. The revenue bonds and municipal lease
obligations in which the fund invests may entail greater credit risk than the
fund's investments in general obligation bonds.
CALL RISK. Some municipal securities held by the fund may be redeemed by the
issuer, or "called," prior to their stated maturity dates. If a security is
redeemed during a time of declining interest rates, the fund may be unable to
reinvest in securities providing as high a level of income.
RISKS OF MUNICIPAL LEASE OBLIGATIONS. Many municipal leases and contracts
contain "non-appropriation" clauses that provide that the governmental issuer
has no obligation to make future payments under the lease or contract unless
money is appropriated for this purpose by the appropriate legislative body.
POLITICAL AND ECONOMIC RISK. Because the fund invests primarily in municipal
securities issued by the state of Oregon and its political subdivisions, the
fund will be particularly affected by political and economic conditions and
developments in that state. See the Statement of Additional Information for
details. The value of municipal securities owned by the fund also may be
adversely affected by future changes in federal or state income tax laws,
including rate reductions or the imposition of a flat tax.
RISKS OF NON-DIVERSIFICATION. The fund is non-diversified. This means that it
may invest a larger portion of its assets in a limited number of issuers than a
diversified fund. Because a relatively high percentage of the fund's assets may
be invested in the securities of a limited number of issuers, the fund may be
more susceptible to any single economic, political or regulatory occurrence than
a diversified fund.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's shares has varied from
year to year. Sales charges are not reflected in the chart; if they had been,
returns would be lower. The table compares the fund's performance over different
time periods to that of the fund's benchmark index, which is a broad measure of
market performance. The fund's performance reflects fund expenses; the benchmark
is unmanaged and has no expenses. Information in the bar chart and the table is
for the fund's Class Y shares, which are offered through another prospectus.
Information for Class A shares is not presented because those shares have not
been offered for a full calendar year.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Oregon Intermediate Tax Free Fund
<PAGE>
FIRST AMERICAN OREGON INTERMEDIATE TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
The Class A and Class Y shares will have substantially similar returns, because
they are invested in the same portfolio of securities. However, Class A share
returns will be lower because these shares have higher expenses. Both the chart
and the table assume that all distributions have been reinvested.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2)
[BAR CHART]
7.63% 9.89 7.19% 8.96% -2.66% 11.27% 3.31% 7.06% 5.36% -1.50%
--------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: December 31, 1990 4.49%
Worst Quarter:
Quarter ending: March 31, 1994 (3.41)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS(2) Year
AS OF 12/31/99 To Date(3) One Year Five Years Ten Years
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oregon Intermediate Tax Free Fund (Class Y)(4) 0.49% (1.50)% 5.01% 5.56%
-----------------------------------------------------------------------------------------------
Lehman Brothers 7-Year Municipal Bond Index(5) 3.24% (0.14)% 6.36% 6.60%
-----------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 3.11%.
(2) Performance prior to 8/8/97 is that of Oregon Municipal Bond Trust Fund, a
predecessor common trust fund. On 8/8/97, substantially all of the assets of
Oregon Municipal Bond Trust Fund were transferred into Oregon Intermediate
Tax Free Fund. The objectives, policies, and guidelines of the two funds
were, in all material respects, identical. Oregon Municipal Bond Trust
Fund's performance is adjusted to reflect Oregon Intermediate Tax Free
Fund's Class Y share fees and expenses, before any fee waivers. Oregon
Municipal Bond Trust Fund was not registered under the Investment Company
Act of 1940 and therefore was not subject to certain investment restrictions
that might have adversely affected performance.
(3) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(4) Class Y share returns have been adjusted to reflect the 2.50% front-end
sales charge imposed on Class A shares. Class Y shares have no sales
charges. Class A share inception date is 2/1/99.
(5) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with maturities between six and eight years. The since inception
performance for the index is calculated from 8/31/97.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
--------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A
--------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 2.50%(2)
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------
Management Fees 0.70%
Distribution and Service (12b-1) Fees 0.25%
Other Expenses 0.17%
TOTAL 1.12%
--------------------------------------------------------------------------------
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor and the distributor. The net
expenses the fund actually paid after waivers for the fiscal year ended
September 30, 1999, were:
Waiver of Fund Expenses (0.42)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.70%
THE DISTRIBUTOR INTENDS TO WAIVE PAYMENT OF ALL 12b-1 FEES DURING THE CURRENT
FISCAL YEAR. IN ADDITION, THE ADVISOR INTENDS TO WAIVE FEES DURING THE CURRENT
FISCAL YEAR SO THAT TOTAL FUND OPERATING EXPENSES DO NOT EXCEED 0.70%. FEE
WAIVERS MAY BE DISCONTINUED AT ANY TIME.
(2) Certain investors may qualify for reduced sales charges. Investments of $1
million or more on which no front-end sales charge is paid may be subject to
a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
--------------------------------------------------------------------------------
1 year $ 361
3 years $ 597
5 years $ 851
10 years $1,579
2 FUND PROFILE - First American Oregon Intermediate Tax Free Fund
<PAGE>
FIRST AMERICAN OREGON INTERMEDIATE TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below).
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 2.50% 2.56% 2.25%
$ 50,000 - $ 99,999 2.00% 2.04% 1.75%
$100,000 - $249,999 1.50% 1.52% 1.25%
$250,000 - $499,999 1.00% 1.01% 0.75%
$500,000 - $999,999 0.75% 0.76% 0.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. The fund intends to meet certain federal
tax requirements so that distributions of tax-exempt interest income may be
treated as "exempt-interest dividends." These dividends are not subject to
regular federal income tax. However, the fund may invest up to 20% of its net
assets in municipal securities the interest on which is subject to the
alternative minimum tax. Any portion of exempt-interest dividends attributable
to interest on these securities may increase some shareholders' alternative
minimum tax. The fund expects that its distributions will consist primarily of
exempt-interest dividends.
Dividends paid by Oregon Intermediate Tax Free Fund will be exempt from Oregon
income taxes for individuals, trusts, and estates to the extent that they are
derived from interest on Oregon municipal securities. Such dividends will not be
excluded from the Oregon taxable income of corporations.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPORINTF(R)
3 FUND PROFILE - First American Oregon Intermediate Tax Free Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
(*) TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
ARIZONA
TAX FREE
FUND
CLASS A AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN ARIZONA TAX FREE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Arizona Tax Free Fund has an objective of providing maximum current income that
is exempt from both federal income tax and Arizona state income tax to the
extent consistent with prudent investment risk.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Arizona Tax Free Fund invests at least 80% of
its total assets in municipal securities that pay interest that is exempt from
federal and Arizona income tax, including the federal alternative minimum tax.
The fund normally may invest up to 20% of its net assets in taxable obligations,
including obligations the interest on which is subject to the federal
alternative minimum tax. The fund may invest in: "general obligation" bonds,
which are backed by the full faith, credit and taxing power of the issuer;
"revenue" bonds, which are payable only from the revenues generated by a
specific project or from another specific revenue source; participation
interests in municipal leases; zero coupon municipal securities, which pay no
cash income to their holders until they mature; and inverse floating rate
municipal securities (up to 10% of the fund's total assets).
In selecting securities for the fund, fund managers first determine their
economic outlook and the direction in which inflation and interest rates are
expected to move. In selecting individual securities consistent with this
outlook, fund managers evaluate factors such as credit quality, yield, maturity,
liquidity, and portfolio diversification.
The fund only invests in securities that, at the time of purchase, are either
rated investment grade or are unrated and determined to be of comparable quality
by the fund's advisor. If the rating of a security is reduced or discontinued
after purchase, the fund is not required to sell the security, but may consider
doing so. Unrated securities will not exceed 25% of the fund's total assets (not
including unrated securities that have been pre-refunded with U.S. Government
securities and U.S. Government agency securities).
The fund will attempt to maintain the weighted average maturity of its portfolio
securities at 10 to 25 years under normal market conditions.
Additional information about the fund's investments is available in the fund's
annual and semi-annual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
Inverse floating rate securities may be highly volatile as interest rates rise
or fall.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities. The revenue bonds and municipal lease
obligations in which the fund invests may entail greater credit risk than the
fund's investments in general obligation bonds.
CALL RISK. Some municipal securities held by the fund may be redeemed by the
issuer, or "called," prior to their stated maturity dates. If a security is
redeemed during a time of declining interest rates, the fund may be unable to
reinvest in securities providing as high a level of income.
RISKS OF MUNICIPAL LEASE OBLIGATIONS. Many municipal leases and contracts
contain "non-appropriation" clauses that provide that the governmental issuer
has no obligation to make future payments under the lease or contract unless
money is appropriated for this purpose by the appropriate legislative body.
POLITICAL AND ECONOMIC RISK. Because the fund invests primarily in municipal
securities issued by the state of Arizona and its political subdivisions, the
fund will be particularly affected by political and economic conditions and
developments in that state. See the Statement of Additional Information for
details. The value of municipal securities owned by the fund also may be
adversely affected by future changes in federal or state income tax laws,
including rate reductions or the imposition of a flat tax.
RISKS OF NON-DIVERSIFICATION. The fund is non-diversified. This means that it
may invest a larger portion of its assets in a limited number of issuers than a
diversified fund. Because a relatively high percentage of the fund's assets may
be invested in the securities of a limited number of issuers, the fund may be
more susceptible to any single economic, political or regulatory occurrence than
a diversified fund.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Arizona Tax Free Fund
<PAGE>
FIRST AMERICAN ARIZONA TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
Because Arizona Tax Free Fund shares have not been offered for a full calendar
year, no performance information is presented for these shares.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS C
--------------------------------------------------------------------------------------------------
<S> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 2.50%(1) 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00%
Other Expenses(4) 0.20% 0.20%
TOTAL(5) 1.15% 1.90%
--------------------------------------------------------------------------------------------------
</TABLE>
(1) Certain investors may qualify for reduced sales charges.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
(4) "Other expenses" are based on estimated amounts for the current fiscal year.
(5) THE ADVISOR AND DISTRIBUTOR INTEND TO WAIVE FEES DURING THE CURRENT FISCAL
YEAR SO THAT TOTAL FUND OPERATING EXPENSES DO NOT EXCEED 0.55% AND 0.95%,
RESPECTIVELY, FOR CLASS A AND CLASS C SHARES. FEE WAIVERS MAY BE
DISCONTINUED AT ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
CLASS C CLASS C
assuming redemption assuming no redemption
CLASS A at end of each period at end of each period
--------------------------------------------------------------------------------
1 year $364 $391 $291
3 years $606 $691 $691
2 FUND PROFILE - First American Arizona Tax Free Fund
<PAGE>
FIRST AMERICAN ARIZONA TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder in the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gift to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class C
shares have a 1% front-end sales load and a contingent deferred sales charge
(CDSC) of 1% if the shares are redeemed within 18 months from the date of
purchase. In addition to the different sales-load structures between Class A and
Class C shares, the fees and expenses may vary (as set forth in the Fees and
Expenses table). See an investment professional to help determine which share
class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 2.50% 2.56% 2.25%
$ 50,000 - $ 99,999 2.00% 2.04% 1.75%
$100,000 - $249,999 1.50% 1.52% 1.25%
$250,000 - $499,999 1.00% 1.01% 0.75%
$500,000 - $999,999 0.75% 0.76% 0.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gains distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. The fund intends to meet certain federal
tax requirements so that distributions of tax-exempt interest income may be
treated as "exempt-interest dividends." These dividends are not subject to
regular federal income tax. However, the fund may invest up to 20% of its net
assets in municipal securities the interest on which is subject to the
alternative minimum tax. Any portion of exempt-interest dividends attributable
to interest on these securities may increase some shareholders' alternative
minimum tax. The fund expects that its distributions will consist primarily of
exempt-interest dividends.
Dividends paid by Arizona Tax Free Fund will be exempt from Arizona income taxes
for individuals, trust, estates and corporations to the extent they are derived
from interest on Arizona municipal securities.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPAZTF(R)
3 FUND PROFILE - First American Arizona Tax Free Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
(*) TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
CALIFORNIA
TAX FREE
FUND
CLASS A AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN CALIFORNIA TAX FREE FUND
--------------------------------------------------------------------------------
OBJECTIVE
California Tax Free Fund has an objective of providing maximum current income
that is exempt from both federal income tax and California state income tax to
the extent consistent with prudent investment risk.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, California Tax Free Fund invests at least 80% of
its total assets in municipal securities that pay interest that is exempt from
federal and California income tax, including the federal alternative minimum
tax. The fund normally may invest up to 20% of its net assets in taxable
obligations, including obligations the interest on which is subject to the
federal alternative minimum tax. The fund may invest in: "general obligation"
bonds, which are backed by the full faith, credit and taxing power of the
issuer; "revenue" bonds, which are payable only from the revenues generated by a
specific project or from another specific revenue source; participation
interests in municipal leases; zero coupon municipal securities, which pay no
cash income to their holders until they mature; and inverse floating rate
municipal securities (up to 10% of the fund's total assets).
In selecting securities for the fund, fund managers first determine their
economic outlook and the direction in which inflation and interest rates are
expected to move. In selecting individual securities consistent with this
outlook, fund managers evaluate factors such as credit quality, yield, maturity,
liquidity, and portfolio diversification.
The fund only invests in securities that, at the time of purchase, are either
rated investment grade or are unrated and determined to be of comparable quality
by the fund's advisor. If the rating of a security is reduced or discontinued
after purchase, the fund is not required to sell the security, but may consider
doing so. Unrated securities will not exceed 25% of the fund's total assets (not
including unrated securities that have been pre-refunded with U.S. Government
securities and U.S. Government agency securities).
The fund will attempt to maintain the weighted average maturity of its portfolio
securities at 10 to 25 years under normal market conditions.
Additional information about the fund's investments is available in the fund's
annual and semi-annual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
Inverse floating rate securities may be highly volatile as interest rates rise
or fall.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities. The revenue bonds and municipal lease
obligations in which the fund invests may entail greater credit risk than the
fund's investments in general obligation bonds.
CALL RISK. Some municipal securities held by the fund may be redeemed by the
issuer, or "called," prior to their stated maturity dates. If a security is
redeemed during a time of declining interest rates, the fund may be unable to
reinvest in securities providing as high a level of income.
RISKS OF MUNICIPAL LEASE OBLIGATIONS. Many municipal leases and contracts
contain "non-appropriation" clauses that provide that the governmental issuer
has no obligation to make future payments under the lease or contract unless
money is appropriated for this purpose by the appropriate legislative body.
POLITICAL AND ECONOMIC RISK. Because the fund invests primarily in municipal
securities issued by the state of California and its political subdivisions, the
fund will be particularly affected by political and economic conditions and
developments in that state. See the Statement of Additional Information for
details. The value of municipal securities owned by the fund also may be
adversely affected by future changes in federal or state income tax laws,
including rate reductions or the imposition of a flat tax.
RISKS OF NON-DIVERSIFICATION. The fund is non-diversified. This means that it
may invest a larger portion of its assets in a limited number of issuers than a
diversified fund. Because a relatively high percentage of the fund's assets may
be invested in the securities of a limited number of issuers, the fund may be
more susceptible to any single economic, political or regulatory occurrence than
a diversified fund.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American California Tax Free Fund
<PAGE>
FIRST AMERICAN CALIFORNIA TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
Because California Tax Free Fund shares have not been offered for a full
calendar year, no performance information is presented for these shares.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS C
--------------------------------------------------------------------------------------------------
<S> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 2.50%(1) 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00%
Other Expenses(4) 0.20% 0.20%
TOTAL(5) 1.15% 1.90%
--------------------------------------------------------------------------------------------------
</TABLE>
(1) Certain investors may qualify for reduced sales charges.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
(4) "Other expenses" are based on estimated amounts for the current fiscal year.
(5) THE ADVISOR AND DISTRIBUTOR INTEND TO WAIVE FEES DURING THE CURRENT FISCAL
YEAR SO THAT TOTAL FUND OPERATING EXPENSES DO NOT EXCEED 0.55% AND 0.95%,
RESPECTIVELY, FOR CLASS A AND CLASS C SHARES. FEE WAIVERS MAY BE
DISCONTINUED AT ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
CLASS C CLASS C
assuming redemption assuming no redemption
CLASS A at end of each period at end of each period
--------------------------------------------------------------------------------
1 year $364 $391 $291
3 years $606 $691 $691
2 FUND PROFILE - First American California Tax Free Fund
<PAGE>
FIRST AMERICAN CALIFORNIA TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder in the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gift to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class C
shares have a 1% front-end sales load and a contingent deferred sales charge
(CDSC) of 1% if the shares are redeemed within 18 months from the date of
purchase. In addition to the different sales-load structures between Class A and
Class C shares, the fees and expenses may vary (as set forth in the Fees and
Expenses table). See an investment professional to help determine which share
class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 2.50% 2.56% 2.25%
$ 50,000 - $ 99,999 2.00% 2.04% 1.75%
$100,000 - $249,999 1.50% 1.52% 1.25%
$250,000 - $499,999 1.00% 1.01% 0.75%
$500,000 - $999,999 0.75% 0.76% 0.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gains distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. The fund intends to meet certain federal
tax requirements so that distributions of tax-exempt interest income may be
treated as "exempt-interest dividends." These dividends are not subject to
regular federal income tax. However, the fund may invest up to 20% of its net
assets in municipal securities the interest on which is subject to the
alternative minimum tax. Any portion of exempt-interest dividends attributable
to interest on these securities may increase some shareholders' alternative
minimum tax. The fund expects that its distributions will consist primarily of
exempt-interest dividends.
California Tax Free Fund intends to comply with certain state tax requirements
so that dividends it pays that are attributable to interest on California
municipal securities will be excluded from the California taxable income of
individuals, trusts and estates. To meet these requirements, at least 50% of the
value of the fund's total assets must consist of obligations which pay interest
that is exempt from California personal income tax. Exempt-interest dividends
are not excluded from the California taxable income of corporations and
financial institutions. In addition, dividends derived from interest paid on
California municipal bonds (including securities treated for federal purposes as
private activity bonds) will not be subject to the alternative minimum tax that
California imposes on individuals, trusts and estates.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPCATF(R)
3 FUND PROFILE - First American California Tax Free Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
(*) TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
COLORADO
TAX FREE
FUND
CLASS A AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN COLORADO TAX FREE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Colorado Tax Free Fund has an objective of providing maximum current income that
is exempt from both federal income tax and Colorado state income tax to the
extent consistent with prudent investment risk.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Colorado Tax Free Fund invests at least 80% of
its total assets in municipal securities that pay interest that is exempt from
federal and Colorado income tax, including the federal alternative minimum tax.
The fund normally may invest up to 20% of its net assets in taxable obligations,
including obligations the interest on which is subject to the federal
alternative minimum tax. The fund may invest in: "general obligation" bonds,
which are backed by the full faith, credit and taxing power of the issuer;
"revenue" bonds, which are payable only from the revenues generated by a
specific project or from another specific revenue source; participation
interests in municipal leases; zero coupon municipal securities, which pay no
cash income to their holders until they mature; and inverse floating rate
municipal securities (up to 10% of the fund's total assets).
In selecting securities for the fund, fund managers first determine their
economic outlook and the direction in which inflation and interest rates are
expected to move. In selecting individual securities consistent with this
outlook, fund managers evaluate factors such as credit quality, yield, maturity,
liquidity, and portfolio diversification.
The fund only invests in securities that, at the time of purchase, are either
rated investment grade or are unrated and determined to be of comparable quality
by the fund's advisor. If the rating of a security is reduced or discontinued
after purchase, the fund is not required to sell the security, but may consider
doing so. Unrated securities will not exceed 25% of the fund's total assets (not
including unrated securities that have been pre-refunded with U.S. Government
securities and U.S. Government agency securities).
The fund will attempt to maintain the weighted average maturity of its portfolio
securities at 10 to 25 years under normal market conditions.
Additional information about the fund's investments is available in the fund's
annual and semi-annual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
Inverse floating rate securities may be highly volatile as interest rates rise
or fall.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities. The revenue bonds and municipal lease
obligations in which the fund invests may entail greater credit risk than the
fund's investments in general obligation bonds.
CALL RISK. Some municipal securities held by the fund may be redeemed by the
issuer, or "called," prior to their stated maturity dates. If a security is
redeemed during a time of declining interest rates, the fund may be unable to
reinvest in securities providing as high a level of income.
RISKS OF MUNICIPAL LEASE OBLIGATIONS. Many municipal leases and contracts
contain "non-appropriation" clauses that provide that the governmental issuer
has no obligation to make future payments under the lease or contract unless
money is appropriated for this purpose by the appropriate legislative body.
POLITICAL AND ECONOMIC RISK. Because the fund invests primarily in municipal
securities issued by the state of Colorado and its political subdivisions, the
fund will be particularly affected by political and economic conditions and
developments in that state. See the Statement of Additional Information for
details. The value of municipal securities owned by the fund also may be
adversely affected by future changes in federal or state income tax laws,
including rate reductions or the imposition of a flat tax.
RISKS OF NON-DIVERSIFICATION. The fund is non-diversified. This means that it
may invest a larger portion of its assets in a limited number of issuers than a
diversified fund. Because a relatively high percentage of the fund's assets may
be invested in the securities of a limited number of issuers, the fund may be
more susceptible to any single economic, political or regulatory occurrence than
a diversified fund.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Colorado Tax Free Fund
<PAGE>
FIRST AMERICAN COLORADO TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE
Because Colorado Tax Free Fund shares have not been offered for a full calendar
year, no performance information is presented for these shares.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets.
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS C
-------------------------------------------------------------------------------------------------
<S> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 2.50%(1) 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(2) 1.00%
ANNUAL MAINTENANCE FEE(3)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00%
Other Expenses(4) 0.20% 0.20%
TOTAL(5) 1.15% 1.90%
-------------------------------------------------------------------------------------------------
</TABLE>
(1) Certain investors may qualify for reduced sales charges.
(2) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(3) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
(4) "Other expenses" are based on estimated amounts for the current fiscal year.
(5) THE ADVISOR AND DISTRIBUTOR INTEND TO WAIVE FEES DURING THE CURRENT FISCAL
YEAR SO THAT TOTAL FUND OPERATING EXPENSES DO NOT EXCEED 0.55% AND 0.95%,
RESPECTIVELY, FOR CLASS A AND CLASS C SHARES. FEE WAIVERS MAY BE
DISCONTINUED AT ANY TIME.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
CLASS C CLASS C
assuming redemption assuming no redemption
CLASS A at end of each period at end of each period
--------------------------------------------------------------------------------
1 year $364 $391 $291
3 years $606 $691 $691
2 FUND PROFILE - First American Colorado Tax Free Fund
<PAGE>
FIRST AMERICAN COLORADO TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder in the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gift to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class C
shares have a 1% front-end sales load and a contingent deferred sales charge
(CDSC) of 1% if the shares are redeemed within 18 months from the date of
purchase. In addition to the different sales-load structures between Class A and
Class C shares, the fees and expenses may vary (as set forth in the Fees and
Expenses table). See an investment professional to help determine which share
class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 2.50% 2.56% 2.25%
$ 50,000 - $ 99,999 2.00% 2.04% 1.75%
$100,000 - $249,999 1.50% 1.52% 1.25%
$250,000 - $499,999 1.00% 1.01% 0.75%
$500,000 - $999,999 0.75% 0.76% 0.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gains distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. The fund intends to meet certain federal
tax requirements so that distributions of tax-exempt interest income may be
treated as "exempt-interest dividends." These dividends are not subject to
regular federal income tax. However, the fund may invest up to 20% of its net
assets in municipal securities the interest on which is subject to the
alternative minimum tax. Any portion of exempt-interest dividends attributable
to interest on these securities may increase some shareholders' alternative
minimum tax. The fund expects that its distributions will consist primarily of
exempt-interest dividends.
Dividends paid by Colorado Tax Free Fund will be exempt from Colorado income
taxes for individuals, trusts, estates and corporations to the extent that they
are derived from interest on Colorado municipal securities. In addition,
dividends derived from interest on Colorado municipal securities (including
securities treated for federal purposes as private activity bonds) will not be
subject to the alternative minimum tax that Colorado imposes on individuals,
trusts and estates.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPCOTF(R)
3 FUND PROFILE - First American Colorado Tax Free Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
(*) TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
MINNESOTA
TAX FREE
FUND
CLASS A AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN MINNESOTA TAX FREE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Minnesota Tax Free Fund has an objective of providing maximum current income
that is exempt from both federal income tax and Minnesota state income tax to
the extent consistent with prudent investment risk.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Minnesota Tax Free Fund invests at least 80% of
its total assets in municipal securities that pay interest that is exempt from
federal and Minnesota income tax, including federal and state of Minnesota
alternative minimum tax. The fund normally may invest up to 20% of its net
assets in taxable obligations, including obligations the interest on which is
subject to federal and state of Minnesota alternative minimum tax. The fund may
invest in: "general obligation" bonds, which are backed by the full faith,
credit, and taxing power of the issuer; "revenue" bonds, which are payable only
from the revenues generated by a specific project or from another specific
revenue source; participation interests in municipal leases; zero coupon
municipal, which pay no cash income to their holders until they mature; and
inverse floating rate municipal securities (up to 10% of the fund's total
assets).
In selecting securities for the fund, fund managers first determine their
economic outlook and the direction in which inflation and interest rates are
expected to move. In selecting individual securities consistent with this
outlook, fund managers evaluate factors such as credit quality, yield, maturity,
liquidity, and portfolio diversification.
The fund only invests in securities that, at the time of purchase, are either
rated investment grade or are unrated and determined to be of comparable quality
by the fund's advisor. If the rating of a security is reduced or discontinued
after purchase, the fund is not required to sell the security, but may consider
doing so. Unrated securities will not exceed 25% of the fund's total assets (not
including unrated securities that have been pre-refunded with U.S. government
securities and U.S. government agency securities).
The fund will attempt to maintain the weighted average maturity of its portfolio
securities at 10 to 25 years under normal market conditions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
Inverse floating rate securities may be highly volatile as interest rates rise
or fall.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities. The revenue bonds and municipal lease
obligations in which the fund invests may entail greater credit risk than the
fund's investments in general obligation bonds.
CALL RISK. Some municipal securities held by the fund may be redeemed by the
issuer, or "called," prior to their stated maturity dates. If a security is
redeemed during a time of declining interest rates, the fund may be unable to
reinvest in securities providing as high a level of income.
RISKS OF MUNICIPAL LEASE OBLIGATIONS. Many municipal leases and contracts
contain "non-appropriation" clauses that provide that the governmental issuer
has no obligation to make future payments under the lease or contract unless
money is appropriated for this purpose by the appropriate legislative body.
POLITICAL AND ECONOMIC RISK. Because the fund invests primarily in municipal
securities issued by the state of Minnesota and its political subdivisions, the
fund will be particularly affected by political and economic conditions and
developments in that state. See the Statement of Additional Information for
details. The value of municipal securities owned by the fund also may be
adversely affected by future changes in federal or state income tax laws,
including rate reductions or the imposition of a flat tax.
RISKS OF NON-DIVERSIFICATION. The fund is non-diversified. This means that it
may invest a larger portion of its assets in a limited number of issuers than a
diversified fund. Because a relatively high percentage of the fund's assets may
be invested in the securities of a limited number of issuers, the fund may be
more susceptible to any single economic, political or regulatory occurrence than
a diversified fund.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class C shares will be lower due to their
higher expenses. Sales charges are not reflected in the chart; if they had been,
returns would be lower. The table compares the fund's performance for Class A
shares over different time periods to that of the fund's benchmark index, which
is a broad measure of market performance. However, because Class C shares have
not been offered for a full calendar year, no information is presented for these
shares. The fund's performance reflects sales charges and fund expenses; the
benchmark is unmanaged and has no expenses. Both the chart and the table assume
that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Minnesota Tax Free Fund
<PAGE>
FIRST AMERICAN MINNESOTA TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2)
[BAR CHART]
6.40% 10.97% 8.14% 11.97% -5.47% 19.37% 2.73% 8.77% 6.40% -2.92%
--------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: March 31, 1995 7.83%
Worst Quarter:
Quarter ending: March 31, 1994 (4.94)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year
AS OF 12/31/99(2) Date To Date(3) One Year Five Years Ten Years
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Minnesota Tax Free Fund (Class A) 7/11/88 0.88% (5.34)% 6.07% 6.15%
-------------------------------------------------------------------------------------------------------
Lehman Brothers Municipal Bond Index(4) 4.49% (2.07)% 6.91% 6.90%
-------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 3.48%.
(2) On 7/31/98, the Minnesota Tax Free Fund became the successor by merger to
the Piper Minnesota Tax-Exempt Fund, a series of Piper Funds Inc. Prior to
the merger, the First American Fund had no assets or liabilities.
Performance presented prior to 7/31/98 represents that of the Piper
Minnesota Tax-Exempt Fund.
(3) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(4) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with remaining maturities of one year or more.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS C
-------------------------------------------------------------------------------------------------
<S> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 2.50%(2) 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(3) 1.00%
ANNUAL MAINTENANCE FEE(4)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
-------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00%
Other Expenses 0.22% 0.17%
TOTAL 1.17% 1.87%
-------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor and the distributor. The net
expenses the fund actually paid after waivers for the fiscal year ended
September 30, 1999, were:
<TABLE>
<S> <C> <C>
Waiver of Fund Expenses (0.22)% (0.52)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 0.95% 1.35%
</TABLE>
THE ADVISOR AND DISTRIBUTOR INTEND TO WAIVE FEES DURING THE CURRENT FISCAL YEAR
SO THAT TOTAL FUND OPERATING EXPENSES DO NOT EXCEED 0.95% AND 1.35%,
RESPECTIVELY, FOR CLASS A AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT
ANY TIME.
(2) Certain investors may qualify for reduced sales charges.
(3) Class A share investments of $1 million or more on which no front-end sales
charge is paid may be subject to a contingent deferred sales charge.
(4) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
CLASS C CLASS C
assuming redemption assuming no redemption
CLASS A at end of each period at end of each period
--------------------------------------------------------------------------------
1 year $ 366 $ 388 $ 288
3 years $ 612 $ 682 $ 682
5 years $ 878 $1,101 $1,101
10 years $1,635 $2,268 $2,268
2 FUND PROFILE - First American Minnesota Tax Free Fund
<PAGE>
FIRST AMERICAN MINNESOTA TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class C
shares have a 1% front-end sales load and a contingent deferred sales charge
(CDSC) of 1% if the shares are redeemed within 18 months from the date of
purchase. In addition to the different sales-load structures between Class A and
Class C shares, the fees and expenses may vary (as set forth in the Fees and
Expenses table contained in this Profile). See an investment professional to
help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 2.50% 2.56% 2.25%
$ 50,000 - $ 99,999 2.00% 2.04% 1.75%
$100,000 - $249,999 1.50% 1.52% 1.25%
$250,000 - $499,999 1.00% 1.01% 0.75%
$500,000 - $999,999 0.75% 0.76% 0.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. The fund intends to meet certain federal
tax requirements so that distributions of tax-exempt interest income may be
treated as "exempt-interest dividends." These dividends are not subject to
regular federal income tax. However, the fund may invest up to 20% of its net
assets in municipal securities the interest on which is subject to the
alternative minimum tax. Any portion of exempt-interest dividends attributable
to interest on these securities may increase some shareholders' alternative
minimum tax. The fund expects that its distributions will consist primarily of
exempt-interest dividends.
Minnesota Tax Free Fund intends to comply with certain state tax requirements so
that dividends it pays that are attributable to interest on Minnesota municipal
securities will be excluded from the Minnesota taxable net income of
individuals, estates, and trusts. To meet these requirements, at least 95% of
the exempt-interest dividends paid by the fund must be derived from interest
income on Minnesota municipal securities. A portion of the fund's dividends may
be subject to the Minnesota alternative minimum tax. Exempt-interest dividends
are not excluded from the Minnesota taxable income of corporations and financial
institutions.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPMNTF(R)
3 FUND PROFILE - First American Minnesota Tax Free Fund
<PAGE>
JUNE 30, 2000
ASSET CLASSES
* EQUITY FUNDS
* FUNDS OF FUNDS
* BOND FUNDS
(*) TAX FREE BOND FUNDS
* MONEY MARKET FUNDS
FUND PROFILE
FIRST AMERICAN
TAX FREE
FUND
CLASS A AND CLASS C SHARES
THIS PROFILE SUMMARIZES KEY INFORMATION ABOUT THE FUND THAT IS INCLUDED IN THE
FUND'S PROSPECTUS. THE FUND'S PROSPECTUS INCLUDES ADDITIONAL INFORMATION ABOUT
THE FUND, INCLUDING A MORE DETAILED DESCRIPTION OF THE RISKS ASSOCIATED WITH
INVESTING IN THE FUND THAT YOU MAY WANT TO CONSIDER BEFORE YOU INVEST. YOU MAY
OBTAIN THE PROSPECTUS AND OTHER INFORMATION ABOUT THE FUND AT NO COST BY CALLING
FIRST AMERICAN FUNDS INVESTOR SERVICES AT 1-800-637-2548, OR BY CONTACTING YOUR
INVESTMENT PROFESSIONAL.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN TAX FREE FUND
--------------------------------------------------------------------------------
OBJECTIVE
Tax Free Fund has an objective of providing maximum current income that is
exempt from federal income tax to the extent consistent with prudent investment
risk.
--------------------------------------------------------------------------------
MAIN INVESTMENT STRATEGIES
Under normal market conditions, Tax Free Fund invests at least 80% of its total
assets in municipal securities that pay interest that is exempt from federal
income tax, including the federal alternative minimum tax. The fund normally may
invest up to 20% of its net assets in taxable obligations, including obligations
subject to the federal alternative minimum tax. The fund may invest in: "general
obligation" bonds, which are backed by the full faith, credit, and taxing power
of the issuer; "revenue" bonds, which are payable only from the revenues
generated by a specific project or from another specific revenue source;
participation interests in municipal leases; zero coupon municipal securities,
which pay no cash income to their holders until they mature; and inverse
floating rate municipal securities (up to 10% of the fund's total assets).
In selecting securities for the fund, fund managers first determine their
economic outlook and the direction in which inflation and interest rates are
expected to move. In selecting individual securities consistent with this
outlook, fund managers evaluate factors such as credit quality, yield, maturity,
liquidity, and portfolio and geographical diversification.
The fund only invests in securities that, at the time of purchase, are either
rated investment grade or are unrated and determined to be of comparable quality
by the fund's advisor. If the rating of a security is reduced or discontinued
after purchase, the fund is not required to sell the security, but may consider
doing so. Unrated securities will not exceed 25% of the fund's total assets (not
including unrated securities that have been pre-refunded with U.S. government
securities and U.S. government agency securities).
The fund will attempt to maintain the weighted average maturity of its portfolio
securities at 10 to 25 years under normal market conditions.
Additional information about the fund's investments is available in the fund's
annual and semiannual reports to shareholders. In the fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling First American
Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
MAIN RISKS
The price and yield of this fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The main risks of
investing in this fund include:
INTEREST RATE RISK. Debt securities typically decrease in value when interest
rates rise. This risk is usually greater for longer-term debt securities.
Inverse floating rate municipal securities may be highly volatile as interest
rates rise or fall.
INCOME RISK. The fund's income could decline due to falling market interest
rates.
CREDIT RISK. An issuer of debt securities may not make timely principal or
interest payments on its securities. The revenue bonds and municipal lease
obligations in which the fund invests may entail greater credit risk than the
fund's investments in general obligation bonds.
CALL RISK. Some municipal securities held by the fund may be redeemed by the
issuer, or "called," prior to their stated maturity dates. If a security is
redeemed during a time of declining interest rates, the fund may be unable to
reinvest in securities providing as high a level of income.
RISKS OF MUNICIPAL LEASE OBLIGATIONS. Many municipal leases and contracts
contain "non-appropriation" clauses that provide that the governmental issuer
has no obligation to make future payments under the lease or contract unless
money is appropriated for this purpose by the appropriate legislative body.
POLITICAL AND ECONOMIC CONDITIONS. The value of municipal securities owned by
the fund may be adversely affected by state and local political and economic
conditions and developments, or by future changes in federal or state income tax
laws, including rate reductions or the imposition of a flat tax.
--------------------------------------------------------------------------------
FUND PERFORMANCE
Illustrations on the next page provide you with information on the fund's
volatility and performance. Of course, past performance does not guarantee
future results.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class C shares will be lower due to their
higher expenses. Sales charges are not reflected in the chart; if they had been,
returns would be lower. The table compares the fund's performance for Class A
shares over different time periods to that of the fund's benchmark index, which
is a broad measure of market performance. However, because Class C shares have
not been offered for a full calendar year, no information is presented for these
shares. The fund's performance reflects sales charges and fund expenses; the
benchmark is unmanaged and has no expenses. Both the chart and the table assume
that all distributions have been reinvested.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
1 FUND PROFILE - First American Tax Free Fund
<PAGE>
FIRST AMERICAN TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
FUND PERFORMANCE (CONTINUED)
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR(1),(2)
[BAR CHART]
7.24% 12.03% 8.58% 14.55% -8.46% 18.54% 3.45% 9.04% 6.02% -4.83%
--------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Best Quarter:
Quarter ending: March 31, 1995 7.99%
Worst Quarter:
Quarter ending: March 31, 1994 (7.65)%
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS Inception Year
AS OF 12/31/99(2) Date To Date(3) One Year Five Years Ten Years
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Tax Free Fund (Class A) 7/11/88 1.17% (7.21)% 5.65% 6.05%
-----------------------------------------------------------------------------------------------------
Lehman Brothers Municipal Bond Index(4) 4.49% (2.07)% 6.91% 6.90%
-----------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return (without sales charges reflected) for the period from 1/1/2000
to 6/30/2000 was 3.74%.
(2) On 7/31/98, the Tax Free Fund became the successor by merger to the Piper
Minnesota Tax-Exempt Fund, a series of Piper Funds, Inc. Prior to the
merger, the First American Fund had no assets or liabilities. Performance
presented prior to 7/31/98 represents that of the Piper National Tax-Exempt
Fund.
(3) Year to date performance for the fund (with sales charges reflected) and the
index is for the period from 1/1/2000 to 6/30/2000.
(4) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with remaining maturities of one year or more.
--------------------------------------------------------------------------------
FEES AND EXPENSES
As an investor, you pay fees and expenses to buy and hold shares of the fund.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets. The
figures below show fund expenses during the fiscal year ended September 30,
1999.(1)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
SHAREHOLDER FEES CLASS A CLASS C
--------------------------------------------------------------------------------------------------
<S> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
AS A % OF OFFERING PRICE 2.50%(2) 1.00%
MAXIMUM DEFERRED SALES CHARGE (LOAD)
AS A % OF ORIGINAL PURCHASE PRICE OR REDEMPTION PROCEEDS, WHICHEVER IS LESS 0.00%(3) 1.00%
ANNUAL MAINTENANCE FEE(4)
ONLY CHARGED TO ACCOUNTS WITH BALANCES BELOW $500 $25 $25
ANNUAL FUND OPERATING EXPENSES AS A % OF AVERAGE NET ASSETS
--------------------------------------------------------------------------------------------------
Management Fees 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.25% 1.00%
Other Expenses 0.28% 0.23%
TOTAL 1.23% 1.93%
--------------------------------------------------------------------------------------------------
</TABLE>
(1) Actual expenses for the fiscal year were lower than those shown in the table
because of voluntary fee waivers by the advisor and the distributor. The net
expenses the fund actually paid after waivers for the fiscal year ended
September 30, 1999, were:
<TABLE>
<S> <C> <C>
Waiver of Fund Expenses (0.23)% (0.58)%
TOTAL ACTUAL ANNUAL OPERATING EXPENSES (AFTER WAIVERS) 1.00% 1.35%
</TABLE>
THE ADVISOR AND DISTRIBUTOR INTEND TO WAIVE FEES DURING THE CURRENT FISCAL YEAR
SO THAT TOTAL FUND OPERATING EXPENSES DO NOT EXCEED 0.95% AND 1.35%,
RESPECTIVELY, FOR CLASS A AND CLASS C SHARES. FEE WAIVERS MAY BE DISCONTINUED AT
ANY TIME.
(2) Certain investors may qualify for reduced sales charges.
(3) Investments of $1 million or more on which no front-end sales charge is paid
may be subject to a contingent deferred sales charge.
(4) The fund reserves the right to charge your account an annual maintenance fee
of $25 if your balance falls below $500 as a result of selling or exchanging
shares.
--------------------------------------------------------------------------------
EXAMPLE This example is intended to help you compare the cost of investing in
the fund with the cost of investing in other mutual funds. It assumes that you
invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that the fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
CLASS C CLASS C
assuming redemption assuming no redemption
CLASS A at end of each period at end of each period
--------------------------------------------------------------------------------
1 year $ 372 $ 394 $ 294
3 years $ 631 $ 700 $ 700
5 years $ 909 $1,131 $1,131
10 years $1,701 $2,331 $2,331
2 FUND PROFILE - First American Tax Free Fund
<PAGE>
FIRST AMERICAN TAX FREE FUND CONTINUED
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
U.S. Bank National Association (U.S. Bank), acting through its First American
Asset Management division, is the fund's investment advisor. First American
Asset Management provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2000, it had more than $79 billion in assets under
management, including investment company assets of more than $33 billion. As
investment advisor, First American Asset Management manages the fund's business
and investment activities, subject to the authority of the board of directors.
The fund is managed by a team of persons associated with First American Asset
Management.
--------------------------------------------------------------------------------
BUYING FUND SHARES
You may become a shareholder of the fund with an initial investment of $1,000 or
more ($250 for a retirement plan or a Uniform Gifts to Minors Act/Uniform
Transfers to Minors Act (UGMA/UTMA) account). Additional investments can be made
for as little as $100 ($25 for a retirement plan or an UGMA/UTMA account). Your
purchase price is typically the net asset value of your shares, plus any
applicable sales load. Class A shares charge a front-end sales load that varies
depending on the amount of your purchase (set forth in the chart below). Class C
shares have a 1% front-end sales load and a contingent deferred sales charge
(CDSC) of 1% if the shares are redeemed within 18 months from the date of
purchase. In addition to the different sales-load structures between Class A and
Class C shares, the fees and expenses may vary (as set forth in the Fees and
Expenses table contained in this Profile). See an investment professional to
help determine which share class is best suited to your needs.
Maximum
Sales Charge Reallowance
As a % of As a % of as a % of
Offering Net Asset Purchase
Price Value Price
--------------------------------------------------------------------------------
Less than $ 50,000 2.50% 2.56% 2.25%
$ 50,000 - $ 99,999 2.00% 2.04% 1.75%
$100,000 - $249,999 1.50% 1.52% 1.25%
$250,000 - $499,999 1.00% 1.01% 0.75%
$500,000 - $999,999 0.75% 0.76% 0.50%
$1 million and over 0.00% 0.00% 0.00%
You may purchase shares of the fund by contacting your investment professional
or financial institution. You may also purchase shares of the fund by completing
a new account application. New account applications may be obtained by calling
First American Funds Investor Services at 1-800-637-2548.
--------------------------------------------------------------------------------
SELLING FUND SHARES
If you are selling Class C shares, you may pay a CDSC.
If you purchased shares of the fund through an investment professional or
financial institution, simply call them to sell your shares. You may also sell
your shares by calling Investor Services at 1-800-637-2548. To sell shares by
mail, send a written request to your investment professional or financial
institution, or to the fund at the following address: First American Funds, c/o
DST Systems, Inc., P.O. Box 219382, Kansas City, Missouri 64121-9382.
--------------------------------------------------------------------------------
FUND DISTRIBUTIONS AND TAXES
Dividend and capital gain distributions will be reinvested in additional shares
of the fund, unless you request otherwise. Dividends from the fund's net
investment income are declared and paid monthly. Any capital gains are
distributed at least once each year. The fund intends to meet certain federal
tax requirements so that distributions of tax-exempt interest income may be
treated as "exempt-interest dividends." These dividends are not subject to
regular federal income tax. However, the fund may invest up to 20% of its net
assets in municipal securities the interest on which is subject to the
alternative minimum tax. Any portion of exempt-interest dividends attributable
to interest on these securities may increase some shareholders' alternative
minimum tax. The fund expects that its distributions will consist primarily of
exempt-interest dividends. Tax Free Fund's exempt-interest dividends may be
subject to state or local taxes.
--------------------------------------------------------------------------------
SERVICES OFFERED
First American offers several ways to make it easier for you to manage your
account, such as: telephone transactions; wire and electronic funds transfers;
automatic investing; systematic withdrawals; and exchange privileges with other
First American Funds. Personal service is always available by calling First
American Funds Investor Services at 1-800-637-2548.
FIRST AMERICAN FUNDS P.O. Box 1330, Minneapolis, MN 55440-1330
First American Asset Management, a division of U.S. Bank National Association,
serves as the investment advisor to the First American Funds.
First American Funds are distributed by SEI Investment Distribution Co. which
is located in Oaks, PA 19456 and is not an affiliate of U.S. Bank.
7/2000 3055-00 FPTF(R)
3 FUND PROFILE - First American Tax Free Fund
