<PAGE>
[GRAPHIC]
AMERICAN MUNICIPAL
INCOME PORTFOLIO
XAA
SEMIANNUAL REPORT
2000
[LOGO] FIRST AMERICAN-Registered Trademark-
ASSET MANAGEMENT
<PAGE>
[LOGO] FIRST AMERICAN-Registered Trademark-
ASSET MANAGEMENT
AMERICAN MUNICIPAL
INCOME PORTFOLIO
TABLE OF CONTENTS FUND OBJECTIVE
2 Fund Overview High current income exempt from regular federal
income tax, consistent with preservation of
6 Financial Statements capital. The fund's income and capital gains
and Notes may be subject to state or local tax and the
federal alternative minimum tax. Investors
15 Investments in should consult their tax advisors. As with other
Securities investment companies, there can be no assurance
this fund will achieve its objective.
21 Shareholder Update
PRIMARY INVESTMENTS
A diverse range of municipal securities rated
investment-grade or of comparable quality
when purchased. These securities may include
municipal-derivative securities, such as
inverse floating-rate and inverse
interest-only municipal securities, which may
be more volatile than traditional municipal
securities in certain market conditions.
-------------------------------------------------------
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
-------------------------------------------------------
<PAGE>
AVERAGE ANNUAL TOTAL RETURNS
Based on net asset value for the periods ended July 31, 2000
<TABLE>
<CAPTION>
One Year Five Year Since Inception
<S> <C> <C> <C>
AMERICAN MUNICIPAL INCOME PORTFOLIO 1.94% 6.53% 5.57%
(XAA), inception 6/25/1993)
Lipper General Municipal Bond Funds: Leveraged Average 2.17% 4.91% 4.56%
Lehman Brothers Municipal Long Bond Index 2.91% 6.50% 5.75%
</TABLE>
Average annual total returns are through July 31, 2000, and are based on the
change in net asset value (NAV). They reflect the reinvestment of
distributions but do not reflect sales charges. NAV-based performance is used
to measure investment management results.
Average annual total returns based on the change in market price for the
one-year, five-year, and since-inception periods ended July 31, 2000, were
1.15%, 6.05%, and 3.29%, respectively. These returns assume reinvestment of
all distributions and reflect sales charges on those distributions described
in the fund's dividend reinvestment plan, but not on initial purchases.
PLEASE REMEMBER, YOU COULD LOSE MONEY WITH THIS INVESTMENT. NEITHER SAFETY OF
PRINCIPAL NOR STABILITY OF INCOME IS GUARANTEED. Past performance does not
guarantee future results. The investment return and principal value of an
investment will fluctuate so that fund shares, when sold, may be worth more
or less than their original cost. Closed-end funds, such as this fund, often
trade at discounts to NAV. Therefore, you may be unable to realize the full
NAV of your shares when you sell.
The Lipper General Municipal Bond Funds: Leveraged Average represents the
average annual total return, with distributions reinvested, of leveraged
perpetual and term-trust national closed-end municipal funds as characterized
by Lipper Inc. The Lehman Brothers Municipal Long Bond Index is comprised of
municipal bonds with more than 22 years to maturity and an average credit
quality of AA. The index is unmanaged and does not include any fees or
expenses in its total-return figures.
The since-inception numbers for the Lipper average and Lehman index are
calculated from the month end following the fund's inception through July 31,
2000.
American Municipal Income Portfolio SEMIANNUAL REPORT 2000 1 )
<PAGE>
[GRAPHIC] FUND OVERVIEW
FUND MANAGEMENT SEPTEMBER 15, 2000
DOUG WHITE, CFA, FOR THE SEMIANNUAL REPORTING PERIOD ENDING JULY 31,
is primarily 2000, AMERICAN MUNICIPAL INCOME PORTFOLIO HAD A TOTAL
responsible for the RETURN OF 8.13%* BASED ON ITS NET ASSET VALUE (NAV).
management of This compares to the average return of 6.24% for a
American Municipal group of similar funds in the Lipper General
Income Portfolio. He Municipal Bond Funds: Leveraged category. The Lehman
has 17 years of Brothers Municipal Long Bond Index, the fund's
financial experience. broad-based benchmark that reflects no fees or
expenses, returned 9.53% during the same period. The
CATHERINE STIENSTRA fund's total return, based on its market price, was
assists with the 6.72%* during the six months.
management of
American Municipal THE FUND OUTPERFORMED ITS PEERS OVER THE SIX-MONTH
Income Portfolio. She PERIOD AS MUNICIPAL BOND YIELDS FELL. This came on
has 12 years of the heels of the previous six-month period of rising
financial experience. rates where the fund did not
*All returns assume reinvestment of all
distributions and do not reflect sales charges,
except the fund's total return based on market
price, which does reflect sales charges on those
distributions described in the fund's dividend
reinvestment plan, but not on initial purchases.
Past performance does not guarantee future results.
The investment return and principal value of an
investment will fluctuate so that fund shares, when
sold, may be worth more or less than their original
cost.
-----------------------------------------------------
PORTFOLIO COMPOSITION
As a percentage of total assets on July 31, 2000
[CHART]
<TABLE>
<S> <C>
Housing Revenue 18%
IDR Pollution Control Revenue 1%
Other Assets 1%
Health Care Revenue 29%
Recreation Authority Revenue 2%
Short-Term Securities 2%
Water/Sewer Revenue 1%
Utility Revenue 17%
Certificates of Participation 5%
Municipal Bond Bank 1%
Educational Revenue 3%
Building Revenue 1%
General Obligations 14%
Investment Companies 2%
Transportation Revenue 3%
</TABLE>
( 2 American Municipal Income Portfolio SEMIANNUAL REPORT 2000
<PAGE>
perform as well. American Municipal Income Portfolio
typically does better in a steady or falling-rate
environment because it focuses on longer-duration
municipal bonds in order to generate attractive
tax-free income. These longer-duration bonds have
higher yields but also exhibit more price volatility
in a fluctuating interest-rate environment.
AS THE U.S. ECONOMIC EXPANSION THAT WE'VE ENJOYED
FOR THE PAST 10 YEARS CONTINUES, THE FUND REMAINS
DIVERSIFIED ACROSS MANY REGIONS AND SECTORS IN THE
UNITED STATES. (See charts below and on page 2.) We
are currently not adding any new issues in
California as the yields on these bonds are
substantially below the national average as the
result of increased demand for municipal bonds in
that state. We are also considering temporarily
reducing our holdings in Texas as we anticipate a
substantial increase in newly issued municipal bonds
there. Although Texas remains sound from a credit
quality standpoint, the increase in supply could
temporarily result in
---------------------------------------------------
GEOGRAPHICAL DISTRIBUTION
AS A PERCENTAGE OF TOTAL ASSETS ON JULY 31, 2000
[EDGAR REPRESENTATION OF PRINTED GRAPHIC]
<TABLE>
<S> <C>
Arizona 4%
California 5%
Colorado less than 1%
Georgia 9%
Hawaii 2%
Illinois 7%
Indiana 5%
Iowa 2%
Kansas 1%
Kentucky 2%
Louisiana 4%
Michigan 10%
Minnesota 10%
Nebraska 1%
Nevada 2%
New Mexico 7%
New York 2%
Ohio 2%
South Carolina 1%
South Dakota 4%
Tennessee 2%
Texas 7%
Utah 4%
Washington 2%
Wisconsin 2%
</TABLE>
American Municipal Income Portfolio SEMIANNUAL REPORT 2000 3 )
<PAGE>
[GRAPHIC] FUND OVERVIEW CONTINUED
increased rates and decreased prices. The fund
maintains an emphasis on quality housing and health
care revenue bonds across the United States as these
sectors have produced attractive income for the fund.
SUPPLY REMAINS AN ISSUE FOR TAX-FREE BOND FUNDS AS
MUNICIPALITIES ARE NOT ISSUING AS MANY NEW BONDS IN
THE MARKETPLACE. The ongoing economic expansion has
allowed many municipalities to fund projects with
increased tax receipts, reducing their needs to
borrow in the municipal market. Therefore, the
overall national supply of municipal bonds is down
approximately 20% from a year ago. Normally this
drop in supply would result in a greater drop in
yields and increase in prices than we have observed.
However, overall demand is also down in the
municipal bond market as money has been flowing out
of bond funds and into individual bonds and the
stock market.
THE FUND CONTINUES TO EMPHASIZE HIGHER-QUALITY
MUNICIPAL SECURITIES. As you can see from the credit
quality breakdown below, 85% of the fund is
considered investment-grade quality. This means the
quality of the bonds is in one of the four highest
categories according to industry rating services
such as Standard & Poor's or Moody's. An
investment-grade rating means that there is a low
risk that the bond issuer will default in its timely
payment of interest and principal. We are also
---------------------------------------------------
CREDIT QUALITY BREAKDOWN
As of July 31, 2000, according to Standard & Poor's
and Moody's Investors Service
<TABLE>
<S> <C>
AAA/Aaa 65%
AA/Aa 6%
A 9%
BBB/Baa 5%
Nonrated 13%
Nonrated (closed-end investment companies) 2%
------------------------------------------ ----
100%
</TABLE>
( 4 American Municipal Income Portfolio SEMIANNUAL REPORT 2000
<PAGE>
overweighted at the higher end of the
investment-grade spectrum--71% of the fund's
holdings are rated AA or AAA--to balance out the 13%
position we have in nonrated bonds. Prior to
purchase, we subject nonrated holdings to much of
the rigorous analysis that credit rating agencies
perform on bonds they rate. As portfolio holdings,
these positions are also more closely and frequently
monitored by our research staff than most of the
portfolio's investment-grade holdings.
THANK YOU FOR YOUR INVESTMENT IN AMERICAN MUNICIPAL
INCOME PORTFOLIO AND THE TRUST YOU HAVE PLACED IN US
AS MANAGERS. We will continue to closely monitor the
quality of the municipal bonds in the portfolio and
carefully assess new opportunities in an effort to
reach your goal of attractive monthly income that is
free from federal income taxes.
---------------------------------------------------
PREFERRED STOCK
The preferred stock issued by XAA pays dividends at
a specified rate and has preference over common
stock in the payments of dividends and the
liquidation of assets. Rates paid on preferred stock
are reset every seven days and are based on
short-term, tax-exempt interest rates. Preferred
shareholders accept these short-term rates in
exchange for low credit risk (shares of preferred
stock are rated AAA by Moody's and S&P) and high
liquidity (shares of preferred stock trade at par
and are remarketed every seven days). The proceeds
from the sale of preferred stock are invested at
intermediate- and long-term tax-exempt rates.
Because these intermediate- and long-term rates are
normally higher than the short-term rates paid on
preferred stock, common shareholders benefit by
receiving higher dividends and/or an increase to the
dividend reserve. However, the risk of having
preferred stock is that if short-term rates rise
higher than intermediate- and long-term rates,
creating an inverted yield curve, common
shareholders may receive a lower rate of return than
if their fund did not have any preferred stock
outstanding. This type of economic environment is
unusual and historically has been short term in
nature. Investors should also be aware that the
issuance of preferred stock results in the
leveraging of common stock, which increases the
volatility of both the NAV of the fund and the
market value of shares of common stock.
American Municipal Income Portfolio SEMIANNUAL REPORT 2000 5 )
<PAGE>
FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES July 31, 2000
................................................................................
<TABLE>
<S> <C>
ASSETS:
Investments in securities at market value* (note 2) ....... $123,765,871
Cash in bank on demand deposit ............................ 10,330
Dividends and accrued interest receivable ................. 1,392,198
------------
Total assets ............................................ 125,168,399
------------
LIABILITIES:
Preferred stock dividends payable (note 3) ................ 24,014
Payable for investment securities purchased on a when-issued
basis (note 2) .......................................... 1,953,183
Accrued investment management fee ......................... 36,299
Accrued administrative fee ................................ 29,351
Other accrued expenses .................................... 25,018
------------
Total liabilities ....................................... 2,067,865
------------
Net assets applicable to outstanding capital stock ...... $123,100,534
============
COMPOSITION OF NET ASSETS:
Capital stock and additional paid-in capital (common and
preferred stock) ........................................ $124,031,021
Undistributed net investment income ....................... 848,449
Accumulated net realized loss on investments .............. (3,797,877)
Unrealized appreciation of investments .................... 2,018,941
------------
Total - representing net assets applicable to capital
stock ................................................. $123,100,534
============
* Investments in securities at identified cost ............ $121,746,930
============
NET ASSET VALUE AND MARKET PRICE OF COMMON STOCK:
Net assets applicable to outstanding common stock ......... $ 79,600,534
Shares of common stock outstanding (authorized 200 million
shares of $0.01 par value) .............................. 5,756,267
Net asset value ........................................... $ 13.83
Market price .............................................. $ 12.13
LIQUIDATION PREFERENCE OF PREFERRED STOCK (NOTE 3):
Net assets applicable to outstanding preferred stock ...... $ 43,500,000
Shares of preferred stock outstanding (authorized one
million shares) ......................................... 1,740
Liquidation preference per share .......................... $ 25,000
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
2000 Semiannual Report 6 American Municipal Income Portfolio
<PAGE>
FINANCIAL STATEMENTS (Unaudited) (continued)
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Six Months Ended July 31, 2000
................................................................................
<TABLE>
<S> <C>
INCOME:
Interest .................................................. $ 4,048,075
Exempt-interest dividends from investment companies ........ 33,721
-----------
Total investment income .................................. 4,081,796
-----------
EXPENSES (NOTE 5):
Investment management fee ................................. 208,098
Administrative fee ........................................ 120,040
Remarketing agent fee ..................................... 54,227
Custodian fees ............................................ 9,215
Transfer agent fees ....................................... 17,882
Reports to shareholders ................................... 11,819
Directors' fees ........................................... 1,496
Audit and legal fees ...................................... 18,038
Other expenses ............................................ 34,868
-----------
Total expenses .......................................... 475,683
-----------
Net investment income ................................... 3,606,113
-----------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS:
Net realized loss on investments (note 4) ................. (1,081,323)
Net change in unrealized appreciation or depreciation of
investments ............................................. 4,408,318
-----------
Net gain on investments ................................. 3,326,995
-----------
Net increase in net assets resulting from
operations .......................................... $ 6,933,108
===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
2000 Semiannual Report 7 American Municipal Income Portfolio
<PAGE>
FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
................................................................................
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
7/31/00 YEAR ENDED
(UNAUDITED) 1/31/00
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income ..................................... $ 3,606,113 $ 5,929,628
Net realized loss on investments .......................... (1,081,323) (216,626)
Net change in unrealized appreciation or depreciation of
investments ............................................. 4,408,318 (12,845,247)
------------ ------------
Net increase (decrease) in net assets resulting from
operations ............................................ 6,933,108 (7,132,245)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Common stock dividends .................................... (2,279,482) (4,443,550)
Preferred stock dividends ................................. (863,411) (1,429,704)
------------ ------------
Total distributions ..................................... (3,142,893) (5,873,254)
------------ ------------
Total increase (decrease) in net assets ................. 3,790,215 (13,005,499)
Net assets at beginning of period ......................... 119,310,319 132,315,818
------------ ------------
Net assets at end of period ............................... $123,100,534 $119,310,319
============ ============
Undistributed net investment income ....................... $ 848,449 $ 385,229
============ ============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
2000 Semiannual Report 8 American Municipal Income Portfolio
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
(1) ORGANIZATION
............................
American Municipal Income Portfolio Inc. (the fund) is
registered under the Investment Company Act of 1940 (as amended)
as a diversified, closed-end management investment company. The
fund invests in a diverse range of municipal securities rated
investment grade or of comparable quality when purchased. These
securities may include municipal derivative securities, such as
inverse floating rate and inverse interest-only municipal
securities. Fund shares are listed on the New York Stock
Exchange under the symbol XAA.
(2) SUMMARY OF
SIGNIFICANT
ACCOUNTING
POLICIES
............................
INVESTMENTS IN SECURITIES
Portfolio securities for which market quotations are readily
available are valued at current market value. If market
quotations or valuations are not readily available, or if such
quotations or valuations are believed to be inaccurate,
unreliable or not reflective of market value, portfolio
securities are valued according to procedures adopted by the
fund's board of directors in good faith at "fair value", that
is, a price that the fund might reasonably expect to receive for
the security or other asset upon its current sale.
The current market value of certain fixed income securities is
provided by an independent pricing service. Fixed income
securities for which prices are not available from an
independent pricing service but where an active market exists
are valued using market quotations obtained from one or more
dealers that make markets in the securities or from a
widely-used quotation system. Short-term securities with
maturities of 60 days or less are valued at amortized cost,
which approximates market value.
Pricing services value domestic equity securities traded on a
securities exchange or Nasdaq at the last reported sale price,
up to the time of valuation. If there are no reported sales of a
security on the valuation date, it is valued at the mean between
the published bid and asked prices reported by the exchange or
Nasdaq. If there are no sales and no published bid and asked
--------------------------------------------------------------------------------
2000 Semiannual Report 9 American Municipal Income Portfolio
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
--------------------------------------------------------------------------------
quotations for a security on the valuation date or the security
is not traded on an exchange or Nasdaq, the pricing service may
obtain market quotations directly from broker-dealers.
Securities transactions are accounted for on the date securities
are purchased or sold. Realized gains and losses are calculated
on the identified-cost basis. Distributions of short-term and
long-term realized gains received from closed-end investment
companies are recorded as realized gains. Interest income,
including amortization of bond discount and premium, is recorded
on an accrual basis.
INVERSE FLOATERS
As part of its investment strategy, the fund may invest in
certain securities for which the potential income return is
inversely related to changes in a floating interest rate
("inverse floater"). In general, income on inverse floaters will
decrease when short-term interest rates increase and increase
when short-term interest rates decrease. Investments in inverse
floaters may be characterized as derivative securities and may
subject the fund to the risks of reduced or eliminated interest
payments and losses of invested principal. In addition, inverse
floaters have the effect of providing investment leverage and,
as a result, the market value of such securities will generally
be more volatile than that of fixed rate, tax-exempt securities.
To the extent the fund invests in inverse floaters, the net
asset value of the fund's shares may be more volatile than if
the fund did not invest in such securities. At July 31, 2000,
the fund had no investments in inverse floaters.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS
Delivery and payment for securities that have been purchased by
the fund on a when-issued or forward-commitment basis can take
place a month or more after the transaction date. During this
period, such securities do not earn interest, are subject to
market fluctuation and may increase or decrease in value prior
to their delivery. The fund segregates, with its custodian,
assets with a market value equal to the amount of its purchase
commitments. The purchase of securities on a when-issued or
forward-commitment basis may increase the volatility of the
--------------------------------------------------------------------------------
2000 Semiannual Report 10 American Municipal Income Portfolio
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
--------------------------------------------------------------------------------
fund's net asset value if the fund makes such purchases while
remaining substantially fully invested. As of July 31, 2000, the
fund had entered into outstanding when-issued or forward
commitments of $1,953,183.
FEDERAL TAXES
The fund intends to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and
not be subject to federal income tax. Therefore, no income tax
provision is required. The fund also intends to distribute its
taxable net investment income and realized gains, if any, to
avoid the payment of any federal excise taxes.
Net investment income and net realized gains and losses may
differ for financial statement and tax purposes primarily
because of market discount amortization. The character of
distributions made during the year from net investment income or
net realized gains may differ from its ultimate characterization
for federal income tax purposes. In addition, due to the timing
of dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized
gains or losses were recorded by the fund.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income are made monthly for
common shareholders and weekly for preferred shareholders.
Common stock distributions are recorded as of the close of
business on the ex-dividend date and preferred stock dividends
are accrued daily. Net realized gains distributions, if any,
will be made at least annually. Distributions are payable in
cash or, for common shareholders pursuant to the fund's dividend
reinvestment plan, reinvested in additional shares of the fund's
common stock. Under the plan, common shares will be purchased in
the open market.
USE OF ESTIMATES
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States
--------------------------------------------------------------------------------
2000 Semiannual Report 11 American Municipal Income Portfolio
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
--------------------------------------------------------------------------------
requires management to make estimates and assumptions that
affect the reported amounts in the financial statements. Actual
results could differ from these estimates.
(3) REMARKETED
PREFERRED
STOCK
............................
American Municipal Income Portfolio has issued and, as of
July 31, 2000, has outstanding 1,740 shares of remarketed
preferred stock (870 shares in class "T" and 870 shares in class
"TH") (RP) with a liquidation preference of $25,000 per share.
The dividend rate on the RP is adjusted every seven days (on
Tuesdays for class "T" and on Thursdays for class "TH"), as
determined by the remarketing agent. On July 31, 2000, the
dividend rates were 4.15% and 3.85% for class "T" and "TH,"
respectively.
RP is a registered trademark of Merrill Lynch & Company.
(4) INVESTMENT
SECURITY
TRANSACTIONS
............................
Cost of purchases and proceeds from sales of securities, other
than temporary investments in short-term securities, for the six
months ended July 31, 2000, aggregated $22,776,960 and
$20,672,400, respectively.
(5) EXPENSES
............................
INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
The fund has entered into the following agreements with U.S.
Bank National Association (U.S. Bank) acting through its
division, First American Asset Management (the advisor and
administrator):
The investment advisory agreement provides the advisor with a
monthly investment management fee in an amount equal to an
annualized percentage of 0.35% of the fund's average weekly net
assets (computed by subtracting liabilities, which exclude
preferred stock, from the value of the total assets of the
fund). For its fee, the advisor provides investment advice and,
in general, conducts the management and investment activities of
the fund.
The administration agreement provides the administrator with a
monthly fee in an amount equal to an annualized percentage of
0.20% of the fund's average weekly net assets (computed by
subtracting liabilities, which exclude preferred stock, from the
--------------------------------------------------------------------------------
2000 Semiannual Report 12 American Municipal Income Portfolio
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
--------------------------------------------------------------------------------
value of the total assets of the fund). For its fee, the
administrator provides regulatory reporting and record-keeping
services for the fund.
REMARKETING AGENT FEE
The fund has entered into a remarketing agreement with Merrill
Lynch (the remarketing agent). The remarketing agreement
provides the remarketing agent with a monthly fee in an amount
equal to an annualized rate of 0.25% of the fund's average
amount of RP outstanding. For its fee, the remarketing agent
will remarket shares of RP tendered to it on behalf of
shareholders and will determine the applicable dividend rate for
each seven-day dividend period.
OTHER FEES AND EXPENSES
In addition to the investment management, administrative and
remarketing agent fees, the fund is responsible for paying most
other operating expenses including: outside directors' fees and
expenses; custodian fees; registration fees; printing and
shareholder reports; transfer agent fees and expenses; legal and
auditing services; insurance; interest; taxes and other
miscellaneous expenses. During the six months ended July 31,
2000, the fund paid $8,968 to U.S. Bank for custody services.
(6) CAPITAL LOSS
CARRYOVER
............................
For federal income tax purposes, the fund had capital loss
carryovers at January 31, 2000 , which, if not offset by
subsequent capital gains, will expire on the fund's fiscal year-
ends as indicated below. It is unlikely the board of directors
will authorize a distribution of any net realized capital gains
until the available capital loss carryovers have been offset or
expire.
<TABLE>
<CAPTION>
CAPITAL LOSS
CARRYOVER EXPIRATION
------------ ---------------
<S> <C> <C>
$ 942,779 2003
1,557,574 2004
216,201 2008
----------
$2,716,554
==========
</TABLE>
--------------------------------------------------------------------------------
2000 Semiannual Report 13 American Municipal Income Portfolio
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
(7) FINANCIAL
HIGHLIGHTS
............................
Per-share data for a share of common stock outstanding
throughout each period and selected information for each period
are as follows:
AMERICAN MUNICIPAL INCOME PORTFOLIO
<TABLE>
<CAPTION>
Six Months
Ended Year Year Year Year Year
7/31/00 Ended Ended Ended Ended Ended
(Unaudited) 1/31/00 1/31/99 (g) 1/31/98 1/31/97 1/31/96
----------- --------- ----------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, common stock, beginning
of period ............................ $13.17 $ 15.43 $15.07 $13.98 $14.42 $11.97
------ ------- ------ ------ ------ ------
Operations:
Net investment income ................ 0.63 1.03 1.02 1.00 1.07 1.07
Net realized and unrealized gains
(losses) on investments ............ 0.58 (2.27) 0.36 1.12 (0.50) 2.52
------ ------- ------ ------ ------ ------
Total from operations .............. 1.21 (1.24) 1.38 2.12 0.57 3.59
------ ------- ------ ------ ------ ------
Distributions to shareholders from net
investment income:
Paid to common shareholders .......... (0.40) (0.77) (0.75) (0.76) (0.75) (0.85)
Paid to preferred shareholders ....... (0.15) (0.25) (0.27) (0.27) (0.26) (0.29)
------ ------- ------ ------ ------ ------
Total distributions to
shareholders ..................... (0.55) (1.02) (1.02) (1.03) (1.01) (1.14)
------ ------- ------ ------ ------ ------
Net asset value, common stock, end
of period ........................ $13.83 $ 13.17 $15.43 $15.07 $13.98 $14.42
====== ======= ====== ====== ====== ======
Market value, common stock, end of
period ........................... $12.13 $ 11.75 $14.00 $13.44 $12.13 $12.50
====== ======= ====== ====== ====== ======
SELECTED INFORMATION
Total return, common stock, net asset
value (a) ............................ 8.13% (9.88)% 7.62% 13.63% 2.41% 28.31%
Total return, common stock, market
value (b) ............................ 6.72% (10.81)% 10.07% 17.53% 3.29% 15.21%
Net assets at end of period
(in millions) ........................ $ 123 $ 119 $ 132 $ 130 $ 124 $ 127
Ratio of expenses to average weekly net
assets applicable to common
stock (c) ............................ 1.24% (h) 1.20% 1.13% 1.19% 1.22% 1.20%
Ratio of net investment income to
average weekly net assets applicable
to common stock (d)(e) ............... 7.14% (h) 5.49% 5.02% 5.10% 5.90% 5.81%
Portfolio turnover rate (excluding
short-term securities) ............... 17% 10% 19% 46% 28% 54%
Remarketed preferred stock outstanding
end of period (in millions) .......... $ 44 $ 44 $ 44 $ 44 $ 44 $ 44
Asset coverage per share
(in thousands) (f) ................... $ 71 $ 69 $ 76 $ 75 $ 71 $ 73
Liquidation preference and market value
per share of preferred stock
(in thousands) ....................... $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
</TABLE>
(a) ASSUMES REINVESTMENT OF DISTRIBUTIONS AT NET ASSET VALUE AND DOES NOT
REFLECT A SALES CHARGE.
(b) ASSUMES REINVESTMENT OF DISTRIBUTIONS AT ACTUAL PRICES PURSUANT TO THE
FUND'S DIVIDEND REINVESTMENT PLAN.
(c) RATIO OF EXPENSES TO TOTAL AVERAGE WEEKLY NET ASSETS IS 0.79%, 0.78%,
0.75%, 0.78%, 0.78% AND 0.77%, IN THE SIX MONTHS ENDED JULY 31, 2000, AND
FISCAL YEARS 2000, 1999, 1998, 1997, AND 1996, RESPECTIVELY. DIVIDENDS PAID
TO PREFERRED SHAREHOLDERS ARE NOT CONSIDERED AN EXPENSE.
(d) RATIO REFLECTS TOTAL NET INVESTMENT INCOME LESS DIVIDENDS PAID TO PREFERRED
SHAREHOLDERS FROM NET INVESTMENT INCOME DIVIDED BY AVERAGE WEEKLY NET
ASSETS APPLICABLE TO COMMON STOCK.
(e) RATIO OF NET INVESTMENT INCOME TO TOTAL AVERAGE WEEKLY NET ASSETS IS 6.01%,
4.72%, 4.52%, 4.58%, 5.02%, AND 5.13% IN THE SIX MONTHS ENDED JULY 31,
2000, AND FISCAL YEARS 2000, 1999, 1998, 1997, AND 1996, RESPECTIVELY.
(f) REPRESENTS TOTAL NET ASSETS DIVIDED BY PREFERRED SHARES OUTSTANDING.
(g) EFFECTIVE AUGUST 10, 1998, THE ADVISOR CHANGED FROM PIPER CAPITAL
MANAGEMENT TO U.S. BANK.
(h) ANNUALIZED.
--------------------------------------------------------------------------------
2000 Semiannual Report 14 American Municipal Income Portfolio
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL INCOME PORTFOLIO July 31, 2000
<S> <C> <C>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
----------------------- ------------- ------------
<S> <C> <C>
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
MUNICIPAL LONG-TERM SECURITIES (97.0%):
ARIZONA (4.2%):
Douglas Community Housing (Callable 1/20/10 at 102),
6.13%, 7/20/41 .................................... $1,000,000 $ 1,007,760
Gilbert Industrial Development Revenue (Callable
2/1/09 at 102), 5.85%, 2/1/19 ..................... 1,000,000 922,550
Pima County United School District (FGIC),
8.38%, 7/1/13 ..................................... 2,450,000(b) 3,184,706
------------
5,115,016
------------
CALIFORNIA (4.8%):
Duarte Redevelopment Agency (Escrowed to maturity),
6.88%, 11/1/11 .................................... 5,000,000(d) 5,900,500
------------
COLORADO (0.4%):
Water Reserve and Power Development (Callable 9/1/06
at 101), 5.90%, 9/1/16 ............................ 500,000 518,405
------------
GEORGIA (9.1%):
Municipal Electrical Authority (FGIC),
6.50%, 1/1/12 ..................................... 10,000,000(b)(d) 11,209,000
------------
HAWAII (2.0%):
State Department of Budget and Finance,
6.40%, 7/1/13 ..................................... 2,415,000 2,503,027
------------
ILLINOIS (7.1%):
Augustana College Revenue (Callable 10/01/07 at 100),
5.70%, 10/1/11 .................................... 500,000 515,060
Chicago O'Hare Airport Facility, 5.35%, 9/1/16 ...... 1,000,000 855,080
Chicago O'Hare Airport Facility, AMT,
5.20%, 4/1/11 ..................................... 1,000,000(b) 884,780
Chicago State University Revenue (MBIA) (Prerefunded
to 12/1/04 at 102), 6.00%, 12/1/12 ................ 1,000,000(b)(e) 1,071,190
Health Facility Authority-Lutheran General Hospital
7.00%, 4/1/08-4/1/14 .............................. 1,500,000 1,655,625
Health Facility Authority-Lutheran General Hospital
(Prerefunded to 1/1/02 at 102), 6.80%, 1/1/22 ..... 1,000,000(e) 1,047,810
Kane County School District (FGIC) (Prerefunded to
2/1/05 at 100), 5.75%, 2/1/15 ..................... 1,000,000(b)(e) 1,044,620
Rochelle Electric Systems (AMBAC) (Callable 5/1/06 at
102), 5.20%, 5/1/16 ............................... 750,000(b) 724,282
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 15 American Municipal Income Portfolio
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL INCOME PORTFOLIO
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
----------------------- ------------- ------------
<S> <C> <C>
Rockford Multifamily Housing Revenue (Callable
1/20/08 at 102), AMT, 5.88%, 1/20/38 .............. $1,000,000(b) $ 940,480
------------
8,738,927
------------
INDIANA (4.8%):
Health Facility Authority-Columbus Hospital (FSA),
7.00%, 8/15/15 .................................... 2,670,000(b) 3,089,404
Health Facility Authority-Greenwood Village South
(Callable 5/15/08 at 101), 5.50%, 5/15/18 ......... 2,280,000 1,849,240
Municipal Bond Bank (Callable 2/1/04 at 102),
6.00%, 2/1/16 ..................................... 1,000,000 1,024,880
------------
5,963,524
------------
IOWA (1.7%):
Hospital Facilities Authority (Callable 2/15/10 at
101), 6.75%, 2/15/15 .............................. 1,000,000 1,047,580
Sheldon Health Care Facilities (Callable 3/1/04 at
101), 6.15%, 3/1/16 ............................... 1,000,000 1,004,440
------------
2,052,020
------------
KANSAS (0.9%):
Kansas City Utility Systems Revenue (FGIC) (Callable
9/1/04 at 102), 6.25%, 9/1/14 ..................... 1,000,000(b) 1,068,460
------------
KENTUCKY (2.4%):
State Housing Authority (Callable 11/01/29 at 100),
6.08%, 1/1/30 ..................................... 3,000,000 2,999,820
------------
LOUISIANA (4.4%):
De Soto Parish Pollution Control (MBIA) (Callable
1/1/03 at 102), 7.60%, 1/1/19 ..................... 5,000,000(b) 5,365,500
------------
MICHIGAN (10.2%):
Black River School District (Callable 2/1/10 at 100),
7.25%, 2/1/30 ..................................... 1,000,000 1,008,870
Comstock Park Public Schools (FGIC),
7.88%, 5/1/11 ..................................... 3,145,000(b)(d) 3,886,559
Hospital Financing Authority-Daughters Charity
(Escrowed to maturity, callable 11/1/05 at 101),
5.25%, 11/1/15 .................................... 3,000,000 2,962,590
Kent Hospital Financial Authority (MBIA) (Callable
1/15/08 at 100), 7.25%, 1/15/13 ................... 4,000,000(b)(d) 4,668,320
------------
12,526,339
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 16 American Municipal Income Portfolio
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL INCOME PORTFOLIO
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
----------------------- ------------- ------------
<S> <C> <C>
MINNESOTA (9.9%):
Agricultural and Economic Development Board Health
Care System (Callable 11/15/10 at 101),
6.38%, 11/15/29 ................................... $2,000,000 $ 2,016,580
Eden Prairie Multifamily Housing Revenue (Callable
1/20/08 at 102), 5.60%, 7/20/28 ................... 900,000 851,463
Minneapolis and St. Paul Metropolitan Airport
Commission (FGIC) (Callable 1/1/10 at 101),
5.75%, 1/1/32 ..................................... 2,000,000(b) 2,012,340
Minneapolis Special School District #1 (MBIA)
(Callable 2/1/03 at 100), 5.45%, 2/1/15 ........... 3,630,000(b) 3,632,505
Moorhead Golf Course Revenue (Callable 12/1/08 at
100), 5.88%, 12/1/21 .............................. 2,890,000 2,769,516
State Housing and Finance Agency (Callable 7/1/02 at
102), AMT, 6.85%, 1/1/24 .......................... 835,000(b) 857,345
------------
12,139,749
------------
MISSOURI (1.3%):
Kansas City Industrial Development Authority
(Callable 11/15/08 at 102), 5.38%, 11/15/09 ....... 1,780,000 1,629,590
------------
NEBRASKA (1.5%):
Educational Financial Authority Revenue (Callable
12/15/08 at 100), 5.35%, 12/15/18 ................. 2,040,000 1,848,342
------------
NEVADA (2.5%):
Washoe County School District (MBIA) (Callable 6/1/04
at 101), 5.75%, 6/1/12 ............................ 3,000,000(b) 3,080,040
------------
NEW MEXICO (7.2%):
Mortgage Finance Authority,
6.50%-6.88%, 1/1/25-7/1/25 ........................ 8,375,000 8,904,254
------------
NEW YORK (0.8%):
New York City Water Finance Authority (Callable
6/15/10 at 101), 6.00%, 6/15/33 ................... 1,000,000 1,029,700
------------
OHIO (2.3%):
Franklin County Health Care Facility Revenue
(Callable 8/15/08 at101), 5.25%, 8/15/12 .......... 1,000,000 880,840
Richland County Hospital Facilities (Callable
11/15/10 at 101),
6.13%-6.38%, 11/15/16-11/15/30 .................... 2,000,000 1,947,380
------------
2,828,220
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 17 American Municipal Income Portfolio
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL INCOME PORTFOLIO
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
----------------------- ------------- ------------
<S> <C> <C>
SOUTH DAKOTA (3.7%):
Health & Education Facilities Authority - Prairie
Crossings (Callable at 11/01/09 at 102),
6.00%, 11/1/19 .................................... $2,000,000 $ 2,045,780
Housing and Development Authority (Callable 5/1/04 at
102), 5.80%, 5/1/14 ............................... 1,270,000 1,291,438
Sioux Falls Health Facilities-Evangelical Lutheran
(AMBAC) (Callable 6/1/08 at 102),
5.35%, 6/1/23 ..................................... 1,250,000(b) 1,175,887
------------
4,513,105
------------
TENNESSEE (2.3%):
Johnson City Health & Education Facilities (Callable
7/1/12 at 103), 7.50%, 7/1/33 ..................... 2,000,000 1,927,240
Shelby County Health Education & Housing Facilities
Board Revenue, 5.50%, 7/1/20 ...................... 1,000,000 957,960
------------
2,885,200
------------
TEXAS (6.6%):
Abilene Health Facility Development (Callable 8/15/08
at 101), 5.88%, 11/15/18 .......................... 1,150,000 967,506
Arlington Independent School District (Callable
2/15/05 at 100), 6.00%, 2/15/15 ................... 670,000 699,098
Arlington Independent School District
(PSF)(Prerefunded 2/15/2005 at 100),
6.00%, 2/15/15 .................................... 605,000(b)(e) 638,317
Fort Bend Independent School District (Callable
2/15/08 at 100), 5.00%, 2/15/14 ................... 1,000,000 978,810
Houston Water Conveyance System (AMBAC),
7.50%, 12/15/16 ................................... 745,000(b) 901,673
North Central Health Facilities Development Revenue,
7.25%, 11/15/19 ................................... 3,000,000 2,878,050
Tarrant County Housing Finance Authority (Callable
7/1/10 at 102), 6.88%, 7/1/30 ..................... 1,000,000 1,001,130
------------
8,064,584
------------
UTAH (3.7%):
Municipal Power-San Juan Project (MBIA) (Prerefunded
to 6/1/04 at 102), 6.25%, 6/1/14 .................. 1,300,000(b)(e) 1,395,394
NEBO County School District (FGIC) (Prerefunded to
6/15/04 at 100), 5.75%, 6/15/14 ................... 3,000,000(b)(e) 3,120,930
------------
4,516,324
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 18 American Municipal Income Portfolio
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL INCOME PORTFOLIO
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
----------------------- ------------- ------------
<S> <C> <C>
WASHINGTON (1.6%):
Douglas County Public Utility District (MBIA)
(Callable 1/1/05 at 102), 6.00%, 1/1/15 ........... $1,000,000(b) $ 1,030,480
State Public Power Supply (Callable 7/1/08 at 102),
5.13%, 7/1/18 ..................................... 1,000,000 928,510
------------
1,958,990
------------
WISCONSIN (1.7%):
Health and Education Facilities-Beloit Hospital
(Callable 7/1/03 at 102), 5.90%, 7/1/11 ........... 625,000 596,244
State Health & Educational Facility Authority Revenue
(Callable 11/15/08 at 102), 5.75%, 11/15/27 ....... 1,800,000 1,436,094
------------
2,032,338
------------
Total Municipal Long-Term Securities
(cost: $117,461,374) ............................ 119,390,974
------------
COMMON STOCK (1.5%):
CLOSED-END INVESTMENT COMPANIES (1.5%):
Van Kampen Advantage Municipal Trust II ............. 31,500 374,063
Van Kampen Municipal Opportunity Trust .............. 46,500 653,906
Van Kampen Municipal Opportunity Trust II ........... 38,400 446,400
Van Kampen Value Municipal Trust Income ............. 34,050 425,625
------------
Total Common Stock
(cost: $1,810,652) .............................. 1,899,994
------------
MUNICIPAL SHORT-TERM SECURITIES (1.9%):
NEW YORK (0.8%):
New York, NY, Series B, 4.40%, 10/1/22 .............. 1,000,000(c) 1,000,000
------------
TEXAS (0.5%):
Harris County, 4.35%, 10/1/17 ....................... 600,000(c) 600,000
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 19 American Municipal Income Portfolio
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL INCOME PORTFOLIO
(CONTINUED)
<TABLE>
<CAPTION>
Principal
Amount/ Market
Description of Security Shares Value (a)
----------------------- ------------- ------------
<S> <C> <C>
WASHINGTON (0.6%):
Washington Health Care Facilities Authority,
4.35%, 1/1/29 ..................................... $ 300,000(c) $ 300,000
Washington State Healthcare Facilities Authority
Revenue, VRDN, 4.35%, 1/1/23 ...................... 500,000(b)(c) 500,000
------------
800,000
------------
Total Municipal Short-Term Securities
(cost: $2,400,000) .............................. 2,400,000
------------
RELATED PARTY MONEY MARKET FUND (0.1%):
First American Tax Free Obligations Fund ............ 74,903(f) 74,903
------------
Total Investments in Securities
(cost: $121,746,930) (g) ........................ $123,765,871
============
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES:
(a) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN NOTE 2 IN
THE NOTES TO FINANCIAL STATEMENTS.
(b) PORTFOLIO ABBREVIATIONS AND DEFINITIONS:
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
AMT--ALTERNATIVE MINIMUM TAX. AS OF JULY 31, 2000, THE AGGREGATE MARKET
VALUE OF SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX IS $2,682,605,
WHICH REPRESENTS 2.2% OF TOTAL NET ASSETS.
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
PSF--PERMANENT SCHOOL FUNDING
VRDN--VARIABLE RATE DEMAND NOTE
(c) FLOATING OR VARIABLE RATE OBLIGATION MATURING IN MORE THAN ONE YEAR. THE
INTEREST RATE, WHICH IS BASED ON SPECIFIC, OR AN INDEX OF, MARKET INTEREST
RATES, IS SUBJECT TO CHANGE PERIODICALLY AND IS THE EFFECTIVE RATE ON
JULY 31, 2000. THIS INSTRUMENT MAY ALSO HAVE A DEMAND FEATURE WHICH ALLOWS
THE RECOVERY OF PRINCIPAL AT ANY TIME, OR AT SPECIFIED INTERVALS NOT
EXCEEDING ONE YEAR, ON UP TO 30 DAYS' NOTICE. MATURITY DATE SHOWN
REPRESENTS FINAL MATURITY.
(d) SECURITIES PURCHASED AS PART OF A PRIVATE PLACEMENT AND MAY NOT BE SOLD TO
THE PUBLIC. THESE SECURITIES ARE CONSIDERED ILLIQUID. THE FUND IS NOT
LIMITED IN ITS ABILITY TO INVEST IN THESE ILLIQUID SECURITIES. ON JULY 31,
2000, THE AGGREGATE VALUE OF THESE INVESTMENTS WAS $ 25,664,379 OR 20.8% OF
TOTAL NET ASSETS. INFORMATION REGARDING THESE SECURITIES IS AS FOLLOWS:
<TABLE>
<CAPTION>
DATE
SECURITY PAR ACQUIRED COST BASIS
--------------------------------------------- ----------- ---------- -----------
<S> <C> <C> <C>
DUARTE, CA, REDEVELOPMENT AGENCY $ 5,000,000 9/96-2/97 $ 5,740,514
GEORGIA MUNICIPAL ELECTRICAL AUTHORITY 10,000,000 10/95 10,901,454
COMSTOCK, MI, PARK PUBLIC SCHOOLS 3,145,000 10/95-7/96 3,762,466
KENT, MI, HOSPITAL FINANCIAL
AUTHORITY-MICHIGAN HOSPITALS 4,000,000 9/96-2/97 4,625,261
</TABLE>
(e) PREREFUNDED ISSUES ARE BACKED BY U.S. GOVERNMENT OBLIGATIONS. THESE BONDS
MATURE AT THE DATE AND PRICE INDICATED.
(f) THIS MONEY MARKET FUND IS ADVISED BY U.S. BANK WHICH ALSO SERVES AS ADVISOR
FOR THE FUND. SEE NOTE 2 IN THE NOTES TO FINANCIAL STATEMENTS.
(g) ALSO APPROXIMATES COST FOR FEDERAL INCOME TAX PURPOSES. THE AGGREGATE GROSS
UNREALIZED APPRECIATION AND DEPRECIATION OF INVESTMENTS IN SECURITIES BASED
ON THIS COST WERE AS FOLLOWS:
<TABLE>
<S> <C>
GROSS UNREALIZED APPRECIATION ...... $ 3,634,431
GROSS UNREALIZED DEPRECIATION ...... (1,615,490)
-----------
NET UNREALIZED APPRECIATION ...... $ 2,018,941
===========
</TABLE>
--------------------------------------------------------------------------------
2000 Semiannual Report 20 American Municipal Income Portfolio
<PAGE>
SHAREHOLDER UPDATE
--------------------------------------------------------------------------------
ANNUAL MEETING RESULTS
An annual meeting of the fund's shareholders was held on
August 3, 2000. Each matter voted upon at that meeting, as well
as the number of votes cast for, against or withheld, the number
of abstentions, and the number of broker non-votes with respect
to such matters, are set forth below.
1. The fund's preferred and common shareholders, voting as a
class, voted to decrease the size of the board of directors
from nine members to eight members. The following votes were
cast regarding this matter:
<TABLE>
<CAPTION>
SHARES SHARES BROKER
VOTED "FOR" VOTED "AGAINST" ABSTENTIONS NON-VOTES
------------- ----------------- ----------- ---------
<S> <C> <C> <C>
5,542,266 27,561 79,272 --
</TABLE>
2. The fund's preferred shareholders elected the following
directors:
<TABLE>
<CAPTION>
SHARES SHARES WITHHOLDING
VOTED "FOR" AUTHORITY TO VOTE
------------- ------------------
<S> <C> <C>
Roger A. Gibson ........................ 1,382 6
Leonard W. Kedrowski ................... 1,382 6
</TABLE>
3. The fund's preferred and common shareholders, voting as a
class, elected the following directors:
<TABLE>
<CAPTION>
SHARES SHARES WITHHOLDING
VOTED "FOR" AUTHORITY TO VOTE
------------- ------------------
<S> <C> <C>
Robert J. Dayton ....................... 5,574,722 74,377
Andrew M. Hunter III ................... 5,574,322 74,377
John M. Murphy, Jr. .................... 5,574,722 74,377
Robert L. Spies ........................ 5,570,814 74,378
Joseph D. Strauss ...................... 5,574,372 74,377
Virginia L. Stringer ................... 5,574,721 74,378
</TABLE>
4. The fund's preferred and common shareholders, voting as a
class ratified the selection by the fund's Board of
Directors of Ernst & Young LLP as the independent public
accountants for the fund for the fiscal year ending
January 31, 2001. The following votes were cast regarding
this matter:
<TABLE>
<CAPTION>
SHARES SHARES BROKER
VOTED "FOR" VOTED "AGAINST" ABSTENTIONS NON-VOTES
------------- ----------------- ----------- ---------
<S> <C> <C> <C>
5,586,340 5,232 57,528 --
</TABLE>
--------------------------------------------------------------------------------
2000 Semiannual Report 21 American Municipal Income Portfolio
<PAGE>
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AMERICAN MUNICIPAL INCOME PORTFOLIO
2000 SEMIANNUAL REPORT
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