MINNEAPOLIS, May 17 /PRNewswire-FirstCall/ -- The Board of Directors of
First American Funds announced today that the merger of the following First
American Funds has been finalized following approval of shareholders on May 14
and unanimous approval of the Board of Directors on Feb. 21:
Funds Merged: Surviving Funds:
Capital Growth Fund..............Large Cap Growth Fund
Relative Value Fund..............Large Cap Value Fund
Growth & Income Fund.............Equity Income Fund
Science & Technology Fund........Technology Fund
Strategy Global Growth
Allocation Fund.................Strategy Aggressive Allocation Fund
The investment objectives and policies of each merging fund are similar,
and in some cases, identical to those of the corresponding surviving fund.
Thus, the merger of the funds could potentially eliminate shareholder
confusion over products that may be considered duplicative.
Goals of merging the funds include the potential for improved performance
and reduced operating expenses.
By focusing our resources on fewer products,
we can increase the potential opportunity for better investment performance
and lower operating expenses over time, explained Mark Jordahl, chief
investment officer of U.S. Bancorp Asset Management, Inc., the funds'
registered investment advisor.
Jordahl added that the increased asset sizes of the surviving funds could
increase their potential for achieving greater portfolio diversification and
may allow them to engage in block trading and other investment transactions on
potentially more advantageous terms.
The fund mergers are intended to qualify as tax-free reorganizations, with
merger expenses borne by U.S. Bancorp Asset Management.
As a result of the mergers, there are now 51 First American funds, with
more than $54 billion in assets under management as of March 31.
Based in Minneapolis, U.S. Bancorp Asset Management, Inc., is a subsidiary
of U.S. Bank National Association. It provides investment management services
to individuals and institutions -- including corporations, foundations,
pension funds, public funds and retirement plans -- which had combined assets
under management of $121 billion as of March 31, 2002. The firm has offices
in Minneapolis, Milwaukee, Madison, Cincinnati, St. Louis, Portland, Seattle
U.S. Bancorp Asset Management, Inc., a subsidiary of U.S. Bank National
U.S. Bank), serves as the investment advisor to the First
American Funds. U.S. Bank is a separate entity and wholly owned subsidiary of
U.S. Bancorp (NYSE: USB), the eighth-largest financial services holding
company in the United States and a leading provider of comprehensive banking,
trust, investment and payment systems products and services. U.S. Bancorp is
the parent company of U.S. Bank.
For a prospectus containing more complete information on First American
Funds, including investment policies, fees and expenses, please contact your
investment professional, call First American Funds investor services at
1-800-677-FUND, or visit the web at http://www.firstamericanfunds.com .
Please read the prospectus carefully before you invest or send money.
Mutual fund investing involves risk; principal loss is possible. Past
performance is no guarantee of future results. The principal value and
investment return of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
First American Funds are distributed by Quasar Distributors, LLC, an
Investment products, including shares of mutual funds, are not obligations
of, or guaranteed by, any bank, including U.S. Bank or any U.S. Bancorp
affiliate, nor are they insured by the Federal Deposit Insurance Corporation,
the Federal Reserve Board or any other agency. An investment in such products
involves investment risk, including possible loss of principal.
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SOURCE U.S. Bancorp Asset Management, Inc. and First American Funds
/CONTACT: Cheryl Stone, Public Relations Manager of U.S. Bancorp Asset
/Web site: http://www.firstamericanfunds.com /
CO: U.S. Bancorp Asset Management, Inc.; First American Funds; Quasar
IN: FIN MFD
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1716 05/17/2002 06:30 EDT http://www.prnewswire.com