MINNEAPOLIS, Nov. 6 /PRNewswire-FirstCall/ -- The First American Funds
family of mutual funds launched two new fixed-income funds October 25 when two
U.S. Bank common trust funds underwent a tax-free merger into two new First
American funds. The former U.S. Government Bond Fund became the new First
American Intermediate Government Bond Fund, and the former Tax-Exempt Bond
Fund became the new First American Short Tax Free Fund. The funds are managed
by U.S. Bancorp Asset Management, a subsidiary of U.S. Bank and the registered
investment advisor of First American Funds.
First American Intermediate Government Bond Fund. The new $530 million
Intermediate Government Bond Fund (Class A - FIGAX, Class Y - FYGYX) is
designed to provide investors with preservation of capital and current income
that is exempt from state income tax. The Fund is federally taxable and
invests primarily in securities issued or guaranteed by the U.S. government or
its agencies. Under normal market conditions, the Fund attempts to maintain
an effective duration between two-and-a-half and seven years and a weighted-
average effective maturity between three and 10 years.
The Intermediate Government Bond Fund will be compared to funds within the
Lipper Short-Intermediate U.S. Government Funds peer group. Its benchmark is
the Lehman Intermediate U.S. Treasury Index.
First American Short Tax Free Fund. With $322 million in assets under
management, the new Short Tax Free Fund (Class A - FSHAX, Class Y - FSHYX) is
designed to provide preservation of capital and current income that is exempt
from federal income tax. The Fund invests primarily in investment-grade
municipal securities. No more than 20 percent of the Fund may be invested in
securities that are subject to minimum tax. The Fund's benchmark is the
Lehman Three-Year Municipal Bond Index, and it will be compared with funds in
the Lipper Short Municipal Debt Funds peer group.
Both the Intermediate Government Bond Fund and Short Tax Free Fund may be
appropriate for investors who desire:
-- Monthly income;
-- Limited risk of share price fluctuation and principal loss;
-- Reduced risk and exposure to volatile equity markets; and
-- Diversification, liquidity and active professional management.
Based in Minneapolis, U.S. Bancorp Asset Management, Inc., is a subsidiary
of U.S. Bank National Association ("U.S. Bank"). It provides investment
management services to individuals and institutions -- including corporations,
nonprofit organizations, public entities and labor unions -- which had
combined assets under management of more than $111 billion as of Sept. 30,
2002. The firm has offices in Minneapolis, Milwaukee, Madison, Cincinnati,
St. Louis, Portland, Seattle, and Denver.
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
800-677-FUND, or visit us on the web at 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.
Income from tax-exempt funds may be subject to state and local taxes, and a
portion of income may be subject to the state and federal alternative minimum
tax for certain investors. Federal income tax rules will apply to any capital
U.S. Bancorp Asset Management, Inc., serves as the investment advisor to
the First American Funds. First American Funds are distributed by Quasar
Distributors, LLC, an affiliated investment advisor.
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.; First American Funds