MINNEAPOLIS, March 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
March 13 and unanimous approval of the Board of Directors on Dec. 4, 2002.
Following are the funds that are merging:
First American Fund Merger Summary
Fund to Merge Surviving Fund
Large Cap Growth Fund Large Cap Growth Opportunities Fund
Health Sciences Fund Large Cap Growth Opportunities Fund
Mid Cap Growth Fund Mid Cap Growth Opportunities Fund
Small Cap Growth Fund Small Cap Select Fund
Emerging Markets Fund International Fund
Bond IMMDEX(TM) Fund Core Bond Fund
High Yield Bond Fund High Income Bond Fund
The investment objective of each merging fund is identical or
substantially similar to that of the corresponding surviving fund. The
principal investment strategies and risk factors of each merging fund, with
the exception of Health Sciences Fund, are similar to those of the
corresponding surviving fund. Thus, the merger of the funds could potentially
eliminate shareholder confusion over products that may be considered
The fund mergers are intended to qualify as tax-free reorganizations, with
merger expenses borne by U.S. Bancorp Asset Management.
Goals of merging the funds include the potential for improved performance
and reduced operating expenses. "By better focusing our resources, we believe
we maximize our opportunity to produce superior investment performance,"
explained Mark Jordahl, chief investment officer of U.S. Bancorp Asset
Management, the funds' registered investment advisor.
Jordahl added that the increased asset sizes of the surviving funds may
allow them to engage in investment transactions on potentially more
The fund mergers are part of a larger initiative announced last November
by the firm. "The strategic changes announced last fall are driven by our
firm's continuing objectives to improve the performance of our fund complex
and enhance service to high-net-worth clients," explained Tom Schreier, chief
executive officer of U.S. Bancorp Asset Management. "The changes are in line
with our firm's performance-driven, independent-style culture and commitment
to provide superior, long-term performance and service to clients."
About First American Funds
The First American Funds family of mutual funds is the fifth-largest,
bank-affiliated mutual fund family in the United States. It is advised by U.S.
Bancorp Asset Management, the 37th-largest asset manager domiciled in the
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,
foundations, pension funds, public funds and retirement plans - that had
combined assets under management of $113 billion as of Dec. 31, 2002. The firm
has offices in 22 states.
U.S. Bancorp Asset Management, Inc., also 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, 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
(NYSE: USB) 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 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
affiliate of the 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.
SOURCE U.S. Bancorp Asset Management, Inc.