First American Prime Obligations Fund and First American Treasury Obligations
Fund Add Fitch AAA/V-1+ Rating to Triple-A Ratings by S&P and Moody's
MINNEAPOLIS, Sept. 11 /PRNewswire-FirstCall/ -- U.S. Bancorp Asset
Management, Inc., announced today that the First American Prime Obligations
Fund and First American Treasury Obligations Fund obtained an AAA/V-1+ rating
by Fitch Ratings, effective July 28. Money market funds rated in this category
carry the highest degree of credit quality and safety of principal. Both funds
obtained a triple-A rating by Standard and Poors (S&P) and Moody's.
"The Fitch rating further reflects these two funds' high credit quality,
conservative investment policies, and strong ability to provide shareholders
with constant per-share valuations," said James Palmer, co-portfolio manager
of the funds and managing director of money market funds at U.S. Bancorp Asset
As part of the rating, U.S. Bancorp Asset Management will submit weekly
portfolio valuation reports to Fitch for both funds. U.S. Bancorp Asset
Management is the registered investment advisor of First American Funds.
About the Funds
The objective of both the First American Prime Obligations Fund and First
American Treasury Obligations Fund is to seek maximum current income to the
extent consistent with the preservation of capital and maintenance of
The First American Prime Obligations Fund pursues its investment objective
by investing in high-quality, short-term obligations. It had more than
$16 billion in assets under management as of June 30, 2003, and is managed by
Joseph Ulrey, James Palmer, Jeffrey Plotnik, and Marta Wenker.
The Treasury Obligations Fund invests exclusively in short-term U.S.
Treasury obligations and repurchase agreements secured by U.S. Treasury
obligations. The fund had more than $12 billion in assets under management as
of June 30, 2003, and is managed by Joseph Ulrey, James Palmer, Jeffrey
Plotnik, and Marta Wenker.
Both funds seek to maintain a weighted average maturity (WAM) of all
assets on a dollar-weighted basis of 60 days or less. As of June 30, 2003, the
WAM was 48 days for the First American Prime Obligations Fund and 43 days for
the Treasury Obligations Fund.
About Fitch Ratings
Fitch assigns the 'V-1+' volatility rating to distinguish money market
funds that will maintain stable principal values from bond funds that
experience fluctuating net asset values but nevertheless carry 'AAA' credit
ratings and/or 'V-1' volatility ratings. Bond funds are rated on a scale from
'V-1' (least volatile, but still displaying NAV variability) to 'V-10' (most
About First American Funds
The First American Funds mutual fund family is the fifth-largest bank-
affiliated fund family in the United States, with more than $56 billion in
open-end funds as of June 30, 2003. The funds are advised by U.S. Bancorp
About U.S. Bancorp Asset Management
U.S. Bancorp Asset Management is a national investment firm that serves as
the registered investment advisor to First American Funds and provides
customized portfolio management to private clients, corporations, public
entities, nonprofit organizations, and other institutions. The firm is the
37th-largest asset manager* domiciled in the United Sates and one of the
nation's leading money managers to institutions and individuals, with more
than $123 billion in assets under management as of June 30, 2003. It is a
performance-driven, independent-style firm, backed by the sources and
stability of U.S. Bancorp (NYSE: USB), the eighth-largest financial services
holding company in the United States, with assets of $195 billion as of June
* Figures are as of December 31, 2002, and are subject to change.
For a prospectus containing more complete information on First American
Funds, including investment policies, risks, 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.
Fitch's money market ratings are an assessment of a fund's safety of
invested principal and ability to maintain a stable market value of its
shares. Ratings are based on an evaluation of several factors, including
credit quality, diversification, and maturity of assets in the portfolio, as
well as management strength and operational capabilities.
An AAA rating by Standard & Poor's is obtained after S&P evaluates a
number of factors, including credit quality, market price, exposure, and
management. Money market funds rated Aaa by Moody's are judged to be of an
investment quality similar to Aaa-rated fixed income obligations, that is,
they are judged to be of the best quality.
Mutual fund investing involves risk; principal loss is possible. An
investment in money market funds is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although these
funds seek to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in these funds.
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.
U.S. Bancorp Asset Management, Inc., serves as the investment advisor to
First American Funds. First American Funds are distributed by Quasar
Distributors, LLC, an affiliate of the investment advisor.
SOURCE U.S. Bancorp Asset Management, Inc.