Nuveen Large Cap Select Fund NCSR Certified annual shareholder report (management investment company)

OMB APPROVAL

OMB Number: 3235-0570

Expires: September 30, 2007

Estimated average burden

hours per response: 19.4

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05309

First American Investment Funds, Inc.

(Exact name of registrant as specified in charter)


800 Nicollet Mall, Minneapolis, MN (Address of principal executive offices)		55402 (Zip code)

Charles D. Gariboldi, Jr., 800 Nicollet Mall, Minneapolis, MN 55402
(Name and address of agent for service)

Registrant’s telephone number, including area code: 800-677-3863

Date of fiscal period end: October 31

Date of reporting period: October 31, 2006

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.

Item 1. Report to Shareholders

Table of Contents


Message to Shareholders			1
Report of Independent Registered Public Accounting Firm			11
Schedule of Investments			12
Statements of Assets and Liabilities			36
Statements of Operations			37
Statements of Changes in Net Assets			38
Financial Highlights			40
Notes to Financial Statements			46
Notice to Shareholders			55
Certification
906 Certification

Mutual fund investing involves risk; principal loss is possible.


	NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

Message to SHAREHOLDERS December 11, 2006


Dear Shareholders:

We invite you to take a few minutes to review the results of the fiscal year ended October 31, 2006.

This report includes comparative performance graphs and tables, portfolio commentaries, complete listings of portfolio holdings, and additional fund information. We hope you will find this helpful in monitoring your investment portfolio.

Also, through our website, firstamericanfunds.com, we provide quarterly performance fact sheets on all First American Funds, the economic outlook as viewed by our senior investment officers, and other information about fund investments and portfolio strategies.

Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.FUND.

We appreciate your investment with First American Funds and look forward to serving your financial needs in the future.

Sincerely,




Virginia L. Stringer Chairperson of the Board First American Investment Funds, Inc.		Thomas S. Schreier, Jr. President First American Investment Funds, Inc.

First American Funds Annual Report 2006 1

Equity Index fund

Investment Objective: to provide investment results that correspond to the performance of the Standard & Poor’s 500 Index* (“S&P 500 Index”)

How did the fund perform for the fiscal year ended October 31, 2006?

The First American Equity Index Fund (the “fund”), Class Y shares, returned 16.07% for the fiscal year October 31, 2006 (Class A shares returned 15.76% without taking the sales charge into account). By comparison, the fund’s benchmark, the S&P 500 Index, returned 16.34% for the same period.

General economic and market conditions

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (the “Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 earnings of S&P 500 companies advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006.

Fund overview

The fund is invested to replicate the S&P 500 Index as closely as possible with consideration given to turnover costs and fees. As a result, the fund performed very similarly to the index. The index includes 500 leading companies in the major industries of the U.S. economy and covers about 75% of the dollar value of all traded stocks in the U.S. market.

The best-performing sectors during the fiscal year were telecommunications, materials, and financials, having risen by 33%, 25%, and 20%, respectively. Even the weakest-performing sectors over the same period – technology and healthcare – posted gains, rising by 10% and 11%, respectively. Since August, market leadership has passed from the energy sector, which fell by 2.2% during the last fiscal quarter, to the technology sector, which rose by 17.4%.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


Exxon Mobil	3.5	%
General Electric	2.9
Bank of America	2.0
Citigroup	2.0
Microsoft	2.0
Procter & Gamble	1.7
Johnson & Johnson	1.6
Pfizer	1.6
American International Group	1.4
Altria Group	1.3

Sector Allocation as of October 31, 2006¹ (% of net assets)


Financials	21.8	%
Information Technology	15.5
Healthcare	12.3
Industrials	10.8
Consumer Discretionary	10.4
Energy	9.5
Consumer Staples	9.4
Telecommunication Services	3.4
Utilities	3.4
Materials	2.9
Short-Term Investments	0.8
Other Assets and Liabilities, Net²	(0.2	)

	100.0	%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

2 First American Funds Annual Report 2006

Equity Index fund continued

Annual Performance¹


	October 31, 2006												September 30, 2006*

							Since Inception												Since Inception

	1 year		5 years		10 years		2/01/1999			9/24/2001			1 year		5 years		10 years		2/01/1999			9/24/2001
Average annual return with sales charge (POP)
Class A		9.42%		5.48%		7.42%		—			—			4.22%		5.22%		7.36%		—			—

Class B		9.94%		5.57%		7.22%		—			—			4.43%		5.29%		7.16%		—			—

Class C		13.93%		5.88%		—		1.26	%		—			8.45%		5.61%		—		0.86	%		—
Average annual return without sales charge (NAV)
Class A		15.76%		6.68%		8.02%		—			—			10.29%		6.41%		7.97%		—			—

Class B		14.94%		5.89%		7.22%		—			—			9.43%		5.61%		7.16%		—			—

Class C		14.93%		5.88%		—		1.26	%		—			9.45%		5.61%		—		0.86	%		—

Class R		15.47%		6.55%		—		—			7.57	%		10.00%		6.28%		—		—			7.04	%

Class Y		16.07%		6.96%		8.29%		—			—			10.57%		6.68%		8.24%		—			—

S&P 500 Index²		16.34%		7.26%		8.64%		2.63	%		8.29	%		10.79%		6.97%		8.59%		2.23	%		7.74	%

Value of $10,000 Investment^{1, 3} as of October 31, 2006



Equity Index Fund, Class A (NAV)	$	22,213

Equity Index Fund, Class A (POP)	$	20,993

Equity Index Fund, Class Y	$	22,789

S&P 500 Index²	$	23,534


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 09/30/1996 to 10/31/2006) as compared to the S&P 500 Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.


*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.

Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Mutual fund investing involves risk; principal loss is possible. Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.


²	An unmanaged, market capitalization-weighted index based on the average weighted performance of 500 widely held common stocks.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

First American Funds Annual Report 2006 3

Equity Index fund continued

Expense Example

As a shareholder of the Equity Index Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	1,058.60	$	3.22

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.08	$	3.16

Class B Actual²	$	1,000.00	$	1,054.90	$	7.10

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.30	$	6.97

Class C Actual²	$	1,000.00	$	1,054.50	$	7.09

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.30	$	6.97

Class R Actual²	$	1,000.00	$	1,057.00	$	4.51

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.82	$	4.43

Class Y Actual²	$	1,000.00	$	1,059.60	$	1.92

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.34	$	1.89


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.62%, 1.37%, 1.37%, 0.87%, and 0.37% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).


²	Based on the actual returns for the six-month period ended October 31, 2006 of 5.86%, 5.49%, 5.45%, 5.70%, and 5.96% for Class A, Class B, Class C, Class R, and Class Y, respectively.

4 First American Funds Annual Report 2006

Mid Cap Index fund

Investment Objective: to provide investment results that correspond to the performance of the Standard & Poor’s MidCap 400 Index* (“S&P MidCap 400 Index”)

How did the fund perform for the fiscal year ended October 31, 2006?

The First American Mid Cap Index Fund (the “fund”), Class Y shares, returned 13.05% for the fiscal year ended October 31, 2006 (Class A shares returned 12.70% without taking the sales charge into account). By comparison, the fund’s benchmark, the S&P MidCap 400 Index, returned 13.43% for the same period.

General economic and market conditions

Fund overview

The fund is invested to replicate the S&P MidCap 400 Index as closely as possible with consideration given to turnover costs and fees. As a result, the fund performed very similarly to the index. The index includes stocks that reflect the risk and return characteristics of the broader mid-cap universe. Mid-cap stocks are now being recognized as an independent asset class and the capitalization range of this index covers about 10% of the U.S. equities market.

The best-performing sectors during the fiscal year were telecommunications and technology, having risen by 28% and 20%, respectively. Even the weakest-performing sectors over the same period – healthcare and consumer discretionary – posted gains, rising by 4% and 5%, respectively. Since August, market leadership has passed from the energy sector, which fell by 6.9% during the last fiscal quarter, to the telecommunications sector, which rose by 19.3%.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


First American Prime Obligations Fund, Class Z	2.7	%
Peabody Energy	1.0
Cognizant Technology Solutions	0.9
Expeditors International of Washington	0.9
Precision Castparts	0.8
Noble Energy	0.7
ENSCO International	0.7
C.H. Robinson Worldwide	0.6
Varian Medical Systems	0.6
Microchip Technology	0.6

Sector Allocation as of October 31, 2006¹ (% of net assets)


Financials	18.0	%
Industrials	15.5
Information Technology	14.9
Consumer Discretionary	13.7
Healthcare	10.3
Utilities	8.2
Energy	7.2
Materials	6.1
Consumer Staples	2.1
Telecommunication Services	0.5
Short-Term Investments	3.0
Other Assets and Liabilities, Net²	0.5

	100.0	%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

First American Funds Annual Report 2006 5

Mid Cap Index fund continued

Annual Performance¹


	October 31, 2006													September 30, 2006*

					Since Inception													Since Inception

	1 year		5 years		11/04/99			11/27/2000			9/24/2001			1 year		5 years		11/04/99			11/27/2000			9/24/2001
Average annual return with sales charge (POP)
Class A		6.47%		10.95%		9.00	%		—			—			0.12%		10.98%		8.49	%		—			—

Class B		6.87%		11.15%		9.10	%		—			—			0.16%		11.18%		8.60	%		—			—

Class C		10.96%		11.38%		—			—			12.77	%		4.13%		11.39%		—			—			12.10	%
Average annual return without sales charge (NAV)
Class A		12.70%		12.21%		9.89	%		—			—			5.92%		12.25%		9.38	%		—			—

Class B		11.87%		11.41%		9.10	%		—			—			5.10%		11.44%		8.60	%		—			—

Class C		11.96%		11.38%		—			—			12.77	%		5.12%		11.39%		—			—			12.10	%

Class R		12.40%		12.07%		—			7.90	%		—			5.69%		12.10%		—			7.29	%		—

Class Y		13.05%		12.51%		10.16	%		—			—			6.18%		12.53%		9.65	%		—			—

S&P MidCap 400 Index²		13.43%		13.03%		11.00	%		8.98	%		14.47	%		6.56%		13.08%		10.49	%		8.36	%		13.81	%

Value of $10,000 Investment^{1, 3} as of October 31, 2006



Mid Cap Index Fund, Class A (NAV)	$	19,331

Mid Cap Index Fund, Class A (POP)	$	18,271

Mid Cap Index Fund, Class Y	$	19,674

S&P MidCap 400 Index²	$	20,749


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 11/04/1999 to 10/31/2006) as compared to the S&P MidCap 400 Index².


^*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.

¹	Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.


²	An unmanaged, market value-weighted index of 400 mid-cap companies.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

6 First American Funds Annual Report 2006

Mid Cap Index fund continued

Expense Example

As a shareholder of the Mid Cap Index Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	980.70	$	3.74

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.42	$	3.82

Class B Actual²	$	1,000.00	$	977.10	$	7.48

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.64	$	7.63

Class C Actual²	$	1,000.00	$	977.60	$	7.48

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.64	$	7.63

Class R Actual²	$	1,000.00	$	979.70	$	4.99

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.16	$	5.09

Class Y Actual²	$	1,000.00	$	982.00	$	2.50

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.68	$	2.55


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.50%, 1.50%, 1.00%, and 0.50% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of -1.93%, -2.29%, -2.24%, -2.03%, and -1.80% for Class A, Class B, Class C, Class R, and Class Y, respectively.

First American Funds Annual Report 2006 7

Small Cap Index fund

Investment Objective: to provide investment results that correspond to the performance of the Russell 2000 Index*

How did the fund perform for the fiscal year ended October 31, 2006?

The First American Small Cap Index Fund (the “fund”), Class Y shares, returned 19.32% for the fiscal year ended October 31, 2006 (Class A shares returned 19.02% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Index*, returned 19.98% for the same period.

General economic and market conditions

Fund overview

The fund is invested to replicate the Russell 2000 Index as closely as possible with consideration given to turnover costs and fees. The index includes the traded shares of U.S. companies ranked 1,001 through 3,000 in size, thereby skipping large- and mid-capitalization names in the list of investable companies.

The best-performing sectors during the fiscal year were materials and telecommunications, having risen by 43% and 33% respectively. Even the weakest-performing sector over the same period – healthcare – posted gains, rising by 13%. Since August, market leadership has passed from the energy sector, which fell by 2.4% during the last fiscal quarter, to the telecommunications sector, which rose by 17.2%.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


First American Prime Obligations Fund, Class Z			1.6%
Veritas DGC			0.2
Phillips Van-Heusen			0.2
Hologic			0.2
Big Lots			0.2
Polycom			0.2
Time Warner Telecom, Class A			0.2
Alexandria Real Estate Equities – REIT			0.2
Sotheby’s Holdings, Class A			0.2
Digital River			0.2

Sector Allocation as of October 31, 2006¹ (% of net assets)


Financials	21.9	%
Information Technology	18.1
Consumer Discretionary	15.0
Industrials	14.1
Healthcare	12.0
Energy	5.0
Materials	4.8
Utilities	2.9
Consumer Staples	2.8
Telecommunication Services	1.5
Short-Term Investments	1.8
Other Assets and Liabilities, Net²	0.1

	100.0	%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

8 First American Funds Annual Report 2006

Small Cap Index fund continued

Annual Performance¹


	October 31, 2006													September 30, 2006*

					Since Inception													Since Inception

	1 year		5 years		12/30/1998			12/11/2000			9/24/2001			1 year		5 years		12/30/1998			12/11/2000			9/24/2001
Average annual return with sales charge (POP)
Class A		12.49%		11.05%		8.84	%		—			—			3.08%		11.16%		8.16	%		—			—

Class B		13.07%		11.15%		—			8.19	%		—			3.31%		11.25%		—			7.30	%		—

Class C		17.15%		11.48%		—			—			13.01	%		7.26%		11.58%		—			—			12.01	%
Average annual return without sales charge (NAV)
Class A		19.02%		12.32%		9.63	%		—			—			9.09%		12.42%		8.95	%		—			—

Class B		18.07%		11.41%		—			8.31	%		—			8.31%		11.51%		—			7.43	%		—

Class C		18.15%		11.48%		—			—			13.01	%		8.26%		11.58%		—			—			12.01	%

Class R		18.75%		12.08%		9.43	%		—			—			8.80%		12.20%		8.76	%		—			—

Class Y		19.32%		12.55%		9.83	%		—			—			9.36%		12.63%		9.15	%		—			—

Russell 2000 Index²		19.98%		13.76%		9.63	%		9.38	%		15.38	%		9.92%		13.78%		8.95	%		8.48	%		14.38	%

Value of $10,000 Investment ^{1, 3} as of October 31, 2006



Small Cap Index Fund, Class A (NAV)	$	20,552

Small Cap Index Fund, Class A (POP)	$	19,425

Small Cap Index Fund, Class Y	$	20,846

Russell 2000 Index²	$	20,559


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 12/30/1998 to 10/31/2006) as compared to the Russell 2000 Index².


^*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.

¹	Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future.

On September 24, 2001, the Small Cap Index Fund became the successor by merger to the Firstar Small Cap Index Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar Small Cap Index Fund. The Firstar Small Cap Index Fund was organized on December 11, 2000, and, prior to that, was a separate series of Mercantile Mutual Funds, Inc.


²	An unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

First American Funds Annual Report 2006 9

Small Cap Index fund continued

Expense Example

As a shareholder of the Small Cap Index Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	1,004.80	$	4.19

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.02	$	4.23

Class B Actual²	$	1,000.00	$	1,000.90	$	7.97

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.24	$	8.03

Class C Actual²	$	1,000.00	$	1,001.10	$	7.97

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.24	$	8.03

Class R Actual²	$	1,000.00	$	1,003.80	$	5.45

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.76	$	5.50

Class Y Actual²	$	1,000.00	$	1,006.10	$	2.93

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.28	$	2.96


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.83%, 1.58%, 1.58%, 1.08%, and 0.58% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of 0.48%, 0.09%, 0.11%, 0.38%, and 0.61% for Class A, Class B, Class C, Class R, and Class Y, respectively.

10 First American Funds Annual Report 2006

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

First American Investment Funds, Inc.

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Equity Index, Mid Cap Index, and Small Cap Index funds (series of First American Investment Funds, Inc.) (the “funds”) as of October 31, 2006, and the related statements of operations, statements of changes in net assets and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designating audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of October 31, 2006 and confirmation of the securities held by correspondence with brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights as referred to above present fairly, in all material respects, the financial position of the funds listed above of First American Investment Funds, Inc. at October 31, 2006, the results of their operations, the changes in their net assets, and their financial highlights for the periods indicated therein in conformity with U.S. generally accepted accounting principles.

Minneapolis, Minnesota

December 19, 2006

First American Funds Annual Report 2006 11

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Equity Index Fund
DESCRIPTION	SHARES		VALUE

Common Stocks – 99.4%
Consumer Discretionary – 10.4%
Amazon.com (a) (b)		54,922	$	2,092
Apollo Group, Class A (a) (b)		25,814		954
Autonation (a) (b)		29,603		594
Autozone (a) (b)		9,784		1,096
Bed Bath & Beyond (a) (b)		52,777		2,126
Best Buy (a)		77,865		4,302
Big Lots (a) (b)		20,291		428
Black & Decker (a)		13,904		1,166
Brunswick (a)		16,568		522
Carnival (a)		76,722		3,746
CBS, Class B (a)		137,348		3,975
Centex		22,679		1,186
Circuit City Stores		36,058		973
Clear Channel Communications		84,101		2,931
Coach (a) (b)		67,173		2,663
Comcast, Class A (a) (b)		387,446		15,757
D.R. Horton (a)		48,214		1,130
Darden Restaurants (a)		24,131		1,011
Dillard’s, Class A (a)		10,905		329
Dollar General		53,311		748
Dow Jones & Company		10,446		367
Eastman Kodak		50,541		1,233
Family Dollar Stores (a)		27,499		810
Federated Department Stores (a)		95,455		4,191
Ford Motor (a)		334,787		2,772
Fortune Brands		25,608		1,971
Gannett		42,499		2,513
Gap		101,752		2,139
General Motors (a)		102,540		3,581
Genuine Parts (a)		30,734		1,399
Goodyear Tire & Rubber (a) (b)		31,590		484
Harley-Davidson (a)		48,666		3,340
Harman International Industries (a)		11,134		1,140
Harrah’s Entertainment		27,598		2,051
Hasbro		28,122		729
Hilton Hotels (a)		66,236		1,916
Home Depot (a)		372,536		13,907
International Game Technology (a)		59,662		2,536
Interpublic Group of Companies (a) (b)		75,198		820
J.C. Penney (a)		42,160		3,172
Johnson Controls (a)		33,374		2,721
Jones Apparel Group		20,723		692
KB Home		13,879		624
Kohl’s (b)		55,126		3,892
Leggett & Platt		32,600		761
Lennar		24,855		1,180
Limited (a)		61,691		1,818
Liz Claiborne (a)		18,904		797
Lowe’s (a)		274,537		8,275
Marriott International, Class A (a)		58,337		2,437
Mattel		71,647		1,621
McDonald’s		224,128		9,395
McGraw-Hill		67,776		4,349
New York Times, Class A (a)		25,693		621
Newell Rubbermaid (a)		48,389		1,393
News (a)		433,706		9,043
Nike, Class B (a)		33,673		3,094
Nordstrom (a)		39,949		1,892
Office Depot (a) (b)		56,017		2,352
Officemax		12,522		596
Omnicom Group (a)		31,981		3,244
Pulte Homes (a)		38,208		1,184
RadioShack (a)		23,842		425
Sears (a) (b)		16,424		2,865
Sherwin-Williams (a)		21,613		1,280
Snap-On		10,387		488
Stanley Works (a)		14,433		688
Staples (a)		129,560		3,341
Starbucks (a) (b)		136,125		5,139
Starwood Hotels & Resorts Worldwide		37,803		2,258
Target (a)		155,776		9,219
Tiffany & Company (a)		26,158		934
Time Warner (a)		787,760		15,763
TJX		77,732		2,250
Tribune (a)		53,652		1,788
Univision Communications, Class A (a) (b)		45,361		1,590
V.F.		15,609		1,186
Viacom, Class B (b)		136,006		5,293
Walt Disney (a)		355,771		11,193
Wendy’s International		20,021		693
Whirlpool (a)		13,924		1,210
Wyndham Worldwide (b)		36,337		1,072
Yum! Brands		48,480		2,883

				232,339

Consumer Staples – 9.4%
Alberto-Culver, Class B		13,374		679
Altria Group		369,122		30,021
Anheuser-Busch		137,503		6,520
Archer-Daniels-Midland (a)		116,664		4,492
Avon Products (a)		84,113		2,558
Brown-Forman, Class B		10,064		726
Campbell Soup		32,974		1,233
Clorox		26,688		1,723
Coca-Cola Enterprises (a)		41,053		822
Coca-Cola		370,821		17,325
Colgate-Palmolive		91,775		5,871
ConAgra Foods (a)		93,818		2,453
Constellation Brands, Class A (b)		32,764		901
Costco Wholesale		83,610		4,463
CVS		141,161		4,430
Dean Foods (b)		5,816		244
Estee Lauder, Class A (a)		9,746		394
General Mills (a)		58,391		3,318
H.J. Heinz		59,268		2,499
Hershey Foods (a)		32,098		1,698
Kellogg (a)		45,564		2,292
Kimberly-Clark (a)		82,802		5,508
Kroger (a)		128,233		2,884
McCormick		23,721		887
Molson Coors Brewing (a)		11,180		796
Pepsi Bottling		24,437		773
PepsiCo		297,435		18,869
Procter & Gamble		588,054		37,277
Reynolds American (a)		30,670		1,937
Safeway (a)		79,477		2,333
Sara Lee		134,514		2,300
SUPERVALU (a)		35,835		1,197
Sysco (a)		116,923		4,090
Tyson Foods, Class A (a)		44,787		647
UST (a)		28,978		1,552
Walgreen		179,241		7,829
Wal-Mart Stores		442,395		21,801
Whole Foods Market (a)		23,013		1,469
Wrigley, William Jr. (a)		36,744		1,909

				208,720

The accompanying notes are an integral part of the financial statements.

12 First American Funds Annual Report 2006


Equity Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Energy – 9.5%
Anadarko Petroleum (a)		85,273	$	3,958
Apache (a)		59,257		3,871
Baker Hughes		60,541		4,180
BJ Services (a)		53,297		1,607
Chesapeake Energy (a)		65,317		2,119
ChevronTexaco (a)		395,883		26,603
ConocoPhillips		295,165		17,781
Consol Energy		31,678		1,121
Devon Energy (a)		81,733		5,463
El Paso (a)		116,068		1,590
EOG Resources (a)		43,302		2,881
Exxon Mobil		1,082,174		77,289
Halliburton (a)		182,521		5,905
Hess (a)		43,031		1,825
Kinder Morgan		15,162		1,594
Marathon Oil		62,889		5,434
Murphy Oil		27,820		1,312
Nabors Industries (a) (b)		52,419		1,619
National-Oilwell Varco (a) (b)		31,039		1,875
Noble		24,532		1,720
Occidental Petroleum		145,648		6,837
Rowan (a)		19,649		656
Schlumberger (a)		208,631		13,160
Smith International (a)		34,370		1,357
Sunoco		24,137		1,596
Transocean (a) (b)		58,815		4,266
Valero Energy		109,198		5,714
Weatherford International (b)		60,866		2,500
Williams		106,027		2,590
XTO Energy (a)		65,196		3,042

				211,465

Financials – 21.8%
ACE		52,453		3,003
AFLAC		88,638		3,982
Allstate (a)		124,774		7,656
Ambac Financial Group		19,276		1,609
American Express		219,187		12,671
American International Group		463,664		31,144
Ameriprise Financial		41,625		2,144
AmSouth Bancorp		61,755		1,866
AON		57,403		1,997
Apartment Investment & Management – REIT (a)		17,500		1,003
Archstone-Smith Trust – REIT (a)		35,680		2,148
Bank of America		839,970		45,249
Bank of New York (a)		136,400		4,688
BB&T (a)		96,035		4,179
Bear Stearns (a)		19,101		2,891
Boston Properties – REIT (a)		19,864		2,122
Capital One Financial		51,938		4,120
CB Richard Ellis Group (b)		11,032		331
Charles Schwab		180,279		3,285
Chicago Mercantile Exchange (a)		6,219		3,116
Chubb		65,525		3,483
Cincinnati Financial		27,919		1,275
CIT Group		35,750		1,861
Citigroup		901,446		45,217
Comerica		29,292		1,705
Commerce Bancorp (a)		32,834		1,147
Compass Bancshares		16,432		924
Countrywide Financial		106,376		4,055
E*TRADE Financial (b)		76,433		1,779
Equity Office Properties Trust – REIT (a)		74,397		3,162
Equity Residential Properties Trust – REIT (a)		51,087		2,790
Fannie Mae		171,419		10,158
Federated Investors, Class B		15,000		514
Fifth Third Bancorp (a)		98,257		3,916
First Horizon National		22,217		874
Franklin Resources		26,394		3,008
Freddie Mac		122,034		8,419
Genworth Financial, Class A (a)		59,465		1,989
Goldman Sachs Group (a)		77,559		14,720
Hartford Financial Services Group (a)		51,527		4,492
Huntington Bancshares		37,746		921
J.P. Morgan Chase (a)		626,992		29,745
Janus Capital Group (a)		42,774		859
KeyCorp		72,248		2,683
Kimco Realty – REIT (a)		38,414		1,707
Legg Mason (a)		22,315		2,009
Lehman Brothers Holdings (a)		95,694		7,449
Lincoln National (a)		53,334		3,377
Loew’s		72,057		2,804
M&T Bank (a)		14,136		1,722
Marsh & McLennan (a)		93,679		2,758
Marshall & Ilsley (a)		36,966		1,772
MBIA (a)		23,870		1,480
Mellon Financial		76,322		2,961
Merrill Lynch		162,736		14,226
Metlife		135,187		7,723
MGIC Investment		17,723		1,041
Moody’s (a)		43,988		2,916
Morgan Stanley		191,816		14,661
National City (a)		97,667		3,638
North Fork Bancorp		83,915		2,398
Northern Trust (a)		32,856		1,929
Plum Creek Timber – REIT		32,843		1,180
PNC Financial Services		49,147		3,442
Principal Financial Group (a)		57,950		3,274
Progressive		142,099		3,435
Prologis – REIT (a)		37,273		2,358
Prudential Financial (a)		91,424		7,033
Public Storage – REIT (a)		16,198		1,453
Realogy (a) (b)		39,544		1,019
Regions Financial		81,119		3,079
SAFECO		22,167		1,290
Simon Property Group – REIT (a)		35,752		3,472
SLM		73,936		3,599
Sovereign Bancorp		66,829		1,595
St. Paul Travelers Companies		121,437		6,209
State Street		63,395		4,072
SunTrust Banks		60,781		4,801
Synovus Financial (a)		52,858		1,553
T. Rowe Price Group (a)		44,500		2,105
Torchmark		18,400		1,135
U.S. Bancorp (a) (c)		321,909		10,893
UnumProvident		61,091		1,208
Vornado Realty Trust – REIT		21,613		2,577
Wachovia (a)		322,022		17,872
Washington Mutual		174,842		7,396
Wells Fargo		592,220		21,492
XL Capital Limited, Class A (a)		29,071		2,051
Zions Bancorporation		15,573		1,252

				486,316

Healthcare – 12.3%
Abbott Laboratories		277,154		13,168
Aetna		103,608		4,271
Allergan (a)		22,848		2,639
AmerisourceBergen (a)		37,452		1,768
Amgen (a) (b)		217,631		16,520
Applied Biosystems Group – Applera		35,032		1,307
Barr Pharmaceuticals (b)		14,896		780
Bausch & Lomb (a)		9,756		522
Baxter International		109,980		5,056

First American Funds Annual Report 2006 13

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Equity Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Becton, Dickinson & Company (a)		44,792	$	3,137
Biogen IDEC (a) (b)		60,077		2,860
Biomet (a)		44,127		1,670
Boston Scientific (a) (b)		216,600		3,446
Bristol-Myers Squibb		344,369		8,523
C.R. Bard (a)		18,480		1,515
Cardinal Health		76,828		5,028
Caremark Rx (a)		79,792		3,928
Celgene (b)		12,772		683
CIGNA		22,477		2,629
Coventry Health Care (b)		29,313		1,376
Eli Lilly		180,324		10,100
Express Scripts (b)		25,964		1,654
Fisher Scientific International (b)		21,926		1,877
Forest Laboratories, Class A (a) (b)		59,929		2,933
Genzyme (a) (b)		44,044		2,973
Gilead Sciences (a) (b)		77,809		5,361
HCA (a)		74,190		3,748
Health Management Associates, Class A (a)		42,190		831
Hospira (b)		29,188		1,061
Humana (a) (b)		29,352		1,761
IMS Health		41,417		1,153
Johnson & Johnson		527,571		35,558
King Pharmaceuticals (a) (b)		43,863		734
Laboratory Corporation of America (a) (b)		23,738		1,626
Manor Care		14,083		676
McKesson HBOC		53,881		2,699
Medco Health Solutions (a) (b)		54,446		2,913
Medimmune (a) (b)		44,122		1,414
Medtronic (a)		213,882		10,412
Merck (a)		388,811		17,660
Millipore (a) (b)		8,806		568
Mylan Laboratories (a)		38,705		793
Patterson Companies (a) (b)		24,631		809
PerkinElmer		23,733		507
Pfizer		1,312,442		34,977
Quest Diagnostics (a)		29,529		1,469
Schering-Plough		260,962		5,778
St. Jude Medical (a) (b)		65,149		2,238
Stryker (a)		51,914		2,715
Tenet Healthcare (a) (b)		83,901		592
Thermo Electron (a) (b)		28,805		1,235
UnitedHealth Group		232,872		11,359
Watson Pharmaceuticals (a) (b)		19,471		524
Wellpoint (a) (b)		111,874		8,538
Wyeth Pharmaceuticals		236,615		12,074
Zimmer Holdings (a) (b)		44,016		3,170

				275,316

Industrials – 10.8%
3M		140,103		11,046
Allied Waste Industries (b)		38,098		463
American Power Conversion (a)		30,754		930
American Standard (a)		31,703		1,404
Avery Dennison		18,965		1,197
Boeing		146,244		11,679
Burlington Northern Santa Fe (a)		66,172		5,130
Caterpillar		121,133		7,354
Cintas (a)		24,476		1,013
Cooper Industries		16,520		1,478
CSX (a)		78,556		2,802
Cummins (a)		7,285		925
Danaher (a)		42,021		3,016
Deere & Company (a)		42,762		3,640
Dover		30,148		1,432
Eaton		26,202		1,898
Emerson Electric		73,538		6,207
Equifax		23,126		879
FedEx (a)		52,915		6,061
Fluor (a)		14,289		1,121
General Dynamics (a)		69,396		4,934
General Electric		1,867,893		65,582
Goodrich		21,156		933
H&R Block (a)		64,216		1,404
Honeywell International (a)		152,226		6,412
Illinois Tool Works		72,513		3,476
Ingersoll-Rand, Class A		58,611		2,152
ITT Industries		32,593		1,773
L-3 Communications Holdings		18,107		1,458
Lockheed Martin		63,132		5,488
Masco (a)		75,204		2,079
Monster Worldwide (a) (b)		22,884		927
Navistar International (a) (b)		10,998		305
Norfolk Southern		73,225		3,849
Northrop Grumman		62,988		4,182
Paccar		44,995		2,664
Pall		21,889		698
Parker Hannifin		20,800		1,739
Pitney Bowes (a)		32,076		1,498
R.R. Donnelley & Sons		38,494		1,303
Raytheon		78,677		3,930
Robert Half International		30,466		1,114
Rockwell Automation (a)		30,324		1,880
Rockwell Collins		31,450		1,827
Ryder System (a)		11,182		589
Southwest Airlines (a)		129,560		1,947
Textron		23,580		2,144
Tyco International		356,414		10,489
Union Pacific		45,174		4,094
United Parcel Service, Class B (a)		191,424		14,424
United Technologies (a)		181,416		11,923
W.W. Grainger		15,118		1,100
Waste Management		97,176		3,642

				241,634

Information Technology – 15.5%
ADC Telecommunications (b)		20,899		299
Adobe Systems (a) (b)		106,732		4,082
Advanced Micro Devices (a) (b)		85,442		1,817
Affiliated Computer Services, Class A (a) (b)		23,431		1,253
Agilent Technologies (b)		75,909		2,702
Altera (a) (b)		64,220		1,184
Analog Devices		65,000		2,068
Apple Computer (a) (b)		149,889		12,153
Applied Materials		287,757		5,004
Autodesk (a) (b)		40,872		1,502
Automatic Data Processing		103,447		5,114
Avaya (a) (b)		81,979		1,050
BMC Software (a) (b)		38,338		1,162
Broadcom, Class A (a) (b)		80,671		2,442
CA		73,973		1,832
Ciena (b)		15,107		355
Cisco Systems (a) (b)		1,088,007		26,254
Citrix Systems (a) (b)		32,471		959
Computer Sciences (b)		30,381		1,606
Compuware (b)		70,632		568
Comverse Technology (b)		36,011		784
Convergys (b)		24,953		529
Corning (b)		277,659		5,673
Dell (a) (b)		417,129		10,149
eBay (a) (b)		203,303		6,532
Electronic Arts (a) (b)		53,192		2,813

The accompanying notes are an integral part of the financial statements.

14 First American Funds Annual Report 2006


Equity Index Fund (continued)
DESCRIPTION		SHARES		VALUE

Electronic Data Systems			86,562	$	2,193
EMC (b)			423,576		5,189
First Data			139,956		3,394
Fiserv (a) (b)			32,887		1,625
Freescale Semiconductor, Class B (a) (b)			70,667		2,779
Google, Class A (a) (b)			37,284		17,762
Hewlett-Packard (a)			510,340		19,771
IBM			279,915		25,845
Intel			1,046,306		22,328
Intuit (a) (b)			62,703		2,213
Jabil Circuit (a)			32,352		929
JDS Uniphase (a) (b)			37,682		547
Juniper Networks (a) (b)			100,854		1,737
KLA-Tencor (a)			34,281		1,686
Lexmark International Group, Class A (a) (b)			20,732		1,318
Linear Technology			53,978		1,680
LSI Logic (a) (b)			68,546		689
Lucent Technologies (a) (b)			798,618		1,941
Maxim Integrated Products (a)			58,075		1,743
Micron Technology (a) (b)			107,026		1,546
Microsoft			1,527,871		43,865
Molex			25,574		892
Motorola (a)			436,072		10,056
National Semiconductor (a)			63,410		1,540
NCR (b)			32,528		1,351
Network Appliance (a) (b)			66,112		2,413
Novell (b)			67,805		407
Novellus Systems (a) (b)			23,653		654
NVIDIA (a) (b)			60,768		2,119
Oracle (a) (b)			712,720		13,164
Parametric Technology (a) (b)			19,271		377
Paychex			59,377		2,344
PMC-Sierra (a) (b)			36,808		244
QLogic (b)			28,647		590
QUALCOMM (a)			291,016		10,590
Sabre Holdings, Class A (a)			25,645		652
SanDisk (a) (b)			34,821		1,675
Sanmina – SCI (b)			94,987		375
Seagate Technology, Escrow Shares (b) (d)			44,886		—
Solectron (b)			163,013		544
Sun Microsystems (a) (b)			623,526		3,386
Symantec (a) (b)			193,324		3,835
Symbol Technologies (a)			44,987		672
Tektronix			14,911		453
Tellabs (b)			81,244		856
Teradyne (a) (b)			34,430		483
Texas Instruments			288,408		8,704
Unisys (b)			58,690		384
VeriSign (a) (b)			40,899		846
Waters (b)			19,660		979
Western Union (b)			139,956		3,086
Xerox (b)			170,056		2,891
Xilinx			61,409		1,566
Yahoo! (a) (b)			220,984		5,821

					344,615

Materials – 2.9%
Air Products and Chemicals			40,195		2,800
Alcoa			154,694		4,472
Allegheny Technologies (a)			17,224		1,356
Ashland			12,668		749
Ball			12,519		521
Bemis			18,768		631
Dow Chemical			173,674		7,084
E.I. Du Pont de Nemours (a)			163,687		7,497
Eastman Chemical (a)			13,318		811
Ecolab (a)			32,668		1,481
Freeport McMoran Copper & Gold, Class B			32,538		1,968
Hercules (b)			19,511		355
International Flavors & Fragrances			12,608		536
International Paper (a)			80,407		2,681
Louisiana Pacific			19,377		383
MeadWestvaco			32,333		890
Monsanto			96,554		4,270
Newmont Mining			79,942		3,619
NuCor (a)			58,123		3,395
Pactiv (b)			26,536		818
Phelps Dodge			35,956		3,609
PPG Industries			29,957		2,049
Praxair (a)			58,378		3,517
Rohm & Haas			25,643		1,329
Sealed Air (a)			14,543		866
Sigma-Aldrich (a)			11,912		895
Temple-Inland (a)			20,740		818
United States Steel (a)			20,624		1,394
Vulcan Materials (a)			18,051		1,471
Weyerhaeuser			42,425		2,698

					64,963

Telecommunication Services – 3.4%
ALLTEL (a)			64,031		3,413
AT&T (a)			691,769		23,693
BellSouth			324,074		14,616
CenturyTel (a)			23,336		939
Citizens Communications (a)			56,707		831
Embarq			26,154		1,265
Qwest Communications International (a) (b)			282,928		2,442
Sprint (a)			523,094		9,777
Verizon Communications (a)			501,447		18,553
Windstream (a)			78,205		1,073

					76,602
Utilities – 3.4%
AES (b)			118,343		2,602
Allegheny Energy (b)			28,878		1,243
Ameren (a)			33,780		1,828
American Electric Power			69,774		2,891
Centerpoint Energy (a)			53,932		835
CMS Energy (a) (b)			39,554		589
Consolidated Edison (a)			40,254		1,946
Constellation Energy (a)			29,956		1,869
Dominion Resources (a)			61,431		4,975
DTE Energy (a)			29,462		1,338
Duke Energy			213,849		6,766
Dynegy (b)			67,674		411
Edison International			57,496		2,555
Entergy			40,718		3,495
Exelon (a)			120,967		7,498
FirstEnergy			58,211		3,426
FPL Group (a)	��		70,082		3,574
KeySpan			31,608		1,283
NICOR (a)			8,006		368
NiSource			46,130		1,073
People’s Energy (a)			6,883		301
PG&E (a)			68,251		2,944
Pinnacle West Capital			15,933		762
PPL			64,370		2,222
Progress Energy – Contingent Value Obligation (b)			7,906		2
Progress Energy (a)			43,363		1,995
Public Service Enterprises			42,188		2,576
Sempra Energy (a)			46,148		2,448
Southern			131,317		4,780
TECO Energy			35,126		579

First American Funds Annual Report 2006 15

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Equity Index Fund (concluded)
DESCRIPTION		PAR/SHARES		VALUE

TXU			91,047	$	5,748
Xcel Energy (a)			72,636		1,603

					76,525

Total Common Stocks
	(Cost $1,396,905)				2,218,495

Short-Term Investments – 0.8%
Money Market Fund – 0.7%
First American Prime Obligations Fund, Class Z (c) (e)			14,837,605		14,838

U.S. Treasury Obligation – 0.1%
U.S. Treasury Bill 4.940%, 03/01/2007 (f)		$	3,000		2,951

Total Short-Term Investments
	(Cost $17,789)				17,789

Investments Purchased with Proceeds from Securities Lending (g) – 16.0%
	(Cost $357,390)				357,390

Total Investments – 116.2%
	(Cost $1,772,084)				2,593,674

Other Assets and Liabilities, Net – (16.2)%					(361,373	)

Total Net Assets – 100.0%				$	2,232,301


(a)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $345,441 at October 31, 2006. See note 2 in Notes to Financial Statements.

(b)	Non-income producing security.

(c)	Investment in affiliated security. As of October 31, 2006, the market value of these investments was $25,731 or 1.2% of total net assets. See notes 3 and 4 in Notes to Financial Statements.

(d)	Security is fair valued and illiquid. As of October 31, 2006, the market value of this investment was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements.

(e)	This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.


(f)	Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of October 31, 2006. See note 2 in Notes to Financial Statements.


(g)	The fund may loan securities in return for collateral in the form of cash, U.S. government securities, or other high grade debt obligations. The cash collateral is invested in money market funds and various short term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

REIT – Real Estate Investment Trust

Schedule of Open Futures Contracts

Number of

Notional

Contracts

Contract

Settlement

Unrealized

Description

Purchased

Value

Month

Appreciation

S&P 500 Index Futures

13,832

December 2006

592


Mid Cap Index Fund
DESCRIPTION	SHARES		VALUE

Common Stocks – 96.5%
Consumer Discretionary – 13.7%
99 Cents Only Stores (a)		16,427	$	197
Abercrombie & Fitch, Class A (b)		27,474		2,106
Advanced Auto Parts		32,789		1,148
Aeropostale (a) (b)		17,278		506
American Eagle Outfitters (b)		41,825		1,916
American Greetings, Class A (b)		18,149		434
AnnTaylor Stores (a) (b)		23,109		1,017
Applebee’s International (b)		24,247		553
ArvinMeritor (b)		22,354		336
Bandag (b)		3,726		164
Barnes & Noble		16,736		691
Beazer Homes USA (b)		13,426		582
Belo, Class A (b)		27,396		480
BLYTH		8,577		205
Bob Evans Farms		11,552		392
Borders Group (b)		19,352		398
BorgWarner (b)		17,898		1,029
Boyd Gaming		13,199		521
Brinker International		25,802		1,198
Callaway Golf (b)		20,900		281
CarMax (a) (b)		33,278		1,474
Catalina Marketing, Class C		11,410		289
CBRL Group		9,935		436
Charming Shoppes (a)		33,352		494
Cheesecake Factory (a) (b)		24,966		705
Chico’s FAS (a) (b)		54,768		1,311
Claire’s Stores (b)		29,696		842
Coldwater Creek (a) (b)		19,058		581
Corinthian Colleges (a)		27,258		334
DeVry (a)		18,614		453
Dollar Tree Stores (a) (b)		31,810		989
Entercom Communications (b)		8,682		240
Foot Locker		48,531		1,125
Furniture Brands International (b)		15,502		288
Gamestop, Class A (a) (b)		23,066		1,178
Gentex		45,800		729
Hanesbrands (a)		29,363		693
Harte-Hanks		15,522		392
Hovnanian Enterprises, Class A (a) (b)		11,385		351
International Speedway, Class A		11,184		581
Laureate Education (a) (b)		15,821		834
Lear (b)		21,350		645
Lee Enterprises (b)		14,461		413
M.D.C. Holdings (b)		9,471		472
Media General, Class A		7,646		284
Modine Manufacturing		10,641		253
Mohawk Industries (a) (b)		16,804		1,222
O’Reilly Automotive (a) (b)		34,892		1,127
OSI Restaurant Partners (b)		20,706		689
Pacific Sunwear of California (a)		21,626		381
Payless ShoeSource (a)		20,499		548
PETsMART (b)		44,632		1,285
Pier 1 Imports (b)		27,296		179
Polo Ralph Lauren		19,328		1,372
Reader’s Digest Association, Class A		31,325		450
Regis		14,391		540
Rent-A-Center (a)		22,038		634
Ross Stores		44,015		1,295
Ruby Tuesday (b)		19,226		534
Ryland Group (b)		13,621		626
Saks		44,156		854
Scholastic (a)		7,982		251
Scientific Games, Class A (a) (b)		20,511		575

The accompanying notes are an integral part of the financial statements.

16 First American Funds Annual Report 2006


Mid Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Strayer Education		3,123	$	353
Thor Industries (b)		11,056		485
Timberland, Class A (a) (b)		16,225		468
Toll Brothers (a) (b)		37,613		1,087
Tupperware (b)		16,985		361
Urban Outfitters (a) (b)		35,051		613
Valassis Communications (a) (b)		15,129		227
Washington Post, Class B (b)		1,736		1,307
Westwood One		20,267		160
Williams-Sonoma (b)		35,394		1,204

				49,367

Consumer Staples – 2.1%
BJ’s Wholesale Club (a) (b)		20,244		580
Church & Dwight (b)		19,946		809
Energizer Holdings (a) (b)		18,290		1,429
Hansen Natural (a) (b)		18,848		598
Hormel Foods	��	22,697		820
JM Smucker		18,275		896
Lancaster Colony		7,345		298
PepsiAmericas		18,883		386
Ruddick (b)		10,693		302
Smithfield Foods (a)		30,027		807
Tootsie Roll Industries		8,236		262
Universal		7,392		272

				7,459

Energy – 7.2%
Arch Coal (b)		45,030		1,559
Cameron International (a) (b)		34,809		1,744
Denbury Resources (a) (b)		37,681		1,083
ENSCO International (b)		47,867		2,344
FMC Technologies (a) (b)		21,889		1,323
Forest Oil (a)		17,374		567
Grant Prideco (a) (b)		40,718		1,538
Hanover Compressor (a) (b)		32,182		596
Helmerich & Payne		32,813		786
Newfield Exploration (a)		40,448		1,650
Noble Energy (b)		55,085		2,679
Overseas Shipholding Group		9,250		579
Patterson-UTI Energy (b)		51,798		1,202
Pioneer Natural Resources (b)		38,904		1,585
Plains Exploration & Production (a)		24,190		1,023
Pogo Producing (b)		18,102		810
Pride International (a) (b)		50,275		1,388
Quicksilver Resources (a) (b)		17,221		590
Southwestern Energy (a) (b)		53,235		1,894
Tidewater (b)		18,201		905

				25,845

Financials – 18.0%
A.G. Edwards (b)		23,816		1,359
AMB Property – REIT		27,650		1,615
American Financial Group		14,468		692
AmeriCredit (a) (b)		39,197		1,002
AmerUs Group, Class A (b)		13,359		915
Arthur J. Gallagher (b)		27,108		755
Associated Banc-Corp		41,240		1,354
Astoria Financial		28,079		815
Bank of Hawaii (b)		16,313		851
Brown & Brown		35,350		1,034
Cathay General Bancorp		13,144		453
City National (b)		13,213		880
Colonial BancGroup		47,713		1,138
Cullen/Frost Bankers		14,981		811
Developers Diversified Realty – REIT (b)		34,611		2,108
Eaton Vance		39,629		1,230
Everest Re Group		19,479		1,932
Fidelity National Financial		55,170		1,230
Fidelity National Title Group		63,204		1,391
First American (b)		29,389		1,200
First Niagara Financial Group (b)		26,987		387
FirstMerit (b)		26,423		614
GATX (b)		16,236		707
Greater Bay Bancorp (b)		17,060		439
Hanover Insurance Group		15,893		721
HCC Insurance Holdings		35,565		1,197
Highwoods Properties – REIT (b)		17,659		675
Horace Mann Educators (b)		13,965		281
Hospitality Properties Trust – REIT (b)		22,867		1,108
IndyMac Bancorp (b)		20,577		935
Investors Financial Services (b)		20,660		812
Jefferies Group (b)		31,496		905
Leucadia National		50,600		1,334
Liberty Property Trust – REIT (b)		28,058		1,352
Macerich – REIT (b)		22,087		1,775
Mack-Cali Realty – REIT (b)		18,608		984
Mercantile Bankshares		39,148		1,765
Mercury General (b)		11,148		577
MoneyGram International		27,081		927
New Plan Excel Realty Trust – REIT (b)		33,133		954
New York Community Bancorp (b)		80,996		1,324
Ohio Casualty (b)		19,163		526
Old Republic International		71,752		1,617
PMI Group (b)		26,981		1,151
Potlatch – REIT		12,076		490
Protective Life		21,809		965
Radian Group (b)		25,944		1,383
Raymond James Financial		28,009		892
Rayonier – REIT (b)		24,538		1,006
Regency Centers – REIT		20,913		1,509
SEI Investments		19,663		1,107
StanCorp Financial Group		16,959		775
SVB Financial (a) (b)		12,108		557
TCF Financial		34,660		902
Texas Regional Bancshares, Class A (b)		13,766		535
United Dominion Realty Trust – REIT (b)		41,995		1,359
Unitrin		12,749		547
W.R. Berkley		53,475		1,971
Waddell & Reed Financial, Class A (b)		26,432		674
Washington Federal (b)		28,532		663
Webster Financial		17,696		855
Weingarten Realty Investors – REIT (b)		25,553		1,188
Westamerica Bancorporation (b)		10,209		509
Wilmington Trust		21,331		887

				64,606

Healthcare – 10.3%
Advanced Medical Optics (a) (b)		18,334		749
Affymetrix (a) (b)		21,103		538
Apria Healthcare Group (a)		13,671		318
Beckman Coulter (b)		19,347		1,114
Cephalon (a) (b)		19,224		1,349
Charles River Laboratories International (a) (b)		21,308		915
Community Health Systems (a)		28,913		938
Covance (a) (b)		20,451		1,196
Cytyc (a) (b)		35,098		927
DENTSPLY International		47,983		1,501
Edwards Lifesciences (a) (b)		18,217		782
Gen-Probe (a)		16,158		774
Health Net (a)		36,173		1,502
Henry Schein (a) (b)		27,504		1,367
Hillenbrand Industries		19,141		1,123
Intuitive Surgical (a) (b)		11,572		1,148
Invitrogen (a) (b)		16,661		967

First American Funds Annual Report 2006 17

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Mid Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Lifepoint Hospitals (a) (b)		18,151	$	644
Lincare Holdings (a)		29,218		981
Martek Biosciences (a) (b)		10,082		239
Medicis Pharmaceutical, Class A (b)		14,748		517
Millennium Pharmaceuticals (a) (b)		98,700		1,155
Mine Safety Appliances (b)		8,360		316
Omnicare (b)		38,341		1,452
Par Pharmaceutical Companies (a)		10,889		212
PDL BioPharma (a) (b)		35,871		758
Perrigo (b)		24,243		434
Pharmaceutical Product Development		30,424		963
Psychiatric Solutions (a) (b)		16,572		550
Resmed (a) (b)		23,457		1,032
Sepracor (a) (b)		34,145		1,767
STERIS		20,223		493
Techne (a)		11,887		664
Triad Hospitals (a) (b)		27,383		1,014
Universal Health Services		17,910		948
Valeant Pharmaceuticals International (b)		29,452		550
Varian (a)		9,899		464
Varian Medical Systems (a) (b)		40,529		2,223
VCA Antech (a) (b)		25,717		833
Vertex Pharmaceuticals (a) (b)		36,384		1,477

				36,894

Industrials – 15.5%
Adesa (b)		28,475		716
AGCO (a) (b)		28,771		770
AirTran Holdings (a) (b)		28,382		283
Alaska Air Group (a) (b)		12,440		499
Alexander & Baldwin (b)		13,434		618
Alliant Techsystems (a) (b)		10,975		847
AMETEK (b)		22,316		1,042
Avis Budget Group		31,270		619
Banta		7,622		338
Brinks		14,173		744
C.H. Robinson Worldwide (b)		54,088		2,258
Career Education (a) (b)		29,539		658
Carlisle Companies		9,326		781
ChoicePoint (a) (b)		26,503		964
Con-way		14,959		706
Copart (a)		23,447		678
Corporate Executive Board (b)		12,561		1,128
Crane		15,857		617
Deluxe (b)		16,119		365
Donaldson (b)		21,698		815
DRS Technologies (b)		12,400		548
Dun & Bradstreet (a) (b)		19,594		1,513
Dycom Industries (a) (b)		13,114		306
Expeditors International of Washington		66,530		3,154
Fastenal (b)		39,383		1,585
Federal Signal		15,270		233
Flowserve (a)		17,570		931
Graco (b)		21,787		888
Granite Construction		10,725		559
Harsco		13,018		1,063
Herman Miller (b)		21,956		753
HNI (b)		15,625		703
Hubbell, Class B		18,704		926
ITT Educational Services (a)		10,299		710
J.B. Hunt Transport Services		33,095		716
Jacobs Engineering Group (a)		18,495		1,397
JetBlue Airways (a) (b)		54,404		683
Joy Global		37,018		1,448
Kelly Services, Class A (b)		6,397		184
Kennametal		12,255		756
Korn/Ferry International (a)		12,684		280
Lincoln Electric Holdings		13,518		831
Manpower		27,237		1,846
MSC Industrial Direct, Class A		17,040		697
Navigant Consulting (a) (b)		16,271		290
Nordson		10,585		487
Oshkosh Truck		22,969		1,038
Pentair (b)		32,171		1,060
Precision Castparts (b)		42,245		2,875
Quanta Services (a) (b)		39,587		724
Republic Services		35,761		1,467
Rollins		9,609		208
Roper Industries (b)		27,325		1,308
Sequa, Class A (a)		2,102		223
Sotheby’s Holdings, Class A (b)		15,318		582
SPX		18,045		1,038
Stericycle (a) (b)		13,754		973
Swift Transportation (a) (b)		17,162		432
Teleflex		12,743		793
Thomas & Betts (a)		16,840		868
Timken (b)		26,454		795
Trinity Industries (b)		25,098		905
United Rentals (a)		20,804		493
Werner Enterprises (b)		16,406		301
YRC Worldwide (a) (b)		18,462		715

				55,731

Information Technology – 14.9%
3Com (a) (b)		123,024		598
Activision (a) (b)		78,118		1,205
Acxiom		21,210		525
ADTRAN (b)		20,199		467
Advent Software (a)		6,320		234
Alliance Data Systems (a) (b)		20,740		1,259
Amphenol, Class A (b)		27,876		1,893
Andrew (a)		47,960		444
Arrow Electronics (a) (b)		38,008		1,135
Atmel (a)		133,625		768
Avnet (a) (b)		40,171		951
Avocent (a)		14,725		541
BISYS Group (a)		38,405		424
Cadence Design Systems (a) (b)		87,541		1,563
CDW (b)		18,717		1,229
Ceridian (a) (b)		43,356		1,022
CheckFree (a) (b)		27,747		1,095
Cognizant Technology Solutions (a)		43,934		3,307
CommScope (a) (b)		16,857		538
Cree (a) (b)		24,585		541
CSG Systems International (a)		15,455		417
Cypress Semiconductor (a) (b)		43,469		730
Diebold (b)		20,679		903
DST Systems (a) (b)		18,459		1,141
F5 Networks (a)		12,562		831
Fair Isaac (b)		19,613		718
Fairchild Semiconductor International, Class A (a)		38,186		615
Fidelity National Information Services (b)		20,300		844
Gartner, Class A (a) (b)		18,902		352
Harris		41,755		1,779
Imation (b)		10,131		464
Ingram Micro (a)		36,617		755
Integrated Device Technology (a)		62,266		987
International Rectifier (a) (b)		22,505		809
Intersil, Class A (b)		43,798		1,027
Jack Henry & Associates (b)		23,790		518
KEMET (a)		27,558		203

The accompanying notes are an integral part of the financial statements.

18 First American Funds Annual Report 2006


Mid Cap Index Fund (continued)
DESCRIPTION		SHARES		VALUE

Lam Research (a) (b)			43,232	$	2,138
Lattice Semiconductor (a)			35,662		221
Macrovision (a) (b)			16,574		441
McAfee (a) (b)			50,489		1,461
McDATA, Class A (a)			48,632		276
MEMC Electronic Materials (a) (b)			52,273		1,856
Mentor Graphics (a)			25,433		429
Micrel (a)			18,472		206
Microchip Technology			66,824		2,200
MPS Group (a)			32,676		498
National Instruments			17,609		549
Newport (a)			12,697		274
Palm (a) (b)			32,283		496
Plantronics (b)			15,066		318
Plexus (a)			13,845		303
Polycom (a) (b)			27,979		767
Powerwave Technologies (a) (b)			35,305		230
RF Micro Devices (a)			61,258		447
Semtech (a) (b)			23,162		302
Silicon Laboratories (a)			17,466		570
SRA International, Class A (a) (b)			11,742		376
Sybase (a) (b)			28,447		693
Synopsys (a) (b)			44,010		991
Tech Data (a)			17,950		706
Transaction Systems Architects (a)			11,555		390
TriQuint Semiconductor (a)			45,859		206
UTStarcom (a) (b)			34,055		367
Vishay Intertechnology (a) (b)			58,538		790
Western Digital (a)			68,570		1,253
Wind River Systems (a)			23,764		261
Zebra Technology, Class A (a) (b)			22,371		834

					53,681
Materials – 6.1%
Airgas			21,671		819
Albemarle			12,150		790
Bowater (b)			18,553		388
Cabot Microelectronics (b)			19,715		780
Chemtura (b)			77,210		663
Commercial Metals			38,031		1,012
Cytec Industries (b)			12,611		699
Ferro			13,326		263
Florida Rock Industries			14,130		606
FMC			12,228		838
Glatfelter (b)			11,270		165
Longview Fibre			21,669		456
Lubrizol			21,617		973
Lyondell Chemical (b)			65,151		1,672
Martin Marietta Materials			14,740		1,297
Minerals Technologies (b)			6,389		352
Olin			22,308		386
Packaging Corporation of America			19,934		458
Peabody Energy			83,606		3,509
Reliance Steel & Aluminum			20,046		689
RPM (b)			37,320		715
Scotts			14,190		702
Sensient Technologies			14,463		333
Sonoco Products			31,594		1,121
Steel Dynamics (b)			13,601		818
Valspar			32,196		863
Worthington Industries (b)			22,711		392

					21,759
Telecommunication Services – 0.5%
Cincinnati Bell (a)			78,719		369
Telephone & Data Systems			31,200		1,524

					1,893

Utilities – 8.2%
AGL Resources (b)			23,917		897
Alliant Energy (b)			38,510		1,477
Aqua America (b)			40,987		994
Aquila (a)			116,687		535
Black Hills (b)			10,649		367
DPL (b)			36,654		1,053
Duquesne Light Holdings			24,791		492
Energy East (b)			46,954		1,141
Equitable Resources			36,964		1,498
Great Plains Energy (b)			23,749		773
Hawaiian Electric Industries (b)			25,732		721
IDACORP (b)			13,451		530
MDU Resources Group (b)			57,154		1,468
National Fuel Gas (b)			25,056		937
Northeast Utilities			42,610		1,066
NSTAR (b)			33,952		1,181
OGE Energy (b)			27,157		1,048
ONEOK			34,280		1,427
Pepco Holdings (b)			62,091		1,578
PNM Resources (b)			21,862		616
Puget Energy (b)			33,191		793
Questar			26,733		2,178
SCANA			36,401		1,454
Sierra Pacific Resources (a) (b)			63,920		969
Vectren (b)			24,191		703
Westar Energy (b)			27,580		698
WGL Holdings (b)			15,283		496
Wisconsin Energy			37,196		1,709
WPS Resources			13,806		735

					29,534

Total Common Stocks (Cost $261,524)					346,769

Short-Term Investments – 3.0%
Money Market Fund – 2.7%
First American Prime Obligations Fund, Class Z (c)			9,718,572		9,719

U.S. Treasury Obligation – 0.3%
U.S. Treasury Bill 4.940%, 03/01/2007 (d)		$	1,000		984

Total Short-Term Investments (Cost $10,703)					10,703

Investments Purchased with Proceeds from Securities Lending (e) – 45.8%
	(Cost $164,599)				164,599

Total Investments – 145.3%
	(Cost $436,826)				522,071

Other Assets and Liabilities, Net – (45.3)%					(162,683	)

Total Net Assets – 100.0%				$	359,388


(a)	Non-income producing security.

(b)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $158,121 at October 31, 2006. See note 2 in Notes to Financial Statements.

(c)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(d)	Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of October 31, 2006. See note 2 in Notes to Financial Statements.

First American Funds Annual Report 2006 19

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)

Mid Cap Index Fund (concluded)


(e)	The fund may loan securities in return for collateral in the form of cash, U.S. government securities, or other high grade debt obligations. The cash collateral is invested in various money market funds and short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

REIT – Real Estate Investment Trust

Schedule of Open Futures Contracts

Number of

Notional

Contracts

Contract

Settlement

Unrealized

Description

Purchased

Value

Month

Appreciation

S&P Mid Cap 400 Futures

12,225

December 2006

322


Small Cap Index Fund
DESCRIPTION	SHARES		VALUE

Common Stocks – 98.1%
Consumer Discretionary – 15.0%
1-800 Flowers (a)		3,395	$	19
99 Cents Only Stores (a)		5,098		61
A.C. Moore Arts & Crafts (a) (b)		1,799		39
Aaron Rents (b)		4,601		114
ADVO		3,732		110
Aeropostale (a) (b)		6,333		186
AFC Enterprises (a)		2,812		46
Aftermarket Technology (a)		2,424		46
Ambassadors Group		2,116		58
Ambassadors International		797		31
American Axle & Manufacturing Holdings (b)		5,267		99
American Greetings, Class A		5,950		142
America’s Car-Mart (a) (b)		1,053		16
Ameristar Casinos (b)		2,944		72
Andersons (b)		1,588		57
Applebee’s International (b)		7,648		175
Arbitron		3,586		151
Arctic Cat		1,551		28
ArvinMeritor (b)		8,001		120
Asbury Automotive Group		1,478		35
Audible (a) (b)		2,984		22
Avatar Holdings (a) (b)		703		46
Aztar (a)		4,078		218
Bally Technologies (a) (b)		5,833		116
Bally Total Fitness Holding (a) (b)		4,106		12
Bandag (b)		1,329		58
Bebe Stores		2,635		65
Belo, Class A (b)		9,294		163
Big 5 Sporting Goods		2,431		58
Big Lots (a) (b)		12,961		273
BJs Restaurants (a)		1,633		35
Blockbuster, Class A (a) (b)		21,676		85
Blount International (a)		4,231		46
Blue Nile (a) (b)		1,483		57
Bluegreen (a) (b)		2,608		33
BLYTH		2,894		69
Bob Evans Farms		4,168		141
Bon-Ton Stores (b)		527		19
Books-A-Million		1,580		32
Borders Group (b)		7,115		146
Brookfield Homes (b)		1,628		53
Brown Shoe		3,127		122
Buckle		905		36
Buffalo Wild Wings (a)		870		45
Build-A-Bear Workshop (a) (b)		1,641		48
Building Materials Holding (b)		3,288		86
Cabelas (a) (b)		3,246		77
Cache (a)		1,442		31
California Coastal Communities		925		18
California Pizza Kitchen (a)		2,433		78
Callaway Golf (b)		8,707		117
Carmike Cinemas (b)		1,304		26
Carters (a) (b)		4,964		140
Casual Male Retail Group (a) (b)		3,219		48
Catalina Marketing, Class C		5,499		139
Cato, Class A (b)		3,597		82
Cavco Industries (a)		495		17
CBRL Group		3,104		136
CEC Entertainment (a)		4,191		144
Century Casinos (a)		2,265		23
Champion Enterprise (a)		9,041		84
Charlotte Russe Holding (a)		1,755		49
Charming Shoppes (a) (b)		13,674		202

The accompanying notes are an integral part of the financial statements.

20 First American Funds Annual Report 2006


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Charter Communications, Class A (a) (b)		46,198	$	106
Cherokee		1,064		43
Children’s Place Retail Stores (a)		2,400		168
Chipolte Mexican Grill (a)		2,243		131
Christopher & Banks		4,196		113
Churchill Downs		854		36
Citadel Broadcasting		4,612		47
Citi Trends (a) (b)		704		28
CKE Restaurants		7,045		138
CKX (a) (b)		5,695		78
Coinmach Service		2,774		28
Columbia Sportswear (a) (b)		1,182		66
Conns (a) (b)		870		21
Cooper Tire & Rubber (b)		7,547		81
Core Mark Holding (a)		882		28
Corinthian Colleges (a) (b)		10,079		123
Cosi (a)		3,831		17
Cost Plus (a) (b)		2,628		31
Courier		1,125		44
Cox Radio (a)		4,180		70
Crocs (a) (b)		1,105		44
Crown Media Holdings, Class A (a)		2,275		9
CSK Auto (a)		5,328		83
CSS Industries		767		24
Cumulus Media, Class A (a)		4,592		49
Deb Shops		229		6
Deckers Outdoor (a) (b)		1,215		65
Delias (a)		2,194		20
Denny’s (a)		10,835		46
DeVry (a)		6,647		162
Directed Electronics (a)		1,044		14
Dominos Pizza (b)		4,039		110
Dover Downs Gaming & Entertainment		1,399		20
Dover Motorsports		2,215		12
Dress Barn (a) (b)		5,036		109
Drew Industries (a) (b)		1,875		51
Drugstore.com (a)		8,458		31
DSW (a) (b)		1,570		54
DXP Enterprises (a)		193		6
Emmis Communications, Class A (a) (b)		3,649		45
Entercom Communications (b)		3,655		101
Entravision Communications (a)		7,339		54
Ethan Allen Interiors (b)		3,868		138
Finish Line, Class A		4,804		62
Fisher Communications (a)		610		26
Fleetwood Enterprises (a) (b)		6,848		49
Fossil (a)		5,174		113	��
Fred’s		4,696		61
FTD Group (a)		1,752		28
Fuel Systems Solutions (a) (b)		1,247		16
Furniture Brands International (b)		5,215		97
Gaiam (a)		1,806		26
Gaylord Entertainment (a)		4,545		212
Gemstar-TV Guide International (a)		28,103		98
Genesco (a) (b)		2,655		100
GenTek (a)		1,139		37
Gray Television		4,936		32
Great Wolf Resorts (a)		2,895		38
Group 1 Automotive (b)		2,769		159
GSI Commerce (a)		4,364		79
Guess ? (a) (b)		2,335		133
Guitar Center (a)		3,043		132
Gymboree (a)		3,709		172
Harris Interactive (a)		6,614		44
Hartmarx (a)		3,497		25
Haverty Furniture (b)		2,222		35
Hibbett Sporting Goods (a)		4,075		119
Home Solutions of America (a) (b)		4,196		25
Hooker Furniture		1,013		14
Hot Topic (a)		5,116		52
Hovnanian Enterprises, Class A (a) (b)		5,336		165
Iconix Brand Group (a) (b)		3,909		73
IHOP (b)		2,241		117
Insight Enterprises (a)		5,523		119
Interactive Data (a)		3,459		79
Interface, Class A (a)		5,212		76
INVESTools (a)		5,039		65
iRobot (a) (b)		998		20
Isle of Capri Casinos (a) (b)		1,613		40
J. Crew Group (a)		1,653		51
Jack in the Box (a)		3,937		221
JAKKS Pacific (a)		2,955		64
Jo-Ann Stores (a) (b)		2,875		52
JOS A Bank Clothiers (a)		1,923		57
Journal Communications		4,263		50
Journal Register		4,461		35
K2 (a)		5,681		78
Kellwood		2,947		90
Kenneth Cole Productions		1,288		33
Keystone Automotive Industries (a)		1,877		72
Kimball International		2,118		53
Krispy Kreme Doughnuts (a) (b)		6,308		68
K-Swiss, Class A		2,954		104
Lakes Entertainment (a)		2,032		23
Landry’s Restaurants		2,093		61
La-Z-Boy (b)		6,233		76
LeapFrog Enterprises (a) (b)		3,698		36
Lear (b)		7,469		226
Lee Enterprises (b)		5,100		145
Levitt, Class A (b)		2,037		26
Life Time Fitness (a) (b)		3,204		165
Lifetime Brands (b)		1,256		26
Lin TV, Class A (a)		3,058		25
Lithia Motors		1,760		45
Live Nation (a)		6,685		142
LKQ (a) (b)		4,985		115
LodgeNet Entertainment (a)		2,243		52
Lodgian (a)		2,790		40
Lone Star Steakhouse & Saloon (b)		1,628		44
Luby’s (a)		3,123		31
M/ I Homes		1,418		51
Maidenform Brands (a)		1,621		36
Marcus		2,382		60
Marine Products		1,550		17
MarineMax (a) (b)		1,570		45
Martha Stewart Living (b)		2,669		57
Marvel Entertainment (a) (b)		5,251		133
McCormick & Schmick’s Seafood Restaurant (a)		1,099		29
Media General, Class A		2,405		89
Mediacom Communications (a)		7,365		61
Men’s Wearhouse (b)		5,196		207
Meritage Homes (a)		2,461		113
Midas (a)		1,826		38
Modine Manufacturing		3,553		85
Monaco Coach		3,114		37
Monarch Casino & Resort (a)		1,202		27
Monro Muffler Brake		1,197		45
Morgans Hotel Group (a)		2,006		26
Morningstar (a) (b)		1,568		64
Mortons Restaurant Group (a)		469		8
Movado Group		2,092		54
MTR Gaming Group (a)		2,662		28
Multimedia Games (a) (b)		3,130		29

First American Funds Annual Report 2006 21

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

National Presto Industries		467	$	29
Nautilus Group (b)		3,973		56
Netflix (a) (b)		4,650		129
New York & Company (a)		2,384		31
Noble International		1,456		26
Oakley		2,995		56
O’Charleys (a)		2,628		52
Orleans Homebuilders		347		4
Outdoor Channel Holdings (a)		959		13
Overstock.com (a) (b)		1,297		24
Oxford Industries		1,640		87
P.F. Chang’s China Bistro (a) (b)		3,174		133
Pacific Sunwear of California (a)		8,296		146
Palm Harbor Homes (a) (b)		1,139		16
Pantry (a)		2,528		138
Papa John’s International (a) (b)		2,748		101
Payless ShoeSource (a)		7,664		205
Pep Boys – Manny, Moe & Jack		6,607		94
Perry Ellis International (a)		763		28
PetMed Express (a)		2,092		26
Phillips Van-Heusen (b)		6,095		279
Pier 1 Imports (b)		9,825		64
Pinnacle Entertainment (a)		5,148		156
Playboy Enterprises, Class B (a)		2,443		26
Polaris Industries (b)		4,364		187
Prestige Brand Holdings (a)		3,341		39
Priceline.com (a) (b)		2,872		116
PRIMEDIA (a)		22,136		37
Private Media Group (a) (b)		2,809		11
Progressive Gaming International (a) (b)		3,874		30
ProQuest (a)		2,990		38
Quantum Fuel Systems Technologies Worldwide (a) (b)		6,346		11
Quiksilver (a) (b)		12,899		180
Radio One (a)		8,870		60
RARE Hospitality International (a) (b)		4,047		127
Raser Technologies (a) (b)		2,263		15
RC2 (a) (b)		2,322		105
RCN (a)		2,734		79
Reader’s Digest Association, Class A (b)		11,366		163
Red Robin Gourmet Burgers (a) (b)		1,818		88
Regis		5,135		193
Rent-A-Center (a)		7,741		223
Restoration Hardware (a) (b)		4,042		38
Retail Ventures (a) (b)		2,001		34
Riviera Holdings (a)		1,055		21
Ruby Tuesday (b)		6,774		188
Russ Berrie and Company (a)		337		5
Ruth’s Chris Steak House (a)		1,945		38
Ryans Restaurant Group (a)		4,792		78
Salem Communications		1,463		19
Sauer-Danfoss		1,184		31
Scholastic (a)		3,630		114
Sealy		1,690		24
Select Comfort (a) (b)		6,403		137
Shiloh Industries (a)		538		8
Shoe Carnival (a)		938		27
Shuffle Master (a) (b)		4,179		117
Sinclair Broadcast Group, Class A (b)		4,958		45
Six Flags (a) (b)		9,098		52
Skechers USA (a)		1,525		46
Skyline		885		35
Smith & Wesson (a)		3,252		45
Sonic (a)		6,373		145
Sonic Automotive, Class A (b)		3,469		91
Source Interlink Companies (a) (b)		3,794		34
Spanish Broadcasting System (a)		4,912		23
Speedway Motorsports		1,809		68
Stage Stores		3,058		99
Stamps.com (a)		2,055		33
Stanley Furniture		1,561		34
Steak ’N Shake (a)		3,333		62
Stein Mart		2,927		48
Steinway Musical Instruments (a)		911		27
Steven Madden		2,652		114
Stride Rite		4,328		64
Sun-Times Media Group		8,351		48
Superior Industries International (b)		2,530		43
Systemax (a)		1,502		16
Talbots (b)		2,533		71
Tarragon Realty Investors		1,314		15
Technical Olympic USA (b)		1,728		19
Tempur-Pedic International (a) (b)		5,076		100
Tenneco Automotive (a) (b)		4,977		113
Texas Roadhouse, Class A (a) (b)		5,684		82
Timberland, Class A (a) (b)		5,226		151
TiVo (a)		8,547		55
Triarc, Class B		5,955		100
True Religion Apparel (a) (b)		1,469		32
Trump Entertainment Resorts (a)		2,683		55
Tuesday Morning		3,087		51
Tupperware (b)		6,059		129
Tween Brands (a) (b)		3,966		166
Under Armour (a) (b)		2,318		107
UniFirst		1,110		40
Universal Electronics (a)		1,679		36
Vail Resorts (a)		3,400		131
Valassis Communications (a)		5,702		86
ValueVision Media (a)		2,686		35
Visteon (a)		14,900		110
Volcom (a) (b)		1,462		48
Warnaco Group, Class A (a)		5,422		115
WCI Communities (a) (b)		3,708		60
West Marine (a)		1,556		26
Westwood One		6,958		55
Wet Seal, Class A (a)		6,757		42
Weyco Group		293		7
Winnebago Industries (b)		3,963		132
WMS Industries (a)		2,673		94
Wolverine World Wide (b)		6,198		176
World Wrestling Entertainment		2,272		38
Xerium Technologies		1,915		24
Yankee Candle		4,803		163
Zale (a)		5,782		167
Zumiez (a) (b)		1,607		53

				22,689

Consumer Staples – 2.8%
Alico		545		34
Alliance One International (a)		10,303		50
American Oriental Bioengineering (a) (b)		4,979		38
Arden Group, Class A		203		28
Boston Beer, Class A (a)		642		23
Casey’s General Stores		5,656		137
Central European Distribution (a)		3,260		83
Central Garden & Pet (a) (b)		2,402		120
Chattem (a)		2,102		89
Chiquita Brands International		4,977		68
Coca-Cola Bottling		529		33
Darling International (a)		7,634		33
Delta & Pine Land		4,265		173

The accompanying notes are an integral part of the financial statements.

22 First American Funds Annual Report 2006


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Diamond Foods		1,358	$	23
Elizabeth Arden (a)		2,990		52
Farmer Brothers		802		18
Flowers Foods		5,722		156
Gold Kist (a)		5,878		116
Great Atlantic & Pacific Tea (b)		2,085		58
Green Mountain Coffee Roasters (a)		610		24
Hain Celestial Group (a)		3,485		98
Imperial Sugar (b)		1,260		33
Ingles Markets, Class A		1,381		39
Inter Parfums		584		12
J&J Snack Foods		1,492		50
Jones Soda (a)		2,466		24
Lancaster Colony		2,201		89
Lance (b)		3,522		69
Longs Drug Stores		3,509		151
M & F Worldwide (a)		1,373		22
Mannatech (b)		1,887		30
Maui Land & Pineapple (a)		508		16
Medifast (a)		1,295		12
MGP Ingredients		1,064		24
Nash-Finch (b)		1,526		40
National Beverage		1,220		14
NBTY (a)		6,349		177
Nu Skin Enterprises, Class A		6,177		118
Parlux Fragrances (a) (b)		1,482		10
Pathmark Stores (a)		5,440		55
Peets Coffee & Tea (a) (b)		1,807		48
Performance Food Group (a)		3,894		113
Pilgrim’s Pride (b)		4,221		105
Playtex Products (a)		6,227		87
Premium Standard Farms		1,005		19
PriceSmart (a)		887		15
Ralcorp Holdings (a)		2,985		148
Reddy Ice Holdings		1,414		34
Revlon (a)		17,286		23
Ruddick (b)		3,852		109
Sanderson Farms (b)		1,939		51
Seaboard		43		61
Smart & Final (a)		1,500		27
Spartan Stores		2,429		50
Spectrum Brands (a) (b)		3,864		38
Tiens Biotech Group USA (a)		654		2
Tootsie Roll Industries		3,445		110
Topps		4,398		38
Treehouse Foods (a)		3,108		79
United Natural Foods (a) (b)		4,817		168
Universal (b)		2,852		105
Usana Health Sciences (a) (b)		1,211		54
Vector Group (b)		4,479		77
Village Super Market		183		13
WD-40 Company		1,849		63
Weis Markets		912		37
Wild Oats Markets (a) (b)		3,416		61

				4,174

Energy – 5.0%
Allis Chalmers Energy (a)		1,824		28
Alon USA Energy		1,056		30
Arena Resources (a) (b)		1,199		43
Atlas America (a)		2,140		103
ATP Oil & Gas (a) (b)		2,139		92
Atwood Oceanics (a) (b)		3,021		140
Aurora Oil & Gas (a) (b)		7,420		23
Aventine Renewable Energy (a) (b)		2,996		74
Basic Energy Services (a)		1,394		34
Berry Petroleum, Class A		4,050		121
Bill Barrett (a) (b)		3,174		91
Bois D’ Arc Energy (a)		1,585		25
Brigham Exploration (a)		5,071		40
Bristow Group (a)		2,785		92
Bronco Drilling (a)		1,515		26
Callon Petroleum (a)		2,265		35
Carbo Ceramics (b)		2,417		81
Carrizo Oil & Gas (a)		2,350		67
Clayton Williams Energy (a)		780		31
Complete Production Services (a) (b)		2,342		45
Comstock Resources (a) (b)		4,848		135
Crosstex Energy (b)		888		85
Dawson Geophysical (a)		839		25
Delek US Holdings (a)		597		11
Delta Petroleum (a) (b)		5,899		152
Dril-Quip (a)		2,468		97
Edge Petroleum (a)		1,966		36
Encore Acquisition (a)		5,375		135
Energy Partners (a)		4,274		104
Evergreen Energy (a) (b)		7,530		97
EXCO Resources (a) (b)		5,798		84
Exploration Company of Delaware (a)		3,252		36
Gasco Energy (a) (b)		8,950		24
GeoGlobal Resources (a) (b)		3,341		26
Giant Industries (a)		1,629		132
GMX Resources (a) (b)		896		35
Goodrich Petroleum (a) (b)		1,416		48
Grey Wolf (a) (b)		22,792		160
Gulf Island Fabrication		764		22
GulfMark Offshore (a)		1,773		61
Gulfport Energy (a)		1,434		17
Hanover Compressor (a) (b)		10,922		202
Harvest Natural Resources (a)		4,296		48
Hercules Offshore (a)		2,260		81
Hornbeck Offshore Services (a) (b)		2,411		87
Houston Exploration (a)		3,231		175
Hydril (a) (b)		2,268		136
Input/ Output (a) (b)		8,216		92
International Coal Group (a) (b)		11,829		61
James River Coal (a) (b)		1,570		18
Lone Star Technologies (a)		3,615		175
Lufkin Industries (b)		1,684		102
Mariner Energy (a)		8,147		161
Maritrans		1,135		42
MarkWest Hydrocarbon		869		29
Matrix Service (a) (b)		2,325		33
McMoRan Exploration (a) (b)		2,602		39
Meridian Resource (a)		9,190		31
Metretek Technologies (a)		1,750		23
Natco Group (a)		1,630		54
Newpark Resources (a)		10,014		59
NGP Capital Resources		2,512		39
NS Group (a) (b)		2,614		171
Oil States International (a)		5,204		151
Pacific Ethanol (a) (b)		2,826		47
Parallel Petroleum (a)		4,015		81
Parker Drilling (a)		11,337		93
Penn Virginia (b)		2,113		151
Petrocorp, Escrow Shares (a) (c)		2,040		—
Petrohawk Energy (a) (b)		15,941		181
Petroleum Development (a)		2,088		96
PetroQuest Energy (a)		4,807		55
PHI (a)		1,560		49
Pioneer Drilling (a) (b)		4,611		61
PrimeEnergy (a)		83		6
Quest Resource (a) (b)		2,180		23
RAM Energy Resources (a)		2,325		12
Rentech (a) (b)		15,407		65

First American Funds Annual Report 2006 23

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Resource America, Class A		1,902	$	44
Rosetta Resources (a) (b)		5,599		101
RPC		2,732		59
Stone Energy (a)		2,807		109
SulphCo (a) (b)		3,878		21
Superior Well Services (a)		1,186		29
Swift Energy (a) (b)		3,234		151
Syntroleum (a)		4,663		18
Toreador Resources (a) (b)		1,646		36
Transmeridian Exploration (a) (b)		7,729		27
Trico Marine Service (a) (b)		971		33
Union Drilling (a)		1,003		13
Universal Compression Holdings (a)		3,128		189
Vaalco Energy (a)		6,423		53
VeraSun Energy (a) (b)		1,464		27
Veritas DGC (a) (b)		4,182		301
Warren Resources (a) (b)		5,947		70
Warrior Energy (a)		1,078		31
Western Refining (b)		2,485		59
Westmoreland Coal (a)		749		17
W-H Energy Services (a)		3,417		160
Whiting Petroleum (a) (b)		3,860		172
World Fuel Services (b)		3,018		130

				7,522

Financials – 21.9%
1st Source		1,471		46
21st Century Insurance Group		3,301		52
Acadia Realty Trust – REIT		3,233		83
Accredited Home Lenders Holdings (a) (b)		2,364		72
Advance America Cash Advance Centers (b)		7,791		117
Advanta, Class B		2,269		89
Affirmative Insurance		1,014		17
Affordable Residential Communities – REIT (a)		3,493		38
Agree Realty – REIT		431		15
Alabama National BanCorporation (b)		1,604		109
Alexander’s – REIT (a)		311		113
Alexandria Real Estate Equities – REIT (b)		2,567		256
Alfa		3,711		69
AMCORE Financial		2,417		76
American Campus Communities – REIT		1,804		48
American Equity Investment Life Holding		6,166		79
American Financial Realty Trust – REIT (b)		13,347		156
American Home Mortgage Investment – REIT (b)		4,685		160
American Physicians Capital (a)		799		44
American West Bancorp		1,585		33
Ameris Bancorp		1,345		38
Anchor Bancorp		2,609		76
Anthracite Capital – REIT (b)		6,573		94
Anworth Mortgage Asset – REIT		6,040		55
Apollo Investment		8,091		174
Arbor Realty Trust – REIT		1,015		28
Ares Capital (b)		4,220		78
Argonaut Group (a) (b)		3,481		118
Arrow Financial		1,448		37
Ashford Hospitality Trust – REIT		6,352		82
Asta Funding (b)		1,235		42
Baldwin & Lyons, Class B		971		25
BancFirst		979		49
Bancorp Bank (a)		1,191		29
BancTrust Financial Group		1,320		32
Bank Mutual		7,089		86
Bank of Granite		2,230		42
Bank of the Ozarks (b)		1,648		52
BankAtlantic Bancorp, Class A (b)		4,998		65
BankFinancial		1,930		35
BankUnited Financial, Class A (b)		3,050		82
Banner		1,319		57
Berkshire Hills Bancorp		796		29
BFC Financial (a)		1,089		6
BioMed Realty Trust – REIT (b)		6,749		218
Boston Private Financial (b)		3,681		102
Bristol West Holdings		1,972		27
Brookline Bancorp (b)		7,365		98
Cadence Financial		357		7
Calamos Asset Management (b)		2,751		80
Camden National		950		42
Capital City Bank Group		1,556		52
Capital Corporation of the West		1,110		34
Capital Lease Funding – REIT		3,502		41
Capital Southwest (b)		326		39
Capital Trust – REIT		1,588		71
Capitol Bancorp		1,546		73
Cardinal Financial		2,717		28
Cascade Bancorp		2,008		73
Cash America International (b)		3,495		144
Cathay General Bancorp		5,191		179
Cedar Shopping Centers – REIT		2,848		48
Centennial Bank Holdings (a)		5,438		52
Center Financial		1,475		36
Centerstate Banks of Florida		385		8
Centracore Properties Trust – REIT		1,455		47
Central Pacific Financial (b)		3,629		134
Charter Financial		627		30
CharterMac (b)		5,808		118
Chemical Financial		3,012		90
Chittenden		5,296		156
Citizens Banking (b)		4,758		124
Citizens First Bancorp		611		18
City Bank		927		50
City Holdings		2,052		80
Clark		2,032		25
Clayton Holdings (a)		961		14
Clifton Savings Bancorp		2,145		25
CNA Surety (a)		1,782		36
Coastal Financial (b)		2,097		29
CoBiz		1,973		45
Cohen & Steers		1,428		50
Columbia Bancorp Oregon		646		16
Columbia Banking System		1,787		57
Commerce Group		5,503		163
Community Bancorp – Nevada (a)		288		8
Community Bank System		3,465		86
Community Banks		2,582		69
Community Trust Bancorp		1,774		68
Compass Diversified Trust		1,461		25
CompuCredit (a) (b)		2,385		83
Consolidated-Tomoka Land		750		49
Corporate Office Properties Trust – REIT (b)		4,030		193
Corus Bankshares (b)		4,418		91
Cousins Properties – REIT (b)		4,690		168
Crawford & Company		1,831		14
Credit Acceptance (a)		760		25
Crescent Real Estate Equities – REIT		7,858		171
Crystal River Capital – REIT		259		6
CVB Financial		7,026		102
Deerfield Triarc Capital – REIT		4,659		69
Delphi Financial Group, Class A		4,990		196
DiamondRock Hospitality – REIT		6,142		104
Digital Realty Trust – REIT		2,051		68

The accompanying notes are an integral part of the financial statements.

24 First American Funds Annual Report 2006


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Dime Community Bancshares		3,397	$	47
Direct General (b)		1,781		23
Dollar Financial (a)		1,072		25
Donegal Group, Class A		1,722		35
Doral Financial (b)		9,829		45
Downey Financial (b)		1,856		128
EastGroup Properties – REIT (b)		2,950		157
Education Realty Trust – REIT		2,861		44
EMC Insurance Group		952		29
Enstar Group (a)		402		37
Enterprise Financial Services		1,076		36
Entertainment Properties Trust – REIT		3,049		168
Equity Inns – REIT		6,442		108
Equity Lifestyle Properties – REIT (b)		2,646		130
Equity One – REIT (b)		4,365		110
eSpeed, Class A (a)		2,673		26
Extra Space Storage – REIT		5,960		110
Ezcorp (a)		1,318		60
F.N.B. (b)		6,638		112
F.N.B. – Virginia		832		31
Farmers Capital Bank		932		34
FBL Financial Group, Class A		1,033		37
Federal Agricultural Mortgage, Class C		1,274		34
FelCor Lodging Trust – REIT		5,978		124
Fidelity Bankshares		2,680		106
Fieldstone Investment – REIT		5,830		47
Financial Federal (b)		2,983		82
First Acceptance (a)		2,078		22
First Bancorp – North Carolina		1,364		31
First Bancorp of Puerto Rico (b)		7,812		77
First Busey		1,597		37
First Cash Financial Services (a)		2,987		65
First Charter		3,469		86
First Commonwealth Financial – Pennsylvania (b)		7,980		107
First Community Bancorp		2,133		114
First Community Bancshares – Nevada		1,332		49
First Financial – Indiana		1,541		53
First Financial Bancorp – Ohio (b)		3,660		59
First Financial Bankshares		2,197		88
First Financial Holdings		1,475		53
First Indiana		1,711		44
First Industrial Realty Trust – REIT (b)		5,131		236
First Merchants		2,214		55
First Midwest Bancorp (b)		5,189		197
First Niagara Financial Group (b)		12,782		183
First Place Financial		1,785		42
First Potomac Realty Trust – REIT (b)		2,276		70
First Regional Bancorp (a)		996		32
First Republic Bank – California (b)		2,585		101
First South Bancorp (b)		473		15
First State Bancorp – New Mexico		1,815		45
FirstBank, Fractional Shares (a) (c)		0.27		—
FirstFed Financial (a) (b)		1,940		120
FirstMerit (b)		8,035		187
Flag Financial		978		25
Flagstar Bancorp		4,287		64
Flushing Financial		2,596		46
FPIC Insurance Group (a)		1,217		44
Franklin Bank (a)		1,496		30
Franklin Street Properties – REIT (b)		5,780		119
Fremont General (b)		7,409		108
Friedman Billings Ramsey Group – REIT (b)		15,608		119
Frontier Financial (b)		4,402		128
GAMCO Investors		853		34
GB&T Bancshares		1,561		34
Getty Realty – REIT		2,319		74
GFI Group (a) (b)		1,330		77
Glacier Bancorp		3,564		124
Gladstone Capital (b)		1,450		34
Gladstone Investment		2,110		31
Glenborough Realty Trust – REIT		2,896		75
Glimcher Realty Trust – REIT (b)		4,821		124
GMH Communities Trust		4,334		61
Gramercy Capital – REIT		1,375		38
Great American Financial Resources		1,095		25
Great Southern Bancorp		1,247		39
Greater Bay Bancorp (b)		5,840		150
Greene County Bancshares		472		18
Greenhill & Company (b)		1,965		134
Hancock Holding (b)		3,153		162
Hanmi Financial		4,470		96
Harbor Florida Bancshares		2,751		125
Harleysville Group		1,697		61
Harleysville National		3,302		71
Harris & Harris Group (a) (b)		2,337		33
Healthcare Realty Trust – REIT (b)		4,834		196
Heartland Financial USA (b)		1,541		44
Heritage Commerce (b)		1,650		40
Hersha Hospitality Trust – REIT		2,815		31
Highland Hospitality – REIT (b)		6,582		91
Highwoods Properties – REIT (b)		6,358		243
Hilb, Rogal & Hobbs (b)		3,659		146
Home Properties – REIT (b)		3,596		227
HomeBanc – REIT		6,315		33
Horace Mann Educators (b)		5,120		103
Horizon Financial (b)		1,510		35
IBERIABANK		1,202		71
IMPAC Mortgage Holdings – REIT (b)		9,318		88
Independence Holdings		710		17
Independent Bank		1,930		65
Independent Bank – Michigan		2,734		65
Infinity Property & Casualty		2,472		106
Inland Real Estate – REIT		7,341		137
Innkeepers USA Trust – REIT (b)		5,692		98
Integra Bank		1,958		52
Interchange Financial Services		2,551		58
International Bancshares		4,416		135
International Securities Exchange (b)		4,242		218
Intervest Bancshares (a)		540		19
Investors Bancorp (a)		4,417		66
Investors Real Estate Trust – REIT (b)		6,597		66
Irwin Financial		2,350		52
ITLA Capital		690		39
James River Group (a)		1,018		31
JER Investment Trust		2,084		37
Kansas City Life Insurance		93		5
Kearny Financial		3,029		48
Kite Realty Group Trust – REIT		2,886		53
KKR Financial (b)		8,235		221
KNBT Bancorp		3,827		65
Knight Capital Group, Class A (a)		12,257		229
LaBranche (a) (b)		6,291		56
Lakeland Bancorp (b)		2,291		31
Lakeland Financial		1,800		47
LandAmerica Financial Group (b)		2,121		134
LaSalle Hotel Properties – REIT (b)		4,145		175
Lexington Corporate Properties Trust – REIT (b)		6,696		143
LTC Properties – REIT (b)		2,168		59
Luminent Mortgage Capital – REIT		5,100		54
Macatawa Bank		2,034		45
MAF Bancorp		3,559		153
Maguire Properties – REIT		4,400		188

First American Funds Annual Report 2006 25

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

MainSource Financial Group		1,483	$	27
MarketAxess Holdings (a)		3,182		36
Marlin Business Services (a)		917		21
MB Financial		3,658		132
MBT Financial		1,830		28
MCG Capital		5,215		93
Meadowbrook Insurance Group (a)		2,805		34
Medallion Financial		1,310		16
Medical Properties Trust – REIT		3,492		47
Mercantile Bank		936		37
MetroCorp Bancshares		268		6
MFA Mortgage Investments – REIT		9,838		78
Mid-America Apartment Communities – REIT (b)		2,275		145
Midland		1,226		57
Mid-State Bancshares		2,732		82
Midwest Banc Holdings (b)		1,639		39
Mills – REIT		6,309		115
MortgageIT Holdings – REIT		3,243		46
Move (a)		12,191		58
MVC Capital		1,907		25
Nara Bancorp		2,268		43
NASB Financial		473		19
National Financial Partners (b)		4,132		163
National Health Investors – REIT		2,802		90
National Interstate		1,767		50
National Penn Bancshares (b)		5,301		109
National Penn Bancshares, Fractional Shares (a) (c)		0.50		—
National Retail Properties – REIT (b)		6,445		145
National Western Life Insurance, Class A		266		64
Nationwide Health Properties – REIT (b)		7,610		219
Navigators Group (a)		1,292		61
NBT Bancorp		3,685		92
Net Bank		5,895		31
NewAlliance Bancshares (b)		13,248		205
Newcastle Investment – REIT		5,258		156
Newkirk Realty Trust – REIT		1,496		25
Northern Empire Bancshares (a)		1,168		34
NorthStar Realty Finance – REIT		4,693		71
Northwest Bancorp		2,427		65
NovaStar Financial – REIT (b)		3,520		112
NYMAGIC		479		15
OceanFirst Financial		1,391		33
Ocwen Financial (a)		3,925		61
Odyssey Re Holdings		870		31
Ohio Casualty (b)		7,149		196
Old National Bancorp		7,798		148
Old Second Bancorp		1,718		52
Omega Financial		1,585		51
OMEGA Healthcare Investors – REIT		6,249		105
optionsXpress Holdings (b)		2,549		79
Oriental Financial Group		2,537		30
Pacific Capital Bancorp		5,231		161
Park National (b)		1,389		141
Parkway Properties – REIT (b)		1,719		85
Partners Trust Financial Group		4,550		51
PennFed Financial Services		1,352		25
Pennsylvania – REIT		4,301		185
Penson Worldwide (a)		832		20
Peoples Bancorp – Ohio		1,309		38
PFF Bancorp		2,218		69
Phoenix Companies		11,806		187
Pinnacle Financial Partners (a)		1,259		42
Piper Jaffray Companies (a) (b)		2,345		162
Placer Sierra Bancshares		893		21
PMA Capital (a)		4,134		39
Post Properties – REIT (b)		4,746		232
Potlatch – REIT (b)		4,962		201
Premierwest Bancorp		1,899		32
Presidential Life		2,443		58
PrivateBancorp		1,890		78
ProAssurance (a) (b)		3,167		154
Prosperity Bancshares		2,499		87
Provident Bankshares (b)		3,889		141
Provident Financial Services (b)		7,837		144
Provident New York Bancorp		4,396		62
PS Business Parks – REIT		2,161		142
QC Holdings (a)		732		10
R&G Financial		3,322		26
RAIT Investment Trust – REIT		3,520		106
Ramco-Gershenson Properties Trust – REIT		2,216		73
Realty Income – REIT (b)		8,233		217
Redwood Trust – REIT (b)		2,536		139
Renasant		2,064		66
Republic Bancorp		9,207		123
Republic Bancorp – Kentucky, Class A		995		21
Republic Property Trust – REIT		2,890		36
Rewards Network (a)		2,955		17
RLI		2,754		149
Rockville Financial		1,250		18
S&T Bancorp		3,179		108
Safety Insurance Group		1,529		76
Sanders Morris Harris Group		1,866		22
Sandy Spring Bancorp		1,673		61
Santander Bancorp		669		13
Saul Centers – REIT		1,744		85
Saxon Capital		6,180		87
SCBT Financial		963		40
SCPIE Holdings (a)		1,121		31
SeaBright Insurance Holdings (a)		1,773		29
Seacoast Banking		1,784		47
Security Bank		1,420		34
Selective Insurance Group (b)		3,326		184
Senior Housing Properties Trust – REIT (b)		7,130		163
Shore Bancshares		484		14
Sierra Bancorp		493		15
Signature Bank (a)		2,821		86
Simmons First National, Class A		1,714		53
Sizeler Property Investors – REIT		2,565		39
Smithtown Bancorp		868		25
Southside Bancshares		1,211		31
Southwest Bancorp – Oklahoma		1,616		44
Sovran Self Storage – REIT		2,282		135
Spirit Finance – REIT (b)		8,651		103
State Auto Financial		1,731		56
State National Bancshares		801		31
Sterling Bancorp		2,199		43
Sterling Bancshares		5,405		99
Sterling Financial – Pennsylvania		3,053		70
Sterling Financial – Washington (b)		4,001		133
Stewart Information Services		2,040		76
Stifel Financial (a)		1,099		40
Strategic Hotels & Resorts – REIT (b)		7,513		160
Suffolk Bancorp		1,408		49
Summit Bancshares		784		21
Sun Bancorp – New Jersey (a)		1,640		34
Sun Communities – REIT (b)		2,248		79
Sunstone Hotel Investors – REIT (b)		5,961		176
Superior Bancorp (a)		1,844		20

The accompanying notes are an integral part of the financial statements.

26 First American Funds Annual Report 2006


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Susquehanna Bancshares		5,324	$	133
SVB Financial (a) (b)		4,019		185
SWS Group		1,899		53
SY Bancorp		1,442		42
Tanger Factory Outlet Centers – REIT		4,183		156
Taylor Capital Group		598		21
Technology Investment Capital		1,700		26
Tejon Ranch (a)		1,165		57
Texas Capital Bancshares (a) (b)		2,672		54
Texas Regional Bancshares, Class A		5,168		201
Texas United Bancshares		655		22
Thomas Weisel Partners Group (a) (b)		757		12
TierOne		2,393		77
Tompkins Trustco		949		47
Tower Group		2,213		78
Tradestation Group (a) (b)		2,862		45
Trammell Crow (a) (b)		3,983		194
Triad Guaranty (a)		1,014		52
TriCo Bancshares		1,732		45
TrustCo Bank Corporation of New York (b)		8,588		95
Trustmark		5,397		171
Trustreet Properties – REIT (b)		7,656		130
UCBH Holdings (b)		10,442		179
UMB Financial		2,590		93
Umpqua Holdings (b)		6,921		195
Union Bankshares		1,678		50
United Bankshares		4,271		163
United Community Banks		3,606		113
United Community Financial		3,451		44
United Fire & Casualty		1,942		69
United PanAm Financial (a)		853		11
United Security Bancshares (b)		827		21
Universal American Financial (a)		4,221		78
Universal Health Realty Income Trust – REIT		1,559		61
Univest Corporation of Pennsylvania		1,461		44
Urstadt Biddle Properties, Class A – REIT		2,900		55
USB Holding		1,428		32
USB Holding, Fractional Shares (a) (c)		0.10		—
USI Holdings (a)		5,352		85
U-Store-It Trust – REIT		4,587		101
Vineyard National Bancorp		1,085		24
Virginia Commerce Bancorp (a)		1,981		40
Virginia Financial Group		1,227		34
W Holding Company		12,837		73
Waddell & Reed Financial, Class A		9,009		230
Washington Real Estate Investment Trust – REIT (b)		5,023		212
Washington Trust Bancorp		1,602		43
WesBanco		2,592		85
West Bancorp (b)		2,097		38
West Coast Bancorp – Oregon		1,883		62
Westamerica Bancorporation		3,704		185
Western Alliance Bancorp (a)		1,008		34
Westfield Financial		491		16
Willow Grove Bancorp		933		15
Wilshire Bancorp		2,143		42
Windrose Medical Properties Trust – REIT		1,280		24
Winston Hotels – REIT		3,561		43
Winthrop Realty Trust – REIT		2,446		15
Wintrust Financial		2,752		133
World Acceptance (a)		2,271		114
WSFS Financial		677		44
Yardville National Bancorp		1,077		43
Zenith National Insurance (b)		4,118		192

				33,026

Healthcare – 12.0%
Abaxis (a)		2,362		47
ABIOMED (a)		2,315		33
ACADIA Pharmaceuticals (a)		2,699		26
Adams Respiratory Therapeutics (a)		3,214		139
Adeza Biomedical (a)		1,677		23
Adolor (a)		4,868		67
Advanced Magnetics (a) (b)		890		37
ADVENTRX Pharmaceuticals (a) (b)		6,063		20
Affymetrix (a) (b)		7,522		192
Air Methods (a)		1,157		28
Akorn (a)		4,964		22
Albany Molecular Research (a)		2,711		32
Alderwoods Group (a)		4,788		95
Alexion Pharmaceuticals (a) (b)		3,503		131
Align Technology (a) (b)		7,338		102
Alkermes (a) (b)		10,309		173
Alliance Imaging (a)		1,950		17
Allscripts Healthcare Solutions (a)		4,692		111
Alnylam Pharmaceuticals (a) (b)		3,566		70
Alpharma, Class A		4,523		100
Altus Pharmaceuticals (a)		612		10
AMEDISYS (a) (b)		1,982		80
American Medical Systems (a) (b)		7,882		140
AMERIGROUP (a)		5,517		165
AMN Healthcare Services (a)		3,622		92
Amsurg, Class A (a) (b)		3,477		73
Anadys Pharmaceuticals (a)		3,174		11
Analogic		1,565		87
Andrx Group (a)		8,353		205
AngioDynamics (a)		1,364		30
Applera (a)		7,885		122
Apria Healthcare Group (a)		4,885		114
Arena Pharmaceuticals (a) (b)		5,019		77
Ariad Pharmaceuticals (a)		6,990		30
Array Biopharma (a)		4,005		39
Arrow International		2,112		76
Arthrocare (a) (b)		2,857		115
Aspect Medical Systems (a)		1,867		33
AtheroGenics (a) (b)		4,501		59
Auxilium Pharmaceuticals (a)		2,417		30
AVANIR Pharmaceuticals (a) (b)		3,688		15
AVI BioPharma (a) (b)		5,601		22
Bentley Pharmaceuticals (a)		2,236		28
BioCryst Pharmaceuticals (a)		2,561		30
Bioenvision (a) (b)		4,622		24
BioMarin Pharmaceuticals (a)		9,517		153
Bio-Rad Laboratories, Class A (a)		2,007		147
Bio-Reference Labs (a)		1,278		30
Biosite (a) (b)		1,968		90
Bradley Pharmaceuticals (a) (b)		1,622		28
Bruker BioSciences (a)		3,749		30
Candela (a)		2,700		38
Capital Senior Living (a)		2,424		23
Caraco Pharmaceutical Laboratories (a)		1,406		16
Cell Genesys (a) (b)		5,182		23
Centene (a) (b)		4,773		113
Cepheid (a)		6,083		50
Cerus (a)		3,095		22
Chemed		3,020		107
CNS		1,753		65
Coley Pharmaceutical Group (a) (b)		1,998		23
CombinatoRx (a)		2,101		16
Computer Programs & Systems		897		31
Conceptus (a)		2,540		50
CONMED (a)		3,468		77
Connetics (a)		3,971		68

First American Funds Annual Report 2006 27

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Conor Medsystems (a)		3,017	$	74
Corvel (a)		695		30
Cotherix (a) (b)		2,158		16
Cross Country Healthcare (a)		3,468		67
Cubist Pharmaceuticals (a)		6,075		135
CV Therapeutics (a) (b)		6,132		79
Cyberonics (a) (b)		2,511		45
Cypress Bioscience (a)		3,620		29
Cytokinetics (a)		2,860		21
Datascope		1,397		50
deCODE Genetics (a)		6,753		36
Dendreon (a) (b)		7,387		37
Dendrite International (a)		4,866		51
DepoMed (a)		3,013		13
DexCom (a) (b)		1,876		17
Digene (a)		1,861		86
Diversa (a)		2,882		27
DJ Orthopedics (a) (b)		2,589		104
Durect (a) (b)		6,189		29
Eclipsys (a)		5,041		107
Emageon (a)		2,335		37
Emeritus (a)		551		13
Emisphere Technologies (a) (b)		2,655		18
Encore Medical (a)		6,626		43
Encysive Pharmaceuticals (a) (b)		7,193		34
Enzo Biochem (a) (b)		3,446		49
Enzon (a) (b)		5,238		45
eResearch Technology (a)		6,033		50
ev3 (a)		1,433		25
Exelixis (a)		9,474		92
Five Star Quality Care (a)		3,519		36
FoxHollow Technologies (a) (b)		2,080		73
Genesis HealthCare (a)		2,262		110
Genitope (a) (b)		2,806		10
Genomic Health (a)		1,387		23
Genta (a)		14,904		12
Gentiva Health Services (a)		2,859		53
Geron (a) (b)		7,328		59
Greatbatch (a) (b)		2,676		60
GTx (a)		792		9
Haemonetics (a)		2,955		135
Hana Biosciences (a) (b)		3,201		27
HealthExtras (a)		3,028		70
HealthSpring (a)		2,094		42
HealthTronics (a)		3,862		27
Healthways (a) (b)		3,956		168
Hi-Tech Pharmaceutical (a)		942		14
Hologic (a) (b)		5,714		275
Horizon Health (a) (b)		1,247		19
Human Genome Sciences (a) (b)		14,909		199
Hythiam (a) (b)		2,921		24
ICOS (a) (b)		7,287		231
ICU Medical (a) (b)		1,610		68
Idenix Pharmaceuticals (a) (b)		2,752		23
I-Flow (a) (b)		2,380		37
Illumina (a) (b)		5,104		224
Immucor (a)		7,778		214
Incyte (a) (b)		9,925		47
Indevus Pharmaceuticals (a)		5,309		36
Integra LifeSciences (a) (b)		2,207		82
InterMune (a) (b)		2,854		63
IntraLase (a)		2,390		47
Invacare		3,481		76
inVentiv Health (a)		3,028		87
Inverness Medical Innovations (a)		2,826		107
IRIS International (a)		2,049		25
Isis Pharmaceuticals (a)		7,747		66
Kendle International (a)		1,368		47
Kensey Nash (a)		1,158		35
Keryx Biopharmaceuticals (a)		4,807		67
Kindred Healthcare (a) (b)		3,154		85
K-V Pharmaceutical, Class A (a) (b)		4,098		91
Kyphon (a) (b)		4,930		195
LCA-Vision		2,304		81
Lexicon Genetics (a)		7,590		30
LHC Group (a)		1,023		25
LifeCell (a) (b)		3,836		90
Luminex (a) (b)		3,565		57
Magellan Health Services (a)		4,049		177
MannKind (a) (b)		2,654		54
Martek Biosciences (a) (b)		3,585		85
Matria Healthcare (a) (b)		2,329		66
Matthews International, Class A		3,647		140
Maxygen (a)		3,050		26
Medarex (a) (b)		13,623		176
MedCath (a)		923		24
Medical Action Industries (a)		1,024		27
Medicines (a)		5,639		146
Medicis Pharmaceutical, Class A		6,193		217
Mentor		4,309		202
Merge Technologies (a)		2,040		16
Meridian Bioscience		2,107		49
Merit Medical Systems (a)		3,179		50
Metabasis Therapeutics (a)		2,291		16
MGI Pharma (a)		8,775		167
Mine Safety Appliances		3,293		125
Molecular Devices (a)		1,931		39
Molina Healthcare (a) (b)		1,373		54
Momenta Pharmaceuticals (a)		2,411		36
Monogram Biosciences (a) (b)		14,463		26
MWI Veterinary Supply (a)		388		13
Myogen (a)		4,735		248
Myriad Genetics (a) (b)		4,081		110
NABI Biopharmaceuticals (a)		7,502		49
Nastech Pharmaceutical (a)		2,460		43
National Healthcare		807		45
Natus Medical (a)		2,075		34
Nektar Therapeutics (a) (b)		9,663		139
Neurocrine Biosciences (a)		4,182		48
NeuroMetrix (a) (b)		1,390		23
New River Pharmaceuticals (a) (b)		1,768		90
Nighthawk Radiology Holdings (a) (b)		701		14
Northfield Laboratories (a) (b)		2,803		38
Northstar Neuroscience (a)		1,202		18
Novavax (a) (b)		6,848		31
Noven Pharmaceuticals (a)		2,816		63
NPS Pharmaceuticals (a)		4,762		23
NuVasive (a)		3,692		87
Nuvelo (a)		5,695		105
NxStage Medical (a)		1,349		10
Odyssey Healthcare (a)		4,118		55
Omnicell (a)		3,029		57
Onyx Pharmaceuticals (a) (b)		4,569		86
Option Care (b)		2,588		33
OraSure Technologies (a)		5,101		40
OSI Pharmaceuticals (a) (b)		6,345		243
Owens & Minor		4,532		143
Pain Therapeutics (a) (b)		3,557		30
Palomar Medical Technologies (a) (b)		2,020		95
Panacos Pharmaceuticals (a)		5,614		39

The accompanying notes are an integral part of the financial statements.

28 First American Funds Annual Report 2006


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Par Pharmaceutical Companies (a)		3,903	$	76
PAREXEL International (a)		2,979		88
Penwest Pharmaceuticals (a)		2,696		48
Peregrine Pharmaceuticals (a) (b)		19,547		27
Perrigo (b)		9,279		166
Per-Se Technologies (a) (b)		3,603		88
PharmaNet Development Group (a) (b)		2,115		40
Pharmion (a) (b)		2,896		71
PolyMedica (b)		2,410		100
POZEN (a)		2,726		45
PRA International (a) (b)		1,568		46
Progenics Pharmaceutical (a)		2,484		65
PSS World Medical (a) (b)		7,377		148
Psychiatric Solutions (a)		6,003		199
Quidel (a)		3,351		52
Radiation Therapy Services (a) (b)		1,370		41
Regeneron Pharmaceutical (a)		5,080		102
RehabCare Group (a)		2,105		27
Renovis (a) (b)		2,630		9
Res-Care (a)		2,416		47
Rigel Pharmaceuticals (a)		2,453		27
Salix Pharmaceuticals (a)		5,188		69
Sangamo BioSciences (a)		2,917		16
Santarus (a) (b)		5,126		39
Savient Pharmaceuticals (a)		7,255		55
Sciele Pharma (a) (b)		3,153		69
Senomyx (a) (b)		3,324		51
Sirna Therapeutics (a) (b)		4,482		57
Sirona Dental Systems		1,864		69
Solexa (a)		2,624		27
Somaxon Pharmaceuticals (a)		407		6
SonoSite (a) (b)		1,814		52
Spectranetics (a)		3,410		42
Stereotaxis (a) (b)		2,611		31
STERIS		7,909		193
Stewart Enterprises, Class A		12,693		78
Sun Healthcare Group (a)		2,579		34
Sunrise Senior Living (a) (b)		4,605		144
SuperGen (a)		6,527		37
SurModics (a) (b)		1,724		60
Symbion (a) (b)		1,592		26
Symmetry Medical (a)		3,889		61
Tanox (a) (b)		2,921		39
Telik (a) (b)		6,211		118
Thoratec (a)		5,478		86
Trimeris (a)		2,401		18
TriPath Imaging (a)		3,858		35
TriZetto Group (a) (b)		4,771		81
United Surgical Partners (a) (b)		5,133		127
United Therapeutics (a) (b)		2,583		155
Valeant Pharmaceuticals International		9,911		185
Varian (a)		3,658		172
Ventana Medical Systems (a)		3,395		137
Viasys Healthcare (a)		3,559		102
ViroPharma (a)		7,647		102
Visicu (a)		769		8
VistaCare, Class A (a) (b)		1,373		17
Vital Images (a) (b)		1,437		45
Vital Signs		628		35
Volcano (a)		431		7
West Pharmaceutical Services		3,549		149
Wright Medical Group (a)		3,469		86
XenoPort (a)		2,131		51
Young Innovations		570		21
Zoll Medical (a)		1,221		47
ZymoGenetics (a) (b)		4,182		67

				18,100

Industrials – 14.1%
3D Systems (a) (b)		1,521		26
A.O. Smith		2,007		71
AAON		1,050		25
AAR (a) (b)		3,793		99
ABM Industries		4,506		89
ABX Air (a)		6,738		39
ACCO Brands (a)		5,021		122
Accuride (a)		2,524		31
Actuant, Class A (b)		3,054		157
Acuity Brands (b)		5,037		250
Administaff		2,546		88
Advisory Board (a) (b)		2,191		121
AirTran Holdings (a) (b)		10,392		104
Alaska Air Group (a) (b)		4,202		169
Albany International, Class A		3,012		101
Amerco (a) (b)		1,171		107
American Commercial Lines (a) (b)		3,271		210
American Ecology		1,737		36
American Railcar Industries		1,007		31
American Reprographics (a) (b)		2,911		103
American Science & Engineering (a) (b)		1,029		54
American Superconductor (a) (b)		3,788		36
American Woodmark (b)		1,292		48
Ameron International		1,083		79
Ampco-Pittsburgh		801		27
Amrep (b)		187		13
Apogee Enterprises		3,317		53
Applied Industrial Technology		5,145		148
ARGON ST (a) (b)		1,424		34
Arkansas Best (b)		3,026		124
Asset Acceptance Capital (a)		1,863		33
Astec Industries (a)		1,873		60
ASV (a) (b)		2,329		34
Atlas Air Worldwide Holdings (a)		2,061		94
Badger Meter		1,342		34
Baldor Electric		3,281		105
Banta		2,832		125
Barnes Group		3,978		80
Barrett Business Services (a)		777		17
Basin Water (a)		668		6
BE Aerospace (a) (b)		8,635		218
Beacon Roofing Supply (a) (b)		4,881		97
BlueLinx Holdings		854		9
Bowne & Company		4,097		64
Brady, Class A (b)		4,705		174
Briggs & Stratton		5,843		149
Bright Horizons Family Solutions (a)		3,091		119
Bucyrus International		3,516		147
Builders FirstSource (a)		1,244		20
Capstone Turbine (a) (b)		11,455		18
Cascade		1,389		71
Casella Waste Systems (a)		2,313		26
CBIZ (a)		6,940		49
CDI		990		23
Celadon Group (a)		2,187		41
Central Parking		1,648		28
Cenveo (a)		6,012		119
Ceradyne (a) (b)		2,900		120
Chart Industries (a)		914		13
China BAK Battery (a) (b)		3,019		21
Circor International		1,866		62
CLARCOR (b)		5,768		188
Clean Harbors (a) (b)		1,835		79
Coinstar (a)		2,882		88
Color Kinetics (a)		1,483		29
Columbus Mckinnon (a)		2,040		45

First American Funds Annual Report 2006 29

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Comfort Systems USA		4,501	$	52
Commercial Vehicle Group (a)		2,349		48
COMSYS IT Partners (a)		1,706		35
Consolidated Graphics (a)		1,352		84
Cornell (a)		738		13
CoStar Group (a)		1,944		92
CRA International (a)		1,380		70
Cubic		1,954		41
Curtiss-Wright (b)		4,999		169
Deluxe		5,720		130
Diamond Management & Technology Consultation (a)		3,167		34
Dollar Thrifty Automotive (a)		2,870		115
Dycom Industries (a) (b)		4,725		110
Dynamex (a)		1,487		32
Dynamic Materials		1,314		42
DynCorp International (a)		2,790		29
EDO (b)		1,785		43
Educate (a)		2,337		18
EGL (a)		3,698		126
Electro Rent (a)		2,142		35
ElkCorp (b)		2,501		63
EMCOR Group (a)		3,505		207
Encore Wire (a) (b)		2,593		70
Energy Conversion Devices (a) (b)		4,353		160
EnerSys (a)		4,842		85
ENGlobal (a) (b)		1,797		11
Ennis Business Forms		2,902		67
EnPro Industries (a)		2,500		80
ESCO Technologies (a) (b)		2,902		126
Essex (a)		2,176		43
Esterline Technologies (a)		2,864		108
Evergreen Solar (a) (b)		7,449		65
Exponent (a)		1,806		33
ExpressJet Holdings (a)		5,151		41
Federal Signal		5,523		84
First Advantage (a) (b)		413		9
First Consulting Group (a)		2,403		26
Flanders (a)		1,630		16
Florida East Coast Industries (b)		3,629		217
Flow International (a) (b)		3,899		46
Forward Air (b)		3,689		120
Franklin Electric (b)		2,382		128
FreightCar America		1,402		75
Frontier Airlines Holdings (a) (b)		4,424		36
FTI Consulting (a)		4,666		133
FuelCell Energy (a) (b)		5,500		36
G&K Services, Class A (b)		2,239		85
Gehl Company (a)		1,387		40
GenCorp (a) (b)		6,139		80
General Cable (a) (b)		5,635		212
Genesee & Wyoming, Class A (a)		4,054		114
Genlyte Group (a) (b)		2,732		211
Geo Group (a)		1,912		73
Geo Group, Fractional Shares (a) (c)		0.50		—
GEVITY HR (b)		3,271		74
Global Cash Access Holdings (a) (b)		3,712		59
Goodman Global (a)		2,627		42
Gorman-Rupp		1,092		41
Granite Construction		3,952		206
Greenbrier Companies (b)		1,443		54
Griffon (a) (b)		3,486		86
H & E Equipment Services (a)		1,277		34
Healthcare Services Group		2,825		77
Heartland Express (b)		7,231		118
HEICO (b)		2,575		93
Heidrick & Struggles International (a)		2,227		91
Herley Industries (a)		1,382		20
Herman Miller (b)		6,930		238
Hexcel (a) (b)		10,406		168
Horizon Lines, Class A		982		23
Houston Wire & Cable (a)		584		12
Hub Group (a) (b)		4,656		126
Hudson Highland Group (a)		2,867		34
Huron Consulting Group (a)		1,940		78
ICT Group (a)		755		24
IHS, Class A (a)		2,481		86
II-VI (a)		2,754		67
IKON Office Solutions (b)		11,446		171
Infrasource Services (a)		2,582		51
Innovative Solutions & Support (a)		1,587		25
Insituform Technologies, Class A (a) (b)		3,201		75
Insteel Industries		1,554		28
Integrated Electrical Services (a)		1,709		29
Interline Brands (a)		3,023		72
Intermagnetics General (a)		4,804		131
Interpool		1,009		24
Ionatron (a) (b)		2,993		13
Jackson Hewitt Tax Service		4,022		139
Jacuzzi Brands (a)		8,753		108
JetBlue Airways (a) (b)		19,368		243
John H. Harland		3,135		128
K&F Industries Holdings (a)		2,090		41
Kadant (a)		1,659		45
Kaman		2,641		54
Kaydon (b)		3,366		141
Kelly Services, Class A		2,084		60
Kenexa (a)		1,747		56
Kforce (a)		3,874		58
Knight Transportation (b)		6,823		124
Knoll (b)		3,154		62
Korn/ Ferry International (a)		4,725		104
Labor Ready (a)		6,076		106
Ladish (a)		1,563		49
Lawson Products		473		23
Layne Christensen (a)		1,186		35
LB Foster (a)		1,138		25
LECG (a)		2,206		43
Lindsay Manufacturing		1,547		51
LSI Industries		2,259		41
Marten Transport (a)		1,772		30
MasTec (a)		4,054		44
McGrath Rentcorp		2,460		66
Medis Technologies (a) (b)		2,292		62
Mercury Computer Systems (a)		2,506		31
Mesa Air Group (a) (b)		3,792		34
Middleby (a)		744		67
Miller Industries (a)		1,065		21
Mobile Mini (a)		3,930		126
Moog, Class A (a)		4,026		150
MTC Technologies (a) (b)		1,081		24
Mueller Industries (b)		4,177		153
Mueller Water Products, Class A (a) (b)		2,093		33
NACCO Industries, Class A		561		84
Navigant Consulting (a)		5,134		91
Navistar International (a) (b)		6,560		182
NCI Building Systems (a) (b)		2,375		142
NCO Group (a)		3,663		99
Nordson		3,281		151
NuCo2 (a) (b)		1,249		35

The accompanying notes are an integral part of the financial statements.

30 First American Funds Annual Report 2006


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Old Dominion Freight Lines (a)		3,216	$	89
On Assignment (a)		2,909		33
Orbital Sciences (a)		6,341		115
Pacer International		4,171		128
Patriot Transportation Holdings (a)		73		6
PeopleSupport (a)		2,063		40
Perini (a)		2,060		51
PGT (a)		682		10
PHH (a)		6,007		166
Pico Holdings (a)		1,022		33
Pike Electric (a)		1,342		25
Plug Power (a) (b)		8,063		32
Portfolio Recovery Associates (a) (b)		1,847		86
Powell Industries (a)		804		19
Power-One (a)		8,511		58
Pre-Paid Legal Services (b)		1,224		52
PW Eagle (b)		1,172		42
Quality Distribution (a)		866		13
RailAmerica (a)		4,509		53
Raven Industries		1,843		59
RBC Bearings (a)		2,280		62
Regal-Beloit (b)		3,428		170
Republic Airways Holdings (a)		3,624		65
Resources Connection (a)		5,682		164
Robbins & Myers		1,478		57
Rollins		3,431		74
Rush Enterprises (a)		2,599		49
Saia (a)		1,962		53
Schawk		1,724		33
School Specialty (a)		2,133		84
Sequa, Class A (a)		749		79
SI International (a)		1,162		39
Simpson Manufacturing (b)		4,142		118
SIRVA (a)		5,528		18
Sitel (a)		6,524		28
SkyWest (b)		7,100		189
Sotheby’s Holdings, Class A (b)		6,740		256
Spherion (a)		7,394		54
Standard Parking (a) (b)		569		20
Standard Register		1,757		24
Standex International		1,554		45
Star Maritime Acquisition (a)		2,104		20
Sterling Construction (a)		968		20
Strayer Education		1,672		189
Synagro Technologies		6,847		30
TAL International Group		1,442		33
Taleo (a)		1,517		17
Team (a)		708		23
Tecumseh Products, Class A (a)		1,864		31
Teledyne Technologies (a)		3,799		159
Teletech Holdings (a)		3,799		74
Tennant		1,588		44
Tetra Tech (a)		6,187		112
The Lamson & Sessions Company (a) (b)		1,548		34
The Provident Service (a) (b)		1,094		30
Titan International (b)		1,764		33
TransDigm Group (a)		929		22
Tredegar		3,272		57
Trex (a) (b)		1,316		35
Triumph Group		1,873		90
TurboChef Technologies (a) (b)		1,795		22
U.S. Xpress Enterprises (a)		851		17
UAP Holding		5,676		142
United Industrial		1,121		50
United Stationers (a)		3,377		161
Universal Forest Products (b)		1,818		83
Universal Technical Institute (a)		2,387		48
Universal Truckload Services (a)		404		11
USA Truck (a)		690		12
Valmont Industries		1,964		110
Vertrue (a) (b)		760		34
Viad (b)		2,374		88
Vicor		2,293		27
Volt Information Sciences (a)		1,007		40
Wabash National		3,508		49
Washington Group International		2,949		167
Waste Connections (a) (b)		4,760		194
Waste Industries USA		830		24
Waste Services (a)		2,952		30
Watsco (b)		2,952		147
Watson Wyatt & Company Holdings		4,347		196
Watts Water Technologies, Class A		2,988		111
Werner Enterprises (b)		5,837		107
Westinghouse Air Brake Technologies (b)		5,347		168
Williams Scotsman International (a) (b)		3,318		78
Woodward Governor (b)		3,369		120

				21,329

Information Technology – 18.1%
24/7 Real Media (a)		5,402		53
3Com (a) (b)		43,787		213
Acacia Research – Acacia Technology (a)		3,105		40
Access Integrated Technology, Class A (a)		1,498		16
Actel (a)		3,157		52
Actuate (a)		6,284		33
Adaptec (a) (b)		12,734		58
ADTRAN (b)		7,505		174
Advanced Analogic Technologies (a)		3,363		21
Advanced Energy Industries (a)		3,371		53
Advent Software (a) (b)		2,576		95
Aeroflex (a)		8,516		92
Agile Software (a)		6,246		42
Agilysys		3,472		51
Altiris (a)		2,590		58
AMIS Holdings (a)		4,715		45
Amkor Technology (a) (b)		11,436		79
ANADIGICS (a) (b)		5,261		43
Anaren (a)		2,069		42
Andrew (a) (b)		16,889		156
Anixter International (a) (b)		3,643		218
Ansoft (a)		1,628		43
ANSYS (a) (b)		3,807		175
Applied Micro Circuits (a)		35,160		107
aQuantive (a) (b)		8,489		231
Ariba (a)		7,854		59
Arris Group (a) (b)		11,858		159
Art Technology Group (a)		12,423		31
Aspen Technology (a)		5,407		54
Asyst Technologies (a)		5,873		44
Atheros Communications (a) (b)		5,755		125
ATMI (a) (b)		4,384		139
Audiovox (a)		1,839		24
Avanex (a)		18,330		29
Avid Technology (a) (b)		4,710		170
Avocent (a)		5,161		189
Axcelis Technologies (a)		11,435		79
Bankrate (a) (b)		1,128		36
BearingPoint (a) (b)		21,916		183
Bel Fuse		1,135		40
Belden CDT (b)		4,946		179
Benchmark Electronics (a) (b)		7,135		189
BISYS Group (a)		12,750		141
Black Box		1,922		86
Blackbaud		4,690		117
Blackboard (a)		3,091		86

First American Funds Annual Report 2006 31

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Blue Coat Systems (a) (b)		1,613	$	36
Bookham (a) (b)		6,464		20
Borland Software (a)		9,386		52
Bottomline Technologies (a)		1,735		17
Brightpoint (a)		5,648		68
Brocade Communications Systems (a) (b)		30,645		249
Brooks Automation (a)		8,759		124
Cabot Microelectronics (a) (b)		2,949		84
CACI International (a) (b)		3,224		186
CAlAmp (a)		2,592		17
Carrier Access (a)		2,318		15
Cass Information Systems		648		24
C-COR.net (a)		5,913		59
Checkpoint Systems (a)		4,319		79
Chordiant Software (a)		8,839		28
CIBER (a)		6,071		42
Cirrus Logic (a)		10,038		71
CMGI (a)		55,049		77
CNET Networks (a) (b)		16,714		149
Cogent (a) (b)		4,822		55
Cognex		4,728		109
Coherent (a) (b)		3,138		101
Cohu		2,470		49
CommScope (a) (b)		6,202		198
Comtech Group (a) (b)		1,630		28
Comtech Telecommunications (a) (b)		2,574		92
Concur Technologies (a) (b)		3,439		55
Conexant Systems (a)		53,783		104
Convera (a) (b)		3,134		16
Covansys (a)		3,276		77
CPI International (a)		788		11
Credence Systems (a)		10,658		34
CSG Systems International (a)		5,748		155
CTS		4,195		59
CyberSource (a)		3,056		31
Cymer (a) (b)		4,141		192
Daktronics		4,324		103
DealerTrack Holdings (a)		1,188		30
Digi International (a)		2,878		40
Digital Insight (a)		3,980		123
Digital River (a) (b)		4,429		256
Digitas (a) (b)		10,522		111
Diodes (a) (b)		1,990		88
Dionex (a)		2,300		125
Ditech Networks (a)		3,820		30
DSP Group (a)		3,277		71
DTS (a)		2,062		44
Eagle Test Systems (a)		336		6
EarthLink (a)		13,846		97
Echelon (a)		3,370		28
eCollege.com (a)		2,018		35
eFunds (a)		5,170		128
Electro Scientific Industries (a) (b)		3,370		67
Electronics for Imaging (a) (b)		6,154		145
EMCORE (a) (b)		4,426		25
Emulex (a)		9,485		178
Entegris (a)		14,207		159
Epicor Software (a)		6,334		89
EPIQ Systems (a) (b)		1,555		24
Equinix (a) (b)		3,189		218
Euronet Worldwide (a) (b)		3,911		116
Exar (a)		4,150		54
Excel Technologies (a)		1,336		34
Extreme Networks (a)		14,550		55
FalconStor Software (a)		4,127		32
FEI (a) (b)		2,808		64
Finisar (a) (b)		24,947		87
Flir Systems (a) (b)		7,707		246
FormFactor (a)		5,104		195
Forrester Research (a)		1,711		54
Foundry Networks (a)		16,244		206
Gartner, Class A (a) (b)		6,634		123
Gateway (a)		29,447		49
Genesis Microchip (a)		4,116		42
Gerber Scientific (a)		2,517		37
Global Imaging Systems (a)		5,076		111
Harmonic (a) (b)		8,733		71
Heartland Payment Systems (b)		1,215		32
Hittite Microwave (a)		1,207		41
HouseValues (a) (b)		1,602		9
Hutchinson Technology (a)		2,884		67
Hypercom (a)		6,255		41
Hyperion Solutions (a)		6,248		234
i2 Technologies (a) (b)		1,579		32
ID Systems (a) (b)		1,235		26
iGATE (a)		2,412		14
Ikanos Communications (a)		1,876		16
Imation (b)		3,811		174
Infocrossing (a)		2,376		30
Informatica (a) (b)		9,912		123
InfoSpace (a)		3,540		72
infoUSA		3,732		41
Integral Systems		1,244		33
InterDigital Communications (a)		5,924		212
Intergraph (a)		3,221		141
Intermec (a)		5,592		126
InterNAP Network Services (a)		3,409		56
International DisplayWorks (a)		4,186		27
Internet Capital Group (a)		4,584		48
Inter-Tel		2,531		52
InterVoice (a)		4,519		28
Interwoven (a) (b)		4,938		63
Intevac (a)		2,325		48
iPass (a)		6,335		34
Itron (a) (b)		2,861		156
Ixia (a) (b)		4,780		44
IXYS (a)		2,845		29
J2 Global Communications (a) (b)		5,416		149
Jack Henry & Associates		8,281		180
JDA Software (a)		3,319		49
Jupitermedia (a) (b)		2,416		21
Kanbay International (a) (b)		3,542		101
Keane (a) (b)		5,408		63
KEMET (a) (b)		9,872		73
Komag (a) (b)		3,292		126
Kopin (a)		7,592		27
Kronos (a) (b)		3,661		124
Kulicke & Soffa (a)		6,417		58
L-1 Identity Solutions (a) (b)		7,286		104
Landauer		989		54
Lattice Semiconductor (a)		13,568		84
Lawson Software (a)		13,870		106
Lightbridge (a)		3,034		35
Lionbridge Technologies (a)		6,655		45
Liquidity Services (a)		865		15
Littelfuse (a) (b)		2,576		87
Lo-Jack (a)		2,010		40
Loral Space & Communications (a)		962		28
LTX (a)		7,332		34
Macrovision (a) (b)		5,759		153

The accompanying notes are an integral part of the financial statements.

32 First American Funds Annual Report 2006


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Magma Design Automation (a)		3,721	$	35
Magna Entertainment (a) (b)		4,903		26
Manhattan Associates (a)		3,159		93
ManTech International (a)		1,845		63
MapInfo (a)		2,559		34
Marchex (a) (b)		2,351		33
Mattson Technology (a)		5,225		51
Maximus		2,187		61
Maxwell Technologies (a) (b)		1,600		29
McDATA, Class A (a)		17,851		101
Measurement Specialties (a)		1,554		34
Mentor Graphics (a)		8,917		150
Methode Electronics, Class A		3,728		41
Metrologic Instruments (a)		1,467		27
Micrel (a)		7,327		82
Micros Systems (a) (b)		4,341		216
Microsemi (a)		7,476		147
MicroStrategy (a) (b)		1,182		141
Microtune (a)		6,626		34
Midway Games (a) (b)		3,983		34
Mindspeed Technologies (a) (b)		12,281		22
MIPS Technologies, Class A (a)		5,070		37
MKS Instruments (a)		3,725		81
Mobility Electronics (a)		3,320		10
Monolithic Power Systems (a)		2,207		22
MoSys (a)		2,514		19
MPS Group (a)		11,831		180
MRV Communications (a) (b)		13,933		48
MTS Systems (b)		2,258		75
Multi-Fineline Electronix (a)		901		22
Neoware Systems (a) (b)		2,208		26
Ness Technologies (a)		2,317		34
Net 1 UEPS Technologies (a) (b)		5,353		132
NETGEAR (a) (b)		3,632		97
Netlogic Microsystems (a) (b)		1,776		35
NetRatings (a)		1,760		31
NetScout Systems (a)		2,946		24
Newport (a)		4,206		91
Nextest Systems (a)		671		7
NIC (a)		3,824		18
Novatel Wireless (a)		3,465		29
Nuance Communications (a) (b)		14,164		163
Omniture (a)		817		7
OmniVision Technologies (a) (b)		5,989		98
ON Semiconductor (a)		18,619		116
Online Resources (a)		2,498		26
Open Solutions (a)		1,968		74
Openwave Systems (a)		10,206		88
Oplink Communications (a)		1,750		35
OPNET Technologies (a)		1,438		21
Opsware (a)		8,779		80
OSI Systems (a)		1,717		36
OYO Geospace (a)		439		25
Packeteer (a)		4,044		45
Palm (a) (b)		10,218		157
Parametric Technology (a)		12,401		242
Park Electrochemical		2,388		73
ParkerVision (a) (b)		2,099		19
Paxar (a) (b)		4,187		84
PDF Solutions (a)		2,221		31
Pegasystems		1,729		17
Perficient (a)		1,959		33
Pericom Semiconductor (a)		2,924		28
Perot Systems, Class A (a)		9,345		138
Phase Forward (a)		3,783		53
Photon Dynamics (a)		1,968		23
Photronics (a) (b)		4,599		64
Plantronics (b)		5,524		117
Plexus (a)		4,949		108
PLX Technology (a)		2,787		35
Polycom (a) (b)		9,849		270
PortalPlayer (a)		2,753		33
Powerwave Technologies (a) (b)		12,466		81
Presstek (a)		3,488		21
Progress Software (a)		4,150		119
QAD		1,550		13
Quality Systems (b)		1,804		77
Quantum (a) (b)		20,931		46
Quest Software (a)		7,446		110
Rackable Systems (a) (b)		3,086		96
Radiant Systems (a)		2,732		30
RadiSys (a)		2,383		44
Radyne Comstream (a)		2,005		20
RAE Systems (a)		4,296		17
RealNetworks (a)		11,836		130
Redback Networks (a) (b)		6,747		107
Renaissance Learning (b)		1,050		16
RF Micro Devices (a) (b)		21,402		156
RightNow Technologies (a)		1,674		28
Rofin-Sinar Technologies (a)		1,783		110
Rogers (a)		1,960		137
Rudolph Technologies (a)		2,937		52
S1 (a)		8,384		41
Safeguard Scientifics (a)		13,397		33
SAFENET (a)		2,807		60
Sapient (a) (b)		9,513		52
SAVVIS (a) (b)		3,442		107
ScanSource (a)		2,892		91
Secure Computing (a)		5,581		40
Semitool (a)		1,957		24
Semtech (a) (b)		8,418		110
Sigma Designs (a)		2,537		53
Silicon Image (a)		9,440		112
Silicon Storage Technology (a) (b)		10,492		44
Sirenza Microdevices (a)		2,769		20
SiRF Technology Holdings (a) (b)		5,724		161
Skyworks Solutions (a)		17,977		119
Smith Micro Software (a) (b)		2,240		38
Sohu.com (a) (b)		2,963		68
Sonic Solutions (a)		2,852		46
SonicWALL (a)		6,382		67
Sonus Networks (a) (b)		28,325		148
SPSS (a)		2,143		59
SRA International, Class A (a)		3,902		125
Staktek Holdings (a)		1,330		8
Standard Microsystems (a)		2,458		76
StarTek		1,262		17
Stellent		2,846		32
Stratasys (a) (b)		1,244		35
Stratex Networks (a)		10,717		50
SunPower (a) (b)		1,142		38
Superior Essex (a) (b)		2,026		76
Supertex (a) (b)		1,241		55
Sybase (a) (b)		9,493		231
Sycamore Networks (a)		19,916		75
Sykes Enterprises (a)		2,939		60
Symmetricom (a)		5,264		45
Synaptics (a)		2,627		75
SYNNEX (a)		992		22
Syntel		894		22
Take-Two Interactive Software (a) (b)		7,972		112
TALX		3,256		79
TASER International (a) (b)		6,974		65
Technitrol		4,619		116

First American Funds Annual Report 2006 33

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Small Cap Index Fund (continued)
DESCRIPTION	SHARES		VALUE

Tekelec (a)		6,450	$	95
Terremark Worldwide (a)		3,819		20
Tessera Technologies (a)		5,175		181
The Knot (a)		1,621		39
ThermoGenesis (a)		6,003		25
TheStreet.com		2,047		19
THQ (a) (b)		7,083		213
TIBCO Software (a)		23,356		216
TNS (a) (b)		2,686		44
Transaction Systems Architects (a)		4,302		145
Transmeta (a) (b)		21,803		26
TranSwitch (a) (b)		14,205		21
Travelzoo (a)		305		10
Trident Microsystems (a) (b)		6,187		131
TriQuint Semiconductor (a)		16,582		75
TTM Technologies (a)		4,709		57
Tyler Technologies (a)		4,326		61
Ulticom (a)		1,577		16
Ultimate Software Group (a)		2,445		60
Ultratech (a)		2,814		40
United Online (b)		6,993		95
Universal Display (a) (b)		2,800		32
UTStarcom (a) (b)		12,762		137
VA Software (a)		6,954		28
ValueClick (a)		11,149		210
Varian Semiconductor Equipment Associates (a)		6,303		230
Vasco Data Security International (a) (b)		3,006		35
Veeco Instruments (a)		3,148		59
Verint Systems (a)		1,542		50
ViaSat (a)		2,464		67
Vignette (a)		3,427		56
Virage Logic (a)		1,892		18
Volterra Semiconductor (a) (b)		2,087		36
WebEx Communications (a) (b)		4,664		179
webMethods (a)		6,369		48
Websense (a)		5,460		149
WebSideStory (a) (b)		1,950		25
Wind River Systems (a) (b)		8,093		89
Witness Systems (a)		3,735		66
Wright Express (a)		4,796		131
X-Rite (b)		2,618		30
Zhone Technologies (a) (b)		10,687		15
Zoran (a)		5,525		77
Zygo (a)		2,013		35

				27,232

Materials – 4.8%
A. Schulman		3,500		85
A.M. Castle & Company		1,248		42
AEP Industries (a)		798		42
AK Steel Holding (a)		12,529		187
Aleris International (a)		3,513		181
Alpha Natural Resources (a)		5,683		90
AMCOL International (b)		2,466		65
American Vanguard (b)		2,060		33
AptarGroup (b)		3,584		197
Arch Chemicals		2,929		98
Balchem		1,630		36
Bowater (b)		6,383		133
Brush Engineered Metals (a) (b)		2,292		77
Buckeye Technologies (a)		3,469		36
Calgon Carbon (a) (b)		4,187		19
Cambrex (b)		3,013		70
Caraustar Industries (a)		3,283		36
Century Aluminum (a) (b)		2,682		104
CF Industries Holdings		5,365		106
Chaparral Steel Company (a)		5,176		215
Chesapeake		2,424		38
Cleveland-Cliffs (b)		4,786		202
Coeur D’Alene Mines (a) (b)		30,990		152
Compass Minerals International		3,037		94
Deltic Timber		1,263		64
Ferro		5,005		99
Georgia Gulf		3,893		83
Gibraltar Industries		2,364		50
Glatfelter (b)		4,234		62
GrafTech International (a)		11,088		67
Graphic Packaging (a)		8,775		34
Greif, Class A		1,760		165
H.B. Fuller		6,802		169
Headwaters (a) (b)		4,935		122
Hecla Mining (a) (b)		13,820		90
Hercules (a)		12,833		234
Innospec		1,423		48
Koppers Holdings		1,112		23
Longview Fibre		7,691		162
MacDermid		3,444		115
Mercer International (a)		4,051		39
Metal Management		2,905		80
Minerals Technologies (b)		2,331		129
Myers Industries		3,259		59
Neenah Paper		1,274		47
NewMarket Group (b)		2,081		134
NL Industries		971		11
NN		2,093		24
Olin		8,123		141
Olympic Steel		933		23
OM Group (a) (b)		3,373		192
Omnova Solutions (a)		4,619		20
Oregon Steel Mills (a)		4,044		220
Pioneer Companies (a)		1,569		40
PolyOne (a)		10,483		86
Quanex		4,294		144
Rock-Tenn, Class A		3,363		69
Rockwood Holdings (a)		3,416		80
Royal Gold (b)		2,219		65
RTI International Metals (a)		2,645		162
Ryerson Tull (b)		2,943		71
Schnitzer Steel Industries, Class A		2,497		87
Schweitzer-Mauduit International		1,810		42
Sensient Technologies		5,572		128
Silgan Holdings		2,543		105
Spartech (b)		3,829		105
Steel Technologies		1,331		26
Stepan		420		13
Stillwater Mining (a) (b)		4,808		52
Symyx Technologies (a)		3,722		91
Terra Industries (a) (b)		10,299		96
Texas Industries (b)		2,588		161
Tronox		4,607		60
US Concrete (a)		3,725		24
USEC (b)		9,827		110
W.R. Grace & Company (a) (b)		7,992		107
Wausau-Mosinee Paper		4,850		66
Wheeling-Pittsburgh (a)		1,000		20
Worthington Industries (b)		7,703		133
Zoltek Companies (a) (b)		1,816		45

				7,232

The accompanying notes are an integral part of the financial statements.

34 First American Funds Annual Report 2006


Telecommunication Services – 1.5%
@Road (a)	6,864	$	43
Alaska Communications Systems Group	4,678		67
Atlantic Tele-Network	596		12
Broadwing (a) (b)	8,241		123
Cbeyond (a) (b)	1,835		56
Centennial Communications, Class A	2,710		14
Cincinnati Bell (a)	28,793		135
Cogent Communications Group (a)	2,339		33
Commonwealth Telephone Enterprises	2,531		106
Consolidated Communications Holdings	2,597		48
Covad Communications Group (a)	32,647		43
CT Communications	2,169		51
Dobson Communications, Class A (a)	16,714		130
EMS Technologies (a)	1,690		31
Eschelon Telecom (a)	1,042		18
FairPoint Communications	3,519		63
Fibertower (a) (b)	12,637		92
General Communication (a)	6,326		83
Golden Telecom	2,474		92
IDT (a)	6,503		84
InPhonic (a) (b)	2,125		19
Iowa Telecommunication Services	3,552		71
iPCS (a) (b)	1,676		90
North Pittsburgh	1,653		44
NTELOS Holdings (a)	1,680		24
Premiere Global Services (a)	8,216		68
Price Communications (a)	5,354		105
Shenandoah Telecommunications	803		38
SureWest Communications	1,665		38
Syniverse Holdings (a)	2,527		37
Talk America Holdings (a)	3,620		29
Time Warner Telecom, Class A (a) (b)	12,926		258
USA Mobility	2,976		76
Vonage Holdings (a) (b)	3,490		24
Wireless Facilities (a) (b)	7,278		18

			2,263
Utilities – 2.9%
Allete (b)	2,994		135
American States Water (b)	2,006		84
Aquila (a)	42,600		196
Avista	5,536		142
Black Hills (b)	3,837		132
California Water Service	2,037		79
Cascade Natural Gas	1,062		27
CH Energy Group	1,859		97
CLECO	5,885		151
Duquesne Light Holdings	8,741		173
El Paso Electric (a)	5,546		130
Empire District Electric	3,229		77
EnergySouth	777		30
IDACORP (b)	4,816		190
ITC Holdings	1,592		57
Laclede Group	2,523		90
MGE Energy	2,440		83
New Jersey Resources	3,174		165
NICOR (b)	4,843		223
Northwest Natural Gas	2,541		105
NorthWestern	4,199		149
Ormat Technologies	822		32
Otter Tail	3,485		104
People’s Energy (b)	3,958		173
Piedmont Natural Gas (b)	8,744		236
PNM Resources	7,190		202
Portland General Electric (b)	2,996		77
SJW	1,746		59
South Jersey Industries	3,334		103
Southern Union, Fractional Shares (a) (c)	0.85		—
Southwest Gas (b)	4,191		150
Southwest Water	2,457		31
UIL Holdings (b)	2,705		108
UniSource Energy Holding	4,187		149
Westar Energy (b)	8,997		228
WGL Holdings (b)	4,599		149

			4,316

Total Common Stocks (Cost $107,462)			147,883


Short-Term Investments – 1.8%
Money Market Fund – 1.6%
First American Prime Obligations Fund, Class Z (d)			2,455,396		2,455

U.S. Treasury Obligation – 0.2%
U.S. Treasury Bill 4.940%, 03/01/2007 (e)		$	300		295

Total Short-Term Investments (Cost $2,750)					2,750

Investments Purchased with Proceeds from Securities Lending (f) – 38.7%
	(Cost $58,255)				58,255

Total Investments – 138.6%
	(Cost $168,467)				208,888

Other Assets and Liabilities, Net – (38.6)%					(58,172	)

Total Net Assets – 100.0%				$	150,716


(a)	Non-income producing security.

(b)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $55,592 at October 31, 2006. See note 2 in Notes to Financial Statements.

(c)	Security is fair valued and illiquid. As of October 31, 2006, the fair value of these investments was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements.

(d)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(e)	Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of October 31, 2006. See note 2 in Notes to Financial Statements.


(f)	The fund may loan securities in return for collateral in the form of cash, U.S. government securities, or other high grade debt obligations. The cash collateral is invested in various short-term fixed income securities, such as repurchase agreements, commercial paper, money market funds and other corporated obligations. See note 2 in Notes to Financial Statements.

REIT – Real Estate Investment Trust

Schedule of Open Futures Contracts

Number of

Notional

Contracts

Contract

Settlement

Unrealized

Description

Purchased

Value

Month

Appreciation

Russell 2000 Index Futures

2,313

December 2006

First American Funds Annual Report 2006 35

Statements of Assets and Liabilities October 31, 2006, all dollars and shares are rounded to thousands (000), except for per share data


		Equity		Mid Cap		Small Cap
		Index Fund		Index Fund		Index Fund

Investments in unaffiliated securities, at cost		$	1,392,625	$	262,508	$	107,757
Investments in affiliated securities, at cost			22,069		9,719		2,455
Investments purchased with proceeds from securities lending (note 2)			357,390		164,599		58,255

ASSETS:
Investments in unaffiliated securities, at value* (note 2)		$	2,210,553	$	347,753	$	148,178
Investments in affiliated securities, at value (note 2)			25,731		9,719		2,455
Investments purchased with proceeds from securities lending (note 2)			357,390		164,599		58,255
Receivable for dividends and interest			2,024		223		102
Receivable for investment securities sold			—		2,480		4
Receivable for capital shares sold			1,230		202		207
Prepaid expenses and other assets			40		46		41

Total assets			2,596,968		525,022		209,242

LIABILITIES:
Payable upon return of securities loaned (note 2)			357,390		164,599		58,255
Payable for investment securities purchased			675		324		—
Payable for capital shares redeemed			5,717		486		162
Payable for variation margin			4		49		7
Payable to affiliates (note 3)			708		144		78
Payable for distribution and shareholder servicing fees			105		10		6
Accrued expenses and other liabilities			68		22		18

Total liabilities			364,667		165,634		58,526

Net assets		$	2,232,301	$	359,388	$	150,716

COMPOSITION OF NET ASSETS:
Portfolio capital		$	1,404,050	$	258,439	$	92,184
Accumulated net realized gain on investments and futures contracts			6,069		15,382		18,013
Net unrealized appreciation of investments			821,590		85,245		40,421
Net unrealized appreciation of futures contracts			592		322		98

Net assets		$	2,232,301	$	359,388	$	150,716

	* Including securities loaned, at value	$	345,441	$	158,121	$	55,592

Class A:
Net assets		$	229,185	$	14,722	$	10,639
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)			8,882		1,033		656
Net asset value, and redemption price per share		$	25.80	$	14.25	$	16.23
Maximum offering price per share⁽¹⁾		$	27.30	$	15.08	$	17.17
Class B:
Net assets		$	43,369	$	2,678	$	1,333
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)			1,703		191		85
Net asset value, offering price, and redemption price per share⁽²⁾		$	25.47	$	13.98	$	15.77
Class C:
Net assets		$	20,714	$	4,320	$	2,662
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)			809		308		167
Net asset value, offering price, and redemption price per share⁽²⁾		$	25.62	$	14.03	$	15.92
Class R:
Net assets		$	3,419	$	4,032	$	280
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)			133		284		17
Net asset value, offering price, and redemption price per share		$	25.77	$	14.19	$	16.04
Class Y:
Net assets		$	1,935,614	$	333,636	$	135,802
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)			75,040		23,386		8,368
Net asset value, offering price, and redemption price per share		$	25.79	$	14.27	$	16.23


	⁽¹⁾	The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%.

	⁽²⁾	Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

36 First American Funds Annual Report 2006

Statements of Operations For the year ended October 31, 2006, all dollars are rounded to thousands (000)


	Equity			Mid Cap			Small Cap
	Index Fund			Index Fund			Index Fund

INVESTMENT INCOME:
Dividends from unaffiliated securities	$	40,974		$	4,947		$	1,640
Dividends from affiliated securities		547			69			219
Less: Foreign taxes witheld		—			—			(1	)
Interest from unaffiliated securities		1,173			405			13
Securities lending income		572			155			206

Total investment income		43,266			5,576			2,077

EXPENSES (note 3):
Investment advisory fees		5,458			908			637
Administration fees		3,483			595			335
Transfer agent fees		2,111			376			191
Custodian fees		115			19			9
Registration fees		64			55			52
Professional fees		35			36			35
Postage and printing fees		104			17			8
Directors’ fees		37			18			15
Other expenses		63			29			37
Distribution and shareholder servicing fees – Class A		589			37			27
Distribution and shareholder servicing fees – Class B		491			33			14
Distribution and shareholder servicing fees – Class C		227			39			24
Distribution and shareholder servicing fees – Class R		15			3			1

Total expenses		12,792			2,165			1,385

Less: Fee waivers (note 3)		(3,371	)		(229	)		(391	)
Less: Indirect payments from custodian (note 3)		(3	)		(1	)		(1	)

Total net expenses		9,418			1,935			993

Investment income – net		33,848			3,641			1,084

REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FUTURES CONTRACTS – NET (note 6):
Net realized gain on unaffiliated investments		47,833			16,650			19,061
Net realized gain on affiliated investments		394			—			—
Net realized gain (loss) on futures contracts		1,901			(149	)		115
Net change in unrealized appreciation or depreciation of unaffiliated investments		241,470			24,440			8,715
Net change in unrealized appreciation or depreciation of affiliated investments		1,034			—			—
Net change in unrealized appreciation or depreciation of future contracts		29			333			91

Net gain on investments and futures contracts		292,661			41,274			27,982

Net increase in net assets resulting from operations	$	326,509		$	44,915		$	29,066

First American Funds Annual Report 2006 37

Statements of Changes in Net Assets all dollars are rounded to thousands (000)


		Equity
		Index Fund

					One-Month
		Year			Fiscal			Year
		Ended			Period Ended			Ended
		10/31/06			10/31/05			9/30/05

OPERATIONS:
Investment income – net		$	33,848		$	1,637		$	40,240
Net realized gain (loss) on unaffiliated investments			47,833			(10,825	)		(5,937	)
Net realized gain (loss) on affiliated investments			394			(7	)		513
Net realized gain on in-kind distributions (note 8)			—			—			115,666
Net realized gain (loss) on futures contracts			1,901			(622	)		(787	)
Net change in unrealized appreciation or depreciation of unaffiliated investments			241,470			(32,021	)		111,289
Net change in unrealized appreciation or depreciation of affiliated investments			1,034			2,629			(819	)
Net change in unrealized appreciation or depreciation of futures contracts			29			420			277

Net increase (decrease) in net assets resulting from operations			326,509			(38,789	)		260,442

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income – net:
	Class A		(3,188	)		(147	)		(3,686	)
	Class B		(338	)		(9	)		(543	)
	Class C		(153	)		(3	)		(235	)
	Class R		(26	)		(1	)		(10	)
	Class Y		(30,181	)		(1,477	)		(35,527	)
Net realized gain on investments:
	Class A		—			—			—
	Class B		—			—			—
	Class C		—			—			—
	Class R		—			—			—
	Class Y		—			—			—
Return of capital:
	Class A		—			(35	)		(12	)
	Class B		—			(2	)		(2	)
	Class C		—			(1	)		(1	)
	Class R		—			—	*		—	*
	Class Y		—			(347	)		(118	)

Total distributions			(33,886	)		(2,022	)		(40,134	)

CAPITAL SHARE TRANSACTIONS (note 5):
Class A:
	Proceeds from sales		41,039			4,409			44,458
	Reinvestment of distributions		2,685			156			3,435
	Payments for redemptions		(80,483	)		(4,029	)		(66,590	)

Increase (decrease) in net assets from Class A transactions			(36,759	)		536			(18,697	)

Class B:
	Proceeds from sales		1,830			119			2,433
	Reinvestment of distributions		327			11			531
	Payments for redemptions (note 3)		(21,365	)		(1,831	)		(20,370	)

Increase (decrease) in net assets from Class B transactions			(19,208	)		(1,701	)		(17,406	)

Class C:
	Proceeds from sales		1,467			145			2,768
	Reinvestment of distributions		145			4			228
	Payments for redemptions (note 3)		(8,052	)		(1,727	)		(9,668	)

Increase (decrease) in net assets from Class C transactions			(6,440	)		(1,578	)		(6,672	)

Class R:
	Proceeds from sales		2,111			85			1,362
	Reinvestment of distributions		26			1			10
	Payments for redemptions		(753	)		(6	)		(99	)

Increase in net assets from Class R transactions			1,384			80			1,273

Class Y:
	Proceeds from sales		279,571			16,558			363,331
	Reinvestment of distributions		18,320			1,126			22,938
	Payments for redemptions		(496,343	)		(40,781	)		(613,170	)

Decrease in net assets from Class Y transactions			(198,452	)		(23,097	)		(226,901	)

Decrease in net assets from capital share transactions			(259,475	)		(25,760	)		(268,403	)

Total increase (decrease) in net assets			33,148			(66,571	)		(48,095	)
Net assets at beginning of period			2,199,153			2,265,724			2,313,819

Net assets at end of period		$	2,232,301		$	2,199,153		$	2,265,724

Undistributed net investment income at end of period		$	—		$	—		$	—


*	Due to the presentation of the financial statements in thousands, the number rounds to zero.

The accompanying notes are an integral part of the financial statements.

38 First American Funds Annual Report 2006


Mid Cap									Small Cap
Index Fund									Index Fund

			One-Month									One-Month
Year			Fiscal			Year			Year			Fiscal			Year
Ended			Period Ended			Ended			Ended			Period Ended			Ended
10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05


$	3,641		$	146		$	3,270		$	1,084		$	65		$	1,357
	16,650			2,372			21,217			19,061			19			9,562
	—			—			—			—			—			—
	—			—			—			—			—			—
	(149	)		(122	)		1,346			115			(135	)		740
	24,440			(10,517	)		45,063			8,715			(5,614	)		16,613
	—			—			—			—			—			—
	333			(31	)		(1	)		91			7			(11	)

	44,915			(8,152	)		70,895			29,066			(5,658	)		28,261

	(118	)		—			(93	)		(65	)		—			(46	)
	(3	)		—			(4	)		—	⁽¹⁾		—			—
	(5	)		—			(3	)		(1	)		—			—
	(3	)		—			—			(1	)		—			—
	(3,558	)		—			(3,117	)		(1,226	)		—			(1,212	)
	(865	)		—			(453	)		(306	)		—			(657	)
	(215	)		—			(114	)		(45	)		—			(112	)
	(203	)		—			(95	)		(71	)		—			(140	)
	(7	)		—			—			(5	)		—			—
	(20,352	)		—			(11,737	)		(4,372	)		—			(12,476	)
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—

	(25,329	)		—			(15,616	)		(6,092	)		—			(14,643	)

	4,721			189			4,932			2,728			143			2,981
	948			—			532			366			—			694
	(6,088	)		(374	)		(4,723	)		(4,016	)		(77	)		(2,870	)

	(419	)		(185	)		741			(922	)		66			805

	226			25			306			267			5			215
	210			—			116			42			—			108
	(1,406	)		(7	)		(523	)		(668	)		(12	)		(379	)

	(970	)		18			(101	)		(359	)		(7	)		(56	)

	1,893			194			1,082			1,234			24			705
	190			—			92			68			—			133
	(1,365	)		(258	)		(747	)		(1,040	)		(137	)		(676	)

	718			(64	)		427			262			(113	)		162

	3,997			12			119			264			12			11
	9			—			—			6			—			—
	(130	)		—			—			(38	)		—			(2	)

	3,876			12			119			232			12			9

	46,865			3,157			73,080			25,574			1,010			49,781
	13,587			—			8,661			3,038			—			8,310
	(87,249	)		(6,774	)		(93,999	)		(67,311	)		(6,383	)		(62,922	)

	(26,797	)		(3,617	)		(12,258	)		(38,699	)		(5,373	)		(4,831	)

	(23,592	)		(3,836	)		(11,072	)		(39,486	)		(5,415	)		(3,911	)

	(4,006	)		(11,988	)		44,207			(16,512	)		(11,073	)		9,707
	363,394			375,382			331,175			167,228			178,301			168,594

$	359,388		$	363,394		$	375,382		$	150,716		$	167,228		$	178,301

$	—		$	245		$	99		$	—		$	65		$	—

First American Funds Annual Report 2006 39

Financial Highlights For a share outstanding throughout the indicated periods.


						Realized and
		Net Asset				Unrealized			Distributions						Net Asset
		Value		Net		Gains			from Net			Distributions			Value
		Beginning		Investment		(Losses) on			Investment			from Return			End of
		of Period		Income		Investments			Income			of Capital			Period

Equity Index Fund (1)
Class A
	2006 (2)	$	22.59	$	0.33	$	3.21		$	(0.33	)	$	—		$	25.80
	2005 (3)		23.00		0.01		(0.40	)		(0.02	)		—	(6)		22.59
	2005 (4)		20.91		0.34		2.09			(0.34	)		—	(6)		23.00
	2004 (4)		18.70		0.23		2.22			(0.24	)		—	(6)		20.91
	2003 (4)		15.31		0.21		3.38			(0.20	)		—			18.70
	2002 (4)		19.50		0.18		(4.19	)		(0.18	)		—			15.31
Class B
	2006 (2)	$	22.31	$	0.15	$	3.17		$	(0.16	)	$	—		$	25.47
	2005 (3)		22.72		—		(0.40	)		(0.01	)		—	(6)		22.31
	2005 (4)		20.66		0.18		2.06			(0.18	)		—	(6)		22.72
	2004 (4)		18.48		0.08		2.19			(0.09	)		—	(6)		20.66
	2003 (4)		15.13		0.08		3.35			(0.08	)		—			18.48
	2002 (4)		19.29		0.03		(4.15	)		(0.04	)		—			15.13
Class C
	2006 (2)	$	22.44	$	0.15	$	3.19		$	(0.16	)	$	—		$	25.62
	2005 (3)		22.85		—		(0.40	)		(0.01	)		—	(6)		22.44
	2005 (4)		20.78		0.18		2.07			(0.18	)		—	(6)		22.85
	2004 (4)		18.59		0.08		2.20			(0.09	)		—	(6)		20.78
	2003 (4)		15.23		0.08		3.36			(0.08	)		—			18.59
	2002 (4)		19.41		0.03		(4.17	)		(0.04	)		—			15.23
Class R (5)
	2006 (2)	$	22.57	$	0.26	$	3.21		$	(0.27	)	$	—		$	25.77
	2005 (3)		22.98		0.01		(0.40	)		(0.02	)		—	(6)		22.57
	2005 (4)		20.91		0.26		2.11			(0.30	)		—	(6)		22.98
	2004 (4)		18.70		0.23		2.20			(0.22	)		—	(6)		20.91
	2003 (4)		15.30		0.21		3.39			(0.20	)		—			18.70
	2002 (4)		19.50		0.18		(4.20	)		(0.18	)		—			15.30
Class Y
	2006 (2)	$	22.58	$	0.39	$	3.21		$	(0.39	)	$	—		$	25.79
	2005 (3)		22.99		0.02		(0.41	)		(0.02	)		—	(6)		22.58
	2005 (4)		20.91		0.40		2.08			(0.40	)		—	(6)		22.99
	2004 (4)		18.69		0.29		2.22			(0.29	)		—	(6)		20.91
	2003 (4)		15.30		0.25		3.38			(0.24	)		—			18.69
	2002 (4)		19.49		0.23		(4.19	)		(0.23	)		—			15.30


	(1)	Per share data calculated using average shares outstanding method.

	(2)	For the period November 1 to October 31 in the year indicated.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Includes a tax return of capital of less than $0.01.

	(7)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

40 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income (Loss)
					Ratio of			Investment			Average			to Average
			Net Assets		Expenses to			Income (Loss)			Net Assets			Net Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (7)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate



	15.76	%	$	229,185		0.62	%		1.36	%		0.77	%		1.21	%		3	%
	(1.70	)		234,629		0.62			0.69			0.79			0.52			—
	11.69			238,379		0.62			1.53			0.79			1.36			4
	13.12			234,349		0.62			1.13			0.79			0.96			1
	23.58			158,324		0.62			1.22			0.80			1.04			1
	(20.75	)		139,007		0.62			0.91			0.80			0.73			8

	14.94	%	$	43,369		1.37	%		0.63	%		1.52	%		0.48	%		3	%
	(1.78	)		56,097		1.37			(0.06	)		1.54			(0.23	)		—
	10.86			58,857		1.37			0.79			1.54			0.62			4
	12.31			69,828		1.37			0.38			1.54			0.21			1
	22.72			71,624		1.37			0.47			1.55			0.29			1
	(21.40	)		66,835		1.37			0.16			1.55			(0.02	)		8

	14.93	%	$	20,714		1.37	%		0.62	%		1.52	%		0.47	%		3	%
	(1.78	)		24,195		1.37			(0.05	)		1.54			(0.22	)		—
	10.84			26,258		1.37			0.79			1.54			0.62			4
	12.28			30,111		1.37			0.38			1.54			0.21			1
	22.65			31,330		1.37			0.47			1.55			0.29			1
	(21.38	)		21,637		1.37			0.16			1.55			(0.02	)		8

	15.47	%	$	3,419		0.87	%		1.08	%		1.15	%		0.80	%		3	%
	(1.72	)		1,715		0.87			0.44			1.19			0.12			—
	11.38			1,663		0.87			1.14			1.19			0.82			4
	13.00			333		0.62			1.13			0.79			0.96			1
	23.66			52,925		0.62			1.22			0.80			1.04			1
	(20.79	)		42,964		0.62			0.93			0.80			0.75			8

	16.07	%	$	1,935,614		0.37	%		1.61	%		0.52	%		1.46	%		3	%
	(1.69	)		1,882,517		0.37			0.94			0.54			0.77			—
	11.92			1,940,567		0.37			1.78			0.54			1.61			4
	13.45			1,979,198		0.37			1.38			0.54			1.21			1
	23.89			1,771,795		0.37			1.46			0.55			1.28			1
	(20.56	)		1,135,653		0.37			1.16			0.55			0.98			8

First American Funds Annual Report 2006 41

Financial Highlights For a share outstanding throughout the indicated periods.


							Realized and
		Net Asset					Unrealized			Distributions			Distributions			Net Asset
		Value		Net			Gains			from Net			from Net			Value
		Beginning		Investment			(Losses) on			Investment			Realized			End of
		of Period		Income (Loss)			Investments			Income			Gains			Period

Mid Cap Index Fund (1)
Class A
	2006 (2)	$	13.52	$	0.11		$	1.55		$	(0.11	)	$	(0.82	)	$	14.25
	2005 (3)		13.82		—			(0.30	)		—			—			13.52
	2005 (4)		11.84		0.09			2.40			(0.09	)		(0.42	)		13.82
	2004 (4)		10.36		0.05			1.67			(0.05	)		(0.19	)		11.84
	2003 (4)		8.51		0.04			2.08			(0.04	)		(0.23	)		10.36
	2002 (4)		9.38		0.04			(0.49	)		(0.04	)		(0.38	)		8.51
Class B
	2006 (2)	$	13.28	$	—		$	1.53		$	(0.01	)	$	(0.82	)	$	13.98
	2005 (3)		13.59		(0.01	)		(0.30	)		—			—			13.28
	2005 (4)		11.67		(0.01	)		2.37			(0.02	)		(0.42	)		13.59
	2004 (4)		10.25		(0.03	)		1.64			—			(0.19	)		11.67
	2003 (4)		8.44		(0.03	)		2.07			—			(0.23	)		10.25
	2002 (4)		9.33		(0.03	)		(0.48	)		—			(0.38	)		8.44
Class C
	2006 (2)	$	13.32	$	—		$	1.55		$	(0.02	)	$	(0.82	)	$	14.03
	2005 (3)		13.63		(0.01	)		(0.30	)		—			—			13.32
	2005 (4)		11.70		(0.01	)		2.38			(0.02	)		(0.42	)		13.63
	2004 (4)		10.28		(0.03	)		1.64			—			(0.19	)		11.70
	2003 (4)		8.47		(0.03	)		2.07			—			(0.23	)		10.28
	2002 (4)		9.38		(0.02	)		(0.51	)		—			(0.38	)		8.47
Class R (5)
	2006 (2)	$	13.48	$	0.07		$	1.55		$	(0.09	)	$	(0.82	)	$	14.19
	2005 (3)		13.78		—			(0.30	)		—			—			13.48
	2005 (4)		11.83		0.04			2.41			(0.08	)		(0.42	)		13.78
	2004 (4)		10.36		0.06			1.65			(0.05	)		(0.19	)		11.83
	2003 (4)		8.50		0.04			2.09			(0.04	)		(0.23	)		10.36
	2002 (4)		9.38		0.04			(0.50	)		(0.04	)		(0.38	)		8.50
Class Y
	2006 (2)	$	13.53	$	0.15		$	1.56		$	(0.15	)	$	(0.82	)	$	14.27
	2005 (3)		13.83		0.01			(0.31	)		—			—			13.53
	2005 (4)		11.84		0.12			2.41			(0.12	)		(0.42	)		13.83
	2004 (4)		10.37		0.08			1.66			(0.08	)		(0.19	)		11.84
	2003 (4)		8.51		0.06			2.09			(0.06	)		(0.23	)		10.37
	2002 (4)		9.38		0.06			(0.49	)		(0.06	)		(0.38	)		8.51


	(1)	Per share data calculated using average shares outstanding method.

	(2)	For the period November 1 to October 31 in the year indicated.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective in 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

42 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income (Loss)
					Ratio of			Investment			Average			to Average
			Net Assets		Expenses to			Income (Loss)			Net Assets			Net Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate



	12.70	%	$	14,722		0.75	%		0.77	%		0.81	%		0.71	%		7	%
	(2.17	)		14,318		0.75			0.26			0.80			0.21			1
	21.43			14,827		0.75			0.68			0.82			0.61			15
	16.80			11,987		0.75			0.47			0.80			0.42			14
	25.45			5,332		0.75			0.45			0.84			0.36			23
	(5.45	)		3,581		0.75			0.37			0.83			0.29			19

	11.87	%	$	2,678		1.50	%		0.03	%		1.56	%		(0.03	)%		7	%
	(2.28	)		3,485		1.50			(0.49	)		1.55			(0.54	)		1
	20.57			3,546		1.50			(0.08	)		1.57			(0.15	)		15
	15.88			3,133		1.50			(0.27	)		1.55			(0.32	)		14
	24.63			2,419		1.50			(0.30	)		1.59			(0.39	)		23
	(6.07	)		1,475		1.50			(0.37	)		1.58			(0.45	)		19

	11.96	%	$	4,320		1.50	%		0.02	%		1.56	%		(0.04	)%		7	%
	(2.27	)		3,388		1.50			(0.49	)		1.55			(0.54	)		1
	20.60			3,533		1.50			(0.08	)		1.57			(0.15	)		15
	15.83			2,653		1.50			(0.27	)		1.55			(0.32	)		14
	24.55			1,756		1.50			(0.30	)		1.59			(0.39	)		23
	(6.22	)		795		1.50			(0.37	)		1.58			(0.45	)		19

	12.40	%	$	4,032		1.00	%		0.47	%		1.17	%		0.30	%		7	%
	(2.18	)		131		1.00			0.01			1.20			(0.19	)		1
	21.09			122		1.00			0.28			1.22			0.06			15
	16.62			1		0.75			0.49			0.80			0.44			14
	25.60			4,134		0.75			0.46			0.84			0.37			23
	(5.56	)		3,393		0.75			0.37			0.83			0.29			19

	13.05	%	$	333,636		0.50	%		1.03	%		0.56	%		0.97	%		7	%
	(2.17	)		342,072		0.50			0.51			0.55			0.46			1
	21.82			353,354		0.50			0.92			0.57			0.85			15
	16.97			313,403		0.50			0.73			0.55			0.68			14
	25.86			239,174		0.50			0.71			0.59			0.62			23
	(5.23	)		198,545		0.50			0.63			0.58			0.55			19

First American Funds Annual Report 2006 43

Financial Highlights For a share outstanding throughout the indicated periods.


							Realized and
		Net Asset					Unrealized			Distributions			Distributions			Net Asset
		Value		Net			Gains			from Net			from Net			Value
		Beginning		Investment			(Losses) on			Investment			Realized			End of
		of Period		Income (Loss)			Investments			Income			Gains			Period

Small Cap Index Fund (1)
Class A
	2006 (2)	$	14.12	$	0.07		$	2.56		$	(0.10	)	$	(0.42	)	$	16.23
	2005 (3)		14.57		—			(0.45	)		—			—			14.12
	2005 (4)		13.38		0.07			2.17			(0.06	)		(0.99	)		14.57
	2004 (4)		11.47		0.04			1.98			(0.03	)		(0.08	)		13.38
	2003 (4)		8.55		0.04			2.92			(0.04	)		—			11.47
	2002 (4)		9.68		0.05			(1.13	)		(0.05	)		—			8.55
Class B
	2006 (2)	$	13.76	$	(0.04	)	$	2.48		$	(0.01	)	$	(0.42	)	$	15.77
	2005 (3)		14.21		(0.01	)		(0.44	)		—			—			13.76
	2005 (4)		13.15		(0.03	)		2.08			—			(0.99	)		14.21
	2004 (4)		11.33		(0.06	)		1.96			—			(0.08	)		13.15
	2003 (4)		8.47		(0.03	)		2.90			(0.01	)		—			11.33
	2002 (4)		9.63		(0.03	)		(1.13	)		—			—			8.47
Class C
	2006 (2)	$	13.88	$	(0.04	)	$	2.51		$	(0.01	)	$	(0.42	)	$	15.92
	2005 (3)		14.34		(0.01	)		(0.45	)		—			—			13.88
	2005 (4)		13.26		(0.03	)		2.10			—			(0.99	)		14.34
	2004 (4)		11.43		(0.06	)		1.97			—			(0.08	)		13.26
	2003 (4)		8.54		(0.03	)		2.93			(0.01	)		—			11.43
	2002 (4)		9.68		(0.03	)		(1.11	)		—			—			8.54
Class R (5)
	2006 (2)	$	13.97	$	0.03		$	2.53		$	(0.07	)	$	(0.42	)	$	16.04
	2005 (3)		14.43		—			(0.46	)		—			—			13.97
	2005 (4)		13.31		0.04			2.11			(0.04	)		(0.99	)		14.43
	2004 (4)		11.41		0.03			1.97			(0.02	)		(0.08	)		13.31
	2003 (4)		8.52		0.05			2.88			(0.04	)		—			11.41
	2002 (4)		9.64		0.05			(1.12	)		(0.05	)		—			8.52
Class Y
	2006 (2)	$	14.12	$	0.11		$	2.55		$	(0.13	)	$	(0.42	)	$	16.23
	2005 (3)		14.57		0.01			(0.46	)		—			—			14.12
	2005 (4)		13.43		0.11			2.12			(0.10	)		(0.99	)		14.57
	2004 (4)		11.51		0.07			1.99			(0.06	)		(0.08	)		13.43
	2003 (4)		8.57		0.07			2.94			(0.07	)		—			11.51
	2002 (4)		9.70		0.07			(1.13	)		(0.07	)		—			8.57


	(1)	Per share data calculated using average shares outstanding method.

	(2)	For the period November 1 to October 31 in the year indicated.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective in 2005, the Fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

44 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income (Loss)
					Ratio of			Investment			Average			to Average
			Net Assets		Expenses to			Income (Loss)			Net Assets			Net Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate



	19.02	%	$	10,639		0.83	%		0.47	%		1.08	%		0.22	%		17	%
	(3.09	)		10,067		0.83			0.27			1.01			0.09			—
	17.08			10,323		0.90			0.53			1.03			0.40			23
	17.71			8,749		0.93			0.30			1.02			0.21			25
	34.77			3,480		0.93			0.42			1.05			0.30			41
	(11.28	)		1,908		0.93			0.46			1.09			0.30			49

	18.07	%	$	1,333		1.58	%		(0.28	)%		1.83	%		(0.53	)%		17	%
	(3.17	)		1,498		1.58			(0.48	)		1.76			(0.66	)		—
	15.82			1,555		1.65			(0.23	)		1.78			(0.36	)		23
	16.83			1,494		1.68			(0.46	)		1.77			(0.55	)		25
	33.87			993		1.68			(0.33	)		1.80			(0.45	)		41
	(12.03	)		424		1.68			(0.29	)		1.84			(0.45	)		49

	18.15	%	$	2,662		1.58	%		(0.28	)%		1.83	%		(0.53	)%		17	%
	(3.21	)		2,068		1.58			(0.48	)		1.76			(0.66	)		—
	15.84			2,256		1.65			(0.23	)		1.78			(0.36	)		23
	16.77			1,939		1.68			(0.46	)		1.77			(0.55	)		25
	33.94			1,268		1.68			(0.33	)		1.80			(0.45	)		41
	(11.72	)		447		1.68			(0.26	)		1.84			(0.42	)		49

	18.75	%	$	280		1.08	%		0.23	%		1.47	%		(0.16	)%		17	%
	(3.19	)		23		1.08			0.02			1.41			(0.31	)		—
	16.45			11		1.15			0.30			1.43			0.02			23
	17.65			1		0.93			0.24			0.99			0.18			25
	34.54			3,210		0.93			0.52			1.05			0.40			41
	(11.26	)		13,576		0.93			0.42			1.09			0.26			49

	19.32	%	$	135,802		0.58	%		0.72	%		0.83	%		0.47	%		17	%
	(3.09	)		153,572		0.58			0.52			0.76			0.34			—
	16.93			164,156		0.65			0.78			0.78			0.65			23
	18.02			156,411		0.68			0.54			0.77			0.45			25
	35.23			119,102		0.68			0.68			0.80			0.56			41
	(11.09	)		94,749		0.68			0.68			0.84			0.52			49

First American Funds Annual Report 2006 45

Notes to Financial Statements October 31, 2006, all dollars and shares are rounded to thousands (000)


1 >	Organization


	The Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”) which is a member of the First American Family of Funds. As of October 31, 2006, FAIF offered 38 funds, including the funds listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. FAIF’s articles of incorporation permit the funds’ board of directors to create additional funds in the future. The Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund are each diversified open-end management investment companies.

	FAIF offers Class A, Class B, Class C, Class R, and Class Y shares. Class A shares are sold with a front-end sales charge. Class B shares are subject to a contingent deferred sales charge for six years and automatically convert to Class A shares after eight years. Class C shares may be subject to a contingent deferred sales charge for 12 months, and will not convert to Class A shares. Class R shares have no sales charge and are offered only through certain tax-deferred retirement plans. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts.

	The funds’ prospectuses provide descriptions of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’ servicing or distribution arrangements.


2 >	Summary of Significant Accounting Policies


	The significant accounting policies followed by the funds are as follows:

	SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, the ask will be the closing price. If the last trade is below the bid, the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. 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. When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the funds’ board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. If events occur that materially affect the value of securities (including non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. As of October 31, 2006, the Equity Index Fund and Small Cap Index Fund had fair valued securities with a total market value of $0 and $0 or 0.0% and 0.0%, respectively, of total net assets for the fund. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value. Investments in open-end mutual funds are valued at their respective net asset value on the valuation date.

	SECURITY TRANSACTIONS AND INVESTMENT INCOME – For financial statement purposes, the funds record security transactions on the trade date of the security purchase or sale. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes. The resulting gain/loss is calculated as the difference between the fair value and the underlying cost of the security on the transaction date. Each fund reserves the right to pay part or all of the proceeds from a redemption request in a proportionate share of readily marketable securities in the fund instead of cash.

46 First American Funds Annual Report 2006


	DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared and paid quarterly for Mid Cap Index Fund and Small Cap Index Fund and monthly for Equity Index Fund. Distributions are payable in cash or reinvested in additional shares of the fund. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually.

	FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required.

	Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book-to-tax differences. These differences are primarily due to losses deferred from wash sales, the tax recognition of mark to market gains (losses) on open futures contracts, proceeds from securities litigation, and the sale of real estate investment trust securities (“REITs”). To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the period that the differences arise.

	On the Statements of Assets and Liabilities the following reclassifications were made:


	Accumulated			Undistributed
	Net Realized			Net Investment
Fund	Gain (Loss)			Income

Equity Index Fund	$	(38	)	$	38
Mid Cap Index Fund		100			(100	)
Small Cap Index Fund		(144	)		144

The tax 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 period or year in which the amounts are distributed may differ from the period or year that the income or realized gains (losses) are recorded by the fund. The distributions paid during the fiscal year ended October 31, 2006, the one-month fiscal period ended October 31, 2005, and the fiscal year ended September 30, 2005, were as follows:


	October 31, 2006

	Ordinary		Long Term
Fund	Income		Gain		Total

Equity Index Fund	$	33,446	$	440	$	33,886
Mid Cap Index Fund		4,985		20,344		25,329
Small Cap Index Fund		1,293		4,799		6,092


	October 31, 2005

	Ordinary		Return
Fund	Income		of Capital		Total

Equity Index Fund	$	1,637	$	385	$	2,022


	September 30, 2005

	Ordinary		Long Term		Return
Fund	Income		Gain		of Capital		Total

Equity Index Fund	$	40,001	$	—	$	133	$	40,134
Mid Cap Index Fund		4,638		10,978		—		15,616
Small Cap Index Fund		6,571		8,072		—		14,643


	As of October 31, 2006, the components of accumulated earnings (deficit) on a tax basis were as follows:


							Total
	Undistributed		Undistributed		Unrealized		Accumulated
	Ordinary		Long Term		Appreciation		Earnings
Fund	Income		Capital Gains		(Depreciation)		(Deficit)

Equity Index Fund	$	—	$	23,507	$	804,744	$	828,251
Mid Cap Index Fund		424		16,416		84,109		100,949
Small Cap Index Fund		765		18,059		39,708		58,532


	The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses on wash sales and the amount of gain (loss) recognized for tax purposes due to mark to market adjustments on open futures contracts.

First American Funds Annual Report 2006 47

Notes to Financial Statements October 31, 2006, all dollars and shares are rounded to thousands (000)


	FUTURES TRANSACTIONS – In order to gain exposure to or protect against changes in the market, the funds may enter into S&P and Russell Index futures contracts and other stock index futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. government securities. The margin required for a futures contract is set by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract.

	The funds’ investment in stock index futures contracts is designed to maintain sufficient liquidity to meet redemption requests and to increase the level of fund assets devoted to replicating the composition of the S&P and Russell Indices while reducing transaction costs. Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s statement of assets and liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes.

	As of October 31, 2006, Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund had outstanding futures contracts.

	ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, and may have contractual restrictions on resale. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a fund’s investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the funds’ board of directors. At October 31, 2006, Equity Index Fund and Small Cap Index Fund had investments in illiquid securities with a total value of $0 and $0 or 0.0% and 0.0%, respectively, of total net assets.

	Information concerning illiquid securities, including restricted securities considered to be illiquid, is as follows:

Equity Index Fund

Shares

Dates Acquired

Cost Basis

Seagate, Escrow Shares

11/00 to 11/02

$—

Small Cap Index Fund

Shares

Dates Acquired

Cost Basis

FirstBank, Fractional Shares

—

8/05

$—

Geo Group, Fractional Shares

—

10/06

—

National Penn, Fractional Shares

—

10/05

—

Petrocorp, Escrow Shares

6/03 to 8/05

—

Southern Union Company, Fractional Shares

—

11/03 to 8/05

—

USB Holding Company, Fractional Shares

—

8/05

—


	*	Due to the presentation of the financial statements in thousands, the number rounds to zero.

48 First American Funds Annual Report 2006

SECURITIES LENDING – In order to generate additional income, each fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each fund’s policy is to maintain collateral in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. The collateral is then marked-to-market daily until the securities are returned. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially. Cash collateral is invested in short-term, high-quality, U.S. dollar denominated securities that would be eligible for investment by a money market fund under Investment Company Act Rule 2a-7. As of October 31, 2006, cash collateral invested was as follows:


									Other
	Commercial		Corporate		Repurchase		Money Market		Short-Term
	Paper		Obligations		Agreements		Funds		Securities		Total

Equity Index Fund	$	90,709	$	106,743	$	144,340	$	8,678	$	6,920	$	357,390
Mid Cap Index Fund		41,777		49,161		66,477		3,997		3,187		164,599
Small Cap Index Fund		14,786		17,399		23,528		1,414		1,128		58,255

FAF Advisors, Inc. (“FAF Advisors”), formerly U.S. Bancorp Asset Management, Inc., serves as the securities lending agent for the funds in transactions involving the lending of portfolio securities on behalf of the funds. FAF Advisors acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the Securities and Exchange Commission (“SEC”). Effective January 1, 2006, FAF Advisors receives fees equal to 32% of each fund’s income from securities lending transactions. Prior to January 1, 2006, such fees were 35% of each fund’s income from securities lending transactions. Effective January 1, 2007, FAF Advisors will receive fees of up to 25% of each fund’s net income from securities lending transactions. In addition, beginning February 1, 2007, collateral for securities on loan will be invested in a money market fund administered by FAF Advisors and FAF Advisors will receive an administration fee equal to 0.02% of such fund’s average daily net assets. Fees paid to FAF Advisors by the funds for the fiscal year ended October 31, 2006, were as follows:


Fund	Amount

Equity Index Fund	$	253
Mid Cap Index Fund		69
Small Cap Index Fund		91


	Income from securities lending is recorded on the Statement of Operations as securities lending income net of fees paid to FAF Advisors.

	SECURITY LITIGATION SETTLEMENTS – Income from settlement proceeds related to portfolio securities is recorded as an adjustment to realized or unrealized gains or losses. For the fiscal year ended October 31, 2006, Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund recorded $93, $12, and $34, respectively, as an adjustment to realized gains or losses for settlement proceeds related to securities no longer included in the portfolios.

	EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.

	INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal year ended October 31, 2006.

	DEFERRED COMPENSATION PLAN – Under a Deferred Compensation Plan (the “Plan”), non-interested directors of the First American Family of Funds may participate and elect to defer receipt of part or all of their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of selected open-end First American Funds as designated by the board of directors. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan.

	USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial

First American Funds Annual Report 2006 49

Notes to Financial Statements October 31, 2006, all dollars and shares are rounded to thousands (000)


	statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.


3 >	Fees and Expenses

INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee based upon average daily net assets. The annual fee for Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund is 0.25%, 0.25%, and 0.40%, respectively. FAF Advisors has agreed to waive fees and reimburse other fund expenses through June 30, 2007, so that total fund operating expenses, as a percentage of average daily net assets, do not exceed the following amounts:


	Share Class

Fund	A			B			C			R			Y

Equity Index Fund		0.62	%		1.37	%		1.37	%		0.87	%		0.37	%
Mid Cap Index Fund		0.75			1.50			1.50			1.00			0.50
Small Cap Index Fund		0.83			1.58			1.58			1.08			0.58


	The funds may invest in related money market funds that are series of First American Funds, Inc. , subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that is attributable to the assets of the investing fund. For financial statement purposes, these reimbursements are recorded as investment income.

	ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank National Association (“U.S. Bank”). Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors provides, or engages other entities to provide, services to the funds. These services include various legal, oversight and administrative services, and accounting services. The funds pay FAF Advisors administration fees, which are calculated daily and paid monthly. Prior to July 1, 2006, such fees were equal to each fund’s pro rata share of an amount equal, on an annual basis, to 0.15% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds, up to $8 billion, 0.135% on the next $17 billion of the aggregate average daily net assets, 0.12% on the next $25 billion of the aggregate average daily net assets, and 0.10% of the aggregate average daily net assets in excess of $50 billion.

	Effective July 1, 2006, the administration fee was increased to an amount equal, on an annualized basis, to 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets and 0.20% of the aggregate average daily net assets in excess of $50 billion. This increase was a result of incorporating into the administration fee a fee equal to 0.10% of the funds’ average daily net assets that had previously been paid to USBFS as part of the transfer agent fee for providing certain shareholder services, and to reimburse USBFS for its payments to financial institutions that establish and maintain omnibus accounts and provide customary services for such accounts. All fees paid to the sub-administrator are paid from the administration fee. In addition to the foregoing fees, the funds may reimburse FAF Advisors and USBFS for any out-of-pocket expenses incurred in providing administration services.

	For the fiscal year ended October 31, 2006, administration fees paid to FAF Advisors by the funds included in this annual report were as follows:


Fund	Amount

Equity Index Fund	$	3,392
Mid Cap Index Fund		561
Small Cap Index Fund		244

TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. Prior to July 1, 2006, the funds paid transfer agent fees of $18,500 per share class and additional per account fees for transfer agent services. These fees were allocated to each fund based upon the fund’s pro rata share of the aggregate average daily net assets of the funds that comprise FAIF. Under the transfer agent agreement, the funds also paid USBFS a fee equal, on an annual basis, to 0.10% of each fund’s average daily net assets. This fee was intended to compensate USBFS for

50 First American Funds Annual Report 2006


	providing certain shareholder services and to reimburse USBFS for its payments to financial institutions that establish and maintain omnibus accounts and provide customary services for such accounts. In addition to these fees, the funds reimbursed USBFS for out-of-pocket expenses incurred in providing transfer agent services.

	Effective July 1, 2006, the funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based on the number of accounts within that fund. The $18,500 fee per share class that was charged in addition to per account fees was eliminated. As noted above, effective July 1, 2006, the 0.10% fee for shareholder services and payments to financial services was incorporated into the administration fee. The funds continue to reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.

	For the fiscal year ended October 31, 2006, transfer agent fees paid to USBFS by the funds included in this annual report were as follows:


Fund	Amount

Equity Index Fund	$	2,122
Mid Cap Index Fund		371
Small Cap Index Fund		186


	CUSTODIAN FEES – U.S. Bank serves as the funds’ custodian pursuant to a custodian agreement with FAIF. The custodian fee charged for each fund is equal to an annual rate of 0.005% of average daily net assets. All fees are computed daily and paid monthly.

	Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from the custodian” in the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred which will increase the fund’s custodian expenses. For the fiscal year ended October 31, 2006, custodian fees for Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund were increased by $6, $1, and $1 as a result of overdrafts and decreased by $3, $1, and $1 as a result of interest earned, respectively.

	DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under rule 12b-1 of the Investment Company Act, each fund pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00%, 1.00% and 0.50% of each fund’s average daily net assets attributable to Class A shares, Class B shares, Class C shares and Class R shares, respectively. Class Y shares pay no distribution or shareholder servicing fees. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities.

	During the period, FAF Advisors also provided shareholder services pursuant to a shareholder servicing plan and agreement with FAIF with respect to the funds’ Class R shares. Under the shareholder servicing plan and agreement, each fund was required to pay FAF Advisors a monthly shareholder servicing fee equal to an annual rate of 0.15% of each fund’s average daily net assets attributable to Class R shares. FAF Advisors waived all fees under this plan and agreement. This agreement was terminated in September 2006.

	Under these distribution and shareholder servicing agreements, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended October 31, 2006:


Fund	Amount

Equity Index Fund	$	582
Mid Cap Index Fund		57
Small Cap Index Fund		32

OTHER FEES AND EXPENSES – In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each fund is responsible for paying most other operating expenses including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal year ended October 31, 2006, legal fees and expenses of $21 were paid to a law firm of which an Assistant Secretary of the funds is a partner.

First American Funds Annual Report 2006 51

Notes to Financial Statements October 31, 2006, all dollars and shares are rounded to thousands (000)


	CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) is imposed on redemptions made in Class B shares. The CDSC varies depending on the number of years from time of payment for the purchase of Class B shares until the redemption of such shares. Class B shares automatically convert to Class A shares after eight years.


	CDSC as a Percentage
	of Dollar Amount
Year Since Purchase	Subject to Charge

First		5.00	%
Second		5.00
Third		4.00
Fourth		3.00
Fifth		2.00
Sixth		1.00
Seventh		—
Eighth		—


	A CDSC of 1.00% is imposed on redemptions made in Class C shares for the first twelve months.

	The CDSC for Class B shares and Class C shares is imposed on the value of the purchased shares or the value at the time of redemption, whichever is less.

	For the fiscal year ended October 31, 2006, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:


Fund	Amount

Equity Index Fund	$	193
Mid Cap Index Fund		39
Small Cap Index Fund		14


4 >	Investment in Common Stock of Affiliate

As disclosed in the Schedule of Investments, Equity Index Fund owns common stock issued by U.S. Bancorp. For the fiscal year ended October 31, 2006, Equity Index Fund recorded a net realized gain from the sale of U.S. Bancorp common stock of $394 and $443 of dividend income from U.S. Bancorp common stock. At October 31, 2006, Equity Index Fund had an unrealized gain of $3,662 with respect to its investment in U.S. Bancorp common stock.

52 First American Funds Annual Report 2006


5 >	Capital Share Transactions


	FAIF has 324 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:


		Equity									Mid Cap									Small Cap
		Index Fund									Index Fund									Index Fund

					One-									One-									One-
					Month									Month									Month
					Fiscal									Fiscal									Fiscal
		Year			Period			Year			Year			Period			Year			Year			Period			Year
		Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
		10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05

Class A:
	Shares issued		1,707			196			1,995			338			14			385			177			10			212
	Shares issued in lieu of cash distributions		111			7			155			70			—			42			25			—			49
	Shares redeemed		(3,323	)		(180	)		(2,991	)		(434	)		(28	)		(367	)		(259	)		(5	)		(207	)

Total Class A transactions			(1,505	)		23			(841	)		(26	)		(14	)		60			(57	)		5			54

Class B:
	Shares issued		78			5			111			16			2			24			18			—			16
	Shares issued in lieu of cash distributions		14			—			25			16			—			9			3			—			8
	Shares redeemed		(903	)		(82	)		(924	)		(103	)		(1	)		(41	)		(45	)		(1	)		(28	)

Total Class B transactions			(811	)		(77	)		(788	)		(71	)		1			(8	)		(24	)		(1	)		(4	)

Class C:
	Shares issued		62			7			126			139			15			83			84			2			51
	Shares issued in lieu of cash distributions		6			—			10			14			—			7			5			—			10
	Shares redeemed		(337	)		(78	)		(436	)		(99	)		(20	)		(58	)		(71	)		(10	)		(50	)

Total Class C transactions			(269	)		(71	)		(300	)		54			(5	)		32			18			(8	)		11

Class R:
	Shares issued		87			4			60			283			1			9			18			1			1
	Shares issued in lieu of cash distributions		1			—			—			—			—			—			—			—			—
	Shares redeemed		(31	)		—			(4	)		(9	)		—			—			(3	)		—			—

Total Class R transactions			57			4			56			274			1			9			15			1			1

Class Y:
	Shares issued		11,626			741			16,348			3,363			237			5,681			1,699			73			3,545
	Shares issued in lieu of cash distributions		762			51			1,034			998			—			684			208			—			591
	Shares redeemed		(20,707	)		(1,825	)		(27,653	)		(6,256	)		(506	)		(7,277	)		(4,415	)		(460	)		(4,520	)

Total Class Y transactions			(8,319	)		(1,033	)		(10,271	)		(1,895	)		(269	)		(912	)		(2,508	)		(387	)		(384	)

Net decrease in capital shares			(10,847	)		(1,154	)		(12,144	)		(1,664	)		(286	)		(819	)		(2,556	)		(390	)		(322	)


	Class B shares converted to Class A shares (reflected as Class A shares issued and Class B shares redeemed) during the fiscal year ended October 31, 2006, the one-month fiscal period ended October 31, 2005, and the fiscal year ended September 30, 2005, were as follows:


			One-Month
	Year Ended		Fiscal Period			Year Ended
Fund	10/31/06		Ended 10/31/05			9/30/05

Equity Index Fund		373		30			231
Mid Cap Index Fund		42		—	*		5
Small Cap Index Fund		2		—			1


	*	Due to the presentation of the financial statements in thousands, this number rounds to zero.


6 >	Investment Security Transactions


	During the fiscal year ended October 31, 2006, purchases of securities and proceeds from sales of securities other than temporary investments in short-term securities, were as follows:


Fund	Purchases		Sales

Equity Index Fund	$	64,685	$	307,119
Mid Cap Index Fund		24,873		77,966
Small Cap Index Fund		25,816		71,410

First American Funds Annual Report 2006 53

Notes to Financial Statements October 31, 2006, all dollars and shares are rounded to thousands (000)


	The aggregate gross unrealized appreciation and depreciation of securities held by the funds and the total cost of securities (including cost of securities purchased with proceeds from securities lending) for federal income tax purposes at October 31, 2006, were as follows:


	Aggregate		Aggregate					Federal
	Gross		Gross					Income
Fund	Appreciation		Depreciation			Net		Tax Cost

Equity Index Fund	$	964,887	$	(160,143	)	$	804,744	$	1,788,930
Mid Cap Index Fund		113,489		(29,380	)		84,109		437,962
Small Cap Index Fund		48,619		(8,911	)		39,708		169,180


7 >	Indemnifications


	The funds enter into contracts that contain a variety of indemnifications. The funds’ maximum exposure under these arrangements is unknown. However, the funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.


8 >	Redemption-in-Kind Transaction


	In March 2005, the U.S. Bancorp Pension Plan redeemed $186,709 from the First American Equity Index Fund as a redemption-in-kind transaction. In this transaction, the fund distributed a proportionate amount of securities in the fund’s portfolio to the U.S. Bancorp Pension Plan. Remaining shareholders in the fund did not recognize any additional capital gains from the transaction.


9 >	New Accounting Pronouncements


	On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. At this time, management is evaluating the implications of FIN 48, and its impact in the financial statements has not yet been determined.

	In September 2006, FASB issued Statement on Financial Accounting Standards No. 157, “Fair Value Measurements” (FAS 157). FAS 157 clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of October 31, 2006, the funds do not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain of the measurements reported in the Statement of Operations for a fiscal period.


10 >	Subsequent Event


	On November 1, 2006, the U.S. Bancorp Pension Plan redeemed $205,549 from the First American Equity Index Fund as a redemption-in-kind transaction. In this transaction, the fund distributed a proportionate amount of securities in the fund’s portfolio to the U.S. Bancorp Pension Plan. Remaining shareholders in the fund did not recognize any additional capital gains from the transactions.

54 First American Funds Annual Report 2006

NOTICE TO SHAREHOLDERS October 31, 2006 (unaudited)

TAX INFORMATION


	The information set forth below is for each fund’s fiscal period as required by federal laws. Most shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal periods of a fund. Accordingly, the information needed for income tax purposes will be sent in early 2007 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information.

	For the fiscal year ended October 31, 2006, each fund has designated long term capital gains, ordinary income, and tax exempt income with regard to distributions paid during the period as follows:


	Long Term Capital			Ordinary Income
	Gains Distributions			Distributions			Total Distributions
Fund	(Tax Basis) ^(a)			(Tax Basis) ^(a)			(Tax Basis) ^(b)

Equity Index Fund		1	%		99	%		100	%
Mid Cap Index Fund		80			20			100
Small Cap Index Fund		79			21			100


	^(a)	Based on a percentage of the fund’s total distributions.

	^(b)	None of the distributions made by these funds are eligible for the dividends received deduction or are characterized as qualified dividend income.


	*Shareholder Notification of Federal Tax Status:*

	Each fund has designated the following percentages of the ordinary income distributions during the fiscal year ended October 31, 2006 as dividends qualifying for the dividends received deduction available to corporate shareholders:



Equity Index Fund	100.00	%
Mid Cap Index Fund	96.68
Small Cap Index Fund	66.88


	In addition, each fund has designated the following percentages of the ordinary income distributions from net investment income during the fiscal year ended October 31, 2006 as qualified dividend income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003:



Equity Index Fund	100.00	%
Mid Cap Index Fund	96.68
Small Cap Index Fund	67.31


	*Additional Information Applicable to Foreign Shareholders Only:*

	The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(c) for each fund were as follows:


Fund

Equity Index Fund	2.93	%
Mid Cap Index Fund	6.88
Small Cap Index Fund	7.37


	The percentage of ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(c) for each fund were as follows:


Fund

Equity Index Fund	0.00	%
Mid Cap Index Fund	31.82
Small Cap Index Fund	21.75

HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND PROXY VOTING RECORD

A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the funds voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge upon request by calling 800.677.FUND; (2) at firstamericanfunds.com; and (3) on the U.S. Securities and Exchange Commission’s website at www.sec.gov.

First American Funds Annual Report 2006 55

NOTICE TO SHAREHOLDERS October 31, 2006 (unaudited)

FORM N-Q HOLDINGS INFORMATION

Each fund is required to file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-Q. The funds’ Forms N-Q are available (1) without charge upon request by calling 800.677.FUND and (2) on the U.S. Securities and Exchange Commission’s website at www.sec.gov. In addition, you may review and copy the funds’ Forms N-Q at the Commission’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330.

APPROVAL OF INVESTMENT ADVISORY AGREEMENT


	The Board of Directors of the funds (the “Board”), which is comprised entirely of independent directors, oversees the management of each fund and, as required by law, determines annually whether to renew the funds’ advisory agreement with FAF Advisors, Inc. (“FAF Advisors”).

	At a meeting on May 1-3, 2006, the Board considered information relating to the funds’ investment advisory agreement with FAF Advisors (the “Agreement”). In advance of the meeting, the Board received materials relating to the Agreement, and had the opportunity to ask questions and request further information in connection with their consideration. At a subsequent meeting on June 19-21, 2006, the Board concluded its consideration of and approved the Agreement through June 30, 2007.

	Although the Agreement, which is with First American Investment Funds, Inc., relates to all of the funds, the Board separately considered and approved the Agreement with respect to each fund. In considering the Agreement, the Board, advised by independent legal counsel, reviewed and considered the factors it deemed relevant, including: (1) the nature, quality and extent of FAF Advisors’ services to the fund, (2) the investment performance of the fund, (3) the profitability of FAF Advisors related to the fund, including an analysis of FAF Advisors’ cost of providing services and comparative expense information, (4) whether economies of scale may be realized as the fund grows and whether fee levels are adjusted to enable fund investors to share in these potential economies of scale, and (5) other benefits that accrue to FAF Advisors through its relationship with the funds. In its deliberations, the Board did not identify any single factor which alone was responsible for the Board’s decision to approve the Agreement.

	Before approving the Agreement, the Board met in executive session with its independent counsel on numerous occasions to consider the materials provided by FAF Advisors and the terms of the Agreement. Based on its evaluation of those materials, the Board concluded that the Agreement is fair and in the interests of the shareholders of each fund. In reaching its conclusions, the Board considered the following:

Nature, Quality and Extent of Investment Advisory Services


	The Board examined the nature, quality and extent of the services provided by FAF Advisors to each fund. The Board reviewed FAF Advisors’ key personnel who provide investment management services to each fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for each fund within the framework of that fund’s investment policies and restrictions, subject to review by the Board. The Board further considered that FAF Advisors’ duties with respect to each fund include (i) investment research and security selection, (ii) adherence to (and monitoring compliance with) the fund’s investment policies and restrictions and the Investment Company Act of 1940, and (iii) monitoring the performance of the various organizations providing services to the fund, including the fund’s distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the type of services customarily provided by investment advisors in the fund industry.

	The Board also considered compliance reports about FAF Advisors from the funds’ Chief Compliance Officer.

	Based on the foregoing, the Board concluded that each fund is likely to benefit from the nature, extent and quality of the services provided by FAF Advisors under the Agreement.

Investment Performance of the Funds


	The Board considered the performance of each fund, including how the fund performed versus the median performance of a group of comparable funds selected by an independent data service (the “performance universe”) and how the fund performed versus its benchmark index. The performance periods reviewed by the Board ended on January 31, 2006.

	Equity Index Fund. The Board noted that the objective of the fund is to provide investment results that correspond to the performance of the Standard & Poor’s 500 Composite Index. The Board considered that on a gross-of-fees basis, the fund

56 First American Funds Annual Report 2006


	achieved a correlation with its benchmark index over the past three years of over 99%, though it performed slightly below its benchmark index on a net-of-fee basis for the one-, three-, five- and ten-year periods. The fund’s performance was comparable to that of its performance universe for all periods, being above the performance universe for Class Y shares and generally slightly below the performance universe for Class A shares, which have higher expenses. The Board concluded that, in light of the fund’s close tracking of its benchmark index and competitive performance vis-à-vis its performance universe, it would be in the interest of the fund and its shareholders to renew the Agreement.

	Mid Cap Index Fund. The Board noted that the objective of the fund is to provide investment results that correspond to the performance of the Standard & Poor’s MidCap 400 Composite Index. The Board considered that on a gross-of-fees basis, the fund achieved a correlation with its benchmark index over the past three years of over 99%, while the fund performed slightly below its benchmark index on a net-of-fee basis for the one-, three-, and five-year periods. The fund’s performance was equal to or better than that of its performance universe for all periods, though FAF Advisors noted that the universe is only of limited comparative value because it includes funds that are actively managed or indexed to a different benchmark. The Board concluded that, in light of the fund’s close tracking of its benchmark index and competitive performance vis-à-vis its performance universe, it would be in the interest of the fund and its shareholders to renew the Agreement.

	Small Cap Index Fund. The Board noted that the objective of the fund is to provide investment results that correspond to the performance of the Russell 2000 Index. The Board considered that on a gross-of-fees basis, the fund achieved a correlation with its benchmark index over the past three years of over 99%, though it performed slightly below its benchmark index for the one- and three-year periods. For the five-year period, the fund performed competitively against its benchmark index. This performance period, however, included a period of time when the fund was benchmarked against a different index. Though the fund slightly underperformed its performance universe for the one- and three-year periods, the Board considered FAF Advisors’ assertion that only a small number of funds in the performance universe track the Russell 2000 Index. The Board concluded that, in light of the fund’s close tracking of its benchmark index and its competitive performance against the performance universe (even though it is not as meaningful for comparative purposes as the benchmark) it would be in the interest of the fund and its shareholders to renew the Agreement.

Costs of Services and Profits Realized by FAF Advisors


	The Board reviewed FAF Advisors’ estimated costs in serving as the funds’ investment manager, including the costs associated with the personnel and systems necessary to manage each fund. The Board also considered the reported profitability of FAF Advisors and its affiliates resulting from their relationship with each fund. For each fund, the Board reviewed fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other advisers. The Board found that while the management fees for FAF Advisors’ institutional separate accounts are lower than the funds’ management fees, the funds receive additional services from FAF Advisors that separate accounts do not receive.

	Using information provided by an independent data service, the Board also evaluated each fund’s advisory fee compared to the median advisory fee for other mutual funds of similar size, character and investment strategy, and each fund’s expense ratio after waivers compared to the median expense ratio, after waivers, of comparable funds. In connection with its review of fund fees and expenses, the Board asked FAF Advisors to articulate its pricing philosophy. FAF Advisors responded that it attempts generally to maintain each fund’s total operating expenses at a level that approximates its peer group median expense ratio. FAF Advisors noted that, in keeping with this pricing philosophy, it intended to waive its investment advisory fees to the extent necessary to maintain the funds’ total expense ratios at levels generally in line with their respective peer groups. Accordingly, FAF Advisors agreed to maintain expense caps of the funds at their current levels through at least June 30, 2007.

	Further detail considered by the Board regarding the advisory fees and expense ratios of each fund is set forth below:

	Equity Index Fund. The Board considered that the fund’s advisory fee, after waivers, and the expense ratio, after waivers, are lower than the peer group median. The Board concluded that the fund’s advisory fee and expense ratio are reasonable.

	Mid Cap Index Fund. The Board considered that the fund’s advisory fee, after waivers, is lower than the peer group median. In addition, the fund’s expense ratio, after waivers, is only slightly higher than the peer group median. The Board concluded that the fund’s advisory fee and expense ratio are reasonable.

	Small Cap Index Fund. The Board considered that the fund’s advisory fee, after waivers, is lower than the peer group median. The Board also noted that the fund’s total expense ratio, after waivers, is higher than the peer group median. The Board, however, considered that in 2005 the Board and FAF Advisors agreed to an expense cap that would have kept the

First American Funds Annual Report 2006 57

NOTICE TO SHAREHOLDERS October 31, 2006 (unaudited)


	expense ratio below the expense group median had the cap been in place for the fund’s entire fiscal year. The Board concluded that the fund’s advisory fee and expense ratio are reasonable.

Economies of Scale in Providing Investment Advisory Services

The Board considered whether each fund’s investment advisory fee reflects the potential for economies of scale for the benefit of fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although the funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The median total expense ratio of a fund’s peer group will reflect the effect of any breakpoints in the advisory fee schedules of the funds in that group. Therefore, by capping a fund’s total expense ratio at a level close to the median, fund shareholders should receive the benefit of any breakpoints in the comparable funds’ advisory fee schedules. In light of FAF Advisors’ commitment to keep total fund expenses competitive, the Board concluded that it would be reasonable and in the best interest of each fund and its shareholders to renew the Agreement.

Other Benefits to FAF Advisors


	In evaluating the benefits that accrue to FAF Advisors through its relationship with the funds, the Board noted that FAF Advisors and certain of its affiliates serve the funds in various capacities, including as advisor, administrator, sub-administrator, transfer agent, distributor, custodian and securities lending agent, and receive compensation from the funds in connection with providing services to the funds. The Board considered that each service provided to the funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law.

	After full consideration of these and other factors, the Board concluded that approval of the Agreement was in the best interest of each fund and its shareholders.

58 First American Funds Annual Report 2006

Directors and Officers of the Funds

Independent Directors

Other

Position(s)

Term of Office

Number of Portfolios

Directorships

Name, Address, and

Held

and Length of

Principal Occupation(s)

in Fund Complex

Held by

Year of Birth

with Funds

Time Served

During Past 5 Years

Overseen by Director

Director †

Benjamin R. Field III
P.O. Box 1329
Minneapolis, MN
55440-1329
(1938)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003

Retired; Senior Financial Advisor, Bemis Company, Inc. from May 2002 through June 2004; Senior Vice President, Chief Financial Officer & Treasurer, Bemis Company, Inc., through April 2002

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

Roger A. Gibson
P.O. Box 1329
Minneapolis, MN
55440-1329
(1946)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 1997

Director, Charterhouse Group, Inc., a private equity firm, since October 2005; Vice President and Chief Operating Officer, Cargo – United Airlines from July 2001 through July 2004

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

Victoria J. Herget
P.O. Box 1329
Minneapolis, MN
55440-1329
(1951)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003

Investment consultant and non-profit board member since 2001; Managing Director of Zurich Scudder Investments through 2001

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

John P. Kayser
P.O. Box 1329
Minneapolis, Mn
55440-1329
(1949)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 2006

Retired; Principal from 1983 to 2004 and Chief Financial Officer and Chief Administrative Officer from 1988 to 2002, William Blair & Company, LLC

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

Leonard W. Kedrowski
P.O. Box 1329
Minneapolis, MN
55440-1329
(1941)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since November 1993

Owner and President, Executive and Management Consulting, Inc., a management consulting firm; Board member, GC McGuiggan Corporation (dba Smyth Companies), a label printer; former Chief Executive Officer, Creative Promotions International, LLC, a promotional award programs and products company, through October 2003; Advisory Board member, Designer Doors, a manufacturer of designer doors, through 2002

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

Richard K. Riederer
P.O. Box 1329
Minneapolis, MN
55440-1329
(1944)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001

Owner and CEO, RKR Consultants, Inc. and non-profit board member since 2005; Director, President, and Chief Executive Officer, Weirton Steel Corporation through 2001

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

Cleveland Cliffs Inc (a producer of iron ore pellets)

First American Funds Annual Report 2006 59

NOTICE TO SHAREHOLDERS October 31, 2006 (unaudited)

Independent Directors — continued

Other

Position(s)

Term of Office

Number of Portfolios

Directorships

Name, Address, and

Held

and Length of

Principal Occupation(s)

in Fund Complex

Held by

Year of Birth

with Funds

Time Served

During Past 5 Years

Overseen by Director

Director †

Joseph D. Strauss
P.O. Box 1329
Minneapolis, MN
55440-1329
(1940)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since April 1991

Attorney at law; Owner and President, Strauss Management Company, a Minnesota holding company for various organizational management business ventures; Owner, Chairman and Chief Executive Officer, Community Resource Partnerships, Inc., a strategic planning, operations management, government relations, transportation planning and public relations organization; Owner, Chairman and Chief Executive Officer, Excensus^tm, LLC, a strategic demographic planning and application development firm since 2001

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

Virginia L. Stringer
P.O. Box 1329
Minneapolis, MN
55440-1329
(1944)

Chair; Director

Chair Term three years. Directors Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Chair of FAIF’s Board since September 1997; Director of FAIF since September 1987

Governance Consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc., a management consulting firm; Executive Consultant to State Farm Insurance Company through 2003

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

James M. Wade
P.O. Box 1329
Minneapolis, MN
55440-1329
(1943)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001

Owner and President, Jim Wade Homes, a homebuilding company

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None


†	Includes only directorships in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act or subject to the requirements of Section 15(d) of the Securities Exchange Act, or any company registered as an investment company under the Investment Company Act.

The Statement of Additional Information (SAI) includes additional information about fund directors and is available upon request without charge by calling 800-677-FUND or writing to First American Funds, P.O. Box 1330, Minneapolis, Minnesota, 55440-1330.

60 First American Funds Annual Report 2006


Officers

	Position(s)	Term of Office
Name, Address, and	Held	and Length of
Year of Birth	with Funds	Time Served	Principal Occupation(s) During Past 5 Years

Thomas S. Schreier, Jr. FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1962)*	President	Re-elected by the Board annually; President of FAIF since February 2001	Chief Executive Officer of FAF Advisors, Inc.

Mark S. Jordahl FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1960)*	Vice President – Investments	Re-elected by the Board annually; Vice President – Investments of FAIF since September 2001	Chief Investment Officer of FAF Advisors, Inc.

Jeffery M. Wilson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1956)*	Vice President – Administration	Re-elected by the Board annually; Vice President – Administration of FAIF since March 2000	Senior Vice President of FAF Advisors, Inc.

Charles D. Gariboldi, Jr. FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1959)*	Treasurer	Re-elected by the Board annually; Treasurer of FAIF since December 2004	Treasurer, FAF Advisors, Inc., since October 2004; prior thereto, Vice President of Investment Accounting and Fund Treasurer for Thrivent Financial for Lutherans

Jill M. Stevenson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1965)*	Assistant Treasurer	Re-elected by the Board annually; Assistant Treasurer of FAIF since September 2005	Assistant Treasurer, FAF Advisors, Inc., since September 2005; prior thereto, Director, Senior Project Manager, FAF Advisors, Inc. from May 2003 to September 2005; prior to that, Vice President, Director of Operations, Paladin Investment Associates, LLC

David H. Lui FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1960)*	Chief Compliance Officer	Re-elected by the Board annually; Chief Compliance Officer of FAIF since March 2005	Chief Compliance Officer, FAF Advisors, Inc., since March 2005; prior thereto, Chief Compliance Officer, Franklin Advisors, Inc. and Chief Compliance Counsel, Franklin Templeton Investments from March 2004 to March 2005; prior to that, Vice President, Charles Schwab & Co., Inc.

Jason K. Mitchell FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1976)*	Anti-Money Laundering Officer	Re-elected by the Board annually: Anti-Money Laundering Officer of FAIF since September 2006	Compliance Manager, FAF Advisors, Inc., since June 2006; prior to that, Compliance Analyst, FAF Advisors, Inc., from October 2004 to June 2006; prior to that, Senior Systems Helpdesk Analyst, Wachovia Retirement Services from November 2002 to October 2004; prior thereto, Senior Retirement Plan Specialist, PFPC, Inc.

Kathleen L. Prudhomme FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1953)*	Secretary	Re-elected by the Board annually; Secretary of FAIF since December 2004; prior thereto, Assistant Secretary of FAIF from September 1998 through December 2004	Deputy General Counsel, FAF Advisors, Inc., since November 2004; prior thereto, Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm

Brett L. Agnew FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1971)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004	Counsel, FAF Advisors, Inc., since August 2004; prior thereto, Senior Counsel, Thrivent Financial for Lutherans

James D. Alt Dorsey & Whitney LLP 50 South Sixth Street Suite 1500 Minneapolis, MN 55402 (1951)	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004; prior thereto, Secretary of FAIF since June 2002; Assistant Secretary of FAIF from September 1998 through June 2002	Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm

James R. Arnold U.S. Bancorp Fund Services, LLC 615 E. Michigan Street Milwaukee, WI 53202 (1957)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since June 2003	Vice President, U.S. Bancorp Fund Services, LLC since March 2002; prior thereto, Senior Administration Services Manager, UMB Fund Services, Inc.

First American Funds Annual Report 2006 61

NOTICE TO SHAREHOLDERS October 31, 2006 (unaudited)


Officers — continued

	Position(s)	Term of Office
Name, Address, and	Held	and Length of
Year of Birth	with Funds	Time Served	Principal Occupation(s) During Past 5 Years

Richard J. Ertel FAF Advisors, Inc. 800 Nicollet Mall, Minneapolis, MN 55042 (1967)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since June 2006 and from June 2003 through August 2004	Counsel, FAF Advisors, Inc., since May 2006; prior thereto, Counsel, Ameriprise Financial Services, Inc. from September 2004 to May 2006; prior to that, Counsel, FAF Advisors, Inc. from May 2003 to August 2004; prior to May 2003, Associate Counsel, Hartford Life and Accident Insurance Company

Douglas G. Hess U.S. Bancorp Fund Services, LLC 615 E. Michigan Street Milwaukee, WI 53202 (1967)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since September 2001	Vice President, U.S. Bancorp Fund Services, LLC since November 2002; prior thereto, Assistant Vice President, Fund Compliance Administrator, U.S. Bancorp Fund Services, LLC


*	Messrs. Schreier, Jordahl, Wilson, Gariboldi, Lui, Mitchell, Agnew and Ertel, Ms. Stevenson and Ms. Prudhomme are each officers and/or employees of FAF Advisors, Inc., which serves as investment adviser and administrator for FAIF. Messrs. Hess and Arnold are officers of U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which serves as Transfer Agent for FAIF.

62 First American Funds Annual Report 2006

(This page intentionally left blank.)

Board of Directors First American Investment Funds, Inc.


	Virginia Stringer

	Chairperson of First American Investment Funds, Inc.
	Governance Consultant; former Owner and President of Strategic Management Resources, Inc.

	Benjamin Field III

	Director of First American Investment Funds, Inc.
	Retired; former Senior Financial Advisor, Senior Vice President, Chief
	Financial Officer, and Treasurer of Bemis Company, Inc.

	Roger Gibson

	Director of First American Investment Funds, Inc.
	Director of Charterhouse Group, Inc.

	Victoria Herget

	Director of First American Investment Funds, Inc.
	Investment Consultant; former Managing Director of Zurich Scudder Investments

	John Kayser

	Director of First American Investment Funds, Inc.
	Retired; former Principal, Chief Financial Officer, and Chief Administrative
	Officer of William Blair & Company, LLC.

	Leonard Kedrowski

	Director of First American Investment Funds, Inc.
	Owner and President of Executive and Management Consulting, Inc.

	Richard Riederer

	Director of First American Investment Funds, Inc.
	Owner and CEO of RKR Consultants, Inc.

	Joseph Strauss

	Director of First American Investment Funds, Inc.
	Owner and President of Strauss Management Company

	James Wade

	Director of First American Investment Funds, Inc.
	Owner and President of Jim Wade Homes

	First American Investment Funds’ Board of Directors is comprised entirely of independent directors.

Direct fund correspondence to:

First American Funds

P.O. Box 1330

Minneapolis, MN 55440-1330


This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Further, there is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers only through the year ended October 31, 2006. The portfolio managers’ views are subject to change at any time based upon market or other conditions.

This report is for the information of shareholders of the First American Investment Funds, Inc. It may also be used as sales literature when preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, and charges and expenses of the funds. Read the prospectus carefully before investing.

The figures in this report represent past performance and do not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

INVESTMENT ADVISOR


	FAF Advisors, Inc.
	800 Nicollet Mall
	Minneapolis, Minnesota 55402

ADMINISTRATOR


	FAF Advisors, Inc.
	800 Nicollet Mall
	Minneapolis, Minnesota 55402

TRANSFER AGENT


	U.S. Bancorp Fund Services, LLC
	615 East Michigan Street
	Milwaukee, Wisconsin 53202

CUSTODIAN


	U.S. Bank National Association
	60 Livingston Avenue
	St. Paul, Minnesota 55101

DISTRIBUTOR


	Quasar Distributors, LLC
	615 East Michigan Street
	Milwaukee, Wisconsin 53202

INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM


	Ernst & Young LLP
	220 South Sixth Street
	Suite 1400
	Minneapolis, Minnesota 55402

COUNSEL


	Dorsey & Whitney LLP
	50 South Sixth Street
	Suite 1500
	Minneapolis, Minnesota 55402

First American Funds
P.O. Box 1330
Minneapolis, MN 55440-1330

In an attempt to reduce shareholder costs and help eliminate duplication, First American Funds will try to limit their mailing to one report for each address that lists one or more shareholders with the same last name. If you would like additional copies, please call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.

0308-06 12/2006 AR-INDEX

Table of Contents


Message to Shareholders		1
Report of Independent Registered Public Accounting Firm		41
Real Estate Securities Fund
	Schedule of Investments	42
	Statement of Assets and Liabilities	44
	Statement of Operations	45
	Statements of Changes in Net Assets	46
	Financial Highlights	48
International Fund
	Schedule of Investments	50
	Statement of Assets and Liabilities	52
	Statement of Operations	53
	Statements of Changes in Net Assets	54
	Financial Highlights	56
Small Cap Funds
	Schedule of Investments	58
	Statements of Assets and Liabilities	66
	Statements of Operations	67
	Statements of Changes in Net Assets	68
	Financial Highlights	70
Mid Cap Funds
	Schedule of Investments	78
	Statements of Assets and Liabilities	82
	Statements of Operations	83
	Statements of Changes in Net Assets	84
	Financial Highlights	86
Large Cap Funds
	Schedule of Investments	90
	Statements of Assets and Liabilities	93
	Statements of Operations	94
	Statements of Changes in Net Assets	96
	Financial Highlights	98
Growth & Income Funds
	Schedule of Investments	104
	Statements of Assets and Liabilities	112
	Statements of Operations	113
	Statements of Changes in Net Assets	114
	Financial Highlights	116
Notes to Financial Statements		120
Notice to Shareholders		136

Mutual fund investing involves risk; principal loss is possible.


	NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

Message to SHAREHOLDERS December 11, 2006


Dear Shareholders:

We invite you to take a few minutes to review the results of the fiscal year ended October 31, 2006.

Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.FUND.

We appreciate your investment with First American Funds and look forward to serving your financial needs in the future.

Sincerely,




Virginia L. Stringer Chairperson of the Board First American Investment Funds, Inc.		Thomas S. Schreier, Jr. President First American Investment Funds, Inc.

First American Funds Annual Report 2006 1

Real Estate Securities fund

Investment Objective: provide above-average current income and long-term capital appreciation

How did the fund perform for the fiscal year ended October 31, 2006?

The First American Real Estate Securities Fund (the “fund”), Class Y shares, returned 43.58% for the fiscal year ended October 31, 2006 (Class A shares returned 43.25% without taking the sales charge into account). By comparison, the fund’s benchmark, the MSCI U.S. REIT Index*, returned 37.78% for the same period.

What were the general economic and market conditions during the fiscal year?

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (“Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 earnings of S&P 500 companies advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006. Positive job growth was beneficial for the commercial real estate sector. Generally, the sector experienced improving occupancy levels and increased rental rates during this fiscal year.

What worked for the fund and why?

The fund benefited from strong individual stock selection. The portfolio had a bias toward growth and higher quality companies, and continues to invest on a relative-value basis (with a focus on individual stocks rather than economic or market cycles). An emphasis on coastal markets, which experienced better job growth and better supply/demand dynamics, proved beneficial. The fund’s best-performing sectors were office, hotels, healthcare, and diversified (i.e., companies owning more than one property type). The fund had positive returns across all property types except mortgage real estate investment trusts (“REITs”).

What did not work for the fund and why?

In what was another year of strong performance for the REIT sector, even the fund’s average cash position of 1.32% was detrimental to the fund’s performance. The mortgage REITs sector underperformed in the strong momentum market REITS experienced during the fiscal year.

What strategic moves were made by the fund and why?

The fund’s emphasis on coastal markets was a successful strategy. The fund invests on a relative-value basis. One result of this is a fairly balanced position across the various property types. The fund was overweight in the industrial sector, given employment and gross domestic product growth and favorable supply/demand characteristics in that sector.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


Simon Property Group	6.1	%
Prologis	5.7
Boston Properties	4.3
Avalonbay Communities	3.9
Vornado Realty Trust	3.8
Equity Residential Properties Trust	3.8
First American Prime Obligations Fund, Class Z	3.6
Archstone-Smith Trust	3.6
Regency Centers	3.4
Host Marriott	3.4

Sector Allocation as of October 31, 2006¹ (% of net assets)


Office	24.2	%
Apartments	18.0
Malls	11.3
Community Centers	10.8
Industrials	9.6
Hotels	7.8
Healthcare	6.3
Diversified	5.5
Self Storage	2.6
Net Lease	0.8
Manufactured Homes	0.6
Multifamily	0.4
Real Estate Service Provider	0.3
Private Real Estate Companies	0.0
Short-Term Investment	3.6
Other Assets and Liabilities, Net²	(1.8	)

	100.0	%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

2 First American Funds Annual Report 2006

Real Estate Securities fund continued

Annual Performance¹


	October 31, 2006										September 30, 2006*

							Since Inception										Since Inception

	1 year		5 years		10 years		2/1/2000		9/24/2001		1 year		5 years		10 years		2/1/2000		9/24/2001
Average annual return with sales charge (POP)
Class A		35.35%		25.12%		16.21%		—		—		24.92%		22.80%		15.79%		—		—

Class B		37.17%		25.45%		16.01%		—		—		26.24%		23.09%		15.59%		—		—

Class C		41.16%		25.60%		—		23.25%		—		30.21%		23.26%		—		22.45%		—
Average annual return without sales charge (NAV)
Class A		43.25%		26.55%		16.87%		—		—		32.20%		24.19%		16.45%		—		—

Class B		42.17%		25.61%		16.01%		—		—		31.24%		23.26%		15.59%		—		—

Class C		42.16%		25.60%		—		23.25%		—		31.21%		23.26%		—		22.45%		—

Class R		42.87%		26.39%		—		—		26.17%		31.93%		24.03%		—		—		25.12%

Class Y		43.58%		26.87%		17.53%		—		—		32.57%		24.50%		16.75%		—		—

MSCI U.S. REIT Index²		37.78%		24.56%		15.82%		22.38%		24.52%		26.55%		22.22%		15.42%		21.58%		23.48%

Value of $10,000 Investment^1,3 as of October 31, 2006



Real Estate Securities Fund, Class A (NAV)	$	48,791

Real Estate Securities Fund, Class A (POP)	$	46,110

Real Estate Securities Fund, Class Y	$	50,053

MSCI U.S. REIT Index²	$	44,593


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 10/31/2006) as compared to the MSCI U.S. REIT Index².


*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.

Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. In certain years and/or for certain classes, performance reflects voluntary fee waivers in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.


	Sector funds such as the First American Real Estate Securities Fund are more vulnerable to price fluctuation as a result of events that may affect the industry in which they focus than are funds that invest in multiple industries. Share prices of sector funds also will fluctuate with changing market conditions, as will share prices of other stock funds. Sector funds should not be treated as a core investment; rather, their role is to round out the growth portion of a well-diversified investment portfolio.

	Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

	Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.


²	An unmanaged index of the most actively traded real estate investment trusts.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

First American Funds Annual Report 2006 3

Real Estate Securities fund continued

Expense Example

As a shareholder of the Real Estate Securities Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	1,210.30	$	6.80

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.06	$	6.21

Class B Actual²	$	1,000.00	$	1,205.60	$	10.95

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.27	$	10.01

Class C Actual²	$	1,000.00	$	1,205.20	$	10.95

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.27	$	10.01

Class R Actual²	$	1,000.00	$	1,208.60	$	8.24

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.74	$	7.53

Class Y Actual²	$	1,000.00	$	1,211.60	$	5.41

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.32	$	4.94


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.22%, 1.97%, 1.97%, 1.48%, and 0.97% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of 21.03%, 20.56%, 20.52%, 20.86%, and 21.16% for Class A, Class B, Class C, Class R, and Class Y, respectively.

4 First American Funds Annual Report 2006

International fund

Investment Objective: long-term growth of capital

How did the fund perform for the fiscal year ended October 31, 2006?

The First American International Fund (the “fund”), Class Y shares, returned 24.81% for the fiscal year ended October 31, 2006 (Class A shares returned 24.50% without taking the sales charge into account). By comparison, the fund’s benchmark, the MSCI EAFE Index*, returned 28.04% for the same period.

What were the general economic and market conditions during the fiscal year?

Global equities rose robustly during the period, with international markets outperforming the U.S. market. Corporate earnings globally have been impressive as the fall in energy prices has helped to ease the future operating burden on global businesses and helped tame the threat of inflation. The biggest gains were in Europe, aided by strong economic data and attractive valuations. Lower-quality and value companies continued to outpace ones characterized by higher quality and growth.

What worked for the fund and why?

Stock selection has been the primary source of performance. The portfolio benefited from holdings in the United Kingdom (U.K.), Pacific Rim countries (excluding Japan), and emerging markets. From a sector perspective, energy, consumer discretionary, and consumer staples added the most value. In terms of specific stocks, British Land, the U.K. real estate company, contributed during the fiscal year as the U.K. real estate market continued to drive company profits. Office rents in 2006 rose at the fastest pace since 2001, especially in London, where most of British Land’s office properties are located.

What did not work for the fund and why?

While the portfolio achieved a very attractive absolute return, it still lagged the benchmark. From a regional perspective, our holdings in Japan turned in a disappointing performance, as did those in Europe (apart from the United Kingdom), despite the strong overall performance of the European markets. At a sector level, our stock selection within industrials, and our underweight in utilities detracted from performance the most. Within Japan, Credit Saison, a financial services company, held back returns on the fear that the ruling party was going to cap rates such companies can charge customers.

What strategic moves were made by the fund and why?

The fund seeks to identify large-cap, high-quality companies with robust growth profiles. We define quality companies as those with high returns on equity**, sustainable earnings, and healthy balance sheets. We remained focused on large-cap securities reflecting the relative attractiveness of their valuations, and continue to view many emerging markets opportunities as fully valued. Convinced that the Japanese domestic recovery was underway, we moved closer to the Japanese consumer through investments in financials and industrials. With energy prices at lower levels, our concerns about inflation remain benign, creating a strong case for investing in equities. Global growth remains robust, pricing pressures are peaking, interest rates in the United States appear to have stabilized, and the profits cycle looks more resilient than many have feared. While European and Japanese monetary conditions may continue to tighten, it is clear that with real interest rates below historical standards global liquidity conditions remain supportive of future growth.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
**	Return on equity is an indicator of corporate profitability, widely used by investors as a measure of how a company is using its money.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


Total			4.0%
HSBC			3.4
Eni			3.0
UBS			2.5
GlaxoSmithKline			2.4
Tesco			2.4
Vodafone			2.1
Barclays			2.0
Novartis			1.9
Mitsubishi UFJ Financial Group			1.9

Country Allocation as of October 31, 2006¹ (% of net assets)


Japan	23.2	%
Great Britain	20.7
France	13.4
Switzerland	11.3
Italy	5.6
Hong Kong	4.6
Germany	4.3
Netherlands	3.9
Spain	2.1
Belgium	1.9
Brazil	1.8
Australia	1.7
Sweden	1.4
Finland	1.3
South Korea	0.8
Ireland	0.7
Mexico	0.3
Short-Term Investment	1.1
Other Assets & Liabilities, Net²	(0.1	)

	100.0	%


¹	Fund holdings and country allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

First American Funds Annual Report 2006 5

International fund

Annual Performance¹


	October 31, 2006								September 30, 2006*

							Since Inception								Since Inception

	1 year		5 years		10 years		9/24/2001		1 year		5 years		10 years		9/24/2001
Average annual return with sales charge (POP)
Class A		17.64%		9.25%		6.44%		—		11.17%		8.92%		5.86%		—

Class B		18.50%		9.36%		6.25%		—		11.75%		9.07%		5.68%		—

Class C		22.53%		9.63%		—		11.03%		15.73%		9.32%		—		10.42%
Average annual return without sales charge (NAV)
Class A		24.50%		10.48%		7.05%		—		17.62%		10.16%		6.46%		—

Class B		23.50%		9.64%		6.25%		—		16.75%		9.35%		5.68%		—

Class C		23.53%		9.63%		—		11.03%		16.73%		9.32%		—		10.42%

Class R		24.04%		10.15%		6.89%		—		17.26%		9.84%		6.30%		—

Class Y		24.81%		10.75%		7.34%		—		17.91%		10.44%		6.75%		—

MSCI EAFE Index²		28.04%		15.00%		7.70%		16.38%		19.65%		14.70%		7.18%		15.79%

Value of $10,000 Investment^1,3 as of October 31, 2006



International Fund, Class A (NAV)	$	19,423

International Fund, Class A (POP)	$	18,352

International Fund, Class Y	$	19,956

MSCI EAFE Index²	$	20,780


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 10/31/2006) as compared to the MSCI EAFE Index².


*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.


	International investing involves risks not typically associated with domestic investing, including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, foreign government regulations, currency exchange rates, limited liquidity, and volatile prices.

	Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

	Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

	Effective December 8, 2004, JPMorgan was named the fund’s subadvisor and began managing the fund’s assets. On September 24, 2001, the First American International Fund merged with Firstar International Growth Fund and Firstar International Value Fund, both subadvised by Clay Finlay Inc. Performance history prior to September 24, 2001 represents that of the Firstar International Growth Fund.


²	An unmanaged index of common stocks in Europe, Australasia, and the Far East.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

6 First American Funds Annual Report 2006

International fund

Expense Example

As a shareholder of the International Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual^2,3	$	1,000.00	$	1,019.30	$	7.63

Class A Hypothetical (5% return before expenses)³	$	1,000.00	$	1,017.64	$	7.63

Class B Actual^2,3	$	1,000.00	$	1,015.60	$	11.43

Class B Hypothetical (5% return before expenses)³	$	1,000.00	$	1,013.86	$	11.42

Class C Actual^2,3	$	1,000.00	$	1,015.10	$	11.43

Class C Hypothetical (5% return before expenses)³	$	1,000.00	$	1,013.86	$	11.42

Class R Actual^2,3	$	1,000.00	$	1,017.90	$	8.90

Class R Hypothetical (5% return before expenses)³	$	1,000.00	$	1,016.38	$	8.89

Class Y Actual^2,3	$	1,000.00	$	1,020.40	$	6.37

Class Y Hypothetical (5% return before expenses)³	$	1,000.00	$	1,018.90	$	6.36


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.50%, 2.25%, 2.25%, 1.75%, and 1.25% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of 1.93%, 1.56%, 1.51%, 1.79%, and 2.04% for Class A, Class B, Class C, Class R, and Class Y, respectively.

³	Prior to July 1, 2006, the contractual limitation on annual expenses was 1.52%, 2.27%, 2.27%, 1.77%, and 1.27% for Class A, Class B, Class C, Class R, and Class Y, respectively. Effective July 1, 2006, the contractual limitation on annual expenses for Class A, Class B, Class C, Class R, and Class Y has been decreased to 1.49%, 2.24%, 2.24%, 1.74%, and 1.24%, respectively. If this new limitation had been in place during the entire period, actual and hypothetical ending account balances would have been approximately $1,019.35 and $1,017.69 for Class A, $1,015.65 and $1,013.91 for Class B, $1,015.15 and $1,013.91 for Class C, $1,017.95 and $1,016.43 for Class R, and $1,020.45 and $1,018.95 for Class Y. Actual and hypothetical expenses paid during the period would have been approximately $7.58 and $7.58 for Class A, $11.38 and $11.37 for Class B, $11.38 and $11.37 for Class C, $8.85 and $8.84 for Class R, and $6.31 and $6.31 for Class Y.

First American Funds Annual Report 2006 7

Small Cap Growth Opportunities fund

Investment Objective: growth of capital

How did the fund perform for the fiscal year ended October 31, 2006?

The First American Small Cap Growth Opportunities Fund (the “fund”), Class Y shares, returned 10.16% for the fiscal year ended October 31, 2006 (Class A shares returned 9.91% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Growth Index*, returned 17.07% for the same period.

What were the general economic and market conditions during the fiscal year?

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (“Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 earnings of S&P 500 companies advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006.

What worked for the fund and why?

Technology was the largest positive contributor to the fund’s performance, due both to stock selection and an overweight position in the sector (it is the largest overweight in the portfolio). Among our individual stock selections, Polycom, Inc., maker of videoconferencing and speakerphone systems, generated the largest positive contribution to the fund. Kanbay International, an India-based IT offshoring company, executed its business plan of incorporating the high-end consulting firm Adjoined Consulting, Inc., and ultimately chose to sell the firm to Cap Gemini at a significant premium in October, contributing positively to the fund’s performance. Finally, slot-machine maker WMS Industries, Inc. performed well with new states allowing gaming, thus increasing demand for their product.

What did not work for the fund and why?

During the first half of calendar 2006 the fund performed poorly. Upon detailed review, we concluded that the holdings which detracted the most from performance generally had smaller capitalization levels and relatively low trading volumes. The energy sector was the poorest performer on a relative basis, mostly due to adverse stock selection, as most of our picks in the sector shared the characteristics outlined above. The shares of Ember Resources Company, a natural gas and oil explorer and producer, suffered as natural gas prices fell throughout the fiscal year. In the consumer discretionary sector, weaker results from Cosí, a restaurant chain, and from Kuhlman, a retailer, also detracted from the fund’s performance.

What strategic moves were made by the fund and why?

As a result of our midyear analysis of underperforming holdings, we refined our investment process to address the disappointing performance in the first half of calendar 2006. In particular, we have decreased our exposure to smaller capitalization companies and stocks with lower trading volumes. Since making these changes in June, the fund’s performance, relative to the performance of the Russell 2000 Growth Index, has improved.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


First American Prime Obligations Fund, Class Z	2.6	%
Emulex	2.6
Kanbay International	2.0
Conn’s	1.8
PMC-Sierra	1.7
Pediatrix Medical Group	1.7
Ixia	1.7
Lawson Software	1.6
AMETEK	1.6
Texas Roadhouse, Class A	1.6

Sector Allocation as of October 31, 2006¹ (% of net assets)


Information Technology	30.4	%
Healthcare	18.9
Consumer Discretionary	15.0
Industrials	14.9
Financials	10.7
Energy	7.7
Warrants	0.1
Short-Term Investment	2.6
Other Assets and Liabilities, Net²	(0.3	)

	100.0	%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

8 First American Funds Annual Report 2006

Small Cap Growth Opportunities fund continued

Annual Performance¹


	October 31, 2006												September 30, 2006*

							Since Inception												Since Inception

	1 year		5 years		10 years		3/1/1999		12/11/2000		9/24/2001		1 year		5 years		10 years		3/1/1999		12/11/2000		9/24/2001
Average annual return with sales charge (POP)
Class A		3.85%		7.76%		15.52%		—		—		—		(6.64)%		8.49%		14.74%		—		—		—

Class B		4.64%		7.88%		—		18.78%		—		—		(5.89)%		8.62%		—		18.00%		—		—

Class C		8.23%		8.19%		—		—		—		10.85%		(2.78)%		8.91%		—		—		—		9.61%
Average annual return without sales charge (NAV)
Class A		9.91%		8.99%		16.18%		—		—		—		(1.22)%		9.72%		15.39%		—		—		—

Class B		9.03%		8.17%		—		18.78%		—		—		(1.94)%		8.91%		—		18.00%		—		—

Class C		9.11%		8.19%		—		—		—		10.85%		(1.98)%		8.91%		—		—		—		9.61%

Class R		9.62%		8.89%		—		—		6.23%		—		(1.51)%		9.63%		—		—		5.13%		—

Class Y		10.16%		9.24%		16.47%		—		—		—		(1.01)%		9.98%		15.68%		—		—		—

Russell 2000 Growth Index²		17.07%		9.51%		5.15%		4.89%		2.65%		11.73%		5.88%		10.15%		4.03%		4.08%		1.59%		10.55%

Value of $10,000 Investment^1,3 as of October 31, 2006



Small Cap Growth Opportunities Fund, Class A (NAV)	$	44,800

Small Cap Growth Opportunities Fund, Class A (POP)	$	42,337

Small Cap Growth Opportunities Fund, Class Y	$	45,941

Russell 2000 Growth Index²	$	16,518


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/31/1996 to 10/31/2006) as compared to the Russell 2000 Growth Index².


	The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.


	Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future.

	Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

	Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

	On December 12, 2002 the fund changed its main investment strategy such that it was permitted to invest in securities of companies with market capitalizations within the range of companies in the Russell 2000 index. Previously, the fund invested primarily in companies with market capitalizations below $500 million at the time of purchase.

	On September 24, 2001, the First American Small Cap Growth Opportunities Fund became the successor by merger to the Firstar MicroCap Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar MicroCap Fund.

	The First American Small Cap Growth Opportunities Fund’s 1999 returns were higher due in substantial part to its strategy of investing in IPOs in a period favorable for IPO investing. Of course, such favorable returns involve accepting the risk of volatility, and there is no assurance that the fund’s future investment in IPOs will have the same effect on performance as it did in 1999.


²	An unmanaged index that measures the performance of those companies in the Russell 2000 Index (a small-cap index) with higher price-to-book ratios and higher forecasted growth values.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

First American Funds Annual Report 2006 9

Small Cap Growth Opportunities fund continued

Expense Example

As a shareholder of the Small Cap Growth Opportunities Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	933.50	$	7.16

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.80	$	7.48

Class B Actual²	$	1,000.00	$	929.60	$	10.80

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.01	$	11.27

Class C Actual²	$	1,000.00	$	930.00	$	10.80

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.01	$	11.27

Class R Actual²	$	1,000.00	$	932.30	$	8.38

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.53	$	8.74

Class Y Actual²	$	1,000.00	$	934.80	$	5.95

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.06	$	6.21


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.47%, 2.22%, 2.22%, 1.72%, and 1.22% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of -6.65%, -7.04%, -7.00%, -6.77%, and -6.52% for Class A, Class B, Class C, Class R, and Class Y, respectively.

10 First American Funds Annual Report 2006

Small Cap Select fund

Investment Objective: capital appreciation

How did the fund perform for the fiscal year ended October 31, 2006?

The First American Small Cap Select Fund (the “fund”), Class Y shares, returned 22.81% for the fiscal year ended October 31, 2006 (Class A shares returned 22.46% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Index*, returned 19.98% for the same period.

What were the general economic and market conditions during the fiscal year?

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (“Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 earnings of S&P 500 companies advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006.

What worked for the fund and why?

Good stock selection was the driver of fund performance relative to its index for the fiscal year. The consumer sector proved to be our top-performing area, where two holdings – hotel chain LaQuinta and pet food supplier PETCO – were both acquired by private equity, right on our price targets. Clothing retailers The Children’s Place and Christopher & Banks were in the midst of successfully executed turnarounds, which had a positive effect on their stock. In software, Digital River, with a lock on online software distribution business, performed very well. Another standout was M-systems, a manufacturer of flash memory cards, because of its acquisition by Sandisk. Favorable aluminum pricing boosted the results of Century Aluminum in the materials sector, while in industrials Manitowoc and Terex, manufacturers of construction equipment, benefited from the strong demand for their products in the commercial construction market. In financials, SL Green Realty, a real estate investment trust (“REIT”) specializing in downtown New York City office property, owed its positive performance to the very strong market, with higher rents and lower vacancy rates.

What did not work for the fund and why?

Healthcare proved to be the toughest sector for the fund during this fiscal period, largely because of adverse stock selection in the biotechnology area. The biggest disappointment came from Neurocrine Biosciences, whose shares suffered considerably after an FDA approval for the company’s new sleep drug was delayed.

What strategic moves were made by the fund and why?

Relative to the index, the fund keeps its sector weights fairly neutral, allowing stock selection to drive portfolio performance. We trimmed our holdings in SL Green Realty, as the stock reached our price target. For the same reason we considerably reduced our large overweight in industrials. In the ailing healthcare sector, we eliminated our holdings in Sierra Health Inc., a provider of healthcare services in the Las Vegas market. We continued to execute our strategy of owning companies that show good and/or improving fundamentals, reasonable valuations, and identifiable catalysts that are likely to outperform within their respective sectors.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


First American Prime Obligations Fund, Class Z	3.2	%
Nautilus Group	2.1
Pediatrix Medical Group	2.0
Entegris	1.9
BISYS Group	1.8
Nutri/ System	1.5
Affiliated Managers Group	1.5
AMETEK	1.5
Magellan Health Services	1.4
Lennox International	1.4

Sector Allocation as of October 31, 2006¹ (% of net assets)


Information Technology	19.6	%
Financials	18.7
Consumer Discretionary	15.6
Industrials	15.1
Healthcare	13.9
Energy	5.4
Consumer Staples	3.5
Materials	3.3
Telecommunication Services	0.7
Utilities	0.5
Short-Term Investment	3.2
Other Assets & Liabilities, Net²	0.5

	100.0	%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

First American Funds Annual Report 2006 11

Small Cap Select fund continued

Annual Performance¹


	October 31, 2006								September 30, 2006*

							Since Inception								Since Inception

	1 year		5 years		10 years		9/24/2001		1 year		5 years		10 years		9/24/2001
Average annual return with sales charge (POP)
Class A		15.74%		13.63%		11.18%		—		7.99%		14.70%		10.61%		—

Class B		16.85%		13.84%		11.02%		—		9.05%		14.93%		10.45%		—

Class C		20.67%		14.09%		—		16.18%		12.49%		15.17%		—		15.61%
Average annual return without sales charge (NAV)
Class A		22.46%		14.92%		11.81%		—		14.27%		16.01%		11.24%		—

Class B		21.59%		14.08%		11.02%		—		13.48%		15.15%		10.45%		—

Class C		21.64%		14.09%		—		16.18%		13.40%		15.17%		—		15.61%

Class R		22.23%		14.82%		11.79%		—		13.99%		15.90%		11.21%		—

Class Y		22.81%		15.21%		12.13%		—		14.58%		16.32%		11.55%		—

Russell 2000 Index ²		19.98%		13.76%		9.84%		15.38%		9.92%		13.78%		9.06%		14.38%

Value of $10,000 Investment^1,3 as of October 31, 2006



Small Cap Select Fund, Class A (NAV)					$29,697

Small Cap Select Fund, Class A (POP)					$28,063

Small Cap Select Fund, Class Y					$30,512

Russell 2000 Index²					$24,558


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 11/30/1996 to 10/31/2006) as compared to the Russell 2000 Index².


*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.


	Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future.

	Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

	Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

	On September 24, 2001, the First American Small Cap Select Fund became the successor by merger to the Firstar SmallCap Core Equity Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar SmallCap Core Equity Fund. The Firstar SmallCap Core Equity Fund was organized on November 27, 2000, and prior to that, was a separate series of Mercantile Funds, Inc.


²	An unmanaged small-cap index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

12 First American Funds Annual Report 2006

Small Cap Select fund continued

Expense Example

As a shareholder of the Small Cap Select Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	999.30	$	6.25

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.95	$	6.31

Class B Actual²	$	1,000.00	$	996.10	$	10.01

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.17	$	10.11

Class C Actual²	$	1,000.00	$	996.50	$	10.01

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.17	$	10.11

Class R Actual²	$	1,000.00	$	998.70	$	7.51

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.69	$	7.58

Class Y Actual²	$	1,000.00	$	1,001.20	$	4.99

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.21	$	5.04


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.24%, 1.99%, 1.99%, 1.49%, and 0.99% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of -0.07%, -0.39%, -0.35%, -0.13%, and 0.12% for Class A, Class B, Class C, Class R, and Class Y, respectively.

First American Funds Annual Report 2006 13

Small Cap Value fund

Investment Objective: capital appreciation

How did the Fund perform for the fiscal year ended October 31, 2006?

The First American Small Cap Value Fund (the “fund”), Class Y shares, returned 21.01% for the fiscal year ended October 31, 2006 (Class A shares returned 20.78% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Value Index*, returned 22.90% for the same period.

What were the general economic and market conditions during the fiscal year?

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (“Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 earnings of S&P 500 companies advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006.

What worked for the fund and why?

Good stock selection was key to the fund’s performance during this fiscal year. The consumer area proved to be beneficial as good stock selection – with standouts including Interface (commercial carpet and tile products) and clothing retailers Aéropostale and Men’s Warehouse – helped relative performance results. The fund held five stocks of companies that were acquired at strong premiums during the fiscal year: CNS, Inc. (health and personal care products), Hughes Supply (wholesale materials distributor), PETCO (pet food supplier), LaQuinta (hotel chain), and Thomas Nelson, Inc. (book publisher). In addition, two strong performers in the technology sector contributed favorably to the fund’s results: Polycom, Inc. (videoconferencing and speakerphone systems) and Xyratex (storage device and hard disk drive manufacturer).

What did not work for the fund and why?

Holding a larger portion of lower-volatility stocks at a time when the market proved quite favorable for more volatile, momentum-driven stocks detracted from relative performance results. For example, highly leveraged telecommunications stocks which were not in the fund’s portfolio experienced strong price performance despite their unattractive valuations. On a one-off basis, the Bisys Group, Inc., a provider of business process outsourcing solutions and a top-10 holding, experienced a significant decline in stock price following a voluntary CEO change and a subsequent delay in releasing financial statements.

What strategic moves were made by the fund and why?

We maintained an overweight in healthcare, believing that demographics, specifically the increasing pool of retiring baby boomers and their attendant healthcare needs, and valuations in the sector provide opportunities. Within industrials, we reduced our exposure to residential building stocks given the rapidly cooling residential housing market, but we remained focused on office and infrastructure segments of the sector. We continue to be underweight in financials due to concerns regarding the impact of a flat-to-inverted bond yield curve on bottom line results and valuation opportunities. The fund team remains focused on free cash flow** metrics coupled with good risk/reward tradeoffs.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
**	Free cash flow is a measure of financial performance calculated as operating cash flow minus capital expenditures.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


First American Prime Obligations Fund, Class Z	4.4	%
Interface, Class A	1.5
Newcastle Investment	1.4
Perrigo	1.4
BISYS Group	1.4
Texas Industries	1.3
Aéropostale	1.3
First Midwest Bancorp	1.3
Varian	1.3
El Paso Electric	1.3

Sector Allocation as of October 31, 2006¹ (% of net assets)


Financials	32.2	%
Consumer Discretionary	13.8
Information Technology	13.1
Industrials	12.9
Healthcare	7.1
Materials	5.5
Energy	4.9
Utilities	4.5
Consumer Staples	2.0
Telecommunication Services	0.9
Short-Term Investment	4.4
Other Assets and Liabilities, Net²	(1.3	)

	100.0	%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

14 First American Funds Annual Report 2006

Small Cap Value fund continued

Annual Performance¹


	October 31, 2006												September 30, 2006*

							Since Inception												Since Inception

	1 year		5 years		10 years		11/24/1997		2/1/1999		9/24/2001		1 year		5 years		10 years		11/24/1997		2/1/1999		9/24/2001
Average annual return with sales charge (POP)
Class A		14.14%		13.96%		10.24%		—		—		—		6.14%		13.55%		9.86%		—		—		—

Class B		15.29%		14.17%		—		8.16%		—		—		7.20%		13.74%		—		7.69%		—		—

Class C		18.97%		14.40%		—		—		11.68%		—		10.59%		13.98%		—		—		11.16%		—
Average annual return without sales charge (NAV)
Class A		20.78%		15.25%		10.87%		—		—		—		12.34%		14.84%		10.49%		—		—		—

Class B		19.88%		14.41%		—		8.16%		—		—		11.46%		13.97%		—		7.69%		—		—

Class C		19.89%		14.40%		—		—		11.68%		—		11.45%		13.98%		—		—		11.16%		—

Class R		20.44%		15.12%		—		—		—		16.40%		12.05%		14.73%		—		—		—		15.66%

Class Y		21.01%		15.54%		11.13%		—		—		—		12.64%		15.15%		10.76%		—		—		—

Russell 2000 Value Index²		22.90%		17.52%		13.81%		11.52%		14.20%		18.57%		14.01%		16.96%		13.38%		11.01%		13.63%		17.74%

Value of $10,000 Investment^1,3 as of October 31, 2006



Small Cap Value Fund, Class A (NAV)	$	28,382

Small Cap Value Fund, Class A (POP)	$	26,823

Small Cap Value Fund, Class Y	$	29,074

Russell 2000 Value Index²	$	36,889


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 10/31/2006) as compared to the Russell 2000 Value Index².


*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.


	Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future. Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

	Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.


²	An unmanaged index that measures the performance of those companies in the Russell 2000 Index (a small-cap index) with lower price-to-book ratios and lower forecasted growth values.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

First American Funds Annual Report 2006 15

Small Cap Value fund continued

Expense Example

As a shareholder of the Small Cap Value Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	1,023.30	$	6.48

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.80	$	6.46

Class B Actual²	$	1,000.00	$	1,019.80	$	10.28

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.02	$	10.26

Class C Actual²	$	1,000.00	$	1,019.40	$	10.28

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.02	$	10.26

Class R Actual²	$	1,000.00	$	1,022.10	$	7.75

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.54	$	7.73

Class Y Actual²	$	1,000.00	$	1,024.10	$	5.20

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.06	$	5.19


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.27%, 2.02%, 2.02%, 1.52%, and 1.02% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of 2.33%, 1.98%, 1.94%, 2.21%, and 2.41% for Class A, Class B, Class C, Class R, and Class Y, respectively.

16 First American Funds Annual Report 2006

Small-Mid Cap Core fund

Investment Objective: long-term growth of capital

How did the fund perform for the fiscal year ended October 31, 2006?

The First American Small-Mid Cap Core Fund (the “fund”), Class Y shares, returned 19.30% for the fiscal year ended October 31, 2006 (Class A shares returned 19.18% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2500 Index*, returned 17.69% for the same period.

What were the general economic and market conditions during the fiscal year?

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (“Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 earnings of S&P 500 companies advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006.

What worked for the fund and why?

Good stock selection led the fund to outperform the benchmark. Our picks in the materials sector proved particularly successful, with Steel Dynamics and Century Aluminum benefiting from high demand and pricing power generated by robust commercial construction activity. In technology, Polycom (videoconferencing and speakerphone systems) and Amphenol (connectors) enjoyed continued strong performance, while Micromuse, Inc., a provider of service and business assurance software, was acquired at strong premiums by IBM during this fiscal period. An overweight in retail, coupled with good stock selection, also added value; a standout in this space was clothing retailer Christopher & Banks, which benefited from a well-executed turnaround strategy. In financials, SL Green Realty, a real estate investment trust specializing in downtown New York City office property, owed its positive performance to the very strong market, with higher rents and lower vacancy rates. Biotech company Immucor, Inc. posted outstanding results due to its blood diagnostic systems receiving FDA approval during the fiscal period. In the energy sector, Veritas DGC, Inc., provider of integrated geophysical services to the petroleum industry, was another standout.

What did not work for the fund and why?

The largest detractor from performance was WCI Communities, Inc., a Florida builder of master-planned communities, whose performance suffered as the market became oversaturated with inventory. The fund’s overweight in healthcare services, coupled with adverse stock selection, also had a negative impact on performance.

What strategic moves were made by the fund and why?

We reduced our exposure to smaller-capitalization stocks while increasing our positions in three stocks we feel confident about: Nutri/System, Inc., provider of weight-management programs; The PMI Group, Inc., a mortgage insurer; and Emulex Corp., maker of networking equipment. The fund’s sector allocations remained largely unchanged, though we slightly trimmed our holdings in retail and steel, the latter in response to the decline in the price of steel.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


Emulex	2.5	%
Nutri/ System	2.1
Pediatrix Medical Group	1.9
Interface, Class A	1.9
Labor Ready	1.8
Immucor	1.8
Toro	1.8
Commercial Metals	1.8
W.R. Berkley	1.8
Newcastle Investment	1.8

Sector Allocation as of October 31, 2006¹ (% of net assets)


Financials	21.1	%
Consumer Discretionary	16.9
Information Technology	16.7
Industrials	16.6
Healthcare	10.4
Energy	6.2
Materials	5.7
Utilities	3.0
Consumer Staples	2.2
Telecommunication Services	0.7
Short-Term Investment	0.4
Other Assets & Liabilities, Net²	0.1

	100.0	%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

First American Funds Annual Report 2006 17

Small-Mid Cap Core fund continued

Annual Performance¹


	October 31, 2006								September 30, 2006*

							Since Inception								Since Inception

	1 year		5 years		10 years		2/1/2000		1 year		5 years		10 years		2/1/2000
Average annual return with sales charge (POP)
Class A		12.59%		3.39%		0.02%		—		4.32%		6.38%		(0.84)%		—

Class B		13.13%		3.43%		(0.17)%		—		4.44%		6.44%		(1.02)%		—

Class C		17.21%		3.78%		—		(19.75)%		8.41%		6.79%		—		(20.48)%

Average annual return without sales charge (NAV)
Class A		19.18%		4.58%		0.59%		—		10.35%		7.59%		(0.28)%		—

Class B		18.13%		3.77%		(0.17)%		—		9.44%		6.75%		(1.02)%		—

Class C		18.21%		3.78%		—		(19.75)%		9.41%		6.79%		—		(20.48)%

Class Y		19.30%		4.83%		0.86%		—		10.54%		7.88%		0.00%		—

Russell 2500 Index ²		17.69%		14.36%		11.53%		9.27%		8.80%		14.44%		10.93%		8.63%

Value of $10,000 Investment^1,3 as of October 31, 2006



Small-Mid Cap Core Fund, Class A (NAV)	$	10,149

Small-Mid Cap Core Fund, Class A (POP)	$	9,591

Small-Mid Cap Core Fund, Class Y	$	10,429

Russell 2500 Index²	$	29,585


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 10/31/2006) as compared to the Russell 2500 Index².


	The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.

Effective October 3, 2005, the investment strategy of the fund, formerly called the Technology Fund, changed from investing primarily in technology stocks to investing primarily in common stocks of small- and mid-capitalization companies. As a result, performance for the periods prior to October 3, 2005 reflect the performance of a materially different investment portfolio.

Stocks of small- and mid-capitalization companies involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies.

The Small-Mid Cap Core Fund’s 1999 returns were higher due in part to its strategy of investing in IPOs and technology-related stocks in a period favorable for IPO and technology stock investing. Of course, such favorable returns involve accepting the risk of volatility, and there is no assurance that the fund’s future investment in IPOs and technology stocks will have the same effect on performance as it did in 1999.


²	An unmanaged small- and mid-cap index that measures the performance of the 2,500 smallest companies in the Russell 3000 Index.

³	Performance for Class B and Class C shares is not presented. Performance for these classes will vary due to the different expense structures.

18 First American Funds Annual Report 2006

Small-Mid Cap Core fund continued

Expense Example

As a shareholder of the Small-Mid Cap Core Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual^2,3	$	1,000.00	$	984.60	$	6.85

Class A Hypothetical (5% return before expenses)³	$	1,000.00	$	1,018.30	$	6.97

Class B Actual^2,3	$	1,000.00	$	980.00	$	10.58

Class B Hypothetical (5% return before expenses)³	$	1,000.00	$	1,014.52	$	10.76

Class C Actual^2,3	$	1,000.00	$	980.60	$	10.58

Class C Hypothetical (5% return before expenses)³	$	1,000.00	$	1,014.52	$	10.76

Class Y Actual^2,3	$	1,000.00	$	985.10	$	5.60

Class Y Hypothetical (5% return before expenses)³	$	1,000.00	$	1,019.56	$	5.70


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.37%, 2.12%, 2.12%, and 1.12% for Class A, Class B, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of -1.54%, -2.00%, -1.94%, and -1.49% for Class A, Class B, Class C, and Class Y, respectively.

³	Prior to July 1, 2006, total operating expenses were not subject to a contractual limitation. Effective July 1, 2006, annual expenses for Class A, Class B, Class C, and Class Y were contractually limited to 1.41%, 2.16%, 2.16%, and 1.16%, respectively. If this limitation had been in place during the entire period, actual and hypothetical ending account balances would have been approximately $984.40 and $1,018.10 for Class A, $979.80 and $1,014.32 for Class B, $980.40 and $1,014.32 for Class C, and $984.90 and $1,019.36 for Class Y. Actual and hypothetical expenses paid during the period would have been approximately $7.05 and $7.17 for Class A, $10.78 and $10.97 for Class B, $10.78 and $10.97 for Class C, and $5.80 and $5.90 for Class Y.

First American Funds Annual Report 2006 19

Mid Cap Growth Opportunities fund

Investment Objective: capital appreciation

How did the Fund perform for the fiscal year ended October 31, 2006?

The First American Mid Cap Growth Opportunities Fund (the “fund”), Class Y shares, returned 12.98% for the fiscal year ended October 31, 2006 (Class A shares returned 12.69% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell Midcap Growth Index*, returned 14.51% for the same period.

What were the general economic and market conditions during the fiscal year?

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (“Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 earnings of S&P 500 companies advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006.

What worked for the fund and why?

Stock selection was mainly responsible for the strengths in the fund’s performance. In the technology sector, the semiconductor equipment manufacturer MEMC Electronic Materials enjoyed exceptional earnings growth, as its foray into the solar energy field, in addition to its semiconductor wafer business, gained investors’ appreciation. Other standouts included Amphenol, a connector maker, and Cognizant, an IT solutions provider. The fund’s significant underweight in the consumer discretionary sector proved beneficial during a time when the sector underperformed. Within the sector, one of the stronger performers we held was clothing retailer Coldwater Creek. In consumer staples, Corn Products International, Inc. added value, while in the energy sector we benefited from the strong performance by Weatherford, an oilfield services company. As the capital markets gained strength, the fund’s positions in brokerage and asset management firms, notably Bear Stearns and AllianceBernstein, made positive contributions.

What did not work for the fund and why?

Apart from the fund’s lacking any positions in the basic materials sector, which fared very well during the period, it was chiefly adverse stock selection that detracted from performance. In the consumer discretionary sector, disappointing earnings from Scientific Games Corp., a service and systems provider for lottery and wagering industries, and Station Casinos, a hotel and casino operator, held back performance. In media, XM Satellite Radio saw its stock drop by 59% as it continued its struggle toward profitability. Among our weaker performers in the technology sector were Autodesk (2D and 3D design, digital content creation, and project collaboration software tools), hurt by a lower price/earnings ratio**, and Citrix (designer of software platforms for on-demand access to information), which reported anemic earnings. Within the healthcare sector, an overweight in managed-care companies like Coventry Health Care, Inc., had a negative impact, as did our positions in health insurer Aetna and PerkinElmer, a provider of analytical tools for health and life sciences, which did not deliver on earnings targets throughout the fiscal year.

What strategic moves were made by the fund and why?

As the economy slowed, creating an uncertain outlook for many of the companies in the industrial sector, we reduced the fund’s overweight in industrials. Our sizable underweight in the consumer discretionary sector was lessened in anticipation of more robust consumer spending that should follow a decline in energy prices.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
**	Price/earnings ratio is calculated by dividing the current price of the stock by the company’s trailing 12 months of earnings per share.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


Thermo Electron			3.3%
Dun & Bradstreet			3.1
American Tower, Class A			2.9
Amphenol, Class A			2.5
Scientific Games, Class A			2.4
Paychex			2.0
Precision Castparts			2.0
Bear Stearns			1.9
Republic Services			1.7
Smith International			1.6

Sector Allocation as of October 31, 2006¹ (% of net assets)


Information Technology	24.1%
Consumer Discretionary	18.6
Healthcare	15.1
Industrials	14.6
Financials	11.2
Energy	9.0
Telecommunication Services	4.3
Investment Companies	1.6
Consumer Staples	0.8
Short-Term Investment	0.5
Other Assets and Liabilities, Net²	0.2

	100.0	%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

20 First American Funds Annual Report 2006

Mid Cap Growth Opportunities fund continued

Annual Performance¹


	October 31, 2006												September 30, 2006*

							Since Inception												Since Inception

	1 year		5 years		10 years		3/1/1999		12/11/2000		9/24/2001		1 year		5 years		10 years		3/1/1999		12/11/2000		9/24/2001
Average annual return with sales charge (POP)
Class A		6.49%		11.69%		9.66%		—		—		—		1.30%		12.19%		8.87%		—		—		—

Class B		6.83%		11.86%		—		10.62%		—		—		1.67%		12.36%		—		10.31%		—		—

Class C		10.84%		12.15%		—		—		—		13.81%		5.48%		12.66%		—		—		—		13.37%
Average annual return without sales charge (NAV)
Class A		12.69%		12.96%		10.28%		—		—		—		7.21%		13.46%		9.49%		—		—		—

Class B		11.83%		12.12%		—		10.62%		—		—		6.43%		12.61%		—		10.31%		—		—

Class C		11.84%		12.15%		—		—		—		13.81%		6.43%		12.66%		—		—		—		13.37%

Class R		12.41%		12.86%		—		—		7.46%		—		6.95%		13.36%		—		—		7.01%		—

Class Y		12.98%		13.25%		10.55%		—		—		—		7.49%		13.76%		9.76%		—		—		—

Russell Midcap Growth Index²		14.51%		10.62%		8.73%		6.00%		0.08%		12.87%		7.03%		12.01%		8.20%		5.55%		(0.57)%		12.26%

Value of $10,000 Investment^1,3 as of October 31, 2006



Mid Cap Growth Opportunities Fund, Class A (NAV)	$	26,607

Mid Cap Growth Opportunities Fund, Class A (POP)	$	25,143

Mid Cap Growth Opportunities Fund, Class Y	$	27,268

Russell Midcap Growth Index²	$	23,099


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/31/1996 to 10/31/2006) as compared to the Russell Midcap Growth Index².


*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.


	Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies.

	Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

	Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

	On September 24, 2001, the First American Mid Cap Growth Opportunities Fund became the successor by merger to the Firstar MidCap Core Equity Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001 represents that of the Firstar MidCap Core Equity Fund.


²	An unmanaged index that measures the performance of those Russell mid-cap companies with higher price-to-book ratios and higher forecasted growth values.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

First American Funds Annual Report 2006 21

Mid Cap Growth Opportunities fund continued

Expense Example

As a shareholder of the Mid Cap Growth Opportunities Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	961.00	$	6.08

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.00	$	6.26

Class B Actual²	$	1,000.00	$	957.30	$	9.77

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.22	$	10.06

Class C Actual²	$	1,000.00	$	957.50	$	9.77

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.22	$	10.06

Class R Actual²	$	1,000.00	$	959.90	$	7.31

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.74	$	7.53

Class Y Actual²	$	1,000.00	$	962.30	$	4.85

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.27	$	4.99


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.23%, 1.98%, 1.98%, 1.48%, and 0.98% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of -3.90%, -4.27%, -4.25%, -4.01%, and -3.77% for Class A, Class B, Class C, Class R, and Class Y, respectively.

22 First American Funds Annual Report 2006

Mid Cap Value fund

Investment Objective: capital appreciation

How did the Fund perform for the fiscal year ended October 31, 2006?

The First American Mid Cap Value Fund (the “fund”), Class Y shares, returned 17.63% for the fiscal year ended October 31, 2006 (Class A shares returned 17.36% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell Midcap Value Index*, returned 20.51% for the same period.

What were the general economic and market conditions during the fiscal year?

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (“Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 earnings of S&P 500 companies advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006.

What worked for the fund and why?

Stock selection was quite successful in the consumer discretionary sector, where the retail area featured particularly strong performers, notably paint store chain Sherwin Williams, whose results were buoyed by robust construction activity throughout most of the fiscal period. Other standouts included JCPenney, Office Depot, and Darden Restaurants, Inc. An underweight in the media sector proved beneficial during a period when newspapers and radio stations were challenged by declining audiences and advertising revenues. In technology, Freescale Semiconductor added value to the portfolio due to its acquisition by a private equity firm.

What did not work for the fund and why?

In the healthcare sector, PerkinElmer, Inc., a provider of analytical tools for health and life sciences, did not deliver on earnings targets throughout the fiscal year, detracting from the fund’s performance. Adverse stock selection in the managed-care space (HealthNet, Inc.) and hospitals (Community Health Systems, Inc.) was also a drawback. An underweight in real estate investment trusts, the best-performing group in the financials sector, took its toll despite our good stock selection in that area. In an environment of growing credit risk, weak performance from thrifts and mortgage-related companies like MGIC Investment, PMI Group, and Astoria Financial Corp. also had a negative impact. In telecommunications, the fund had an underweight in Qwest, whose benchmark weight nearly doubled in the course of the fiscal year. Finally, given strong benchmark returns, the fund’s position in cash (approximately 2%) was a drawback.

What strategic moves were made by the fund and why?

In terms of strategic positioning, the fund ended the year with its largest overweight in the consumer discretionary and industrial sectors, as we continue to identify stocks in these sectors that exhibit compelling fundamentals with company-specific catalysts for change. We remain moderately overweight in the energy sector because we feel that continuing high commodity prices, coupled with favorable supply and demand characteristics, will positively impact both exploration and service companies. We maintained our underweight position in the financial and utility sectors in our belief that these sectors are enjoying both peak fundamentals and full valuations.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


CIT Group			2.2%
Marshall & Ilsley			2.1
Edison International			2.1
PPL			2.1
Constellation Energy			2.0
CSX			2.0
Eaton			2.0
Mattel			1.9
First American Prime Obligations Fund, Class Z			1.8
Boston Properties			1.8

Sector Allocation as of October 31, 2006¹ (% of net assets)


Financials			31.5%
Consumer Discretionary			17.9
Utilities			12.3
Industrials			10.5
Information Technology			7.6
Materials			5.6
Energy			5.3
Consumer Staples			4.7
Healthcare			1.9
Telecommunication Services			0.5
Short-Term Investment			1.8
Other Assets and Liabilities, Net²			0.4

			100.0%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

First American Funds Annual Report 2006 23

Mid Cap Value fund continued

Annual Performance¹


	October 31, 2006										September 30, 2006*

							Since Inception										Since Inception

	1 year		5 years		10 years		2/1/1999		9/24/2001		1 year		5 years		10 years		2/1/1999		9/24/2001

Average annual return with sales charge (POP)
Class A		10.90%		14.47%		8.66%		—		—		4.33%		14.14%		8.39%		—		—

Class B		11.45%		14.69%		8.48%		—		—		4.60%		14.37%		8.21%		—		—

Class C		15.47%		14.90%		—		9.60%		—		8.61%		14.59%		—		9.34%		—

Average annual return without sales charge (NAV)
Class A		17.36%		15.77%		9.27%		—		—		10.42%		15.44%		9.01%		—		—

Class B		16.45%		14.92%		8.48%		—		—		9.60%		14.60%		8.21%		—		—

Class C		16.47%		14.90%		—		9.60%		—		9.61%		14.59%		—		9.34%		—

Class R		17.06%		15.65%		—		—		16.32%		10.21%		15.33%		—		—		16.01%

Class Y		17.63%		16.06%		9.55%		—		—		10.70%		15.74%		9.29%		—		—

Russell Midcap Value Index²		20.51%		17.43%		13.82%		12.58%		17.98%		12.27%		16.63%		13.66%		12.14%		17.37%

Value of $10,000 Investment^{1, 3} as of October 31, 2006



Mid Cap Value Fund, Class A (NAV)	$	24,337

Mid Cap Value Fund, Class A (POP)	$	22,997

Mid Cap Value Fund, Class Y	$	24,964

Russell Midcap Value Index²	$	37,444

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 10/31/2006) as compared to the Russell Midcap Value Index².


*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.


	Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies.

	Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

	Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.


²	An unmanaged index that measures the performance of those Russell mid-cap companies with lower price-to-book ratios and lower forecasted growth values.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

24 First American Funds Annual Report 2006

Mid Cap Value fund continued

Expense Example

As a shareholder of the Mid Cap Value Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	1,029.20	$	6.29

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.00	$	6.26

Class B Actual²	$	1,000.00	$	1,025.30	$	10.11

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.22	$	10.06

Class C Actual²	$	1,000.00	$	1,025.20	$	10.11

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.22	$	10.06

Class R Actual²	$	1,000.00	$	1,028.10	$	7.57

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.74	$	7.53
Class Y Actual²	$	1,000.00	$	1,030.30	$	5.02

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.27	$	4.99


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.23%, 1.98%, 1.98%, 1.48%, and 0.98% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of 2.92%, 2.53%, 2.52%, 2.81%, and 3.03% for Class A, Class B, Class C, Class R, and Class Y, respectively.

First American Funds Annual Report 2006 25

Large Cap Growth Opportunities fund

Investment Objective: long-term growth of capital

How did the Fund perform for the fiscal year ended October 31, 2006?

The First American Large Cap Growth Opportunities Fund (the “fund”), Class Y shares, returned 6.42% for the fiscal year ended October 31, 2006 (Class A shares returned 6.17% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 1000 Growth Index*, returned 10.84% for the same period.

What were the general economic and market conditions during the fiscal year?

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (“Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 earnings of S&P 500 companies advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006.

What worked for the fund and why?

An overweight in financials, the best-performing sector in our portfolio during the fiscal period, was the most significant positive contributor to performance. Within the sector our stock selection was also quite successful. Driven by the increasing strength of capital markets, the performance of diversified financial companies and banks received a boost. Standouts in this category included Wells Fargo, Goldman Sachs, and Allstate. The fund’s holdings in the energy sector also added value. Although we were overweight in this sector, which generally underperformed, our stock selection produced positive results: the fund’s holdings in energy were up 23% over the fiscal year, well above the benchmark. The largest contributors in this area were Baker Hughes, Inc., an oilfield services provider, and oil giant Exxon Mobil.

What did not work for the fund and why?

The fund’s underperformance relative to the index was caused mainly by adverse stock selection. Within the healthcare sector, an overweight position in managed-care organizations proved detrimental. United Health Group particularly, though robust in recent years, underperformed during this fiscal period, in large part because of the investigation of stock options backdating by the company’s CEO. In healthcare equipment, a slowdown in the fundamentals in cardiac and orthopedic implantable devices industry hurt our holdings in St. Jude Medical and Medtronic, makers of such devices. In the consumer discretionary sector, the fund’s lack of holdings in media proved a drawback as this area outperformed the index. While consumer electronics generally performed well, the fund’s position in Circuit City, one of the weak performers in this space, held us back.

What strategic moves were made by the fund and why?

We reduced our exposure to healthcare, especially trimming down our holdings in managed-care organizations. We slightly increased our investment in lower-earning growth stocks but are still focusing on individual stock selection rather than particular groups. In our stock selection, we continue to focus on companies that demonstrate the potential for sustainable earnings growth.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


General Electric	4.3	%
Kohl’s	3.3
Microsoft	3.1
Google	3.1
Hewlett-Packard	2.8
Texas Instruments	2.5
Goldman Sachs Group	2.2
Amphenol	2.2
United Technologies	2.1
Cisco Systems	2.1

Sector Allocation as of October 31, 2006¹ (% of net assets)


Information Technology	30.9	%
Industrials	14.1
Healthcare	13.2
Consumer Discretionary	11.3
Consumer Staples	9.9
Financials	9.3
Energy	5.6
Telecommunication Services	2.8
Investment Companies	1.8
Materials	1.0
Short-Term Investment	0.2
Other Assets and Liabilities, Net²	(0.1	)

	100.0	%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

26 First American Funds Annual Report 2006

Large Cap Growth Opportunities fund continued

Annual Performance¹


		October 31, 2006												September 30, 2006*

								Since Inception												Since Inception

		1 year		5 years		10 years		3/01/1999		11/27/2000		9/24/2001		1 year		5 years		10 years		3/01/1999		11/27/2000		9/24/2001
Average annual return with sales charge (POP)
	Class A		0.34%		2.36%		4.16%		—		—		—		(3.14)%		2.25%		3.79%		—		—		—

	Class B		0.38%		2.39%		—		(1.23)%		—		—		(3.28)%		2.27%		—		(1.62)%		—		—

	Class C		4.38%		2.75%		—		—		—		3.76%		0.72%		2.64%		—		—		—		3.23%

Average annual return without sales charge (NAV)
	Class A		6.17%		3.53%		4.75%		—		—		—		2.50%		3.41%		4.38%		—		—		—

	Class B		5.38%		2.75%		—		(1.23)%		—		—		1.72%		2.64%		—		(1.62)%		—		—

	Class C		5.38%		2.75%		—		—		—		3.76%		1.72%		2.64%		—		—		—		3.23%

	Class R		5.87%		3.40%		—		—		(3.06)%		—		2.22%		3.29%		—		—		(3.58)%		—

	Class Y		6.42%		3.79%		5.01%		—		—		—		2.74%		3.68%		4.64%		—		—		—

	Russell 1000 Growth Index²		10.84%		4.07%		5.76%		(1.25)%		(3.58)%		5.64%		6.04%		4.42%		5.46%		(1.71)%		(4.20)%		5.01%

Value of $10,000 Investment^{1, 3} as of October 31, 2006



Large Cap Growth Opportunities Fund, Class A (NAV)					$15,900

Large Cap Growth Opportunities Fund, Class A (POP)					$15,028

Large Cap Growth Opportunities Fund, Class Y					$16,303

Russell 1000 Growth Index²					$17,501


	Class A


	Class Y

The chart above, illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/31/1996 to 10/31/2006) as compared to the Russell 1000 Growth Index².


*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.


	Growth stocks typically have more volatility than value stocks; whereas value stocks tend to have slower earnings growth rates.

	Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

	Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

	On September 24, 2001, the First American Large Cap Growth Opportunities Fund became the successor by merger to the Firstar Large Cap Core Equity Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001 represents that of the Firstar Large Cap Core Equity Fund.


²	An unmanaged index that measures the performance of those companies in the Russell 1000 Index (large-cap index) with higher price-to-book ratios and higher forecasted growth values.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

First American Funds Annual Report 2006 27

Large Cap Growth Opportunities fund continued

Expense Example

As a shareholder of the Large Cap Growth Opportunities Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	999.30	$	$6.00

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.21	$	6.06

Class B Actual²	$	1,000.00	$	995.40	$	9.76

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.43	$	9.86

Class C Actual²	$	1,000.00	$	995.50	$	9.76

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.43	$	9.86

Class R Actual²	$	1,000.00	$	998.00	$	7.25

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.95	$	7.32

Class Y Actual²	$	1,000.00	$	1,000.30	$	4.74

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.47	$	4.79


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.19%, 1.94%, 1.94%, 1.44%, and 0.94% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of -0.07%, -0.46%, -0.45%, -0.20%, and 0.03% for Class A, Class B, Class C, Class R, and Class Y, respectively.

28 First American Funds Annual Report 2006

Large Cap Select fund

Investment Objective: capital appreciation

How did the fund perform for the fiscal year ended October 31, 2006?

The First American Large Cap Select Fund (the “fund”), Class Y shares, returned 11.37% for the fiscal year ended October 31, 2006 (Class A shares returned 11.07% without taking the sales charge into account). By comparison, the fund’s benchmark, the Standard & Poor’s 500 Index* (“S&P 500 Index”), returned 16.34% for the same period.

What were the general economic and market conditions during the fiscal year?

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (“Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 earnings of S&P 500 companies advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006.

What worked for the fund and why?

Good sector allocation was a positive contributor to the fund’s performance. Our overweight position in the financial sector added value, as did our stock selection in that sector. Driven by the increasing strength of capital markets, the performance of investment banks received a boost. Standouts in this category included Goldman Sachs and Morgan Stanley.

What did not work for the fund and why?

The fund underperformed the benchmark due to adverse stock selection. The most significant detractors from performance were in the technology sector: Motorola, Intel, Qualcomm, and Apple Computer. Because their performance – and the performance of consumer electronics stocks in general – depends on positive consumer sentiment, during this fiscal year it was negatively affected by rising concerns about consumer-led recession. Our sizable positions in Dow Chemical and Wal-Mart also hurt performance. Since both are highly cyclical stocks – rising quickly when the economy grows and falling just as rapidly when it turns down – both were hurt by the slowing economy and by the growing concerns about potential recession. The fund was underweight in utilities, which performed better than expected, but this underweight had little impact on performance, since good stock selection in the sector compensated for it.

What strategic moves were made by the fund and why?

We maintained the fund’s overweight position in cyclical stocks, believing that’s where the fund’s source of real value lies, even though current prices of these stocks may not reflect it. Convinced that a recession is unlikely and that the Fed is positioned to lower interest rates in 2007, we expect these stocks to benefit in the coming fiscal year. We also maintained the fund’s overweight in energy because, although U.S. economic growth is slowing, the world growth is quite robust, putting continued demand pressures on oil and natural gas producers.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


American International Group	4.9	%
Bank of America	4.6
Exxon Mobil	4.4
General Electric	3.8
Wal-Mart Stores	3.2
Morgan Stanley	3.0
Gap	2.9
Comcast, Class A	2.6
Wyeth Pharmaceuticals	2.5
Boeing	2.4

Sector Allocation as of October 31, 2006¹ (% of net assets)


Financials	20.1	%
Information Technology	18.0
Energy	14.2
Consumer Discretionary	13.3
Healthcare	11.3
Industrials	10.4
Consumer Staples	7.5
Telecommunication Services	3.7
Materials	1.1
Short-Term Investments	0.3
Other Assets and Liabilities, Net²	0.1

	100.0	%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

First American Funds Annual Report 2006 29

Large Cap Select fund continued

Annual Performance¹


	October 31, 2006				September 30, 2006*

			Since				Since
			Inception				Inception

	1 year		1/31/2003		1 year		1/31/2003
Average annual return with sales charge (POP)
Class A		4.97%		12.54%		0.94%		12.00%

Class B		5.32%		12.78%		1.02%		12.24%

Class C		9.36%		13.38%		5.05%		12.87%

Average annual return without sales charge (NAV)
Class A		11.07%		14.24%		6.80%		13.74%

Class B		10.32%		13.35%		6.02%		12.84%

Class C		10.36%		13.38%		6.05%		12.87%

Class R		10.79%		13.99%		6.51%		13.48%

Class Y		11.37%		14.53%		7.10%		14.02%

S&P 500 Index²		16.34%		15.62%		10.79%		15.00%

Value of $10,000 Investment^1,3 as of October 31, 2006



Large Cap Select Fund, Class A (NAV)	$	16,471

Large Cap Select Fund, Class A (POP)	$	15,568

Large Cap Select Fund, Class Y	$	16,627

S&P 500 Index²	$	17,226


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 1/31/2003 to 10/31/2006) as compared to the S&P 500 Index².


*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.


	Mutual fund investing involves risk; principal loss is possible.

	Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

	Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.


²	An unmanaged market capitalization-weighted index based on the average weighted performance of 500 widely held common stocks.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

30 First American Funds Annual Report 2006

Large Cap Select fund continued

Expense Example

As a shareholder of the Large Cap Select Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	1,023.70	$	6.02

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.26	$	6.01

Class B Actual²	$	1,000.00	$	1,019.80	$	9.83

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.48	$	9.80

Class C Actual²	$	1,000.00	$	1,020.50	$	9.83

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.48	$	9.80

Class R Actual²	$	1,000.00	$	1,022.80	$	7.34

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.95	$	7.32

Class Y Actual²	$	1,000.00	$	1,024.90	$	4.75

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.52	$	4.74


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.18%, 1.93%, 1.93%, 1.44%, and 0.93% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of 2.37%, 1.98%, 2.05%, 2.28%, and 2.49% for Class A, Class B, Class C, Class R, and Class Y, respectively.

First American Funds Annual Report 2006 31

Large Cap Value fund

Investment Objective: primary – capital appreciation; secondary – current income

How did the Fund perform for the fiscal year ended October 31, 2006?

The First American Large Cap Value Fund (the “fund”), Class Y shares, returned 18.23% for the fiscal year ended October 31, 2006 (Class A shares returned 17.93% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 1000 Value Index*, returned 21.46% for the same period.

What were the general economic and market conditions during the fiscal year?

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (“Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 earnings of S&P 500 companies advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006.

What worked for the fund and why?

Good stock selection in the consumer discretionary, utilities, telecommunications services, and technology sectors made a positive contribution to the fund’s performance. An overweight in the consumer discretionary sector proved beneficial, and the retail area featured particularly strong performers, notably paint store chain Sherwin-Williams, whose results were buoyed by robust construction activity throughout most of the fiscal period, and the venerable JCPenney store chain, which also reported strong results. Standouts in the utilities sector included Exelon Corp. (a Chicago-based electric utility), and Edison International. In telecommunications, our position in Bell South added value following AT&T’s announcement of a bid for the company and the attendant boost to Bell South’s shares. Hewlett-Packard was our top performer in the technology sector; in the midst of a turnaround and under new, reliable management, the company enjoyed not only an improved top line but also better profit margins.

What did not work for the fund and why?

A weaker performance in the financials, energy, and basic materials sectors detracted from the overall performance of the fund. In financials, the fund’s lack of exposure to real estate investment trust stocks was a drawback, since this was the best-performing group in the sector. An underweight in diversified financials, which included investment banks J.P. Morgan, Goldman Sachs, and Lehman Brothers proved counterproductive at a time when these stocks benefited from robust capital markets. In response to rising credit risk, MGIC Investment, a provider of mortgage insurance, had to augment its reserves, which caused the stock to underperform. In the energy sector, the fund’s overweight position in oil service stocks, notably Global Santa Fe and Halliburton, brought disappointing results, as these stocks underperformed oil producer stocks. In materials, Dow Chemical posted weaker results, reflecting a deteriorating price environment for many of its chemical products.

What strategic moves were made by the fund and why?

In terms of strategic positioning, the fund ended the year with its largest overweight in the consumer cyclical and technology sectors as we continue to identify stocks in these sectors that exhibit compelling fundamentals with company-specific catalysts for change. We maintained our underweight position in the financial and utility sectors in our belief that these sectors are enjoying both peak fundamentals and full valuations.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


Exxon Mobil			5.1%
Bank of America			4.6
General Electric			3.5
Wells Fargo			3.0
J.P. Morgan Chase			3.0
Morgan Stanley			3.0
ChevronTexaco			2.9
First American Prime Obligations Fund, Class Z			2.5
American International Group			2.3
Time Warner			2.3

Sector Allocation as of October 31, 2006¹ (% of net assets)


Financials			32.0%
Energy			13.3
Consumer Discretionary			12.5
Industrials			8.3
Information Technology			6.7
Healthcare			6.4
Consumer Staples			6.4
Telecommunication Services			5.2
Utilities			3.6
Materials			3.0
Short-Term Investment			2.5
Other Assets and Liabilities, Net²			0.1

			100.0%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

32 First American Funds Annual Report 2006

Large Cap Value fund continued

Annual Performance¹


	October 31, 2006										September 30, 2006*

							Since Inception										Since Inception

	1 year		5 years		10 years		2/01/1999		9/24/2001		1 year		5 years		10 years		2/01/1999		9/24/2001
Average annual return with sales charge (POP)
Class A		11.43%		7.07%		6.33%		—		—		5.56%		6.63%		6.37%		—		—

Class B		12.04%		7.18%		6.14%		—		—		5.89%		6.74%		6.18%		—		—

Class C		16.05%		7.47%		—		3.03%		—		9.85%		7.03%		—		2.68%		—
Average annual return without sales charge (NAV)
Class A		17.93%		8.29%		6.94%		—		—		11.72%		7.85%		6.97%		—		—

Class B		17.04%		7.48%		6.14%		—		—		10.89%		7.05%		6.18%		—		—

Class C		17.05%		7.47%		—		3.03%		—		10.85%		7.03%		—		2.68%		—

Class R		17.63%		8.14%		—		—		9.07%		11.34%		7.73%		—		—		8.60%

Class Y		18.23%		8.55%		7.21%		—		—		12.00%		8.13%		7.25%		—		—

Russell 1000 Value Index²		21.46%		11.64%		11.14%		7.35%		12.14%		14.62%		10.73%		11.20%		6.98%		11.63%

Value of $10,000 Investment^{1, 3} as of October 31, 2006



Large Cap Value Fund, Class A (NAV)	$	20,193

Large Cap Value Fund, Class A (POP)	$	19,086

Large Cap Value Fund, Class Y	$	20,728

Russell 1000 Value Index²	$	29,856


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 10/31/2006) as compared to the Russell 1000 Value Index².


*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.


	Mutual fund investing involves risk; principal loss is possible.

	Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

	Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.


²	An unmanaged index that measures the performance of those companies in the Russell 1000 Index (large-cap index) with lower price-to-book ratios and lower forecasted growth values.

³	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

First American Funds Annual Report 2006 33

Large Cap Value fund continued

Expense Example

As a shareholder of the Large Cap Value Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	1,053.40	$	6.16

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.21	$	6.06

Class B Actual²	$	1,000.00	$	1,049.30	$	10.02

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.43	$	9.86

Class C Actual²	$	1,000.00	$	1,049.60	$	10.02

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.43	$	9.86

Class R Actual²	$	1,000.00	$	1,052.00	$	7.45

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.95	$	7.32

Class Y Actual²	$	1,000.00	$	1,054.40	$	4.87

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.47	$	4.79


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.19%, 1.94%, 1.94%, 1.44%, and 0.94% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of 5.34%, 4.93%, 4.96%, 5.20%, and 5.44% for Class A, Class B, Class C, Class R, and Class Y, respectively.

34 First American Funds Annual Report 2006

Balanced fund

Investment Objective: maximize total return (capital appreciation plus income)

How did the fund perform for the fiscal year ended October 31, 2006?

The First American Balanced Fund (the “fund”), Class Y shares, returned 10.92% for the fiscal year ended October 31, 2006 (Class A shares returned 10.73% without taking the sales charge into account). By comparison, the fund’s benchmarks, the Russell 3000 Index* and the Lehman Aggregate Bond Index*, returned 16.37% and 5.19%, respectively, for the same period.

What were the general economic and market conditions during the fiscal year?

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (“Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. In the fixed-income market, in response to sustained Fed tightening, the shape of the yield curve continued to flatten, becoming inverted in early 2006, with short-term bond yields rising above those of long-term bonds. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 S&P 500 earnings advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006.

What worked for the fund and why?

In the stock portion of the fund, good sector allocation was a positive contributor to the fund’s performance. Our overweight position in the financial sector had a positive impact, as did our stock selection in that sector. Driven by the increasing strength of capital markets, the performance of investment banks received a boost. Standouts in this category included Goldman Sachs and Morgan Stanley. Our position in small-cap stocks helped performance, as these stocks fared remarkably well this fiscal year. With continued growth and reasonable valuations abroad, the fund’s exposure to international stocks also added value.

In the fixed-income portion, the fund’s defensive (shorter than index) duration posture, adopted to reduce risk as interest rates rose, proved beneficial. Our positions in high-yield bonds and emerging market bonds (issued by national governments) also provided positive contributions. An overweight in structured and mortgage-backed securities added value, as did good security selection in corporate bonds.

What did not work for the fund and why?

Adverse stock selection detracted from performance in the stock portion of the fund. The most significant detractors from performance were in the technology sector: Motorola, Intel, Qualcomm, and Apple Computer. Because the performance of consumer electronics stocks depends on positive consumer sentiment, during this fiscal year these stocks were negatively affected by rising concerns about consumer-led recession. Our sizable positions in Dow Chemical and Wal-Mart also hurt performance. Since both are highly cyclical stocks, rising quickly when the economy grows and falling just as rapidly when it turns down, both were hurt by the slowing economy and by the growing concerns about potential recession. The fund was underweight in utilities, which performed better than expected, but this underweight had little impact on performance, since good stock selection in the sector compensated for it. Continued inversion of the yield curve detracted modestly from the performance of the fund’s fixed-income portion.

What strategic moves were made by the fund and why?

We maintained the fund’s overweight position in cyclical stocks, believing that’s where the fund’s source of real value lies, even though current prices of these stocks may not reflect it. Convinced that a recession is unlikely and that the Fed is positioned to lower interest rates in 2007, we expect these stocks to benefit in the coming fiscal year. We also maintained the overweight in energy, because, although U.S. economic growth is slowing, the world growth is quite robust, putting continued demand pressures on oil and natural gas producers. To achieve greater diversification, the fund held a small position in small-cap stocks and maintained a modest international position in exchange traded index funds.

During the fiscal year, we moderated the fund’s yield-curve flattening bias, gradually adopting a neutral position in advance of an expected resteepening of the yield curve. In anticipation of a likely end to tightening by the Fed, the fixed-income portion’s interest-rate positioning was brought closer to neutral relative to the index in the latter part of the fiscal year.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


iShares MSCI EAFE Index Fund			3.1%
American International Group			2.8
Bank of America			2.6
First American Prime Obligations Fund, Class Z			2.5
Exxon Mobil			2.5
General Electric			2.1
Wal-Mart Stores			1.8
Morgan Stanley			1.7
Gap			1.7
Comcast, Class A			1.5

Portfolio Allocation as of October 31, 2006¹ (% of net assets)


Stocks			61.0%
Bonds			35.1
Investment Companies			4.1
Short-Term Investments			2.5
Other Assets and Liabilities, Net²			(2.7)

			100.0%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

First American Funds Annual Report 2006 35

Balanced fund conti

Annual Performance¹


	October 31, 2006												September 30, 2006*

							Since Inception												Since Inception

	1 year		5 years		10 years		3/1/1999		11/27/2000		9/24/2001		1 year		5 years		10 years		3/1/1999		11/27/2000		9/24/2001
Average annual return with sales charge (POP)
Class A		4.60%		5.26%		5.93%		—		—		—		1.12%		5.41%		5.70%		—		—		—

Class B		4.93%		5.36%		—		3.74%		—		—		1.24%		5.46%		—		3.51%		—		—

Class C		8.86%		5.66%		—		—		—		6.49%		5.28%		5.77%		—		—		—		6.20%

Average annual return without sales charge (NAV)
Class A		10.73%		6.46%		6.53%		—		—		—		7.04%		6.60%		6.29%		—		—		—

Class B		9.93%		5.68%		—		3.74%		—		—		6.24%		5.78%		—		3.51%		—		—

Class C		9.86%		5.66%		—		—		—		6.49%		6.28%		5.77%		—		—		—		6.20%

Class R		10.49%		6.34%		—		—		3.12%		—		6.83%		6.47%		—		—		2.82%		—

Class Y		10.92%		6.73%		6.81%		—		—		—		7.33%		6.85%		6.58%		—		—		—

Russell 3000 Index ²		16.37%		8.35%		8.89%		4.07%		3.02%		9.42%		10.22%		8.08%		8.70%		3.63%		2.45%		8.82%

Lehman Aggregate Bond Index³		5.19%		4.51%		6.26%		5.88%		6.05%		4.98%		3.67%		4.81%		6.42%		5.86%		6.02%		4.93%

Value of $10,000 Investment^1,4 as of October 31, 2006



Balanced Fund, Class A (NAV)	$	18,826

Balanced Fund, Class A (POP)	$	17,793

Balanced Fund, Class Y	$	19,332

Russell 3000 Index²	$	23,432

Lehman Aggregate Bond Index³	$	18,348


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/31/1996 to 10/31/2006) as compared to the Russell 3000 Index² and the Lehman Aggregate Bond Index³.


	The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.


	Mutual fund investing involves risk; principal loss is possible.

	Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

	Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

	On September 24, 2001, the First American Balanced Fund combined with Firstar Balanced Growth Fund and Firstar Balanced Income Fund. Performance history prior to September 24, 2001, represents that of Firstar Balanced Growth Fund.


²	An unmanaged index that measures the performance of the 3,000 largest U.S. companies (98% of the investable U.S. equity market) based on total market capitalization.

³	An unmanaged fixed income index covering the U.S. investment-grade fixed-rate bond market.

⁴	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures.

36 First American Funds Annual Report 2006

Balanced fund conti

Expense Example

As a shareholder of the Balanced Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	1,025.20	$	5.62

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.66	$	5.60

Class B Actual²	$	1,000.00	$	1,021.30	$	9.43

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.88	$	9.40

Class C Actual²	$	1,000.00	$	1,021.00	$	9.42

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.88	$	9.40

Class R Actual²	$	1,000.00	$	1,023.60	$	6.89

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.40	$	6.87

Class Y Actual²	$	1,000.00	$	1,025.60	$	4.34

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.92	$	4.33


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.10%, 1.85%, 1.85%, 1.35%, and 0.85% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of 2.52%, 2.13%, 2.10%, 2.36%, and 2.56% for Class A, Class B, Class C, Class R, and Class Y, respectively.

First American Funds Annual Report 2006 37

Equity Income fund

Investment Objective: long-term growth of capital and income

How did the fund perform for the fiscal year ended October 31, 2006?

The First American Equity Income Fund (the “fund”), Class Y shares, returned 18.89% for the fiscal year ended October 31, 2006 (Class A shares returned 18.66% without taking the sales charge into account). By comparison, the fund’s benchmark, the Standard and Poor’s 500 Index* (“S&P 500 Index”), returned 16.34% for the same period.

What were the general economic and market conditions during the fiscal year?

Economic growth slowed from very strong levels through the first quarter of 2006 to below-potential levels by the end of October. Inflation pressures rose through much of this period in a lagging response to the very strong growth through the first portion of this year, but diminished considerably by October. The Federal Reserve (“Fed”) continued to tighten monetary policy through June as a result of the increase in inflation pressures, but has kept policy steady since that time as its forecast of slowing economic growth and dissipating inflation pressures has been realized. Corporate profit growth remained strong over this 12-month period with third-quarter 2006 earnings of S&P 500 companies advancing by roughly 20% on a year-over-year basis. The strength in corporate earnings, along with lessening inflation pressures and expectations that the Fed will begin easing monetary policy in 2007, has proved to be favorable for the equity markets through October 2006.

What worked for the fund and why?

The fund benefited from both good sector allocation and security selection. We moved to an overweight in the telecommunications sector, where valuations were attractive and dividend yields compelling – an important consideration for a fund with income as one of its objectives. Overweight positions were held in AT&T, Verizon, and Bell South. A subsequent bid for Bell South from AT&T galvanized the entire sector, proving to be the catalyst we were anticipating. We maintained an underweight position in financials, which, in general, were mediocre performers during the year; however, a few individual stocks from this sector added value. AllianceBernstein performed especially well, reflecting investors’ renewed interest in asset management firms, which benefit from a strong stock market. Another important contributor to fund results was ICICI Bank Ltd, an Indian bank with very strong growth prospects in that country. Apartment Investment & Management, a real estate investment trust (REIT), was also a standout performer. We maintained an overweight in basic materials, where Engelhard, a materials science company, was a positive contributor following a buyout offer from chemical giant BASF. Finally, Alliant Energy was an outstanding performer in the utilities sector.

What did not work for the fund and why?

A few of our stock picks performed below expectations. Dropping energy prices had a negative effect on the stock price of British Petroleum. Dow Chemical also posted weaker results, reflecting a deteriorating price environment for many of its chemical products. In technology, Motorola turned in a disappointing performance.

What strategic moves were made by the fund and why?

As mentioned above, we moved to an overweight in telecommunications, which proved beneficial to the fund. We also trimmed our position in the energy sector from a modest overweight early in the fiscal year to an equal weight, taking profits in this sector, which has been a very strong performer over the last couple of years in an environment of rising energy prices. Our outlook is for energy prices to level off, making us less enthusiastic about the future earnings growth potential in this sector.


*	Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Holdings as of October 31, 2006¹ (% of net assets)


Exxon Mobil			4.2%
Bank of America			3.5
General Electric			3.4
American International Group			2.9
Wyeth Pharmaceuticals			2.9
Abbott Laboratories			2.9
Verizon Communications			2.8
Citigroup			2.8
Hewlett Packard			2.6
Johnson & Johnson			2.2

Sector Allocation as of October 31, 2006¹ (% of net assets)


Financials			23.5%
Energy			12.0
Healthcare			11.8
Industrials			11.2
Information Technology			9.3
Telecommunication Services			8.8
Consumer Staples			7.9
Consumer Discretionary			7.3
Utilities			3.5
Materials			3.4
Convertible Corporate Bond			0.4
Short-Term Investment			1.2
Other Assets and Liabilities, Net²			(0.3)

			100.0%


¹	Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

²	Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid.

38 First American Funds Annual Report 2006

Equity Income fund continued

Annual Performance¹


	October 31, 2006										September 30, 2006*

							Since Inception										Since Inception

	1 year		5 years		10 years		2/1/1999		9/24/2001		1 year		5 years		10 years		2/1/1999		9/24/2001
Average annual return with sales charge (POP)
Class A		12.10%		6.33%		8.27%		—		—		7.12%		5.65%		8.17%		—		—

Class B		12.76%		6.42%		8.11%		—		—		7.50%		5.73%		8.00%		—		—

Class C		16.80%		6.71%		—		4.53%		—		11.54%		6.06%		—		4.18%		—

Average annual return without sales charge (NAV)
Class A		18.66%		7.53%		8.89%		—		—		13.37%		6.85%		8.78%		—		—

Class B		17.76%		6.73%		8.11%		—		—		12.50%		6.05%		8.00%		—		—

Class C		17.80%		6.71%		—		4.53%		—		12.54%		6.06%		—		4.18%		—

Class R		18.33%		7.38%		—		—		8.20%		13.05%		6.73%		—		—		7.70%

Class Y		18.89%		7.79%		9.18%		—		—		13.61%		7.11%		9.08%		—		—

S&P 500 Index²		16.34%		7.26%		8.64%		2.63%		8.29%		10.79%		6.97%		8.59%		2.23%		7.74%

S&P 500 Dividend Only Stocks Index³		17.05%		7.71%		9.16%		4.07%		7.61%		11.61%		7.08%		9.14%		3.70%		7.08%

Value of $10,000 Investment^1,4 as of October 31, 2006



Equity Income Fund, Class A (NAV)	$	23,916

Equity Income Fund, Class A (POP)	$	22,594

Equity Income Fund, Class Y	$	24,575

S&P 500 Index²	$	23,534

S&P 500 Dividend Only Stocks Index³	$	24,734


	Class A


	Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 10/31/2006) as compared to the S&P 500 Index² and the S&P 500 Dividend Only Stocks Index³.


*	This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period.


	Mutual fund investing involves risk; principal loss is possible.

	Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

	Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.


²	An unmanaged market capitalization-weighted index based on the average weighted performance of 500 widely held common stocks.

³	A custom benchmark that is composed of companies in the S&P 500 Index that have an indicated annual dividend. Since inception returns are calculated as of the beginning of the closest month.

⁴	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to different expense structures.

First American Funds Annual Report 2006 39

Equity Income fund continued

Expense Example

As a shareholder of the Equity Income Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2006, to October 31, 2006.

Actual Expenses

Hypothetical Example for Comparison Purposes

Expense Examples


					Expenses Paid During
	Beginning Account		Ending Account		Period¹(5/01/06 to
	Value (5/01/06)		Value (10/31/06)		10/31/06)
Class A Actual²	$	1,000.00	$	1,076.50	$	6.18

Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.26	$	6.01

Class B Actual²	$	1,000.00	$	1,071.90	$	10.08

Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.48	$	9.80

Class C Actual²	$	1,000.00	$	1,072.50	$	10.08

Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.48	$	9.80

Class R Actual²	$	1,000.00	$	1,074.60	$	7.48

Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.00	$	7.27

Class Y Actual²	$	1,000.00	$	1,077.40	$	4.87

Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.52	$	4.74


¹	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.18%, 1.93%, 1.93%, 1.43%, and 0.93% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).

²	Based on the actual returns for the six-month period ended October 31, 2006 of 7.65%, 7.19%, 7.25%, 7.46%, and 7.74% for Class A, Class B, Class C, Class R, and Class Y, respectively.

40 First American Funds Annual Report 2006

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

First American Investment Funds, Inc.

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Real Estate Securities, International, Small Cap Growth Opportunities, Small Cap Select, Small Cap Value, Small-Mid Cap Core, Mid Cap Growth Opportunities, Mid Cap Value, Large Cap Growth Opportunities, Large Cap Select, Large Cap Value, Balanced, and Equity Income Funds (series of First American Investment Funds, Inc.) (collectively, the “funds”) as of October 31, 2006, and the related statements of operations, statements of changes in net assets and financial highlights for each of the periods indicated therein. These financial statements and the financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of October 31, 2006 and confirmation of the securities held by correspondence with brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the funds listed above of First American Investment Funds, Inc. at October 31, 2006, the results of their operations, the changes in their net assets, and their financial highlights for the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Minneapolis, Minnesota

December 19, 2006

First American Funds Annual Report 2006 41

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Real Estate Securities Fund
DESCRIPTION		SHARES		VALUE

Real Estate Common Stock (a) – 98.2%
Apartments – 18.0%
American Campus Communities (b) (c)			151,051	$	4,022
Archstone-Smith Trust (b) (c)			604,865		36,419
Avalonbay Communities (b) (c)			302,797		39,685
BRE Properties (b) (c)			147,894		9,805
Camden Property Trust (b) (c)			400,419		32,322
Equity Residential Properties Trust (b) (c)			701,265		38,296
Essex Property Trust (b) (c)			105,246		14,027
Mid-America Apartment Communities (b) (c)			71,011		4,520
Post Properties (b) (c)			68,355		3,348

					182,444

Community Centers – 10.8%
Agree Realty (b)			30,584		1,072
Developers Diversified Realty (b) (c)			296,512		18,058
Equity One (b)			65,555		1,647
Federal Realty Investment Trust (b) (c)			235,456		18,872
Kimco Realty (b) (c)			600,119		26,663
Kite Realty Group Trust (b)			226,580		4,155
Regency Centers (b) (c)			473,693		34,182
Saul Centers (b) (c)			90,556		4,401

					109,050

Diversified – 5.5%
Colonial Properties Trust (b) (c)			28,492		1,436
Cousins Properties (b) (c)			98,505		3,523
Florida East Coast Industries (c)			127,776		7,635
Forest City Enterprises, Class A (c)			81,972		4,500
Vornado Realty Trust (b) (c)			323,451		38,572

					55,666

Healthcare – 6.3%
Brookdale Senior Living (c)			182,720		8,792
Capital Senior Living (c) (d)			513,128		4,900
Health Care Property Investors (b) (c)			521,715		16,382
Health Care REIT (b) (c)			107,121		4,422
Sunrise Senior Living (c) (d)			109,183		3,408
Ventas (b) (c)			659,334		25,701

					63,605

Hotels – 7.8%
Equity Inns (b)			178,793		3,000
Host Marriott (b) (c)			1,480,881		34,149
LaSalle Hotel Properties (b) (c)			306,579		12,953
Starwood Hotels & Resorts Worldwide			209,179		12,496
Sunstone Hotel Investors (b) (c)			547,683		16,135

					78,733

Industrials – 9.6%
AMB Property (b)			336,889		19,678
EastGroup Properties (b) (c)			172,290		9,171
First Potomac Realty Trust (b) (c)			170,502		5,275
Prologis (b)			918,217		58,096
PS Business Parks (b)			85,791		5,649

					97,869

Malls – 11.3%
General Growth Properties (b) (c)			468,727		24,327
Macerich (b) (c)			345,066		27,726
Simon Property Group (b) (c)			642,042		62,342

					114,395

Manufactured Homes – 0.6%
Equity Lifestyle Properties (b) (c)			117,058		5,768

Multifamily – 0.4%
Associated Estates Realty (b)			262,665		4,321

Net Lease – 0.8%
National Retail Properties (b) (c)			381,827		8,580

Office – 24.2%
Alexandria Real Estate Equities (b) (c)			44,466		4,433
BioMed Realty Trust (b) (c)			437,718		14,108
Boston Properties (b) (c)			407,260		43,508
Brookfield Asset Management (c)			271,617		12,098
Brookfield Properties (c)			734,149		27,817
Cogdell Spencer (b) (e)			334,368		7,383
Columbia Equity Trust (b)			159,258		2,733
Corporate Office Properties Trust (b) (c)			94,509		4,516
Douglas Emmett (b) (c) (d)			488,218		11,644
Duke Realty (b) (c)			125,528		5,029
Equity Office Properties Trust (b) (c)			742,008		31,535
Highwoods Properties (b) (c)			569,076		21,739
Kilroy Realty (b)			193,584		14,583
Liberty Property Trust (b) (c)			280,335		13,512
Maguire Properties (b) (c)			94,259		4,030
SL Green Realty (b) (c)			224,686		27,197

					245,865

Real Estate Service Provider – 0.3%
FirstService (d)			107,198		2,566

Self Storage – 2.6%
Public Storage (b) (c)			294,524		26,422
Sovran Self Storage (b)			7,433		438

					26,860

Total Real Estate Common Stock
	(Cost $729,776)				995,722
Private Real Estate Companies – 0.0%
Beacon Capital (d) (f) (g)			33,750		34
Newcastle Investment Holdings (d) (f) (g)			35,000		211

Total Private Real Estate Companies
	(Cost $588)				245

Short-Term Investment – 3.6%
First American Prime Obligations Fund, Class Z (h) (Cost $36,578)			36,578		36,578

Investments Purchased with Proceeds from Securities Lending (i) – 45.3%
	(Cost $459,273)				459,273

Total Investments – 147.1%
	(Cost $1,226,215)				1,491,818

Other Assets and Liabilities, Net – (47.1)%					(477,772	)

Total Net Assets – 100.0%				$	1,014,046


(a)	The fund is primarily invested in the Real Estate sector and therefore is subject to additional risks. See notes 1 and 6 in Notes to Financial Statements.

(b)	Real Estate Investment Trust. As of October 31, 2006, the market value of these investments was $911,510, or 89.9% of total net assets.

(c)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $447,560 at October 31, 2006. See note 2 in Notes to Financial Statements.

(d)	Non-income producing security.

(e)	A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings of that company represent 5% or more of the outstanding voting securities of the company. Transactions with

The accompanying notes are an integral part of the financial statements.

42 First American Funds Annual Report 2006

Real Estate Securities Fund (concluded)


	companies that are or were affiliates during the year ended October 31, 2006 are as follows:


	Beginning		Purchase		Sales		Ending		Dividend
Issuer	Cost		Cost		Cost		Cost		Income		Value

Cogdell Spencer	$	8,056	$	3,046	$	5,349	$	5,753	$	487	$	7,383


(f)	Security is considered illiquid or restricted. As of October 31, 2006, the value of these investments was $245 or 0.0% of total net assets. See note 2 in Notes to Financial Statements.

(g)	Security is fair valued. As of October 31, 2006, the fair value of these investments was $245 or 0.0% of total net assets. See note 2 in Notes to Financial Statements.

(h)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(i)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various money market funds and short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporated obligations. See note 2 in Notes to Financial Statements.

First American Funds Annual Report 2006 43

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Statement of Assets and Liabilities	October 31, 2006, all dollars and shares are rounded to thousands (000), except for per share data


	Real Estate
	Securities
	Fund

Investments in unaffiliated securities, at cost	$	730,364
Investments in affiliated money market fund, at cost		36,578
Investments purchased with proceeds from securities lending, at cost (note 2)		459,273

ASSETS:
Investments in unaffiliated securities, at value* (note 2)	$	995,967
Investments in affiliated money market fund, at value (note 2)		36,578
Investments purchased with proceeds from securities lending, at value (note 2)		459,273
Receivable for dividends and interest		635
Receivable for investment securities sold		21,752
Receivable for capital shares sold		8,530
Prepaid expenses and other assets		41

Total assets		1,522,776

LIABILITIES:
Payable for investment securities purchased		47,316
Payable upon return of securities loaned (note 2)		459,273
Payable for capital shares redeemed		1,267
Payable to affiliates (note 3)		776
Payable for distribution and shareholder servicing fees		66
Accrued expenses and other liabilities		32

Total liabilities		508,730

Net assets	$	1,014,046

COMPOSITION OF NET ASSETS:
Portfolio capital	$	659,425
Accumulated net realized gain on investments		89,018
Net unrealized appreciation of investments		265,603

Net assets	$	1,014,046

*Including securities loaned, at value	$	447,560

Class A:
Net assets	$	228,186
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		8,615
Net asset value and redemption price per share	$	26.49
Maximum offering price per share ⁽¹⁾	$	28.03
Class B:
Net assets	$	7,288
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		279
Net asset value, offering price and redemption price per share ⁽²⁾	$	26.08
Class C:
Net assets	$	12,281
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		469
Net asset value, offering price and redemption price per share ⁽²⁾	$	26.17
Class R:
Net assets	$	9,423
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		353
Net asset value, offering price, and redemption price per share	$	26.72
Class Y:
Net assets	$	756,868
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		28,377
Net asset value, offering price, and redemption price per share	$	26.67


	(1)	The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%

	(2)	Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

44 First American Funds Annual Report 2006

Statement of Operations For the year ended October 31, 2006, all dollars are rounded to thousands (000)


	Real Estate
	Securities
	Fund

INVESTMENT INCOME:
Dividends from affiliated securities	$	1,037
Dividends from unaffiliated securities		24,331
Less: Foreign taxes withheld		(103	)
Securities lending income		346

Total investment income		25,611

EXPENSES (note 3):
Investment advisory fees		5,443
Administration fees		1,281
Transfer agent fees		700
Custodian fees		40
Professional fees		37
Registration fees		68
Postage and printing fees		54
Directors’ fees		23
Other expenses		24
Distribution and shareholder servicing fees – Class A		434
Distribution and shareholder servicing fees – Class B		52
Distribution and shareholder servicing fees – Class C		64
Distribution and shareholder servicing fees – Class R		21

Total expenses		8,241

Less: Fee waivers (note 3)		(4	)
Less: Indirect payments from custodian (note 3)		(5	)

Total net expenses		8,232

Investment income – net		17,379

REALIZED AND UNREALIZED GAINS ON INVESTMENTS – NET (note 5):
Net realized gain on affiliated investments		755
Net realized gain on unaffiliated investments		98,123
Net change in unrealized appreciation or depreciation of investments		169,252

Net gain on investments		268,130

Net increase in net assets resulting from operations	$	285,509

First American Funds Annual Report 2006 45

Statements of Changes in Net Assets all dollars are rounded to thousands (000)


		Real Estate
		Securities Fund

					One-Month
					Fiscal Period
		Year Ended			Ended			Year Ended
		10/31/06			10/31/05			9/30/05


OPERATIONS:
Investment income – net		$	17,379		$	908		$	22,036
Net realized gain on affiliated investments			755			—			—
Net realized gain on unaffiliated investments			98,123			6,604			85,317
Net change in unrealized appreciation or depreciation of investments			169,252			(19,635	)		47,167

Net increase (decrease) in net assets resulting from operations			285,509			(12,123	)		154,520


DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income – net:
	Class A		(4,468	)		—			(3,209	)
	Class B		(98	)		—			(92	)
	Class C		(122	)		—			(94	)
	Class R		(80	)		—			(1	)
	Class Y		(16,193	)		—			(14,545	)
Net realized gain on investments:
	Class A		(16,449	)		—			(7,087	)
	Class B		(526	)		—			(338	)
	Class C		(558	)		—			(326	)
	Class R		(24	)		—			—
	Class Y		(59,801	)		—			(32,911	)

Total distributions			(98,319	)		—			(58,603	)


CAPITAL SHARE TRANSACTIONS (note 4):
Class A:
	Proceeds from sales		96,251			2,854			45,709
	Reinvestment of distributions		20,510			—			10,057
	Payments for redemptions		(64,650	)		(2,840	)		(24,578	)

Increase in net assets from Class A transactions			52,111			14			31,188

Class B:
	Proceeds from sales		2,324			61			1,148
	Reinvestment of distributions		550			—			386
	Payments for redemptions (note 3)		(1,261	)		(253	)		(1,935	)

Increase (decrease) in net assets from Class B transactions			1,613			(192	)		(401	)

Class C:
	Proceeds from sales		6,990			66			1,485
	Reinvestment of distributions		634			—			395
	Payments for redemptions (note 3)		(1,722	)		(257	)		(1,887	)

Increase (decrease) in net assets from Class C transactions			5,902			(191	)		(7	)

Class R:
	Proceeds from sales		9,837			22			56
	Reinvestment of distributions		104			—			—
	Payments for redemptions		(1,736	)		(1	)		(23	)

Increase in net assets from Class R transactions			8,205			21			33

Class Y:
	Proceeds from sales		184,391			5,951			124,624
	Reinvestment of distributions		40,096			–			21,477
	Payments for redemptions		(112,601	)		(16,972	)		(112,400	)

Increase (decrease) in net assets from Class Y transactions			111,886			(11,021	)		33,701

Increase (decrease) in net assets from capital share transactions			179,717			(11,369	)		64,514

Total increase (decrease) in net assets			366,907			(23,492	)		160,431
Net assets at beginning of period			647,139			670,631			510,200

Net assets at end of period		$	1,014,046		$	647,139		$	670,631

Undistributed net investment income at end of period		$	—		$	3,478		$	2,805

The accompanying notes are an integral part of the financial statements.

46 First American Funds Annual Report 2006

(This page intentionally left blank.)

Financial Highlights For a share outstanding throughout the indicated periods.


						Realized and
		Net Asset				Unrealized			Distributions			Distributions			Distributions			Net Asset
		Value		Net		Gains			from Net			from Net			from			Value
		Beginning		Investment		(Losses) on			Investment			Realized			Return of			End of
		of Period		Income		Investments			Income			Gains			Capital			Period

Real Estate Securities Fund (1)
Class A
	2006 (2)	$	21.42	$	0.47	$	7.77		$	(0.58	)	$	(2.59	)	$	—		$	26.49
	2005 (3)		21.81		0.03		(0.42	)		—			—			—			21.42
	2005 (4)		18.62		0.69		4.47			(0.55	)		(1.42	)		—			21.81
	2004 (4)		16.00		0.63		3.21			(0.62	)		(0.60	)		—			18.62
	2003 (4)		13.68		0.69		2.65			(0.69	)		(0.33	)		—			16.00
	2002 (4)		13.12		0.71		0.61			(0.69	)		—			(0.07	)		13.68
Class B
	2006 (2)	$	21.14	$	0.29	$	7.66		$	(0.42	)	$	(2.59	)	$	—		$	26.08
	2005 (3)		21.53		0.01		(0.40	)		—			—			—			21.14
	2005 (4)		18.41		0.54		4.40			(0.40	)		(1.42	)		—			21.53
	2004 (4)		15.85		0.50		3.17			(0.51	)		(0.60	)		—			18.41
	2003 (4)		13.55		0.57		2.64			(0.58	)		(0.33	)		—			15.85
	2002 (4)		13.02		0.59		0.61			(0.60	)		—			(0.07	)		13.55
Class C
	2006 (2)	$	21.21	$	0.28	$	7.70		$	(0.43	)	$	(2.59	)	$	—		$	26.17
	2005 (3)		21.61		0.01		(0.41	)		—			—			—			21.21
	2005 (4)		18.47		0.54		4.42			(0.40	)		(1.42	)		—			21.61
	2004 (4)		15.89		0.50		3.19			(0.51	)		(0.60	)		—			18.47
	2003 (4)		13.62		0.59		2.62			(0.61	)		(0.33	)		—			15.89
	2002 (4)		13.08		0.62		0.59			(0.60	)		—			(0.07	)		13.62
Class R (5)
	2006 (2)	$	21.61	$	0.35	$	7.90		$	(0.55	)	$	(2.59	)	$	—		$	26.72
	2005 (3)		22.00		0.02		(0.41	)		—			—			—			21.61
	2005 (4)		18.80		0.72		4.43			(0.53	)		(1.42	)		—			22.00
	2004 (4)		16.00		0.61		3.24			(0.45	)		(0.60	)		—			18.80
	2003 (4)		13.69		0.69		2.64			(0.69	)		(0.33	)		—			16.00
	2002 (4)		13.12		0.70		0.62			(0.68	)		—			(0.07	)		13.69
Class Y
	2006 (2)	$	21.54	$	0.53	$	7.82		$	(0.63	)	$	(2.59	)	$	—		$	26.67
	2005 (3)		21.92		0.03		(0.41	)		—			—			—			21.54
	2005 (4)		18.71		0.74		4.49			(0.60	)		(1.42	)		—			21.92
	2004 (4)		16.06		0.69		3.22			(0.66	)		(0.60	)		—			18.71
	2003 (4)		13.73		0.73		2.66			(0.73	)		(0.33	)		—			16.06
	2002 (4)		13.15		0.73		0.63			(0.71	)		—			(0.07	)		13.73


	(1)	Per share data calculated using average shares outstanding method.

	(2)	For the period November 1 to October 31 in the year indicated.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

48 First American Funds Annual Report 2006


											Ratio of Net
									Ratio of		Investment
							Ratio of Net		Expenses to		Income to
					Ratio of		Investment		Average		Average Net
			Net Assets		Expenses to		Income		Net Assets		Assets		Portfolio
Total			End of		Average		to Average		(Excluding		(Excluding		Turnover
Return (6)			Period (000)		Net Assets		Net Assets		Waivers)		Waivers)		Rate



	43.25%		$	228,186		1.23%		2.06%		1.23%		2.06%		161%
	(1.79	)		133,339		1.23		1.48		1.23		1.48		11
	28.99			135,745		1.23		3.43		1.25		3.41		118
	24.98			86,996		1.23		3.63		1.26		3.60		127
	25.92			35,754		1.23		4.82		1.28		4.77		69
	10.07			15,422		1.23		5.06		1.32		4.97		99
	42.17%		$	7,288		1.98%		1.30%		1.98%		1.30%		161%
	(1.81	)		4,419		1.98		0.74		1.98		0.74		11
	27.98			4,700		1.98		2.69		2.00		2.67		118
	24.06			4,412		1.98		2.91		2.01		2.88		127
	25.03			3,559		1.98		4.10		2.03		4.05		69
	9.21			2,577		1.98		4.27		2.07		4.18		99
	42.16%		$	12,281		1.98%		1.25%		1.98%		1.25%		161%
	(1.85	)		4,669		1.98		0.75		1.98		0.75		11
	28.00			4,954		1.98		2.68		2.00		2.66		118
	24.12			4,247		1.98		2.92		2.01		2.89		127
	24.88			3,229		1.98		4.12		2.03		4.07		69
	9.27			986		1.98		4.43		2.07		4.34		99
	42.87%		$	9,423		1.48%		1.50%		1.60%		1.38%		161%
	(1.77	)		57		1.48		1.23		1.63		1.08		11
	28.60			36		1.48		3.37		1.65		3.20		118
	24.94			1		1.23		3.57		1.26		3.54		127
	25.80			2,524		1.23		4.87		1.28		4.82		69
	10.13			1,224		1.23		5.00		1.32		4.91		99
	43.58%		$	756,868		0.98%		2.31%		0.98%		2.31%		161%
	(1.73	)		504,655		0.98		1.74		0.98		1.74		11
	29.25			525,196		0.98		3.66		1.00		3.64		118
	25.33			414,544		0.98		3.95		1.01		3.92		127
	26.19			194,933		0.98		5.13		1.03		5.08		69
	10.40			120,091		0.98		5.27		1.07		5.18		99

First American Funds Annual Report 2006 49

Schedule of Investments October 31, 2006, all dollars rounded to thousands (000)


International Fund
DESCRIPTION		SHARES		VALUE

Common Stocks – 99.0%
Australia – 1.7%
	BHP Billiton (a)		1,052,000	$	22,392
	Zinifex (a) (b)		630,300		7,462

					29,854

Belgium – 1.9%
	Dexia		670,000		18,073
	Fortis (a)		370,600		15,528

					33,601

Brazil – 1.8%
	Companhia Vale do Rio Doce, ADR (a)		731,062		18,598
	Petroleo Brasileiro, ADR		152,125		13,503

					32,101

Finland – 1.3%
	Nokia Oyj		1,204,770		23,947

France – 13.4%
	Accor		182,000		12,625
	Axa (a)		793,332		30,181
	BNP Paribas (a)		272,089		29,883
	Compagnie de Saint-Gobain (a)		385,000		28,369
	Imerys (a)		189,400		16,368
	Lafarge (a)		201,700		27,039
	Sanofi-Aventis (a)		304,700		25,946
	Total (a) (b)		1,062,260		71,857

					242,268

Germany – 4.3%
	BASF		150,000		13,195
	Bayerische Motoren Werke (BMW) (a)		270,800		15,575
	Deutsche Post		600,000		16,606
	Linde		6,810		675
	SAP (a)		67,250		13,356
	Siemens		211,000		18,956

					78,363

Great Britain – 20.7%
	Barclays		2,675,000		36,042
	BG Group		1,354,965		17,981
	BHP Billiton		274,000		5,276
	British Land		730,000		20,817
	Centrica (b)		2,130,542		13,472
	GlaxoSmithKline		1,625,000		43,307
	Kingfisher		3,560,521		17,861
	Morrison Supermarket		4,547,700		22,334
	Royal Bank of Scotland		562,600		20,027
	Smith & Nephew		1,781,163		17,397
	Standard Chartered		1,013,000		28,498
	Tesco		5,658,800		42,454
	Vodafone (b)		14,900,325		38,394
	Wolseley		1,250,000		29,472
	WPP Group (b)		1,585,503		20,309

					373,641

Hong Kong – 4.6%
	Esprit Holdings		2,175,500		21,048
	HSBC (a)		3,290,400		62,257

					83,305

Ireland – 0.7%
	Bank of Ireland		650,000		13,015

Italy – 5.6%
	Banca Intesa		2,083,000		14,229
	Eni (a)		1,815,800		54,928
	Mediaset (a)		802,400		8,994
	Unicredito Italiano (a)		2,803,900		23,236

					101,387

Japan – 23.2%
	The Bank of Yokohama		1,783,000		13,738
	Canon		460,400		24,588
	Credit Saison (a)		336,900		12,182
	Daikin Industries (a)		430,000		12,123
	Hirose Electric (a)		63,000		8,395
	Honda Motor		464,400		16,391
	Hoya		567,000		21,908
	Mitsubishi UFJ Financial Group		2,651		33,626
	Mitsubishi		979,800		18,916
	Mitsui Fudosan		824,000		20,272
	Mizuho Financial Group		2,622		20,381
	Nidec Corporation (a)		185,700		14,204
	Nikko Cordial (a)		900,000		10,744
	Nippon Oil		925		7
	Nitto Denko (a)		290,200		16,513
	Secom		175,000		8,748
	Seven & I Holdings (a) (b)		545,600		17,504
	Shin-Etsu Chemical		298,000		19,535
	SMC		110,400		15,061
	Sony (a)		389,300		15,911
	Sumitomo Mitsui Financial Group (a)		2,552		27,889
	Sumitomo		1,802,000		23,678
	Toyota Motor		366,400		21,634
	Yamanouchi Pharmaceutical		538,200		24,240

					418,188

Mexico – 0.3%
	Fomento Economico Mexicano, ADR		63,400		6,130

Netherlands – 3.9%
	ING Groep		474,900		21,033
	Philips Electronics		447,000		15,570
	Reed Elsevier		1,032,124		17,624
	Wolters Kluwer		589,700		16,206

					70,433

South Korea – 0.8%
	Samsung Electronics		20,830		13,488
Spain – 2.1%
	Altadis		270,000		12,913
	Banco Bilbano Vizcaya Argentaria (a)		1,031,100		24,886

					37,799

Sweden – 1.4%
	Ericsson		6,746,500		25,501

Switzerland – 11.3%
	Adecco (a)		247,600		15,269
	Holcim		300,000		25,833
	Nestle		95,560		32,654
	Novartis		570,100		34,606
	Roche		183,600		32,146
	UBS (b)		741,400		44,271
	Zurich Financial Services		78,800		19,468

					204,247

Total Common Stocks (Cost $1,331,666)					1,787,268

The accompanying notes are an integral part of the financial statements.

50 First American Funds Annual Report 2006


Short-Term Investment – 1.1%
State Street GA Prime Fund (Cost $20,232)	20,232,436	$	20,232

Investments Purchased with Proceeds from Securities Lending (c) – 20.2%
State Street Navigator Prime Fund (Cost $365,779)	362,456,591		365,779

Total Investments 120.3% (Cost $1,717,677)			2,173,279

Other Assets and Liabilities, Net – (20.3)%			(367,314	)

Total Net Assets – 100.0%		$	1,805,965


(a)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $362,457 at October 31, 2006. See note 2 in Notes to Financial Statements.

(b)	Non-income producing security.

(c)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested as noted above. See note 2 in Notes to Financial Statements.

ADR – American Depository Receipt

At October 31, 2006, sector diversification of the fund was as follows:


	% of Net
	Assets			Value

Foreign Common Stock
Financials*		31.0	%	$	560,276
Industrials		14.4			259,055
Consumer Discretionary		10.9			196,943
Healthcare		9.8			177,642
Materials		9.6			172,886
Information Technology		8.1			145,387
Consumer Staples		6.5			116,485
Energy		5.5			99,891
Telecommunication Services		2.1			38,394
Utilities		1.1			20,309

Total Foreign Common Stock		99.0			1,787,268
Total Short-Term Investment		1.1			20,232
Total Investments Purchased with Proceeds from Securities Lending		20.2			365,779

Total Investments		120.3			2,173,279

Other Assets and Liabilities, Net		(20.3	)		(367,314	)

Net Assets		100	%	$	1,805,965


*	The fund is significantly invested in this sector and therefore is subject to additional risks. See note 6 in Notes to Financial Statements.

First American Funds Annual Report 2006 51


Statement of Assets and Liabilities	October 31, 2006, all dollars and shares are rounded to thousands (000), except for per share data


	International
	Fund

Investments in securities, at cost	$	1,351,898
Investments purchased with proceeds from securities lending at cost (note 2)		365,779

ASSETS:
Investments in securities, at value* (note 2)	$	1,807,500
Investments purchased with proceeds from securities lending (note 2)		365,779
Receivable for dividends and interest		3,587
Receivable for investment securities sold		1,119
Receivable for capital shares sold		456
Receivable for foreign withholding tax reclaim		121
Prepaid expenses and other assets		39

Total assets		2,178,601

LIABILITIES:
Bank overdraft		908
Payable for capital shares redeemed		3,991
Payable upon return of securities loaned (note 2)		365,779
Payable to affiliates (note 3)		1,866
Payable for distribution and shareholder servicing fees		24
Accrued expenses and other liabilities		68

Total liabilities		372,636

Net assets	$	1,805,965

COMPOSITION OF NET ASSETS:
Portfolio capital	$	1,310,946
Undistributed net investment income		17,166
Accumulated net realized gain on investments and foreign currency transactions		22,211
Net unrealized appreciation of investments		455,602
Net unrealized appreciation of foreign currency, and translation of other assets and liabilities in foreign currency		40

Net assets	$	1,805,965

*Including securities loaned, at value	$	362,457

Class A:
Net assets	$	52,489
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		3,547
Net asset value and redemption price per share	$	14.80
Maximum offering price per share ⁽¹⁾	$	15.66
Class B:
Net assets	$	7,172
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		525
Net asset value, offering price and redemption price per share ⁽²⁾	$	13.65
Class C:
Net assets	$	8,049
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		569
Net asset value, offering price and redemption price per share ⁽²⁾	$	14.13
Class R:
Net assets	$	1
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		—	⁽³⁾
Net asset value, offering price, and redemption price per share	$	14.81
Class Y:
Net assets	$	1,738,254
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		115,980
Net asset value, offering price, and redemption price per share	$	14.99


	(1)	The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%.

	(2)	Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements.

	(3)	Due to the presentation of the financial statements in thousands, the number rounds to zero.

The accompanying notes are an integral part of the financial statements.

52 First American Funds Annual Report 2006

Statement of Operations For the year ended October 31, 2006, all dollars are rounded to thousands (000)


	International
	Fund

INVESTMENT INCOME:
Interest	$	701
Dividends		43,388
Less: Foreign taxes withheld		(3,754	)
Securities lending income		1,318

Total investment income		41,653

EXPENSES (note 3):
Investment advisory fees		17,224
Administration fees		2,787
Transfer agent fees		1,629
Custodian fees		365
Professional fees		41
Registration fees		53
Postage and printing fees		100
Directors’ fees		35
Other expenses		29
Distribution and shareholder servicing fees – Class A		128
Distribution and shareholder servicing fees – Class B		70
Distribution and shareholder servicing fees – Class C		81
Distribution and shareholder servicing fees – Class R		—	⁽¹⁾

Total expenses		22,542

Less: Fee waivers (note 3)		(9	)
Less: Indirect payments from custodian (note 3)		(553	)

Total net expenses		21,980

Investment income – net		19,673

REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS – NET(note 5):
Net realized gain on investments		90,776
Net realized loss on foreign currency transactions		(677	)
Net change in unrealized appreciation or depreciation of investments		265,816
Net change in unrealized appreciation or depreciation of foreign currency, and translation of other assets and liabilities denominated in foreign currency		103

Net gain on investments and foreign currency transactions		356,018

Net increase in net assets resulting from operations	$	375,691


	(1)	Due to the presentation of the financial statements in thousands, the number rounds to zero.

First American Funds Annual Report 2006 53

Statements of Changes in Net Assets all dollars are rounded to thousands (000)


		International
		Fund

					One-Month
					Fiscal Period
		Year Ended			Ended			Year Ended
		10/31/06			10/31/05			9/30/05

OPERATIONS:
Investment income – net		$	19,673		$	1,081		$	14,779
Net realized gain on investments			90,776			4,244			158,132
Net realized gain (loss) on foreign currency transactions			(677	)		(48	)		1,417
Net change in unrealized appreciation or depreciation of investments			265,816			(34,720	)		89,806
Net change in unrealized appreciation or depreciation of foreign currency, and translation of other assets and liabilities denominated in foreign currency			103			(8	)		(35	)

Net increase (decrease) in net assets resulting from operations			375,691			(29,451	)		264,099

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income – net:
	Class A		(525	)		—			(273	)
	Class B		(23	)		—			—
	Class C		(22	)		—			—
	Class R:		—			—			—
	Class Y		(19,388	)		—			(9,941	)

Total distributions			(19,958	)		—			(10,214	)

CAPITAL SHARE TRANSACTIONS (note 4):
Class A:
	Proceeds from sales		12,874			1,375			10,293
	Reinvestment of distributions		475			—			259
	Payments for redemptions		(19,829	)		(874	)		(15,029	)

Increase (decrease) in net assets from Class A transactions			(6,480	)		501			(4,477	)

Class B:
	Proceeds from sales		1,144			142			594
	Reinvestment of distributions		23			—			—
	Payments for redemptions (note 3)		(2,076	)		(196	)		(2,481	)

Decrease in net assets from Class B transactions			(909	)		(54	)		(1,887	)

Class C:
	Proceeds from sales		902			28			755
	Reinvestment of distributions		21			—			—
	Payments for redemptions (note 3)		(2,057	)		(267	)		(2,929	)

Decrease in net assets from Class C transactions			(1,134	)		(239	)		(2,174	)

Class R:
	Proceeds from sales		1			—			400
	Reinvestment of distributions		—			—			—
	Payments for redemptions		(2	)		(161	)		(244	)

Increase (decrease) in net assets from Class R transactions			(1	)		(161	)		156

Class Y:
	Proceeds from sales		230,406			34,804			320,811
	Reinvestment of distributions		11,130			—			6,151
	Payments for redemptions		(361,882	)		(13,103	)		(191,834	)

Increase (decrease) in net assets from Class Y transactions			(120,346	)		21,701			135,128

Increase (decrease) in net assets from capital share transactions			(128,870	)		21,748			126,746

Total increase (decrease) in net assets			226,863			(7,703	)		380,631
Net assets at beginning of period			1,579,102			1,586,805			1,206,174

Net assets at end of period		$	1,805,965		$	1,579,102		$	1,586,805

Undistributed net investment income at end of period		$	17,166		$	18,107		$	17,074

The accompanying notes are an integral part of the financial statements.

54 First American Funds Annual Report 2006

(This page intentionally left blank.)

Financial Highlights For a share outstanding throughout the indicated periods.


							Realized and
		Net Asset					Unrealized			Distributions			Net Asset
		Value		Net			Gains			from Net			Value
		Beginning		Investment			(Losses) on			Investment			End of
		of Period		Income (Loss)			Investments			Income			Period

International Fund (1)
Class A
	2006 (2)	$	12.01	$	0.12		$	2.80		$	(0.13	)	$	14.80
	2005 (3)		12.24		0.01			(0.24	)		—			12.01
	2005 (4)		10.19		0.09			2.02			(0.06	)		12.24
	2004 (4)		8.99		0.03			1.22			(0.05	)		10.19
	2003 (4)		7.33		0.06			1.60			—			8.99
	2002 (4)		8.96		—			(1.63	)		—			7.33
Class B
	2006 (2)	$	11.09	$	0.02		$	2.58		$	(0.04	)	$	13.65
	2005 (3)		11.31		—			(0.22	)		—			11.09
	2005 (4)		9.43		—			1.88			—			11.31
	2004 (4)		8.34		(0.05	)		1.14			—			9.43
	2003 (4)		6.85		—			1.49			—			8.34
	2002 (4)		8.45		(0.06	)		(1.54	)		—			6.85
Class C
	2006 (2)	$	11.47	$	0.02		$	2.67		$	(0.03	)	$	14.13
	2005 (3)		11.70		—			(0.23	)		—			11.47
	2005 (4)		9.76		—			1.94			—			11.70
	2004 (4)		8.63		(0.05	)		1.18			—			9.76
	2003 (4)		7.09		—			1.54			—			8.63
	2002 (4)		8.75		(0.06	)		(1.60	)		—			7.09
Class R (5)
	2006 (2)	$	11.94	$	0.05		$	2.82		$	—		$	14.81
	2005 (3)		12.17		(0.02	)		(0.21	)		—			11.94
	2005 (4)		10.11		0.09			1.97			—			12.17
	2004 (4)		8.98		(0.01	)		1.19			(0.05	)		10.11
	2003 (4)		7.31		0.04			1.63			—			8.98
	2002 (4)		8.96		0.01			(1.66	)		—			7.31
Class Y
	2006 (2)	$	12.16	$	0.16		$	2.83		$	(0.16	)	$	14.99
	2005 (3)		12.39		0.01			(0.24	)		—			12.16
	2005 (4)		10.31		0.12			2.05			(0.09	)		12.39
	2004 (4)		9.10		0.06			1.23			(0.08	)		10.31
	2003 (4)		7.40		0.09			1.61			—			9.10
	2002 (4)		9.03		0.03			(1.66	)		—			7.40


	(1)	Per share data calculated using average shares outstanding method.

	(2)	For the period November 1, 2005 to October 31, 2006.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

	(7)	In 2003, 0.14% of Class R share’s and 0.13% of Class Y share’s total return was a result of the reimbursement by the adviser related to foreign currency principal trades between the International Fund and U.S. Bank. Excluding the reimbursement, total return for Class R and Class Y shares would have been 22.71% and 22.84%, respectively.

The accompanying notes are an integral part of the financial statements.

56 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income (Loss)
					Ratio of			Investment			Average			to Average
			Net Assets		Expenses to			Income (Loss)			Net Assets			Net Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate

	24.50	%	$	52,489		1.51	%		0.89	%		1.54	%		0.86	%		17	%
	(1.88	)		48,439		1.51			0.58			1.55			0.54			—
	20.80			48,851		1.56			0.77			1.61			0.72			74
	13.91			44,851		1.60			0.31			1.64			0.27			77
	22.65			39,251		1.60			0.77			1.65			0.72			82
	(18.19	)		37,232		1.60			0.04			1.66			(0.02	)		72
	23.50	%	$	7,172		2.26	%		0.15	%		2.29	%		0.12	%		17	%
	(1.95	)		6,632		2.26			(0.17	)		2.30			(0.21	)		—
	19.94			6,819		2.31			0.00			2.36			(0.05	)		74
	13.12			7,371		2.35			(0.48	)		2.39			(0.52	)		77
	21.75			7,936		2.35			0.02			2.40			(0.03	)		82
	(18.94	)		7,459		2.35			(0.68	)		2.41			(0.74	)		72
	23.53	%	$	8,049		2.26	%		0.16	%		2.29	%		0.13	%		17	%
	(1.97	)		7,520		2.26			(0.17	)		2.30			(0.21	)		—
	19.88			7,915		2.31			(0.01	)		2.36			(0.06	)		74
	13.14			8,542		2.35			(0.52	)		2.39			(0.56	)		77
	21.72			10,439		2.35			(0.01	)		2.40			(0.06	)		82
	(18.97	)		11,027		2.35			(0.71	)		2.41			(0.77	)		72
	24.04	%	$	1		1.76	%		0.39	%		1.91	%		0.24	%		17	%
	(1.89	)		1		1.76			0.33			1.95			0.14			—
	20.38			163		1.81			0.77			2.01			0.57			74
	13.16			1		1.60			(0.11	)		1.64			(0.15	)		77
	22.85	⁽⁷⁾		8,533		1.60			0.57			1.65			0.52			82
	(18.42	)		10,817		1.60			0.16			1.66			0.10			72
	24.81	%	$	1,738,254		1.26	%		1.16	%		1.29	%		1.13	%		17	%
	(1.86	)		1,516,510		1.26			0.83			1.30			0.79			—
	21.12			1,523,057		1.31			1.07			1.36			1.02			74
	14.13			1,145,409		1.35			0.59			1.39			0.55			77
	22.97	⁽⁷⁾		991,027		1.35			1.08			1.40			1.03			82
	(18.05	)		540,495		1.35			0.36			1.41			0.30			72

First American Funds Annual Report 2006 57

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Small Cap Growth Opportunities Fund
DESCRIPTION		SHARES			VALUE

Common Stocks – 97.6%
Consumer Discretionary – 15.0%
Big 5 Sporting Goods (a)			37,569		$	903
Citi Trends (a) (b)			97,997			3,846
Conn’s (a) (b)			251,199	��		6,034
Cosi (a) (b)			846,974			3,684
Guitar Center (a) (b)			68,367			2,965
New York & Company (b)			315,271			4,099
Nutri/ System (a) (b)			52,187			3,219
Oxford Industries (a)			62,870			3,318
P.F. Chang’s China Bistro (a) (b)			94,844			3,966
Ruth’s Chris Steak House (b)			263,047			5,180
Scientific Games, Class A (a) (b)			172,110			4,824
Texas Roadhouse, Class A (a) (b)			364,565			5,268
WMS Industries (a) (b)			65,670			2,320

						49,626

Energy – 7.7%
Arena Resources (a) (b)			112,844			4,031
Atwood Oceanics (a) (b)			37,819			1,747
Ember Resources (a) (b)			1,462,022			4,075
GMX Resources (a) (b)			45,068			1,771
Goodrich Petroleum (a) (b)			53,542			1,832
Lufkin Industries (a)			44,110			2,661
Oil States International (a) (b)			72,785			2,114
Parallel Petroleum (a) (b)			234,095			4,740
Superior Energy Services (b)			79,420			2,486

						25,457

Financials – 10.7%
Boston Private Financial Holdings (a)			172,335			4,763
First Mercury Financial (a) (b)			61,150			1,266
First Potomac Realty Trust – REIT			108,017			3,342
Nelnet (b)			138,549			4,079
Prosperity Bancshares (a)			94,930			3,293
Sunstone Hotel Investors (a)			113,102			3,332
SVB Financial (a) (b)			98,362			4,527
Triad Guaranty (b)			65,128			3,355
United Community Banks (a)			107,329			3,374
Waddell & Reed Financial, Class A (a)			169,077			4,311

						35,642

Healthcare – 18.9%
American Medical Systems (a) (b)			246,203			4,385
ArthroCare (a) (b)			97,348			3,934
BioMarin Pharmaceutical (b)			105,806			1,696
Durect (a) (b)			563,107			2,618
ev3 (a) (b)			267,539			4,586
Horizon Health (a) (b)			149,514			2,313
Human Genome Sciences (a) (b)			327,934			4,378
ICOS (a) (b)			92,389			2,931
Immucor (b)			75,987			2,092
Integra LifeSciences (a) (b)			105,858			3,909
Keryx Biopharmaceuticals (a) (b)			222,047			3,118
Kyphon (a) (b)			83,404			3,294
Myriad Genetics (a) (b)			117,209			3,152
Pediatrix Medical Group (b)			123,415			5,545
Salix Pharmaceuticals (a) (b)			306,321			4,083
Techne (b)			80,712			4,510
TriZetto Group (a) (b)			245,111			4,189
United Therapeutics (a) (b)			32,918			1,970

						62,703

Industrials – 14.9%
Advisory Board (a) (b)			63,546			3,509
AMETEK (a)			112,892			5,270
DRS Technologies (a)			105,182			4,651
ESCO Technologies (a) (b)			44,698			1,941
Forward Air (a)			103,516			3,361
Labor Ready (b)			201,492			3,528
McGrath Rentcorp (a)			90,788			2,452
Mobile Mini (a) (b)			96,425			3,102
Mueller Water Products, Class A (a) (b)			248,124			3,963
Navigant Consulting (a) (b)			178,671			3,182
RBC Bearings (a) (b)			176,353			4,793
Resources Connection (b)			167,699			4,853
WESCO International (a) (b)			76,868			5,017

						49,622

Information Technology (c) – 30.4%
aQuantive (a) (b)			189,980			5,164
ATMI (a) (b)			84,916			2,691
AudioCodes (a) (b)			242,061			2,682
Avocent (a) (b)			140,842			5,170
Cymer (a) (b)			82,310			3,813
Daktronics			184,168			4,367
Digitas (b)			403,952			4,266
Emulex (b)			456,579			8,584
Forrester Research (b)			78,978			2,482
Ixia (a) (b)			598,172			5,473
Kanbay International (a) (b)			231,393			6,572
Kronos (a) (b)			69,030			2,340
Lawson Software (b)			713,239			5,435
Micrel (b)			395,359			4,412
Microsemi (a) (b)			237,797			4,661
Orbotech (b)			187,904			4,538
PMC-Sierra (a) (b)			851,972			5,649
Quest Software (a) (b)			239,142			3,523
RADVision (b)			203,985			3,910
RightNow Technologies (a) (b)			257,590			4,255
Semtech (a) (b)			324,909			4,234
Silicon Motion Technology – ADR (a) (b)			216,784			3,332
Tridium, Class B, Escrow Shares (b) (d) (e)			278,500			71
Varian Semiconductor Equipment Associates (a) (b)			87,566			3,195
VideoPropulsion (b) (d) (e)			784,710			—

						100,819

Total Common Stocks
	(Cost $305,154)					323,869

Warrants – 0.1%
Hollis-Eden Pharmaceuticals Warrants (d) (e)			70,545			130
Kuhlman Company Warrants (d) (e) (f)			281,680			—

Total Warrants
	(Cost $434)					130

Short-Term Investment – 2.6%
First American Prime Obligations Fund, Class Z (g) (Cost $8,612)			8,612,435			8,612

Investments Purchased with Proceeds from Securities Lending (h) – 46.1%
	(Cost $152,967)					152,967

Total Investments – 146.4%
	(Cost $467,167)					485,578

Other Assets and Liabilities, Net – (46.4)%						(153,836	)

Total Net Assets – 100.0%					$	331,742


(a)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $147,157 at October 31, 2006. See note 2 in Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

58 First American Funds Annual Report 2006

Small Cap Growth Opportunities Fund (concluded)


(b)	Non-income producing security.

(c)	The fund is significantly invested in this sector and therefore is subject to additional risks. See note 6 in Notes to Financial Statements.

(d)	Security considered illiquid or restricted. As of October 31, 2006, the market value of these investments was $201 or 0.1% of total net assets. See Note 2 in Notes to Financial Statements.

(e)	Security is fair valued. As of October 31, 2006, the fair value of these investments was $201 or 0.1% of total net assets. See Note 2 in Notes to Financial Statements.


(f)	A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings of that company represent 5% or more of the outstanding voting securities of the company. Transactions with companies that are or were affiliates during the fiscal year ended October 31, 2006 are as follows:


	Beginning		Purchase		Sales		Ending		Dividend
Issuer	Cost		Cost		Cost		Cost		Income		Value

Kuhlman Company	$	—	$	2,896	$	2,896	$	—	$	—	$	—
Kuhlman Company		—		112		112		—		—		—
Kuhlman Company Warrants		—		273		—		273		—		—


(g)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(h)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various money market funds and short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

ADR – American Depository Receipt

REIT – Real Estate Investment Trust

First American Funds Annual Report 2006 59

Schedule of Investments October 31, 2006, all dollars rounded to thousands (000)


Small Cap Select Fund
DESCRIPTION	SHARES		VALUE

Common Stocks – 96.3%
Consumer Discretionary – 15.6%
Cheesecake Factory (a) (b)		141,328	$	3,993
Children’s Place Retail Stores (a) (b)		169,112		11,870
Christopher & Banks		317,582		8,572
Cosi (a) (b)		1,351,761		5,880
GSI Commerce (a) (b)		474,176		8,549
Hibbett Sporting Goods (a) (b)		274,948		8,039
Interface, Class A (b)		661,427		9,624
McCormick & Schmick’s Seafood Restaurants (b)		159,529		4,194
Nautilus Group (a)		1,447,222		20,449
Nutri/ System (a) (b)		246,150		15,183
P.F. Chang’s China Bistro (a) (b)		122,392		5,118
RARE Hospitality International (a) (b)		146,726		4,623
Ruth’s Chris Steak House (b)		349,752		6,887
Scientific Games, Class A (a) (b)		474,802		13,309
Station Casinos (a)		78,446		4,730
Texas Roadhouse, Class A (b)		404,062		5,839
Tween Brands (a) (b)		209,223		8,750
WCI Communities (a) (b)		307,890		4,963
WMS Industries (a) (b)		122,113		4,314

				154,886

Consumer Staples – 3.5%
Central Garden & Pet (a) (b)		245,325		12,259
Reddy Ice Holdings		222,956		5,351
Reliv International (a)		533,350		5,333
USANA Health Sciences (a) (b)		260,742		11,713

				34,656

Energy – 5.4%
Arena Resources (a) (b)		94,883		3,389
Brigham Exploration (b)		965,172		7,519
Compton Petroleum (b)		676,044		7,176
Comstock Resources (a) (b)		318,535		8,887
Helix Energy Solutions Group (a) (b)		317,735		10,263
St. Mary Land & Exploration (a)		183,843		6,855
Western Refining (a)		244,040		5,750
W-H Energy Services (a) (b)		81,374		3,811

				53,650

Financials – 18.7%
Affiliated Managers Group (a) (b)		150,901		15,111
BioMed Realty Trust – REIT (a)		313,619		10,108
CoBiz (a)		128,038		2,894
Columbia Banking System (a)		164,994		5,227
Cullen/ Frost Bankers		252,983		13,702
Dime Community Bancshares		485,087		6,767
East West Bancorp (a)		321,535		11,739
First Financial Bankshares (a)		113,236		4,537
First Marblehead (a)		33,875		2,285
First Potomac Realty Trust – REIT (a)		343,930		10,641
First Republic Bank – California (a)		312,644		12,174
Independent Bank (a)		259,728		8,698
Investors Financial Services (a)		174,853		6,875
Kite Realty Group Trust – REIT		484,451		8,885
LaSalle Hotel Properties – REIT (a)		115,816		4,893
Maguire Properties – REIT (a)		98,911		4,229
Newcastle Investment – REIT (a)		231,731		6,876
NorthStar Realty Finance – REIT		364,528		5,523
Platinum Underwriters Holdings		399,068		11,916
SL Green Realty – REIT (a)		83,242		10,076
The South Financial Group		184,905		4,906
Thomas Weisel Partners Group (a) (b)		468,407		7,499
Umpqua Holdings (a)		264,473		7,469
Winston Hotels – REIT		182,933		2,214

				185,244

Healthcare – 13.9%
Caliper Life Sciences (b)		328,861		1,677
Curis (a) (b)		1,267,090		1,901
Dexcom (a) (b)		218,108		1,919
DJ Orthopedics (a) (b)		246,048		9,898
Healthways (a) (b)		150,950		6,393
Horizon Health (a) (b)		334,874		5,180
Human Genome Sciences (a) (b)		413,533		5,521
ICU Medical (a) (b)		228,329		9,647
Immucor (b)		248,327		6,836
ImmunoGen (a) (b)		731,871		2,920
K-V Pharmaceutical, Class A (b)		242,050		5,403
LCA-Vision (a)		247,992		8,712
Magellan Health Services (b)		316,024		13,791
Medarex (a) (b)		377,387		4,876
Merge Technologies (a) (b)		426,203		3,286
Neurocrine Biosciences (a) (b)		75,744		875
Pediatrix Medical Group (b)		433,040		19,456
Quidel (b)		120,348		1,868
Salix Pharmaceuticals (a) (b)		558,733		7,448
Senomyx (a) (b)		316,793		4,885
SonoSite (b)		97,502		2,779
SurModics (a) (b)		168,761		5,890
Vertex Pharmaceuticals (a) (b)		156,185		6,341

				137,502

Industrials – 15.1%
Acuity Brands (a)		102,410		5,073
AirTran Holdings (a) (b)		1,376,382		13,723
AMETEK (a)		320,981		14,983
CLARCOR (a)		111,763		3,641
CRA International (a) (b)		179,695		9,134
Energy Conversion Devices (a) (b)		84,569		3,111
ESCO Technologies (a) (b)		85,909		3,730
Forward Air		337,183		10,948
Kennametal		80,012		4,938
KVH Industries (b) (c)		76,901		840
Labor Ready (b)		698,993		12,239
Lennox International (a)		510,896		13,774
Manitowoc		151,073		8,291
NCI Building Systems (a) (b)		168,521		10,086
Power-One (a) (b)		1,305,853		8,932
Steelcase, Class A (a)		670,127		11,104
Timken (a)		182,444		5,483
WESCO International (b)		154,672		10,095

				150,125
Information Technology – 19.6%
Advanced Analogic Technologies (a) (b)		791,391		4,923
Aeroflex (b)		253,644		2,739
BISYS Group (b)		1,583,137		17,478
Cogent (a) (b)		467,671		5,378
Digital River (a) (b)		102,715		5,942
Digitas (a) (b)		1,066,594		11,263
Entegris (a) (b)		1,655,071		18,553
F5 Networks (b)		185,726		12,293
Harmonic (a) (b)		689,598		5,593
Hutchinson Technology (a) (b)		557,686		12,910
Hyperion Solutions (b)		346,970		12,977
Plexus (b)		177,644		3,894
PMC-Sierra (a) (b)		1,484,786		9,844
Progress Software (b)		270,942		7,800
Rackable Systems (a) (b)		188,664		5,851

The accompanying notes are an integral part of the financial statements.

60 First American Funds Annual Report 2006


Small Cap Select Fund (concluded)
DESCRIPTION		SHARES		VALUE

Silicon Image (b)			831,702	$	9,839
Stellent			691,481		7,724
Stratasys (a) (b)			181,441		5,059
Stratex Networks (a) (b)			1,400,381		6,540
Tessera Technologies (a) (b)			263,940		9,214
TIBCO Software (a) (b)			874,061		8,085
Trident Microsystems (a) (b)			480,983		10,168

					194,067

Materials – 3.3%
Albemarle			192,859		12,541
Century Aluminum (a) (b)			139,310		5,422
Schnitzer Steel Industries, Class A (a)			227,288		7,946
Texas Industries (a)			117,808		7,316

					33,225

Telecommunication Services – 0.7%
General Communication, Class A (b)			523,630		6,865

Utilities – 0.5%
NSTAR (a)			130,827		4,552

Total Common Stocks
	(Cost $853,090)				954,772

Short-Term Investment – 3.2%
First American Prime Obligations Fund, Class Z (d)
	(Cost $31,319)		31,319,327		31,319

Investments Purchased with Proceeds from Securities Lending (e) – 40.5%
	(Cost $401,159)				401,159

Total Investments – 140.0%
	(Cost $1,285,568)				1,387,250

Other Assets and Liabilities, Net – (40.0)%					(396,137	)

Total Net Assets – 100.0%				$	991,113


(a)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $384,336 at October 31, 2006. See note 2 in Notes to Financial Statements.

(b)	Non-income producing security.

(c)	A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings of that company represent 5% or more of the outstanding voting securities of the company. Transactions with companies that are or were affiliates during the fiscal year ended October 31, 2006 are as follows:


	Beginning		Purchase		Sales		Ending		Dividend
Issuer	Cost		Cost		Cost		Cost		Income		Value

KVH Industries	$	8,072	$	264	$	7,628	$	708	$	—	$	840


(d)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(e)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various money market funds and short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

REIT – Real Estate Investment Trust

First American Funds Annual Report 2006 61

Schedule of Investments October 31, 2006, all dollars rounded to thousands (000)


Small Cap Value Fund
	SHARES
DESCRIPTION			VALUE

Common Stocks – 96.9%
Consumer Discretionary – 13.8%
Aeropostale (a) (b)		191,995	$	5,627
Ameristar Casinos (a)		176,435		4,342
Belo, Class A (a)		231,446		4,055
Callaway Golf (a)		283,221		3,804
Dominos Pizza (a)		159,484		4,335
Ethan Allen Interiors (a)		115,652		4,120
Interface, Class A (a) (b)		441,911		6,430
Men’s Wearhouse (a)		127,653		5,087
Nautilus Group (a)		385,358		5,445
P.F. Chang’s China Bistro (a) (b)		58,738		2,456
Polaris Industries (a)		58,902		2,522
Select Comfort (a) (b)		249,440		5,333
Wolverine World Wide (a)		190,064		5,390

				58,946

Consumer Staples – 2.0%
Nu Skin Enterprises, Class A		233,552		4,466
Ralcorp Holdings (a) (b)		81,566		4,033

				8,499

Energy – 4.9%
Brigham Exploration (b)		503,537		3,923
Cimarex Energy (a)		113,613		4,092
Global Industries (b)		185,356		3,077
Penn Virginia (a)		36,906		2,641
Swift Energy (a) (b)		90,459		4,226
Whiting Petroleum (a) (b)		67,248		3,000

				20,959

Financials (c) – 32.2%
Alabama National BanCorporation (a)		68,384		4,640
BioMed Realty Trust – REIT (a)		136,245		4,391
Boston Private Financial Holdings (a)		77,047		2,130
Capitol Bancorp		114,062		5,352
CBL & Associates Properties – REIT (a)		103,370		4,520
Citizens Banking (a)		176,374		4,580
Delphi Financial Group, Class A (a)		136,095		5,342
First Midwest Bancorp (a)		145,969		5,551
First Niagara Financial Group (a)		209,276		2,997
First Potomac Realty Trust – REIT		154,830		4,790
First Republic Bank – California (a)		102,447		3,989
FPIC Insurance Group (a) (b)		106,683		3,813
Frontier Financial (a)		187,098		5,428
Home Bancshares (a)		74,112		1,635
Independent Bank (a)		146,220		4,897
Knight Capital Group, Class A (b)		139,509		2,602
LaSalle Hotel Properties – REIT		47,586		2,010
Mercantile Bank		106,716		4,233
Mid-America Apartment Communities – REIT (a)		56,049		3,567
Newcastle Investment – REIT		206,986		6,141
Ohio Casualty (a)		154,354		4,234
PFF Bancorp		153,196		4,751
Platinum Underwriters Holdings		125,700		3,753
Provident Bankshares (a)		130,740		4,725
PS Business Parks – REIT		58,661		3,863
Reckson Associates Realty – REIT		72,320		3,191
Redwood Trust – REIT (a)		94,730		5,207
Selective Insurance Group (a)		94,149		5,202
Sterling Bancshares		179,724		3,291
Strategic Hotels & Resorts – REIT (a)		202,865		4,315
Triad Guaranty (a) (b)		71,068		3,661
Waddell & Reed Financial, Class A (a)		209,958		5,354
Windrose Medical Properties Trust – REIT		175,568		3,276

				137,431

Healthcare – 7.1%
CNS		126,839		4,700
Horizon Health (a) (b)		134,244		2,077
Perrigo (a)		330,090		5,905
Sciele Pharma (b)		98,367		2,145
Sierra Health Services (b)		120,294		4,119
STERIS		191,590		4,669
Tanox (a) (b)		105,012		1,410
Varian (b)		116,740		5,474

				30,499

Industrials – 12.9%
Acuity Brands (a)		94,110		4,662
AMETEK		105,541		4,927
Arkansas Best (a)		54,992		2,253
Armor Holdings (a) (b)		75,951		3,908
Brady, Class A (a)		101,350		3,750
Crane		105,351		4,102
ESCO Technologies (a) (b)		69,287		3,008
Forward Air		67,620		2,196
Labor Ready (b)		182,165		3,190
Moog, Class A (b)		127,627		4,760
Nordson		56,523		2,603
Regal-Beloit (a)		108,733		5,377
Trinity Industries (a)		74,145		2,674
URS (b)		100,240		4,051
WESCO International (b)		53,011		3,460

				54,921

Information Technology – 13.1%
Altiris (b)		97,456		2,194
AMIS Holdings (b)		107,982		1,036
BISYS Group (b)		525,892		5,806
Emulex (b)		219,964		4,135
Entegris (a) (b)		299,546		3,358
Hutchinson Technology (a) (b)		229,466		5,312
Hypercom (a) (b)		341,489		2,216
NETGEAR (a) (b)		139,582		3,741
Palm (a) (b)		201,651		3,095
Plantronics (a)		113,663		2,399
Polycom (a) (b)		79,396		2,176
Progress Software (b)		117,197		3,374
Rudolph Technologies (a) (b)		120,894		2,135
Silicon Image (b)		413,531		4,892
Skyworks Solutions (b)		373,443		2,476
TIBCO Software (b)		303,485		2,807
Transaction Systems Architects (b)		58,369		1,968
United Online (a)		223,143		3,017

				56,137

Materials – 5.5%
Albemarle		60,656		3,945
Arch Chemicals (a)		102,091		3,416
Commercial Metals		179,231		4,769
Hercules (a) (b)		121,890		2,218
Steel Dynamics (a)		60,195		3,618
Texas Industries (a)		91,476		5,681

				23,647
Telecommunication Services – 0.9%
Cincinnati Bell (b)		795,476		3,731

The accompanying notes are an integral part of the financial statements.

62 First American Funds Annual Report 2006


Small Cap Value Fund (concluded)
DESCRIPTION		SHARES		VALUE

Utilities – 4.5%
Black Hills (a)			146,615	$	5,060
El Paso Electric (b)			234,154		5,470
Northwest Natural Gas			56,625		2,343
South Jersey Industries			68,968		2,133
Westar Energy (a)			169,288		4,286

					19,292

Total Common Stocks
	(Cost $353,960)				414,062

Short-Term Investment – 4.4%
First American Prime Obligations Fund, Class Z (d)
	(Cost $18,983)		18,982,993		18,983

Investments Purchased with Proceeds from Securities Lending (e) – 35.8%
	(Cost $152,800)				152,800

Total Investments – 137.1%
	(Cost $525,743)				585,845

Other Assets and Liabilities, Net – (37.1)%					(158,666	)

Total Net Assets – 100.0%				$	427,179


(a)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $147,057 at October 31, 2006. See note 2 in Notes to Financial Statements.

(b)	Non-income producing security.

(c)	The fund is significantly invested in this sector and therefore is subject to additional risks. See note 6 in Notes to Financial Statements.

(d)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(e)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various money market funds and short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

REIT – Real Estate Investment Trust

First American Funds Annual Report 2006 63

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Small-Mid Cap Core Fund
DESCRIPTION		SHARES		VALUE

Common Stocks – 99.5%
Consumer Discretionary – 16.9%
Autoliv			24,181	$	1,375
BorgWarner (a)			17,924		1,031
Christopher & Banks			42,225		1,140
Circuit City Stores (a)			29,544		797
Coldwater Creek (a) (b)			58,753		1,791
Darden Restaurants			26,569		1,113
Dollar Tree Stores (a) (b)			58,979		1,834
Ethan Allen Interiors (a)			29,353		1,046
Interface, Class A (b)			136,628		1,988
Newell Rubbermaid			17,434		502
Nutri/ System (a) (b)			35,900		2,214
Polaris Industries (a)			16,730		716
Stanley Works			20,115		958
WMS Industries (b)			44,654		1,578

					18,083

Consumer Staples – 2.2%
Corn Products International			29,596		1,071
USANA Health Sciences (b)			28,889		1,298

					2,369

Energy – 6.2%
Brigham Exploration (b)			72,977		568
Cimarex Energy			26,655		960
Global Industries (a) (b)			52,017		863
Hydril (a) (b)			18,430		1,107
Lufkin Industries (a)			14,626		883
Newfield Exploration (b)			35,200		1,436
St. Mary Land & Exploration (a)			23,641		882

					6,699

Financials – 21.1%
Ambac Financial Group			6,670		557
Astoria Financial (a)			33,421		970
CBL & Associates Properties – REIT (a)			15,624		683
CIT Group			26,749		1,392
Citizens Banking (a)			23,772		617
City National			19,673		1,310
Cullen/ Frost Bankers			32,190		1,743
Frontier Financial (a)			19,815		575
LaSalle Hotel Properties – REIT (a)			32,297		1,365
Maguire Properties – REIT			16,005		684
MGIC Investment (a)			17,080		1,004
Newcastle Investment – REIT			64,080		1,901
Ohio Casualty (a)			40,431		1,109
PMI Group (a)			39,363		1,679
Redwood Trust – REIT (a)			27,052		1,487
Selective Insurance Group (a)			11,860		655
SL Green Realty – REIT (a)			7,453		902
Triad Guaranty (b)			24,080		1,240
Umpqua Holdings			30,534		862
W.R. Berkley			51,748		1,908

					22,643

Healthcare – 10.4%
Coventry Health Care (b)			22,843		1,072
Endo Pharmaceuticals (b)			45,919		1,310
Healthways (b)			11,425		484
ICU Medical (a) (b)			19,956		843
Immucor (b)			70,615		1,944
Kyphon (a) (b)			41,513		1,640
LCA-Vision (a)			25,247		887
Pediatrix Medical Group (b)			44,279		1,989
SurModics (a) (b)			27,164		948

					11,117

Industrials – 16.6%
AMETEK			37,008		1,728
Armor Holdings (a) (b)			28,372		1,460
Dun & Bradstreet (a) (b)			22,580		1,744
ESCO Technologies (a) (b)			20,390		885
Joy Global			28,540		1,116
L-3 Communications Holdings			13,739		1,106
Labor Ready (b)			111,426		1,951
Lennox International			23,738		640
MSC Industrial Direct, Class A			14,613		598
Navigant Consulting (a) (b)			49,580		883
Republic Services			43,596		1,788
Steelcase, Class A (a)			52,126		864
Toro (a)			45,040		1,944
WESCO International (b)			17,094		1,116

					17,823

Information Technology – 16.7%
Amphenol, Class A			12,486		848
Autodesk (b)			25,077		922
BISYS Group (b)			60,966		673
Digitas (b)			119,223		1,259
Emulex (b)			144,905		2,724
Entegris (a) (b)			99,859		1,119
Fairchild Semiconductor International (b)			33,880		546
Harris			12,384		528
Hyperion Solutions (b)			33,495		1,253
Ixia (b)			53,280		487
MEMC Electronic Materials (b)			29,185		1,036
Micrel (b)			120,795		1,348
National Semiconductor (a)			26,916		654
Polycom (a) (b)			60,621		1,661
Sybase (b)			29,742		724
TIBCO Software (b)			101,496		939
United Online			88,012		1,190

					17,911

Materials – 5.7%
Albemarle			26,675		1,735
Commercial Metals			72,901		1,940
Packaging Corporation of America			25,100		576
Steel Dynamics (a)			20,191		1,214
Texas Industries (a)			11,069		687

					6,152
Telecommunication Services – 0.7%
CenturyTel (a)			18,583		748

Utilities – 3.0%
NSTAR (a)			25,286		879
Westar Energy (a)			47,900		1,213
Wisconsin Energy			25,425		1,168

					3,260

Total Common Stocks
	(Cost $99,051)				106,805

The accompanying notes are an integral part of the financial statements.

64 First American Funds Annual Report 2006


Small-Mid Cap Core Fund (concluded)
DESCRIPTION		SHARES		VALUE

Short-Term Investment – 0.4%
First American Prime Obligations Fund, Class Z (c)
	(Cost $405)		404,972	$	405

Investments Purchased with Proceeds from Securities Lending (d) – 31.1%
	(Cost $33,398)				33,398

Total Investments – 131.0%
	(Cost $132,854)				140,608

Other Assets and Liabilities, Net – (31.0)%					(33,306	)

Total Net Assets – 100.0%				$	107,302


(a)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $32,240 at October 31, 2006. See note 2 in Notes to Financial Statements.

(b)	Non-income producing security.

(c)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(d)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various money market funds and short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

REIT – Real Estate Investment Trust

First American Funds Annual Report 2006 65

Statements of Assets and Liabilities October 31, 2006, all dollars and shares are rounded to thousands (000), except for per share data


	Small Cap
	Growth
	Opportunities		Small Cap		Small Cap		Small-Mid Cap
	Fund		Select Fund		Value Fund		Core Fund

Investments in unaffiliated securities, at cost	$	305,588	$	853,090	$	353,960	$	99,051
Investments in affiliated money market fund, at cost		8,612		31,319		18,983		405
Investments purchased with proceeds from securities lending, at cost (note 2)		152,967		401,159		152,800		33,398

ASSETS:
Investments in unaffiliated securities, at value* (note 2)	$	323,999	$	954,772	$	414,062	$	106,805
Investments in affiliated money market fund, at value (note 2)		8,612		31,319		18,983		405
Investments purchased with proceeds from securities lending (note 2)		152,967		401,159		152,800		33,398
Cash		—		—		—		3
Receivable for dividends and interest		156		578		345		47
Receivable for investment securities sold		5,359		23,677		—		4,860
Receivable for capital shares sold		408		1,759		312		124
Prepaid expenses and other assets		40		40		38		29

Total assets		491,541		1,413,304		586,540		145,671

LIABILITIES:
Payable for capital shares redeemed		538		2,053		431		136
Payable upon return of securities loaned (note 2)		152,967		401,159		152,800		33,398
Payable for investment securities purchased		5,915		18,101		5,724		4,715
Payable to affiliates (note 3)		322		776		359		86
Payable for distribution and shareholder servicing fees		37		67		23		17
Accrued expenses and other liabilities		20		35		24		17

Total liabilities		159,799		422,191		159,361		38,369

Net assets	$	331,742	$	991,113	$	427,179	$	107,302

COMPOSITION OF NET ASSETS:
Portfolio capital	$	299,150	$	790,790	$	304,509	$	550,482
Undistributed net investment income		—		—		—		93
Accumulated net realized gain (loss) on investments		14,181		98,641		62,568		(451,027	)
Net unrealized appreciation of investments		18,411		101,682		60,102		7,754

Net assets	$	331,742	$	991,113	$	427,179	$	107,302

* Including securities loaned, at value	$	147,157	$	384,336	$	147,057	$	32,240

Class A:
Net assets	$	138,786	$	222,293	$	57,922	$	26,190
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		6,774		14,699		3,767		2,738
Net asset value and redemption price per share	$	20.49	$	15.12	$	15.38	$	9.57
Maximum offering price per share ⁽¹⁾	$	21.68	$	16.00	$	16.28	$	10.13
Class B:
Net assets	$	6,540	$	15,077	$	7,855	$	8,689
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		349		1,171		564		1,042
Net asset value, offering price, and redemption price per share ⁽²⁾	$	18.76	$	12.88	$	13.93	$	8.34
Class C:
Net assets	$	2,664	$	18,794	$	4,405	$	4,986
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		136		1,309		311		549
Net asset value, offering price and redemption price per share ⁽²⁾	$	19.53	$	14.36	$	14.17	$	9.09
Class R⁽³⁾:
Net assets	$	1,323	$	2,697	$	1,849	$	—
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		65		180		121		—
Net asset value, offering price, and redemption price per share	$	20.39	$	14.98	$	15.24	$	—
Class Y:
Net assets	$	182,429	$	732,252	$	355,148	$	67,437
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		8,422		45,599		22,602		6,776
Net asset value, offering price, and redemption price per share	$	21.66	$	16.06	$	15.71	$	9.95


	(1)	The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%
	(2)	Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements.
	(3)	Class R is not offered by the Small-Mid Cap Core Fund.

The accompanying notes are an integral part of the financial statements.

66 First American Funds Annual Report 2006

Statements of Operations For the year ended October 31, 2006, all dollars are rounded to thousands (000)


	Small Cap
	Growth
	Opportunities			Small Cap			Small Cap			Small-Mid Cap
	Fund			Select Fund			Value Fund			Core Fund

INVESTMENT INCOME:
Dividends from affiliated money market fund	$	438		$	1,189		$	363		$	69
Dividends from unaffiliated securities		1,175			5,125			5,587			1,332
Less: Foreign taxes withheld		—			(6	)		—			—
Securities lending income		265			1,053			223			49

Total investment income		1,878			7,361			6,173			1,450

EXPENSES (note 3):
Investment advisory fees		3,163			6,102			2,925			674
Administration fees		513			1,408			679			170
Transfer agent fees		350			884			441			184
Custodian fees		16			49			22			6
Professional fees		35			34			35			18
Registration fees		63			66			59			57
Postage and printing fees		26			57			28			25
Directors’ fees		17			23			18			14
Other expenses		22			24			23			20
Distribution and shareholder servicing fees – Class A		234			332			131			64
Distribution and shareholder servicing fees – Class B		78			144			85			94
Distribution and shareholder servicing fees – Class C		29			157			45			44
Distribution and shareholder servicing fees – Class R ⁽¹⁾		2			9			5			—

Total expenses		4,548			9,289			4,496			1,370

Less: Fee waivers (note 3)		(332	)		(2	)		(1	)		(68	)
Less: Indirect payments from custodian (note 3)		(6	)		(14	)		(2	)		(1	)

Total net expenses		4,210			9,273			4,493			1,301

Investment income (loss) – net		(2,332	)		(1,912	)		1,680			149

REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS – NET (note 5):
Net realized gain (loss) on affiliated investments		(2,847	)		684			—			—
Net realized gain on unaffiliated investments		20,657			152,452			77,955			4,374
Net realized loss on in-kind redemption (note 9)		(247	)		—			—			—
Net change in unrealized appreciation or depreciation of investments		16,707			23,065			(534	)		10,366

Net gain on investments		34,270			176,201			77,421			14,740

Net increase in net assets resulting from operations	$	31,938		$	174,289		$	79,101		$	14,889


	(1)	Class R is not offered by the Small-Mid Cap Core Fund.

First American Funds Annual Report 2006 67

Statements of Changes in Net Assets all dollars are rounded to thousands (000)


		Small Cap Growth
		Opportunities Fund

					One-Month
					Fiscal
		Year Ended			Period Ended			Year Ended
		10/31/06			10/31/05			9/30/05


OPERATIONS:
Investment income (loss) – net		$	(2,332	)	$	(263	)	$	(4,004	)
Net realized gain (loss) on affiliated investments			(2,847	)		—			—
Net realized gain on unaffiliated investments			20,657			946			70,779
Net realized loss on in-kind redemption			(247	)		—			—
Net change in unrealized appreciation or depreciation of investments			16,707			(13,513	)		3,567

Net increase (decrease) in net assets resulting from operations			31,938			(12,830	)		70,342


DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income – net:
	Class A		—			—			—
	Class B		—			—			—
	Class C		—			—			—
	Class R		—			—			—
	Class Y		—			—			—
Net realized gain on investments:
	Class A		(15,190	)		—			(12,315	)
	Class B		(1,681	)		—			(1,255	)
	Class C		(580	)		—			(577	)
	Class R		(1	)		—			—
	Class Y		(38,069	)		—			(25,220	)

Total distributions			(55,521	)		—			(39,367	)


CAPITAL SHARE TRANSACTIONS (note 4):
Class A:
	Proceeds from sales		80,056			922			17,883
	Reinvestment of distributions		14,824			—			11,923
	Payments for redemptions		(32,674	)		(3,649	)		(54,396	)

Increase (decrease) in net assets from Class A transactions			62,206			(2,727	)		(24,590	)

Class B:
	Proceeds from sales		523			11			590
	Reinvestment of distributions		1,555			—			1,157
	Payments for redemptions (note 3)		(2,849	)		(141	)		(2,716	)

Increase (decrease) in net assets from Class B transactions			(771	)		(130	)		(969	)

Class C:
	Proceeds from sales		999			25			501
	Reinvestment of distributions		576			—			561
	Payments for redemptions (note 3)		(1,520	)		(86	)		(2,841	)

Increase (decrease) in net assets from Class C transactions			55			(61	)		(1,779	)

Class R⁽¹⁾:
	Proceeds from sales		1,386			—			17
	Reinvestment of distributions		1			—			—
	Payments for redemptions		(76	)		—			(15	)

Increase in net assets from Class R transactions			1,311			—			2

Class Y:
	Proceeds from sales		40,576			3,340			38,132
	Reinvestment of distributions		29,517			—			18,850
	Payments for redemptions		(77,933	)		(4,484	)		(82,561	)

Increase (decrease) in net assets from Class Y transactions			(7,840	)		(1,144	)		(25,579	)

Increase (decrease) in net assets from capital share transactions			54,961			(4,062	)		(52,915	)

Total increase (decrease) in net assets			31,378			(16,892	)		(21,940	)
Net assets at beginning of period			300,364			317,256			339,196

Net assets at end of period		$	331,742		$	300,364		$	317,256

Undistributed (distributions in excess of) net investment income at end of period		$	—		$	(1	)	$	(1	)


	(1)	Class R is not offered by the Small-Mid Cap Core Fund.

The accompanying notes are an integral part of the financial statements.

68 First American Funds Annual Report 2006


Small Cap									Small Cap									Small-Mid Cap
Select Fund									Value Fund									Core Fund

			One-Month									One-Month									One-Month
			Fiscal Period									Fiscal Period									Fiscal Period
Year Ended			Ended			Year Ended			Year Ended			Ended			Year Ended			Year Ended			Ended			Year Ended
10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05



$	(1,912	)	$	(506	)	$	(2,926	)	$	1,680		$	335		$	1,636		$	149		$	(52	)	$	(737	)
	684			(305	)		—			—			—			—			—			—			—
	152,452			10,689			184,051			77,955			7,871			94,694			4,374			3,985			8,526
	—			—			—			—			—			—			—			—			—
	23,065			(36,382	)		(17,021	)		(534	)		(19,471	)		(28,747	)		10,366			(6,380	)		2,726

	174,289			(26,504	)		164,104			79,101			(11,265	)		67,583			14,889			(2,447	)		10,515



	—			—			—			(145	)		—			(177	)		—			—			—
	—			—			—			—			—			(23	)		—			—			—
	—			—			—			—			—			(11	)		—			—			—
	—			—			—			(2	)		—			—			—			—			—
	—			—			—			(1,819	)		—			(1,626	)		—			—			—
	(21,746	)		—			(19,383	)		(10,660	)		—			(6,876	)		—			—			—
	(3,108	)		—			(2,778	)		(2,162	)		—			(1,565	)		—			—			—
	(2,833	)		—			(2,801	)		(1,094	)		—			(747	)		—			—			—
	(130,679	)		—			(5	)		(75,707	)		—			—			—			—			—
	(82	)		—			(133,034	)		(19	)		—			(55,117	)		—			—			—

	(158,448	)		—			(158,001	)		(91,608	)		—			(66,142	)		—			—			—



	133,764			2,296			24,096			12,626			547			8,656			11,715			784			5,250
	21,190			—			18,716			10,483			—			6,859			—			—			—
	(40,923	)		(1,656	)		(32,858	)		(10,454	)		(928	)		(10,711	)		(11,925	)		(676	)		(12,848	)

	114,031			640			9,954			12,655			(381	)		4,804			(210	)		108			(7,598	)


	2,081			32			1,593			422			31			872			416			22			454
	2,956			—			2,700			2,072			—			1,539			—			—			—
	(3,022	)		(202	)		(2,957	)		(2,975	)		(193	)		(2,854	)		(3,430	)		(290	)		(4,645	)

	2,015			(170	)		1,336			(481	)		(162	)		(443	)		(3,014	)		(268	)		(4,191	)


	7,783			189			3,374			825			28			942			2,029			50			405
	2,746			—			2,745			1,069			—			745			—			—			—
	(5,254	)		(690	)		(5,249	)		(1,809	)		(114	)		(1,441	)		(2,015	)		(128	)		(2,541	)

	5,275			(501	)		870			85			(86	)		246			14			(78	)		(2,136	)


	2,537			119			337			1,900			—			3			—			—			—
	82			—			5			22			—			—			—			—			—
	(352	)		(90	)		(57	)		(196	)		—			—			—			—			—

	2,267			29			285			1,726			—			3			—			—			—


	129,554			3,703			102,349			50,760			2,852			63,025			49,629			1,168			17,409
	103,456			—			98,881			66,461			—			48,592			—			—			—
	(195,174	)		(14,868	)		(263,925	)		(99,660	)		(8,344	)		(117,619	)		(22,033	)		(2,179	)		(32,835	)

	37,836			(11,165	)		(62,695	)		17,561			(5,492	)		(6,002	)		27,596			(1,011	)		(15,426	)

	161,424			(11,167	)		(50,250	)		31,546			(6,121	)		(1,392	)		24,386			(1,249	)		(29,351	)

	177,265			(37,671	)		(44,147	)		19,039			(17,386	)		49			39,275			(3,696	)		(18,836	)
	813,848			851,519			895,666			408,140			425,526			425,477			68,027			71,723			90,559

$	991,113		$	813,848		$	851,519		$	427,179		$	408,140		$	425,526		$	107,302		$	68,027		$	71,723

$	—		$	(1	)	$	(1	)	$	—		$	335		$	—		$	93		$	—		$	—

First American Funds Annual Report 2006 69

Financial Highlights For a share outstanding throughout the indicated periods.


							Realized and
		Net Asset					Unrealized			Distributions			Distributions			Net Asset
		Value		Net			Gains			from Net			from			Value
		Beginning		Investment			(Losses) on			Realized			Return of			End of
		of Period		Loss			Investments			Gains			Capital			Period

Small Cap Growth Opportunities Fund
Class A
	2006 (1)(2)	$	22.79	$	(0.18	)	$	2.37		$	(4.49	)	$	—		$	20.49
	2005 (2)(3)		23.75		(0.02	)		(0.94	)		—			—			22.79
	2005 (2)(4)		21.74		(0.32	)		5.28			(2.95	)		—			23.75
	2004 (2)(4)		21.95		(0.35	)		0.27			(0.13	)		—			21.74
	2003 (2)(4)		13.86		(0.28	)		8.37			—			—			21.95
	2002 (4)		16.89		(0.26	)		(2.74	)		—			(0.03	)		13.86
Class B
	2006 (1)(2)	$	21.36	$	(0.31	)	$	2.20		$	(4.49	)	$	—		$	18.76
	2005 (2)(3)		22.27		(0.03	)		(0.88	)		—			—			21.36
	2005 (2)(4)		20.69		(0.45	)		4.98			(2.95	)		—			22.27
	2004 (2)(4)		21.05		(0.50	)		0.27			(0.13	)		—			20.69
	2003 (2)(4)		13.39		(0.40	)		8.06			—			—			21.05
	2002 (4)		16.44		(0.39	)		(2.63	)		—			(0.03	)		13.39
Class C
	2006 (1)(2)	$	22.05	$	(0.32	)	$	2.29		$	(4.49	)	$	—		$	19.53
	2005 (2)(3)		23.00		(0.04	)		(0.91	)		—			—			22.05
	2005 (2)(4)		21.28		(0.48	)		5.15			(2.95	)		—			23.00
	2004 (2)(4)		21.65		(0.49	)		0.25			(0.13	)		—			21.28
	2003 (2)(4)		13.77		(0.43	)		8.31			—			—			21.65
	2002 (4)		16.90		(0.19	)		(2.91	)		—			(0.03	)		13.77
Class R (5)
	2006 (1)(2)	$	22.75	$	(0.23	)	$	2.36		$	(4.49	)	$	—		$	20.39
	2005 (2)(3)		23.72		(0.03	)		(0.94	)		—			—			22.75
	2005 (2)(4)		21.74		(0.48	)		5.41			(2.95	)		—			23.72
	2004 (2)(4)		21.95		(0.42	)		0.34			(0.13	)		—			21.74
	2003 (2)(4)		13.86		(0.28	)		8.37			—			—			21.95
	2002 (4)		16.89		(0.26	)		(2.74	)		—			(0.03	)		13.86
Class Y
	2006 (1)(2)	$	23.81	$	(0.13	)	$	2.47		$	(4.49	)	$	—		$	21.66
	2005 (2)(3)		24.81		(0.02	)		(0.98	)		—			—			23.81
	2005 (2)(4)		22.55		(0.27	)		5.48			(2.95	)		—			24.81
	2004 (2)(4)		22.70		(0.32	)		0.30			(0.13	)		—			22.55
	2003 (2)(4)		14.30		(0.25	)		8.65			—			—			22.70
	2002 (4)		17.38		(0.25	)		(2.80	)		—			(0.03	)		14.30


	(1)	For the period November 1 to October 31 in the year indicated.

	(2)	Per share data calculated using average shares outstanding method.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

70 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Loss to
					Ratio of			Investment			Average			Average Net
			Net Assets		Expenses to			Loss			Net Assets			Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate

	9.91	%	$	138,786		1.47	%		(0.88	)%		1.58	%		(0.99	)%		209	%
	(4.04	)		78,357		1.47			(1.17	)		1.56			(1.26	)		14
	24.21			84,567		1.82			(1.42	)		1.87			(1.47	)		190
	(0.39	)		101,031		1.93			(1.42	)		1.96			(1.45	)		178
	58.37			81,999		1.93			(1.63	)		1.97			(1.67	)		137
	(17.84	)		44,834		1.93			(1.53	)		1.97			(1.57	)		123
	9.03	%	$	6,540		2.22	%		(1.62	)%		2.33	%		(1.73	)%		209	%
	(4.09	)		8,271		2.22			(1.93	)		2.31			(2.02	)		14
	23.27			8,760		2.57			(2.16	)		2.62			(2.21	)		190
	(1.13	)		9,063		2.68			(2.16	)		2.71			(2.19	)		178
	57.21			6,441		2.68			(2.38	)		2.72			(2.42	)		137
	(18.45	)		3,779		2.68			(2.28	)		2.72			(2.32	)		123
	9.11	%	$	2,664		2.22	%		(1.63	)%		2.33	%		(1.74	)%		209	%
	(4.13	)		2,962		2.22			(1.93	)		2.31			(2.02	)		14
	23.28			3,152		2.57			(2.20	)		2.62			(2.25	)		190
	(1.14	)		4,669		2.68			(2.07	)		2.71			(2.10	)		178
	57.23			1,529		2.68			(2.38	)		2.72			(2.42	)		137
	(18.42	)		260		2.68			(2.31	)		2.72			(2.35	)		123
	9.62	%	$	1,323		1.72	%		(1.16	)%		1.95	%		(1.39	)%		209	%
	(4.09	)		5		1.72			(1.43	)		1.96			(1.67	)		14
	24.06			5		2.07			(2.14	)		2.27			(2.34	)		190
	(0.39	)		1		1.93			(1.67	)		1.96			(1.70	)		178
	58.37			3,694		1.93			(1.62	)		1.97			(1.66	)		137
	(17.84	)		2,027		1.93			(1.53	)		1.97			(1.57	)		123
	10.16	%	$	182,429		1.22	%		(0.63	)%		1.33	%		(0.74	)%		209	%
	(4.03	)		210,769		1.22			(0.92	)		1.31			(1.01	)		14
	24.47			220,772		1.57			(1.15	)		1.62			(1.20	)		190
	(0.11	)		224,432		1.68			(1.25	)		1.71			(1.28	)		178
	58.74			382,389		1.68			(1.38	)		1.72			(1.42	)		137
	(17.62	)		208,439		1.68			(1.28	)		1.72			(1.32	)		123

First American Funds Annual Report 2006 71

Financial Highlights For a share outstanding throughout the indicated periods.


							Realized and
		Net Asset					Unrealized			Distributions			Net Asset
		Value		Net			Gains			from Net			Value
		Beginning		Investment			(Losses) on			Realized			End of
		of Period		Loss			Investments			Gains			Period

Small Cap Select Fund (1)
Class A
	2006 (2)	$	15.33	$	(0.05	)	$	3.05		$	(3.21	)	$	15.12
	2005 (3)		15.82		(0.01	)		(0.48	)		—			15.33
	2005 (4)		15.95		(0.08	)		3.10			(3.15	)		15.82
	2004 (4)		14.52		(0.12	)		2.60			(1.05	)		15.95
	2003 (4)		10.68		(0.09	)		3.93			—			14.52
	2002 (4)		11.97		(0.10	)		(0.30	)		(0.89	)		10.68
Class B
	2006 (2)	$	13.58	$	(0.13	)	$	2.64		$	(3.21	)	$	12.88
	2005 (3)		14.02		(0.02	)		(0.42	)		—			13.58
	2005 (4)		14.56		(0.17	)		2.78			(3.15	)		14.02
	2004 (4)		13.42		(0.22	)		2.41			(1.05	)		14.56
	2003 (4)		9.95		(0.17	)		3.64			—			13.42
	2002 (4)		11.28		(0.19	)		(0.25	)		(0.89	)		9.95
Class C
	2006 (2)	$	14.79	$	(0.16	)	$	2.94		$	(3.21	)	$	14.36
	2005 (3)		15.28		(0.02	)		(0.47	)		—			14.79
	2005 (4)		15.60		(0.19	)		3.02			(3.15	)		15.28
	2004 (4)		14.32		(0.24	)		2.57			(1.05	)		15.60
	2003 (4)		10.62		(0.18	)		3.88			—			14.32
	2002 (4)		11.97		(0.20	)		(0.26	)		(0.89	)		10.62
Class R (5)
	2006 (2)	$	15.24	$	(0.09	)	$	3.04		$	(3.21	)	$	14.98
	2005 (3)		15.73		(0.01	)		(0.48	)		—			15.24
	2005 (4)		15.91		(0.08	)		3.05			(3.15	)		15.73
	2004 (4)		14.49		(0.13	)		2.60			(1.05	)		15.91
	2003 (4)		10.66		(0.09	)		3.92			—			14.49
	2002 (4)		11.94		(0.10	)		(0.29	)		(0.89	)		10.66
Class Y
	2006 (2)	$	16.06	$	(0.01	)	$	3.22		$	(3.21	)	$	16.06
	2005 (3)		16.57		(0.01	)		(0.50	)		—			16.06
	2005 (4)		16.54		(0.04	)		3.22			(3.15	)		16.57
	2004 (4)		14.98		(0.09	)		2.70			(1.05	)		16.54
	2003 (4)		11.00		(0.06	)		4.04			—			14.98
	2002 (4)		12.26		(0.07	)		(0.30	)		(0.89	)		11.00


	(1)	Per share data calculated using average shares outstanding method.

	(2)	For the period November 1 to October 31 in the year indicated.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

72 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Loss
					Ratio of			Investment			Average			to Average
			Net Assets		Expenses to			Loss			Net Assets			Net Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate

	22.46	%	$	222,293		1.24	%		(0.38	)%		1.24	%		(0.38	)%		111	%
	(3.10	)		104,568		1.25			(0.92	)		1.25			(0.92	)		14
	20.46			107,270		1.22			(0.53	)		1.25			(0.56	)		122
	17.64			97,775		1.21			(0.76	)		1.24			(0.79	)		116
	35.96			73,445		1.21			(0.73	)		1.25			(0.77	)		145
	(4.56	)		33,586		1.21			(0.81	)		1.25			(0.85	)		171
	21.59	%	$	15,077		1.99	%		(1.14	)%		1.99	%		(1.14	)%		111	%
	(3.14	)		13,406		2.00			(1.67	)		2.00			(1.67	)		14
	19.45			14,023		1.97			(1.28	)		2.00			(1.31	)		122
	16.88			13,050		1.96			(1.51	)		1.99			(1.54	)		116
	34.88			11,541		1.96			(1.48	)		2.00			(1.52	)		145
	(5.23	)		4,613		1.96			(1.56	)		2.00			(1.60	)		171
	21.64	%	$	18,794		1.99	%		(1.14	)%		1.99	%		(1.14	)%		111	%
	(3.21	)		13,453		2.00			(1.67	)		2.00			(1.67	)		14
	19.58			14,418		1.97			(1.28	)		2.00			(1.31	)		122
	16.79			13,841		1.96			(1.50	)		1.99			(1.53	)		116
	34.84			11,128		1.96			(1.47	)		2.00			(1.51	)		145
	(5.09	)		3,096		1.96			(1.61	)		2.02			(1.67	)		171
	22.23	%	$	2,697		1.49	%		(0.59	)%		1.62	%		(0.72	)%		111	%
	(3.11	)		333		1.50			(1.14	)		1.65			(1.29	)		14
	20.16			312		1.47			(0.53	)		1.65			(0.71	)		122
	17.60			19		1.21			(0.81	)		1.24			(0.84	)		116
	35.93			11,627		1.21			(0.75	)		1.25			(0.79	)		145
	(4.48	)		7,640		1.21			(0.80	)		1.25			(0.84	)		171
	22.81	%	$	732,252		0.99	%		(0.15	)%		0.99	%		(0.15	)%		111	%
	(3.08	)		682,088		1.00			(0.67	)		1.00			(0.67	)		14
	20.73			715,496		0.97			(0.28	)		1.00			(0.31	)		122
	17.98			770,981		0.96			(0.52	)		0.99			(0.55	)		116
	36.18			1,024,146		0.96			(0.48	)		1.00			(0.52	)		145
	(4.19	)		403,027		0.96			(0.55	)		1.00			(0.59	)		171

First American Funds Annual Report 2006 73

Financial Highlights For a share outstanding throughout the indicated periods.


							Realized and
		Net Asset					Unrealized			Distributions			Distributions			Net Asset
		Value		Net			Gains			from Net			from Net			Value
		Beginning		Investment			(Losses) on			Investment			Realized			End of
		of Period		Income (Loss)			Investments			Income			Gains			Period

Small Cap Value Fund (1)
Class A
	2006 (2)	$	16.34	$	0.03		$	2.86		$	(0.04	)	$	(3.81	)	$	15.38
	2005 (3)		16.78		0.01			(0.45	)		—			—			16.34
	2005 (4)		16.84		0.03			2.63			(0.06	)		(2.66	)		16.78
	2004 (4)		14.28		0.03			3.13			(0.04	)		(0.56	)		16.84
	2003 (4)		11.26		—			3.02			—			—			14.28
	2002 (4)		13.40		(0.02	)		(0.13	)		—			(1.99	)		11.26
Class B
	2006 (2)	$	15.19	$	(0.07	)	$	2.62		$	—		$	(3.81	)	$	13.93
	2005 (3)		15.61		—			(0.42	)		—			—			15.19
	2005 (4)		15.92		(0.09	)		2.47			(0.03	)		(2.66	)		15.61
	2004 (4)		13.60		(0.08	)		2.96			—			(0.56	)		15.92
	2003 (4)		10.80		(0.08	)		2.88			—			—			13.60
	2002 (4)		13.01		(0.11	)		(0.11	)		—			(1.99	)		10.80
Class C
	2006 (2)	$	15.39	$	(0.07	)	$	2.66		$	—		$	(3.81	)	$	14.17
	2005 (3)		15.82		—			(0.43	)		—			—			15.39
	2005 (4)		16.10		(0.09	)		2.50			(0.03	)		(2.66	)		15.82
	2004 (4)		13.74		(0.08	)		3.00			—			(0.56	)		16.10
	2003 (4)		10.91		(0.09	)		2.92			—			—			13.74
	2002 (4)		13.13		(0.11	)		(0.12	)		—			(1.99	)		10.91
Class R (5)
	2006 (2)	$	16.29	$	(0.01	)	$	2.84		$	(0.07	)	$	(3.81	)	$	15.24
	2005 (3)		16.74		0.01			(0.46	)		—			—			16.29
	2005 (4)		16.83		(0.01	)		2.64			(0.06	)		(2.66	)		16.74
	2004 (4)		14.27		0.03			3.12			(0.03	)		(0.56	)		16.83
	2003 (4)		11.26		0.01			3.01			(0.01	)		—			14.27
	2002 (4)		13.40		(0.01	)		(0.14	)		—			(1.99	)		11.26
Class Y
	2006 (2)	$	16.62	$	0.07		$	2.90		$	(0.07	)	$	(3.81	)	$	15.71
	2005 (3)		17.06		0.01			(0.45	)		—			—			16.62
	2005 (4)		17.05		0.07			2.67			(0.07	)		(2.66	)		17.06
	2004 (4)		14.44		0.08			3.16			(0.07	)		(0.56	)		17.05
	2003 (4)		11.38		0.03			3.05			(0.02	)		—			14.44
	2002 (4)		13.48		0.02			(0.12	)		(0.01	)		(1.99	)		11.38


	(1)	Per share data calculated using average shares outstanding method.

	(2)	For the period November 1 to October 31 in the year indicated.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

74 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income (Loss)
					Ratio of			Investment			Average			to Average
			Net Assets		Expenses to			Income (Loss)			Net Assets			Net Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate

	20.78	%	$	57,922		1.26	%		0.21	%		1.26	%		0.21	%		96	%
	(2.62	)		46,467		1.25			0.78			1.25			0.78			15
	16.78			48,128		1.24			0.19			1.26			0.17			72
	22.70			43,192		1.23			0.21			1.25			0.19			34
	26.86			32,416		1.23			0.02			1.25			0.00			49
	(2.19	)		27,205		1.23			(0.12	)		1.26			(0.15	)		37
	19.88	%	$	7,855		2.01	%		(0.53	)%		2.01	%		(0.53	)%		96	%
	(2.69	)		8,913		2.00			0.03			2.00			0.03			15
	15.90			9,325		1.99			(0.56	)		2.01			(0.58	)		72
	21.76			9,901		1.98			(0.51	)		2.00			(0.53	)		34
	25.93			12,560		1.98			(0.73	)		2.00			(0.75	)		49
	(2.91	)		12,008		1.98			(0.87	)		2.01			(0.90	)		37
	19.89	%	$	4,405		2.01	%		(0.53	)%		2.01	%		(0.53	)%		96	%
	(2.72	)		4,590		2.00			0.03			2.00			0.03			15
	15.92			4,808		1.99			(0.56	)		2.01			(0.58	)		72
	21.83			4,609		1.98			(0.52	)		2.00			(0.54	)		34
	25.94			4,354		1.98			(0.74	)		2.00			(0.76	)		49
	(2.96	)		4,873		1.98			(0.87	)		2.01			(0.90	)		37
	20.44	%	$	1,849		1.51	%		(0.09	)%		1.63	%		(0.21	)%		96	%
	(2.69	)		4		1.50			0.59			1.65			0.44			15
	16.60			4		1.49			(0.04	)		1.66			(0.21	)		72
	22.69			1		1.23			0.22			1.25			0.20			34
	26.79			1,351		1.23			0.04			1.25			0.02			49
	(2.19	)		424		1.24			(0.11	)		1.27			(0.14	)		37
	21.01	%	$	355,148		1.01	%		0.47	%		1.01	%		0.47	%		96	%
	(2.58	)		348,166		1.00			1.03			1.00			1.03			15
	17.08			363,261		0.99			0.44			1.01			0.42			72
	23.02			367,774		0.98			0.50			1.00			0.48			34
	27.10			428,846		0.98			0.27			1.00			0.25			49
	(1.83	)		368,092		0.98			0.13			1.01			0.10			37

First American Funds Annual Report 2006 75

Financial Highlights For a share outstanding throughout the indicated periods.


							Realized and
		Net Asset					Unrealized			Net Asset
		Value		Net			Gains			Value
		Beginning		Investment			(Losses) on			End of
		of Period		Income (Loss)			Investments			Period

Small-Mid Cap Core Fund (1)(2)
Class A
	2006 (3)	$	8.03	$	0.01		$	1.53		$	9.57
	2005 (4)		8.31		(0.01	)		(0.27	)		8.03
	2005 (5)		7.40		(0.07	)		0.98			8.31
	2004 (5)		7.05		(0.07	)		0.42			7.40
	2003 (5)		4.29		(0.03	)		2.79			7.05
	2002 (5)		6.36		(0.07	)		(2.00	)		4.29
Class B
	2006 (3)	$	7.06	$	(0.04	)	$	1.32		$	8.34
	2005 (4)		7.31		(0.01	)		(0.24	)		7.06
	2005 (5)		6.55		(0.11	)		0.87			7.31
	2004 (5)		6.29		(0.11	)		0.37			6.55
	2003 (5)		3.86		(0.07	)		2.50			6.29
	2002 (5)		5.77		(0.11	)		(1.80	)		3.86
Class C
	2006 (3)	$	7.69	$	(0.05	)	$	1.45		$	9.09
	2005 (4)		7.97		(0.01	)		(0.27	)		7.69
	2005 (5)		7.14		(0.12	)		0.95			7.97
	2004 (5)		6.86		(0.12	)		0.40			7.14
	2003 (5)		4.20		(0.07	)		2.73			6.86
	2002 (5)		6.28		(0.12	)		(1.96	)		4.20
Class Y
	2006 (3)	$	8.34	$	0.04		$	1.57		$	9.95
	2005 (4)		8.63		—			(0.29	)		8.34
	2005 (5)		7.66		(0.05	)		1.02			8.63
	2004 (5)		7.28		(0.05	)		0.43			7.66
	2003 (5)		4.42		(0.01	)		2.87			7.28
	2002 (5)		6.53		(0.05	)		(2.06	)		4.42


	(1)	Per share data calculated using average shares outstanding method.

	(2)	The financial highlights for Small-Mid Cap Core Fund as set forth herein include the historical financial highlights of the First American Technology Fund. Effective October 3, 2005, the fund’s name and strategy changed.

	(3)	For the period November 1 to October 31 in the year indicated.

	(4)	For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(5)	For the period October 1 to September 30 in the year indicated.

	(6)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

76 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income (Loss)
					Ratio of			Investment			Average			to Average
			Net Assets		Expenses to			Income (Loss)			Net Assets			Net Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate

	19.18	%	$	26,190		1.39	%		0.12	%		1.46	%		0.05	%		110	%
	(3.37	)		22,339		1.34			(0.86	)		1.34			(0.86	)		80
	12.30			23,016		1.42			(0.83	)		1.50			(0.91	)		197
	4.96			27,356		1.23			(0.86	)		1.28			(0.91	)		51
	64.34			27,936		1.23			(0.52	)		1.29			(0.58	)		110
	(32.55	)		18,267		1.23			(0.89	)		1.70			(1.36	)		288
	18.13	%	$	8,689		2.14	%		(0.58	)%		2.21	%		(0.65	)%		110	%
	(3.42	)		10,054		2.09			(1.61	)		2.09			(1.61	)		80
	11.60			10,685		2.17			(1.59	)		2.25			(1.67	)		197
	4.13			13,445		1.98			(1.60	)		2.03			(1.65	)		51
	62.95			16,016		1.98			(1.26	)		2.04			(1.32	)		110
	(33.10	)		11,190		1.98			(1.64	)		2.45			(2.11	)		288
	18.21	%	$	4,986		2.14	%		(0.64	)%		2.21	%		(0.71	)%		110	%
	(3.51	)		4,253		2.09			(1.61	)		2.09			(1.61	)		80
	11.62			4,485		2.17			(1.59	)		2.25			(1.67	)		197
	4.08			6,000		1.98			(1.60	)		2.03			(1.65	)		51
	63.33			7,056		1.98			(1.25	)		2.04			(1.31	)		110
	(33.12	)		5,064		1.98			(1.64	)		2.45			(2.11	)		288
	19.30	%	$	67,437		1.14	%		0.35	%		1.21	%		0.28	%		110	%
	(3.36	)		31,381		1.09			(0.61	)		1.09			(0.61	)		80
	12.66			33,537		1.17			(0.58	)		1.25			(0.66	)		197
	5.22			43,758		0.98			(0.60	)		1.03			(0.65	)		51
	64.71			59,817		0.98			(0.24	)		1.04			(0.30	)		110
	(32.31	)		44,134		0.98			(0.64	)		1.45			(1.11	)		288

First American Funds Annual Report 2006 77

Schedule of Investments October 31, 2006, all dollars rounded to thousands (000)


Mid Cap Growth Opportunities Fund
DESCRIPTION		SHARES		VALUE

Common Stocks – 97.7%
Consumer Discretionary – 18.6%
Abercrombie & Fitch, Class A (a)			170,732	$	13,087
Circuit City Stores (a)			475,257		12,822
Coldwater Creek (a) (b)			678,898		20,700
Harman International Industries (a)			208,821		21,373
International Game Technology			293,358		12,471
J.C. Penney (a)			190,431		14,326
Newell Rubbermaid (a)			568,635		16,365
Nordstrom (a)			168,916		7,998
Office Depot (a) (b)			505,725		21,235
Omnicom Group (a)			214,594		21,770
Panera Bread, Class A (a) (b)			201,826		12,473
Polo Ralph Lauren (a)			337,851		23,987
Scientific Games, Class A (a) (b)			1,367,136		38,321
Texas Roadhouse, Class A (a) (b)			1,194,436		17,260
TJX (a)			855,218		24,758
Williams-Sonoma (a)			358,121		12,180
Yum! Brands			175,726		10,449

					301,575

Consumer Staples – 0.8%
Corn Products International (a)			340,764		12,332

Energy – 9.0%
Cameron International (a) (b)			475,241		23,810
Chesapeake Energy (a)			627,950		20,371
Hess (a)			492,869		20,898
Newfield Exploration (a) (b)			345,269		14,083
Smith International (a)			674,092		26,613
Valero Energy			97,513		5,103
Weatherford International (b)			289,323		11,885
XTO Energy (a)			501,328		23,392

					146,155

Financials – 11.2%
Affiliated Managers Group (a) (b)			130,017		13,020
AllianceBernstein Holding			215,152		16,717
Ambac Financial Group			193,454		16,152
Bear Stearns (a)			201,143		30,443
Chicago Mercantile Exchange (a)			19,027		9,533
CIT Group			363,340		18,912
ICICI Bank – ADR			409,760		14,403
Northern Trust (a)			416,779		24,473
PMI Group (a)			449,477		19,170
W.R. Berkley			514,308		18,957

					181,780

Healthcare – 15.1%
Caremark Rx (a)			353,748		17,415
Coventry Health Care (b)			337,684		15,854
DENTSPLY International (a)			777,906		24,333
Endo Pharmaceuticals (b)			289,853		8,272
Fisher Scientific International (b)			216,710		18,555
Health Net (b)			338,695		14,059
Healthways (a) (b)			506,228		21,439
Henry Schein (a) (b)			303,950		15,103
Humana (a) (b)			177,826		10,670
Immucor (b)			333,816		9,190
Pediatrix Medical Group (a) (b)			219,022		9,841
Quest Diagnostics (a)			520,374		25,883
Thermo Electron (a) (b)			1,255,870		53,839

					244,453

Industrials – 14.6%
Dun & Bradstreet (a) (b)			645,170		49,833
Joy Global			161,391		6,312
L-3 Communications Holdings			145,144		11,687
Monster Worldwide (a) (b)			492,422		19,948
MSC Industrial Direct, Class A			277,616		11,360
Precision Castparts (a)			480,620		32,711
Republic Services			678,015		27,805
Rockwell Automation			369,987		22,939
Rockwell Collins			318,205		18,481
Roper Industries (a)			410,859		19,660
Toro (a)			179,630		7,753
UTi Worldwide (a)			301,571		7,796

					236,285

Information Technology – 24.1%
Amphenol, Class A (a)			602,640		40,919
Autodesk (a) (b)			501,553		18,432
BEA Systems (a) (b)			1,048,664		17,062
Citrix Systems (a) (b)			659,805		19,484
Cognizant Technology Solutions (a) (b)			281,904		21,222
Cognos (b)			460,117		16,785
Entegris (a) (b)			695,965		7,802
F5 Networks (b)			297,292		19,678
Freescale Semiconductor, Class A (a) (b)			254,565		10,022
Freescale Semiconductor, Class B (a) (b)			374,311		14,722
Hyperion Solutions (a) (b)			530,365		19,836
Intersil, Class A			484,431		11,360
Lam Research (a) (b)			288,714		14,277
MEMC Electronic Materials (a) (b)			567,260		20,138
Microchip Technology (a)			753,580		24,815
Molex			362,564		12,653
National Semiconductor (a)			716,401		17,401
Network Appliance (a) (b)			318,291		11,617
NVIDIA (a) (b)			736,645		25,687
Paychex (a)			837,277		33,056
Trident Microsystems (a) (b)			609,990		12,895

					389,863

Telecommunication Services – 4.3%
American Tower, Class A (a) (b)			1,315,745		47,393
NII Holdings, Class B (a) (b)			335,195		21,798

					69,191

Total Common Stocks
	(Cost $1,294,418)				1,581,634

Investment Companies – 1.6%
iShares Nasdaq Biotechnology Index Fund (a) (b)
	(Cost $23,570)		321,388		25,615

Short Term Investment – 0.5%
First American Prime Obligations Fund, Class Z (c) (Cost $8,127)			8,126,920		8,127

Investments Purchased with Proceeds from Securities Lending (d) – 36.6%
	(Cost $593,672)				593,672

Total Investments – 136.4%
	(Cost $1,919,787)				2,209,048

Other Assets and Liabilities, Net – (36.4)%					(589,889	)

Total Net Assets – 100.0%				$	1,619,159

The accompanying notes are an integral part of the financial statements.

78 First American Funds Annual Report 2006

Mid Cap Growth Opportunities Fund (concluded)


(a)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $572,011 at October 31, 2006. See note 2 in Notes to Financial Statements.

(b)	Non-income producing security.

(c)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(d)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various money market funds and short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

ADR – American Depository Receipt

First American Funds Annual Report 2006 79

Schedule of Investments October 31, 2006, all dollars rounded to thousands (000)


Mid Cap Value Fund
DESCRIPTION		SHARES		VALUE

Common Stocks – 97.8%
Consumer Discretionary – 17.9%
Autoliv			218,383	$	12,419
BorgWarner (a)			122,547		7,046
Darden Restaurants (a)			248,911		10,429
Dollar Tree Stores (a) (b)			362,175		11,260
Ford Motor (a)			1,161,713		9,619
Fortune Brands (a)			208,330		16,031
Gannett			162,945		9,637
Gap			612,428		12,873
Harrah’s Entertainment			148,027		11,003
Mattel			775,771		17,556
Newell Rubbermaid (a)			397,139		11,430
Office Depot (a) (b)			164,627		6,913
Pulte Homes (a)			404,428		12,533
Sherwin-Williams (a)			107,394		6,361
Stanley Works (a)			233,236		11,114

					166,224

Consumer Staples – 4.7%
ConAgra Foods (a)			333,652		8,725
Corn Products International			261,929		9,479
Kroger (a)			660,609		14,857
Pepsi Bottling (a)			329,723		10,426

					43,487

Energy – 5.3%
GlobalSantaFe			237,263		12,314
Hess (a)			100,363		4,255
Newfield Exploration (a) (b)			190,782		7,782
Noble Energy (a)			254,811		12,391
Peabody Energy			128,170		5,379
Sunoco (a)			102,323		6,767

					48,888

Financials (c) – 31.5%
ACE			188,516		10,793
Ambac Financial Group			194,911		16,273
AON (a)			450,107		15,659
Astoria Financial (a)			376,046		10,909
Bear Stearns (a)			89,430		13,535
Boston Properties – REIT (a)			154,678		16,524
Brookfield Properties (a)			233,353		8,842
Camden Property Trust – REIT (a)			107,339		8,665
CIT Group			393,912		20,503
City National (a)			150,762		10,035
Comerica			104,143		6,060
Cullen/ Frost Bankers (a)			222,158		12,032
Developers Diversified Realty – REIT (a)			233,050		14,193
Genworth Financial, Class A			270,305		9,039
KeyCorp			433,880		16,114
Marshall & Ilsley (a)			406,679		19,496
MGIC Investment (a)			164,664		9,676
Northern Trust			265,107		15,567
PMI Group (a)			230,786		9,843
Prologis – REIT (a)			137,100		8,674
StanCorp Financial Group			131,566		6,011
TD Ameritrade (a)			358,442		5,904
Vornado Realty Trust – REIT (a)			110,526		13,180
W.R. Berkley			423,122		15,596

					293,123

Healthcare – 1.9%
CIGNA			82,008		9,593
Community Health Systems (b)			262,025		8,503

					18,096

Industrials – 10.5%
American Standard (a)			367,123		16,260
Armor Holdings (a) (b)			238,646		12,281
Crane			262,292		10,214
CSX			517,868		18,472
Eaton			252,228		18,269
Joy Global			154,220		6,031
Republic Services			383,835		15,741

					97,268

Information Technology – 7.6%
Amphenol, Class A (a)			188,076		12,770
Electronic Data Systems			573,881		14,537
Freescale Semiconductor, Class B (b)			236,717		9,310
Harris (a)			350,523		14,932
Sybase (a) (b)			398,776		9,710
Xerox (b)			535,216		9,099

					70,358

Materials – 5.6%
International Flavors & Fragrances			175,827		7,469
Packaging Corporation of America			458,123		10,523
PPG Industries			126,395		8,646
Rohm & Haas (a)			304,334		15,771
Sonoco Products			268,658		9,532

					51,941

Telecommunication Service – 0.5%
Qwest Communications International (a) (b)			563,090		4,859

Utilities – 12.3%
Atmos Energy (a)			344,673		10,592
Constellation Energy			302,681		18,887
Edison International			436,217		19,386
Entergy			131,734		11,307
PG&E (a)			220,900		9,530
PPL (a)			558,638		19,284
Sempra Energy			206,752		10,966
Wisconsin Energy			310,759		14,276

					114,228

Total Common Stocks
	(Cost $768,469)				908,472

Short-Term Investment – 1.8%
First American Prime Obligations Fund, Class Z (d)
	(Cost $17,175)		17,175,211		17,175

Investments Purchased with Proceeds from Securities Lending (e) – 28.7%
	(Cost $266,737)				266,737

Total Investments – 128.3%
	(Cost $1,052,381)				1,192,384

Other Assets and Liabilities, Net – (28.3)%					(263,318	)

Total Net Assets – 100.0%				$	929,066

The accompanying notes are an integral part of the financial statements.

80 First American Funds Annual Report 2006

Mid Cap Value Fund (concluded)


(a)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $257,903 at October 31, 2006. See note 2 in Notes to Financial Statements.

(b)	Non-income producing security.

(c)	This fund is significantly invested in this industry and therefore is subject to additional risks. See note 6 in Notes to Financial Statements.

(d)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(e)	The fund may loan securities in return for collateral in the form of cash, U.S. government securities, or other high grade debt obligations. The cash collateral is invested in various money market funds and short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

REIT – Real Estate Investment Trust

First American Funds Annual Report 2006 81

Statements of Assets and Liabilities October 31, 2006, all dollars and shares are rounded to thousands (000), except for per share data


	Mid Cap Growth		Mid Cap
	Opportunities Fund		Value Fund

Investments in unaffiliated securities, at cost	$	1,317,988	$	768,469
Investments in affiliated money market fund, at cost		8,127		17,175
Investments purchased with proceeds from securities lending, at cost (note 2)		593,672		266,737

ASSETS:
Investments in unaffiliated securities, at value* (note 2)	$	1,607,249	$	908,472
Investments in affiliated money market fund, at value (note 2)		8,127		17,175
Investments purchased with proceeds from securities lending (note 2)		593,672		266,737
Cash		24		—
Receivable for dividends		501		411
Receivable for investment securities sold		22,931		5,733
Receivable for capital shares sold		916		1,483
Prepaid expenses and other assets		42		45

Total assets		2,233,462		1,200,056

LIABILITIES:
Bank overdraft		—		4
Payable for investment securities purchased		10,597		2,792
Payable upon return of securities loaned (note 2)		593,672		266,737
Payable for capital shares redeemed		8,556		610
Payable to affiliates (note 3)		1,328		749
Payable for distribution and shareholder servicing fees		105		60
Accrued expenses and other liabilities		45		38

Total liabilities		614,303		270,990

Net assets	$	1,619,159	$	929,066

COMPOSITION OF NET ASSETS:
Portfolio capital		1,220,986		731,751
Accumulated net realized gain on investments		108,912		57,312
Net unrealized appreciation of investments		289,261		140,003

Net assets	$	1,619,159	$	929,066

*Including securities loaned, at value	$	572,011	$	257,903

Class A:
Net assets	$	322,385	$	156,576
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		7,782		5,875
Net asset value and redemption price per share	$	41.43	$	26.65
Maximum offering price per share ⁽¹⁾	$	43.84	$	28.20
Class B:
Net assets	$	15,605	$	8,590
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		409		337
Net asset value, offering price and redemption price per share ⁽²⁾	$	38.15	$	25.50
Class C:
Net assets	$	19,540	$	18,162
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		493		698
Net asset value, offering price and redemption price per share ⁽²⁾	$	39.65	$	26.02
Class R:
Net assets	$	17,853	$	17,724
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		434		667
Net asset value, offering price, and redemption price per share	$	41.15	$	26.56
Class Y:
Net assets	$	1,243,776	$	728,014
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		28,512		27,192
Net asset value, offering price, and redemption price per share	$	43.62	$	26.77


	(1)	The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%

	(2)	Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

82 First American Funds Annual Report 2006

Statements of Operations For the year ended October 31, 2006, all dollars are rounded to thousands (000)


	Mid Cap Growth			Mid Cap
	Opportunities Fund			Value Fund

INVESTMENT INCOME:
Dividends from affiliated money market fund	$	1,255		$	1,080
Dividends from unaffiliated securities		14,070			13,052
Less: Foreign taxes withheld		—			(17	)
Securities lending income		561			234

Total investment income		15,886			14,349

EXPENSES (note 3):
Investment advisory fees		11,564			5,598
Administration fees		2,620			1,309
Transfer agent fees		1,676			782
Custodian fees		83			40
Professional fees		40			39
Registration fees		69			65
Postage and printing fees		118			53
Directors’ fees		34			24
Other expenses		28			24
Distribution and shareholder servicing fees – Class A		792			253
Distribution and shareholder servicing fees – Class B		158			88
Distribution and shareholder servicing fees – Class C		182			124
Distribution and shareholder servicing fees – Class R		86			39

Total expenses		17,450			8,438

Less: Fee waivers (note 3)		(19	)		(8	)
Less: Indirect payments made from custodian (note 3)		(10	)		(10	)

Total net expenses		17,421			8,420

Investment income (loss) – net		(1,535	)		5,929

REALIZED AND UNREALIZED GAINS ON INVESTMENTS – NET (Note 5)
Net realized gain on investments		161,244			62,972
Net change in unrealized appreciation or depreciation of investments		34,383			56,622

Net gain on investments		195,627			119,594

Net increase in net assets resulting from operations	$	194,092		$	125,523

First American Funds Annual Report 2006 83

Statements of Changes in Net Assets all dollars are rounded to thousands (000)


		Mid Cap Growth									Mid Cap
		Opportunities Fund									Value Fund

					One-Month									One-Month
					Fiscal Period									Fiscal Period
		Year Ended			Ended			Year Ended			Year Ended			Ended			Year Ended
		10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05


OPERATIONS:
Investment income (loss) – net		$	(1,535	)	$	(729	)	$	(6,568	)	$	5,929		$	(161	)	$	4,429
Net realized gain on investments			161,244			33,519			180,742			62,972			4,915			88,747
Net change in unrealized appreciation or depreciation of investments			34,383			(63,233	)		166,265			56,622			(27,884	)		30,399

Net increase (decrease) in net assets resulting from operations			194,092			(30,443	)		340,439			125,523			(23,130	)		123,575


DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income – net:
	Class A		—			—			—			(693	)		—			(164	)
	Class B		—			—			—			(14	)		—			(1	)
	Class C		—			—			—			(21	)		—			—
	Class R		—			—			—			(33	)		—			—
	Class Y		—			—			—			(5,752	)		—			(3,591	)
Net realized gain on investments:
	Class A		(31,106	)		—			(26,799	)		(3,267	)		—			—
	Class B		(1,639	)		—			(1,832	)		(485	)		—			—
	Class C		(1,741	)		—			(1,996	)		(427	)		—			—
	Class R		(1,068	)		—			(2	)		(81	)		—			—
	Class Y		(121,918	)		—			(164,469	)		(31,352	)		—			—

Total distributions			(157,472	)		—			(195,098	)		(42,125	)		—			(3,756	)


CAPITAL SHARE TRANSACTIONS (note 4):
Class A:
	Proceeds from sales		138,564			7,177			141,968			109,279			4,466			29,979
	Reinvestment of distributions		30,411			—			25,770			3,794			—			156
	Payments for redemptions		(166,778	)		(4,287	)		(44,583	)		(23,533	)		(866	)		(11,836	)

Increase in net assets from Class A transactions			2,197			2,890			123,155			89,540			3,600			18,299

Class B:
	Proceeds from sales		2,403			139			3,307			1,757			84			2,023
	Reinvestment of distributions		1,544			—			1,767			483			—			1
	Payments for redemptions (note 3)		(2,973	)		(186	)		(2,148	)		(3,785	)		(662	)		(3,940	)

Increase (decrease) in net assets from Class B transactions			974			(47	)		2,926			(1,545	)		(578	)		(1,916	)

Class C:
	Proceeds from sales		9,430			445			6,924			11,403			427			4,164
	Reinvestment of distributions		1,697			—			1,992			424			—			—
	Payments for redemptions (note 3)		(7,181	)		(1,748	)		(5,357	)		(2,366	)		(165	)		(994	)

Increase (decrease) in net assets from Class C transactions			3,946			(1,303	)		3,559			9,461			262			3,170

Class R:
	Proceeds from sales		13,794			198			5,771			17,551			421			366
	Reinvestment of distributions		1,068			—			2			108			—			—
	Payments for redemptions		(2,657	)		(94	)		(481	)		(1,395	)		(5	)		(5	)

Increase in net assets from Class R transactions			12,205			104			5,292			16,264			416			361

Class Y:
	Proceeds from sales		175,964			9,636			217,915			123,981			6,506			155,251
	Reinvestment of distributions		98,347			—			131,612			27,701			—			2,282
	Payments for redemptions		(300,042	)		(20,617	)		(366,059	)		(91,763	)		(8,542	)		(79,482	)

Increase (decrease) in net assets from Class Y transactions			(25,731	)		(10,981	)		(16,532	)		59,919			(2,036	)		78,051

Increase (decrease) in net assets from capital share transactions			(6,409	)		(9,337	)		118,400			173,639			1,664			97,965

Total increase (decrease) in net assets			30,211			(39,780	)		263,741			257,037			(21,466	)		217,784
Net assets at beginning of period			1,588,948			1,628,728			1,364,987			672,029			693,495			475,711

Net assets at end of period		$	1,619,159		$	1,588,948		$	1,628,728		$	929,066		$	672,029		$	693,495

Undistributed (distributions in excess of) net investment income at end of period		$	—		$	(1	)	$	(1	)	$	—		$	186		$	186

The accompanying notes are an integral part of the financial statements.

84 First American Funds Annual Report 2006

(This page intentionally left blank.)

Financial Highlights For a share outstanding throughout the indicated period.


							Realized and
		Net Asset					Unrealized			Distributions			Net Asset
		Value		Net			Gains			from Net			Value
		Beginning		Investment			(Losses) on			Realized			End of
		of Period		Loss			Investments			Gains			Period

Mid Cap Growth Opportunities
Class A
	2006 (1)(2)	$	40.77	$	(0.11	)	$	5.04		$	(4.27	)	$	41.43
	2005 (2)(3)		41.55		(0.02	)		(0.76	)		—			40.77
	2005 (2)(4)		38.19		(0.24	)		9.65			(6.05	)		41.55
	2004 (2)(4)		33.68		(0.30	)		5.88			(1.07	)		38.19
	2003 (2)(4)		26.45		(0.18	)		7.41			—			33.68
	2002 (4)		28.33		(0.11	)		(1.77	)		—			26.45
Class B
	2006 (1)(2)	$	38.12	$	(0.38	)	$	4.68		$	(4.27	)	$	38.15
	2005 (2)(3)		38.87		(0.05	)		(0.70	)		—			38.12
	2005 (2)(4)		36.31		(0.51	)		9.12			(6.05	)		38.87
	2004 (2)(4)		32.30		(0.55	)		5.63			(1.07	)		36.31
	2003 (2)(4)		25.56		(0.39	)		7.13			—			32.30
	2002 (4)		27.59		(0.18	)		(1.85	)		—			25.56
Class C
	2006 (1)(2)	$	39.46	$	(0.40	)	$	4.86		$	(4.27	)	$	39.65
	2005 (2)(3)		40.23		(0.05	)		(0.72	)		—			39.46
	2005 (2)(4)		37.40		(0.53	)		9.41			(6.05	)		40.23
	2004 (2)(4)		33.24		(0.57	)		5.80			(1.07	)		37.40
	2003 (2)(4)		26.29		(0.40	)		7.35			—			33.24
	2002 (4)		28.33		(0.10	)		(1.94	)		—			26.29
Class R (5)
	2006 (1)(2)	$	40.61	$	(0.23	)	$	5.04		$	(4.27	)	$	41.15
	2005 (2)(3)		41.40		(0.03	)		(0.76	)		—			40.61
	2005 (2)(4)		38.15		(0.31	)		9.61			(6.05	)		41.40
	2004 (2)(4)		33.66		(0.30	)		5.86			(1.07	)		38.15
	2003 (2)(4)		26.43		(0.17	)		7.40			—			33.66
	2002 (4)		28.29		(0.07	)		(1.79	)		—			26.43
Class Y
	2006 (1)(2)	$	42.61	$	(0.01	)	$	5.29		$	(4.27	)	$	43.62
	2005 (2)(3)		43.42		(0.02	)		(0.79	)		—			42.61
	2005 (2)(4)		39.58		(0.16	)		10.05			(6.05	)		43.42
	2004 (2)(4)		34.78		(0.21	)		6.08			(1.07	)		39.58
	2003 (2)(4)		27.25		(0.09	)		7.62			—			34.78
	2002 (4)		29.11		(0.05	)		(1.81	)		—			27.25


	(1)	For the period November 1 to October 31 in the year indicated.

	(2)	Per share data calculated using average shares outstanding method.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Total return does not include sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

86 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Loss
					Ratio of			Investment			Average			to Average Net
			Net Assets		Expenses to			Loss			Net Assets			Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate

	12.69	%	$	322,385		1.23	%		(0.26	)%		1.23	%		(0.26	)%		75	%
	(1.88	)		314,830		1.23			(0.72	)		1.23			(0.72	)		9
	26.25			317,906		1.21			(0.62	)		1.24			(0.65	)		107
	16.88			173,436		1.20			(0.79	)		1.24			(0.83	)		135
	27.33			154,499		1.20			(0.58	)		1.25			(0.63	)		145
	(6.64	)		75,002		1.20			(0.34	)		1.26			(0.40	)		162
	11.83	%	$	15,605		1.98	%		(1.02	)%		1.98	%		(1.02	)%		75	%
	(1.93	)		14,586		1.98			(1.47	)		1.98			(1.47	)		9
	25.29			14,922		1.96			(1.40	)		1.99			(1.43	)		107
	16.03			10,974		1.95			(1.54	)		1.99			(1.58	)		135
	26.37			9,055		1.95			(1.33	)		2.00			(1.38	)		145
	(7.36	)		4,227		1.95			(1.08	)		2.01			(1.14	)		162
	11.84	%	$	19,540		1.98	%		(1.02	)%		1.98	%		(1.02	)%		75	%
	(1.91	)		15,435		1.98			(1.47	)		1.98			(1.47	)		9
	25.27			17,079		1.96			(1.40	)		1.99			(1.43	)		107
	16.03			12,356		1.95			(1.54	)		1.99			(1.58	)		135
	26.43			12,649		1.95			(1.33	)		2.00			(1.38	)		145
	(7.20	)		1,136		1.95			(1.07	)		2.01			(1.13	)		162
	12.41	%	$	17,853		1.48	%		(0.57	)%		1.61	%		(0.70	)%		75	%
	(1.91	)		5,502		1.48			(0.97	)		1.63			(1.12	)		9
	25.95			5,501		1.46			(0.77	)		1.64			(0.95	)		107
	16.83			1		1.20			(0.81	)		1.24			(0.85	)		135
	27.36			10,284		1.20			(0.56	)		1.25			(0.61	)		145
	(6.58	)		5,869		1.20			(0.33	)		1.26			(0.39	)		162
	12.98	%	$	1,243,776		0.98	%		(0.02	)%		0.98	%		(0.02	)%		75	%
	(1.86	)		1,238,595		0.98			(0.47	)		0.98			(0.47	)		9
	26.57			1,273,320		0.96			(0.40	)		0.99			(0.43	)		107
	17.18			1,168,220		0.95			(0.54	)		0.99			(0.58	)		135
	27.68			1,153,657		0.95			(0.30	)		1.00			(0.35	)		145
	(6.39	)		477,210		0.95			(0.08	)		1.01			(0.14	)		162

First American Funds Annual Report 2006 87

Financial Highlights For a share outstanding throughout the indicated periods.


							Realized and
		Net Asset					Unrealized			Distributions			Distributions						Net Asset
		Value		Net			Gains			from Net			from Net			Distributions			Value
		Beginning		Investment			(Losses) on			Investment			Realized			from Return			End of
		of Period		Income (Loss)			Investments			Income			Gains			of Capital			Period

Mid Cap Value Fund (1)
Class A
	2006 (2)	$	24.04	$	0.14		$	3.89		$	(0.16	)	$	(1.26	)	$	—		$	26.65
	2005 (3)		24.88		(0.01	)		(0.83	)		—			—			—			24.04
	2005 (4)		20.09		0.13			4.76			(0.10	)		—			—			24.88
	2004 (4)		16.30		0.08			3.77			(0.06	)		—			—	⁽⁶⁾		20.09
	2003 (4)		13.29		0.18			2.96			(0.12	)		—			(0.01	)		16.30
	2002 (4)		13.74		0.13			(0.44	)		(0.10	)		—			(0.04	)		13.29
Class B
	2006 (2)	$	23.12	$	(0.03	)	$	3.71		$	(0.04	)	$	(1.26	)	$	—		$	25.50
	2005 (3)		23.94		(0.02	)		(0.80	)		—			—			—			23.12
	2005 (4)		19.39		(0.05	)		4.60			—			—			—			23.94
	2004 (4)		15.81		(0.06	)		3.65			(0.01	)		—			—	⁽⁶⁾		19.39
	2003 (4)		12.92		0.07			2.87			(0.04	)		—			(0.01	)		15.81
	2002 (4)		13.37		0.01			(0.41	)		(0.01	)		—			(0.04	)		12.92
Class C
	2006 (2)	$	23.57	$	(0.04	)	$	3.80		$	(0.05	)	$	(1.26	)	$	—		$	26.02
	2005 (3)		24.40		(0.02	)		(0.81	)		—			—			—			23.57
	2005 (4)		19.77		(0.03	)		4.66			—			—			—			24.40
	2004 (4)		16.12		(0.06	)		3.72			(0.01	)		—			—	⁽⁶⁾		19.77
	2003 (4)		13.17		0.07			2.93			(0.04	)		—			(0.01	)		16.12
	2002 (4)		13.63		0.01			(0.43	)		—			—			(0.04	)		13.17
Class R (5)
	2006 (2)	$	24.00	$	0.05		$	3.91		$	(0.14	)	$	(1.26	)	$	—		$	26.56
	2005 (3)		24.83		(0.01	)		(0.82	)		—			—			—			24.00
	2005 (4)		20.09		0.12			4.70			(0.08	)		—			—			24.83
	2004 (4)		16.31		0.07			3.76			(0.05	)		—			—	⁽⁶⁾		20.09
	2003 (4)		13.29		0.16			2.99			(0.12	)		—			(0.01	)		16.31
	2002 (4)		13.74		0.13			(0.44	)		(0.10	)		—			(0.04	)		13.29
Class Y
	2006 (2)	$	24.14	$	0.22		$	3.89		$	(0.22	)	$	(1.26	)	$	—		$	26.77
	2005 (3)		24.98		—			(0.84	)		—			—			—			24.14
	2005 (4)		20.17		0.18			4.78			(0.15	)		—			—			24.98
	2004 (4)		16.36		0.12			3.79			(0.10	)		—			—	⁽⁶⁾		20.17
	2003 (4)		13.33		0.21			2.98			(0.15	)		—			(0.01	)		16.36
	2002 (4)		13.77		0.17			(0.44	)		(0.13	)		—			(0.04	)		13.33


	(1)	Per share data calculated using average shares outstanding method.

	(2)	For the period November 1 to October 31 in the year indicated.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Includes a tax return of capital less than $0.01.

	(7)	Total return does not include sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

88 First American Funds Annual Report 2006


													Ratio of Net
										Ratio of			Investment
							Ratio of Net			Expenses to			Income (Loss)
					Ratio of		Investment			Average			to Average
			Net Assets		Expenses to		Income (Loss)			Net Assets			Net Assets			Portfolio
Total			End of		Average		to Average			(Excluding			(Excluding			Turnover
Return (7)			Period (000)		Net Assets		Net Assets			Waivers)			Waivers)			Rate

	17.36	%	$	156,576		1.24%		0.50	%		1.24	%		0.50	%		70	%
	(3.38	)		56,125		1.23		(0.48	)		1.23			(0.48	)		10
	24.38			54,360		1.21		0.59			1.25			0.55			101
	23.65			28,561		1.20		0.41			1.25			0.36			83
	23.71			16,598		1.20		1.21			1.25			1.16			102
	(2.41	)		13,083		1.20		0.83			1.26			0.77			90
	16.45	%	$	8,590		1.99%		(0.17	)%		1.99	%		(0.17	)%		70	%
	(3.43	)		9,252		1.98		(1.25	)		1.98			(1.25	)		10
	23.47			10,157		1.96		(0.21	)		2.00			(0.25	)		101
	22.69			9,928		1.95		(0.35	)		2.00			(0.40	)		83
	22.84			10,154		1.95		0.50			2.00			0.45			102
	(3.07	)		10,410		1.95		0.08			2.01			0.02			90
	16.47	%	$	18,162		1.99%		(0.24	)%		1.99	%		(0.24	)%		70	%
	(3.40	)		7,439		1.98		(1.24	)		1.98			(1.24	)		10
	23.43			7,426		1.96		(0.15	)		2.00			(0.19	)		101
	22.69			3,342		1.95		(0.33	)		2.00			(0.38	)		83
	22.84			2,916		1.95		0.51			2.00			0.46			102
	(3.09	)		3,207		1.95		0.08			2.01			0.02			90
	17.06	%	$	17,724		1.49%		0.15	%		1.61	%		0.03	%		70	%
	(3.34	)		785		1.47		(0.69	)		1.62			(0.84	)		10
	24.04			380		1.46		0.52			1.65			0.33			101
	23.51			1		1.20		0.37			1.25			0.32			83
	23.80			966		1.20		1.07			1.25			1.02			102
	(2.40	)		158		1.20		0.87			1.26			0.81			90
	17.63	%	$	728,014		0.99%		0.81	%		0.99	%		0.81	%		70	%
	(3.36	)		598,428		0.98		(0.24	)		0.98			(0.24	)		10
	24.68			621,172		0.96		0.80			1.00			0.76			101
	23.95			433,879		0.95		0.66			1.00			0.61			83
	24.06			332,243		0.95		1.45			1.00			1.40			102
	(2.12	)		259,990		0.95		1.08			1.01			1.02			90

First American Funds Annual Report 2006 89

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Large Cap Growth Opportunities Fund
DESCRIPTION	SHARES		VALUE

Common Stocks – 98.1%
Consumer Discretionary – 11.3%
J.C. Penney (a)		112,485	$	8,462
Kohl’s (b)		103,104		7,279
Lowe’s (a)		993,008		29,929
Nordstrom (a)		101,807		4,821
Omnicom Group (a)		96,821		9,823
Polo Ralph Lauren		58,683		4,167
Starbucks (a) (b)		163,297		6,164
Target (a)		249,674		14,776
Williams-Sonoma		164,808		5,605
Yum! Brands		188,635		11,216

				102,242

Consumer Staples – 9.9%
Altria Group		108,809		8,849
Coca-Cola		144,349		6,744
CVS		258,999		8,127
PepsiCo (a)		291,101		18,467
Procter & Gamble		296,066		18,768
Walgreen (a)		278,360		12,159
Wal-Mart Stores		339,443		16,728

				89,842

Energy – 5.6%
Apache (a)		91,028		5,946
EOG Resources (a)		90,024		5,989
Exxon Mobil (a)		203,292		14,519
Schlumberger (a)		220,021		13,879
XTO Energy		212,386		9,910

				50,243

Financials – 9.3%
Ambac Financial Group		92,550		7,727
American Express		261,687		15,128
American International Group		142,343		9,561
CIT Group		99,431		5,175
Goldman Sachs Group (a)		103,464		19,637
ICICI Bank, ADR		219,334		7,710
Morgan Stanley		60,410		4,617
PMI Group (a)		160,998		6,867
SLM		166,689		8,114

				84,536

Healthcare – 13.2%
Alcon (a) (b)		72,309		7,671
Amgen (b)		155,074		11,772
Baxter International		238,118		10,946
Caremark Rx (a)		315,170		15,516
Genentech (a) (b)		74,338		6,192
Henry Schein (a) (b)		87,769		4,361
Johnson & Johnson		138,469		9,333
Medtronic (a)		260,133		12,663
Novartis AG, ADR		181,372		11,015
UnitedHealth Group		330,785		16,136
Wellpoint (b)		185,785		14,179

				119,784

Industrials – 14.1%
Boeing (a)		100,796		8,050
Burlington Northern Santa Fe		191,430		14,842
Danaher (a)		150,374		10,792
Dun & Bradstreet (a) (b)		133,500		10,312
Fastenal (a)		94,287		3,794
General Electric		1,109,201		38,944
Precision Castparts (a)		139,839		9,517
Rockwell Automation		96,079		5,957
Rockwell Collins		108,012		6,273
United Technologies (a)		295,423		19,415

				127,896


Large Cap Growth Opportunities Fund (concluded)
DESCRIPTION		SHARES		VALUE

Information Technology (c) – 30.9%
Amphenol, Class A (a)			288,580	$	19,595
Apple Computer (b)			211,756		17,169
Autodesk (b)			344,974		12,678
Cisco Systems (b)			778,173		18,777
Citrix Systems (a) (b)			156,091		4,609
Corning (b)			475,532		9,715
EMC (b)			656,921		8,047
Google, Class A (a) (b)			58,150		27,702
Hewlett-Packard			647,271		25,075
Microchip Technology			426,809		14,055
Microsoft			994,761		28,560
Molex (a)			155,268		5,419
Motorola			606,658		13,989
NVIDIA (a) (b)			279,090		9,732
Oracle (b)			735,619		13,587
Paychex (a)			337,735		13,334
QUALCOMM (a)			427,087		15,542
Texas Instruments (a)			754,334		22,766

					280,351

Materials – 1.0%
Rio Tinto PLC, ADR (a)			41,543		9,197

Telecommunication Services – 2.8%
America Movil, Series L, ADR (a)			241,071		10,335
American Tower, Class A (a) (b)			422,577		15,221

					25,556

Total Common Stocks
	(Cost $782,934)				889,647

Investment Companies – 1.8%
iShares Nasdaq Biotechnology Index Fund (a) (b)
	(Cost $14,706)		203,419		16,212

Short-Term Investment – 0.2%
First American Prime Obligations Fund, Class Z (d)
	(Cost $2,485)		2,485,338		2,485

Investments Purchased with Proceeds from Securities Lending (e) – 20.9%
	(Cost $189,453)				189,453

Total Investments – 121.0%
	(Cost $989,578)				1,097,797

Other Assets and Liabilities, Net – (21.0)%					(190,687	)

Total Net Assets – 100.0%				$	907,110


(a)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $184,882 at October 31, 2006. See note 2 in Notes to Financial Statements.

(b)	Non-income producing security.

(c)	The fund is significantly invested in this sector and therefore is subject to additional risks. See note 6 in Notes to Financial Statements.

(d)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(e)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various money market funds and short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

ADR – American Depository Receipt

The accompanying notes are an integral part of the financial statements.

90 First American Funds Annual Report 2006

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Large Cap Select Fund
DESCRIPTION	SHARES		VALUE

Common Stocks – 99.6%
Consumer Discretionary – 13.3%
Circuit City Stores		210,078	$	5,668
Comcast, Class A (a) (b)		314,606		12,795
Gap		678,111		14,254
J.C. Penney (b)		75,234		5,660
Lowe’s		196,600		5,925
Mattel		237,151		5,367
Newell Rubbermaid (b)		278,932		8,028
Omnicom Group (b)		68,392		6,938

				64,635

Consumer Staples – 7.5%
Altria Group		111,741		9,088
Avon Products (b)		149,479		4,545
PepsiCo		111,980		7,104
Wal-Mart Stores		314,041		15,476

				36,213

Energy – 14.2%
Apache		162,084		10,587
Cameron International (a) (b)		55,829		2,797
ConocoPhillips		154,570		9,311
Exxon Mobil (b)		300,401		21,455
Halliburton		186,009		6,018
Hess (b)		119,511		5,067
Williams		328,291		8,020
XTO Energy		114,130		5,325

				68,580

Financials – 20.1%
ACE		174,331		9,981
AllianceBernstein Holding		63,386		4,925
Ambac Financial Group		68,334		5,705
American International Group		354,496		23,812
Bank of America (b)		412,018		22,196
Goldman Sachs Group (b)		40,093		7,609
ICICI Bank, ADR		121,514		4,271
Morgan Stanley		188,710		14,423
PMI Group (b)		106,175		4,528

				97,450

Healthcare – 11.3%
Alcon (b)		47,775		5,068
Amgen (a) (b)		111,247		8,445
Celgene (a) (b)		54,347		2,904
Coventry Health Care (a)		104,612		4,912
Genzyme (a) (b)		34,721		2,344
Laboratory Corporation of America (a)		53,167		3,641
Novartis AG, ADR		129,607		7,871
UnitedHealth Group		150,430		7,338
Wyeth Pharmaceuticals		236,594		12,073

				54,596

Industrials – 10.4%
Boeing		146,841		11,727
Eaton (b)		75,946		5,501
General Electric		521,167		18,298
L-3 Communications Holdings		113,919		9,173
Parker Hannifin		66,953		5,599

				50,298

Information Technology – 18.0%
Apple Computer (a)		62,649		5,080
Corning (a)		270,114		5,518
EMC (a)		512,940		6,284
Fiserv (a)		166,821		8,241


Large Cap Select Fund (concluded)
DESCRIPTION		SHARES		VALUE

Hewlett-Packard			295,583	$	11,451
Intel (b)			248,039		5,293
Motorola			408,271		9,415
NVIDIA (a)			255,242		8,900
Oracle (a) (b)			628,706		11,612
QUALCOMM			186,300		6,779
Texas Instruments (b)			277,850		8,386

					86,959

Materials – 1.1%
International Paper (b)			166,317		5,547

Telecommunication Services – 3.7%
ALLTEL (b)			143,919		7,672
Verizon Communications			200,900		7,433
Windstream (b)			212,723		2,919

					18,024

Total Common Stocks
	(Cost $429,358)				482,302

Short-Term Investment – 0.3%
First American Prime Obligations Fund, Class Z (c)
	(Cost $1,569)		1,569,449		1,569

Investments Purchased with Proceeds from Securities Lending (d) – 21.1%
	(Cost $101,948)				101,948

Total Investments – 121.0%
	(Cost $532,875)				585,819

Other Assets and Liabilities, Net – (21.0)%					(101,504	)

Total Net Assets – 100.0%				$	484,315


(a)	Non-income producing security.

(b)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $99,134 at October 31, 2006. See note 2 in Notes to Financial Statements.

(c)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(d)	The fund may loan securities in return for collateral in the form of cash, U.S. government securities, or other high grade debt obligations. The cash collateral is invested in various money market funds and short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

ADR – American Depository Receipt

First American Funds Annual Report 2006 91

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Large Cap Value Fund
DESCRIPTION	SHARES		VALUE

Common Stocks – 97.4%
Consumer Discretionary – 12.5%
Comcast, Class A (a) (b)		375,038	$	15,253
Darden Restaurants		220,976		9,259
Ford Motor (b)		1,166,518		9,659
Fortune Brands (b)		185,973		14,311
Gap		617,431		12,978
Harrah’s Entertainment (b)		141,898		10,547
J.C. Penney (b)		99,390		7,477
Nike, Class B		117,965		10,839
Sherwin-Williams (b)		126,632		7,500
Time Warner (b)		1,079,405		21,599

				119,422

Consumer Staples – 6.4%
Altria Group		231,028		18,789
General Mills (b)		214,392		12,182
Kroger		467,460		10,513
Procter & Gamble		306,926		19,456

				60,940

Energy – 13.3%
Apache (b)		153,575		10,031
BP, ADR (b)		91,531		6,142
ChevronTexaco		416,615		27,997
Exxon Mobil (b)		676,673		48,328
GlobalSantaFe (b)		154,657		8,027
Halliburton		130,184		4,211
Marathon Oil		144,122		12,452
Occidental Petroleum		212,772		9,987

				127,175

Financials (c) – 32.0%
ACE		349,231		19,993
Allstate (b)		244,167		14,982
Ambac Financial Group (b)		143,304		11,964
American International Group		329,261		22,116
Bank of America (b)		824,758		44,430
CIT Group		221,087		11,508
Citigroup		370,440		18,581
Genworth Financial, Class A		419,468		14,027
Goldman Sachs Group (b)		66,079		12,541
J.P. Morgan Chase (b)		607,725		28,830
Lehman Brothers Holdings (b)		187,892		14,626
Marshall & Ilsley (b)		274,955		13,181
MGIC Investment (b)		115,819		6,806
Morgan Stanley		376,796		28,799
Northern Trust (b)		247,591		14,539
Wells Fargo		799,906		29,029

				305,952

Healthcare – 6.4%
CIGNA		80,568		9,425
Merck (b)		298,796		13,571
Pfizer (b)		669,739		17,849
Wyeth Pharmaceuticals (b)		400,370		20,431

				61,276

Industrials – 8.3%
CSX		372,598		13,291
Eaton (b)		189,166		13,701
Emerson Electric		110,540		9,330


Large Cap Value Fund (concluded)
DESCRIPTION		SHARES		VALUE

General Electric			957,006	$	33,600
Illinois Tool Works			203,004		9,730

					79,652

Information Technology – 6.7%
Electronic Data Systems			596,488		15,109
Hewlett-Packard			479,735		18,585
Intel (b)			474,183		10,119
Motorola (b)			491,373		11,331
Texas Instruments (b)			300,118		9,058

					64,202

Materials – 3.0%
International Paper (b)			228,945		7,635
PPG Industries (b)			124,988		8,549
Rohm & Haas (b)			246,363		12,767

					28,951

Telecommunication Services – 5.2%
AT&T (b)			313,250		10,729
BellSouth			438,221		19,764
Verizon Communications (b)			510,507		18,888

					49,381

Utilities – 3.6%
Edison International			334,142		14,849
Exelon (b)			322,170		19,968

					34,817

Total Common Stocks
	(Cost $756,013)				931,768

Short-Term Investment – 2.5%
First American Prime Obligations Fund, Class Z (d)
	(Cost $23,672)		23,671,953		23,672

Investments Purchased with Proceeds from Securities Lending (e) – 23.5%
	(Cost $224,921)				224,921

Total Investments – 123.4%
	(Cost $1,004,606)				1,180,361

Other Assets and Liabilities, Net – (23.4)%					(224,137	)

Total Net Assets – 100.0%				$	956,224


(a)	Non-income producing security.

(b)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $218,077 at October 31, 2006. See note 2 in Notes to Financial Statements.

(c)	The fund is significantly invested in this sector and therefore is subject to additional risks. See note 6 in Notes to Financial Statements.

(d)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(e)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various money market funds and short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

ADR – American Depository Receipt

The accompanying notes are an integral part of the financial statements.

92 First American Funds Annual Report 2006

Statements of Assets and Liabilities October 31, 2006, all dollars and shares are rounded to thousands (000), except for per share data


	Large Cap Growth			Large Cap		Large Cap
	Opportunities Fund			Select Fund		Value Fund

Investments in unaffiliated securities, at cost	$	797,640		$	429,358	$	756,013
Investments in affiliated money market fund, at cost		2,485			1,569		23,672
Investments purchased with proceeds from securities lending, at cost (note 2)		189,453			101,948		224,921

ASSETS:
Investments in unaffiliated securities, at value* (note 2)	$	905,859		$	482,302	$	931,768
Investments in affiliated money market fund, at value (note 2)		2,485			1,569		23,672
Investments purchased with proceeds from securities lending, at value (note 2)		189,453			101,948		224,921
Receivable for dividends		500			231		781
Receivable for investment securities sold		6,205			330		6,844
Receivable for capital shares sold		413			411		287
Prepaid expenses and other assets		33			31		42

Total assets		1,104,948			586,822		1,188,315

LIABILITIES:
Payable for investment securities purchased		2,245			—		5,400
Payable upon return of securities loaned (note 2)		189,453			101,948		224,921
Payable for capital shares redeemed		5,336			148		954
Payable to affiliates (note 3)		726			383		741
Payable for distribution and shareholder servicing fees		39			2		37
Accrued expenses and other liabilities		39			26		38

Total liabilities		197,838			102,507		232,091

Net assets	$	907,110		$	484,315	$	956,224

COMPOSITION OF NET ASSETS:
Portfolio capital	$	860,758		$	424,282	$	708,841
Undistributed net investment income		1,285			78		—
Accumulated net realized gain (loss) on investments		(63,152	)		7,011		71,628
Net unrealized appreciation of investments		108,219			52,944		175,755

Net assets	$	907,110		$	484,315	$	956,224

*Including securities loaned, at value	$	184,882		$	99,134	$	218,077

Class A:
Net assets	$	90,285		$	7,152	$	115,438
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		3,052			471		5,218
Net asset value and redemption price per share	$	29.58		$	15.18	$	22.12
Maximum offering price per share ⁽¹⁾	$	31.30		$	16.06	$	23.41
Class B:
Net assets	$	13,990		$	643	$	9,815
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		499			43		456
Net asset value, offering price and redemption price per share ⁽²⁾	$	28.01		$	14.94	$	21.54
Class C:
Net assets	$	8,424		$	248	$	5,174
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		295			17		237
Net asset value, offering price and redemption price per share ⁽²⁾	$	28.58		$	14.95	$	21.81
Class R:
Net assets	$	558		$	118	$	164
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		19			8		7
Net asset value, offering price, and redemption price per share	$	29.41		$	15.12	$	22.10
Class Y:
Net assets	$	793,853		$	476,154	$	825,633
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		26,044			31,280		37,207
Net asset value, offering price, and redemption price per share	$	30.48		$	15.22	$	22.19


	(1)	The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%

	(2)	Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements.

First American Funds Annual Report 2006 93

Statements of Operations For the year ended October 31, 2006, all dollars are rounded to thousands (000)


	Large Cap Growth			Large Cap			Large Cap
	Opportunities Fund			Select Fund			Value Fund

INVESTMENT INCOME:
Dividends from affiliated money market fund	$	781		$	371		$	557
Dividends from unaffiliated securities		10,011			6,517			19,372
Less: Foreign taxes withheld		(36	)		(19	)		—
Securities lending income		251			84			199

Total investment income		11,007			6,953			20,128

EXPENSES (note 3):
Investment advisory fees		6,377			2,801			5,886
Administration fees		1,553			713			1,460
Transfer agent fees		1,027			417			895
Custodian fees		52			22			45
Professional fees		30			37			31
Registration fees		60			57			51
Postage and printing fees		65			21			59
Directors’ fees		23			19			22
Other expenses		24			22			24
Distribution and shareholder servicing fees – Class A		246			16			291
Distribution and shareholder servicing fees – Class B		166			6			113
Distribution and shareholder servicing fees – Class C		98			2			52
Distribution and shareholder servicing fees – Class R		3			—	⁽¹⁾		—	⁽¹⁾

Total expenses		9,724			4,133			8,929

Less: Fee waivers		(1	)		—	⁽¹⁾		—	⁽¹⁾
Less: Indirect payments from custodian (note 3)		(2	)		(3	)		(1	)

Total net expenses		9,721			4,130			8,928

Investment income – net		1,286			2,823			11,200

REALIZED AND UNREALIZED GAINS ON INVESTMENTS – NET (note 5):
Net realized gain on investments		49,878			8,397			79,006
Net change in unrealized appreciation or depreciation of investments		5,492			34,939			61,680

Net gain on investments		55,370			43,336			140,686

Net increase in net assets resulting from operations	$	56,656		$	46,159		$	151,886


	(1)	Due to the presentation of the financial statements in thousands, the numbers round to zero.

The accompanying notes are an integral part of the financial statements.

94 First American Funds Annual Report 2006

(This page intentionally left blank.)

Statements of Changes in Net Assets all dollars are rounded to thousands (000)


		Large Cap Growth
		Opportunities Fund

					One-Month
		Year			Fiscal Period			Year
		Ended			Ended			Ended
		10/31/06			10/31/05			9/30/05

OPERATIONS:
Investment income (loss) – net		$	1,286		$	(226	)	$	2,288
Net realized gain (loss) on investments			49,878			(3,309	)		54,623
Net realized gain on in-kind distributions			—			—			76,740
Net realized loss on futures			—			—			—
Net change in unrealized appreciation or depreciation of investments			5,492			(1,715	)		8,655
Net change in unrealized appreciation or depreciation of futures contracts			—			—			—

Net increase (decrease) in net assets resulting from operations			56,656			(5,250	)		142,306


DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income – net:
	Class A		—			—			(169	)
	Class B		—			—			(19	)
	Class C		—			—			(9	)
	Class R		—			—			—
	Class Y		—			—			(2,091	)
Net realized gain on investments:
	Class A		—			—			—
	Class B		—			—			—
	Class C		—			—			—
	Class R		—			—			—
	Class Y		—			—			—
Return of capital:
	Class A		—			—			(56	)
	Class B		—			—			(6	)
	Class C		—			—			(3	)
	Class R		—			—			—	⁽¹⁾
	Class Y		—			—			(692	)

Total distributions			—			—			(3,045	)


CAPITAL SHARE TRANSACTIONS (note 4):
Class A:
	Proceeds from sales		13,213			945			15,121
	Reinvestment of distributions		—			—			217
	Payments for redemptions		(33,886	)		(2,433	)		(33,271	)

Increase (decrease) in net assets from Class A transactions			(20,673	)		(1,488	)		(17,933	)

Class B:
	Proceeds from sales		736			48			1,151
	Reinvestment of distributions		—			—			25
	Payments for redemptions (note 3)		(7,250	)		(557	)		(9,138	)

Increase (decrease) in net assets from Class B transactions			(6,514	)		(509	)		(7,962	)

Class C:
	Proceeds from sales		538			57			1,190
	Reinvestment of distributions		—			—			12
	Payments for redemptions (note 3)		(3,347	)		(392	)		(4,197	)

Increase (decrease) in net assets from Class C transactions			(2,809	)		(335	)		(2,995	)

Class R:
	Proceeds from sales		261			2			286
	Reinvestment of distributions		—			—			—
	Payments for redemptions		(14	)		—			—

Increase in net assets from Class R transactions			247			2			286

Class Y:
	Proceeds from sales		132,441			14,066			165,303
	Reinvestment of distributions		—			—			1,595
	Payments for redemptions		(237,022	)		(9,839	)		(628,503	)

Increase (decrease) in net assets from Class Y transactions			(104,581	)		4,227			(461,605	)

Increase (decrease) in net assets from capital share transactions			(134,330	)		1,897			(490,209	)

Total increase (decrease) in net assets			(77,674	)		(3,353	)		(350,948	)
Net assets at beginning of period			984,784			988,137			1,339,085

Net assets at end of period		$	907,110		$	984,784		$	988,137

Undistributed (distributions in excess of) net investment income at end of period		$	1,285		$	(1	)	$	(1	)


	(1)	Due to the presentation of the financial statements in thousands, the numbers round to zero.

The accompanying notes are an integral part of the financial statements.

96 First American Funds Annual Report 2006


Large Cap									Large Cap
Select Fund									Value Fund

			One-Month									One-Month
Year			Fiscal Period			Year			Year			Fiscal Period			Year
Ended			Ended			Ended			Ended			Ended			Ended
10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05


$	2,823		$	14		$	1,942		$	11,200		$	20		$	11,497
	8,397			(731	)		16,321			79,006			4,760			84,365
	—			—			24,162			—			—			70,893
	—			—			(201	)		—			—			—
	34,939			(2,844	)		8,570			61,680			(27,139	)		17,537
	—			—			165			—			—			—

	46,159			(3,561	)		50,959			151,886			(22,359	)		184,292


	(29	)		—			(10	)		(1,231	)		(13	)		(1,072	)
	—	⁽¹⁾		—			—			(77	)		—			(62	)
	—	⁽¹⁾		—			—			(32	)		—			(21	)
	—	⁽¹⁾		—			—			—	⁽¹⁾		—			—
	(2,872	)		—			(1,808	)		(9,972	)		(148	)		(10,036	)
	(250	)		—			(17	)		(3,787	)		—			—
	(26	)		—			(4	)		(419	)		—			—
	(8	)		—			(1	)		(170	)		—			—
	(1	)		—			—			—	⁽¹⁾		—			—
	(14,936	)		—			(4,604	)		(23,452	)		—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—

	(18,122	)		—			(6,444	)		(39,140	)		(161	)		(11,191	)


	4,957			488			4,711			10,688			1,048			17,717
	143			—			18			4,696			12			1,012
	(4,049	)		(49	)		(362	)		(32,648	)		(1,369	)		(28,635	)

	1,051			439			4,367			(17,264	)		(309	)		(9,906	)

	193			16			341			627			20			698
	23			—			5			486			—			61
	(180	)		(3	)		(98	)		(6,446	)		(705	)		(10,604	)

	36			13			248			(5,333	)		(685	)		(9,845	)

	73			—			144			540			60			666
	8			—			1			198			—			20
	(28	)		—			(31	)		(1,582	)		(226	)		(2,263	)

	53			—			114			(844	)		(166	)		(1,577	)

	133			—			—			146			—			5
	1			—			—			1			—			—
	(30	)		—			—			(2	)		—			—

	104			—			—			145			—			5

	173,185			17,143			229,583			95,353			4,449			88,145
	7,404			—			4,810			21,057			85			6,324
	(73,053	)		(2,242	)		(240,782	)		(127,822	)		(9,749	)		(502,220	)

	107,536			14,901			(6,389	)		(11,412	)		(5,215	)		(407,751	)

	108,780			15,353			(1,660	)		(34,708	)		(6,375	)		(429,074	)

	136,817			11,792			42,855			78,038			(28,895	)		(255,973	)
	347,498			335,706			292,851			878,186			907,081			1,163,054

$	484,315		$	347,498		$	335,706		$	956,224		$	878,186		$	907,081

$	78		$	156		$	142		$	—		$	—		$	137

First American Funds Annual Report 2006 97

Financial Highlights For a share outstanding throughout the indicated periods.


							Realized and
		Net Asset					Unrealized			Distributions						Net Asset
		Value		Net			Gains			from Net			Distributions			Value
		Beginning		Investment			(Losses) on			Investment			from Return			End of
		of Period		Income (Loss)			Investments			Income			of Capital			Period

Large Cap Growth Opportunities (1)
Class A
	2006 (2)	$	27.86	$	(0.02	)	$	1.74		$	—		$	—		$	29.58
	2005 (3)		28.02		(0.01	)		(0.15	)		—			—			27.86
	2005 (4)		25.00		(0.01	)		3.08			(0.04	)		(0.01	)		28.02
	2004 (4)		22.84		(0.03	)		2.20			(0.01	)		—	⁽⁶⁾		25.00
	2003 (4)		19.16		—			3.73			(0.05	)		—			22.84
	2002 (4)		24.44		—			(5.23	)		(0.05	)		—			19.16
Class B
	2006 (2)	$	26.58	$	(0.22	)	$	1.65		$	—		$	—		$	28.01
	2005 (3)		26.75		(0.03	)		(0.14	)		—			—			26.58
	2005 (4)		24.02		(0.20	)		2.96			(0.02	)		(0.01	)		26.75
	2004 (4)		22.10		(0.21	)		2.13			—			—	⁽⁶⁾		24.02
	2003 (4)		18.64		(0.18	)		3.64			—			—			22.10
	2002 (4)		23.94		(0.18	)		(5.09	)		(0.03	)		—			18.64
Class C
	2006 (2)	$	27.12	$	(0.23	)	$	1.69		$	—		$	—		$	28.58
	2005 (3)		27.29		(0.03	)	$	(0.14	)		—			—			27.12
	2005 (4)		24.51		(0.20	)		3.00			(0.01	)		(0.01	)		27.29
	2004 (4)		22.55		(0.21	)		2.17			—			—	⁽⁶⁾		24.51
	2003 (4)		19.03		(0.18	)		3.72			(0.02	)		—			22.55
	2002 (4)		24.44		(0.18	)		(5.19	)		(0.04	)		—			19.03
Class R (5)
	2006 (2)	$	27.78	$	(0.09	)	$	1.72		$	—		$	—		$	29.41
	2005 (3)		27.94		(0.02	)		(0.14	)		—			—			27.78
	2005 (4)		24.98		(0.16	)		3.17			(0.05	)		—	⁽⁶⁾		27.94
	2004 (4)		22.85		(0.02	)		2.16			(0.01	)		—	⁽⁶⁾		24.98
	2003 (4)		19.17		—			3.73			(0.05	)		—			22.85
	2002 (4)		24.45		—			(5.23	)		(0.05	)		—			19.17
Class Y
	2006 (2)	$	28.64	$	0.05		$	1.79		$	—		$	—		$	30.48
	2005 (3)		28.79		(0.01	)		(0.14	)		—			—			28.64
	2005 (4)		25.63		0.07			3.15			(0.04	)		(0.02	)		28.79
	2004 (4)		23.38		0.03			2.25			(0.02	)		(0.01	)		25.63
	2003 (4)		19.59		0.07			3.80			(0.08	)		—			23.38
	2002 (4)		24.93		0.06			(5.33	)		(0.07	)		—			19.59


	(1)	Per share data calculated using average shares outstanding method.

	(2)	For the period November 1 to October 31 in the year indicated.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective in 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Includes a tax return of capital of less than $0.01.

	(7)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

98 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income (Loss)
					Ratio of			Investment			Average			to Average
			Net Assets		Expenses to			Income (Loss)			Net Assets			Net Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (7)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate



	6.17	%	$	90,285		1.19	%		(0.07	)%		1.19	%		(0.07	)%		94	%
	(0.57	)		104,960		1.21			(0.47	)		1.21			(0.47	)		6
	12.30			107,079		1.17			(0.03	)		1.20			(0.06	)		103
	9.52			112,379		1.15			(0.13	)		1.19			(0.17	)		113
	19.50			93,331		1.15			(0.02	)		1.19			(0.06	)		83
	(21.46	)		24,647		1.15			(0.02	)		1.22			(0.09	)		43

	5.38	%	$	13,990		1.94	%		(0.82	)%		1.94	%		(0.82	)%		94	%
	(0.64	)		19,601		1.96			(1.22	)		1.96			(1.22	)		6
	11.47			20,239		1.92			(0.77	)		1.95			(0.80	)		103
	8.69			25,633		1.90			(0.87	)		1.94			(0.91	)		113
	18.58			37,853		1.90			(0.84	)		1.94			(0.88	)		83
	(22.06	)		2,928		1.90			(0.75	)		1.97			(0.82	)		43

	5.38	%	$	8,424		1.94	%		(0.82	)%		1.94	%		(0.82	)%		94	%
	(0.62	)		10,739		1.96			(1.22	)		1.96			(1.22	)		6
	11.44			11,147		1.92			(0.78	)		1.95			(0.81	)		103
	8.69			12,811		1.90			(0.87	)		1.94			(0.91	)		113
	18.60			15,365		1.90			(0.81	)		1.94			(0.85	)		83
	(22.03	)		476		1.90			(0.73	)		1.97			(0.80	)		43

	5.87	%	$	558		1.44	%		(0.32	)%		1.57	%		(0.45	)%		94	%
	(0.57	)		290		1.46			(0.72	)		1.61			(0.87	)		6
	12.04			290		1.42			(0.57	)		1.60			(0.75	)		103
	9.38			1		1.15			(0.08	)		1.19			(0.12	)		113
	19.51			15,890		1.15			(0.01	)		1.19			(0.05	)		83
	(21.45	)		2,376		1.15			0.00			1.22			(0.07	)		43

	6.42	%	$	793,853		0.94	%		0.18	%		0.94	%		0.18	%		94	%
	(0.52	)		849,194		0.96			(0.22	)		0.96			(0.22	)		6
	12.58			849,382		0.92			0.26			0.95			0.23			103
	9.76			1,188,261		0.90			0.13			0.94			0.09			113
	19.78			1,072,174		0.90			0.31			0.94			0.27			83
	(21.23	)		255,311		0.90			0.24			0.97			0.17			43

First American Funds Annual Report 2006 99

Financial Highlights For a share outstanding throughout the indicated periods.


							Realized and
		Net Asset					Unrealized			Distributions			Distributions			Net Asset
		Value		Net			Gains			from Net			from Net			Value
		Beginning		Investment			(Losses) on			Investment			Realized			End of
		of Period		Income (Loss)			Investments			Income			Gains			Period

Large Cap Select Fund (1)
Class A
	2006 (2)	$	14.30	$	0.06			1.48		$	(0.06	)	$	(0.60	)	$	15.18
	2005 (3)		14.47		—			(0.17	)		—			—			14.30
	2005 (4)		12.52		0.06			2.15			(0.06	)		(0.20	)		14.47
	2004 (4)		11.45		0.04			1.19			(0.05	)		(0.11	)		12.52
	2003 (6)		10.00		0.03			1.46			(0.04	)		—			11.45
Class B
	2006 (2)	$	14.12	$	(0.05	)	$	1.48		$	(0.01	)	$	(0.60	)	$	14.94
	2005 (3)		14.30		(0.01	)		(0.17	)		—			—			14.12
	2005 (4)		12.41		(0.05	)		2.15			(0.01	)		(0.20	)		14.30
	2004 (4)		11.41		(0.06	)		1.18			(0.01	)		(0.11	)		12.41
	2003 (6)		10.00		(0.03	)		1.45			(0.01	)		—			11.41
Class C
	2006 (2)	$	14.13	$	(0.05	)	$	1.48		$	(0.01	)	$	(0.60	)	$	14.95
	2005 (3)		14.31		(0.01	)		(0.17	)		—			—			14.13
	2005 (4)		12.43		(0.05	)		2.14			(0.01	)		(0.20	)		14.31
	2004 (4)		11.42		(0.06	)		1.19			(0.01	)		(0.11	)		12.43
	2003 (6)		10.00		(0.02	)		1.45			(0.01	)		—			11.42
Class R (5)
	2006 (2)	$	14.26	$	0.01		$	1.49		$	(0.04	)	$	(0.60	)	$	15.12
	2005 (3)		14.43		(0.01	)		(0.16	)		—			—			14.26
	2005 (4)		12.49		0.02			2.15			(0.03	)		(0.20	)		14.43
	2004 (4)		11.44		0.02			1.18			(0.04	)		(0.11	)		12.49
	2003 (6)		10.00		0.03			1.44			(0.03	)		—			11.44
Class Y
	2006 (2)	$	14.33	$	0.10		$	1.49		$	(0.10	)	$	(0.60	)	$	15.22
	2005 (3)		14.49		—			(0.16	)		—			—			14.33
	2005 (4)		12.53		0.09			2.16			(0.09	)		(0.20	)		14.49
	2004 (4)		11.45		0.07			1.19			(0.07	)		(0.11	)		12.53
	2003 (6)		10.00		0.05			1.45			(0.05	)		—			11.45


	(1)	Per share data calculated using average shares outstanding method.

	(2)	For the period November 1 to October 31 in the year indicated.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective in 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	For the period from January 31, 2003, when the class of shares was first offered, to September 30, 2003. All ratios for the period have been annualized, except total return and portfolio turnover.

	(7)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

100 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income (Loss)
					Ratio of			Investment			Average			to Average Net
			Net Assets		Expenses to			Income (Loss)			Net Assets			Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (7)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate

	11.07	%	$	7,152		1.20	%		0.41	%		1.20	%		0.41	%		112	%
	(1.17	)		5,682		1.19			(0.20	)		1.19			(0.20	)		8
	17.83			5,299		1.17			0.41			1.22			0.36			176
	10.82			714		1.15			0.30			1.21			0.24			67
	14.91			215		1.15			0.42			1.24			0.33			65
	10.32	%	$	643		1.95	%		(0.34	)%		1.95	%		(0.34	)%		112	%
	(1.26	)		573		1.94			(0.95	)		1.94			(0.95	)		8
	17.02			567		1.92			(0.36	)		1.97			(0.41	)		176
	9.89			270		1.90			(0.44	)		1.96			(0.50	)		67
	14.18			113		1.90			(0.35	)		1.99			(0.44	)		65
	10.36	%	$	248		1.95	%		(0.35	)%		1.95	%		(0.35	)%		112	%
	(1.26	)		180		1.94			(0.95	)		1.94			(0.95	)		8
	16.91			182		1.92			(0.35	)		1.97			(0.40	)		176
	9.98			59		1.90			(0.45	)		1.96			(0.51	)		67
	14.27			26		1.90			(0.32	)		1.99			(0.41	)		65
	10.79	%	$	118		1.45	%		0.08	%		1.57	%		(0.04	)%		112	%
	(1.18	)		2		1.44			(0.45	)		1.59			(0.60	)		8
	17.54			2		1.42			0.14			1.62			(0.06	)		176
	10.60			1		1.32			0.18			1.38			0.12			67
	14.76			1		1.15			0.39			1.24			0.30			65
	11.37	%	$	476,154		0.95	%		0.66	%		0.95	%		0.66	%		112	%
	(1.10	)		341,061		0.94			0.05			0.94			0.05			8
	18.14			329,656		0.92			0.67			0.97			0.62			176
	11.10			291,807		0.90			0.57			0.96			0.51			67
	15.02			126,391		0.90			0.71			0.99			0.62			65

First American Funds Annual Report 2006 101

Financial Highlights For a share outstanding throughout the indicated periods.


							Realized and
		Net Asset					Unrealized			Distributions			Distributions			Net Asset
		Value		Net			Gains			from Net			from Net			Value
		Beginning		Investment			(Losses) on			Investment			Realized			End of
		of Period		Income (Loss)			Investments			Income			Gains			Period

Large Cap Value Fund (1)
Class A
	2006 (2)	$	19.56	$	0.21		$	3.19		$	(0.21	)	$	(0.63	)	$	22.12
	2005 (3)		20.06		—			(0.50	)		—			—			19.56
	2005 (4)		17.21		0.17			2.85			(0.17	)		—			20.06
	2004 (4)		14.97		0.15			2.24			(0.15	)		—			17.21
	2003 (4)		12.77		0.18			2.20			(0.18	)		—			14.97
	2002 (4)		15.98		0.14			(3.21	)		(0.14	)		—			12.77
Class B
	2006 (2)	$	19.12	$	0.06		$	3.11		$	(0.12	)	$	(0.63	)	$	21.54
	2005 (3)		19.62		(0.01	)		(0.49	)		—			—			19.12
	2005 (4)		16.87		0.03			2.78			(0.06	)		—			19.62
	2004 (4)		14.70		0.03			2.20			(0.06	)		—			16.87
	2003 (4)		12.55		0.08			2.15			(0.08	)		—			14.70
	2002 (4)		15.71		0.02			(3.15	)		(0.03	)		—			12.55
Class C
	2006 (2)	$	19.35	$	0.06		$	3.15		$	(0.12	)	$	(0.63	)	$	21.81
	2005 (3)		19.85		(0.01	)		(0.49	)		—			—			19.35
	2005 (4)		17.07		0.03			2.81			(0.06	)		—			19.85
	2004 (4)		14.87		0.03			2.23			(0.06	)		—			17.07
	2003 (4)		12.70		0.08			2.17			(0.08	)		—			14.87
	2002 (4)		15.90		0.02			(3.19	)		(0.03	)		—			12.70
Class R (5)
	2006 (2)	$	19.55	$	0.12		$	3.23		$	(0.17	)	$	(0.63	)	$	22.10
	2005 (3)		20.06		(0.01	)		(0.50	)		—			—			19.55
	2005 (4)		17.22		0.12			2.85			(0.13	)		—			20.06
	2004 (4)		14.96		0.17			2.23			(0.14	)		—			17.22
	2003 (4)		12.77		0.18			2.19			(0.18	)		—			14.96
	2002 (4)		15.97		0.13			(3.18	)		(0.15	)		—			12.77
Class Y
	2006 (2)	$	19.62	$	0.26		$	3.21		$	(0.27	)	$	(0.63	)	$	22.19
	2005 (3)		20.12		—			(0.50	)		—			—			19.62
	2005 (4)		17.26		0.22			2.86			(0.22	)		—			20.12
	2004 (4)		15.01		0.20			2.24			(0.19	)		—			17.26
	2003 (4)		12.80		0.22			2.20			(0.21	)		—			15.01
	2002 (4)		16.02		0.18			(3.22	)		(0.18	)		—			12.80


	(1)	Per share data calculated using average shares outstanding method.

	(2)	For the period November 1 to October 31 in the year indicated.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective in 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

102 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income (Loss)
					Ratio of			Investment			Average			to Average
			Net Assets		Expenses to			Income (Loss)			Net Assets			Net Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate


	17.93	%	$	115,438		1.19	%		1.05	%		1.19	%		1.05	%		55	%
	(2.48	)		118,443		1.21			(0.17	)		1.21			(0.17	)		2
	17.62			121,809		1.17			0.90			1.20			0.87			61
	16.01			113,683		1.15			0.91			1.19			0.87			104
	18.71			88,024		1.15			1.30			1.20			1.25			94
	(19.37	)		85,182		1.15			0.86			1.20			0.81			82

	17.04	%	$	9,815		1.94	%		0.32	%		1.94	%		0.32	%		55	%
	(2.55	)		13,826		1.96			(0.92	)		1.96			(0.92	)		2
	16.70			14,876		1.92			0.15			1.95			0.12			61
	15.19			21,829		1.90			0.19			1.94			0.15			104
	17.83			30,987		1.90			0.56			1.95			0.51			94
	(19.96	)		33,720		1.90			0.11			1.95			0.06			82
	17.05	%	$	5,174		1.94	%		0.30	%		1.94	%		0.30	%		55	%
	(2.52	)		5,399		1.96			(0.92	)		1.96			(0.92	)		2
	16.75			5,710		1.92			0.15			1.95			0.12			61
	15.21			6,344		1.90			0.18			1.94			0.14			104
	17.76			6,844		1.90			0.56			1.95			0.51			94
	(19.97	)		7,524		1.90			0.11			1.95			0.06			82

	17.63	%	$	164		1.44	%		0.58	%		1.55	%		0.47	%		55	%
	(2.54	)		7		1.46			(0.42	)		1.61			(0.57	)		2
	17.34			7		1.42			0.61			1.60			0.43			61
	16.05			1		1.15			1.00			1.19			0.96			104
	18.63			23,845		1.15			1.30			1.20			1.25			94
	(19.36	)		24,129		1.15			0.90			1.20			0.85			82
	18.23	%	$	825,633		0.94	%		1.29	%		0.94	%		1.29	%		55	%
	(2.47	)		740,511		0.96			0.08			0.96			0.08			2
	17.92			764,679		0.92			1.17			0.95			1.14			61
	16.31			1,021,197		0.90			1.17			0.94			1.13			104
	19.04			874,267		0.90			1.55			0.95			1.50			94
	(19.22	)		825,179		0.90			1.11			0.95			1.06			82

First American Funds Annual Report 2006 103

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Balanced Fund
DESCRIPTION	SHARES		VALUE

Common Stocks – 61.0%
Consumer Discretionary – 8.3%
Cheesecake Factory (a) (b)		2,899	$	82
Children’s Place Retail Stores (a) (b)		3,529		248
Christopher & Banks		6,186		167
Circuit City Stores (a)		90,404		2,439
Comcast, Class A (a) (b)		135,386		5,506
Cosi (a) (b)		26,331		114
Gap		291,816		6,134
GSI Commerce (a) (b)		10,010		180
Hibbett Sporting Goods (b)		5,478		160
Interface, Class A (b)		3,001		44
J.C. Penney (a)		32,376		2,436
Lowe’s		84,604		2,550
Mattel		102,055		2,309
McCormick & Schmick’s Seafood Restaurant (b)		3,107		82
Nautilus Group (a)		28,843		408
Newell Rubbermaid (a)		120,035		3,455
Nutri/ System (a) (b)		4,794		296
Omnicom Group (a)		29,432		2,986
P.F. Chang’s China Bistro (a) (b)		2,428		101
RARE Hospitality International (b)		3,012		95
Ruth’s Chris Steak House (b)		6,864		135
Scientific Games, Class A (b)		8,773		246
Station Casinos (a)		1,632		98
Texas Roadhouse, Class A (a) (b)		7,964		115
Tween Brands (a) (b)		4,169		174
WCI Communities (b)		5,999		97
WMS Industries (a) (b)		1,754		62

				30,719

Consumer Staples – 4.4%
Altria Group		48,086		3,911
Avon Products		64,326		1,956
Central Garden & Pet (a) (b)		4,897		245
PepsiCo		48,189		3,057
Reddy Ice Holdings		4,398		106
Reliv International		10,884		109
Usana Health Sciences (a) (b)		5,175		232
Wal-Mart Stores		135,143		6,660

				16,276

Energy – 8.2%
Apache		69,751		4,556
Arena Resources (a) (b)		1,880		67
Brigham Exploration (b)		19,119		149
Cameron International (a) (b)		24,025		1,204
Compton Petroleum (b)		13,575		144
Comstock Resources (a) (b)		6,363		177
ConocoPhillips		66,517		4,007
Exxon Mobil		129,273		9,233
Halliburton		80,046		2,589
Helix Energy Solutions Group (a) (b)		5,508		178
Hess (a)		51,430		2,181
St. Mary Land & Exploration		3,665		137
Western Refining (a)		3,755		88
W-H Energy Services (a) (b)		1,445		68
Williams		141,276		3,451
XTO Energy		49,114		2,292

				30,521

Financials – 12.3%
ACE		75,021		4,295
Affiliated Managers Group (a) (b)		3,026		303
AllianceBernstein Holding		27,277		2,119
Ambac Financial Group		29,407		2,455
American International Group		152,553		10,247
Bank of America (a)		177,306		9,551
BioMed Realty Trust – REIT (a)		4,898		158
CoBiz		2,549		58
Columbia Banking System		3,263		103
Cullen/ Frost Bankers		5,105		276
Dime Community Bancshares		9,788		137
East West Bancorp		6,026		220
First Financial Bankshares (a)		2,190		88
First Marblehead (a)		672		45
First Potomac Realty Trust – REIT		6,938		215
First Republic Bank (a)		6,307		246
Goldman Sachs Group		17,253		3,274
ICICI Bank, ADR		52,292		1,838
Independent Bank		5,231		175
Investors Financial Services		3,464		136
Kite Realty Group Trust – REIT		9,696		178
LaSalle Hotel Properties – REIT		2,242		95
Maguire Properties – REIT (a)		1,959		84
Morgan Stanley		81,209		6,207
Newcastle Investment – REIT		4,595		136
NorthStar Realty Finance – REIT		7,346		111
Platinum Underwriters Holdings		8,061		241
PMI Group (a)		45,691		1,949
SL Green Realty – REIT (a)		1,644		199
South Financial Group		3,631		96
Thomas Weisel Partners Group (a) (b)		8,689		139
Umpqua Holdings (a)		5,203		147
Winston Hotels – REIT		3,698		45

				45,566

Healthcare – 7.1%
Alcon (a)		20,559		2,181
Amgen (b)		47,874		3,634
Caliper Life Sciences (b)		7,002		36
Celgene (a) (b)		23,387		1,250
Coventry Health Care (b)		45,018		2,114
Curis (b)		24,949		37
Dexcom (a) (b)		3,601		32
DJ Orthopedics (a) (b)		5,602		225
Genzyme (a) (b)		14,942		1,009
Healthways (a) (b)		3,022		128
Horizon Health (a) (b)		5,433		84
Human Genome Sciences (a) (b)		8,129		108
ICU Medical (a) (b)		4,590		194
Immucor (b)		5,131		141
ImmunoGen (a) (b)		14,698		59
K-V Pharmaceutical, Class A (b)		4,713		105
Laboratory Corporation of America (b)		22,880		1,567
LCA-Vision (a)		4,918		173
Magellan Health Services (b)		5,500		240
Medarex (a) (b)		7,602		98
Merge Technologies (a) (b)		6,082		47
Neurocrine Biosciences (a) (b)		1,470		17
Novartis AG, ADR		55,775		3,387
Pediatrix Medical Group (b)		8,367		376
Quidel (b)		2,389		37
Salix Pharmaceuticals (a) (b)		11,090		148
Senomyx (a) (b)		6,363		98
SonoSite (b)		1,899		54
SurModics (a) (b)		3,365		117
UnitedHealth Group		64,736		3,158
Vertex Pharmaceuticals (a) (b)		3,120		127
Wyeth Pharmaceuticals		101,815		5,196

				26,177

The accompanying notes are an integral part of the financial statements.

104 First American Funds Annual Report 2006


Balanced Fund (continued)
DESCRIPTION	SHARES		VALUE

Industrials – 6.7%
Acuity Brands (a)		2,157	$	107
AirTran Holdings (a) (b)		27,750		277
AMETEK (a)		6,451		301
Boeing		63,191		5,046
CLARCOR		2,192		71
CRA International (a) (b)		3,547		180
Eaton		32,682		2,367
Energy Conversion Devices (a) (b)		1,664		61
ESCO Technologies (a) (b)		1,730		75
Forward Air (a)		6,731		219
General Electric		224,277		7,874
Kennametal		1,679		104
KVH Industries (b)		1,630		18
L-3 Communications Holdings		49,023		3,947
Labor Ready (b)		10,834		190
Lennox International (a)		10,199		275
Manitowoc		2,989		164
NCI Building Systems (a) (b)		3,334		200
Parker Hannifin		28,812		2,410
Power-One (a) (b)		27,576		189
Steelcase, Class A		13,387		222
Timken (a)		3,577		107
WESCO International (a) (b)		3,094		202

				24,606

Information Technology – 11.1%
Advanced Analogic Technologies (a) (b)		15,525		97
Aeroflex (b)		5,267		57
Apple Computer (b)		26,960		2,186
BISYS Group (b)		31,950		353
Cogent (a) (b)		9,298		107
Corning (b)		116,240		2,375
Digital River (a) (b)		2,083		120
Digitas (a) (b)		21,507		227
EMC (b)		220,737		2,704
Entegris (a) (b)		34,145		383
F5 Networks (b)		3,679		243
Fiserv (b)		71,789		3,546
Harmonic (b)		13,918		113
Hewlett-Packard		127,200		4,928
Hutchinson Technology (a) (b)		11,527		267
Hyperion Solutions (a) (b)		7,212		270
Intel		106,740		2,278
Motorola		175,694		4,051
NVIDIA (b)		109,840		3,830
Oracle (b)		270,555		4,997
Plexus (b)		2,060		45
PMC-Sierra (a) (b)		29,158		193
Progress Software (b)		5,347		154
QUALCOMM		80,172		2,917
Rackable Systems (a) (b)		3,761		117
Silicon Image (b)		15,595		184
Stellent		13,972		156
Stratasys (a) (b)		3,325		93
Stratex Networks (a) (b)		27,995		131
Tessera Technologies (b)		5,329		186
Texas Instruments		119,569		3,609
TIBCO Software (a) (b)		17,660		163
Trident Microsystems (a) (b)		8,710		184

				41,264

Materials – 0.8%
Albemarle		3,770		245
Century Aluminum (a) (b)		2,809		110
International Paper (a)		71,572		2,387


Balanced Fund (continued)
DESCRIPTION		SHARES/PAR		VALUE

Schnitzer Steel Industries, Class A			4,551	$	159
Texas Industries			2,338		145

					3,046

Telecommunication Services – 2.1%
ALLTEL (a)			61,934		3,302
General Communication (b)			10,503		137
Verizon Communications			86,455		3,199
Windstream (a)			91,542		1,256

					7,894

Utilities – 0.0%
NSTAR (a)			2,527		88

Total Common Stocks
	(Cost $195,101)				226,157

Investment Companies – 4.1%
iShares MSCI EAFE Index Fund (a)			162,100		11,394
iShares MSCI Emerging Markets Index Fund (a)			10,500		1,088
iShares MSCI EMU Index Fund (a)			6,800		662
iShares MSCI Japan Index Fund (a)			74,500		1,029
iShares MSCI Pacific ex-Japan Index Fund (a)			3,300		394
iShares S&P Europe 350 Index Fund (a)			6,100		611

Total Investment Companies
	(Cost $11,146)				15,178

U.S. Government Agency Mortgage-Backed Securities – 11.7%
Adjustable Rate (c) – 1.3%
Federal Home Loan Mortgage Corporation Pool
	7.168%, 01/01/2028, #786281	$	205		208
	5.790%, 07/01/2036, #1K1238 (a)		1,084		1,091
Federal National Mortgage Association Pool
	6.164%, 04/01/2018, #070009		47		47
	6.379%, 09/01/2033, #725553 (a)		747		753
	5.280%, 11/01/2034, #735054		843		823
	4.864%, 09/01/2035, #745168 (a)		832		819
	5.731%, 09/01/2036, #884778		1,070		1,075

					4,816

Fixed Rate – 10.4%
Federal Home Loan Mortgage Corporation Pool
	4.000%, 04/01/2008, #M90808 (a)		583		575
	6.500%, 04/01/2008, #E00225		8		8
	7.000%, 04/01/2008, #E46044		4		4
	4.000%, 10/01/2010, #M80855		849		821
	5.500%, 03/01/2013, #E00546		117		118
	4.500%, 05/01/2018, #P10032 (a)		423		416
	6.500%, 11/01/2028, #C00676		506		520
	7.000%, 12/01/2029, #G01091		94		97
	6.500%, 07/01/2031, #A17212 (a)		345		354
	6.000%, 05/01/2032, #C01361		117		118
Federal National Mortgage Association Pool
	3.790%, 07/01/2013, #386314 (a)		1,334		1,243
	6.000%, 09/01/2017, #653368		271		276
	5.000%, 07/01/2018, #555621		1,183		1,168
	5.000%, 12/01/2018, #725012		984		971
	4.500%, 06/01/2019, #045181		350		339
	5.000%, 11/01/2019, #725934		286		282
	5.500%, 01/01/2020, #735386 (a)		541		543
	5.500%, 06/01/2020, #735792		462		464
	5.000%, 02/01/2021, #745279 (a)		1,549		1,526
	6.000%, 10/01/2022, #254513 (a)		464		471
	5.500%, 10/01/2024, #255456 (a)		956		953
	5.500%, 12/01/2024, #357662		811		808
	5.500%, 02/01/2025, #255628 (a)		951		949

First American Funds Annual Report 2006 105

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Balanced Fund (continued)
DESCRIPTION			PAR		VALUE

		7.000%, 04/01/2029, #323681	$	109	$	113
		6.500%, 12/01/2031, #254169 (a)		435		443
		6.000%, 04/01/2032, #745101 (a)		951		969
		6.500%, 05/01/2032, #640032		774		793
		7.000%, 07/01/2032, #545815 (a)		197		204
		6.000%, 09/01/2032, #254447 (a)		378		381
		6.000%, 01/01/2033, #676647		657		662
		5.500%, 04/01/2033, #694605		1,045		1,035
		5.500%, 06/01/2033, #843435 (a)		467		463
		5.500%, 07/01/2033, #728667 (a)		550		545
		5.500%, 08/01/2033, #733380 (a)		1,177		1,167
		5.000%, 10/01/2033, #741897		819		793
		5.500%, 10/01/2033, #555800 (a)		1,214		1,203
		5.500%, 11/01/2033 (d)		3,965		3,918
		6.000%, 11/01/2033, #772130		220		222
		6.000%, 11/01/2033, #772256		211		213
		5.500%, 12/01/2033, #756202		722		716
		5.000%, 03/01/2034, #725205 (a)		917		888
		5.000%, 03/01/2034, #725250 (a)		817		791
		5.500%, 04/01/2034, #725424 (a)		440		436
		5.500%, 05/01/2034, #357571 (a)		797		789
		5.000%, 06/01/2034, #782909 (a)		395		382
		6.500%, 06/01/2034, #735273		820		840
		6.000%, 11/14/2035 (d)		1,170		1,177
		5.500%, 03/01/2036, #865972 (a)		1,219		1,205
		5.500%, 03/01/2036, #870157 (a)		1,177		1,163
		6.500%, 04/01/2036, #852909 (a)		757		771
		6.500%, 07/01/2036, #831683		655		668
		6.000%, 08/01/2036, #885536		1,584		1,594
		6.500%, 08/01/2036, #893318		604		615
Government National Mortgage Association Pool
		6.500%, 10/20/2010, #002108		15		16
		7.500%, 06/15/2027, #447728		9		9
		7.500%, 09/15/2027, #455516		12		13
		7.000%, 04/15/2029, #506639		166		172

						38,393

Total U.S. Government Agency Mortgage-Backed Securities
		(Cost $43,559)				43,209

Asset-Backed Securities – 6.6%
Automotive – 0.9%
Harley-Davidson Motorcycle Trust
	Series 2005-4, Class A2
		4.850%, 06/15/2012		470		468
Hertz Vehicle Financing
	Series 2005-2A, Class A6
		5.080%, 11/25/2011 (e)		935		931
Triad Auto Receivables Owner Trust
	Series 2006-A, Class A3
		4.770%, 01/12/2011		720		717
Volkswagen Auto Loan Enhanced Trust
	Series 2005-1, Class A4
		4.860%, 04/20/2012		1,170		1,165

						3,281

Commercial – 4.4%
Bank of America Commercial Mortgage
	Series 2004-5, Class A3
		4.561%, 11/10/2041		710		691
	Series 2006-2, Class A4
		5.741%, 05/10/2045		340		353
Bear Stearns Commercial Mortgage Securities
	Series 2005-PW10, Class A4
		5.405%, 12/11/2040 (a)		635		640
Commercial Mortgage Pass-Through Certificates
	Series 2006-CN2A, Class A2FX
		5.449%, 02/05/2019 (e)	$	585	$	591
	Series 2005-LP5, Class A2
		4.630%, 05/10/2043		925		912
Deutsche Mortgage and Asset Receiving
	Series 1998-C1, Class A2
		6.538%, 06/15/2031		346		349
GE Capital Commercial Mortgage Corporation
	Series 2005-C3, Class A2
		4.853%, 07/10/2045		725		719
GMAC Commercial Mortgage Securities
	Series 2004-C2, Class A1
		3.896%, 08/10/2038		540		530
	Series 2005-C1, Class A2
		4.471%, 05/10/2043		1,195		1,173
Greenwich Capital Commercial Funding
	Series 2003-C1, Class A2
		3.285%, 07/05/2035		1,761		1,687
	Series 2005-GG5, Class A2
		5.117%, 04/10/2037		1,600		1,600
	Series 2005-GG5, Class A5
		5.224%, 04/10/2037		750		747
GS Mortgage Securities II
	Series 2006-GG8, Class A4
		5.560%, 11/10/2039		1,965		2,002
	Series 2006-RR2, Class A1
		5.689%, 06/23/2046 (c) (e)		985		998
J.P. Morgan Chase Commercial Mortgage Securities
	Series 2005-LDP5, Class A4
		5.179%, 12/15/2044 (c)		540		540
LB-UBS Commercial Mortgage Trust
	Series 2003-C3, Class A2
		3.086%, 05/15/2027		1,280		1,241
	Series 2005-C7, Class A2
		5.103%, 11/15/2030		800		799
Nomura Asset Securities
	Series 1998-D6, Class A1B
		6.590%, 03/15/2030		749		760

						16,332

Credit Cards – 0.5%
Citibank Credit Card Issuance Trust
	Series 2006-A4, Class A4
		5.450%, 05/10/2013		805		819
MBNA Credit Card Master Note Trust
	Series 2005-A1, Class A1
		4.200%, 09/15/2010		1,130		1,116

						1,935

Home Equity – 0.0%
Saxon Asset Securities Trust
	Series 2004-1, Class A
		5.590%, 03/25/2035 (c)		16		16

Other – 0.8%
Global Signal Trust
	Series 2004-2A, Class A
		4.232%, 12/15/2014 (e)		750		732
GRP/ AG Real Estate Asset Trust
	Series 2005-1, Class A
		4.850%, 01/25/2035 (e)		74		73

The accompanying notes are an integral part of the financial statements.

106 First American Funds Annual Report 2006


Balanced Fund (continued)
DESCRIPTION			PAR		VALUE

Small Business Administration
	Series 2006-P10A, Class 1
		5.408%, 02/10/2016	$	1,079	$	1,086
	Series 2006-P10B, Class 1
		5.681%, 08/10/2016		1,145		1,163

						3,054

Total Asset-Backed Securities
		(Cost $24,619)				24,618

Corporate Bonds – 5.5%
Banking – 0.1%
J.P. Morgan Chase
		5.150%, 10/01/2015		160		157
J.P. Morgan Chase Capital XX
	Series T
		6.550%, 09/29/2036		235		243

						400

Basic Industry – 0.8%
Celulosa Arauco y Constitucion
		5.625%, 04/20/2015		230		226
Falconbridge
		7.350%, 06/05/2012		320		345
FMG Finance
		10.000%, 09/01/2013 (a) (e)		195		189
Ineos Group Holdings
		8.500%, 02/15/2016 (a) (e)		410		395
LPG International
		7.250%, 12/20/2015		290		288
Noble Group
		6.625%, 03/17/2015 (e)		255		230
Sino Forest
		9.125%, 08/17/2011 (e)		195		206
Southern Copper
		7.500%, 07/27/2035 (a)		390		417
Teck Cominco Limited
		6.125%, 10/01/2035		190		185
Vale Overseas
		6.250%, 01/11/2016		175		176
Vedanta Resources
		6.625%, 02/22/2010 (e)		180		177

						2,834

Brokerage – 0.2%
Merrill Lynch
		6.050%, 05/16/2016 (a)		465		483
Morgan Stanley
		5.375%, 10/15/2015 (a)		440		437

						920

Capital Goods – 0.3%
Chart Industries
		9.125%, 10/15/2015 (e)		195		204
Hutchison Whampoa International
		7.450%, 11/24/2033 (e)		210		242
Owens-Illinois
		8.100%, 05/15/2007 (a)		325		327
Siemens Financiering
		6.125%, 08/17/2026 (a) (e)		225		234

						1,007

Communications – 0.8%
C & M Finance
		8.100%, 02/01/2016 (a) (e)		180		180
Comcast
		7.050%, 03/15/2033 (a)		430		466
Dex Media West
		9.875%, 08/15/2013	$	221	$	240
Echostar DBS
		7.000%, 10/01/2013 (e)		160		159
Embarq
		7.995%, 06/01/2036		245		260
Sprint Capital
		6.900%, 05/01/2019		400		420
Telecom Italia Capital
		7.200%, 07/18/2036		235		247
Time Warner Entertainment
		8.375%, 07/15/2033		435		530
Verizon Global Funding
		7.750%, 12/01/2030		200		234
Vimpelcom
		8.250%, 05/23/2016 (e)		230		238

						2,974

Consumer Cyclical – 0.5%
Autonation
		7.000%, 04/15/2014		290		289
DaimlerChrysler
		4.875%, 06/15/2010		130		127
Duty Free International
		7.000%, 01/15/2004 (f) (g)		588		118
Ford Motor
		7.450%, 07/16/2031 (a)		635		498
Galaxy Entertainment
		9.875%, 12/15/2012 (e)		175		185
General Motors
		8.250%, 07/15/2023		230		204
Lippo Karwaci Finance
		8.875%, 03/09/2011		175		167
MGM Mirage
		6.625%, 07/15/2015		290		274

						1,862

Consumer Non Cyclical – 0.2%
Fisher Scientific International
		6.750%, 08/15/2014		220		224
Kroger
		6.750%, 04/15/2012		350		368

						592

Electric – 0.6%
Edison Mission Energy
		7.500%, 06/15/2013 (e)		175		180
Florida Power & Light
		5.650%, 02/01/2037 (a)		270		270
National Grid
		6.300%, 08/01/2016 (a)		230		240
NRG Energy
		7.250%, 02/01/2014		310		313
Ohio Power, Series K
		6.000%, 06/01/2016 (a)		275		284
Oncor Electric Delivery
		7.000%, 05/01/2032		225		250
Pacific Gas & Electric
		6.050%, 03/01/2034 (a)		230		235
Taqa Abu Dhabi National
		6.500%, 10/27/2036 (a) (e)		355		371

						2,143

First American Funds Annual Report 2006 107

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Balanced Fund (continued)
DESCRIPTION			PAR		VALUE

Energy – 0.5%
Bluewater Finance
		10.250%, 02/15/2012	$	300	$	306
Gazprom International
		7.201%, 02/01/2020 (e)		225		237
Nexen
		5.875%, 03/10/2035		270		258
Petro-Canada
		5.350%, 07/15/2033		190		169
Tengizcheveroil Finance
		6.124%, 11/15/2014 (e)		370		368
Tesoro
		6.625%, 11/01/2015 (e)		375		365
XTO Energy
		6.100%, 04/01/2036 (a)		345		345

						2,048

Finance Companies – 0.1%
Capital One Financial
		6.150%, 09/01/2016		240		247
Gazprombank
		6.500%, 09/23/2015		240		237

						484

Insurance – 0.5%
Liberty Mutual Group
		6.500%, 03/15/2035 (e)		275		272
Marsh & McLennan
		5.750%, 09/15/2015		605		583
Unumprovident
		5.997%, 05/15/2008		335		337
ZFS Finance USA Trust II
		6.450%, 12/15/2065 (c) (e)		520		519

						1,711

Natural Gas – 0.1%
Enterprise Products
		8.375%, 08/01/2066		180		193
Southern Union
		7.200%, 11/01/2066 (c)		155		157

						350

Real Estate Investment Trust – 0.2%
Health Care Properties, Series MTN
		6.300%, 09/15/2016		380		387
Prologis 2006
		5.750%, 04/01/2016 (a)		445		446

						833

Sovereigns – 0.2%
Russian Federation
		5.000% through 03/31/2007 thereafter
		7.500% 03/31/2030 (e)		330		369
United Mexican States
		5.625%, 01/15/2017 (a)		305		305

						674

Technology – 0.4%
Avnet
		6.000%, 09/01/2015		350		342
Chartered Semiconductor
		6.375%, 08/03/2015		250		249
Ciena
		3.750%, 02/01/2008		120		116
LG Electronics
		5.000%, 06/17/2010 (e)		340		332
NXP BV/ NXP Funding
		7.875%, 10/15/2014 (e)	$	160	$	162
Seagate Technology
		6.375%, 10/01/2011		335		331

						1,532

Transportation – 0.0%
Hertz
		8.875%, 01/01/2014 (e)		175		183

Total Corporate Bonds
		(Cost $20,815)				20,547

Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 5.3%
Adjustable Rate (c) – 2.8%
Bank of America Mortgage Securities
	Series 2004-G, Class 2A3
		4.232%, 08/25/2034		165		165
Citigroup Mortgage Loan Trust
	Series 2005-7, Class 2A1A
		4.861%, 09/25/2035		770		760
GMAC Mortgage Corporation Loan Trust
	Series 2003-AR2, Class 4A1
		4.732%, 12/19/2033		806		779
IMPAC CMB Trust
	Series 2003-12, Class A1
		6.090%, 12/25/2033		193		193
J.P. Morgan Trust
	Series 2004-A1, Class 3A1
		4.974%, 02/25/2034		1,331		1,303
Residential Funding Mortgage Securities I
	Series 2006-SA2, Class 4A1
		5.881%, 08/25/2036		1,045		1,040
Structured Mortgage Loan Trust
	Series 2004-11, Class A
		7.195%, 08/25/2034		91		92
Wachovia Mortgage Loan Trust
	Series 2005-B, Class 1A1
		4.957%, 10/20/2035		612		612
Washington Mutual
	Series 2004-AR7, Class A6
		3.941%, 07/25/2034		775		753
Wells Fargo Mortgage Backed Securities Trust
	Series 2003-D, Class A1
		4.798%, 02/25/2033		388		386
	Series 2003-O, Class 5A1
		4.803%, 01/25/2034		887		867
	Series 2004-C, Class A1
		4.938%, 04/25/2034		1,420		1,379
	Series 2004-N, Class A3
		4.101%, 08/25/2034		995		985
	Series 2006-AR1, Class 2A2
		5.563%, 03/25/2036		1,095		1,085

						10,399

Fixed Rate – 2.5%
ABN AMRO Mortgage
	Series 2003-7, Class A1
		4.750%, 07/25/2018		841		810
Bank of America Mortgage Securities
	Series 2003-6, Class 1A30
		4.750%, 08/25/2033		585		576

The accompanying notes are an integral part of the financial statements.

108 First American Funds Annual Report 2006


Balanced Fund (continued)
DESCRIPTION			PAR		VALUE

Countrywide Alternative Loan Trust
	Series 2004-12CB, Class 1A1
		5.000%, 07/25/2019	$	491	$	482
	Series 2004-2CB, Class 1A1
		4.250%, 03/25/2034		406		398
	Series 2004-24CB, Class 1A1
		6.000%, 11/25/2034		387		387
GMAC Mortgage Corporation Loan Trust
	Series 2004-J5, Class A7
		6.500%, 01/25/2035		564		571
GSR Mortgage Loan Trust
	Series 2004-10F, Class 3A1
		5.500%, 08/25/2019		453		453
Master Alternative Loans Trust
	Series 2005-2, Class 1A3
		6.500%, 03/25/2035		346		349
Master Asset Securitization Trust
	Series 2003-6, Class 3A1
		5.000%, 07/25/2018		736		728
Morgan Stanley Mortgage Loan Trust
	Series 2004-9, Class 1A
		6.206%, 11/25/2034		425		428
Residential Asset Mortgage Products
	Series 2004-SL4, Class A3
		6.500%, 07/25/2032		325		331
Residential Funding Mortgage Securities I
	Series 2004-S9, Class 2A1
		4.750%, 12/25/2019		908		886
Washington Mutual
	Series 2004-CB1, Class 1A
		5.250%, 06/25/2019		723		718
Wells Fargo Mortgage Backed Securities Trust
	Series 2003-14, Class A1
		4.750%, 12/25/2018		592		575
	Series 2004-7, Class 2A2
		5.000%, 07/25/2019		1,559		1,528
Westam Mortgage Financial
	Series 11, Class A
		6.360%, 08/26/2020		1		1

						9,221

Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities
		(Cost $19,739)				19,620

U.S. Government & Agency Securities – 4.9%
U.S. Agency Debentures – 0.6%
Federal National Mortgage Association
		6.125%, 03/15/2012 (a)		280		296
		5.250%, 08/01/2012 (a)		1,745		1,758

						2,054

U.S. Treasuries – 4.3%
U.S. Treasury Bonds
		9.000%, 11/15/2018 (a)		500		695
		8.125%, 08/15/2021 (a)		200		270
		7.625%, 02/15/2025 (a)		400		535
		6.875%, 08/15/2025 (a)		1,600		2,004
		4.500%, 02/15/2036 (a)		1,130		1,091
U.S. Treasury Notes
		2.250%, 02/15/2007 (a)		2,420		2,400
		4.875%, 08/31/2008 (a)		2,055		2,060


Balanced Fund (continued)
DESCRIPTION			SHARES/PAR		VALUE

		4.625%, 08/31/2011 (a)		4,105	$	4,113
		2.500%, 07/15/2016 (a)		2,877		2,919

						16,087

Total U.S. Government & Agency Securities
		(Cost $18,082)				18,141

Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 1.1%
Fixed Rate – 1.1%
Federal Home Loan Mortgage Corporation
	Series 2763, Class TA
		4.000%, 03/15/2011		616		603
	Series 85, Class C
		8.600%, 01/15/2021		88		92
	Series 1136, Class H
		6.000%, 09/15/2021		66		66
Federal National Mortgage Association
	Series 1996-21, Class PK
		6.000%, 02/25/2011		98		98
	Series 1989-2, Class D
		8.800%, 01/25/2019		6		6
	Series 1989-37, Class G
		8.000%, 07/25/2019		85		91
	Series 1990-30, Class E
		6.500%, 03/25/2020		38		39
	Series 1990-63, Class H
		9.500%, 06/25/2020		20		22
	Series 1990-89, Class K
		6.500%, 07/25/2020		4		4
	Series 1990-105, Class J
		6.500%, 09/25/2020		59		61
	Series 2005-44, Class PC
		5.000%, 11/25/2027 (a)		1,139		1,126
	Series 2003-81, Class MB
		5.000%, 05/25/2029 (a)		960		950
	Series 2005-62, Class JE
		5.000%, 06/25/2035 (a)		882		871
Government National Mortgage Association
	Series 3, Class F
		6.500%, 06/17/2020		8		8

Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities
		(Cost $4,046)				4,037

Short-Term Investments – 2.5%
Money Market Fund – 2.5%
First American Prime Obligations Fund, Class Z (h)				9,329,815		9,330

U.S. Treasury Obligations – 0.0%
U.S. Treasury Bills
		4.810%, 12/07/2006 (i)		30		30
		4.940%, 03/01/2007 (i)		100		98

						128

Total Short-Term Investments
		(Cost $9,458)				9,458

First American Funds Annual Report 2006 109

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Balanced Fund (continued)
DESCRIPTION		VALUE

Investments Purchased with Proceeds from Securities Lending (j) – 24.3%
	(Cost $90,141)	$	90,141

Total Investments – 127.0%
	(Cost $436,706)		471,106

Other Assets and Liabilities, Net – (27.0)%			(100,314	)

Total Net Assets – 100.0%		$	370,792


(a)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a market value of $87,912 at October 31, 2006. See note 2 in Notes to Financial Statements.

(b)	Non-income producing security.

(c)	Variable rate security – The rate shown is the rate in effect as of October 31, 2006.

(d)	Security purchased on a when-issued basis. On October 31, 2006, the total cost of investments purchased on a when-issued basis was $5,067. See note 2 in Notes to Financial Statements.

(e)	Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under the guidelines established by the fund’s board of directors. As of October 31, 2006, the value of these investments was $9,322 or 2.5% of total net assets. See note 2 in Notes to Financial Statements.

(f)	Security is fair valued and illiquid. As of October 31, 2006, the value of this investment was $118 or 0.0% of total net assets. See note 2 in Notes to Financial Statements.

(g)	Security is in default at October 31, 2006.

(h)	Investment in affiliated security. This money market fund is advised by FAF Advisors Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(i)	Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of October 31, 2006. See note 2 in Notes to Financial Statements.

(j)	The fund may loan securities in return for collateral in the form of cash, U.S. government securities, or other high grade debt obligations. The cash collateral is invested in money market funds and various short term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

ADR – American Depository Receipt

REIT – Real Estate Investment Trust

Schedule of Open Futures Contracts


	Number of
	Contracts			Notional					Unrealized
	Purchased			Contract			Settlement		Appreciation/
Description	(Sold)			Value			Month		(Depreciation)

U.S. Treasury 2 Year Note Futures		108		$	22,076			December 2006	$	75
U.S. Treasury 5 Year Note Futures		15			1,583			December 2006		9
U.S. Treasury 10 Year Note Futures		(77	)		(8,333	)		December 2006		(98	)
U.S. Treasury Long Bond Futures		23			2,591			December 2006		6
S&P 500 Index Futures		5			1,729			December 2006		73

									$	65

Interest Rate Swap Agreements

Pay/

Floating

Receive

Unrealized

Rate

Floating

Expiration

Notional

Appreciation/

Counterparty

Index

Rate

Fixed Rate

Date

Amount

(Depreciation)

Citigroup

3-Month LIBOR

Receive

5.303%

10/26/2008

17,000

(69

)

Citigroup

3-Month LIBOR

Pay

5.360%

10/26/2016

4,000

UBS

3-Month LIBOR

Receive

5.050%

09/27/2008

3,000

The accompanying notes are an integral part of the financial statements.

110 First American Funds Annual Report 2006

Schedule of Investments October 31, 2006, all dollars are rounded to thousands (000)


Equity Income Fund
DESCRIPTION	SHARES		VALUE

Common Stocks – 98.7%
Consumer Discretionary – 7.3%
Domino’s Pizza (a)		252,169	$	6,854
Gap		743,214		15,622
Harrah’s Entertainment		311,080		23,122
Mattel		615,110		13,920
McDonald’s		525,325		22,022
Time Warner (a)		786,059		15,729

				97,269

Consumer Staples – 7.9%
Altria Group		336,922		27,402
Avon Products (a)		222,726		6,773
Coca-Cola		287,969		13,454
General Mills (a)		300,087		17,051
PepsiCo		208,125		13,203
Wal-Mart Stores		567,136		27,949

				105,832

Energy – 12.0%
BP, ADR		388,218		26,049
ChevronTexaco		357,297		24,010
ConocoPhillips		455,915		27,464
Exxon Mobil		775,808		55,408
Halliburton		407,193		13,173
Williams		564,572		13,793

				159,897

Financials – 23.5%
AllianceBernstein Holding		379,959		29,523
American International Group		580,286		38,978
AON		472,463		16,437
Apartment Investment & Management – REIT (a)		313,525		17,971
Bank of America (a)		867,969		46,757
Citigroup		732,432		36,739
Duke Realty – REIT		176,842		7,084
Goldman Sachs Group (a)		82,795		15,714
ICICI Bank, ADR		520,270		18,288
Merrill Lynch		201,121		17,582
Northern Trust		156,946		9,216
SLM		282,871		13,770
Wachovia		525,106		29,143
Wells Fargo		436,149		15,828

				313,030

Healthcare – 11.8%
Abbott Laboratories (a)		806,682		38,325
Baxter International		473,746		21,778
Johnson & Johnson		443,382		29,884
Pfizer		1,063,735		28,349
Wyeth Pharmaceuticals		759,702		38,768

				157,104

Industrials – 11.2%
3M		253,362		19,975
Avery Dennison		150,912		9,528
Emerson Electric		233,156		19,678
General Dynamics		192,346		13,676
General Electric		1,286,917		45,184
Honeywell International (a)		514,110		21,654
United Parcel Service, Class B		265,637		20,016

				149,711

Information Technology – 9.3%
Hewlett-Packard		878,057		34,016
Intel		1,294,924		27,634
Microsoft		783,334		22,489
Motorola (a)		768,401		17,719


Equity Income Fund (concluded)
DESCRIPTION		SHARES/PAR		VALUE

QUALCOMM (a)			331,326	$	12,057
Texas Instruments			329,845		9,955

					123,870

Materials – 3.4%
Dow Chemical			208,450		8,503
E.I. Du Pont de Nemours (a)			466,652		21,372
Praxair			260,064		15,669

					45,544

Telecommunication Services – 8.8%
ALLTEL (a)			192,991		10,288
AT&T (a)			850,232		29,121
BellSouth			503,634		22,714
Verizon Communications (a)			1,020,299		37,751
Vodafone Group, ADR (a)			499,120		12,902
Windstream (a)			361,216		4,956

					117,732

Utilities – 3.5%
Atmos Energy			183,924		5,652
Duke Energy			531,490		16,816
ITC Holdings			23,490		835
Xcel Energy (a)			1,043,586		23,032

					46,335

Total Common Stocks
	(Cost $959,482)				1,316,324

Convertible Corporate Bond – 0.4%
Medarex 2.250%, 05/15/2011
	(Cost $3,467)	$	3,934		4,623

Short-Term Investment – 1.2%
First American Prime Obligations Fund, Class Z (b)
	(Cost $16,548)		16,547,741		16,548

Investments Purchased with Proceeds from Securities Lending (c) – 5.9%
	(Cost $78,913)				78,913

Total Investments – 106.2%
	(Cost $1,058,410)				1,416,408

Other Assets and Liabilities, Net – (6.2)%					(83,042	)

Total Net Assets – 100.0%				$	1,333,366


(a)	This security or a portion of this security is out on loan at October 31, 2006. Total loaned securities had a value of $76,371 at October 31, 2006. See note 2 in Notes to Financial Statements.

(b)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.

(c)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various money market funds and short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

ADR – American Depository Receipt

REIT – Real Estate Investment Trust

First American Funds Annual Report 2006 111

Statements of Assets and Liabilities October 31, 2006, all dollars and shares are rounded to thousands (000), except per share data


	Balanced		Equity
	Fund		Income Fund

Investments in unaffiliated securities, at cost	$	337,235	$	962,949
Investments in affiliated money market fund, at cost		9,330		16,548
Investments purchased with proceeds from securities lending, at cost (note 2)		90,141		78,913

ASSETS:
Investments in unaffiliated securities, at value* (note 2)	$	371,635	$	1,320,947
Investments in affiliated money market fund, at value (note 2)		9,330		16,548
Investments purchased with proceeds from securities lending, at value (note 2)		90,141		78,913
Receivable for dividends and interest		1,114		1,691
Receivable for investment securities sold		4,810		—
Receivable for capital shares sold		198		325
Receivable for variation margin		9		—
Receivable for swap agreements		5		—
Prepaid expenses and other assets		41		40

Total assets		477,283		1,418,464

LIABILITIES:
Bank overdraft		313		—
Payable for investment securities purchased		5,845		2,695
Payable for investment securities purchased on a when-issued basis		5,067		—
Payable upon return of securities loaned (note 2)		90,141		78,913
Payable for capital shares redeemed		4,808		2,357
Payable to affiliates (note 3)		256		1,026
Payable for distribution and shareholder servicing fees		37		63
Accrued expenses and other liabilities		24		44

Total liabilities		106,491		85,098

Net assets	$	370,792	$	1,333,366

COMPOSITION OF NET ASSETS:
Portfolio capital	$	310,200	$	859,120
Undistributed net investment income		680		—
Accumulated net realized gain on investments, futures contracts, and swap agreements		25,443		116,248
Net unrealized appreciation of investments		34,400		357,998
Net unrealized appreciation of futures contracts		65		—
Net unrealized appreciation of swap agreements		4		—

Net assets	$	370,792	$	1,333,366

*Including securities loaned, at value	$	87,912	$	76,371

Class A:
Net assets	$	106,565	$	171,814
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		8,684		10,808
Net asset value and redemption price per share	$	12.27	$	15.90
Maximum offering price per share ⁽¹⁾	$	12.98	$	16.83
Class B:
Net assets	$	13,809	$	19,845
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		1,134		1,260
Net asset value, offering price, and redemption price per share ⁽²⁾	$	12.18	$	15.75
Class C:
Net assets	$	3,030	$	11,225
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		247		711
Net asset value, offering price and redemption price per share ⁽²⁾	$	12.25	$	15.78
Class R:
Net assets	$	23	$	511
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		2		32
Net asset value, offering price, and redemption price per share	$	12.35	$	15.88
Class Y:
Net assets	$	247,365	$	1,129,971
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		20,104		70,603
Net asset value, offering price, and redemption price per share	$	12.30	$	16.00


	(1)	The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%

	(2)	Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

112 First American Funds Annual Report 2006

Statements of Operations For the year ended October 31, 2006, all dollars are rounded to thousands (000)


	Balanced			Equity
	Fund			Income Fund

INVESTMENT INCOME:
Interest from unaffiliated securities	$	6,057		$	177
Dividends from affiliated money market fund		410			529
Dividends from unaffiliated securities		3,890			33,715
Less: Foreign taxes withheld		(8	)		(15	)
Securities lending income		199			208

Total investment income		10,548			34,614

EXPENSES (note 3):
Investment advisory fees		2,475			8,714
Administration fees		645			2,131
Transfer agent fees		425			1,311
Custodian fees		20			69
Professional fees		38			29
Registration fees		51			50
Postage and printing fees		33			89
Directors’ fees		17			27
Other expenses		22			26
Distribution and shareholder servicing fees – Class A		276			426
Distribution and shareholder servicing fees – Class B		163			203
Distribution and shareholder servicing fees – Class C		41			132
Distribution and shareholder servicing fees – Class R		—	⁽¹⁾		3

Total expenses		4,206			13,210

Less: Fee waivers (note 3)		(478	)		(1	)
Less: Indirect payments from custodian (note 3)		(6	)		(2	)

Total net expenses		3,722			13,207

Investment income – net		6,826			21,407

REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS,FUTURES CONTRACTS, AND SWAP AGREEMENTS – NET (note 5):
Net realized gain on investments		26,905			141,083
Net realized gain on futures contracts		115			—
Net realized gain on swap agreements		128			—
Net change in unrealized appreciation or depreciation of investments		5,427			68,753
Net change in unrealized appreciation or depreciation of futures contracts		(32	)		—
Net change in unrealized appreciation or depreciation of swap agreements		43			—

Net gain on investments, futures contracts, and swap agreements		32,586			209,836

Net increase in net assets resulting from operations	$	39,412		$	231,243


	(1)	Due to the presentation of the financial statements in thousands, the numbers round to zero.

First American Funds Annual Report 2006 113

Statements of Changes in Net Assets all dollars are rounded to thousands (000)


		Balanced									Equity
		Fund									Income Fund

					One-Month									One-Month
					Fiscal Period									Fiscal Period
		Year Ended			Ended			Year Ended			Year Ended			Ended			Year Ended
		10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05


OPERATIONS:
Investment income – net		$	6,826		$	340		$	6,143		$	21,407		$	1,043		$	27,470
Net realized gain (loss) on investments			26,905			(634	)		44,140			141,083			(1,938	)		43,644
Net realized gain on in-kind distribution			—			—			—			—			—			45,141
Net realized gain (loss) on futures contracts			115			2			(21	)		—			—			—
Net realized gain on swap agreements			128			—			47			—			—			—
Net realized gain on written options			—			—			132			—			—			—
Net change in unrealized appreciation or depreciation of investments			5,427			(5,144	)		7,744			68,753			(20,424	)		50,906
Net change in unrealized appreciation or depreciation of futures contracts			(32	)		51			158			—			—			—
Net change in unrealized appreciation or depreciation of swap agreements			43			(37	)		(2	)		—			—			—

Net increase (decrease) in net assets resulting from operations			39,412			(5,422	)		58,341			231,243			(21,319	)		167,161

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income – net:
	Class A		(1,852	)		—			(1,628	)		(2,470	)		(89	)		(3,048	)
	Class B		(146	)		—			(148	)		(183	)		—			(222	)
	Class C		(23	)		—			(37	)		(119	)		—			(176	)
	Class R		—	⁽¹⁾		—			—			(6	)		—			(2	)
	Class Y		(4,891	)		—			(4,412	)		(19,051	)		(829	)		(25,969	)
Net realized gain on investments:
	Class A		—			—			—			(975	)		—			(160	)
	Class B		—			—			—			(119	)		—			(21	)
	Class C		—			—			—			(83	)		—			(17	)
	Class R		—			—			—			(2	)		—			—
	Class Y		—			—			—			(6,504	)		—			(1,245	)

Total distributions			(6,912	)		—			(6,225	)		(29,512	)		(918	)		(30,860	)

CAPITAL SHARE TRANSACTIONS (note 4):
Class A:
	Proceeds from sales		10,315			1,355			13,247			12,754			862			21,141
	Reinvestment of distributions		1,798			—			1,585			3,190			82			2,988
	Payments for redemptions		(27,468	)		(1,628	)		(34,236	)		(41,866	)		(3,060	)		(47,176	)

Decrease in net assets from Class A transactions			(15,355	)		(273	)		(19,404	)		(25,922	)		(2,116	)		(23,047	)

Class B:
	Proceeds from sales		406			40			1,081			971			70			1,913
	Reinvestment of distributions		138			—			142			285			—			229
	Payments for redemptions (note 3)		(7,579	)		(1,003	)		(11,765	)		(5,425	)		(367	)		(6,332	)

Decrease in net assets from Class B transactions			(7,035	)		(963	)		(10,542	)		(4,169	)		(297	)		(4,190	)

Class C:
	Proceeds from sales		518			29			860			918			107			1,226
	Reinvestment of distributions		23			—			36			199			—			192
	Payments for redemptions (note 3)		(2,678	)		(685	)		(1,977	)		(7,112	)		(663	)		(6,129	)

Decrease in net assets from Class C transactions			(2,137	)		(656	)		(1,081	)		(5,995	)		(556	)		(4,711	)

Class R:
	Proceeds from sales		31			—			—			113			9			422
	Reinvestment of distributions		—	⁽¹⁾		—			—			8			—			2
	Payments for redemptions		(11	)		—			—			(100	)		(1	)		(25	)

Increase in net assets from Class R transactions			20			—			—			21			8			399

Class Y:
	Proceeds from sales		39,369			2,780			38,526			79,417			4,504			172,670
	Reinvestment of distributions		4,616			—			4,180			9,238			233			9,228
	Payments for redemptions		(72,474	)		(7,309	)		(96,953	)		(298,954	)		(23,083	)		(497,089	)

Decrease in net assets from Class Y transactions			(28,489	)		(4,529	)		(54,247	)		(210,299	)		(18,346	)		(315,191	)

Decrease in net assets from capital share transactions			(52,996	)		(6,421	)		(85,274	)		(246,364	)		(21,307	)		(346,740	)

Total decrease in net assets			(20,496	)		(11,843	)		(33,158	)		(44,633	)		(43,544	)		(210,439	)
Net assets at beginning of period			391,288			403,131			436,289			1,377,999			1,421,543			1,631,982

Net assets at end of period		$	370,792		$	391,288		$	403,131		$	1,333,366		$	1,377,999		$	1,421,543

Undistributed (distributions in excess of) net investment income at end of period		$	680		$	634		$	270		$	—		$	124		$	(1	)


	(1)	Due to the presentation of the financial statements in thousands, the number rounds to zero.

The accompanying notes are an integral part of the financial statements.

114 First American Funds Annual Report 2006

(This page intentionally left blank.)

Financial Highlights For a share outstanding throughout the indicated periods.


						Realized and
		Net Asset				Unrealized			Distributions			Net Asset
		Value		Net		Gains			from Net			Value
		Beginning		Investment		(Losses) on			Investment			End of
		of Period		Income		Investments			Income			Period

Balanced Fund
Class A
	2006 (1)(2)	$	11.27	$	0.20	$	1.00		$	(0.20	)	$	12.27
	2005 (2)(3)		11.43		0.01		(0.17	)		—			11.27
	2005 (2)(4)		10.12		0.15		1.31			(0.15	)		11.43
	2004 (2)(4)		9.47		0.13		0.66			(0.14	)		10.12
	2003 (4)		8.38		0.17		1.08			(0.16	)		9.47
	2002 (2)(4)		9.50		0.20		(1.12	)		(0.20	)		8.38
Class B
	2006 (1)(2)	$	11.18	$	0.11	$	1.00		$	(0.11	)	$	12.18
	2005 (2)(3)		11.34		—		(0.16	)		—			11.18
	2005 (2)(4)		10.04		0.07		1.30			(0.07	)		11.34
	2004 (2)(4)		9.41		0.05		0.65			(0.07	)		10.04
	2003 (4)		8.32		0.10		1.08			(0.09	)		9.41
	2002 (2)(4)		9.44		0.13		(1.12	)		(0.13	)		8.32
Class C
	2006 (1)(2)	$	11.22	$	0.11	$	0.99		$	(0.07	)	$	12.25
	2005 (2)(3)		11.38		—		(0.16	)		—			11.22
	2005 (2)(4)		10.08		0.07		1.30			(0.07	)		11.38
	2004 (2)(4)		9.44		0.05		0.66			(0.07	)		10.08
	2003 (4)		8.35		0.09		1.10			(0.10	)		9.44
	2002 (2)(4)		9.49		0.13		(1.14	)		(0.13	)		8.35
Class R (5)
	2006 (1)(2)	$	11.29	$	0.17	$	1.01		$	(0.12	)	$	12.35
	2005 (2)(3)		11.45		0.01		(0.17	)		—			11.29
	2005 (2)(4)		10.14		0.11		1.32			(0.12	)		11.45
	2004 (2)(4)		9.49		0.14		0.64			(0.13	)		10.14
	2003 (4)		8.39		0.15		1.10			(0.15	)		9.49
	2002 (2)(4)		9.50		0.20		(1.12	)		(0.19	)		8.39
Class Y
	2006 (1)(2)	$	11.31	$	0.23	$	0.99		$	(0.23	)	$	12.30
	2005 (2)(3)		11.46		0.01		(0.16	)		—			11.31
	2005 (2)(4)		10.15		0.17		1.32			(0.18	)		11.46
	2004 (2)(4)		9.50		0.16		0.66			(0.17	)		10.15
	2003 (4)		8.40		0.19		1.09			(0.18	)		9.50
	2002 (2)(4)		9.53		0.23		(1.13	)		(0.23	)		8.40


	(1)	For the period November 1 to October 31 in the year indicated.

	(2)	Per share data calculated using average shares outstanding method.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Total return does not include sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

116 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income to
					Ratio of			Investment			Average			Average
			Net Assets		Expenses to			Income			Net Assets			Net Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate

	10.73	%	$	106,565		1.10	%		1.67	%		1.23	%		1.54	%		143	%
	(1.40	)		112,557		1.10			0.90			1.21			0.79			12
	14.51			114,388		1.06			1.35			1.21			1.20			147
	8.39			119,292		1.05			1.27			1.19			1.13			110
	14.98			98,016		1.05			1.75			1.23			1.57			156
	(9.90	)		98,557		1.05			2.07			1.23			1.89			79
	9.93	%	$	13,809		1.85	%		0.92	%		1.98	%		0.79	%		143	%
	(1.41	)		19,409		1.85			0.15			1.96			0.04			12
	13.64			20,657		1.81			0.60			1.96			0.45			147
	7.46			28,101		1.80			0.54			1.94			0.40			110
	14.25			33,015		1.80			1.00			1.98			0.82			156
	(10.64	)		35,641		1.80			1.32			1.98			1.14			79
	9.86	%	$	3,030		1.85	%		0.92	%		1.98	%		0.79	%		143	%
	(1.41	)		4,787		1.85			0.15			1.96			0.04			12
	13.61			5,528		1.81			0.60			1.96			0.45			147
	7.53			5,890		1.80			0.55			1.94			0.41			110
	14.24			7,089		1.80			0.99			1.98			0.81			156
	(10.77	)		2,233		1.80			1.32			1.98			1.14			79
	10.49	%	$	23		1.35	%		1.38	%		1.61	%		1.12	%		143	%
	(1.40	)		1		1.35			0.65			1.61			0.39			12
	14.16			1		1.31			1.06			1.61			0.76			147
	8.22			1		1.05			1.39			1.19			1.25			110
	15.08			23,844		1.05			1.76			1.23			1.58			156
	(9.90	)		36,194		1.05			2.07			1.23			1.89			79
	10.92	%	$	247,365		0.85	%	��	1.92	%		0.98	%		1.79	%		143	%
	(1.31	)		254,534		0.85			1.15			0.96			1.04			12
	14.76			262,557		0.81			1.60			0.96			1.45			147
	8.62			283,005		0.80			1.55			0.94			1.41			110
	15.35			363,157		0.80			2.00			0.98			1.82			156
	(9.74	)		290,288		0.80			2.32			0.98			2.14			79

First American Funds Annual Report 2006 117

Financial Highlights For a share outstanding throughout the indicated periods


						Realized and
		Net Asset				Unrealized			Distributions			Distributions			Net Asset
		Value		Net		Gains			from Net			from Net			Value
		Beginning		Investment		(Losses) on			Investment			Realized			End of
		of Period		Income		Investments			Income			Gains			Period

Equity Income Fund (1)
Class A
	2006 (2)	$	13.67	$	0.20	$	2.32		$	(0.21	)	$	(0.08	)	$	15.90
	2005 (3)		13.89		0.01		(0.22	)		(0.01	)		—			13.67
	2005 (4)		12.77		0.20		1.15			(0.22	)		(0.01	)		13.89
	2004 (4)		11.56		0.18		1.23			(0.20	)		—			12.77
	2003 (4)		9.58		0.18		1.99			(0.19	)		—			11.56
	2002 (4)		12.13		0.16		(2.48	)		(0.19	)		(0.04	)		9.58
Class B
	2006 (2)	$	13.57	$	0.09	$	2.30		$	(0.13	)	$	(0.08	)	$	15.75
	2005 (3)		13.79		—		(0.22	)		—			—			13.57
	2005 (4)		12.68		0.10		1.14			(0.12	)		(0.01	)		13.79
	2004 (4)		11.49		0.08		1.22			(0.11	)		—			12.68
	2003 (4)		9.52		0.10		1.98			(0.11	)		—			11.49
	2002 (4)		12.07		0.09		(2.49	)		(0.11	)		(0.04	)		9.52
Class C
	2006 (2)	$	13.59	$	0.10	$	2.30		$	(0.13	)	$	(0.08	)	$	15.78
	2005 (3)		13.81		—		(0.22	)		—			—			13.59
	2005 (4)		12.70		0.11		1.13			(0.12	)		(0.01	)		13.81
	2004 (4)		11.51		0.08		1.22			(0.11	)		—			12.70
	2003 (4)		9.54		0.10		1.98			(0.11	)		—			11.51
	2002 (4)		12.09		0.10		(2.50	)		(0.11	)		(0.04	)		9.54
Class R (5)
	2006 (2)	$	13.66	$	0.17	$	2.31		$	(0.18	)	$	(0.08	)	$	15.88
	2005 (3)		13.88		0.01		(0.23	)		—			—			13.66
	2005 (4)		12.78		0.11		1.20			(0.20	)		(0.01	)		13.88
	2004 (4)		11.56		0.19		1.22			(0.19	)		—			12.78
	2003 (4)		9.57		0.19		1.99			(0.19	)		—			11.56
	2002 (4)		12.12		0.15		(2.47	)		(0.19	)		(0.04	)		9.57
Class Y
	2006 (2)	$	13.76	$	0.24	$	2.33		$	(0.25	)	$	(0.08	)	$	16.00
	2005 (3)		13.98		0.01		(0.21	)		(0.01	)		(0.01	)		13.76
	2005 (4)		12.85		0.24		1.15			(0.25	)		(0.01	)		13.98
	2004 (4)		11.63		0.21		1.24			(0.23	)		—			12.85
	2003 (4)		9.63		0.21		2.00			(0.21	)		—			11.63
	2002 (4)		12.20		0.21		(2.52	)		(0.22	)		(0.04	)		9.63


	(1)	Per share data calculated using average shares outstanding method.

	(2)	For the period November 1 to October 31 in the year indicated.

	(3)	For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover.

	(4)	For the period October 1 to September 30 in the year indicated.

	(5)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

	(6)	Total return does not include sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

118 First American Funds Annual Report 2006


														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income (Loss)
					Ratio of			Investment			Average			to Average
			Net Assets		Expenses to			Income (Loss)			Net Assets			Net Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate

	18.66	%	$	171,814		1.18	%		1.40	%		1.18	%		1.40	%		23	%
	(1.53	)		171,998		1.20			0.70			1.20			0.70			—
	10.65			176,878		1.16			1.51			1.19			1.48			27
	12.26			184,381		1.15			1.39			1.19			1.35			12
	22.81			144,282		1.15			1.70			1.20			1.65			43
	(19.51	)		128,142		1.15			1.43			1.20			1.38			38
	17.76	%	$	19,845		1.93	%		0.65	%		1.93	%		0.65	%		23	%
	(1.60	)		21,003		1.95			(0.05	)		1.95			(0.05	)		—
	9.86			21,639		1.91			0.78			1.94			0.75			27
	11.37			23,869		1.90			0.65			1.94			0.61			12
	21.97			22,156		1.90			0.95			1.95			0.90			43
	(20.10	)		18,699		1.90			0.80			1.95			0.75			38
	17.80	%	$	11,225		1.93	%		0.68	%		1.93	%		0.68	%		23	%
	(1.59	)		15,313		1.95			(0.05	)		1.95			(0.05	)		—
	9.84			16,128		1.91			0.79			1.94			0.76			27
	11.34			19,300		1.90			0.66			1.94			0.62			12
	21.95			19,386		1.90			0.95			1.95			0.90			43
	(20.08	)		11,171		1.90			0.86			1.95			0.81			38
	18.33	%	$	511		1.43	%		1.14	%		1.57	%		1.00	%		23	%
	(1.55	)		418		1.45			0.45			1.60			0.30			—
	10.33			415		1.41			0.83			1.59			0.65			27
	12.18			1		1.15			1.52			1.19			1.48			12
	22.91			17,170		1.15			1.80			1.20			1.75			43
	(19.47	)		36,522		1.15			1.34			1.20			1.29			38
	18.89	%	$	1,129,971		0.93	%		1.65	%		0.93	%		1.65	%		23	%
	(1.50	)		1,169,267		0.95			0.95			0.95			0.95			—
	10.94			1,206,483		0.91			1.80			0.94			1.77			27
	12.54			1,404,431		0.90			1.65			0.94			1.61			12
	23.20			1,278,470		0.90			1.95			0.95			1.90			43
	(19.30	)		678,352		0.90			1.80			0.95			1.75			38

First American Funds Annual Report 2006 119

Notes to Financial Statements October 31, 2006, all dollars and shares are rounded to thousands (000)


1 >	Organization


	The Real Estate Securities Fund, International Fund, Small Cap Growth Opportunities Fund, Small Cap Select Fund, Small Cap Value Fund, Small-Mid Cap Core Fund, Mid Cap Growth Opportunities Fund, Mid Cap Value Fund, Large Cap Growth Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund, Balanced Fund, and Equity Income Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. As of October 31, 2006, FAIF offered 38 funds, including the funds listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. FAIF’s articles of incorporation permit the funds’ board of directors to create additional funds in the future. Each fund other than Real Estate Securities Fund is a diversified open-end management investment company. The Real Estate Securities Fund is a non-diversified, open-end management investment company. Prior to October 3, 2005, Small-Mid Cap Core Fund had different investment strategies, was named Technology Fund, and also was non-diversified. Non-diversified funds may invest a large component of their net assets in securities of relatively few issuers.

	FAIF offers Class A, Class B, Class C, Class R, and Class Y shares. Class A shares are sold with a front-end sales charge. Class B shares are subject to a contingent deferred sales charge for six years and automatically convert to Class A shares after eight years. Class C shares may be subject to a contingent deferred sales charge for 12 months, and will not convert to Class A shares. Class R shares have no sales charge and are offered only through certain tax-deferred retirement plans. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts. Class R shares are not offered by the Small-Mid Cap Core Fund.

	The funds’ prospectuses provide descriptions of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares of a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees and expenses, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’ servicing or distribution arrangements.


2 >	Summary of Significant Accounting Policies


	The significant accounting policies followed by the funds are as follows:

	SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, the ask will be the closing price. If the last trade is below the bid, the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. 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. When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the funds’ board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition (trading in similar securities of the same issuer or comparable companies); information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. If events occur that materially affect the value of securities (including non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. As of October 31, 2006, Real Estate Securities Fund, Small Cap Growth Opportunities Fund, and Balanced Fund held fair valued securities with a total value of $245, $201, and $118, respectively, or 0.0%, 0.1%, and 0.0% of total net assets, respectively. The fair values of securities held by International Fund are determined on each business day by an independent third party based on factors such as price changes for futures contracts, sector indices, American Depository Receipts, and currency exchange rates that occur between the close of the local market and the close of the New York Stock Exchange. The use of daily fair value pricing by the International Fund may cause the net asset value of its shares to differ significantly from the net asset value that would be determined without fair value pricing. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value. Foreign securities

120 First American Funds Annual Report 2006


	are valued at the closing prices on the principal exchange on which they trade unless they are fair valued as described above. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Exchange rates are provided daily by recognized independent pricing agents. Investments in open-end mutual funds are valued at their respective net asset values on the valuation date.

	SECURITY TRANSACTIONS AND INVESTMENT INCOME – For financial statement purposes, the funds record security transactions on the trade date of the security purchase or sale. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income-tax purposes.

	DISTRIBUTIONS TO SHAREHOLDERS – The Equity Income Fund and Large Cap Value Fund declare and pay income dividends monthly. The Balanced Fund, Large Cap Select Fund, Mid Cap Value Fund and Real Estate Securities Fund declare and pay income dividends quarterly. The Large Cap Growth Opportunities Fund, Mid Cap Growth Opportunities Fund, Small Cap Growth Opportunities Fund, Small Cap Select Fund, Small Cap Value Fund, Small-Mid Cap Core Fund, and International Fund declare and pay income dividends annually. Distributions are payable in cash or reinvested in additional shares of the funds. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually.

	The Real Estate Securities Fund receives substantial distributions from holdings in real estate investment trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the REIT shareholder. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, Real Estate Securities Fund must use estimates in reporting the character of its income and distributions for financial statement purposes. The actual character of distributions to fund shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by a fund shareholder may represent a return of capital.

	FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required.

	Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to deferred wash sale and straddle losses, foreign currency gains and losses, investments in limited partnerships and REITs, and the “mark-to-market” of certain passive foreign investment companies (“PFICs”) for tax purposes. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the fiscal period that the differences arise.

	On the Statement of Assets and Liabilities, the following reclassifications were made:


	Accumulated			Undistributed
	Net Realized			Net Investment			Portfolio
Fund	Gain (Loss)			Income			Capital

Real Estate Securities Fund	$	(11,199	)	$	3,493		$	7,706
International Fund		656			(656	)		—
Small Cap Growth Opportunities Fund		(2,086	)		2,333			(247	)
Small Cap Select Fund		(13,959	)		1,913			12,046
Small Cap Value Fund		(12,403	)		(49	)		12,452
Small-Mid Cap Core Fund		56			(56	)		—
Mid Cap Growth Opportunities Fund		(11,108	)		1,536			9,572
Mid Cap Value Fund		(4,796	)		398			4,398
Large Cap Value Fund		(6,078	)		112			5,966
Balanced Fund		(132	)		132			—
Equity Income Fund		(22,513	)		298			22,215

First American Funds Annual Report 2006 121

Notes to Financial Statements continued

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 period in which the amounts are distributed may differ from the period or year that the income or realized gains (losses) were recorded by the fund. The tax character of distributions paid during the year ended October 31, 2006, the one-month fiscal period ended October 31, 2005, and the year ended September 30, 2005, were as follows:


	October 31, 2006

	Ordinary		Long Term		Return
Fund	Income		Gain		of Capital		Total

Real Estate Securities Fund	$	46,095	$	52,224	$	—	$	98,319
International Fund		19,958		—		—		19,958
Small Cap Growth Opportunities Fund		47,284		8,237		—		55,521
Small Cap Select Fund		50,757		107,691		—		158,448
Small Cap Value Fund		11,597		80,011		—		91,608
Mid Cap Growth Opportunities Fund		52,862		104,610		—		157,472
Mid Cap Value Fund		6,572		35,553		—		42,125
Large Cap Select Fund		10,875		7,247		—		18,122
Large Cap Value Fund		12,164		26,976		—		39,140
Balanced Fund		6,912		—		—		6,912
Equity Income Fund		21,829		7,683		—		29,512


			October 31, 2005

	Ordinary		Long Term		Return
Fund	Income		Gain		of Capital		Total

Large Cap Value Fund		$161		$—		$—		$161
Equity Income Fund		918		—		—		918


			September 30, 2005

	Ordinary		Long Term		Return
Fund	Income		Gain		of Capital		Total

Real Estate Securities Fund	$	17,941	$	40,662	$	—	$	58,603
International Fund		10,214		—		—		10,214
Small Cap Growth Opportunities Fund		12,908		26,459		—		39,367
Small Cap Select Fund		62,270		95,731		—		158,001
Small Cap Value Fund		9,040		57,102		—		66,142
Mid Cap Growth Opportunities Fund		79,521		115,577		—		195,098
Mid Cap Value Fund		3,756		—		—		3,756
Large Cap Growth Opportunities Fund		2,288		—		757		3,045
Large Cap Select Fund		4,919		1,525		—		6,444
Large Cap Value Fund		11,191		—		—		11,191
Balanced Fund		6,225		—		—		6,225
Equity Income Fund		22,731		8,129		—		30,860


	As of October 31, 2006, components of accumulated earnings (deficit) on a tax-basis were as follows:


					Accumulated								Total
	Undistributed		Undistributed		Capital and			Unrealized		Other			Accumulated
	Ordinary		Long Term		Post-October			Appreciation		Accumulated			Earnings
Fund	Income		Capital Gains		Losses			(Depreciation)		Losses			(Deficit)

Real Estate Securities Fund	$	58,865	$	31,220	$	—		$	264,536	$	—		$	354,621
International Fund		17,437		31,015		(6,331	)		452,898		—			495,019
Small Cap Growth Opportunities Fund		17,478		2,440		—			12,757		(83	)		32,592
Small Cap Select Fund		58,724		75,288		(29,163	)		95,718		(244	)		200,323
Small Cap Value Fund		20,581		43,594		—			58,495		—			122,670
Small-Mid Cap Core Fund		93		—		(451,025	)		7,752		—			(443,180	)
Mid Cap Growth Opportunities Fund		—		142,003		(30,252	)		286,422		—			398,173
Mid Cap Value Fund		20,199		38,335		—			139,018		(237	)		197,315
Large Cap Growth Opportunities Fund		1,285		9,668		(70,958	)		106,357		—			46,352
Large Cap Select Fund		78		7,702		—			52,253		—			60,033
Large Cap Value Fund		18,830		53,409		—			175,144		—			247,383
Balanced Fund		2,871		23,715		—			34,091		(85	)		60,592
Equity Income Fund		3,900		113,225		—			357,121		—			474,246

122 First American Funds Annual Report 2006


	The differences between book-basis and tax-basis unrealized appreciation (depreciation) are primarily due to the tax deferral of losses on wash sales and investments in limited partnerships, the amount of gain (loss) recognized for tax purposes due to mark-to-market adjustments on open futures contracts, and the mark-to-market for certain PFICs for tax purposes.

	As of October 31, 2006, the following funds had capital loss carryforwards which, if not offset by subsequent capital gains, will expire on the funds’ fiscal year-ends as follows:


	Expiration Year

Fund	2007		2008		2009		2010		2011		2012		2013		Total

International Fund	$	1,762	$	—	$	4,569	$	—	$	—	$	—	$	—	$	6,331
Small Cap Select Fund		—		—		29,163		—		—		—		—		29,163
Small-Mid Cap Core Fund		—		5,595		339,005		102,106		4,320		—		—		451,025
Mid Cap Growth Opportunities Fund		—		—		30,252		—		—		—		—		30,252
Large Cap Growth Opportunities Fund		—		—		70,958		—		—		—		—		70,958


	In accordance with Section 382 of the Internal Revenue Code, utilization of all or a portion of the above capital loss carryovers is limited on an annual basis for International Fund, Small Cap Select Fund, Small-Mid Cap Core Fund, Mid Cap Growth Opportunities Fund, and Large Cap Growth Opportunities Fund to $4,046, $9,721, $1,524, $10,084, and $23,652, respectively.

	FUTURES TRANSACTIONS – In order to gain exposure to or protect against changes in the market and to maintain sufficient liquidity to meet redemption requests, certain funds may enter into S&P stock index futures contracts and other stock index futures contracts. The Balanced Fund may also enter into interest rate index futures contracts.

	Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. Government securities in an amount equal to five percent of the purchase price indicated in the futures contract (initial margin). Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract.

	Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s Statement of Assets and Liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes.

	At October 31, 2006, Balanced Fund had outstanding futures contracts as disclosed in its Schedule of Investments.

	OPTIONS TRANSACTIONS – The funds may utilize options in an attempt to manage market or business risk or enhance returns. When a call or put option is written, an amount equal to the premium received is recorded as a liability. The liability is marked-to-market daily to reflect the current market value of the option written. When a written option expires, a gain is realized in the amount of the premium originally received. If a closing purchase contract is entered into, a gain or loss is realized in the amount of the original premium less the cost of the closing transaction. If a written call option is exercised, a gain or loss is realized from the sale of the underlying security, and the proceeds from such sale are increased by the premium originally received. If a written put option is exercised, the amount of the premium originally received reduces the cost of the security which is purchased upon exercise of the option. As of and for the year ended October 31, 2006, the funds held no written options.

	Purchased options are recorded as investments and marked-to-market daily to reflect the current market value of the option contract. If a purchased option expires, a loss is realized in the amount of the cost of the option. If a closing transaction is entered into, a gain or loss is realized to the extent that the proceeds from the sale are greater or less than the cost of the option. If a put option is exercised, a gain or loss is realized from the sale of the underlying security by adjusting the proceeds from such sale by the amount of the premium originally paid. If a call option is exercised, the cost of the security purchased upon exercise is increased by the premium originally paid. As of October 31, 2006, the funds held no purchased options.

First American Funds Annual Report 2006 123

Notes to Financial Statements continued


	FOREIGN CURRENCY TRANSLATION – The books and records of International Fund relating to the fund’s non-U.S. dollar denominated investments are maintained in U.S. dollars on the following basis:


	•	market value of investment securities, assets, and liabilities are translated at the current rate of exchange; and

	•	purchases and sales of investment securities, income, and expenses are translated at the relevant rates of exchange prevailing on the respective dates of such transactions.


	The International Fund does not isolate the portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.

	The International Fund reports certain foreign currency-related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes. At October 31, 2006, International Fund had no foreign currency holdings.

	FORWARD FOREIGN CURRENCY CONTRACTS – The International Fund may enter into forward foreign currency contracts as hedges against either specific transactions or fund positions. The aggregate principal amount of the contracts are not recorded because the International Fund intends to settle the contracts prior to delivery. All commitments are “marked-to-market” daily at the applicable foreign exchange rate, and any resulting unrealized gains or losses are recorded currently. The International Fund realizes gains or losses at the time the forward contracts are extinguished. Unrealized gains or losses on outstanding positions in forward foreign currency contracts held at the close of the period are recognized as ordinary income or loss for federal income tax purposes.

	The use of forward foreign currency contracts does not eliminate fluctuations in the underlying prices of the securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit a potential gain that might result should the value of the currency increase. These contracts involve market risk in excess of the amount reflected in the fund’s Statement of Assets and Liabilities. The face or contract amount in U.S. dollars reflects the total exposure the fund has in that particular currency contract. In addition, there could be exposure to risks (limited to the amount of unrealized gains) if the counterparties to the contracts are unable to meet the terms of their contracts. At October 31, 2006, International Fund had no outstanding forward currency contracts.

	SECURITIES PURCHASED ON A WHEN-ISSUED BASIS – Delivery and payment for securities that have been purchased by a fund on a when-issued or forward-commitment basis can take place up to a month or more after the transaction. Such securities do not earn interest, are subject to market fluctuations, and may increase or decrease in value prior to their delivery. Each fund segregates assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of the fund’s net asset value if the fund makes such purchases while remaining substantially fully invested. At October 31, 2006, Balanced Fund had when-issued or forward-commitment securities outstanding with a total cost of $5,067.

	In connection with the ability to purchase securities on a when-issued basis, each fund may also enter into dollar rolls in which the fund sells securities purchased on a forward-commitment basis and simultaneously contracts with a counterparty to repurchase similar (same type, coupon, and maturity), but not identical securities on a specified future date. As an inducement for the fund to “roll over” its purchase commitments, the fund receives negotiated amounts in the form of reductions of the purchase price of the commitment. Dollar rolls are considered a form of leverage. As of and for the year ended October 31, 2006, the funds had no dollar rolls.

	ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, and may have contractual restrictions on resale. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a fund’s investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the funds’ board of directors. At October 31, 2006, Real Estate Securities Fund, Small Cap Growth Opportunities Fund, and Balanced Fund had investments in illiquid securities with a total value of $245, $201, and $118, respectively, or 0.0%, 0.1%, and 0.0%, respectively, of total net assets.

124 First American Funds Annual Report 2006


	Information concerning illiquid securities, including restricted securities considered to be illiquid, is as follows:

Real Estate Securities Fund

Shares

Dates Acquired

Cost Basis

Beacon Capital

3/98

435

Newcastle Investment Holdings

6/98

153

Small Cap Growth Opportunities Fund

Shares

Dates Acquired

Cost Basis

Kuhlman Company Warrants

282

1/06

273

Tridium, Class B

279

4/99-8/99

1,524

VideoPropulsion

785

12/99

—*


	*Rounds to zero.


Balanced Fund	Par		Dates Acquired		Cost Basis

Duty Free International	$	588		1/99-11/02	$	588


	SECURITIES LENDING – In order to generate additional income, a fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each fund’s policy is to maintain collateral in the form of cash, U.S. Government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. The collateral is then “marked-to-market” daily until the securities are returned. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially. Cash collateral is invested in short-term, high-quality U.S. dollar denominated securities that would be eligible for investment by a money market fund under Investment Company Act Rule 2a-7.

	As of October 31, 2006, cash collateral invested was as follows:


									Other
	Commercial		Corporate		Repurchase		Money		Short-Term
	Paper		Obligations		Agreements		Market Fund		Securities		Total

Real Estate Securities Fund	$	116,567	$	137,173	$	185,488	$	11,152	$	8,893	$	459,273
International Fund		—		—		—		365,779		—		365,779
Small Cap Growth Opportunities Fund		38,824		45,687		61,779		3,715		2,962		152,967
Small Cap Select Fund		101,818		119,816		162,017		9,741		7,767		401,159
Small Cap Value Fund		38,782		45,637		61,712		3,710		2,959		152,800
Small-Mid Cap Core Fund		8,477		9,975		13,489		811		646		33,398
Mid Cap Growth Opportunities Fund		150,679		177,314		239,768		14,416		11,495		593,672
Mid Cap Value Fund		67,700		79,667		107,728		6,477		5,165		266,737
Large Cap Growth Opportunities Fund		48,085		56,584		76,515		4,601		3,668		189,453
Large Cap Select Fund		25,875		30,449		41,174		2,476		1,974		101,948
Large Cap Value Fund		57,087		67,178		90,839		5,462		4,355		224,921
Balanced Fund		22,879		26,923		36,405		2,189		1,745		90,141
Equity Income Fund		20,029		23,569		31,871		1,916		1,528		78,913

FAF Advisors, Inc. (“FAF Advisors”), formerly U.S. Bancorp Asset Management, Inc., serves as the securities lending agent for the funds in transactions involving the lending of portfolio securities on behalf of the funds. FAF Advisors acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the Securities and Exchange Commission (“SEC”). Effective January 1, 2006, FAF Advisors receives fees equal to 32% of each fund’s income from securities lending transactions. Prior to January 1, 2006, such fees were 35% of each fund’s income from securities lending transactions. With respect to International Fund, a portion of this amount was paid to State Street Bank and Trust for acting as sub-lending agent. Effective January 1, 2007, FAF Advisors will receive fees of up to 25% of each fund’s net income from securities lending transactions. In addition, beginning February 1, 2007, for each fund other than International Fund, collateral for securities on loan will be invested in a money market fund administered by FAF Advisors and FAF Advisors will receive an administration fee equal to 0.02% of such fund’s average daily net assets.

First American Funds Annual Report 2006 125

Notes to Financial Statements continued


	For International Fund, State Street Bank and Trust will continue to act as sub-lending agent and will receive a portion of FAF Advisors’ fee. Fees paid to FAF Advisors by the funds for the fiscal year ended October 31, 2006, were as follows:


Fund

Real Estate Securities Fund							$157
International Fund							454
Small Cap Growth Opportunities Fund							119
Small Cap Select Fund							493
Small Cap Value Fund							104
Small-Mid Cap Core Fund							23
Mid Cap Growth Opportunities Fund							255
Mid Cap Value Fund							106
Large Cap Growth Opportunities Fund							113
Large Cap Select Fund							38
Large Cap Value Fund							88
Balanced Fund							85
Equity Income Fund							89


	Income from securities lending is recorded on the Statement of Operations as securities lending income net of fees paid to FAF Advisors.

	SWAP AGREEMENTS – The Balanced Fund may invest in swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The fund may enter into interest rate and credit default swap agreements to manage its exposure to interest rates and credit risk.

	Interest rate swap agreements involve the exchange by the fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments with respect to the notional amount of principal). As of October 31, 2006, Balanced Fund had outstanding interest rate swaps as disclosed in its Schedule of Investments.

	In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a specified issuer on its obligation (typically a corporate issue or sovereign issue of an emerging country). The fund may use credit default swaps to provide a measure of protection against defaults of sovereign issuers (i.e., to reduce risk where the fund owns an issuance of or otherwise has exposure to the sovereign issuer) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. As of October 31, 2006, Balanced Fund had no outstanding credit default swaps.

	Swaps are marked-to-market daily based upon quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss on the Statement of Operations. Payments received or made at the beginning of the measurement period are reflected on the Statement of Assets and Liabilities. A liquidation payment received or made at the termination of the swap agreement is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received by the fund are included as part of miscellaneous income on the Statement of Operations. Entering into these agreements involves, to varying degrees, elements of credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to an agreement may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreement, and that there may be unfavorable changes in interest rates.

	SECURITY LITIGATION SETTLEMENTS – Income from settlement proceeds related to portfolio securities is recorded as an adjustment to realized or unrealized gains or losses. For the year ended October 31, 2006, International Fund, Small Cap Growth Opportunities Fund, Small Cap Select Fund, Small Cap Value Fund, Small-Mid Cap Core Fund, Mid Cap Growth Opportunities Fund, Mid Cap Value Fund, Large Cap Growth Opportunities Fund, Large Cap Value Fund, Balanced Fund, and Equity Income Fund received settlement proceeds of $205, $270, $367, $189, $158, $559, $3, $317, $817, $220, and $249, respectively, as an adjustment to realized gains or losses for settlement proceeds related to securities no longer included in the portfolio.

	EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.

126 First American Funds Annual Report 2006


	INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal year ended October 31, 2006.

	DEFERRED COMPENSATION PLAN – Under a Deferred Compensation Plan (the “Plan”), non-interested directors of the First American Family of Funds may participate and elect to defer receipt of part or all of their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of selected open-end First American Funds as designated by the board of directors. All amounts in the Plan are 100% vested, and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan.

	USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amount of net assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.

	RECLASSIFICATIONS – Certain amounts in the October 31, 2005 financial statements have been reclassified to conform to the October 31, 2006 presentation.


3 >	Fees and Expenses


	INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee based upon average daily net assets. The annual fee for each fund is as follows:


	Advisory Fee
	as a % of Average
Fund	Daily Net Assets

Real Estate Securities Fund		0.70	%
International Fund		1.00
Small Cap Growth Opportunities Fund		1.00
Small Cap Select Fund		0.70
Small Cap Value Fund		0.70
Small-Mid Cap Core Fund		0.70
Mid Cap Growth Opportunities Fund		0.70
Mid Cap Value Fund		0.70
Large Cap Growth Opportunities Fund*		0.65
Large Cap Select Fund*		0.65
Large Cap Value Fund*		0.65
Balanced Fund*		0.65
Equity Income Fund*		0.65


	*	The advisory fees for Large Cap Growth Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund, Balanced Fund, and Equity Income Fund are equal to an annual rate of 0.65% of the average daily net assets up to $3 billion, 0.625% of the average daily net assets on the next $2 billion, and 0.60% of the average daily net assets in excess of $5 billion.


	FAF Advisors has agreed to waive fees and reimburse other fund expenses for certain funds at least through June 30, 2007, so that total fund operating expenses, as a percentage of average daily net assets, do not exceed the following amounts:


	Share Class

Fund	A			B			C			R			Y

International Fund⁽¹⁾		1.49	%		2.24	%		2.24	%		1.74	%		1.24	%
Small Cap Growth Opportunities Fund		1.47			2.22			2.22			1.72			1.22
Small-Mid Cap Core Fund⁽²⁾		1.41			2.16			2.16			n/a			1.16
Balanced Fund		1.10			1.85			1.85			1.35			0.85


	(1)	Effective July 1, 2006. Prior to July 1, 2006, total operating expenses for International Fund were capped at 1.52%, 2.27%, 2.27%, 1.77%, and 1.27% for Class A, Class B, Class C, Class R, and Class Y, respectively.

	(2)	Effective July 1, 2006. Prior to July 1, 2006, total operating expenses for Small-Mid Cap Core Fund were not capped.

The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisor’s investment advisory fee received from the related money

First American Funds Annual Report 2006 127

Notes to Financial Statements continued


	market funds that is attributable to the assets of the investing fund. For financial statement purposes, these reimbursements are recorded as investment income.

	ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank National Association (“U.S. Bank”). Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors provides, or engages other entities to provide, services to the funds. These services include various legal, oversight, and administrative services and accounting services. During the fiscal year, the funds paid FAF Advisors administration fees which were calculated daily and paid monthly. Prior to July 1, 2006, such fees were equal to each fund’s pro rata share of an amount equal, on an annual basis, to 0.15% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds up to $8 billion, 0.135% on the next $17 billion of the aggregate average daily net assets, 0.12% on the next $25 billion of the aggregate average daily net assets, and 0.10% of the aggregate average daily net assets in excess of $50 billion.

	Effective July 1, 2006, the administration fee was increased to an amount equal, on an annualized basis, to 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. This increase was a result of incorporating into the administration fee a fee equal to 0.10% of the funds’ average daily net assets that had previously been paid to USBFS as part of the transfer agent fee for providing certain shareholder services and to reimburse USBFS for its payments to financial institutions that establish and maintain omnibus accounts and provide customary services for such accounts.

	All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF Advisors and USBFS for any out-of-pocket expenses incurred in providing administration services.

	For the fiscal year ended October 31, 2006, administration fees paid to FAF Advisors by the funds included in this report were as follows:


Fund

Real Estate Securities Fund	$	1,244
International Fund		2,688
Small Cap Growth Opportunities Fund		489
Small Cap Select Fund		1,361
Small Cap Value Fund		649
Small-Mid Cap Core Fund		152
Mid Cap Growth Opportunities Fund		2,552
Mid Cap Value Fund		1,264
Large Cap Growth Opportunities Fund		1,507
Large Cap Select Fund		682
Large Cap Value Fund		1,415
Balanced Fund		589
Equity Income Fund		2,074


	SUB-ADVISORY FEES – J.P. Morgan Investment Management Inc. (“JPMorgan”) serves as investment sub-advisor to the International Fund pursuant to a sub-advisory agreement with FAF Advisors. For its services under the sub-advisory agreement with FAF Advisors, JPMorgan is paid a monthly fee by FAF Advisors equal, on an annual basis, to 0.34% of the first $100 million of the fund’s average daily net assets, 0.30% of the next $250 million of the fund’s average daily net assets, 0.24% of the next $1.25 billion of the fund’s average daily net assets and 0.22% of the fund’s average daily net assets in excess of $1.60 billion.

	TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. Prior to July 1, 2006, the funds paid transfer agent fees of $18,500 per share class and additional per account fees for transfer agent services. These fees are allocated to each fund based upon the fund’s pro rata share of the aggregate average daily net assets of the funds that comprise FAIF. Under the transfer agent agreement, the funds also paid USBFS a fee equal to, on an annual basis, 0.10% of each fund’s average daily net assets. This fee was intended to compensate USBFS for its payments to financial institutions that establish and maintain omnibus accounts and provide customary services for such accounts. In addition to these fees, the funds reimbursed USBFS for out-of-pocket expenses incurred in providing transfer agent services.

	Effective July 1, 2006, the funds are charged transfer agent fees based on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based on the number of accounts within that fund. The

128 First American Funds Annual Report 2006


	$18,500 fee per share class that was charged in addition to per account fees was eliminated. As noted above, effective July 1, 2006, the 0.10% fee for shareholder services and payments to financial institutions was incorporated into the administration fee. The funds continue to reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.


	For the fiscal year ended October 31, 2006, transfer agent fees paid to USBFS by the funds included in this report were as follows:


Fund

Real Estate Securities Fund	$	693
International Fund		1,611
Small Cap Growth Opportunities Fund		344
Small Cap Select Fund		883
Small Cap Value Fund		437
Small-Mid Cap Core Fund		181
Mid Cap Growth Opportunities Fund		1,661
Mid Cap Value Fund		769
Large Cap Growth Opportunities Fund		1,039
Large Cap Select Fund		407
Large Cap Value Fund		904
Balanced Fund		423
Equity Income Fund		1,326


	CUSTODIAN FEES – U.S. Bank serves as the custodian for each fund other than International Fund pursuant to a custodian agreement with FAIF. The fee for each fund (except International Fund) is equal to an annual rate of 0.005% of average daily net assets. State Street Bank (“SSB”) serves as International Fund’s custodian pursuant to a custodian agreement with FAIF. The International Fund pays SSB various asset-based fees and transaction charges based on the issuer’s country. All fees are computed daily and paid monthly.

	Under the custodian agreements, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. The International Fund has also entered into an agreement with SSB to receive certain credits to reduce the amount of custody fees incurred. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which increases the fund’s custodian expenses.

	For the fiscal year ended October 31, 2006, custodian fees were increased as a result of overdrafts, and decreased as a result of interest earned (and, for International Fund, as a result of other custodian credits) as follows:


Fund	Increased			Decreased

Real Estate Securities Fund	$	1		$	5
International Fund		1			553
Small Cap Growth Opportunities Fund		—	⁽¹⁾		6
Small Cap Select Fund		6			14
Small Cap Value Fund		1			2
Small-Mid Cap Core Fund		1			1
Mid Cap Growth Opportunities Fund		—			10
Mid Cap Value Fund		—			10
Large Cap Growth Opportunities Fund		3			2
Large Cap Select Fund		—			3
Large Cap Value Fund		—			1
Balanced Fund		1			6
Equity Income Fund		2			2


	(1)	Due to the presentation of the financial statements in thousands, the number rounds to zero.

DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as the distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under rule 12b-1 of the Investment Company Act, each fund pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00%, 1.00%, and 0.50% of each fund’s average daily net assets attributable to Class A shares, Class B shares, Class C shares, and Class R shares, respectively. No distribution or shareholder servicing fees are paid by Class Y shares. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities.

First American Funds Annual Report 2006 129

Notes to Financial Statements continued


	During the period, FAF Advisors also provided shareholder services pursuant to a shareholder servicing plan and agreement with FAIF with respect to the funds’ Class R shares. Under the shareholder servicing plan and agreement, each fund, except Small-Mid Cap Core Fund (which does not issue Class R shares), was required to pay FAF Advisors a monthly shareholder servicing fee equal to an annual rate of 0.15% of each fund’s average daily net assets of the Class R shares. FAF Advisors waived all fees under this plan and agreement. This agreement was terminated in September 2006.

	Under these distribution and shareholder servicing agreements, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended October 31, 2006:


Fund

Real Estate Securities Fund	$	342
International Fund		96
Small Cap Growth Opportunities Fund		143
Small Cap Select Fund		295
Small Cap Value Fund		110
Small-Mid Cap Core Fund		60
Mid Cap Growth Opportunities Fund		564
Mid Cap Value Fund		266
Large Cap Growth Opportunities Fund		235
Large Cap Select Fund		16
Large Cap Value Fund		222
Balanced Fund		294
Equity Income Fund		463


	OTHER FEES AND EXPENSES – In addition to the investment advisory fees, custodian fees, distribution and shareholder servicing fees, transfer agent fees, and administration fees, each fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal year ended October 31, 2006, legal fees and expenses of $74 were paid to a law firm of which an Assistant Secretary of the funds is a partner.

	CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) is imposed on redemptions made in the Class B shares. The CDSC varies depending on the number of years from time of payment for the purchase of Class B shares until the redemption of such shares. Class B shares automatically convert to Class A shares after eight years.


	CDSC as a Percentage
	of Dollar Amount
Year Since Purchase	Subject to Charge

First		5.00	%
Second		5.00
Third		4.00
Fourth		3.00
Fifth		2.00
Sixth		1.00
Seventh		—
Eighth		—


	A CDSC of 1.00% is imposed on redemptions made in Class C shares for the first 12 months.

	The CDSC for Class B shares and Class C shares is imposed on the value of the purchased shares or the value at the time of redemption, whichever is less.

130 First American Funds Annual Report 2006


	For the fiscal year ended October 31, 2006, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:


Fund

Real Estate Securities Fund	$	193
International Fund		98
Small Cap Growth Opportunities Fund		92
Small Cap Select Fund		188
Small Cap Value Fund		88
Small-Mid Cap Core Fund		48
Mid Cap Growth Opportunities Fund		310
Mid Cap Value Fund		163
Large Cap Growth Opportunities Fund		119
Large Cap Select Fund		56
Large Cap Value Fund		84
Balanced Fund		99
Equity Income Fund		176


4 >	Capital Share Transactions


	FAIF has 324 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:


		Real Estate									International									Small Cap Growth
		Securities Fund									Fund									Opportunities Fund

					One-Month									One-Month									One-Month
					Fiscal									Fiscal									Fiscal
					Period									Period									Period
		Year Ended			Ended			Year Ended			Year Ended			Ended			Year Ended			Year Ended			Ended			Year Ended
		10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05

Class A:
	Shares issued		4,130			136			2,268			944			116			900			4,199			41			805
	Shares issued in lieu of cash distributions		997			—			504			37			—			23			735			—			553
	Shares redeemed		(2,737	)		(136	)		(1,219	)		(1,467	)		(73	)		(1,335	)		(1,598	)		(163	)		(2,445	)

Total Class A transactions			2,390			—			1,553			(486	)		43			(412	)		3,336			(122	)		(1,087	)

Class B:
	Shares issued		100			3			57			90			13			56			27			1			28
	Shares issued in lieu of cash distributions		27			—			19			2			—			—			84			—			57
	Shares redeemed		(57	)		(12	)		(98	)		(165	)		(18	)		(235	)		(149	)		(7	)		(130	)

Total Class B transactions			70			(9	)		(22	)		(73	)		(5	)		(179	)		(38	)		(6	)		(45	)

Class C:
	Shares issued		295			3			75			69			2			70			50			1			23
	Shares issued in lieu of cash distributions		31			—			20			2			—			—			30			—			27
	Shares redeemed		(77	)		(12	)		(96	)		(157	)		(23	)		(269	)		(78	)		(4	)		(132	)

Total Class C transactions			249			(9	)		(1	)		(86	)		(21	)		(199	)		2			(3	)		(82	)

Class R:
	Shares issued		421			1			3			—			—			35			68			—			1
	Shares issued in lieu of cash distributions		5			—			—			—			—			—			—			—			—
	Shares redeemed		(76	)		—			(1	)		—			(13	)		(22	)		(3	)		—			(1	)

Total Class R transactions			350			1			2			—			(13	)		13			65			—			—

Class Y:
	Shares issued		7,940			283			6,209			16,815			2,883			28,181			1,850			143			1,632
	Shares issued in lieu of cash distributions		1,946			—			1,073			865			—			542			1,388			—			839
	Shares redeemed		(4,939	)		(811	)		(5,485	)		(26,402	)		(1,081	)		(16,895	)		(3,669	)		(190	)		(3,522	)

Total Class Y transactions			4,947			(528	)		1,797			(8,722	)		1,802			11,828			(431	)		(47	)		(1,051	)

Net increase (decrease) in capital shares			8,006			(545	)		3,329			(9,367	)		1,806			11,051			2,934			(178	)		(2,265	)

First American Funds Annual Report 2006 131

Notes to Financial Statements continued


		Small Cap									Small Cap									Small-Mid Cap
		Select Fund									Value Fund									Core Fund

					One-Month									One-Month									One-Month
					Fiscal									Fiscal									Fiscal
					Period									Period									Period
		Year Ended			Ended			Year Ended			Year Ended			Ended			Year Ended			Year Ended			Ended			Year Ended
		10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05

Class A:
	Shares issued		9,110			151			1,586			865			34			526			1,273			97			653
	Shares issued in lieu of cash distributions		1,595			—			1,274			769			—			432			—			—			—
	Shares redeemed		(2,829	)		(109	)		(2,207	)		(711	)		(57	)		(656	)		(1,315	)		(85	)		(1,583	)

Total Class A transactions			7,876			42			653			923			(23	)		302			(42	)		12			(930	)

Class B:
	Shares issued		169			2			118			32			2			57			52			3			64
	Shares issued in lieu of cash distributions		260			—			206			167			—			104			—			—			—
	Shares redeemed		(245	)		(15	)		(221	)		(222	)		(13	)		(185	)		(435	)		(40	)		(655	)

Total Class B transactions			184			(13	)		103			(23	)		(11	)		(24	)		(383	)		(37	)		(591	)

Class C:
	Shares issued		568			12			229			61			2			60			231			7			52
	Shares issued in lieu of cash distributions		217			—			192			85			—			50			—			—			—
	Shares redeemed		(385	)		(47	)		(364	)		(133	)		(8	)		(93	)		(235	)		(17	)		(329	)

Total Class C transactions			400			(35	)		57			13			(6	)		17			(4	)		(10	)		(277	)

Class R:⁽¹⁾
	Shares issued		176			8			22			133			—			—			—			—			—
	Shares issued in lieu of cash distributions		6			—			1			1			—			—			—			—			—
	Shares redeemed		(24	)		(6	)		(4	)		(13	)		—			—			—			—			—

Total Class R transactions			158			2			19			121			—			—			—			—			—

Class Y:
	Shares issued		8,486			233			6,525			3,416			175			3,781			5,352			140			2,087
	Shares issued in lieu of cash distributions		7,353			—			6,437			4,769			—			3,016			—			—			—
	Shares redeemed		(12,717	)		(934	)		(16,385	)		(6,538	)		(509	)		(7,079	)		(2,340	)		(264	)		(3,915	)

Total Class Y transactions			3,122			(701	)		(3,423	)		1,647			(334	)		(282	)		3,012			(124	)		(1,828	)

Net increase (decrease) in capital shares			11,740			(705	)		(2,591	)		2,681			(374	)		13			2,583			(159	)		(3,626	)


(1)	Class R is not offered by the Small-Mid Cap Core Fund.


		Mid Cap Growth									Mid Cap									Large Cap Growth
		Opportunities Fund									Value Fund									Opportunities Fund

					One-Month									One-Month									One-Month
					Fiscal									Fiscal									Fiscal
					Period									Period									Period
		Year Ended			Ended			Year Ended			Year Ended			Ended			Year Ended			Year Ended			Ended			Year Ended
		10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05

Class A:
	Shares issued		3,381			176			3,556			4,315			186			1,266			459			34			565
	Shares issued in lieu of cash distributions		775			—			683			155			—			7			—			—			8
	Shares redeemed		(4,096	)		(106	)		(1,128	)		(929	)		(37	)		(510	)		(1,174	)		(89	)		(1,246	)

Total Class A transactions			60			70			3,111			3,541			149			763			(715	)		(55	)		(673	)

Class B:
	Shares issued		63			3			90			73			4			91			27			2			45
	Shares issued in lieu of cash distributions		42			—			49			21			—			—			—			—			1
	Shares redeemed		(79	)		(4	)		(58	)		(157	)		(28	)		(179	)		(265	)		(22	)		(356	)

Total Class B transactions			26			(1	)		81			(63	)		(24	)		(88	)		(238	)		(20	)		(310	)

Class C:
	Shares issued		240			11			182			460			19			179			19			2			45
	Shares issued in lieu of cash distributions		45			—			54			17			—			—			—			—			—
	Shares redeemed		(183	)		(44	)		(142	)		(95	)		(7	)		(44	)		(120	)		(14	)		(160	)

Total Class C transactions			102			(33	)		94			382			12			135			(101	)		(12	)		(115	)

Class R:
	Shares issued		338			4			145			685			18			15			9			1			10
	Shares issued in lieu of cash distributions		27			—			—			4			—			—			—			—			—
	Shares redeemed		(66	)		(2	)		(12	)		(55	)		—			—			(1	)		—			—
											��
Total Class R transactions			299			2			133			634			18			15			8			1			10

Class Y:
	Shares issued		4,107			228			5,339			4,891			271			6,771			4,473			501			6,018
	Shares issued in lieu of cash distributions		2,385			—			3,346			1,130			—			99			—			—			59
	Shares redeemed		(7,045	)		(489	)		(8,873	)		(3,614	)		(357	)		(3,514	)		(8,081	)		(350	)		(22,930	)

Total Class Y transactions			(553	)		(261	)		(188	)		2,407			(86	)		3,356			(3,608	)		151			(16,853	)

Net increase (decrease) in capital shares			(66	)		(223	)		3,231			6,901			69			4,181			(4,654	)		65			(17,941	)

132 First American Funds Annual Report 2006


		Large Cap									Large Cap									Balanced
		Select Fund									Value Fund									Fund

					One-Month									One-Month									One-Month
					Fiscal									Fiscal									Fiscal
					Period									Period									Period
		Year Ended			Ended			Year Ended			Year Ended			Ended			Year Ended			Year Ended			Ended			Year Ended
		10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05			10/31/06			10/31/05			9/30/05

Class A:
	Shares issued		345			35			334			522			53			935			877			120			1,220
	Shares issued in lieu of cash distributions		10			—			1			237			—			54			154			—			145
	Shares redeemed		(281	)		(4	)		(26	)		(1,595	)		(71	)		(1,521	)		(2,330	)		(146	)		(3,146	)

Total Class A transactions			74			31			309			(836	)		(18	)		(532	)		(1,299	)		(26	)		(1,781	)

Class B:
	Shares issued		14			1			25			31			1			38			34			4			100
	Shares issued in lieu of cash distributions		1			—			—			25			—			3			12			—			13
	Shares redeemed		(13	)		—			(7	)		(323	)		(36	)		(577	)		(648	)		(89	)		(1,091	)

Total Class B transactions			2			1			18			(267	)		(35	)		(536	)		(602	)		(85	)		(978	)

Class C:
	Shares issued		5			—			10			26			3			36			44			3			79
	Shares issued in lieu of cash distributions		1			—			—			10			—			1			2			—			4
	Shares redeemed		(2	)		—			(2	)		(78	)		(12	)		(121	)		(226	)		(62	)		(181	)

Total Class C transactions			4			—			8			(42	)		(9	)		(84	)		(180	)		(59	)		(98	)

Class R:
	Shares issued		10			—			—			7			—			—			3			—			—
	Shares issued in lieu of cash distributions		—			—			—			—			—			—			—			—			—
	Shares redeemed		(2	)		—			—			—			—			—			(1	)		—			—

Total Class R transactions			8			—			—			7			—			—			2			—			—

Class Y:
	Shares issued		12,008			1,217			16,640			4,621			230			4,666			3,312			248			3,524
	Shares issued in lieu of cash distributions		515			—			358			1,056			5			335			393			—			382
	Shares redeemed		(5,046	)		(160	)		(17,545	)		(6,211	)		(502	)		(26,155	)		(6,111	)		(650	)		(8,890	)

Total Class Y transactions			7,477			1,057			(547	)		(534	)		(267	)		(21,154	)		(2,406	)		(402	)		(4,984	)

Net increase (decrease) in capital shares			7,565			1,089			(212	)		(1,672	)		(329	)		(22,306	)		(4,485	)		(572	)		(7,841	)


		Equity
		Income Fund

					One-Month
					Fiscal
					Period
		Year Ended			Ended			Year Ended
		10/31/06			10/31/05			9/30/05

Class A:
	Shares issued		876			64			1,568
	Shares issued in lieu of cash distributions		220			6			222
	Shares redeemed		(2,869	)		(226	)		(3,494	)

Total Class A transactions			(1,773	)		(156	)		(1,704	)

Class B:
	Shares issued		67			5			144
	Shares issued in lieu of cash distributions		20			—			17
	Shares redeemed		(375	)		(27	)		(473	)

Total Class B transactions			(288	)		(22	)		(312	)

Class C:
	Shares issued		63			8			92
	Shares issued in lieu of cash distributions		14			—			14
	Shares redeemed		(492	)		(50	)		(457	)

Total Class C transactions			(415	)		(42	)		(351	)

Class R:
	Shares issued		8			1			32
	Shares issued in lieu of cash distributions		—			—			—
	Shares redeemed		(7	)		—			(2	)

Total Class R transactions			1			1			30

Class Y:
	Shares issued		5,379			333			12,906
	Shares issued in lieu of cash distributions		637			17			681
	Shares redeemed		(20,386	)		(1,701	)		(36,568	)

Total Class Y transactions			(14,370	)		(1,351	)		(22,981	)

Net decrease in capital shares			(16,845	)		(1,570	)		(25,318	)

First American Funds Annual Report 2006 133

Notes to Financial Statements continued


	Class B shares converted to Class A shares (reflected above as Class A shares issued and Class B shares redeemed) during the fiscal year ended October 31, 2006, the one-month fiscal period ended October 31, 2005, and the fiscal year ended September 30, 2005, were as follows:


			One-Month
			Fiscal
	Year Ended		Period Ended			Year Ended
Fund	10/31/06		10/31/05			9/30/05

Real Estate Securities Fund		13		4			23
International Fund		41		3			40
Small Cap Growth Opportunities Fund		43		1			10
Small Cap Select Fund		66		2			38
Small Cap Value Fund		88		6			77
Small-Mid Cap Core Fund		143		15			138
Mid Cap Growth Opportunities Fund		19		—	⁽¹⁾		8
Mid Cap Value Fund		78		16			91
Large Cap Growth Opportunities Fund		125		10			176
Large Cap Select Fund		1		—			—	⁽¹⁾
Large Cap Value Fund		185		27			326
Balanced Fund		331		48			469
Equity Income Fund		110		7			175


	(1)	Due to the presentation of the financial statements in thousands, the number rounds to zero.


5 >	Investment Security Transactions


	During the fiscal year ended October 31, 2006, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows:


	U.S. Government				Other Investment
	Securities				Securities

Fund	Purchases		Sales		Purchases		Sales

Real Estate Securities Fund	$	—	$	—	$	1,338,017	$	1,241,185
International Fund		—		—		292,438		361,065
Small Cap Growth Opportunities Fund		—		—		644,340		649,797
Small Cap Select Fund		—		—		947,186		953,718
Small Cap Value Fund		—		—		392,886		458,255
Small-Mid Cap Core Fund		—		—		128,744		103,948
Mid Cap Growth Opportunities Fund		—		—		1,213,295		1,349,590
Mid Cap Value Fund		—		—		676,841		543,322
Large Cap Growth Opportunities Fund		—		—		901,521		1,025,156
Large Cap Select Fund		—		—		570,391		468,703
Large Cap Value Fund		—		—		490,314		560,437
Balanced Fund		205,550		206,192		330,362		363,838
Equity Income Fund		—		—		301,243		557,071


	The aggregate gross unrealized appreciation and depreciation of securities held by the funds and the total cost of securities (including cost of securities purchased with proceeds from securities lending) for federal tax purposes at October 31, 2006, were as follows:


	Aggregate		Aggregate					Federal
	Gross		Gross					Income
Fund	Appreciation		Depreciation			Net		Tax Cost

Real Estate Securities Fund	$	269,903	$	(5,367	)	$	264,536	$	1,227,282
International Fund		471,649		(18,792	)		452,857		1,720,422
Small Cap Growth Opportunities Fund		32,469		(19,712	)		12,757		472,821
Small Cap Select Fund		140,031		(44,313	)		95,718		1,291,532
Small Cap Value Fund		68,630		(10,135	)		58,495		527,350
Small-Mid Cap Core Fund		10,706		(2,954	)		7,752		132,856
Mid Cap Growth Opportunities Fund		318,440		(32,018	)		286,422		1,922,626
Mid Cap Value Fund		148,946		(9,928	)		139,018		1,053,366
Large Cap Growth Opportunities Fund		120,326		(13,969	)		106,357		991,440
Large Cap Select Fund		57,296		(5,043	)		52,253		533,566
Large Cap Value Fund		182,792		(7,648	)		175,144		1,005,217
Balanced Fund		38,077		(3,986	)		34,091		437,015
Equity Income Fund		360,476		(3,355	)		357,121		1,059,287

134 First American Funds Annual Report 2006


	The difference between cost for financial statement purposes and federal tax purposes is primarily due to losses deferred from wash sales, investments in limited partnerships and REITs, the amount of gain (loss) recognized for tax purposes due to mark-to-market adjustments on open futures contracts and the mark-to-market of certain PFICs for tax purposes.


6 >	Concentration of Risks

Portfolios that primarily invest in a particular sector may experience greater volatility than portfolios investing in a broad range of industry sectors. Real Estate Securities Fund primarily invests in income-producing common stocks of publicly traded companies engaged in the real estate industry. The real estate industry has been subject to substantial fluctuations and declines on a local, regional, and national basis in the past and that may continue in the future. As of October 31, 2006, Small Cap Growth Opportunities Fund and Large Cap Growth Opportunities Fund each had a significant portion of their assets invested in the information technology sector, which could be more sensitive to short product cycles and aggressive pricing than the technology industry as a whole. As of the same date, International Fund, Small Cap Value Fund, Mid Cap Value Fund, and Large Cap Value Fund had significant portions of their assets invested in the financials sector. The financials sector may be more greatly impacted by the performance of the overall economy, interest rates, competition, and consumer confidence and spending.


7 >	Indemnifications


	The funds enter into contracts that contain a variety of indemnifications. The funds’ maximum exposure under these arrangements is unknown. However, the funds have not had prior claims of losses pursuant to these contracts and expect the risk of loss to be remote.


8 >	Additional Information Related to Small Cap Growth Opportunities Fund

As a result of an internal review, FAF Advisors uncovered potentially improper trading of a portfolio security held in Small Cap Growth Opportunities Fund, which occurred in April 2002. FAF Advisors reported this matter to the fund’s board of directors and to the SEC. The SEC commenced an investigation of the matter and the Staff of the SEC has advised the fund that it intends to recommend that the SEC seek disgorgement from the fund of any economic benefit the fund received (plus prejudgment interest) as a result of the alleged improper trading. If the fund is required to make any such payments, FAF Advisors has agreed to hold the fund harmless and make the payments itself. Accordingly, this matter is not expected to have any impact on the fund’s NAV.


9 >	Redemption-in-Kind Transaction


	In July 2006, $8,753 was redeemed from Small Cap Growth Opportunities Fund as a redemption-in-kind transaction. In this transaction the fund paid redemption proceeds by distributing a proportionate amount of securities in the fund’s portfolio. Remaining shareholders in the fund did not recognize any additional capital gains from the transaction.


10 >	New Accounting Pronouncements


	On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

	In September 2006, the FASB issued Statement on Financial Accounting Standards No. 157, “Fair Value Measurements” (FAS 157). FAS 157 clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of October 31, 2006, the funds do not believe the adoption of FAS 157 will impact the amounts reported in the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain of the measurements reported in the Statement of Operations for a fiscal period.

First American Funds Annual Report 2006 135

NOTICE TO SHAREHOLDERS October 31, 2006 (unaudited)

TAX INFORMATION


	The information set forth below is for each fund’s fiscal year as required by federal laws. Most shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of a fund. Accordingly, the information needed for income tax purposes will be sent in early 2007 on Form 1099. Please consult your tax advisor for proper treatment of this information.

	For the fiscal year ended October 31, 2006, each fund has designated long-term capital gains, ordinary income, dividends qualifying for the corporate received deduction, and qualified dividend income with regard to distributions paid during the year as follows:


	Long Term			Ordinary						Corporate
	Capital Gains			Income			Total			Dividends			Qualified
	Distributions			Distributions			Distributions			Received			Dividend
Fund	(Tax Basis) (a)			(Tax Basis) (a)			(Tax Basis)			Deduction (b)			Income (b)(c)

Real Estate Securities Fund		53	%		47	%		100	%		0.89	%		1.31	%
International Fund(d)		0			100			100			0.00			100.00
Small Cap Growth Opportunities Fund		15			85			100			1.20			1.31
Small Cap Select Fund		68			32			100			6.30			6.54
Small Cap Value Fund		87			13			100			36.20			37.11
Small-Mid Cap Core Fund		0			0			0			0.00			0.00
Mid Cap Growth Opportunities Fund		66			34			100			9.80			10.46
Mid Cap Value Fund		84			16			100			44.90			46.36
Large Cap Growth Opportunities Fund		0			0			0			0.00			0.00
Large Cap Select Fund		40			60			100			53.10			54.35
Large Cap Value Fund		69			31			100			63.70			66.72
Balanced Fund		0			100			100			36.30			38.43
Equity Income Fund		26			74			100			100.00			100.00


	(a)	Based on a percentage of the fund’s total distributions.


	(b)	Based on a percentage of ordinary income distributions of the fund.


	(c)	For the fiscal year ended October 31, 2006, certain dividends paid by the funds may be subject to a maximum tax rate of 15%, as provided by the Internal Revenue Code 1(h). The funds intend to designate the maximum amounts as taxed at a maximum rate of 15%. Complete information was computed and reported in conjunction with your 2005 Form 1099-DIV. As of October 31, 2006, for the calendar year to date, qualified dividend income as a percentage of ordinary income distributions for each fund was as follows: Real Estate Securities, International, Small Cap Growth Opportunities, Small Cap Select, Small Cap Value, Small-Mid Cap Core, Mid Cap Growth Opportunities, Mid Cap Value, Large Cap Growth Opportunities, Large Cap Select, Large Cap Value, Balanced, and Equity Income funds were 0%, 0%, 0%, 0%, 0%, 0%, 0%, 100%, 0%, 100%, 100%, 44.18%, and 100%, respectively.


	(d)	The International Fund has elected to pass through to shareholders foreign taxes under Section 853 of the Internal Revenue Code. Foreign taxes paid and foreign source income for the fund were $3,754,130 and $43,063,968, respectively.

Additional Information Applicable to Foreign Shareholders Only:


	The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(C) for each fund were as follows:


Fund

Real Estate Securities Fund	0.34	%
International Fund	3.93
Small Cap Growth Opportunities Fund	1.50
Small Cap Select Fund	0.00
Small Cap Value Fund	0.91
Small-Mid Cap Core Fund	0.00
Mid Cap Growth Opportunities Fund	1.99
Mid Cap Value Fund	3.20
Large Cap Growth Opportunities Fund	0.00
Large Cap Select Fund	7.42
Large Cap Value Fund	1.45
Balanced Fund	43.45
Equity Income Fund	1.80

136 First American Funds Annual Report 2006


	The percentage of ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(C) for each fund were as follows:


Fund

Real Estate Securities Fund	80.49	%
International Fund	0.00
Small Cap Growth Opportunities Fund	100.00
Small Cap Select Fund	100.00
Small Cap Value Fund	86.55
Small-Mid Cap Core Fund	0.00
Mid Cap Growth Opportunities Fund	100.00
Mid Cap Value Fund	22.25
Large Cap Growth Opportunities Fund	0.00
Large Cap Select Fund	73.31
Large Cap Value Fund	7.92
Balanced Fund	0.00
Equity Income Fund	5.79

HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND PROXY VOTING RECORD

A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (1) without charge upon request by calling 800.677.FUND; (2) at www.firstamericanfunds.com; and (3) on the U.S. Securities and Exchange Commission’s website at www.sec.gov.

FORM N-Q HOLDINGS INFORMATION

Each fund is required to file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-Q. The funds’ Forms N-Q are available (1) without charge upon request by calling 800.677.FUND and (2) on the Securities and Exchange Commission’s website at www.sec.gov. In addition, you may review and copy the funds’ Forms N-Q at the Commission’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330.

QUARTERLY PORTFOLIO HOLDINGS


	Each fund will make portfolio holdings information publicly available by posting the information at www.firstamericanfunds.com on a quarterly basis. The funds will attempt to post such information within 10 days of the calendar quarter-end.

APPROVAL OF THE FUNDS’ INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS


	The Board of Directors of the funds (the “Board”), which is comprised entirely of independent directors, oversees the management of each fund and, as required by law, determines annually whether to renew the funds’ advisory agreement with FAF Advisors, Inc. (“FAF Advisors”). In addition to determining whether to renew the Agreement with FAF Advisors, the Board also is responsible for determining whether to approve sub-advisory agreements for the funds.

	At a meeting on May 1-3, 2006, the Board considered information relating to the funds’ investment advisory agreement with FAF Advisors (the “Agreement”) and, with respect to the International Fund, information relating to the sub-advisory agreement between FAF Advisors and J.P. Morgan Investment Management Inc. (“JP Morgan”) (the “Sub-Advisory Agreement”). In advance of the meeting, the Board received materials relating to the Agreement and the Sub-Advisory Agreement, and had the opportunity to ask questions and request further information in connection with their consideration. At a subsequent meeting on June 19-21, 2006, the Board concluded its consideration of and approved the Agreement and the Sub-Advisory Agreement through June 30, 2007.

	Although the Agreement, which is with First American Investment Funds, Inc., relates to all of the funds, the Board separately considered and approved the Agreement with respect to each fund. In considering the Agreement, the Board, advised by independent legal counsel, reviewed and considered the factors it deemed relevant, including: (1) the nature, quality and extent of FAF Advisors’ services to the fund, (2) the investment performance of the fund, (3) the profitability of FAF Advisors related to the fund, including an analysis of FAF Advisors’ cost of providing services and comparative expense information, (4) whether economies of scale may be realized as the fund grows and whether fee levels are adjusted to enable fund investors to share in these potential economies of scale, and (5) other benefits that accrue to FAF Advisors

First American Funds Annual Report 2006 137

NOTICE TO SHAREHOLDERS continued


	through its relationship with the funds. In its deliberations, the Board did not identify any single factor which alone was responsible for the Board’s decision to approve the Agreement.

	Before approving the Agreement and the Sub-Advisory Agreement, the Board met in executive session with its independent counsel on numerous occasions to consider the materials provided by FAF Advisors and the terms of the Agreement and the Sub-Advisory Agreement. Based on its evaluation of those materials, the Board concluded that the Agreement is fair and in the interests of the shareholders of each fund and that the Sub-Advisory Agreement is fair and in the interests of the shareholders of the International Fund. In reaching its conclusions, the Board considered the following:

Nature, Quality and Extent of Investment Advisory Services


	The Board examined the nature, quality and extent of the services provided by FAF Advisors to each fund, and the nature, quality and extent of the services provided by JP Morgan to the International Fund.

	For each fund other than the International Fund which is sub-advised by JP Morgan, the Board reviewed FAF Advisors’ key personnel who provide investment management services to the fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for the fund within the framework of the fund’s investment policies and restrictions, subject to review by the Board. The Board further considered that FAF Advisors’ duties with respect to each fund include (i) investment research and security selection, (ii) adherence to (and monitoring compliance with) the fund’s investment policies and restrictions and the Investment Company Act of 1940, and (iii) monitoring the performance of the various organizations providing services to the fund, including the fund’s distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the type of services customarily provided by investment advisors in the fund industry.

	With respect to the International Fund, the Board examined the nature, quality and extent of the services provided by JP Morgan and reviewed JP Morgan’s key personnel who provide investment management services to the fund. The Board noted that, under the Sub-Advisory Agreement, JP Morgan has the authority and responsibility to make and execute investment decisions for the fund within the framework of the fund’s investment policies and restrictions, subject to the supervision of FAF Advisors and review by the Board. The Board further considered that JP Morgan’s duties with respect to the International Fund include investment research and stock selection and adherence to the fund’s investment policies and restrictions. The Board noted that, under the Agreement, FAF Advisors is responsible for monitoring the performance of JP Morgan as well as various organizations providing services to the International Fund, including the fund’s distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by JP Morgan under the Sub-Advisory Agreement are the type of services customarily provided by investment advisors in the fund industry.

	The Board considered compliance reports about FAF Advisors and JP Morgan from the fund’s Chief Compliance Officer (CCO).

	Based on the foregoing, the Board concluded that (i) each fund is likely to benefit from the nature, extent and quality of the services provided by FAF Advisors under the Agreement and (ii) the International Fund is likely to benefit from the nature, extent and quality of the services provided by JP Morgan under the Sub-Advisory Agreement.

Investment Performance of the Funds


	The Board considered the performance of each fund, including how the fund performed versus the median performance of a group of comparable funds selected by an independent data service (the “performance universe”) and how the fund performed versus its benchmark index. The performance periods considered by the Board ended on January 31, 2006.

	Balanced Fund. The Board considered that the fund significantly outperformed both its benchmark index and its performance universe for the one- and three-year periods. Though the fund underperformed for the five- and ten-year periods, the Board noted that the fund’s current management team has been in place only since 2004. Thus, the underperformance for these longer time periods is attributable to a former management team. The Board concluded that, in light of the fund’s good relative performance over the one-and three-year periods, it would be in the interest of the fund and its shareholders to renew the Agreement.

	Equity Income Fund. The Board considered that the fund’s performance was comparable to or exceeded that of its benchmark index for the one-, five- and ten-year periods, though it underperformed the benchmark for the three-year period. The fund’s performance, although slightly above the median of its performance universe for the ten-year period, was below the performance universe median for the one-, three-, and five-year periods. The Board, however, considered FAF Advisors’ assertion that the performance universe included a number of funds with different investment restrictions and

138 First American Funds Annual Report 2006


	styles than those of the fund. In light of this, the Board also considered the fund’s performance to the performance of a custom performance universe, which FAF Advisors represented provided a more meaningful comparison. The Board noted that the fund’s performance compared favorably to this custom performance universe for the one- three- and ten-year periods. The Board concluded that, in light of the fund’s positive performance vis-à-vis the custom performance universe and its generally competitive performance vis-à-vis its benchmark index, it would be in the interest of the fund and its shareholders to renew the Agreement.

	International Fund. The Board noted that the fund has underperformed both its benchmark and its performance universe for the one-, three-, five- and ten-year periods. The Board considered, however, that the fund’s sub-adviser, JP Morgan, did not begin managing the fund until December 2004 and that JP Morgan, therefore, is not responsible for most of the performance record reviewed by the Board. The Board concluded that, in light of JP Morgan’s limited tenure managing the fund, it would be in the interest of the fund and its shareholders to renew the Agreement and the Sub-Advisory Agreement and to closely monitor the performance record that JP Morgan continues to develop as sub-adviser to the fund.

	Large Cap Growth Opportunities Fund. The Board considered that the fund’s performance was comparable to or better than its benchmark for the one-, three-and five-year periods, and comparable to or better than its performance universe for the three- and five-year periods (although the fund underperformed its performance universe for the one-year period). While the fund underperformed both its performance universe and its benchmark for the ten-year period, the Board noted that the underperformance was attributable primarily to a former management team. The Board concluded that, in light of the fund’s competitive long-term performance under the current portfolio management team, it would be in the interest of the fund and its shareholders to renew the Agreement.

	Large Cap Select Fund. The Board considered that the fund outperformed its performance universe for the one-and three-year periods. The Board also noted that the fund outperformed its benchmark for the one-year period, though it slightly underperformed the benchmark for the three-year period. The Board concluded that, in light of the fund’s outperformance of the performance universe and one-year outperformance of its benchmark, it would be in the interest of the fund and its shareholders to renew the Agreement.

	Large Cap Value Fund. The Board noted that the fund outperformed its performance universe for the one- and three-year periods, although it underperformed its benchmark for those periods. The Board also noted that the fund’s performance was below that of its performance universe and its benchmark for the five- and ten-year periods. The Board, however, considered the management transitions that have occurred during the past two years. The Board concluded that, in light of these transitions and the fund’s recent strong performance compared to that of its performance universe, it would be in the interest of the fund and its shareholders to renew the Agreement.

	Mid Cap Growth Opportunities Fund. The Board considered that the fund outperformed its performance universe for the one-, three-, five- and ten-year periods. The Board also noted that the fund outperformed or performed competitively versus its benchmark for the same periods. The Board concluded that, in light of the fund’s strong performance, it would be in the interest of the fund and its shareholders to renew the Agreement.

	Mid Cap Value Fund. The Board considered that the fund outperformed its performance universe for the one-, three-, and five-year periods, though it underperformed its benchmark for those periods. While the fund underperformed both its benchmark index and its performance universe for the ten-year period, the Board noted that this underperformance could be attributed primarily to a former management team. The Board concluded that, in light of the fund’s strong performance relative to its performance universe, it would be in the interest of the fund and its shareholders to renew the Agreement.

	Real Estate Securities Fund. The Board considered that the fund outperformed its benchmark index and its performance universe for the one-, three-, five-, and ten-year periods. The Board concluded that, in light of this performance, it would be in the interest of the fund and its shareholders to renew the Agreement.

	Small Cap Growth Opportunities Fund. The Board noted that the fund outperformed or performed competitively versus its benchmark and performance universe for the one-, three- and ten-year periods. The Board also considered that the fund outperformed its benchmark for the five-year period, though it underperformed the performance universe for that period. At the request of FAF Advisors, the Board also considered the fund’s performance in relation to a universe of small-cap growth funds, rather than the universe of small-cap core funds provided by the independent data service. FAF Advisors represented to the Board that the small-cap growth universe is a more meaningful source of comparative performance data, given that the current portfolio management team pursues a growth style. When compared to this small-cap growth universe, the fund outperformed for all periods. The Board concluded that, in light of the fund’s competitive performance versus that of its benchmark and the small-cap growth universe, it would be in the interest of the fund and its shareholders to renew the Agreement.

First American Funds Annual Report 2006 139

NOTICE TO SHAREHOLDERS continued


	Small Cap Select Fund. The Board noted that the fund outperformed or performed competitively in relation to its benchmark and performance universe for the one-, three-, five- and ten-year periods. The Board concluded that, in light of the fund’s strong performance, it would be in the interest of the fund and its shareholders to renew the Agreement.

	Small Cap Value Fund. The Board noted that the fund outperformed or performed competitively in relation to its performance universe for the one-, three-, five-, and ten-year periods. The Board also noted that the fund performed competitively against its benchmark for the one-year period, though it underperformed the benchmark for the other periods. At the request of FAF Advisors, the Board also considered the fund’s performance in relation to a universe of small-cap value funds, rather than the universe of small-cap core funds provided by the independent data service. FAF Advisors represented that the current portfolio management team pursues a value rather than a core style in managing the fund. When compared to the small-cap value universe the fund outperformed that universe for the one- and three- year periods (though it underperformed for the five- and ten-year periods). The Board concluded that, in light of the fund’s competitive recent performance versus that of the benchmark, the performance universe and the custom universe, it would be in the interest of the Fund and its shareholders to renew the Agreement.

	Small-Mid Cap Core Fund. The Board noted that the fund underperformed its benchmark and its performance universe for the one-, three-, five- and ten-year periods. The Board considered, however, that the fund was recently converted from a technology fund to a small-mid cap core fund, with a different management team and different investment objectives and policies. The Board also considered that, as a result, the fund was operated as a small-mid cap core fund for only the last four months of each period. The fund’s total return for the period from September 30, 2005 to January 31, 2006, was 11.67% for the Class A shares and 11.59% for the Class Y shares. This compares to returns of 9.01% for the fund’s benchmark and 9.16% for its performance universe for the same period. In light of the fund’s very short history of operating as a small-mid cap core fund and its strong performance during this time period, the Board concluded it would be in the interest of the fund and its shareholders to renew the Agreement and to continue to monitor the performance record developed by the fund in its new form.

Costs of Services and Profits Realized by FAF Advisors


	The Board reviewed FAF Advisors’ estimated costs in serving as the funds’ investment manager, including the costs associated with the personnel and systems necessary to manage each fund. The Board also considered the reported profitability of FAF Advisors and its affiliates resulting from their relationship with each fund. For each fund, the Board reviewed fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other advisers. The Board found that while the management fees for FAF Advisors’ institutional separate accounts are lower than the funds’ management fees, the funds receive additional services from FAF Advisors that separate accounts do not receive.

	Using information provided by an independent data service, the Board also evaluated each fund’s advisory fee compared to the median advisory fee for other mutual funds similar in size, character and investment strategy, and each fund’s expense ratio after waivers compared to the median expense ratio, after waivers, of comparable funds. In connection with its review of fund fees and expenses, the Board asked FAF Advisors to articulate its pricing philosophy. FAF Advisors responded that it attempts generally to maintain each fund’s total operating expenses at a level that approximates its peer group median expense ratio. In addition, FAF Advisors noted that it intends to waive its investment advisory fees to the extent necessary to maintain the funds’ total expense ratios at levels generally in line with their respective peer groups. Consistent with this pricing philosophy, and after discussions with the Board, FAF Advisors proposed certain changes to the expense caps of the International and Small-Mid Cap Core Funds, as discussed in more detail below, and agreed to maintain the other expense caps at their current levels through June 30, 2007.

	Further detail considered by the Board regarding the advisory fees and expense ratios of each fund is set forth below:

	Balanced Fund. The Board considered that, after waivers, the fund’s advisory fee and expense ratio are lower than the peer group median. The Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided.

	Equity Income Fund. The Board considered that the fund’s advisory fee is close to, though slightly higher than, the peer group median. The Board also noted that the fund’s expense ratio, after annualizing the effect of a July 1, 2005 elimination of the fee waiver, is consistent with FAF Advisors’ pricing philosophy. The Board concluded that the advisory fee and expense ratio are reasonable in light of the services provided.

	International Fund. The Board noted that the fund’s advisory fee and expense ratio, after waivers, are higher than those of its peer group median. To bring the fund’s total expense ratio more closely in line with that of its peer group median, the Board

140 First American Funds Annual Report 2006


	and FAF Advisors agreed to cap total fund expenses at 1.49% for Class A shares. The Board noted that, although the fund’s advisory fee will continue to be higher than its peer group median, the expense cap change would bring the fund to within 10 basis points of the peer group median expense ratio of 1.39%. The Board concluded that the fund’s advisory fee and expense ratio, after taking into account the expense cap change, are reasonable in light of the services provided.

	Large Cap Growth Opportunities Fund. The Board considered that the fund’s advisory fee is lower than the peer group median. The Board also noted that the fund’s expense ratio, after annualizing the effect of a July 1, 2005 elimination of the fee waiver, remains below the peer group median and is consistent with FAF Advisors’ pricing philosophy. The Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided.

	Large Cap Select Fund. The Board considered that the fund’s advisory fee is lower than the peer group median. The Board also noted that the fund’s expense ratio, after annualizing the effect of a July 1, 2005 elimination of the fee waiver, remains below the peer group median and is consistent with FAF Advisors’ pricing philosophy. The Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided.

	Large Cap Value Fund. The Board considered that the fund’s advisory fee is close to, though slightly higher than, the peer group median. The Board also noted that the fund’s expense ratio, after annualizing the effect of a July 1, 2005 elimination of the fee waiver, is consistent with FAF Advisors’ pricing philosophy. The Board concluded that the advisory fee and expense ratio are reasonable in light of the services provided.

	Mid Cap Growth Opportunities Fund. The Board considered that the fund’s advisory fee is close to, though slightly higher than, the peer group median. The Board also noted that the fund’s expense ratio, after annualizing the effect of a July 1, 2005 elimination of the fee waiver, remains below the peer group median and is consistent with FAF Advisors’ pricing philosophy. The Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided.

	Mid Cap Value Fund. The Board considered that the fund’s advisory fee is lower than the peer group median. The Board also noted that the fund’s expense ratio, after annualizing the effect of a July 1, 2005 elimination of the fee waiver, remains below the peer group median and is consistent with FAF Advisors’ pricing philosophy. The Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided.

	Real Estate Securities Fund. The Board considered that the fund’s advisory fee is lower than the peer group median. The Board also noted that the fund’s expense ratio, after annualizing the effect of a July 1, 2005 elimination of the fee waiver, remains below the peer group median and is consistent with FAF Advisors’ pricing philosophy. The Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided.

	Small Cap Growth Opportunities Fund. The Board considered that although the fund’s advisory fee, after waivers, is higher than the peer group median, the fund’s expense ratio, after annualizing the effect of a 1.47% expense cap that went into effect July 1, 2005, is lower than the peer group median and is consistent with FAF Advisors’ pricing philosophy. The Board concluded that the fund’s advisory fee and expense ratio, after taking into account the expense cap, are reasonable in light of the services provided.

	Small Cap Select Fund. The Board considered that the fund’s advisory fee is lower than the peer group median. The Board also noted that the fund’s expense ratio, after annualizing the effect of a July 1, 2005 elimination of the fee waiver, remains below the peer group median and is consistent with FAF Advisors’ pricing philosophy. The Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided.

	Small Cap Value Fund. The Board considered that the fund’s advisory fee is lower than the peer group median. The Board also noted that the fund’s expense ratio, after annualizing the effect of a July 1, 2005 elimination of the fee waiver, remains below the peer group median and is consistent with FAF Advisors’ pricing philosophy. The Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided.

	Small-Mid Cap Core Fund. The Board considered that the fund’s advisory fee and expense ratio, after waivers, are lower than the peer group medians. The Board also considered FAF Advisors’ commitment to cap the expense ratio at 1.48% (less than 1 basis point above the peer group median) for the fund’s Class A shares (and parallel caps for the fund’s other share classes) should the fund’s expenses exceed that level at any time through June 30, 2007. The Board concluded that the fund’s advisory fee and expense ratio, after taking into account waivers, are reasonable in light of the services provided.

Economies of Scale in Providing Investment Advisory Services


	The Board considered whether each fund’s investment advisory fee reflects the potential for economies of scale for the benefit of fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely

First American Funds Annual Report 2006 141

NOTICE TO SHAREHOLDERS continued

increase somewhat as assets grow over time. The Board considered that, although most funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The median total expense ratio of a fund’s peer group will reflect the effect of any breakpoints in the advisory fee schedules of the funds in that group. Therefore, by capping a fund’s total expense ratio at a level close to the median, fund shareholders should receive the benefit of any breakpoints in the comparable funds’ advisory fee schedules. In light of FAF Advisors’ commitment to keep total fund expenses competitive, the Board concluded that it would be reasonable and in the best interest of each fund and its shareholders to renew the Agreement.

Other Benefits to FAF Advisors


	In evaluating the benefits that accrue to FAF Advisors through its relationship with the funds, the Board noted that FAF Advisors and certain of its affiliates serve the funds in various capacities, including as advisor, administrator, transfer agent, distributor, custodian and securities lending agent, and receive compensation from the funds in connection with providing services to the funds. The Board considered that each service provided to the funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law.

	The Board also considered FAF Advisors’ use of the funds’ portfolio brokerage transactions to obtain research. The Board concluded, based on its own review and on representations of FAF Advisors and the CCO, that FAF Advisors’ use of “soft” commission dollars was consistent with regulatory requirements.

	After full consideration of these and other factors, the Board concluded that approval of the Agreement was in the best interest of each fund and its shareholders.

142 First American Funds Annual Report 2006

Directors and Officers of the Funds

Independent Directors

Number of

Other

Position(s)

Term of Office

Principal

Portfolios in Fund

Directorships

Name, Address, and

Held

and Length of

Occupation(s)

Complex Overseen by

Held by

Year of Birth

with Fund

Time Served

During Past 5 Years

Director

Director †

Benjamin R. Field III
P.O. Box 1329
Minneapolis, MN
55440-1329
(1938)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003

Retired; Senior Financial Advisor, Bemis Company, Inc. from May 2002 through June 2004; Senior Vice President, Chief Financial Officer & Treasurer, Bemis Company, Inc., through April 2002

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

Roger A. Gibson
P.O. Box 1329
Minneapolis, MN
55440-1329
(1946)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 1997

Director, Charterhouse Group, Inc., a private equity firm, since October 2005; Vice President and Chief Operating Officer, Cargo-United Airlines, from July 2001 through July 2004

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

Victoria J. Herget
P.O. Box 1329
Minneapolis, MN 55440-1329
(1951)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003

Investment consultant and non-profit board member since 2001; Managing Director of Zurich Scudder Investments through 2001

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

John P. Kayser
P.O. Box 1329
Minneapolis, MN
55440-1329
(1949)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 2006

Retired; Principal from 1983 to 2004 and Chief Financial Officer and Chief Administrative Officer from 1988 to 2002, William Blair & Company, LLC

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

Leonard W. Kedrowski
P.O. Box 1329
Minneapolis, MN 55440-1329
(1941)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since November 1993

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

Richard K. Riederer
P.O. Box 1329
Minneapolis, MN 55440-1329
(1944)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001

Owner and CEO, RKR Consultants, Inc. and non-profit board member since 2005; Director, President and Chief Executive Officer, Weirton Steel Corporation through 2001

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

Cleveland Cliffs Inc. (a producer of iron ore pellets)

Joseph D. Strauss P.O. Box 1329 Minneapolis, MN 55440-1329
(1940)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 1991

Attorney at law; Owner, and President, Strauss Management Company, a Minnesota holding company for various organizational management business ventures; Owner, Chairman, and Chief Executive Officer, Community Resource Partnerships, Inc., a strategic planning, operations management, government relations, transportation planning, and public relations organization; Owner, Chairman, and Chief Executive Officer, Excensus^tm, LLC, a strategic demographic planning and application development firm since 2001

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

First American Funds Annual Report 2006 143

NOTICE TO SHAREHOLDERS continued

Independent Directors

Number of

Other

Position(s)

Term of Office

Principal

Portfolios in Fund

Directorships

Name, Address, and

Held

and Length of

Occupation(s)

Complex Overseen by

Held by

Year of Birth

with Fund

Time Served

During Past 5 Years

Director

Director †

Virginia L. Stringer
P.O. Box 1329
Minneapolis, MN 55440-1329
(1944)

Chair; Director

Governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc., a management consulting firm; Executive Consultant to State Farm Insurance Company through 2003

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None

James M. Wade
P.O. Box 1329
Minneapolis, MN 55440-1329
(1943)

Director

Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001

Owner and President, Jim Wade Homes, a homebuilding company

First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios

None


†	Includes only directorships in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act or subject to the requirements of Section 15(d) of the Securities Exchange Act, or any company registered as an investment company under the Investment Company Act.

144 First American Funds Annual Report 2006


Officers

	Position(s)	Term of Office
Name, Address, and	Held	and Length of
Year of Birth	with Funds	Time Served	Principal Occupation(s) During Past 5 Years

Thomas S. Schreier, Jr. FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1962)*	President	Re-elected by the Board annually; President of FAIF since February 2001	Chief Executive Officer of FAF Advisors, Inc.

Mark S. Jordahl FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1960)*	Vice President – Investments	Re-elected by the Board annually; Vice President – Investments of FAIF since September 2001	Chief Investment Officer of FAF Advisors, Inc.

Jeffery M. Wilson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1956)*	Vice President – Administration	Re-elected by the Board annually; Vice President – Administration of FAIF since March 2000	Senior Vice President of FAF Advisors, Inc.

Charles D. Gariboldi, Jr. FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1959)*	Treasurer	Re-elected by the Board annually; Treasurer of FAIF since October 2004	Treasurer, FAF Advisors, Inc., since October 2004; prior thereto, Vice President of Investment Accounting and Fund Treasurer for Thrivent Financial for Lutherans

Jill M. Stevenson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1965)*	Assistant Treasurer	Re-elected by the Board annually; Assistant Treasurer of FAIF since September 2005	Assistant Treasurer, FAF Advisors, Inc., since September 2005; prior thereto, Director, Senior Project Manager, FAF Advisors, Inc. from May 2003 to September 2005; prior to that, Vice President, Director of Operations, Paladin Investment Associates, LLC

David H. Lui FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1960)*	Chief Compliance Officer	Re-elected by the Board annually; Chief Compliance Officer of FAIF since March 2005	Chief Compliance Officer for First American Funds and FAF Advisors, Inc., since March 2005; prior thereto, Chief Compliance Officer, Franklin Advisors, Inc. and Chief Compliance Counsel, Franklin Templeton Investments from March 2004 to March 2005; prior to that Vice President, Charles Schwab & Co,. Inc.

Jason K. Mitchell FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1976)*	Anti-Money Laundering Officer	Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since September 2006	Compliance Manager, FAF Advisors, Inc., since June 2006; prior to that, Compliance Analyst, FAF Advisors, Inc. from October 2004 to June 2006; prior to that, Senior Systems Helpdesk Analyst, Wachovia Retirement Services from November 2002 to October 2004; prior to that, Senior Retirement Plan Specialist, PFPC, Inc.

Kathleen L. Prudhomme FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1953)*	Secretary	Re-elected by the Board annually; Secretary of FAIF since December 2004; prior thereto, Assistant Secretary of FAIF since September 1998 through December 2004	Deputy General Counsel, FAF Advisors, Inc., since November 2004; prior thereto, Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm

Brett L. Agnew FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1971)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004	Counsel, FAF Advisors, Inc., since August 2004; prior thereto, Senior Counsel, Thrivent Financial for Lutherans

James D. Alt Dorsey & Whitney LLP 50 South Sixth Street Suite 1500 Minneapolis, MN 55402 (1951)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004; prior thereto, Secretary of FAIF since June 2002; Assistant Secretary of FAIF from September 1998 through June 2002	Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm

James R. Arnold U.S. Bancorp Fund Services, LLC 615 E. Michigan Street Milwaukee, WI 53202 (1957)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since June 2003	Vice President, U.S. Bancorp Fund Services, LLC, since March 2002; prior thereto, Senior Administration Services Manager, UMB Fund Services, Inc.

First American Funds Annual Report 2006 145

NOTICE TO SHAREHOLDERS continued


Officers

	Position(s)	Term of Office
Name, Address, and	Held	and Length of
Year of Birth	with Funds	Time Served	Principal Occupation(s) During Past 5 Years

Richard J. Ertel FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1967)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since June 2006 and from June 2003 through August 2004	Counsel, FAF Advisors, Inc., since May 2006; prior thereto, Counsel, Ameriprise Financial Services, Inc. from September 2004 to May 2006; prior to that, Counsel, FAF Advisors, Inc. from May 2003 to August 2004; prior to May 2003, Associate Counsel, Hartford Life and Accident Insurance Company

Douglas G. Hess U.S. Bancorp Fund Services, LLC 615 E. Michigan Street Milwaukee, WI 53202 (1967)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since September 2001	Vice President, U.S. Bancorp Fund Services, LLC since November 2002; prior thereto, Assistant Vice President, Fund Compliance Administrator, U.S. Bancorp Fund Services, LLC


*	Messrs. Schreier, Jordahl, Wilson, Gariboldi, Lui, Mitchell, Agnew and Ertel, Ms. Stevenson, and Ms. Prudhomme are each officers and/or employees of FAF Advisors, Inc., which serves as investment adviser and administrator for FAF. Messrs. Hess and Arnold are officers of U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which serves as Transfer Agent for FAIF.

146 First American Funds Annual Report 2006

(This page intentionally left blank.)

Board of Directors First American Investment Funds, Inc.


	Virginia Stringer

	Chairperson of First American Investment Funds, Inc.
	Governance Consultant; former Owner and President of Strategic Management Resources, Inc.

	Benjamin Field III

	Director of First American Investment Funds, Inc.
	Retired; former Senior Financial Advisor, Senior Vice President, Chief Financial Officer, and Treasurer of Bemis Company, Inc.

	Roger Gibson

	Director of First American Investment Funds, Inc.
	Director of Charterhouse Group, Inc.

	Victoria Herget

	Director of First American Investment Funds, Inc.
	Investment Consultant; former Managing Director of Zurich Scudder Investments

	John Kayser
	Director of First American Investment Funds, Inc.
	Retired; former Principal, Chief Financial Officer, and Chief Administrative Officer of William Blair & Company, LLC.

	Leonard Kedrowski

	Director of First American Investment Funds, Inc.
	Owner and President of Executive and Management Consulting, Inc.

	Richard Riederer

	Director of First American Investment Funds, Inc.
	Owner and CEO of RKR Consultants, Inc.

	Joseph Strauss

	Director of First American Investment Funds, Inc.
	Owner and President of Strauss Management Company

	James Wade

	Director of First American Investment Funds, Inc.
	Owner and President of Jim Wade Homes

	First American Investment Funds’ Board of Directors is comprised entirely of independent directors.

Direct fund correspondence to:

First American Funds

P.O. Box 1330

Minneapolis, MN 55440-1330


This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Further, there is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers only through the year ended October 31, 2006. The portfolio managers’ views are subject to change at any time based upon market or other conditions.

This report is for the information of shareholders of the First American Investment Funds, Inc. It may also be used as sales literature when preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, and charges and expenses of the funds. Read the prospectus carefully before investing.

The figures in this report represent past performance and do not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

INVESTMENT ADVISOR


	FAF Advisors, Inc.
	800 Nicollet Mall
	Minneapolis, Minnesota 55402

ADMINISTRATOR


	FAF Advisors, Inc.
	800 Nicollet Mall
	Minneapolis, Minnesota 55402

TRANSFER AGENT


	U.S. Bancorp Fund Services, LLC
	615 East Michigan Street
	Milwaukee, Wisconsin 53202

CUSTODIAN


	U.S. Bank National Association
	60 Livingston Avenue
	St. Paul, Minnesota 55101

DISTRIBUTOR


	Quasar Distributors, LLC
	615 East Michigan Street
	Milwaukee, Wisconsin 53202

INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM


	Ernst & Young LLP
	220 South Sixth Street
	Suite 1400	��
	Minneapolis, Minnesota 55402

COUNSEL


	Dorsey & Whitney LLP
	50 South Sixth Street
	Suite 1500
	Minneapolis, Minnesota 55402

First American Funds
P.O. Box 1330
Minneapolis, MN 55440-1330

0309-06 12/2006 AR-EQUITY

Item 2—Code of Ethics

(a) The registrant has adopted a code of ethics that applies to its Principal Executive Officer and Principal Financial Officer.

(b) During the period covered by this report, there were no amendments to the provisions of the registrant’s code of ethics that apply to the registrant’s Principal Executive Officer and Principal Financial Officer and that relate to any element of the code of ethics definition enumerated in this Item.

(c) During the period covered by this report, the registrant did not grant any waivers, including implicit waivers, from any provisions of its code of ethics.

(d) The registrant undertakes to furnish a copy of its code of ethics to any person upon request, without charge, by calling 1-800-677-3863.

Item 3—Audit Committee Financial Expert

The registrant’s Board of Directors has determined that Leonard W. Kedrowski, Benjamin R. Field III, John P. Kayser, and Richard K. Riederer, members of the registrant’s Audit Committee, are each an “audit committee financial expert” and are “independent,” as these terms are defined in this Item.

Item 4—Principal Accountant Fees and Services

(a) Audit Fees — Ernst & Young LLP (“E&Y”) billed the registrant audit fees totaling $1,066,262 in the fiscal year ended October 31, 2006, $74,027 in the fiscal period ended October 31, 2005, and $608,819 in the fiscal year ended September 30, 2005, including fees associated with the annual audit, SEC Rule 17f-2 security count filings and filings of the registrant’s Form N-CSR.

(b) Audit-Related Fees — E&Y billed the registrant audit-related fees totaling $3,288 in the fiscal year ended October 31, 2006, $184 in the fiscal period ended October 31, 2005, and $13,759 in the fiscal year ended September 30, 2005, including fees associated with the semi-annual review of fund disclosures.

(c) Tax Fees — E&Y billed the registrant fees of $160,419 in the fiscal year ended October 31, 2006, $10,628 in the fiscal period ended October 31, 2005, and $105,382 in the fiscal year ended September 30, 2005, for tax services, including tax compliance, tax advice and tax planning. Tax compliance, tax advice and tax planning services primarily related to preparation of original and amended tax returns, timely RIC qualification reviews, and tax distribution analysis and planning.

(d) All Other Fees — There were no fees billed by E&Y for other services to the registrant during the fiscal year ended October 31, 2006, the fiscal period ended October 31, 2005, and the fiscal year ended September 30, 2005.

(e)(1) The audit committee’s pre-approval policies and procedures pursuant to paragraph (c)(7) of Rule 2-01 of Regulation S-X are set forth below:

Audit Committee policy regarding pre-approval of services provided by the Independent Auditor

The Audit Committee of the First American Funds (“Committee”) has responsibility for ensuring that all services performed by the independent audit firm for the funds do not impair the firm’s independence. This review is intended to provide reasonable oversight
without removing management from its responsibility for day-to-day operations. In this regard, the Committee should:

· Understand the nature of the professional services expected to be provided and their impact on auditor independence and audit quality

· Examine and evaluate the safeguards put into place by the Company and the auditor to safeguard independence

· Meet quarterly with the partner of the independent audit firm

· Consider approving categories of service that are not deemed to impair independence for a one-year period.

It is important that a qualitative rather than a mere quantitative evaluation be performed by the Committee in discharging its responsibilities.

Policy for Audit and Non-Audit Services Provided to the Funds

On an annual basis, the Committee will review and consider whether to pre-approve the financial plan for audit fees as well as categories of audit-related and non-audit services that may be performed by the funds’ independent audit firm directly for the funds. At least annually, the Committee will receive a report from the independent audit firm of all audit and non-audit services, which were approved during the year.

The engagement of the independent audit firm for any non-audit service requires the written pre-approval of the Treasurer of the funds and all non-audit services performed by the independent audit firm will be disclosed in the required SEC periodic filings.

In connection with the Committee review and pre-approval responsibilities, the review by the Committee will consist of the following:

Audit Services

The categories of audit services and related fees to be reviewed and considered for pre-approval annually by the Committee or its delegate include the following:

· Annual fund financial statement audits

· Seed audits (related to new product filings, as required)

· SEC and regulatory filings and consents

Audit-related Services

In addition, the following categories of audit-related services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.

· Accounting consultations

· Fund merger support services

· Other accounting related matters

· Agreed Upon Procedure Reports

· Attestation Reports

· Other Internal Control Reports

Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an
estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis.

Tax Services

The following categories of tax services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.

· Tax compliance services related to the filing or amendment of the following:

· Federal, state and local income tax compliance, and

· Sales and use tax compliance

· Timely RIC qualification reviews

· Tax distribution analysis and planning

· Tax authority examination services

· Tax appeals support services

· Accounting methods studies

· Fund merger support services

· Tax consulting services and related projects

Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis.

Other Non-audit Services

The SEC auditor independence rules adopted in response to the Sarbanes-Oxley Act specifically allow certain non-audit services. Because of the nature of these services, none of these services may be commenced by the independent audit firm without the prior approval of the Committee. The Committee may delegate this responsibility to one or more of the Committee members, with the decisions presented to the full Committee at the next scheduled meeting.

Proscribed Services

In accordance with SEC rules on independence, the independent audit firm is prohibited from performing services in the following categories of non-audit services:

· Management functions

· Accounting and bookkeeping services

· Internal audit services

· Financial information systems design and implementation

· Valuation services supporting the financial statements

· Actuarial services supporting the financial statements

· Executive recruitment

· Expert services (e.g., litigation support)

· Investment banking

Policy for Pre-approval of Non-Audit Services Provided to Other Entities within the Investment Company Complex

The Committee is also responsible for pre-approving certain non-audit services provided to FAF Advisors, Inc., U.S. Bank N.A., Quasar Distributors, U.S. Bancorp Fund Services, LLC and any other entity under common control with FAF Advisors, Inc., that provides ongoing services to the funds. The only non-audit services provided to these entities which require pre-approval are those services that relate directly to the operations and financial reporting of the funds.

Although the Committee is not required to pre-approve all services provided to FAF Advisors, Inc. and other affiliated service providers, the Committee will annually receive a report from the independent audit firm on the aggregate fees for all services provided to U.S. Bancorp and affiliates.

(e)(2) All of the services described in paragraphs (b) through (d) of this Item 4 were pre-approved by the audit committee.

(f) All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal year-end were performed by the principal accountant’s full-time, permanent employees.

(g) The aggregate non-audit fees billed by E&Y to the registrant, the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant, totaled $163,707 in the fiscal year ended October 31, 2006, $10,812 in the fiscal period ended October 31, 2005, and $144,841 in the fiscal year ended September 30, 2005.

(h) The registrant’s audit committee has determined that the provision of non-audit services to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved is compatible with maintaining E&Y’s independence.

Item 5—Audit Committee of Listed Registrants

Not applicable.

Item 6—Schedule of Investments

The schedule is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7—Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8—Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9—Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 10—Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this item.

Item 11—Controls and Procedures

(a) The registrant’s Principal Executive Officer and Principal Financial Officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the date of this filing and have concluded that the registrant’s disclosure controls and procedures
were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported timely.

(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial
reporting.

Item 12—Exhibits

(a)(1) Not applicable. Registrant’s code of ethics is provided to any person upon request without charge.

(a)(2) Certifications of the Principal Executive Officer and Principal Financial Officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act are filed as exhibits hereto.

(a)(3) Not applicable.

(b) Certifications of the Principal Executive Officer and Principal Financial Officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act are filed as exhibits hereto.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

First American Investment Funds, Inc.


By:		/s/ Thomas S. Schreier, Jr.

		Thomas S. Schreier, Jr.
		President

Date: January 8, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By:		/s/ Thomas S. Schreier, Jr.

		Thomas S. Schreier, Jr.
		President

Date: January 8, 2007

By:		/s/ Charles D. Gariboldi, Jr.

		Charles D. Gariboldi, Jr.
		Treasurer

Date: January 8, 2007

Nuveen Large Cap Select Fund (FLRYX) N-CSRCertified annual shareholder report (management investment company)