(FIRST AMERICAN FUNDS LOGO)
October 28, 2008 PROSPECTUS
First American Investment Funds, Inc.
ASSET CLASS - BOND FUNDS
TAX FREE INCOME FUNDS
Class A, Class C, and Class Y Shares
ARIZONA TAX FREE FUND
CALIFORNIA TAX FREE FUND
COLORADO TAX FREE FUND
MINNESOTA TAX FREE FUND
MISSOURI TAX FREE FUND
NEBRASKA TAX FREE FUND
OHIO TAX FREE FUND
TAX FREE FUND
As with all mutual funds, the Securities and Exchange
Commission has not approved or disapproved the shares
of these funds, or determined if the information in
this prospectus is accurate or complete. Any
statement to the contrary is a criminal offense.
TABLE OF
CONTENTS
<Table>
<Caption>
FUND SUMMARIES
Objectives, Principal Investment Strategies, and Principal
Risks 2
Fund Performance
Arizona Tax Free Fund 4
California Tax Free Fund 5
Colorado Tax Free Fund 6
Minnesota Tax Free Fund 7
Missouri Tax Free Fund 8
Nebraska Tax Free Fund 9
Ohio Tax Free Fund 10
Tax Free Fund 11
Fees and Expenses 12
MORE ABOUT THE FUNDS
Investment Strategies and Other Investment Matters 15
POLICIES AND SERVICES
Purchasing, Redeeming, and Exchanging Shares 16
Managing Your Investment 25
ADDITIONAL INFORMATION
Management 27
Financial Highlights 29
FOR MORE INFORMATION Back Cover
</Table>
Please find FIRST AMERICAN FUNDS' PRIVACY POLICY inside the back cover of this
Prospectus.
Fund Summaries
Introduction
This section of the prospectus describes the objectives of the
First American Tax Free Funds, summarizes the principal
investment strategies used by each fund in trying to achieve its
objective, and highlights the risks involved with these
strategies. It also provides you with information about the
performance, fees, and expenses of the funds.
AN INVESTMENT IN THE FUNDS IS NOT A DEPOSIT OF U.S. BANK
NATIONAL ASSOCIATION AND IS NOT INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT
AGENCY.
THIS PROSPECTUS AND THE RELATED STATEMENT OF ADDITIONAL
INFORMATION (SAI) DO NOT CONSTITUTE AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY SHARES IN THE FUNDS, NOR SHALL
ANY SUCH SHARES BE OFFERED OR SOLD TO ANY PERSON IN ANY
JURISDICTION IN WHICH AN OFFER, SOLICITATION, PURCHASE, OR SALE
WOULD BE UNLAWFUL UNDER THE SECURITIES LAWS OF SUCH
JURISDICTION.
THE FUNDS MAY BE OFFERED ONLY TO PERSONS IN THE UNITED STATES.
THIS PROSPECTUS SHOULD NOT BE CONSIDERED A SOLICITATION OR
OFFERING OF FUND SHARES OUTSIDE THE UNITED STATES.
1
Prospectus - First American Tax Free Income Funds
Fund Summaries
Objectives, Principal Investment Strategies, and Principal Risks
This section summarizes the investment objectives and principal strategies and
risks of investing in First American Tax Free Funds. Each fund, except Tax Free
Fund, is referred to in this prospectus as a "state-specific fund." You will
find more specific information about each fund in the pages that follow.
INVESTMENT OBJECTIVES
The funds have the following investment objectives:
STATE-SPECIFIC FUNDS -- providing maximum current income that is exempt from
both federal income tax and from the income tax of the state specified in the
fund's name, to the extent consistent with prudent investment risk.
TAX FREE FUND -- providing maximum current income that is exempt from federal
income tax to the extent consistent with prudent investment risk.
PRINCIPAL INVESTMENT STRATEGIES
Under normal market conditions, as a fundamental policy, each fund invests at
least 80% of its net assets (plus the amount of any borrowings for investment
purposes) in municipal securities that pay interest that is exempt from federal
and, for the state-specific funds, applicable state income tax, including the
federal alternative minimum tax and, in the case of California Tax Free Fund,
Colorado Tax Free Fund, and Minnesota Tax Free Fund, the applicable state
alternative minimum tax.
Each fund normally may invest up to 20% of its net assets in taxable
obligations, including obligations the interest on which is subject to the
federal alternative minimum tax and applicable state alternative minimum tax, if
any.
Each fund may invest in:
- - "general obligation" bonds;
- - "revenue" bonds;
- - participation interests in municipal leases; and
- - zero coupon municipal securities.
Each fund invests mainly in securities that, at the time of purchase, are either
rated investment grade or are unrated and determined to be of comparable quality
by the fund's advisor. However, each fund may invest up to 20% of its total
assets in securities that, at the time of purchase, are rated lower than
investment grade or are unrated and of comparable quality (securities commonly
referred to as "high-yield" securities or "junk bonds"). If the rating of a
security is reduced or discontinued after purchase, the fund is not required to
sell the security, but may consider doing so.
Each fund will attempt to maintain the weighted average maturity of its
portfolio securities at 10 to 25 years under normal market conditions.
The fund may utilize futures contracts and options on futures contracts in an
attempt to manage market risk, credit risk and yield curve risk, and to manage
the effective maturity or duration of securities in the fund's portfolio. The
fund may not use such instruments to gain exposure to a security or type of
security that it would be prohibited by its investment restrictions from
purchasing directly.
PRINCIPAL RISKS
The price and yield of each fund will change daily due to changes in interest
rates and other factors, which means you could lose money. The principal risks
of investing in these funds are described below:
Active Management Risk. Each fund is actively managed and its performance
therefore will reflect in part the advisor's ability to make investment
decisions which are suited to achieving the fund's investment objective. Due to
its active management, a fund could underperform its benchmark or other mutual
funds with similar investment objectives.
Call Risk. Many municipal bonds may be redeemed at the option of the issuer, or
"called," before their stated maturity date. In general, an issuer will call its
bonds if they can be refinanced by issuing new bonds which bear a lower interest
rate. The funds are subject to the possibility that during periods of falling
interest rates, a municipal bond issuer will call its high-yielding bonds. A
fund would then be forced to invest the unanticipated proceeds at lower interest
rates, resulting in a decline in the fund's income.
Credit Risk. Each fund is subject to the risk that the issuers of debt
securities held by the fund will not make payments on the securities. There is
also the risk that an issuer could suffer adverse changes in financial condition
that could lower the credit quality of a security. This could lead to greater
volatility in the price of the security and in shares of the fund. Also, a
change in the credit quality rating of a bond could affect the bond's liquidity
and make it more difficult for the fund to sell. In adverse economic or other
circumstances, issuers of lower rated securities are more likely to have
difficulty making principal and interest payments than issuers of higher rated
securities. When a fund purchases unrated securities, it will depend on the
advisor's analysis of credit risk without the assessment of an independent
rating organization, such as Moody's or Standard & Poor's.
Futures Risk. The use of futures contracts exposes a fund to additional risks
and transaction costs. Risks inherent in the use of futures contracts include:
the risk that securities prices, index prices, or interest rates will not move
in the direction that
2
Prospectus - First American Tax Free Income Funds
Fund Summaries
Objectives, Principal Investment Strategies, and Principal Risks CONTINUED
the advisor anticipates; an imperfect correlation between the price of the
futures contract and movements in the prices of the securities being hedged; the
possible absence of a liquid secondary market for any particular instrument and
possible exchange imposed price fluctuation limits, either of which may make it
difficult or impossible to close out a position when desired; leverage risk,
which is the risk that adverse price movements in a futures contract can result
in a loss substantially greater than the fund's initial investment in that
futures contract; and the risk that the counterparty will fail to perform its
obligations, which could leave the fund worse off than if it had not entered
into the position. If a fund uses futures contracts and the advisor's judgment
proves incorrect, the fund's performance could be worse than if it had not used
these instruments.
High-Yield Securities Risk. Each fund may invest in high-yield securities.
Although these securities usually offer higher yields than investment grade
securities, they also involve more risk. High-yield securities may be more
susceptible to real or perceived adverse economic conditions than investment
grade securities. In addition, the secondary trading market may be less liquid.
High-yield securities generally have more volatile prices and carry more risk to
principal than investment grade securities.
Income Risk. Each fund's income could decline due to falling market interest
rates. This is because, in a falling interest rate environment, the funds
generally will have to invest the proceeds from sales of fund shares, as well as
the proceeds from maturing portfolio securities (or portfolio securities that
have been called, see "Call Risk" above), in lower-yielding securities.
Interest Rate Risk. Debt securities in the funds will fluctuate in value with
changes in interest rates. In general, debt securities will increase in value
when interest rates fall and decrease in value when interest rates rise. Longer-
term debt securities are generally more sensitive to interest rate changes. Each
fund may invest in zero coupon securities, which do not pay interest on a
current basis and which may be highly volatile as interest rates rise or fall.
Liquidity Risk. Each fund is exposed to liquidity risk because of its
investment in high-yield securities. Trading opportunities are more limited for
debt securities that have received ratings below investment grade. These
features may make it more difficult to sell or buy a security at a favorable
price or time. Consequently, these funds may have to accept a lower price to
sell a security, sell other securities to raise cash, or give up an investment
opportunity, any of which could have a negative effect on a fund's performance.
Infrequent trading may also lead to greater price volatility.
Municipal Lease Obligations Risk. Each fund may purchase participation
interests in municipal leases. These are undivided interests in a lease,
installment purchase contract, or conditional sale contract entered into by a
state or local government unit to acquire equipment or facilities. Participation
interests in municipal leases pose special risks because many leases and
contracts contain "non-appropriation" clauses that provide that the governmental
issuer has no obligation to make future payments under the lease or contract
unless money is appropriated for this purpose by the appropriate legislative
body. Although these kinds of obligations are secured by the leased equipment or
facilities, it might be difficult and time consuming to dispose of the equipment
or facilities in the event of non-appropriation, and the fund might not recover
the full principal amount of the obligation.
Non-Diversification Risk. Each fund other than Tax Free Fund is non-
diversified. A non-diversified fund may invest a larger portion of its assets in
a fewer number of issuers than a diversified fund. Because a relatively high
percentage of the fund's assets may be invested in the securities of a limited
number of issuers, the fund's portfolio may be more susceptible to any single
economic, political or regulatory occurrence than the portfolio of a diversified
fund.
Political and Economic Risks. The values of municipal securities may be
adversely affected by local political and economic conditions and developments.
Adverse conditions in an industry significant to a local economy could have a
correspondingly adverse effect on the financial condition of local issuers.
Other factors that could affect municipal securities include a change in the
local, state, or national economy, demographic factors, ecological or
environmental concerns, statutory limitations on the issuer's ability to
increase taxes, and other developments generally affecting the revenue of
issuers (for example, legislation or court decisions reducing state aid to local
governments or mandating additional services). To the extent a fund invests in
the securities of issuers located in a single state, it will be
disproportionately affected by political and economic conditions and
developments in that state. The value of municipal securities also may be
adversely affected by future changes in federal or state income tax laws,
including rate reductions, the imposition of a flat tax, or the loss of a
current state income tax exemption.
3
Prospectus - First American Tax Free Income Funds
Fund Summaries
Arizona Tax Free Fund
FUND PERFORMANCE
The following illustrations provide you with information on the fund's
volatility and performance. Of course, the fund's past performance (before and
after taxes) is not necessarily an indication of how the fund will perform in
the future.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class C shares will be lower due to their
higher expenses. The performance of Class Y shares will be higher due to their
lower expenses. Sales charges are not reflected in the chart; if they were,
returns would be lower.
The table compares the performance for each share class of the fund over
different time periods to that of the fund's benchmark index, which is a broad
measure of market performance, and to an index of funds with similar investment
strategies. The performance information reflects sales charges and fund
expenses; the benchmark is unmanaged, has no expenses, and is unavailable for
investment. For Class A shares, the table includes returns both before and after
taxes. For Class C and Class Y shares, the table only includes returns before
taxes. After-tax returns for Class C and Class Y shares will vary. After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown.
Both the chart and the table assume that all distributions have been reinvested.
Performance reflects fee waivers in effect. If these fee waivers were not in
place, performance would be reduced.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR (CLASS A)(1)
(BAR CHART)
<Table>
<Caption>
4.74% 9.36% 5.23% 5.40% 2.83% 4.33% 1.23%
2001 2002 2003 2004 2005 2006 2007
<Caption>
Best Quarter:
Quarter ended September 30, 2002 5.00%
Worst Quarter:
Quarter ended June 30, 2004 (2.54)%
</Table>
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS Inception Since
AS OF 12/31/07 Date One Year Five Years Inception
- ---------------------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund
- ---------------------------------------------------------------------------------------------------------------------
Class A (return before taxes) 2/1/00 (3.07)% 2.90% 5.25%
- ---------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions) (3.11)% 2.79% 5.16%
- ---------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions and sale
of fund shares) (0.54)% 3.06% 5.14%
- ---------------------------------------------------------------------------------------------------------------------
Class C (return before taxes) 2/1/00 (0.14)% 3.38% 5.40%
- ---------------------------------------------------------------------------------------------------------------------
Class Y (return before taxes) 2/1/00 1.48% 4.05% 6.08%
- ---------------------------------------------------------------------------------------------------------------------
Lehman Municipal Bond Index(2)
(reflects no deduction for fees, expenses, or taxes) 3.36% 4.30% 6.08%
- ---------------------------------------------------------------------------------------------------------------------
Lipper Arizona Municipal Debt Funds Category Average(3)
(reflects no deduction for sales charges or taxes) 1.31% 3.54% 5.18%
</Table>
(1)Total return for the period from 1/1/08 through 9/30/08 was (4.89)%.
(2)An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds
with remaining maturities of one year or more.
(3)Represents funds that invest primarily in those securities that provide
income that is exempt from taxation in Arizona.
4
Prospectus - First American Tax Free Income Funds
Fund Summaries
California Tax Free Fund
FUND PERFORMANCE
The following illustrations provide you with information on the fund's
volatility and performance. Of course, the fund's past performance (before and
after taxes) is not necessarily an indication of how the fund will perform in
the future.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class C shares will be lower due to their
higher expenses. The performance of Class Y shares will be higher due to their
lower expenses. Sales charges are not reflected in the chart; if they were,
returns would be lower.
The table compares the performance for each share class of the fund over
different time periods to that of the fund's benchmark index, which is a broad
measure of market performance, and to an index of funds with similar investment
strategies. The performance information reflects sales charges and fund
expenses; the benchmark is unmanaged, has no expenses, and is unavailable for
investment. For Class A shares, the table includes returns both before and after
taxes. For Class C and Class Y shares, the table only includes returns before
taxes. After-tax returns for Class C and Class Y shares will vary. After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown.
Both the chart and the table assume that all distributions have been reinvested.
Performance reflects fee waivers in effect. If these fee waivers were not in
place, performance would be reduced.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR (CLASS A)(1)
(BAR CHART)
<Table>
<Caption>
4.31% 9.33% 4.98% 4.76% 2.93% 4.44% 2.46%
2001 2002 2003 2004 2005 2006 2007
<Caption>
Best Quarter:
Quarter ended September 30, 2002 5.92%
Worst Quarter:
Quarter ended June 30, 2004 (2.34)%
</Table>
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS Inception Since
AS OF 12/31/07 Date One Year Five Years Inception
- ---------------------------------------------------------------------------------------------------------------------
California Tax Free Fund
- ---------------------------------------------------------------------------------------------------------------------
Class A (return before taxes) 2/1/00 (1.92)% 3.02% 5.46%
- ---------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions) (1.99)% 2.92% 5.35%
- ---------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions and sale
of fund shares) 0.20% 3.14% 5.29%
- ---------------------------------------------------------------------------------------------------------------------
Class C (return before taxes) 2/1/00 1.04% 3.49% 5.63%
- ---------------------------------------------------------------------------------------------------------------------
Class Y (return before taxes) 2/1/00 2.59% 4.16% 6.29%
- ---------------------------------------------------------------------------------------------------------------------
Lehman Municipal Bond Index(2)
(reflects no deduction for fees, expenses, or taxes) 3.36% 4.30% 6.08%
- ---------------------------------------------------------------------------------------------------------------------
Lipper California Municipal Debt Funds Category
Average(3)
(reflects no deduction for sales charges or taxes) 0.42% 3.61% 5.43%
</Table>
(1)Total return for the period from 1/1/08 through 9/30/08 was (4.72)%.
(2)An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds
with remaining maturities of one year or more.
(3)Represents funds that invest primarily in those securities that provide
income that is exempt from taxation in California.
5
Prospectus - First American Tax Free Income Funds
Fund Summaries
Colorado Tax Free Fund
FUND PERFORMANCE
The following illustrations provide you with information on the fund's
volatility and performance. Of course, the fund's past performance (before and
after taxes) is not necessarily an indication of how the fund will perform in
the future.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class C shares will be lower due to their
higher expenses. The performance of Class Y shares will be higher due to their
lower expenses. Sales charges are not reflected in the chart; if they were,
returns would be lower.
The table compares the performance for each share class of the fund over
different time periods to that of the fund's benchmark index, which is a broad
measure of market performance, and to an index of funds with similar investment
strategies. The performance information reflects sales charges and fund
expenses; the benchmark is unmanaged, has no expenses, and is unavailable for
investment. For Class A shares, the table includes returns both before and after
taxes. For Class C and Class Y shares, the table only includes returns before
taxes. After-tax returns for Class C and Class Y shares will vary. After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown.
Both the chart and the table assume that all distributions have been reinvested.
Performance reflects fee waivers in effect. If these fee waivers were not in
place, performance would be reduced.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR (CLASS A)(1)
(BAR CHART)
<Table>
<Caption>
5.35% 10.35% 5.26% 4.27% 3.09% 4.12% 0.45%
2001 2002 2003 2004 2005 2006 2007
<Caption>
Best Quarter:
Quarter ended September 30, 2002 5.55%
Worst Quarter:
Quarter ended June 30, 2004 (2.28)%
</Table>
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS Inception Since
AS OF 12/31/07 Date One Year Five Years Inception
- ---------------------------------------------------------------------------------------------------------------------
Colorado Tax Free Fund
- ---------------------------------------------------------------------------------------------------------------------
Class A (return before taxes) 2/1/00 (3.81)% 2.54% 5.23%
- ---------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions) (3.86)% 2.35% 5.09%
- ---------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions and sale
of fund shares) (0.96)% 2.76% 5.14%
- ---------------------------------------------------------------------------------------------------------------------
Class C (return before taxes) 2/1/00 (0.91)% 3.03% 5.39%
- ---------------------------------------------------------------------------------------------------------------------
Class Y (return before taxes) 2/1/00 0.70% 3.68% 6.08%
- ---------------------------------------------------------------------------------------------------------------------
Lehman Municipal Bond Index(2)
(reflects no deduction for fees, expenses, or taxes) 3.36% 4.30% 6.08%
- ---------------------------------------------------------------------------------------------------------------------
Lipper Colorado Municipal Debt Funds Category Average(3)
(reflects no deduction for sales charges or taxes) 1.63% 3.61% 5.48%
</Table>
(1)Total return for the period from 1/1/08 through 9/30/08 was (3.56)%.
(2)An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds
with remaining maturities of one year or more.
(3)Represents funds that invest primarily in those securities that provide
income that is exempt from taxation in Colorado.
6
Prospectus - First American Tax Free Income Funds
Fund Summaries
Minnesota Tax Free Fund
FUND PERFORMANCE
The following illustrations provide you with information on the fund's
volatility and performance. Of course, the fund's past performance (before and
after taxes) is not necessarily an indication of how the fund will perform in
the future.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class C shares will be lower due to their
higher expenses. The performance of Class Y shares will be higher due to their
lower expenses. Sales charges are not reflected in the chart; if they were,
returns would be lower.
The table compares the performance for each share class of the fund over
different time periods to that of the fund's benchmark index, which is a broad
measure of market performance, and to an index of funds with similar investment
strategies. The performance information reflects sales charges and fund
expenses; the benchmark is unmanaged, has no expenses, and is unavailable for
investment. For Class A shares, the table includes returns both before and after
taxes. For Class C and Class Y shares, the table only includes returns before
taxes. After-tax returns for Class C and Class Y shares will vary. After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown.
Both the chart and the table assume that all distributions have been reinvested.
Performance reflects fee waivers in effect. If these fee waivers were not in
place, performance would be reduced.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR (CLASS A)(1,2)
(BAR CHART)
<Table>
<Caption>
6.40% (2.92)% 9.60% 4.62% 8.56% 5.18% 3.73% 4.26% 4.61% (0.02)%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
<Caption>
Best Quarter:
Quarter ended September 30, 2002 4.23%
Worst Quarter:
Quarter ended June 30, 2004 (2.26)%
</Table>
<Table>
<Caption>
Since
AVERAGE ANNUAL TOTAL RETURNS Inception Inception
AS OF 12/31/07(2) Date One Year Five Years Ten Years (Class C)
- ----------------------------------------------------------------------------------------------------------------------------
Minnesota Tax Free Fund
- ----------------------------------------------------------------------------------------------------------------------------
Class A (return before taxes) 7/11/88 (4.30)% 2.64% 3.89% N/A
- ----------------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions) (4.38)% 2.56% 3.82% N/A
- ----------------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions
and sale of fund shares) (1.30)% 2.84% 3.94% N/A
- ----------------------------------------------------------------------------------------------------------------------------
Class C (return before taxes) 2/1/99 (1.41)% 3.12% N/A 3.63%
- ----------------------------------------------------------------------------------------------------------------------------
Class Y (return before taxes) 8/1/97 0.19% 3.78% 4.59% N/A
- ----------------------------------------------------------------------------------------------------------------------------
Lehman Municipal Bond Index(3)
(reflects no deduction for fees, expenses, or
taxes) 3.36% 4.30% 5.18% 4.94%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper Minnesota Municipal Debt Funds Category
Average(4)
(reflects no deduction for sales charges or
taxes) 1.11% 3.48% 4.14% 3.84%
</Table>
(1)Total return for the period from 1/1/08 through 9/30/08 was (4.23)%.
(2)Performance presented prior to 7/31/98 represents that of the Piper Minnesota
Tax-Exempt Fund, a series of Piper Funds Inc., which merged into the fund on
that date.
(3)An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds
with remaining maturities of one year or more.
(4)Represents funds that invest primarily in those securities that provide
income that is exempt from taxation in Minnesota.
7
Prospectus - First American Tax Free Income Funds
Fund Summaries
Missouri Tax Free Fund
FUND PERFORMANCE
The following illustrations provide you with information on the fund's
volatility and performance. Of course, the fund's past performance (before and
after taxes) is not necessarily an indication of how the fund will perform in
the future.
The bar chart shows you how performance of the fund's Class Y shares has varied
from year to year. The performance of Class A and Class C shares will be lower
due to their higher expenses.
The table compares the performance for each share class of the fund over
different time periods to that of the fund's benchmark index, which is a broad
measure of market performance, and to an index of funds with similar investment
strategies. The performance information reflects sales charges and fund
expenses; the benchmark is unmanaged, has no expenses, and is unavailable for
investment. For Class Y shares, the table includes returns both before and after
taxes. For Class A and Class C shares, the table only includes returns before
taxes. After-tax returns for Class A and Class C shares will vary. After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown.
Both the chart and the table assume that all distributions have been reinvested.
Performance reflects fee waivers in effect. If these fee waivers were not in
place, performance would be reduced.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR (CLASS Y)(1,2)
(BAR CHART)
<Table>
<Caption>
5.41% (2.85)% 10.88% 4.10% 9.42% 5.11% 3.54% 2.76% 4.14% 1.58%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
<Caption>
Best Quarter:
Quarter ended September 30, 2002 4.86%
Worst Quarter:
Quarter ended June 30, 2004 (2.25)%
</Table>
<Table>
<Caption>
Since
AVERAGE ANNUAL TOTAL RETURNS Inception Inception
AS OF 12/31/07(2) Date One Year Five Years Ten Years (Class C)
- ----------------------------------------------------------------------------------------------------------------------------
Missouri Tax Free Fund
- ----------------------------------------------------------------------------------------------------------------------------
Class A (return before taxes) 9/28/90 (3.05)% 2.29% 3.65% N/A
- ----------------------------------------------------------------------------------------------------------------------------
Class C (return before taxes) 9/24/01 (0.12)% 2.75% N/A 3.37%
- ----------------------------------------------------------------------------------------------------------------------------
Class Y (return before taxes) 7/15/88 1.58% 3.43% 4.39% N/A
- ----------------------------------------------------------------------------------------------------------------------------
Class Y (return after taxes on distributions) 1.54% 3.35% 4.31% N/A
- ----------------------------------------------------------------------------------------------------------------------------
Class Y (return after taxes on distributions
and sale of fund shares) 2.52% 3.51% 4.35% N/A
- ----------------------------------------------------------------------------------------------------------------------------
Lehman Municipal Bond Index(3)
(reflects no deduction for fees, expenses, or
taxes) 3.36% 4.30% 5.18% 4.85%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper Missouri Municipal Debt Funds Category
Average(4)
(reflects no deduction for sales charges or
taxes) 1.38% 3.47% 4.28% 4.00%
</Table>
(1)Total return for the period from 1/1/08 through 9/30/08 was (3.80)%.
(2)Performance presented prior to 9/24/01 represents that of the Firstar
Missouri Tax-Exempt Bond Fund, a series of Firstar Funds, Inc., which merged
into the fund on that date. The Firstar Missouri Tax-Exempt Bond Fund was
organized on 12/11/00 and, prior to that, was a separate series of Mercantile
Mutual Funds, Inc. The Mercantile fund was organized on 10/2/95 and, prior to
that, was a separate portfolio of the ARCH Tax-Exempt Trust, which sold
shares of the portfolio that were similar to the current Class Y shares of
the fund.
(3)An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds
with remaining maturities of one year or more.
(4)Represents funds that invest primarily in those securities that provide
income that is exempt from taxation in Missouri.
8
Prospectus - First American Tax Free Income Funds
Fund Summaries
Nebraska Tax Free Fund
FUND PERFORMANCE
The following illustrations provide you with information on the fund's
volatility and performance. Of course, the fund's past performance (before and
after taxes) is not necessarily an indication of how the fund will perform in
the future.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class C shares will be lower due to their
higher expenses. The performance of Class Y shares will be higher due to their
lower expenses. Sales charges are not reflected in the chart; if they were,
returns would be lower.
The table compares the performance for each share class of the fund over
different time periods to that of the fund's benchmark index, which is a broad
measure of market performance, and to an index of funds with similar investment
strategies. The performance information reflects sales charges and fund
expenses; the benchmark is unmanaged, has no expenses, and is unavailable for
investment. For Class A shares, the table includes returns both before and after
taxes. For Class C and Class Y shares, the table only includes returns before
taxes. After-tax returns for Class C and Class Y shares will vary. After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown.
Both the chart and the table assume that all distributions have been reinvested.
Performance reflects fee waivers in effect. If these fee waivers were not in
place, performance would be reduced.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR (CLASS A)(1)
(BAR CHART)
<Table>
<Caption>
10.19% 4.97% 3.96% 3.02% 4.07% 1.67%
2002 2003 2004 2005 2006 2007
<Caption>
Best Quarter:
Quarter ended September 30, 2002 4.97%
Worst Quarter:
Quarter ended June 30, 2004 (2.34)%
</Table>
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS Inception Since
AS OF 12/31/07 Date One Year Five Years Inception
- ---------------------------------------------------------------------------------------------------------------------
Nebraska Tax Free Fund
- ---------------------------------------------------------------------------------------------------------------------
Class A (return before taxes) 2/28/01 (2.68)% 2.64% 3.87%
- ---------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions) (2.76)% 2.59% 3.83%
- ---------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions and sale
of fund shares) (0.29)% 2.81% 3.89%
- ---------------------------------------------------------------------------------------------------------------------
Class C (return before taxes) 2/28/01 0.31% 3.15% 4.06%
- ---------------------------------------------------------------------------------------------------------------------
Class Y (return before taxes) 2/28/01 2.02% 3.81% 4.79%
- ---------------------------------------------------------------------------------------------------------------------
Lehman Municipal Bond Index(2)
(reflects no deduction for fees, expenses, or taxes) 3.36% 4.30% 5.09%
- ---------------------------------------------------------------------------------------------------------------------
Lipper Other States Municipal Debt Funds Category
Average(3)
(reflects no deduction for sales charges or taxes) 1.88% 3.33% 4.03%
</Table>
(1)Total return for the period from 1/1/08 through 9/30/08 was (3.97)%.
(2)An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds
with remaining maturities of one year or more.
(3)Represents funds that invest primarily in those securities that provide
income that is exempt from taxation in a specified state.
9
Prospectus - First American Tax Free Income Funds
Fund Summaries
Ohio Tax Free Fund
FUND PERFORMANCE
The following illustrations provide you with information on the fund's
volatility and performance. Of course, the fund's past performance (before and
after taxes) is not necessarily an indication of how the fund will perform in
the future.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class C shares will be lower due to their
higher expenses. The performance of Class Y shares will be higher due to their
lower expenses. Sales charges are not reflected in the chart; if they were,
returns would be lower.
The table compares the performance for each share class of the fund over
different time periods to that of the fund's benchmark index, which is a broad
measure of market performance, and to an index of funds with similar investment
strategies. The performance information reflects sales charges and fund
expenses; the benchmark is unmanaged, has no expenses, and is unavailable for
investment. For Class A shares, the table includes returns both before and after
taxes. For Class C and Class Y shares, the table only includes returns before
taxes. After-tax returns for Class C and Class Y shares will vary. After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown.
Both the chart and the table assume that all distributions have been reinvested.
Performance reflects fee waivers in effect. If these fee waivers were not in
place, performance would be reduced.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR (CLASS A)(1)
(BAR CHART)
<Table>
<Caption>
4.89% 3.77% 2.64% 4.11% 2.25%
2003 2004 2005 2006 2007
<Caption>
Best Quarter:
Quarter ended September 30, 2004 4.12%
Worst Quarter:
Quarter ended June 30, 2004 (2.50)%
</Table>
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS Inception Since
AS OF 12/31/07 Date One Year Five Years Inception
- ---------------------------------------------------------------------------------------------------------------------
Ohio Tax Free Fund
- ---------------------------------------------------------------------------------------------------------------------
Class A (return before taxes) 4/30/02 (2.08)% 2.64% 3.57%
- ---------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions) (2.13)% 2.57% 3.49%
- ---------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions and sale
of fund shares) (0.03)% 2.75% 3.55%
- ---------------------------------------------------------------------------------------------------------------------
Class C (return before taxes) 4/30/02 0.89% 2.92% 3.75%
- ---------------------------------------------------------------------------------------------------------------------
Class Y (return before taxes) 4/30/02 2.60% 3.79% 4.61%
- ---------------------------------------------------------------------------------------------------------------------
Lehman Municipal Bond Index(2)
(reflects no deduction for fees, expenses, or taxes) 3.36% 4.30% 4.94%
- ---------------------------------------------------------------------------------------------------------------------
Lipper Ohio Municipal Debt Funds Category Average(3)
(reflects no deduction for sales charges or taxes) 1.97% 3.45% 4.01%
</Table>
(1)Total return for the period from 1/1/08 through 9/30/08 was (3.98)%.
(2)An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds
with remaining maturities of one year or more.
(3)Represents funds that invest primarily in those securities that provide
income that is exempt from taxation in Ohio.
10
Prospectus - First American Tax Free Income Funds
Fund Summaries
Tax Free Fund
FUND PERFORMANCE
The following illustrations provide you with information on the fund's
volatility and performance. Of course, the fund's past performance (before and
after taxes) is not necessarily an indication of how the fund will perform in
the future.
The bar chart shows you how performance of the fund's Class A shares has varied
from year to year. The performance of Class C shares will be lower due to their
higher expenses. The performance of Class Y shares will be higher due to their
lower expenses. Sales charges are not reflected in the chart; if they were,
returns would be lower.
The table compares the performance for each share class of the fund over
different time periods to that of the fund's benchmark index, which is a broad
measure of market performance, and to an index of funds with similar investment
strategies. The performance information reflects sales charges and fund
expenses; the benchmark is unmanaged, has no expenses, and is unavailable for
investment. For Class A shares, the table includes returns both before and after
taxes. For Class C and Class Y shares, the table only includes returns before
taxes. After-tax returns for Class C and Class Y shares will vary. After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown.
Both the chart and the table assume that all distributions have been reinvested.
Performance reflects fee waivers in effect. If these fee waivers were not in
place, performance would be reduced.
ANNUAL TOTAL RETURNS AS OF 12/31 EACH YEAR (CLASS A)(1,2)
(BAR CHART)
<Table>
<Caption>
5.94% (4.33)% 12.31% 3.73% 9.46% 5.83% 4.23% 4.19% 4.74% 0.03%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
<Caption>
Best Quarter:
Quarter ended September 30, 2002 5.16%
Worst Quarter:
Quarter ended June 30, 1999 (2.76)%
</Table>
<Table>
<Caption>
Since
AVERAGE ANNUAL TOTAL RETURNS Inception Inception
AS OF 12/31/07(2) Date One Year Five Years Ten Years (Class C)
- ----------------------------------------------------------------------------------------------------------------------------
Tax Free Fund
- ----------------------------------------------------------------------------------------------------------------------------
Class A (return before taxes) 11/18/96 (4.23)% 2.88% 4.08% N/A
- ----------------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions) (4.31)% 2.76% 3.97% N/A
- ----------------------------------------------------------------------------------------------------------------------------
Class A (return after taxes on distributions
and sale of fund shares) (1.29)% 3.06% 4.08% N/A
- ----------------------------------------------------------------------------------------------------------------------------
Class C (return before taxes) 9/24/01 (1.38)% 3.37% N/A 3.95%
- ----------------------------------------------------------------------------------------------------------------------------
Class Y (return before taxes) 11/18/96 0.22% 4.03% 4.74% N/A
- ----------------------------------------------------------------------------------------------------------------------------
Lehman Municipal Bond Index(3)
(reflects no deduction for fees, expenses, or
taxes) 3.36% 4.30% 5.18% 4.85%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper General Municipal Debt Funds Category
Average(4)
(reflects no deduction for sales charges or
taxes) 1.16% 3.49% 4.08% 3.94%
</Table>
(1)Total return for the period from 1/1/08 through 9/30/08 was (5.19)%.
(2)Performance presented prior to 9/24/01 represents that of the Firstar
National Municipal Bond Fund, a series of Firstar Funds, Inc., which merged
with the fund on that date.
(3)An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds
with remaining maturities of one year or more.
(4)Represents funds that invest primarily in municipal debt issues in the top
four credit ratings.
11
Prospectus - First American Tax Free Income Funds
Fund Summaries
Fees and Expenses
As an investor, you pay fees and expenses to buy and hold shares of the funds.
You pay shareholder fees directly when you buy or sell shares. You pay annual
fund operating expenses indirectly since they are deducted from fund assets.
The tables below describe the fees and expenses that you may pay if you buy and
hold shares of the funds.
<Table>
<Caption>
- ---------------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES(1)
(fees paid directly from your investment) Class A(2) Class C Class Y
- ---------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES
(as a percentage of offering price) 4.25% 0.00% None
MAXIMUM DEFERRED SALES CHARGE (LOAD)
(as a percentage of original purchase price or redemption
proceeds, whichever is less) 0.00% 1.00% None
- ---------------------------------------------------------------------------------------------------------------
</Table>
(1)An annual account maintenance fee of $50 may be charged under certain
circumstances. See "Policies and Services -- Purchasing, Redeeming, and
Exchanging Shares -- Additional Information on Purchasing, Redeeming, and
Exchanging Shares -- Accounts with Low Balances."
(2)Investors may qualify for reduced sales charges. Investments of $1 million or
more on which no front-end sales charge is paid may be subject to a 1%
contingent deferred sales charge.
<Table>
<Caption>
- -----------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from fund assets)
(as a percentage of average net assets)
- -----------------------------------------------------------------------------------------------------------------------
Acquired
Distribution and/or Fund Fees Total Annual
Management Service (12b-1) Other and Fund Operating
CLASS A Fees Fees(1) Expenses Expenses(2) Expenses(3)
- -----------------------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund 0.50% 0.25% 0.88% 0.01% 1.64%
California Tax Free
Fund 0.50% 0.25% 0.71% 0.01% 1.47%
Colorado Tax Free
Fund 0.50% 0.25% 1.05% 0.01% 1.81%
Minnesota Tax Free
Fund 0.50% 0.25% 0.35% 0.01% 1.11%
Missouri Tax Free
Fund 0.50% 0.25% 0.35% -- 1.10%
Nebraska Tax Free
Fund 0.50% 0.25% 0.72% -- 1.47%
Ohio Tax Free Fund 0.50% 0.25% 0.64% 0.01% 1.40%
Tax Free Fund 0.50% 0.25% 0.27% -- 1.02%
- -----------------------------------------------------------------------------------------------------------------------
<Caption>
- ---------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from fund assets)
(as a percentage of average net assets)
- ---------------------------------------------------------
Less Fee Net
CLASS A Waivers(4) Expenses(4)
- ---------------------------------------------------------
Arizona Tax Free Fund (0.88)% 0.76%
California Tax Free
Fund (0.81)% 0.66%
Colorado Tax Free
Fund (1.05)% 0.76%
Minnesota Tax Free
Fund (0.25)% 0.86%
Missouri Tax Free
Fund (0.15)% 0.95%
Nebraska Tax Free
Fund (0.72)% 0.75%
Ohio Tax Free Fund (0.64)% 0.76%
Tax Free Fund (0.27)% 0.75%
- ---------------------------------------------------------
</Table>
(1)The advisor has contractually agreed, in addition to other fee waivers and
expense reimbursements, to reimburse an amount of Class A share 12b-1 fees
equal to 0.10%, 0.10% and 0.20% of average daily net assets for California
Tax Free Fund, Minnesota Tax Free Fund and Tax Free Fund, respectively,
through October 31, 2009.
(2)In addition to the funds' total annual operating expenses that the funds bear
directly, the funds' shareholders indirectly bear the expenses of the
acquired funds (affiliated and unaffiliated) in which the funds invest.
(3)Total Annual Fund Operating Expenses are based on the funds' most recently
completed fiscal year, absent any expense reimbursements or fee waivers,
restated to reflect current fees. The funds' most recent annual report and
financial highlights reflect the operating expenses of the funds and do not
include Acquired Fund Fees and Expenses.
(4)The advisor has contractually agreed to waive fees and reimburse other fund
expenses through October 31, 2009, so that total annual fund operating
expenses, after waivers and excluding Acquired Fund Fees and Expenses, do not
exceed 0.65% for California Tax Free Fund, 0.75% for Arizona Tax Free Fund,
Colorado Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax
Free Fund, 0.85% for Minnesota Tax Free Fund, and 0.95% for Missouri Tax Free
Fund. These fee waivers and expense reimbursements may be terminated at any
time after October 31, 2009, at the discretion of the advisor. Prior to that
time, such waivers and reimbursements may not be terminated without the
approval of the funds' board of directors.
12
Prospectus - First American Tax Free Income Funds
Fund Summaries
Fees and Expenses continued
<Table>
<Caption>
- --------------------------------------------------------------------------------------------------------------------
Acquired
Distribution and/or Fund Fees Total Annual
Management Service (12b-1) Other and Fund Operating
CLASS C Fees Fees Expenses Expenses(1) Expenses(2)
- --------------------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund 0.50% 0.65% 0.88% 0.01% 2.04%
California Tax Free
Fund 0.50% 0.65% 0.70% 0.01% 1.86%
Colorado Tax Free Fund 0.50% 0.65% 1.05% 0.01% 2.21%
Minnesota Tax Free
Fund 0.50% 0.65% 0.35% 0.01% 1.51%
Missouri Tax Free Fund 0.50% 0.65% 0.35% -- 1.50%
Nebraska Tax Free Fund 0.50% 0.65% 0.72% -- 1.87%
Ohio Tax Free Fund 0.50% 0.65% 0.63% 0.01% 1.79%
Tax Free Fund 0.50% 0.65% 0.28% -- 1.43%
- --------------------------------------------------------------------------------------------------------------------
<Caption>
- --------------------------------------------------------
Less Fee Net
CLASS C Waivers(3) Expenses(3)
- --------------------------------------------------------
Arizona Tax Free Fund (0.88)% 1.16%
California Tax Free
Fund (0.70)% 1.16%
Colorado Tax Free Fund (1.05)% 1.16%
Minnesota Tax Free
Fund (0.15)% 1.36%
Missouri Tax Free Fund (0.15)% 1.35%
Nebraska Tax Free Fund (0.72)% 1.15%
Ohio Tax Free Fund (0.63)% 1.16%
Tax Free Fund (0.08)% 1.35%
- --------------------------------------------------------
</Table>
(1)In addition to the funds' total annual operating expenses that the funds bear
directly, the funds' shareholders indirectly bear the expenses of the
acquired funds (affiliated and unaffiliated) in which the funds invest.
(2)Total Annual Fund Operating Expenses are based on the funds' most recently
completed fiscal year, absent any expense reimbursements or fee waivers. The
funds' most recent annual report and financial highlights reflect the
operating expenses of the funds and do not include Acquired Fund Fees and
Expenses.
(3)The advisor has contractually agreed to waive fees and reimburse other fund
expenses through October 31, 2009, so that total annual fund operating
expenses, after waivers and excluding Acquired Fund Fees and Expenses, do not
exceed 1.15% for Arizona Tax Free Fund, California Tax Free Fund, Colorado
Tax Free Fund, Nebraska Tax Free Fund, and Ohio Tax Free Fund, and 1.35% for
Minnesota Tax Free Fund, Missouri Tax Free Fund, and Tax Free Fund. These fee
waivers and expense reimbursements may be terminated at any time after
October 31, 2009, at the discretion of the advisor. Prior to that time, such
waivers and reimbursements may not be terminated without the approval of the
funds' board of directors.
<Table>
<Caption>
- --------------------------------------------------------------------------------------------------------------------
Acquired
Distribution and/or Fund Fees Total Annual
Management Service (12b-1) Other and Fund Operating
CLASS Y Fees Fees Expenses Expenses(1) Expenses(2)
- --------------------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund 0.50% None 0.88% 0.01% 1.39%
California Tax Free
Fund 0.50% None 0.70% 0.01% 1.21%
Colorado Tax Free Fund 0.50% None 1.05% 0.01% 1.56%
Minnesota Tax Free
Fund 0.50% None 0.35% 0.01% 0.86%
Missouri Tax Free Fund 0.50% None 0.35% -- 0.85%
Nebraska Tax Free Fund 0.50% None 0.72% -- 1.22%
Ohio Tax Free Fund 0.50% None 0.64% 0.01% 1.15%
Tax Free Fund 0.50% None 0.28% -- 0.78%
- --------------------------------------------------------------------------------------------------------------------
<Caption>
- --------------------------------------------------------
Less Fee Net
CLASS Y Waivers(3) Expenses(3)
- --------------------------------------------------------
Arizona Tax Free Fund (0.88)% 0.51%
California Tax Free
Fund (0.70)% 0.51%
Colorado Tax Free Fund (1.05)% 0.51%
Minnesota Tax Free
Fund (0.15)% 0.71%
Missouri Tax Free Fund (0.15)% 0.70%
Nebraska Tax Free Fund (0.72)% 0.50%
Ohio Tax Free Fund (0.64)% 0.51%
Tax Free Fund (0.08)% 0.70%
- --------------------------------------------------------
</Table>
(1)In addition to the funds' total annual operating expenses that the funds bear
directly, the funds' shareholders indirectly bear the expenses of the
acquired funds (affiliated and unaffiliated) in which the funds invest.
(2)Total Annual Fund Operating Expenses are based on the funds' most recently
completed fiscal year, absent any expense reimbursements or fee waivers. The
funds' most recent annual report and financial highlights reflect the
operating expenses of the funds and do not include Acquired Fund Fees and
Expenses.
(3)The advisor has contractually agreed to waive fees and reimburse other fund
expenses through October 31, 2009, so that total annual fund operating
expenses, after waivers and excluding Acquired Fund Fees and Expenses, do not
exceed 0.50% for Arizona Tax Free Fund, California Tax Free Fund, Colorado
Tax Free Fund, Nebraska Tax Free Fund, and Ohio Tax Free Fund, and 0.70% for
Minnesota Tax Free Fund, Missouri Tax Free Fund, and Tax Free Fund. These fee
waivers and expense reimbursements may be terminated at any time after
October 31, 2009, at the discretion of the advisor. Prior to that time, such
waivers and reimbursements may not be terminated without the approval of the
funds' board of directors.
13
Prospectus - First American Tax Free Income Funds
Fund Summaries
Fees and Expenses continued
EXAMPLES These examples are intended to help you compare the cost of investing
in each fund with the cost of investing in other mutual funds. It assumes that
you invest $10,000 for the time periods indicated, that your investment has a 5%
return each year, and that each fund's operating expenses remain the same.
Although your actual costs and returns may differ, based on these assumptions
your costs would be:
<Table>
<Caption>
CLASS A One Year Three Years Five Years Ten Years
- -----------------------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund $ 499 $ 838 $ 1,199 $ 2,215
- -----------------------------------------------------------------------------------------------------------------------
California Tax Free Fund $490 $794 $1,120 $2,041
- -----------------------------------------------------------------------------------------------------------------------
Colorado Tax Free Fund $499 $872 $1,269 $2,378
- -----------------------------------------------------------------------------------------------------------------------
Minnesota Tax Free Fund $509 $739 $ 987 $1,698
- -----------------------------------------------------------------------------------------------------------------------
Missouri Tax Free Fund $518 $746 $ 992 $1,695
- -----------------------------------------------------------------------------------------------------------------------
Nebraska Tax Free Fund $498 $802 $1,128 $2,049
- -----------------------------------------------------------------------------------------------------------------------
Ohio Tax Free Fund $499 $789 $1,100 $1,980
- -----------------------------------------------------------------------------------------------------------------------
Tax Free Fund $498 $710 $ 939 $1,596
</Table>
<Table>
<Caption>
CLASS C (ASSUMING REDEMPTION AT END OF EACH PERIOD) One Year Three Years Five Years Ten Years
- -----------------------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund $ 218 $ 555 $ 1,017 $ 2,299
- -----------------------------------------------------------------------------------------------------------------------
California Tax Free Fund $218 $517 $ 941 $2,123
- -----------------------------------------------------------------------------------------------------------------------
Colorado Tax Free Fund $218 $590 $1,089 $2,462
- -----------------------------------------------------------------------------------------------------------------------
Minnesota Tax Free Fund $238 $462 $ 810 $1,789
- -----------------------------------------------------------------------------------------------------------------------
Missouri Tax Free Fund $237 $459 $ 804 $1,778
- -----------------------------------------------------------------------------------------------------------------------
Nebraska Tax Free Fund $217 $518 $ 944 $2,132
- -----------------------------------------------------------------------------------------------------------------------
Ohio Tax Free Fund $218 $502 $ 911 $2,053
- -----------------------------------------------------------------------------------------------------------------------
Tax Free Fund $237 $445 $ 774 $1,706
</Table>
<Table>
<Caption>
CLASS C (ASSUMING NO REDEMPTION AT END OF EACH PERIOD) One Year Three Years Five Years Ten Years
- -----------------------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund $ 118 $ 555 $ 1,017 $ 2,299
- -----------------------------------------------------------------------------------------------------------------------
California Tax Free Fund $118 $517 $ 941 $2,123
- -----------------------------------------------------------------------------------------------------------------------
Colorado Tax Free Fund $118 $590 $1,089 $2,462
- -----------------------------------------------------------------------------------------------------------------------
Minnesota Tax Free Fund $138 $462 $ 810 $1,789
- -----------------------------------------------------------------------------------------------------------------------
Missouri Tax Free Fund $137 $459 $ 804 $1,778
- -----------------------------------------------------------------------------------------------------------------------
Nebraska Tax Free Fund $117 $518 $ 944 $2,132
- -----------------------------------------------------------------------------------------------------------------------
Ohio Tax Free Fund $118 $502 $ 911 $2,053
- -----------------------------------------------------------------------------------------------------------------------
Tax Free Fund $137 $445 $ 774 $1,706
</Table>
<Table>
<Caption>
CLASS Y One Year Three Years Five Years Ten Years
- -----------------------------------------------------------------------------------------------------------------------
Arizona Tax Free Fund $ 52 $ 353 $ 676 $ 1,592
- -----------------------------------------------------------------------------------------------------------------------
California Tax Free Fund $52 $315 $598 $1,404
- -----------------------------------------------------------------------------------------------------------------------
Colorado Tax Free Fund $52 $389 $750 $1,767
- -----------------------------------------------------------------------------------------------------------------------
Minnesota Tax Free Fund $73 $259 $462 $1,047
- -----------------------------------------------------------------------------------------------------------------------
Missouri Tax Free Fund $72 $256 $457 $1,035
- -----------------------------------------------------------------------------------------------------------------------
Nebraska Tax Free Fund $51 $316 $601 $1,413
- -----------------------------------------------------------------------------------------------------------------------
Ohio Tax Free Fund $52 $302 $571 $1,340
- -----------------------------------------------------------------------------------------------------------------------
Tax Free Fund $72 $241 $425 $ 959
</Table>
14
Prospectus - First American Tax Free Income Funds
More About the Funds
Investment Strategies and Other Investment Matters
OBJECTIVES
The funds' objectives, which are described in the "Fund Summaries" section, may
be changed without shareholder approval. If a fund's objective changes, you will
be notified at least 60 days in advance. Please remember, there is no guarantee
that any fund will achieve its objective.
INVESTMENT STRATEGIES
The funds' principal investment strategies are discussed in the "Fund Summaries"
section. These are the strategies that the funds' investment advisor believes
are most likely to be important in trying to achieve the funds' objectives. This
section provides more information about some of the funds' principal and non-
principal investment strategies. You should be aware that each fund may also use
strategies and invest in securities that are not described in this prospectus,
but that are described in the Statement of Additional Information (SAI). For a
copy of the SAI, call Investor Services at 800 677-FUND.
Investment Approach. In selecting securities for the funds, fund managers first
determine their economic outlook and the direction in which inflation and
interest rates are expected to move. In selecting individual securities
consistent with this outlook, the fund managers evaluate factors such as credit
quality, yield, maturity, liquidity, and portfolio diversification. In the case
of Tax Free Fund, geographical diversification is also a factor. Fund managers
conduct research on potential and current holdings in the funds to determine
whether a fund should purchase or retain a security. This is a continuing
process the focus of which changes according to market conditions, the
availability of various permitted investments, and cash flows into and out of
the funds.
Municipal Securities. Municipal securities are issued to finance public
infrastructure projects such as streets and highways, schools, water and sewer
systems, hospitals, and airports. They also may be issued to refinance
outstanding obligations as well as to obtain funds for general operating
expenses and for loans to other public institutions and facilities.
The funds may invest in municipal securities such as "general obligation" bonds,
"revenue" bonds, and participation interests in municipal leases. General
obligation bonds are backed by the full faith, credit, and taxing power of the
issuer. Revenue bonds are payable only from the revenues generated by a specific
project or from another specific revenue source. Participation interests in
municipal leases are undivided interests in a lease, installment purchase
contract, or conditional sale contract entered into by a state or local
government unit to acquire equipment or facilities.
The municipal securities in which the funds invest may include refunded bonds
and zero coupon bonds. Refunded bonds may have originally been issued as general
obligation or revenue bonds, but become "refunded" when they are secured by an
escrow fund, usually consisting entirely of direct U.S. government obligations
and/or U.S. government agency obligations. Zero coupon bonds are issued at
substantial discounts from their value at maturity and pay no cash income to
their holders until they mature. When held to maturity, their entire return
comes from the difference between their purchase price and their maturity value.
Ratings. The funds have investment strategies requiring them to invest in
municipal securities that have received a particular rating from a rating
service such as Moody's or Standard & Poor's. Any reference in this prospectus
to a specific rating encompasses all gradations of that rating. For example, if
the prospectus says that a fund may invest in securities rated as low as B, the
fund may invest in securities rated B-.
Temporary Investments. In an attempt to respond to adverse market, economic,
political, or other conditions, each fund may temporarily invest without limit
in cash and in U.S. dollar-denominated high-quality money market instruments and
other short-term securities, including securities which pay income that is
subject to federal and state income tax. These investments may include money
market funds advised by the funds' advisor. Because these investments may be
taxable, and may result in a lower yield than would be available from
investments with a lower quality or longer term, they may prevent a fund from
achieving its investment objective.
Portfolio Turnover. Fund managers may trade securities frequently, resulting,
from time to time, in an annual portfolio turnover rate of over 100%. Trading of
securities may produce capital gains, which are taxable to shareholders when
distributed. Active trading may also increase the amount of commissions or mark-
ups to broker-dealers that the fund pays when it buys and sells securities. The
"Financial Highlights" section of this prospectus shows each fund's historical
portfolio turnover rate.
DISCLOSURE OF PORTFOLIO HOLDINGS
A description of the funds' policies and procedures with respect to the
disclosure of each fund's portfolio securities is available in the funds' SAI.
15
Prospectus - First American Tax Free Income Funds
Policies and Services
Purchasing, Redeeming, and Exchanging Shares
GENERAL
You may purchase, redeem, or exchange shares of the funds on any day when the
New York Stock Exchange (NYSE) is open, except that shares cannot be purchased
by wire transfer on days that federally chartered banks are closed. Purchases,
redemptions and exchanges may be restricted in the event of an early or
unscheduled close of the NYSE, as permitted by the Securities and Exchange
Commission (SEC).
The funds have authorized certain investment professionals and financial
institutions ("financial intermediaries") to accept purchase, redemption, or
exchange orders on their behalf. Your purchase or redemption price will be based
on that day's net asset value (NAV) per share if your order is received by the
funds or an authorized financial intermediary in proper form prior to the time
the funds calculate their NAV. See "Additional Information on Purchasing,
Redeeming and Exchanging Shares -- Calculating Net Asset Value" below. Contact
your financial intermediary to determine the time by which it must receive your
order to be assured same day processing. To make sure your order is in proper
form, you must follow the instructions set forth below under "Purchase,
Redemption and Exchange Procedures."
Some financial intermediaries may charge a fee for helping you purchase, redeem
or exchange shares. Contact your financial intermediary for more information. No
such fee will be imposed if you purchase shares directly from the funds.
CHOOSING A SHARE CLASS
The funds issue their shares in three classes -- Class A, Class C and Class Y
shares -- with each class having a different cost structure. Class A and Class C
shares (the "Retail Share Classes") are generally available to investors. You
should decide which share class best suits your needs.
Eligibility to Invest in Class Y Shares
Class Y shares are offered to group retirement and employee benefit plans and to
certain persons who are charged fees for advisory, investment, consulting or
similar services by a financial intermediary or other service provider. Such
persons may include, but are not limited to, individuals, corporations, and
endowments.
Class Share Overview
<Table>
<Caption>
Front-End Contingent
Sales Charge Deferred Sales Annual 12b-1 Fees
(FESC) Charge (CDSC) (as a % of net assets)
- -------------------------------------------------------------------------
Class A 4.25%(1) 0.00%(2) 0.25%
Class C(3) None 1.00%(4) 0.65%
Class Y None None None
- -------------------------------------------------------------------------
</Table>
(1)The FESC is reduced for larger purchases. See "Determining Your Share
Price -- Class A Shares" below.
(2)Class A share investments of $1 million or more on which no FESC is paid may
be subject to a 1% CDSC.
(3)Class C shares do not convert to Class A shares so they will continue to have
higher annual expenses than Class A shares for as long as you hold them.
(4)A 1.00% CDSC applies if you redeem your Class C shares within 12 months of
purchase.
Between the Retail Share Classes, Class A shares may be a better choice if your
investment qualifies for a reduced sales charge. You should not place Class C
share orders that would cause your total investment in First American Funds
Class A, Class B (for funds that offered such share class prior to July 1,
2008), and Class C shares (not including First American money market funds) to
equal or exceed $1 million dollars, using the aggregation principles discussed
below under "Determining Your Share Price -- Class A Shares -- Reducing Your
Sales Charge on Class A Shares." To the extent operationally possible, these
orders will be automatically rejected.
Class Y shares are generally a better choice than a Retail Share Class if you
are eligible to purchase this share class.
DETERMINING YOUR SHARE PRICE
Because the current prospectus and Statement of Additional Information are
available on First American Funds' website free of charge, we do not disclose
the following share class information separately on the website.
Class A Shares
Your purchase price for Class A shares is typically the net asset value of your
shares, plus a front-end sales charge. Sales charges vary depending on the
amount of your purchase. The sales charge you pay may differ slightly from the
amount set forth below because of rounding that occurs in the calculation used
to determine your sales charge.
<Table>
<Caption>
Sales Charge
----------------------------
As a %
As a % of Net
of Amount
Offering Invest-
PURCHASE AMOUNT Price ed
- --------------------------------------------------------
Less than $50,000 4.25% 4.44%
$50,000 - $99,999 4.00% 4.17%
$100,000 - $249,999 3.50% 3.63%
$250,000 - $499,999 2.50% 2.56%
$500,000 - $999,999 2.00% 2.04%
$1 million and over 0.00% 0.00%
</Table>
16
Prospectus - First American Tax Free Income Funds
Policies and Services
Purchasing, Redeeming, and Exchanging Shares continued
Reducing Your Sales Charge on Class A Shares.
As shown in the preceding table, larger purchases of Class A shares reduce the
percentage sales charge you pay. In determining whether you are entitled to pay
a reduced sales charge, you may aggregate certain other purchases with your
current purchase, as follows.
Prior Purchases. Prior purchases of Class A, Class B (for funds that offered
such share class prior to July 1, 2008), and Class C shares of any First
American Fund (except a money market fund) will be factored into your sales
charge calculation. You will receive credit for the current net asset value of
the other Class A, Class B, and Class C shares you hold at the time of your
purchase, including shares held in individual retirement, custodial or personal
trust accounts. For example, let's say you're making a $10,000 investment and
you already own other First American Fund Class A shares that are currently
valued at $45,000. You will receive credit for the current value of these shares
and your sales charge will be based on a total purchase amount of $55,000. If
the current net asset value of your shares is less than their original purchase
price, you may receive credit for their original purchase price instead, but
only if you provide a written request to the funds and provide them with the
records necessary to demonstrate the shares' purchase price.
Purchases by Related Accounts. Concurrent and prior purchases by certain other
accounts of Class A, Class B (for funds that offered such share class prior to
July 1, 2008), and Class C shares of any First American Fund (except a money
market fund) also will be combined with your purchase to determine your sales
charge. The fund will combine purchases made by you, your spouse or domestic
partner, and your dependent children when it calculates the sales charge,
including purchases in individual retirement, custodial and personal trust
accounts.
Letter of Intent. If you plan to make an aggregate investment of $50,000 or
more over a 13-month period in Class A or Class C shares of one or more First
American Funds, other than the money market funds, you may reduce your sales
charge for Class A purchases by signing a non-binding letter of intent. If you
do not fulfill the letter of intent, you must pay the applicable sales charge.
In addition, if you reduce your sales charge to zero under a letter of intent
and then sell your Class A shares within 18 months of their purchase, you may be
charged a contingent deferred sales charge of 1%. See "Class A Share Investments
of Over $1 Million" below.
It is your responsibility to determine whether you are entitled to pay a reduced
sales charge. The fund is not responsible for making this determination. To
receive a reduced sales charge, you must notify the fund at the time of the
purchase order that a quantity discount may apply to your current purchase. If
you purchase shares by mail, you must notify the fund in writing. Otherwise,
simply inform your financial intermediary, or Investor Services if you are
purchasing shares directly from the funds, and they will notify the fund.
You should provide your financial intermediary with information or records
regarding any other accounts in which there are holdings eligible to be
aggregated, including:
- - all of your accounts at your financial intermediary.
- - all of your accounts at any other financial intermediary.
- - all accounts of any related party (such as a spouse or dependent child) held
with any financial intermediary.
You should keep the records necessary to demonstrate the purchase price of
shares held in these accounts since neither the fund and its transfer agent nor
your financial intermediary may have this information.
More information on these ways to reduce your sales charge appears in the SAI.
Purchasing Class A Shares Without a Sales Charge. The following persons may
purchase a fund's Class A shares at net asset value without a sales charge:
- - directors, advisory board members, full-time employees and retirees of the
advisor and its affiliates.
- - current and retired officers and directors of the funds.
- - full-time employees of any broker-dealer authorized to sell fund shares.
- - full-time employees of the fund's counsel.
- - members of the immediate families of any of the foregoing (i.e., a spouse or
domestic partner and any dependent children).
- - persons who purchase the funds through "one-stop" mutual fund networks through
which the funds are made available.
- - persons participating in a fee-based program sponsored and maintained by a
registered broker-dealer.
- - trust companies and bank trust departments acting in a fiduciary, advisory,
agency, custodial or similar capacity.
- - persons who hold shares of a First American money market fund pursuant to an
arrangement, which has subsequently terminated, under which the money market
fund had served as a cash investment option for another mutual fund family,
but only with respect to exchanges of those shares (including shares
representing reinvested dividends) for shares of other First American funds.
- - persons who held shares of a tax free income fund of another mutual fund
family, where such other fund was subsequently liquidated or merged into
another mutual fund, or where the liquidation or merger is pending, provided
the purchase of Class A shares is made prior to June 30, 2009.
- - group retirement and employee benefit plans.
17
Prospectus - First American Tax Free Income Funds
Policies and Services
Purchasing, Redeeming, and Exchanging Shares continued
You must notify the funds or your financial intermediary if you are eligible to
purchase Class A shares without a sales charge.
Reinvesting After a Redemption. If you redeem Class A shares of a First
American Fund (except money market fund shares on which you have not paid a
sales charge), you may reinvest in Class A shares of that fund or another First
American fund within 180 days without a sales charge. To reinvest in Class A
shares at net asset value (without paying a sales charge), you must notify the
fund directly in writing or notify your financial intermediary.
Class A Share Investments of Over $1 Million. There is no initial sales charge
on Class A share purchases of $1 million or more (including purchases that reach
the $1 million level as a result of aggregating prior purchases and purchases by
related accounts). However, your financial intermediary may receive a commission
of up to 1% on your purchase. If such a commission is paid, you will be assessed
a contingent deferred sales charge (CDSC) of 1% if you sell your shares within
18 months. The CDSC you pay may differ slightly from this amount because of
rounding that occurs in the calculation used to determine your CDSC. To find out
whether you will be assessed a CDSC, ask your financial intermediary.
The CDSC is based on the value of your shares at the time of purchase in the
case of a partial redemption. If you redeem all of your shares, the CDSC is
based on the value of your shares at the time of purchase or at the time of
redemption, whichever is less. The charge does not apply to shares you acquired
by reinvesting your dividend or capital gain distributions. To help lower your
costs, Class A shares that are not subject to a CDSC will be redeemed first. The
CDSC will be waived in the circumstances described below under "Waiving
Contingent Deferred Sales Charges."
Class C Shares
Your purchase price for Class C shares is their net asset value -- there is no
front-end sales charge. However, if you redeem your shares within 12 months of
purchase, you will be assessed a CDSC of 1% of the value of your shares at the
time of purchase or at the time of sale, whichever is less. The CDSC you pay may
differ slightly from this amount because of rounding that occurs in the
calculation used to determine your CDSC. The CDSC does not apply to shares you
acquired by reinvesting your dividend or capital gain distributions. To help
lower your costs, Class C shares that are not subject to a CDSC will be redeemed
first. The CDSC will be waived in the circumstances described below under
"Waiving Contingent Deferred Sales Charges."
Waiving Contingent Deferred Sales Charges
CDSCs on Class A and Class C share redemptions will be waived for:
- - redemptions following the death or disability (as defined in the Internal
Revenue Code) of a shareholder.
- - redemptions that equal the minimum required distribution from an IRA or other
retirement plan to a shareholder who has reached the age of 70 1/2.
- - redemptions through a systematic withdrawal plan, at a rate of up to 12% a
year of your account's value. The systematic withdrawal limit will be based on
the market value of your account at the time of each withdrawal.
- - redemptions required as a result of over-contribution to an IRA plan.
Class Y Shares
Your purchase price for Class Y shares is their net asset value. This share
class does not have a front-end sales charge or a CDSC.
12B-1 FEES
Each fund has adopted a plan pursuant to Rule 12b-1 under the Investment Company
Act that allows each fund to pay the fund's distributor an annual fee for the
distribution and sale of its shares and/or for services provided to
shareholders. The funds do not pay 12b-1 fees on Class Y shares. The 12b-1 fees
paid by the funds are designated as distribution fees and/or shareholder
servicing fees, as described here.
<Table>
<Caption>
Annual 12b-1 Fees
-------------------------
Shareholder
Distribution Servicing
Fee Fee
- --------------------------------------------------------
Class A(1) None 0.25%
Class C 0.40% 0.25%
Class Y None None
- --------------------------------------------------------
</Table>
(1)The advisor has agreed to reimburse an amount of Class A share 12b-1 fees
equal to 0.10%, 0.10%, and 0.20% of average daily net assets for California
Tax Free Fund, Minnesota Tax Free Fund, and Tax Free Fund, respectively,
through October 31, 2009.
Because 12b-1 fees are paid out of a fund's assets on an ongoing basis, over
time these fees will increase the cost of your investment and may cost you more
than paying other types of sales charges.
COMPENSATION PAID TO FINANCIAL INTERMEDIARIES
The funds' distributor receives any front-end sales charge or CDSC that you pay
and any 12b-1 fees paid by the funds. From this revenue, the distributor will
pay financial intermediaries for the services they provide. The funds' advisor
and/or distributor may make additional payments to intermediaries from their own
assets, as described below under "Additional Payments to Financial
Intermediaries."
18
Prospectus - First American Tax Free Income Funds
Policies and Services
Purchasing, Redeeming, and Exchanging Shares continued
Sales Charge Reallowance
The distributor pays (or "reallows") a portion of the front-end sales charge on
Class A shares to your financial intermediary, as follows:
<Table>
<Caption>
Maximum
Reallowance
as a % of
Purchase Amount Purchase Price
- ------------------------------------------------
Less than $50,000 4.00%
$50,000 - $99,999 3.75%
$100,000 - $249,999 3.25%
$250,000 - $499,999 2.25%
$500,000 - $999,999 1.75%
$1 million and over 0.00%
</Table>
Sales Commissions
There is no initial sales charge on Class A share purchases of $1 million or
more. However, your financial intermediary may receive a commission of up to 1%
on your purchase. Although you pay no front-end sales charge when you buy Class
C shares, the funds' distributor pays a sales commission of 1.00% of the amount
invested to intermediaries selling Class C shares.
12b-1 Fees
The funds' distributor uses the 12b-1 shareholder servicing fee to compensate
financial intermediaries for administrative services performed on behalf of the
intermediaries' customers. These intermediaries receive shareholder servicing
fees of 0.25% of a fund's Class A share and 0.15% of a fund's Class C share
average daily net assets attributable to shares sold through them. For Class A
shares, the distributor begins to pay shareholder servicing fees to these
intermediaries immediately after you purchase shares. For Class C shares, the
distributor begins to pay shareholder servicing fees to these intermediaries one
year after you purchase shares, but only if you continue to hold the shares at
that time. In both cases, the intermediaries continue to receive these fees for
as long as you hold fund shares.
The funds' distributor uses the 12b-1 distribution fee to compensate financial
intermediaries for the sale of fund shares to their customers. The funds'
distributor pays intermediaries that sell Class C shares a 0.50% annual
distribution fee beginning one year after the shares are sold.
Additional Payments to Financial Intermediaries
The advisor and/or the distributor may pay additional compensation to financial
intermediaries out of their own resources to selected intermediaries for the
purposes of promoting the sale of fund shares, maintaining share balances and/or
for sub-accounting, administrative or shareholder processing services. The
amounts of these payments could be significant, and may create an incentive for
the intermediary or its representatives to recommend or offer shares of the
funds to you. The intermediary may elevate the prominence or profile of the
funds within the intermediary's organization by, for example, placement on a
list of preferred or recommended funds, and/or granting the advisor and/or the
distributor preferential or enhanced opportunities to promote the funds in
various ways within the intermediary's organization. These payments are not
reflected in the fees and expenses listed in the "Fund Summaries" section of the
prospectus because they are not paid by the funds.
These payments are negotiated and may be based on such factors as the number or
value of First American Fund shares that the intermediary sells or may sell; the
value of the assets invested in the First American Funds by the intermediary's
customers; the type and nature of services or support furnished by the
intermediary; and/or other measures as determined from time to time by the
advisor and/or distributor. Such payments are generally asset based but also may
include the payment of a lump sum for services provided. In addition, the
advisor and/or the distributor may make payments to reimburse selected
intermediaries for items such as ticket charges (i.e., fees that an intermediary
charges its representatives for effecting transactions in fund shares),
operational charges, literature printing and/or distribution costs, and
networking fees.
The advisor and/or distributor may make other payments or allow other
promotional incentives to financial intermediaries to the extent permitted by
SEC and FINRA rules and by other applicable laws and regulations.
You can ask your financial intermediary for information about any payments it
receives from the advisor and/or the distributor and from the funds, and any
services your intermediary provides, as well as about fees and/or commissions
your intermediary charges. You can also find more details about payments made by
the advisor, and/or the distributor in the funds' SAI.
PURCHASE, REDEMPTION, AND EXCHANGE PROCEDURES
To help the government fight the funding of terrorism and money laundering
activities, Federal law requires all financial institutions to obtain, verify,
and record information that identifies each person who opens an account.
As a result, when you open an account, we will ask for your name, permanent
street address, date of birth, and social security or taxpayer identification
number. Addresses containing a P.O. Box only will not be accepted. We may also
ask for other identifying documents or information.
19
Prospectus - First American Tax Free Income Funds
Policies and Services
Purchasing, Redeeming, and Exchanging Shares continued
Purchasing Class A and Class C Shares
You can become a shareholder in any of the funds by making the following minimum
initial or additional investments.
<Table>
<Caption>
Minimum Minimum
Initial Additional
Account Types Investment Investment
- --------------------------------------------------------
Uniform Gift to Minors Act
(UGMA)/Uniform Transfers to
Minors Act (UTMA) accounts $ 500 $ 25
All other accounts $1,000 $100
</Table>
The funds reserve the right to waive or lower purchase minimums under certain
circumstances and to reject any purchase order. As of January 1, 2009, the
minimum initial investment will increase to $2,500 for all accounts and
additional investments will be allowed for as little as $100 for all accounts.
By Phone. You can purchase shares by calling your financial intermediary, if it
has a sales agreement with the funds' distributor. Once the initial minimum
investment has been made, you can also place purchase orders in amounts equal to
or greater than the minimum additional investment amount for your account type
by calling Investor Services at 800 677-FUND. Funds will be transferred
electronically from your bank account through the Automated Clearing House (ACH)
network. Before making a purchase by electronic funds transfer, you must submit
a new account form to the funds and elect this option. Be sure to include all of
your banking information on the form.
By Wire. You can purchase shares by making a wire transfer from your bank.
Before making an initial investment by wire, you must submit a new account form
to the funds. After receiving your form, a service representative will contact
you with your account number and wiring instructions. Your order will be priced
at the next NAV, or public offering price as applicable based on your share
class, calculated after the funds' custodian receives your payment by wire.
Before making any additional purchases by wire, you should call Investor
Services at 800 677-FUND. You cannot purchase shares by wire on days when
federally chartered banks are closed.
By Mail. To purchase shares by mail, simply complete and sign a new account
form, enclose a check made payable to the fund you wish to invest in, and mail
both to:
<Table>
<Caption>
REGULAR U.S. MAIL: OVERNIGHT EXPRESS MAIL:
- -------------------------- --------------------------
First American Funds First American Funds
P.O. Box 3011 615 East Michigan Street
Milwaukee, WI 53201-3011 Milwaukee, WI 53202
</Table>
After you have established an account, you may continue to purchase shares by
mailing your check to First American Funds at the same address.
Please note the following:
- - All purchases must be drawn on a bank located within the United States and
payable in U.S. dollars to First American Funds.
- - Cash, money orders, cashier's checks in amounts less than $10,000, third-party
checks, Treasury checks, credit card checks, traveler's checks, starter
checks, and credit cards will not be accepted. We are unable to accept post
dated checks, post dated on time bill pay checks, or any conditional order or
payment.
- - If a check or ACH transaction does not clear your bank, the funds reserve the
right to cancel the purchase, and you may be charged a fee of $25 per check or
transaction. You could be liable for any losses or fees incurred by the fund
as a result of your check or ACH transaction failing to clear.
By Systematic Investment Plan. To purchase shares as part of a savings
discipline, you may add to your investment on a regular basis:
- - by having $100 or more ($25 for a retirement plan or a Uniform Gifts to Minors
Act/Uniform Transfers to Minors Act account) automatically withdrawn from your
bank account on a periodic basis and invested in fund shares, or
- - through automatic monthly exchanges of your fund into another First American
fund of the same class.
You may apply for participation in either of these programs through your
financial intermediary or by calling Investor Services at 800 677-FUND.
Redeeming Class A and Class C Shares
When you redeem shares, the proceeds are normally sent on the next business day,
but in no event more than seven days, after your request is received in proper
form.
By Phone. If you purchased shares through a financial intermediary, simply call
them to redeem your shares.
If you did not purchase shares through a financial intermediary, you may redeem
your shares by calling Investor Services at 800 677-FUND. Proceeds can be wired
to your bank account (if you have previously supplied your bank account
information to the fund) or sent to you by check. The funds charge a $15 fee for
wire redemptions, but have the right to waive this fee for shares redeemed
through certain financial intermediaries and by certain individuals. Proceeds
also can be sent directly to your bank or brokerage account via electronic funds
transfer if your bank or brokerage firm is a member of the ACH network. Credit
is usually available within 2-3 business days. The First American Funds reserve
the right to limit telephone redemptions to $50,000 per account per day.
20
Prospectus - First American Tax Free Income Funds
Policies and Services
Purchasing, Redeeming, and Exchanging Shares continued
If you recently purchased your shares by check or through the ACH network,
proceeds from the sale of those shares may not be available until your check or
ACH payment has cleared, which may take up to 15 calendar days from the date of
purchase.
By Mail. To redeem shares by mail, send a written request to your financial
intermediary, or to the fund at the following address:
<Table>
<Caption>
REGULAR U.S. MAIL: OVERNIGHT EXPRESS MAIL:
- -------------------------- --------------------------
First American Funds First American Funds
P.O. Box 3011 615 East Michigan Street
Milwaukee, WI 53201-3011 Milwaukee, WI 53202
</Table>
Your request should include the following information:
- - name of the fund
- - account number
- - dollar amount or number of shares redeemed
- - name on the account
- - signatures of all registered account owners
After you have established your account, signatures on a written request must be
guaranteed if:
- - you would like redemption proceeds to be paid to any person, address, or bank
account other than that on record.
- - you would like the redemption check mailed to an address other than the
address on the fund's records, or you have changed the address on the fund's
records within the last 30 days.
- - your redemption request is in excess of $50,000.
- - bank information related to an automatic investment plan, telephone purchase
or telephone redemption is changed.
In addition to the situations described above, the funds reserve the right to
require a signature guarantee in other instances based on the circumstances of a
particular situation.
A signature guarantee assures that a signature is genuine and protects
shareholders from unauthorized account transfers. Banks, savings and loan
associations, trust companies, credit unions, broker-dealers, and member firms
of a national securities exchange may guarantee signatures. Call your financial
intermediary to determine if it has this capability. A notary public is not an
acceptable signature guarantor.
Proceeds from a written redemption request will be sent to you by check unless
another form of payment is requested.
By Wire. You can call or write to have redemption proceeds sent to a bank
account. See the policies for redeeming shares by phone or by mail. Before
requesting to have redemption proceeds sent to a bank account, please make sure
the funds have your bank account information on file. If the funds do not have
this information, you will need to send written instructions with your bank's
name and a voided check or pre-printed savings account deposit slip. You must
provide written instructions signed by all fund and bank account owners, and
each individual must have their signature guaranteed.
By Systematic Withdrawal Plan. If your account has a value of $5,000 or more,
you may redeem a specific dollar amount from your account on a regular basis.
You may set up systematic withdrawals when you complete a new account form or by
calling your financial intermediary.
You should not make systematic withdrawals if you plan to continue investing in
a fund, due to sales charges and tax liabilities.
Exchanging Class A and Class C Shares
If your investment goals or your financial needs change, you may move from one
First American Fund to another First American Fund. There is no fee to exchange
shares.
Generally, you may exchange your shares only for the same class of shares of the
other fund, with certain exceptions, including:
- - You may exchange your Class A shares for Class Y shares of the same or another
First American Fund if you subsequently become eligible to purchase Class Y
shares.
- - If you are no longer eligible to hold Class Y shares, you may exchange your
shares for Class A shares at net asset value. Class A shares have higher
expenses than Class Y shares.
Exchanges are made based on the net asset value per share of each fund at the
time of the exchange. When you exchange your Class A shares of one of the funds
for Class A shares of another First American Fund, you do not have to pay a
sales charge. When you exchange your Class C shares for Class C shares of
another First American Fund, the time you held the shares of the "old" fund will
be added to the time you hold the shares of the "new" fund for purposes of
determining your CDSC.
Before exchanging into any fund, be sure to read its prospectus carefully. A
fund may change or cancel its exchange policies at any time. You will be
notified of any changes. The funds have the right to limit exchanges that are
deemed to constitute short-term trading. See "Additional Information on
Purchasing, Redeeming and Exchanging Shares -- Short-Term Trading of Fund
Shares" below.
By Phone. If both funds have identical shareholder registrations, you may
exchange shares by calling your financial intermediary or by calling the funds
directly at 800 677-FUND.
By Mail. To exchange shares by written request, please follow the procedures
under "Redeeming Class A and Class C Shares" above. Be sure to include the names
of both funds involved in the exchange.
21
Prospectus - First American Tax Free Income Funds
Policies and Services
Purchasing, Redeeming, and Exchanging Shares continued
By Systematic Exchange Plan. You may add to your investment on a regular basis
through automatic monthly exchanges of one First American fund into another
First American fund of the same class. You may apply for participation in this
program through your financial intermediary or by calling Investor Services at
800 677-FUND.
Purchasing, Redeeming, and Exchanging Class Y Shares
You may purchase or redeem shares by calling your financial intermediary. When
purchasing shares, payment must be made by wire transfer, which can be arranged
by your financial intermediary. You cannot purchase shares by wire on days when
federally chartered banks are closed. The funds reserve the right to impose
minimum investment amounts on clients of financial intermediaries that charge
the funds or the advisor transaction or recordkeeping fees.
If the fund or an authorized financial intermediary receives your redemption
request by 3:00 p.m. Central time, payment of your redemption proceeds will
ordinarily be made by wire on the next business day. It is possible, however,
that payment could be delayed by up to seven days.
Exchanging Class Y Shares. If your investment goals or your financial needs
change, you may exchange your shares for Class Y shares of another First
American Fund. Exchanges are made at the net asset value per share of each fund
at the time of the exchange. There is no fee to exchange shares. If you are no
longer eligible to hold Class Y shares, you may exchange your shares for Class A
shares at net asset value. Class A shares have higher expenses than Class Y
shares.
To exchange your shares, call your financial intermediary.
Before exchanging into any fund, be sure to read its prospectus carefully. A
fund may change or cancel its exchange policies at any time. You will be
notified of any changes. The funds have the right to limit exchanges that are
deemed to constitute short-term trading. See "Additional Information on
Purchasing, Redeeming and Exchanging Shares -- Short-Term Trading of Fund
Shares" below.
Systematic Transactions. You may add to your investment, or redeem a specific
dollar amount from your account, on a regular, automatic basis through a
systematic investment or withdrawal plan. You may also move from one First
American Fund to another First American Fund of the same class on a regular
basis through automatic monthly exchanges. You may apply for participation in
these programs through your financial intermediary.
You should not make systematic withdrawals if you plan to continue investing in
a fund, due to sales charges and tax liabilities.
ADDITIONAL INFORMATION ON PURCHASING, REDEEMING, AND EXCHANGING SHARES
Calculating Net Asset Value
The funds generally calculate their NAV as of 3:00 p.m. Central time every day
the New York Stock Exchange is open. The fund does not calculate its NAV on
national holidays, or any other days, on which the NYSE is closed for trading.
A fund's NAV is equal to the market value of its investments and other assets,
less any liabilities, divided by the number of fund shares. Security valuations
for the funds' investments are furnished by one or more independent pricing
services that have been approved by the funds' board of directors. If market
prices are not readily available for an investment or if the advisor believes
they are unreliable, fair value prices may be determined in good faith using
procedures approved by the funds' board of directors. Under these procedures,
fair values are generally determined by a pricing committee appointed by the
board of directors. The types of securities for which such fair value pricing
might be required include, but are not limited to:
- - Securities where an event occurs after the close of the market in which such
security principally trades, but before NAV is determined, that will affect
the value of such security, or the closing value is otherwise deemed
unreliable;
- - Securities whose trading has been halted or suspended;
- - Fixed-income securities that have gone into default and for which there is no
current market value quotation; and
- - Securities with limited liquidity, including certain high-yield securities or
securities that are restricted as to transfer or resale.
Valuing securities at fair value involves greater reliance on judgment than
valuing securities that have readily available market quotations. There can be
no assurance that a fund could obtain the fair value assigned to a security if
it were to sell the security at approximately the time at which the fund
determines its NAV per share.
Short-Term Trading of Fund Shares
The funds discourage purchases and redemptions of their shares in response to
short-term fluctuations in the securities markets. The funds' board of directors
has adopted policies and procedures designed to detect and deter short-term
trading in the funds' shares that may disadvantage long-term fund shareholders.
These policies are described below. The funds will not knowingly accommodate
trading in the funds' shares in violation of these policies.
Risks Associated with Short-Term Trading. Short-term trading in a fund's
shares, particularly in larger amounts, may be detrimental to long-term
shareholders of the fund. Depending on various factors, including the size of a
fund, the
22
Prospectus - First American Tax Free Income Funds
Policies and Services
Purchasing, Redeeming, and Exchanging Shares continued
amount of assets the fund typically maintains in cash or cash equivalents, the
dollar amount and number and frequency of trades, and the types of securities in
which the fund typically invests, short-term trading may interfere with the
efficient management of the fund's portfolio, increase the fund's transaction
costs, administrative costs and taxes, and/or impact the fund's performance.
In addition, the nature of a fund's portfolio holdings may allow a shareholder
engaging in a short-term trading strategy to take advantage of possible delays
between the change in the value of a fund's portfolio holdings and the
reflection of that change in the net asset value of the fund's shares. Such a
delay may occur in funds that have significant investments in foreign
securities, where the value of those securities is established some time before
the fund calculates its own share price, or in funds that hold significant
investments in small-cap securities, high-yield (junk) bonds and other types of
investments that may not be frequently traded. This type of short-term trading
is sometimes referred to as "arbitrage market timing," and there is the
possibility that such trading may dilute the value of fund shares if redeeming
shareholders receive proceeds (and buying shareholders receive shares) based
upon net asset values which do not reflect appropriate fair value prices.
Short-Term Trading Policies. The funds' advisor monitors trading in fund shares
in an effort to identify short-term trading activity that may disadvantage long-
term shareholders. Only transactions that exceed a certain dollar threshold that
has been determined to be potentially disruptive to the management of a fund are
subject to monitoring. It is the policy of the funds to permit no more than one
round trip by an investor during any 90-calendar-day period. A round trip is
defined as a purchase into or redemption out of a fund (including purchases or
redemptions accomplished by an exchange) paired with an opposite direction
redemption out of or purchase into the same fund within 10 calendar days, in a
dollar amount that exceeds the monitoring threshold. If the advisor determines
that a shareholder has made more than one round trip during any 90-calendar-day
period, the shareholder conducting such trading will, in less serious instances,
be given an initial warning to discontinue such trading. In more serious
instances (generally involving larger dollar amounts), or in the case of a
second violation after an initial warning has been given, the shareholder may be
temporarily or permanently barred from making future purchases into one or all
of the funds or, alternatively, the funds may limit the amount, number or
frequency of any future purchases and/or the method by which the shareholder may
request future purchases (including purchases by an exchange or transfer between
a fund and any other fund). In addition to the foregoing sanctions, the funds
reserve the right to reject any purchase order at any time and for any reason,
without prior written notice. The funds also reserve the right to revoke the
exchange privileges of any person at any time and for any reason. In making
determinations concerning the rejection of purchase orders and the revocation of
exchange privileges, and in considering which sanctions to impose, the funds may
consider an investor's trading history in any of the First American Funds, in
non-First American mutual funds, or in accounts under a person's common
ownership or control.
Certain transactions are not subject to the funds' short-term trading policies.
These include transactions such as systematic redemptions and purchases;
retirement plan contributions, loans and distributions (including hardship
withdrawals); purchase transactions involving transfers of assets, rollovers,
Roth IRA conversions and IRA re-characterizations; regular portfolio re-
balancings in fee-based programs of registered investment advisors, financial
planners and registered broker-dealers; and similar transactions.
Fund shares are frequently held through omnibus account arrangements, whereby a
broker-dealer, investment advisor, retirement plan sponsor or other financial
intermediary maintains an omnibus account with a fund for trading on behalf of
its customers. The funds generally seek to apply their short-term trading
policies and procedures to these omnibus account arrangements, and monitor
trading activity at the omnibus account level to attempt to identify disruptive
trades. Under agreements that the funds (or the funds' distributor) have entered
into with intermediaries, the funds may request transaction information from
intermediaries at any time in order to determine whether there has been short-
term trading by the intermediaries' customers. The funds will request that the
intermediary provide additional account level detail (or participant level
detail in the case of retirement plans) to the funds if more than one round trip
in any 90 day period is detected at the omnibus or plan level and such round
trips appear to be (a) attributable to an individual shareholder or plan
participant and (b) potentially detrimental to the respective fund and its
shareholders based on such factors as the time between transactions, the size of
the transactions and the type of fund involved. If short-term trading is
detected at the individual account or participant level, the funds will request
that the intermediary take appropriate action to curtail the activity. If the
intermediary does not take action, the funds will take such steps as are
reasonably practicable to curtail the excessive trading, including terminating
the relationship with the intermediary if necessary. An intermediary may apply
its own short-term trading policies and procedures, which may be more or less
restrictive than the funds' policies and procedures. If you purchase or sell
fund shares through an intermediary, you should contact them to determine
whether they impose different requirements or restrictions.
Telephone Transactions
The funds and their agents will not be responsible for any losses that may
result from acting on wire or telephone instructions that they reasonably
believe to be genuine. The funds and their agents will each follow reasonable
procedures to confirm that instructions received by telephone are genuine, which
may include taping telephone conversations.
23
Prospectus - First American Tax Free Income Funds
Policies and Services
Purchasing, Redeeming, and Exchanging Shares continued
Once a telephone transaction has been placed, it cannot be canceled or modified.
It may be difficult to reach the funds by telephone during periods of unusual
market activity. If you are unable to reach the funds or their agents by
telephone, please consider sending written instructions.
Accounts with Low Balances
The funds reserve the right to liquidate or assess a low balance fee to any
account holding a balance that is less than the account balance minimum of $500
for any reason, including market fluctuation.
Annually, on or about the second Wednesday of August, the funds will assess a
$15 low balance fee to certain retirement accounts, education savings plans, and
UGMA/UTMA accounts that have balances under the account balance minimum. At the
same time, other accounts with balances under the account balance minimum will
be liquidated, with proceeds being mailed to the address of record. Shareholders
will receive a communication reminding them of this scheduled action in their
second quarter account statements, thereby providing time to ensure that
balances are at or above the account balance minimum prior to the assessment of
the low balance fee or liquidation of low balance accounts.
Redemption in Kind
Generally, proceeds from redemption requests will be paid in cash. However, to
minimize the effect of large redemption requests on a fund and its remaining
shareholders, if you redeem more than $250,000 of a fund's assets within a 30-
day period, each fund reserves the right to pay part or all of the proceeds from
a redemption request in a proportionate share of securities from the fund's
portfolio instead of cash. The advisor will value these securities in accordance
with the pricing methods employed to calculate the fund's net asset value per
share. If you receive redemption proceeds in kind, you should expect to incur
transaction costs upon disposition of the securities received in the redemption.
In addition, you will bear the market risk associated with these securities
until their disposition.
24
Prospectus - First American Tax Free Income Funds
Policies and Services
Managing Your Investment
STAYING INFORMED
Shareholder Reports
Shareholder reports are mailed twice a year. They include financial statements
and performance information, and, on an annual basis, a message from your
portfolio managers and the report of independent registered public accounting
firm.
In an attempt to reduce shareholder costs and help eliminate duplication, the
funds will try to limit their mailings 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 Investor Services at 800 677-FUND.
Statements and Confirmations
Statements summarizing activity in your account are mailed quarterly.
Confirmations generally are mailed following each purchase or sale of fund
shares, but some transactions, such as systematic purchases and dividend
reinvestments, are reported on your account statement. Generally, the funds do
not send statements for shares held in a brokerage account or to individuals who
have their shares held in an omnibus account, such as retirement plan
participants. Please review your statements and confirmations as soon as you
receive them and promptly report any discrepancies to your financial
intermediary or to Investor Services at 800 677-FUND.
DIVIDENDS AND DISTRIBUTIONS
Dividends from a fund's net investment income are declared daily and paid
monthly. Any capital gains are distributed at least once each year. If you place
a purchase order or an exchange order for fund shares by the time the fund
determines its NAV, you will begin to accrue dividends on the next business day.
Dividend and capital gain distributions will be reinvested in additional shares
of the fund paying the distribution, unless you request that distributions be
reinvested in another First American Fund or paid in cash. This request may be
made on your new account form, by contacting your financial intermediary, or by
calling Investor Services at 800 677-FUND. If you request that your
distributions be paid in cash but those distributions cannot be delivered
because of an incorrect mailing address, or if a distribution check remains
uncashed for six months, the undelivered or uncashed distributions and all
future distributions will be reinvested in fund shares at the current NAV.
TAXES
Some of the tax consequences of investing in the funds are discussed below. More
information about taxes is in the SAI. However, because everyone's tax situation
is unique, always consult your tax professional about federal, state, and local
tax consequences.
Federal Taxes on Distributions
Each fund intends to meet certain federal tax requirements so that distributions
of tax-exempt interest income may be treated as "exempt-interest dividends."
These dividends are not subject to regular federal income tax. However, each
fund may invest up to 20% of its net assets in municipal securities the interest
on which is subject to the federal alternative minimum tax. Any portion of
exempt-interest dividends attributable to interest on these securities may
increase some shareholders' alternative minimum tax. The funds expect that their
distributions will consist primarily of exempt-interest dividends. Tax Free
Fund's exempt-interest dividends generally will be subject to state or local
income taxes.
Distributions paid from any interest income that is not tax-exempt and from any
net realized capital gains will be taxable whether you reinvest those
distributions or take them in cash. Distributions paid from taxable interest
income will be taxed as ordinary income and not as "qualifying dividends" that
are taxed at the same rate as long-term capital gains. Distributions of a fund's
net long-term capital gains are taxable as long-term gains, regardless of how
long you have held your shares.
Federal Taxes on Transactions
The sale of fund shares, or the exchange of one fund's shares for shares of
another fund, will be a taxable event and may result in a capital gain or loss.
The gain or loss will be considered long-term if you have held your shares for
more than one year. A gain or loss on shares held for one year or less is
considered short-term and is taxed at the same rates as ordinary income.
If, in redemption of his or her shares, a shareholder receives a distribution of
securities instead of cash, the shareholder will be treated as receiving an
amount equal to the fair market value of the securities at the time of the
distribution for purposes of determining capital gain or loss on the redemption,
and will also acquire a basis in the shares for federal income tax purposes
equal to their fair market value.
The exchange of one class of shares for another class of shares in the same fund
will not be taxable.
State Taxes on Distributions
Arizona Income Taxation. Dividends paid by Arizona Tax Free Fund will be exempt
from Arizona income taxes for individuals, trust, estates, and corporations to
the extent they are derived from interest on Arizona municipal securities.
California Income Taxation. California Tax Free Fund intends to comply with
certain state tax requirements so that dividends it pays that are attributable
to interest on California municipal securities will be excluded from the
California taxable income of individuals, trusts, and estates. To meet these
requirements, at least 50% of the value of the fund's total assets
25
Prospectus - First American Tax Free Income Funds
Policies and Services
Managing Your Investment continued
must consist of obligations which pay interest that is exempt from California
personal income tax. Exempt-interest dividends are not excluded from the
California taxable income of corporations and financial institutions. In
addition, dividends derived from interest paid on California municipal bonds
(including securities treated for federal purposes as private activity bonds)
will not be subject to the alternative minimum tax that California imposes on
individuals, trusts, and estates.
Colorado Income Taxation. Dividends paid by Colorado Tax Free Fund will be
exempt from Colorado income taxes for individuals, trusts, estates, and
corporations to the extent that they are derived from interest on Colorado
municipal securities. In addition, dividends derived from interest on Colorado
municipal securities (including securities treated for federal purposes as
private activity bonds) will not be subject to the alternative minimum tax that
Colorado imposes on individuals, trusts, and estates.
Minnesota Income Taxation. Minnesota Tax Free Fund intends to comply with
certain state tax requirements so that dividends it pays that are attributable
to interest on Minnesota municipal securities will be excluded from the
Minnesota taxable net income of individuals, estates, and trusts. To meet these
requirements, at least 95% of the exempt-interest dividends paid by the fund
must be derived from interest income on Minnesota municipal securities. A
portion of the fund's dividends may be subject to the Minnesota alternative
minimum tax. Exempt-interest dividends are not excluded from the Minnesota
taxable income of corporations and financial institutions.
Missouri Income Taxation. Dividends paid by Missouri Tax Free Fund will be
exempt from Missouri income taxes for individuals, estates, trusts, and
corporations to the extent they are derived from interest on Missouri municipal
obligations.
Nebraska Income Taxation. Dividends paid by Nebraska Tax Free Fund will be
exempt from Nebraska income taxes for individuals, trusts, estates, and
corporations to the extent they are derived from interest on Nebraska municipal
obligations. A portion of the fund's dividends may be subject to the Nebraska
minimum tax.
Ohio Income Taxation. Dividends paid by Ohio Tax Free Fund will be exempt from
Ohio income taxes for individuals, trusts, estates, and corporations to the
extent they are derived from interest on Ohio municipal obligations.
More information about tax considerations that may affect the funds and their
shareholders appears in the funds' SAI.
26
Prospectus - First American Tax Free Income Funds
Additional Information
Management
FAF Advisors, Inc. is the funds' investment advisor. FAF Advisors provides
investment management services to individuals and institutions, including
corporations, foundations, pensions, and retirement plans. As of September 30,
2008, FAF Advisors had more than $99 billion in assets under management,
including investment company assets of more than $86 billion. As investment
advisor, FAF Advisors manages the funds' business and investment activities,
subject to the authority of the funds' board of directors.
Each fund pays the investment advisor a monthly management fee for providing
investment advisory services. The table below reflects management fees paid to
the investment advisor, after taking into account any fee waivers, for the
funds' most recently completed fiscal year.
Management fee
as a % of average
daily net assets
- -----------------------------------------------------
ARIZONA TAX FREE FUND 0.00%
CALIFORNIA TAX FREE FUND 0.00%
COLORADO TAX FREE FUND 0.00%
MINNESOTA TAX FREE FUND 0.35%
MISSOURI TAX FREE FUND 0.35%
NEBRASKA TAX FREE FUND 0.00%
OHIO TAX FREE FUND 0.00%
TAX FREE FUND 0.42%
- -----------------------------------------------------
A discussion regarding the basis for the board's approval of the funds'
investment advisory agreement appears in the funds' annual report to
shareholders for the fiscal year ended June 30, 2008.
Direct Correspondence to:
First American Funds
P.O. Box 1330
Minneapolis, MN 55440-1330
Investment Advisor
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
Distributor
Quasar Distributors, LLC
615 E. Michigan Street
Milwaukee, WI 53202
ADDITIONAL COMPENSATION
FAF Advisors, U.S. Bank National Association (U.S. Bank) and other affiliates of
U.S. Bancorp may act as fiduciary with respect to plans subject to the Employee
Retirement Income Security Act of 1974 (ERISA) and other trust and agency
accounts that invest in the First American Funds. As described above, FAF
Advisors receives compensation for acting as the funds' investment advisor. FAF
Advisors, U.S. Bank and their affiliates also receive compensation in connection
with the following:
Custody Services. U.S. Bank provides custody services to the funds. U.S. Bank
is paid monthly fees equal, on an annual basis, to 0.005% of each fund's average
daily net assets.
Administration Services. FAF Advisors and its affiliate, U.S. Bancorp Fund
Services, LLC (Fund Services), act as the funds' administrator and sub-
administrator, respectively, providing administration services that include
general administrative and accounting services, blue sky services and
shareholder services. For such services, each fund pays FAF Advisors the fund's
pro rata portion of up to 0.25% of the aggregate average daily net assets of all
open-end funds in the First American family of funds. FAF Advisors pays Fund
Services a portion of its fee, as agreed to from time to time. In addition to
these fees, the funds may reimburse FAF Advisors for any out-of-pocket expenses
incurred in providing administration services.
Transfer Agency Services. Fund Services provides transfer agency and dividend
disbursing services, as well as certain shareholder services, to the funds. Fund
Services receives fees for transfer agency and dividend disbursing services on a
per shareholder account basis, subject to a minimum per share class fee. In
addition, the funds may reimburse Fund Services for any out-of-pocket expenses
incurred in providing transfer agency services.
Distribution Services. Quasar Distributors, LLC (Quasar), an affiliate of FAF
Advisors, receives distribution and shareholder servicing fees for acting as the
funds' distributor.
Other Compensation. To the extent that fund shares are held through U.S. Bank
or its broker-dealer affiliate, U.S. Bancorp Investments, Inc., those entities
may receive distribution and/or shareholder servicing fees from the funds'
distributor as well as other payments from the funds' distributor and/or advisor
as described above under "Policies and Services -- Purchasing, Redeeming, and
Exchanging Shares -- Additional Payments to Financial Intermediaries."
27
Prospectus - First American Tax Free Income Funds
Additional Information
Management continued
PORTFOLIO MANAGEMENT
The portfolio managers primarily responsible for the funds' management are set
forth below, followed by the portfolio managers' biographies.
Arizona Tax Free Fund. Michael S. Hamilton has served as the primary portfolio
manager for the fund since June 2007 and Douglas J. White has co-managed the
fund since February 2000.
California Tax Free Fund. Christopher L. Drahn has served as the primary
portfolio manager for the fund since May 2005, and prior to that he co-managed
the fund from February 2000 to May 2005. Michael S. Hamilton has co-managed the
fund since May 2005, and prior to that he served as the primary portfolio
manager for the fund from December 2002 to May 2005.
Colorado Tax Free Fund. Christopher L. Drahn has served as the primary
portfolio manager for the fund since June 2007, and, prior to that, co-managed
the fund since February 2000. Michael L. Welle has co-managed the fund since
June 2007.
Minnesota Tax Free Fund. Douglas J. White has served as the primary portfolio
manager for the fund since July 1988 and Christopher L. Drahn has co-managed the
fund since February 2001.
Missouri Tax Free Fund. Christopher L. Drahn has served as the primary
portfolio manager for the fund since December 2002 and Douglas J. White has co-
managed the fund since September 2001.
Nebraska Tax Free Fund. Michael L. Welle has served as the primary portfolio
manager for the fund since June 2007 and Christopher L. Drahn has co-managed the
fund since February 2001.
Ohio Tax Free Fund. Michael S. Hamilton has served as the primary portfolio
manager for the fund since December 2002 and Christopher L. Drahn has co-managed
the Fund since April 2002.
Tax Free Fund. Douglas J. White has served as the primary portfolio manager for
the fund since September 2001 and Christopher L. Drahn has co-managed the fund
since June 2007.
PORTFOLIO MANAGER BIOGRAPHIES
Christopher L. Drahn, CFA, Senior Fixed-Income Portfolio Manager, entered the
financial services industry when he joined FAF Advisors in 1980.
Michael S. Hamilton, Senior Fixed-Income Portfolio Manager, entered the
financial services industry when he joined FAF Advisors in 1989.
Michael L. Welle, CFA, Fixed-Income Trader, Portfolio Manager, entered the
financial services industry when he joined FAF Advisors in 1992.
Douglas J. White, CFA, Head of Tax Exempt Fixed Income, entered the financial
services industry in 1983 and joined FAF Advisors in 1987.
The SAI provides additional information about the portfolio managers'
compensation, other accounts managed by the portfolio managers, and the
portfolio managers' ownership of securities in the funds.
28
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights
The tables that follow present performance information about the Class A, Class
C, and Class Y shares of each fund. This information is intended to help you
understand each fund's financial performance for the past five years or, if
shorter, the period of the fund's operations. Some of this information reflects
financial results for a single fund share held throughout the period. Total
returns in the tables represent the rate that you would have earned or lost on
an investment in the fund, excluding sales charges and assuming you reinvested
all of your dividends and distributions.
The information below has been derived from the financial statements audited by
Ernst & Young LLP, an independent registered public accounting firm, whose
report, along with the funds' financial statements, is included in the funds'
annual report, which is available upon request.
Arizona Tax Free Fund
<Table>
<Caption>
Fiscal year
ended Fiscal period Fiscal year ended September
June 30, ended 30,
CLASS A SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $10.79 $10.85 $11.19 $11.42 $11.33 $ 11.41
------ ------ ------ ------ ------ -------
Investment Operations:
Net Investment Income 0.45 0.46 0.33 0.46 0.49 0.46
Realized and Unrealized Gains (Losses) on
Investments (0.33) (0.01) (0.25) (0.07) 0.12 (0.06)
------ ------ ------ ------ ------ -------
Total From Investment Operations 0.12 0.45 0.08 0.39 0.61 0.40
------ ------ ------ ------ ------ -------
Less Distributions:
Dividends (from net investment income) (0.45) (0.45) (0.33) (0.49) (0.47) (0.45)
Distributions (from net realized gains) (0.03) (0.06) (0.09) (0.13) (0.05) (0.03)
------ ------ ------ ------ ------ -------
Total Distributions (0.48) (0.51) (0.42) (0.62) (0.52) (0.48)
------ ------ ------ ------ ------ -------
Net Asset Value, End of Period $10.43 $10.79 $10.85 $11.19 $11.42 $ 11.33
====== ====== ====== ====== ====== =======
Total Return(2) 1.10% 4.12% 0.73% 3.49% 5.50% 3.61%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $6,705 $8,359 $9,041 $9,547 $9,008 $11,928
Ratio of Expenses to Average Net Assets 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of Net Investment Income to Average Net
Assets 4.20% 4.11% 4.02% 4.14% 4.16% 4.03%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.63% 1.64% 1.47% 1.18% 1.12% 1.09%
Ratio of Net Investment Income to Average Net
Assets (excluding waivers) 3.32% 3.22% 3.30% 3.71% 3.79% 3.69%
Portfolio Turnover Rate 30% 25% 47% 20% 21% 37%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
29
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
Arizona Tax Free Fund (CONTINUED)
<Table>
<Caption>
Fiscal year
ended Fiscal period Fiscal year ended September
June 30, ended 30,
CLASS C SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $10.78 $10.84 $11.18 $11.41 $11.31 $11.40
------ ------ ------ ------ ------ ------
Investment Operations:
Net Investment Income 0.41 0.41 0.30 0.42 0.43 0.42
Realized and Unrealized Gains (Losses) on
Investments (0.34) (0.01) (0.25) (0.08) 0.14 (0.08)
------ ------ ------ ------ ------ ------
Total From Investment Operations 0.07 0.40 0.05 0.34 0.57 0.34
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends (from net investment income) (0.41) (0.40) (0.30) (0.44) (0.42) (0.40)
Distributions (from net realized gains) (0.03) (0.06) (0.09) (0.13) (0.05) (0.03)
------ ------ ------ ------ ------ ------
Total Distributions (0.44) (0.46) (0.39) (0.57) (0.47) (0.43)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $10.41 $10.78 $10.84 $11.18 $11.41 $11.31
====== ====== ====== ====== ====== ======
Total Return(2) 0.61% 3.71% 0.42% 3.08% 5.17% 3.10%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $1,376 $1,541 $1,358 $1,628 $1,588 $1,857
Ratio of Expenses to Average Net Assets 1.15% 1.15% 1.15% 1.15% 1.15% 1.15%
Ratio of Net Investment Income to Average Net
Assets 3.79% 3.70% 3.62% 3.74% 3.76% 3.63%
Ratio of Expenses to Average Net Assets
(excluding waivers) 2.03% 2.12% 2.22% 1.93% 1.87% 1.84%
Ratio of Net Investment Income to Average Net
Assets (excluding waivers) 2.91% 2.73% 2.55% 2.96% 3.04% 2.94%
Portfolio Turnover Rate 30% 25% 47% 20% 21% 37%
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
<Table>
<Caption>
Fiscal year
ended Fiscal period Fiscal year ended September
June 30, ended 30,
CLASS Y SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $ 10.80 $ 10.85 $ 11.19 $ 11.43 $11.33 $11.41
------- ------- ------- ------- ------ ------
Investment Operations:
Net Investment Income 0.47 0.48 0.35 0.50 0.50 0.48
Realized and Unrealized Gains (Losses) on
Investments (0.33) -- (0.25) (0.09) 0.15 (0.06)
------- ------- ------- ------- ------ ------
Total From Investment Operations 0.14 0.48 0.10 0.41 0.65 0.42
------- ------- ------- ------- ------ ------
Less Distributions:
Dividends (from net investment income) (0.48) (0.47) (0.35) (0.52) (0.50) (0.47)
Distributions (from net realized gains) (0.03) (0.06) (0.09) (0.13) (0.05) (0.03)
------- ------- ------- ------- ------ ------
Total Distributions (0.51) (0.53) (0.44) (0.65) (0.55) (0.50)
------- ------- ------- ------- ------ ------
Net Asset Value, End of Period $ 10.43 $ 10.80 $ 10.85 $ 11.19 $11.43 $11.33
======= ======= ======= ======= ====== ======
Total Return(2) 1.26% 4.48% 0.92% 3.65% 5.85% 3.86%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $17,522 $19,329 $15,614 $14,035 $9,520 $9,244
Ratio of Expenses to Average Net Assets 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of Net Investment Income to Average Net
Assets 4.45% 4.36% 4.27% 4.39% 4.42% 4.28%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.38% 1.39% 1.22% 0.93% 0.87% 0.84%
Ratio of Net Investment Income to Average Net
Assets (excluding waivers) 3.57% 3.47% 3.55% 3.96% 4.05% 3.94%
Portfolio Turnover Rate 30% 25% 47% 20% 21% 37%
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return would have been lower had certain expenses not been waived.
30
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
California Tax Free Fund
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS A SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $ 10.98 $ 10.96 $ 11.24 $ 11.40 $11.40 $ 11.63
------- ------- ------- ------- ------ -------
Investment Operations:
Net Investment Income 0.46 0.45 0.33 0.44 0.46 0.47
Realized and Unrealized Gains
(Losses) on Investments (0.23) 0.06 (0.26) (0.05) 0.08 (0.16)
------- ------- ------- ------- ------ -------
Total From Investment Operations 0.23 0.51 0.07 0.39 0.54 0.31
------- ------- ------- ------- ------ -------
Less Distributions:
Dividends (from net investment
income) (0.46) (0.45) (0.33) (0.44) (0.46) (0.47)
Distributions (from net realized
gains) (0.04) (0.04) (0.02) (0.11) (0.08) (0.07)
------- ------- ------- ------- ------ -------
Total Distributions (0.50) (0.49) (0.35) (0.55) (0.54) (0.54)
------- ------- ------- ------- ------ -------
Net Asset Value, End of Period $ 10.71 $ 10.98 $ 10.96 $ 11.24 $11.40 $ 11.40
======= ======= ======= ======= ====== =======
Total Return(2) 2.11% 4.62% 0.63% 3.50% 4.93% 2.85%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $12,076 $11,375 $10,783 $11,888 $9,513 $11,143
Ratio of Expenses to Average Net
Assets 0.67% 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of Net Investment Income to
Average
Net Assets 4.19% 4.00% 3.99% 3.88% 4.03% 4.16%
Ratio of Expenses to Average Net
Assets (excluding waivers) 1.46% 1.46% 1.34% 1.15% 1.09% 1.08%
Ratio of Net Investment Income to
Average
Net Assets (excluding waivers) 3.40% 3.29% 3.40% 3.48% 3.69% 3.83%
Portfolio Turnover Rate 45% 36% 24% 14% 16% 20%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS C SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $10.99 $10.97 $11.25 $11.41 $11.41 $11.64
------ ------ ------ ------ ------ ------
Investment Operations:
Net Investment Income 0.40 0.41 0.30 0.40 0.41 0.43
Realized and Unrealized Gains
(Losses) on Investments (0.22) 0.05 (0.26) (0.05) 0.09 (0.16)
------ ------ ------ ------ ------ ------
Total From Investment Operations 0.18 0.46 0.04 0.35 0.50 0.27
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends (from net investment
income) (0.41) (0.40) (0.30) (0.40) (0.42) (0.43)
Distributions (from net realized
gains) (0.04) (0.04) (0.02) (0.11) (0.08) (0.07)
------ ------ ------ ------ ------ ------
Total Distributions (0.45) (0.44) (0.32) (0.51) (0.50) (0.50)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $10.72 $10.99 $10.97 $11.25 $11.41 $11.41
====== ====== ====== ====== ====== ======
Total Return(2) 1.61% 4.17% 0.33% 3.11% 4.52% 2.45%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $2,480 $1,507 $3,592 $3,068 $1,294 $1,101
Ratio of Expenses to Average Net Assets 1.15% 1.15% 1.15% 1.15% 1.15% 1.15%
Ratio of Net Investment Income to
Average Net Assets 3.68% 3.60% 3.60% 3.47% 3.65% 3.75%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.85% 1.98% 2.09% 1.90% 1.84% 1.83%
Ratio of Net Investment Income to
Average Net Assets (excluding
waivers) 2.98% 2.77% 2.66% 2.72% 2.96% 3.07%
Portfolio Turnover Rate 45% 36% 24% 14% 16% 20%
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
31
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
California Tax Free Fund (CONTINUED)
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS Y SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $ 10.98 $ 10.97 $ 11.25 $ 11.40 $ 11.40 $ 11.63
------- ------- ------- ------- ------- -------
Investment Operations:
Net Investment Income 0.48 0.47 0.35 0.47 0.48 0.49
Realized and Unrealized Gains
(Losses) on Investments (0.23) 0.05 (0.26) (0.04) 0.09 (0.15)
------- ------- ------- ------- ------- -------
Total From Investment Operations 0.25 0.52 0.09 0.43 0.57 0.34
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends (from net investment
income) (0.48) (0.47) (0.35) (0.47) (0.49) (0.50)
Distributions (from net realized
gains) (0.04) (0.04) (0.02) (0.11) (0.08) (0.07)
------- ------- ------- ------- ------- -------
Total Distributions (0.52) (0.51) (0.37) (0.58) (0.57) (0.57)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 10.71 $ 10.98 $ 10.97 $ 11.25 $ 11.40 $ 11.40
======= ======= ======= ======= ======= =======
Total Return(2) 2.28% 4.78% 0.82% 3.85% 5.19% 3.11%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $30,485 $24,835 $21,767 $19,556 $16,047 $15,243
Ratio of Expenses to Average Net
Assets 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of Net Investment Income to
Average Net Assets 4.36% 4.25% 4.24% 4.12% 4.29% 4.40%
Ratio of Expenses to Average Net
Assets (excluding waivers) 1.20% 1.21% 1.09% 0.90% 0.84% 0.83%
Ratio of Net Investment Income to
Average Net Assets (excluding
waivers) 3.66% 3.54% 3.65% 3.72% 3.95% 4.07%
Portfolio Turnover Rate 45% 36% 24% 14% 16% 20%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return would have been lower had certain expenses not been waived.
32
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
Colorado Tax Free Fund
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS A SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $10.61 $10.73 $11.30 $11.52 $ 11.57 $ 11.65
------ ------ ------ ------ ------- -------
Investment Operations:
Net Investment Income 0.48 0.46 0.35 0.49 0.51 0.50
Realized and Unrealized Gains (Losses)
on Investments (0.33) (0.02) (0.26) (0.11) 0.02 (0.10)
------ ------ ------ ------ ------- -------
Total From Investment Operations 0.15 0.44 0.09 0.38 0.53 0.40
------ ------ ------ ------ ------- -------
Less Distributions:
Dividends (from net investment income) (0.45) (0.48) (0.34) (0.51) (0.50) (0.48)
Distributions (from net realized
gains) (0.03) (0.08) (0.32) (0.09) (0.08) --
------ ------ ------ ------ ------- -------
Total Distributions (0.48) (0.56) (0.66) (0.60) (0.58) (0.48)
------ ------ ------ ------ ------- -------
Net Asset Value, End of Period $10.28 $10.61 $10.73 $11.30 $ 11.52 $ 11.57
====== ====== ====== ====== ======= =======
Total Return(2) 1.52% 4.13% 0.77% 3.36% 4.71% 3.53%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $5,815 $8,788 $8,507 $8,362 $10,598 $13,843
Ratio of Expenses to Average Net Assets 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of Net Investment Income to
Average Net Assets 4.40% 4.27% 4.30% 4.23% 4.25% 4.23%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.80% 1.75% 1.52% 1.18% 1.09% 1.07%
Ratio of Net Investment Income to
Average Net Assets (excluding waivers) 3.35% 3.27% 3.53% 3.80% 3.91% 3.91%
Portfolio Turnover Rate 49% 47% 35% 30% 12% 14%
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS C SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $10.59 $10.71 $11.28 $11.50 $11.56 $11.63
------ ------ ------ ------ ------ ------
Investment Operations:
Net Investment Income 0.42 0.42 0.32 0.43 0.44 0.44
Realized and Unrealized Gains
(Losses) on Investments (0.31) (0.02) (0.27) (0.10) 0.03 (0.08)
------ ------ ------ ------ ------ ------
Total From Investment Operations 0.11 0.40 0.05 0.33 0.47 0.36
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends (from net investment
income) (0.41) (0.44) (0.30) (0.46) (0.45) (0.43)
Distributions (from net realized
gains) (0.03) (0.08) (0.32) (0.09) (0.08) --
------ ------ ------ ------ ------ ------
Total Distributions (0.44) (0.52) (0.62) (0.55) (0.53) (0.43)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $10.26 $10.59 $10.71 $11.28 $11.50 $11.56
====== ====== ====== ====== ====== ======
Total Return(2) 1.12% 3.72% 0.47% 2.95% 4.21% 3.23%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $2,859 $2,888 $3,007 $3,423 $3,787 $4,284
Ratio of Expenses to Average Net Assets 1.15% 1.15% 1.15% 1.15% 1.15% 1.15%
Ratio of Net Investment Income to
Average Net Assets 3.98% 3.87% 3.90% 3.83% 3.85% 3.83%
Ratio of Expenses to Average Net Assets
(excluding waivers) 2.20% 2.24% 2.27% 1.93% 1.84% 1.82%
Ratio of Net Investment Income to
Average Net Assets (excluding
waivers) 2.93% 2.78% 2.78% 3.05% 3.16% 3.16%
Portfolio Turnover Rate 49% 47% 35% 30% 12% 14%
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
33
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
Colorado Tax Free Fund (CONTINUED)
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS Y SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $ 10.63 $ 10.75 $ 11.32 $11.53 $11.59 $11.67
------- ------- ------- ------ ------ ------
Investment Operations:
Net Investment Income 0.49 0.50 0.37 0.51 0.52 0.51
Realized and Unrealized Gains
(Losses) on Investments (0.32) (0.03) (0.26) (0.09) 0.03 (0.09)
------- ------- ------- ------ ------ ------
Total From Investment Operations 0.17 0.47 0.11 0.42 0.55 0.42
------- ------- ------- ------ ------ ------
Less Distributions:
Dividends (from net investment
income) (0.48) (0.51) (0.36) (0.54) (0.53) (0.50)
Distributions (from net realized
gains) (0.03) (0.08) (0.32) (0.09) (0.08) --
------- ------- ------- ------ ------ ------
Total Distributions (0.51) (0.59) (0.68) (0.63) (0.61) (0.50)
------- ------- ------- ------ ------ ------
Net Asset Value, End of Period $ 10.29 $ 10.63 $ 10.75 $11.32 $11.53 $11.59
======= ======= ======= ====== ====== ======
Total Return(2) 1.67% 4.39% 0.96% 3.70% 4.87% 3.78%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $15,889 $13,477 $10,181 $8,363 $9,439 $9,516
Ratio of Expenses to Average Net
Assets 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of Net Investment Income to
Average Net Assets 4.63% 4.51% 4.58% 4.48% 4.51% 4.49%
Ratio of Expenses to Average Net
Assets (excluding waivers) 1.55% 1.50% 1.27% 0.93% 0.84% 0.82%
Ratio of Net Investment Income to
Average Net Assets (excluding
waivers) 3.58% 3.51% 3.81% 4.05% 4.17% 4.17%
Portfolio Turnover Rate 49% 47% 35% 30% 12% 14%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return would have been lower had certain expenses not been waived.
34
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
Minnesota Tax Free Fund
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS A SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of
Period $ 10.93 $ 10.97 $ 11.21 $ 11.23 $ 11.34 $ 11.39
-------- -------- -------- -------- -------- --------
Investment Operations:
Net Investment Income 0.44 0.46 0.35 0.45 0.44 0.48
Realized and Unrealized Gains
(Losses) on Investments (0.38) (0.02) (0.21) 0.03 (0.01) (0.05)
-------- -------- -------- -------- -------- --------
Total From Investment
Operations 0.06 0.44 0.14 0.48 0.43 0.43
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends (from net investment
income) (0.45) (0.45) (0.35) (0.45) (0.45) (0.45)
Distributions (from net
realized gains) (0.06) (0.03) (0.03) (0.05) (0.09) (0.03)
-------- -------- -------- -------- -------- --------
Total Distributions (0.51) (0.48) (0.38) (0.50) (0.54) (0.48)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $ 10.48 $ 10.93 $ 10.97 $ 11.21 $ 11.23 $ 11.34
======== ======== ======== ======== ======== ========
Total Return(2) 0.54% 4.05% 1.28% 4.42% 3.94% 3.90%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $102,089 $106,732 $101,142 $106,783 $114,981 $125,916
Ratio of Expenses to Average Net
Assets 0.87% 0.95% 0.95% 0.95% 0.95% 0.95%
Ratio of Net Investment Income to
Average Net Assets 4.14% 4.10% 4.15% 4.04% 3.87% 4.25%
Ratio of Expenses to Average Net
Assets (excluding waivers) 1.10% 1.10% 1.10% 1.06% 1.05% 1.06%
Ratio of Net Investment Income to
Average Net Assets (excluding
waivers) 3.91% 3.95% 4.00% 3.93% 3.77% 4.14%
Portfolio Turnover Rate 37% 20% 11% 16% 25% 23%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
35
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
Minnesota Tax Free Fund (CONTINUED)
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS C SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $ 10.89 $ 10.93 $ 11.17 $11.19 $ 11.31 $ 11.36
------- ------- ------- ------ ------- -------
Investment Operations:
Net Investment Income 0.40 0.42 0.31 0.41 0.39 0.43
Realized and Unrealized Gains (Losses)
on Investments (0.39) (0.02) (0.20) 0.03 (0.01) (0.04)
------- ------- ------- ------ ------- -------
Total From Investment Operations 0.01 0.40 0.11 0.44 0.38 0.39
------- ------- ------- ------ ------- -------
Less Distributions:
Dividends (from net investment income) (0.40) (0.41) (0.32) (0.41) (0.41) (0.41)
Distributions (from net realized
gains) (0.06) (0.03) (0.03) (0.05) (0.09) (0.03)
------- ------- ------- ------ ------- -------
Total Distributions (0.46) (0.44) (0.35) (0.46) (0.50) (0.44)
------- ------- ------- ------ ------- -------
Net Asset Value, End of Period $ 10.44 $ 10.89 $ 10.93 $11.17 $ 11.19 $ 11.31
======= ======= ======= ====== ======= =======
Total Return(2) 0.06% 3.65% 0.98% 4.02% 3.45% 3.51%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $20,061 $14,221 $10,359 $9,841 $10,387 $11,951
Ratio of Expenses to Average Net Assets 1.35% 1.35% 1.35% 1.35% 1.35% 1.35%
Ratio of Net Investment Income to
Average Net Assets 3.63% 3.69% 3.75% 3.64% 3.47% 3.85%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.50% 1.58% 1.85% 1.81% 1.80% 1.81%
Ratio of Net Investment Income to
Average Net Assets (excluding waivers) 3.48% 3.46% 3.25% 3.18% 3.02% 3.39%
Portfolio Turnover Rate 37% 20% 11% 16% 25% 23%
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS Y SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $ 10.92 $ 10.96 $ 11.20 $ 11.22 $ 11.33 $ 11.38
------- ------- ------- ------- ------- -------
Investment Operations:
Net Investment Income 0.46 0.48 0.36 0.48 0.47 0.51
Realized and Unrealized Gains (Losses)
on Investments (0.38) (0.01) (0.20) 0.03 (0.01) (0.05)
------- ------- ------- ------- ------- -------
Total From Investment Operations 0.08 0.47 0.16 0.51 0.46 0.46
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends (from net investment income) (0.47) (0.48) (0.37) (0.48) (0.48) (0.48)
Distributions (from net realized
gains) (0.06) (0.03) (0.03) (0.05) (0.09) (0.03)
------- ------- ------- ------- ------- -------
Total Distributions (0.53) (0.51) (0.40) (0.53) (0.57) (0.51)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 10.47 $ 10.92 $ 10.96 $ 11.20 $ 11.22 $ 11.33
======= ======= ======= ======= ======= =======
Total Return(2) 0.71% 4.31% 1.47% 4.69% 4.20% 4.16%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $44,993 $56,181 $48,760 $46,471 $42,900 $47,858
Ratio of Expenses to Average Net Assets 0.70% 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of Net Investment Income to
Average Net Assets 4.32% 4.35% 4.40% 4.29% 4.12% 4.50%
Ratio of Expenses to Average Net Assets
(excluding waivers) 0.85% 0.85% 0.85% 0.81% 0.80% 0.81%
Ratio of Net Investment Income to
Average Net Assets (excluding waivers) 4.17% 4.20% 4.25% 4.18% 4.02% 4.39%
Portfolio Turnover Rate 37% 20% 11% 16% 25% 23%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return would have been lower had certain expenses not been waived.
36
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
Missouri Tax Free Fund
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS A SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $ 11.72 $ 11.76 $ 12.14 $ 12.32 $ 12.37 $ 12.47
------- ------- ------- ------- ------- -------
Investment Operations:
Net Investment Income 0.46 0.45 0.34 0.45 0.45 0.45
Realized and Unrealized gains (Losses)
on Investments (0.29) 0.05 (0.29) (0.12) (0.02) (0.04)
------- ------- ------- ------- ------- -------
Total From Investment Operations 0.17 0.50 0.05 0.33 0.43 0.41
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends (from net investment income) (0.46) (0.45) (0.34) (0.45) (0.45) (0.45)
Distributions (from net realized
gains) (0.03) (0.09) (0.09) (0.06) (0.03) (0.06)
------- ------- ------- ------- ------- -------
Total Distributions (0.49) (0.54) (0.43) (0.51) (0.48) (0.51)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 11.40 $ 11.72 $ 11.76 $ 12.14 $ 12.32 $ 12.37
======= ======= ======= ======= ======= =======
Total Return(2) 1.44% 4.23% 0.38% 2.74% 3.60% 3.45%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $23,135 $24,945 $26,972 $30,188 $27,114 $28,141
Ratio of Expenses to Average Net Assets 0.95% 0.95% 0.95% 0.95% 0.95% 0.95%
Ratio of Net Investment Income to
Average Net Assets 3.92% 3.78% 3.74% 3.65% 3.68% 3.69%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.10% 1.10% 1.09% 1.06% 1.05% 1.06%
Ratio of Net Investment Income to
Average Net Assets (excluding waivers) 3.77% 3.63% 3.60% 3.54% 3.58% 3.58%
Portfolio Turnover Rate 20% 33% 20% 19% 15% 20%
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS C SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $11.69 $11.73 $12.12 $12.29 $12.35 $12.46
------ ------ ------ ------ ------ ------
Investment Operations:
Net Investment Income 0.41 0.41 0.30 0.40 0.40 0.40
Realized and Unrealized Gains (Losses)
on Investments (0.30) 0.04 (0.30) (0.11) (0.03) (0.04)
------ ------ ------ ------ ------ ------
Total From Investment Operations 0.11 0.45 0.00 0.29 0.37 0.36
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends (from net investment income) (0.41) (0.40) (0.30) (0.40) (0.40) (0.41)
Distributions (from net realized gains) (0.03) (0.09) (0.09) (0.06) (0.03) (0.06)
------ ------ ------ ------ ------ ------
Total Distributions (0.44) (0.49) (0.39) (0.46) (0.43) (0.47)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $11.36 $11.69 $11.73 $12.12 $12.29 $12.35
====== ====== ====== ====== ====== ======
Total Return(2) 0.95% 3.84% 0.00% 2.42% 3.11% 3.05%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $ 406 $ 518 $ 214 $ 190 $ 218 $ 279
Ratio of Expenses to Average Net Assets 1.35% 1.35% 1.35% 1.35% 1.35% 1.35%
Ratio of Net Investment Income to Average
Net Assets 3.53% 3.35% 3.34% 3.25% 3.28% 3.30%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.50% 1.57% 1.84% 1.81% 1.80% 1.81%
Ratio of Net Investment Income to Average
Net Assets (excluding waivers) 3.38% 3.13% 2.85% 2.79% 2.83% 2.84%
Portfolio Turnover Rate 20% 33% 20% 19% 15% 20%
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
37
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
Missouri Tax Free Fund (CONTINUED)
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS Y SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $ 11.73 $ 11.76 $ 12.15 $ 12.32 $ 12.38 $ 12.48
-------- -------- -------- -------- -------- --------
Investment Operations:
Net Investment Income 0.48 0.48 0.36 0.48 0.48 0.49
Realized and Unrealized Gains (Losses) on
Investments (0.30) 0.06 (0.30) (0.11) (0.03) (0.05)
-------- -------- -------- -------- -------- --------
Total From Investment Operations 0.18 0.54 0.06 0.37 0.45 0.44
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends (from net investment income) (0.48) (0.48) (0.36) (0.48) (0.48) (0.48)
Distributions (from net realized gains) (0.03) (0.09) (0.09) (0.06) (0.03) (0.06)
-------- -------- -------- -------- -------- --------
Total Distributions (0.51) (0.57) (0.45) (0.54) (0.51) (0.54)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $ 11.40 $ 11.73 $ 11.76 $ 12.15 $ 12.32 $ 12.38
======== ======== ======== ======== ======== ========
Total Return(2) 1.60% 4.58% 0.49% 3.08% 3.77% 3.71%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $137,746 $130,644 $138,394 $151,710 $152,676 $168,094
Ratio of Expenses to Average Net Assets 0.70% 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of Net Investment Income to Average
Net Assets 4.17% 4.03% 3.99% 3.90% 3.93% 3.94%
Ratio of Expenses to Average Net Assets
(excluding waivers) 0.85% 0.85% 0.84% 0.81% 0.80% 0.81%
Ratio of Net Investment Income to Average
Net Assets (excluding waivers) 4.02% 3.88% 3.85% 3.79% 3.83% 3.83%
Portfolio Turnover Rate 20% 33% 20% 19% 15% 20%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return would have been lower had certain expenses not been waived.
38
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
Nebraska Tax Free Fund
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS A SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $10.30 $10.33 $10.58 $10.66 $10.66 $10.70
------ ------ ------ ------ ------ ------
Investment Operations:
Net Investment Income 0.42 0.42 0.31 0.39 0.41 0.41
Realized and Unrealized Gains (Losses)
on Investments (0.20) 0.02 (0.24) (0.05) 0.03 (0.04)
------ ------ ------ ------ ------ ------
Total From Investment Operations 0.22 0.44 0.07 0.34 0.44 0.37
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends (from net investment income) (0.41) (0.42) (0.30) (0.42) (0.40) (0.40)
Distributions (from net realized gains) (0.05) (0.05) (0.02) -- (0.04) (0.01)
------ ------ ------ ------ ------ ------
Total Distributions (0.46) (0.47) (0.32) (0.42) (0.44) (0.41)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $10.06 $10.30 $10.33 $10.58 $10.66 $10.66
====== ====== ====== ====== ====== ======
Total Return(2) 2.19% 4.24% 0.65% 3.20% 4.18% 3.57%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $5,689 $7,091 $6,910 $7,136 $4,925 $4,869
Ratio of Expenses to Average Net Assets 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of Net Investment Income to Average
Net Assets 4.06% 3.97% 3.89% 3.78% 3.82% 3.87%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.47% 1.44% 1.30% 1.12% 1.08% 1.07%
Ratio of Net Investment Income to Average
Net Assets (excluding waivers) 3.34% 3.28% 3.34% 3.41% 3.49% 3.55%
Portfolio Turnover Rate 22% 39% 35% 21% 17% 15%
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS C SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $10.23 $10.26 $10.50 $10.58 $10.58 $10.63
------ ------ ------ ------ ------ ------
Investment Operations:
Net Investment Income 0.38 0.37 0.27 0.35 0.35 0.36
Realized and Unrealized Gains (Losses)
on Investments (0.20) 0.02 (0.22) (0.06) 0.04 (0.04)
------ ------ ------ ------ ------ ------
Total From Investment Operations 0.18 0.39 0.05 0.29 0.39 0.32
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends (from net investment income) (0.37) (0.37) (0.27) (0.37) (0.35) (0.36)
Distributions (from net realized gains) (0.05) (0.05) (0.02) -- (0.04) (0.01)
------ ------ ------ ------ ------ ------
Total Distributions (0.42) (0.42) (0.29) (0.37) (0.39) (0.37)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $ 9.99 $10.23 $10.26 $10.50 $10.58 $10.58
====== ====== ====== ====== ====== ======
Total Return(2) 1.81% 3.86% 0.46% 2.81% 3.80% 3.10%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $1,798 $1,559 $1,487 $1,565 $1,861 $1,657
Ratio of Expenses to Average Net Assets 1.15% 1.15% 1.15% 1.15% 1.15% 1.15%
Ratio of Net Investment Income to Average
Net Assets 3.65% 3.56% 3.49% 3.38% 3.42% 3.46%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.87% 1.92% 2.05% 1.87% 1.83% 1.82%
Ratio of Net Investment Income to Average
Net Assets (excluding waivers) 2.93% 2.79% 2.59% 2.66% 2.74% 2.79%
Portfolio Turnover Rate 22% 39% 35% 21% 17% 15%
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
39
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
Nebraska Tax Free Fund (CONTINUED)
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS Y SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $ 10.30 $ 10.33 $ 10.58 $ 10.66 $ 10.65 $ 10.69
------- ------- ------- ------- ------- -------
Investment Operations:
Net Investment Income 0.44 0.44 0.32 0.43 0.43 0.43
Realized and Unrealized Gains (Losses)
on Investments (0.19) 0.02 (0.23) (0.07) 0.04 (0.03)
------- ------- ------- ------- ------- -------
Total From Investment Operations 0.25 0.46 0.09 0.36 0.47 0.40
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends (from net investment income) (0.44) (0.44) (0.32) (0.44) (0.42) (0.43)
Distributions (from net realized
gains) (0.05) (0.05) (0.02) -- (0.04) (0.01)
------- ------- ------- ------- ------- -------
Total Distributions (0.49) (0.49) (0.34) (0.44) (0.46) (0.44)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 10.06 $ 10.30 $ 10.33 $ 10.58 $ 10.66 $ 10.65
======= ======= ======= ======= ======= =======
Total Return(2) 2.45% 4.51% 0.85% 3.45% 4.54% 3.82%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $29,533 $32,502 $31,347 $32,418 $29,722 $28,120
Ratio of Expenses to Average Net Assets 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of Net Investment Income to
Average Net Assets 4.31% 4.22% 4.14% 4.03% 4.07% 4.11%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.22% 1.19% 1.05% 0.87% 0.83% 0.82%
Ratio of Net Investment Income to
Average Net Assets (excluding waivers) 3.59% 3.53% 3.59% 3.66% 3.74% 3.79%
Portfolio Turnover Rate 22% 39% 35% 21% 17% 15%
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return would have been lower had certain expenses not been waived.
Ohio Tax Free Fund
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS A SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $10.20 $10.17 $10.42 $10.52 $10.54 $10.58
------ ------ ------ ------ ------ ------
Investment Operations:
Net Investment Income 0.39 0.38 0.29 0.36 0.36 0.36
Realized and Unrealized Gains (Losses) on
Investments (0.15) 0.05 (0.25) (0.06) 0.07 (0.03)
------ ------ ------ ------ ------ ------
Total From Investment Operations 0.24 0.43 0.04 0.30 0.43 0.33
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends (from net investment income) (0.39) (0.38) (0.28) (0.36) (0.35) (0.37)
Distributions (from net realized gains) (0.03) (0.02) (0.01) (0.04) (0.10) --
------ ------ ------ ------ ------ ------
Total Distributions (0.42) (0.40) (0.29) (0.40) (0.45) (0.37)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $10.02 $10.20 $10.17 $10.42 $10.52 $10.54
====== ====== ====== ====== ====== ======
Total Return(2) 2.38% 4.28% 0.40% 2.86% 4.16% 3.22%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $ 635 $ 808 $ 841 $ 988 $1,200 $ 849
Ratio of Expenses to Average Net Assets 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of Net Investment Income to Average
Net Assets 3.81% 3.70% 3.60% 3.41% 3.43% 3.52%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.39% 1.41% 1.28% 1.11% 1.08% 1.09%
Ratio of Net Investment Income to Average
Net Assets (excluding waivers) 3.17% 3.04% 3.07% 3.05% 3.10% 3.18%
Portfolio Turnover Rate 12% 33% 11% 13% 19% 22%
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
40
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
Ohio Tax Free Fund (CONTINUED)
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS C SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $10.07 $10.05 $10.32 $10.41 $10.44 $10.57
------ ------ ------ ------ ------ ------
Investment Operations:
Net Investment Income 0.35 0.33 0.25 0.32 0.29 0.32
Realized and Unrealized Gains (Losses)
on Investments (0.15) 0.05 (0.26) (0.05) 0.09 (0.12)
------ ------ ------ ------ ------ ------
Total From Investment Operations 0.20 0.38 (0.01) 0.27 0.38 0.20
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends (from net investment income) (0.35) (0.34) (0.25) (0.32) (0.31) (0.33)
Distributions (from net realized gains) (0.03) (0.02) (0.01) (0.04) (0.10) --
------ ------ ------ ------ ------ ------
Total Distributions (0.38) (0.36) (0.26) (0.36) (0.41) (0.33)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $ 9.89 $10.07 $10.05 $10.32 $10.41 $10.44
====== ====== ====== ====== ====== ======
Total Return(2) 2.00% 3.81% (0.08)% 2.58% 3.69% 1.95%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $ 255 $ 187 $ 209 $ 174 $ 120 $ 215
Ratio of Expenses to Average Net Assets 1.15% 1.15% 1.15% 1.15% 1.15% 1.15%
Ratio of Net Investment Income to Average
Net Assets 3.39% 3.29% 3.22% 3.01% 3.03% 3.08%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.78% 1.90% 2.03% 1.86% 1.83% 1.84%
Ratio of Net Investment Income to Average
Net Assets (excluding waivers) 2.76% 2.54% 2.34% 2.30% 2.35% 2.39%
Portfolio Turnover Rate 12% 33% 11% 13% 19% 22%
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS Y SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $ 10.19 $ 10.17 $ 10.43 $ 10.53 $ 10.55 $ 10.57
------- ------- ------- ------- ------- -------
Investment Operations:
Net Investment Income 0.41 0.41 0.30 0.38 0.38 0.39
Realized and Unrealized Gains
(Losses) on Investments (0.15) 0.04 (0.25) (0.05) 0.07 (0.02)
------- ------- ------- ------- ------- -------
Total From Investment Operations 0.26 0.45 0.05 0.33 0.45 0.37
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends (from net investment
income) (0.41) (0.41) (0.30) (0.39) (0.37) (0.39)
Distributions (from net realized
gains) (0.03) (0.02) (0.01) (0.04) (0.10) --
------- ------- ------- ------- ------- -------
Total Distributions (0.44) (0.43) (0.31) (0.43) (0.47) (0.39)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 10.01 $ 10.19 $ 10.17 $ 10.43 $ 10.53 $ 10.55
======= ======= ======= ======= ======= =======
Total Return(2) 2.63% 4.44% 0.49% 3.12% 4.42% 3.65%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $48,510 $42,223 $40,606 $41,104 $39,240 $39,465
Ratio of Expenses to Average Net Assets 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of Net Investment Income to
Average Net Assets 4.06% 3.94% 3.85% 3.66% 3.68% 3.78%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.14% 1.16% 1.03% 0.86% 0.82% 0.84%
Ratio of Net Investment Income to
Average Net Assets (excluding
waivers) 3.42% 3.28% 3.32% 3.30% 3.36% 3.44%
Portfolio Turnover Rate 12% 33% 11% 13% 19% 22%
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return would have been lower had certain expenses not been waived.
41
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
Tax Free Fund
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS A SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $ 10.77 $ 10.86 $ 11.10 $ 11.18 $ 11.28 $ 11.44
------- ------- ------- ------- ------- -------
Income From Investment Operations:
Net Investment Income 0.45 0.45 0.35 0.47 0.47 0.47
Realized and Unrealized Gains
(Losses) on Investments (0.46) -- (0.20) 0.03 0.02 (0.03)
------- ------- ------- ------- ------- -------
Total From Investment Operations (0.01) 0.45 0.15 0.50 0.49 0.44
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends (from net investment
income) (0.44) (0.45) (0.35) (0.47) (0.48) (0.47)
Distributions (from net realized
gains) (0.06) (0.09) (0.04) (0.11) (0.11) (0.13)
------- ------- ------- ------- ------- -------
Total Distributions (0.50) (0.54) (0.39) (0.58) (0.59) (0.60)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 10.26 $ 10.77 $ 10.86 $ 11.10 $ 11.18 $ 11.28
======= ======= ======= ======= ======= =======
Total Return(2) (0.05)% 4.16% 1.37% 4.51% 4.45% 4.06%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $35,557 $37,760 $36,519 $38,205 $40,156 $42,942
Ratio of Expenses to Average Net
Assets 0.78% 0.95% 0.95% 0.95% 0.95% 0.95%
Ratio of Net Investment Income to
Average Net Assets 4.28% 4.08% 4.28% 4.20% 4.18% 4.21%
Ratio of Expenses to Average Net
Assets (excluding waivers) 1.02% 1.03% 1.06% 1.06% 1.05% 1.05%
Ratio of Net Investment Income to
Average Net Assets (excluding
waivers) 4.04% 4.00% 4.17% 4.09% 4.08% 4.11%
Portfolio Turnover Rate 52% 31% 13% 8% 23% 23%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS C SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of Period $10.72 $10.81 $11.05 $11.13 $11.24 $11.40
------ ------ ------ ------ ------ ------
Investment Operations:
Net Investment Income 0.39 0.40 0.32 0.42 0.43 0.42
Realized and Unrealized Gains
(Losses) on Investments (0.45) 0.01 (0.20) 0.03 -- (0.02)
------ ------ ------ ------ ------ ------
Total From Investment Operations (0.06) 0.41 0.12 0.45 0.43 0.40
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends (from net investment
income) (0.39) (0.41) (0.32) (0.42) (0.43) (0.43)
Distributions (from net realized
gains) (0.06) (0.09) (0.04) (0.11) (0.11) (0.13)
------ ------ ------ ------ ------ ------
Total Distributions (0.45) (0.50) (0.36) (0.53) (0.54) (0.56)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $10.21 $10.72 $10.81 $11.05 $11.13 $11.24
====== ====== ====== ====== ====== ======
Total Return(2) (0.61)% 3.76% 1.06% 4.13% 3.92% 3.67%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $3,104 $2,495 $2,210 $2,712 $2,682 $4,880
Ratio of Expenses to Average Net Assets 1.35% 1.35% 1.35% 1.35% 1.35% 1.35%
Ratio of Net Investment Income to
Average Net Assets 3.72% 3.67% 3.87% 3.80% 3.77% 3.81%
Ratio of Expenses to Average Net Assets
(excluding waivers) 1.43% 1.51% 1.81% 1.81% 1.80% 1.80%
Ratio of Net Investment Income to
Average Net Assets (excluding
waivers) 3.64% 3.51% 3.41% 3.34% 3.32% 3.36%
Portfolio Turnover Rate 52% 31% 13% 8% 23% 23%
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
42
Prospectus - First American Tax Free Income Funds
Additional Information
Financial Highlights continued
Tax Free Fund (CONTINUED)
<Table>
<Caption>
Fiscal year
ended Fiscal period
June 30, ended Fiscal year ended September 30,
CLASS Y SHARES 2008 2007 June 30, 2006(1) 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Net Asset Value, Beginning of
Period $ 10.78 $ 10.87 $ 11.11 $ 11.19 $ 11.29 $ 11.45
-------- -------- -------- -------- -------- --------
Investment Operations:
Net Investment Income 0.46 0.48 0.37 0.50 0.50 0.50
Realized and Unrealized Gains
(Losses) on Investments (0.46) -- (0.20) 0.02 0.01 (0.03)
-------- -------- -------- -------- -------- --------
Total From Investment
Operations -- 0.48 0.17 0.52 0.51 0.47
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends (from net investment
income) (0.45) (0.48) (0.37) (0.49) (0.50) (0.50)
Distributions (from net
realized gains) (0.06) (0.09) (0.04) (0.11) (0.11) (0.13)
-------- -------- -------- -------- -------- --------
Total Distributions (0.51) (0.57) (0.41) (0.60) (0.61) (0.63)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $ 10.27 $ 10.78 $ 10.87 $ 11.11 $ 11.19 $ 11.29
======== ======== ======== ======== ======== ========
Total Return(2) 0.04% 4.42% 1.57% 4.77% 4.71% 4.31%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) $448,774 $539,360 $455,910 $436,303 $416,651 $460,634
Ratio of Expenses to Average Net
Assets 0.70% 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of Net Investment Income to
Average Net Assets 4.36% 4.32% 4.53% 4.45% 4.43% 4.46%
Ratio of Expenses to Average Net
Assets (excluding waivers) 0.78% 0.78% 0.81% 0.81% 0.80% 0.80%
Ratio of Net Investment Income to
Average Net Assets (excluding
waivers) 4.28% 4.24% 4.42% 4.34% 4.33% 4.36%
Portfolio Turnover Rate 52% 31% 13% 8% 23% 23%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1)For the period October 1, 2005 to June 30, 2006. Effective in 2006, the
fund's fiscal year end was changed from September 30 to June 30. All ratios
for the period have been annualized, except total return and portfolio
turnover.
(2)Total return would have been lower had certain expenses not been waived.
43
Prospectus - First American Tax Free Income Funds
First American Funds' Privacy Policy
We want you to understand what information we collect and how it's used.
"Nonpublic personal information" is nonpublic information that we obtain while
providing financial products or services to you.
Why we collect your information
We gather nonpublic personal information about you and your accounts so that we
can:
- - Know who you are and prevent unauthorized access to your information.
- - Design and improve the products we offer.
- - Comply with the laws and regulations that govern us.
The types of information we collect
We may collect the following nonpublic personal information about you:
- - Information about your identity, such as your name, address, and social
security number
- - Information about your transactions with us
- - Information you provide on applications, such as your beneficiaries
Confidentiality and security
We operate through service providers. We require our service providers to
restrict access to nonpublic personal information about you to those employees
who need that information in order to provide products or services to you. We
also require them to maintain physical, electronic, and procedural safeguards
that comply with applicable federal standards and regulations to guard your
information.
What information we disclose
We may share all of the nonpublic personal information that we collect about you
with our affiliated providers of financial services, including our family of
funds and their advisor, and with companies that perform marketing services on
our behalf.
We're permitted by law to disclose nonpublic personal information about you to
other third parties in certain circumstances. For example, we may disclose
nonpublic personal information about you to affiliated and nonaffiliated third
parties to assist us in servicing your account (e.g., mailing of fund-related
materials) and to government entities (e.g., IRS for tax purposes).
We'll continue to adhere to the privacy policies and practices described here
even after your account is closed or becomes inactive.
Additional rights and protections
You may have other privacy protections under applicable state laws, such as
California and Vermont. To the extent that these state laws apply, we will
comply with them when we share information about you. This privacy policy does
not apply to your relationship with other financial service providers, such as
broker-dealers. We may amend this privacy notice at any time, and we will inform
you of changes as required by law.
Our pledge applies to products and services offered by:
- - First American Funds, Inc.
- - First American Investment Funds, Inc.
- - First American Strategy Funds, Inc.
- - American Strategic Income Portfolio Inc.
- - American Strategic Income Portfolio Inc. II
- - American Strategic Income Portfolio Inc. III
- - American Select Portfolio Inc.
- - American Municipal Income Portfolio Inc.
- - Minnesota Municipal Income Portfolio Inc.
- - First American Minnesota Municipal Income Fund II, Inc.
- - American Income Fund, Inc.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
THIS PAGE IS NOT PART OF THE PROSPECTUS
(FIRST AMERICAN FUNDS LOGO)
FOR MORE INFORMATION
More information about the First American Funds is available on the funds'
Internet site at www.firstamericanfunds.com and in the following documents:
ANNUAL AND SEMIANNUAL REPORTS
Additional information about the funds' investments is available in the funds'
annual and semiannual reports to shareholders. In the funds' annual report, you
will find a discussion of the market conditions and investment strategies that
significantly affected the funds' performance during their last fiscal year.
STATEMENT OF ADDITIONAL INFORMATION (SAI)
The SAI provides more details about the funds and their policies and is
incorporated into this prospectus by reference (which means that it is legally
part of this prospectus).
You can obtain a free copy of the funds' most recent annual or semiannual
reports or the SAI, request other information about the funds, or make other
shareholder inquiries by calling Investor Services at 800 677-3863 (FUND) or by
contacting the funds at the address below. Annual or semiannual reports and the
SAI are also available on the funds' Internet site.
Information about the funds (including the SAI) can also be reviewed and copied
at the Securities and Exchange Commission's (SEC) Public Reference Room in
Washington, DC. To find out more about this public service, call the SEC at 1-
202-942-8090. Reports and other information about the funds are also available
on the EDGAR database on the SEC's Internet site at www.sec.gov, or you can
receive copies of this information, for a duplicating fee, by electronic request
at the following e-mail address: publicinfo@sec.gov, or by writing the SEC's
Public Reference Section, Washington, DC 20549-0102.
SEC file number: 811-05309 PROTXFR 10/08
- --------------------------------------------------------------------------------
FIRST AMERICAN FUNDS
P.O. Box 1330
Minneapolis, MN 55440-1330