N-CSRS 1 a08-9032_6ncsrs.htm N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-07678

American Municipal Income Portfolio Inc.

(Exact name of registrant as specified in charter)

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

Charles D. Gariboldi, Jr., 800 Nicollet Mall, Minneapolis, MN 55402

(Name and address of agent for service)

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

Date of fiscal year end:	August 31

Date of reporting period:	February 29, 2008

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

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

Item 1. Report to Shareholders

Semiannual Report

February 29, 2008

XAA

American Municipal
Income Portfolio

American Municipal Income Portfolio

Our Image – George Washington

His rich legacy as patriot and leader is widely recognized as embodying the sound judgment, reliability, and strategic vision that are central to our brand. Fashioned in a style reminiscent of an 18th century engraving, the illustration conveys the symbolic strength and vitality of Washington, which are attributes that we value at First American.

Table of Contents

	1			Explanation of Financial Statements

	2			Fund Overview

	4			Financial Statements

	7			Notes to Financial Statements

	14			Schedule of Investments

	19			Notice to Shareholders

NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

Explanation of FINANCIAL STATEMENTS

As a shareholder in the fund, you receive shareholder reports semiannually. We strive to present this financial information in an easy-to-understand format; however, for many investors, the information contained in this shareholder report may seem very technical. So, we would like to take this opportunity to explain several sections of the shareholder report.

The Statement of Assets and Liabilities lists the assets and liabilities of the fund on the last day of the reporting period and presents the fund's net asset value ("NAV") and market price per share. The NAV is calculated by dividing the fund's net assets (assets minus liabilities) by the number of shares outstanding. The market price is the closing price on the exchange on which the fund's shares trade. This price, which may be higher or lower than the fund's NAV, is the price an investor pays or receives when shares of the fund are purchased or sold. The investments, as presented in the Schedule of Investments, comprise substantially all of the fund's assets. Other assets include cash and receivables for items such as income earned by the fund but not yet received. Liabilities include payables for items such as fund expenses incurred but not yet paid.

The Statement of Operations details the dividends and interest income earned from investments as well as the expenses incurred by the fund during the reporting period. Fund expenses may be reduced through fee waivers or reimbursements. This statement reflects total expenses before any waivers or reimbursements, the amount of waivers and reimbursements (if any), and the net expenses. This statement also shows the net realized and unrealized gains and losses from investments owned during the period. The Notes to Financial Statements provide additional details on investment income and expenses of the fund.

The Statement of Changes in Net Assets describes how the fund's net assets were affected by its operating results and distributions to shareholders during the reporting period. This statement is important to investors because it shows exactly what caused the fund's net asset size to change during the period.

The Statement of Cash Flows is required when a fund has a substantial amount of illiquid investments, a substantial amount of the fund's securities are internally valued, or the fund carries some amount of debt. When presented, this statement explains the change in cash during the reporting period. It reconciles net cash provided by and used for operating activities to the net increase or decrease in net assets from operations and classifies cash receipts and payments as resulting from operating, investing, and financing activities.

The Notes to Financial Statements disclose the organizational background of the fund, its significant accounting policies, federal tax information, fees and compensation paid to affiliates, and significant risks and contingencies. Included within the notes to financial statements is the Financial Highlights. This table provides a per-share breakdown of the components that affected the fund's NAV for the current and past reporting periods. It also shows total return, expense ratios, net investment income ratios, and portfolio turnover rates. The net investment income ratios summarize the income earned less expenses, divided by the average net assets. The expense ratios represent the percentage of average net assets that were used to cover operating expenses during the period. The portfolio turnover rate represents the percentage of the fund's holdings that have changed over the course of the period, and gives an idea of how long the fund holds onto a particular security. A 100% turnover rate implies that an amount equal to the value of the entire portfolio is turned over in a year through the purchase or sale of securities.

The Schedule of Investments details all of the securities held in the fund and their related dollar values on the last day of the reporting period. Securities are usually presented by type (bonds, common stock, etc.) and by industry classification (healthcare, education, etc.). This information is useful for analyzing how your fund's assets are invested and seeing where your portfolio manager believes the best opportunities exist to meet your objectives. Holdings are subject to change without notice and do not constitute a recommendation of any individual security. The Notes to Financial Statements provide additional details on how the securities are valued.

We hope this guide to your shareholder report will help you get the most out of this important resource.

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Fund OVERVIEW

Portfolio Allocation

As a percentage of total investments on February 29, 2008

Healthcare Revenue	31	%
General Obligations	21	%
Utility Revenue	12	%
Prerefunded¹	11	%
Education Revenue	7	%
Housing Revenue	5	%
Transportation Revenue	3	%
Water, Sewer, and Pollution Control Revenue	3	%
Economic Development Revenue	2	%
Industrial Development Revenue	2	%
Certificates of Participation	1	%
Other Revenue Bonds	1	%
Short-Term Investment	1	%
	100	%

¹ Within the Schedule of Investments, prerefunded issues are classified under their applicable industries.

Bond Credit Quality Breakdown²

As a percentage of long-term investments on February 29, 2008

AAA	25	%
AA	12	%
A	21	%
BBB	25	%
Nonrated	17	%
	100	%

² Individual security ratings are based on information from Moody's Investors Service, Standard & Poor's, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used.

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Fund OVERVIEW concluded

Geographical Distribution

As a percentage of long-term investments on February 28, 2008. Shaded areas without values indicate states in which the fund has invested less than 0.50% of its assets.

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FINANCIAL STATEMENTS

Statement of Assets and Liabilities February 29, 2008 (unaudited)

Assets:
Unaffiliated investments, at market value (cost: $121,166,179) (note 2)	$	115,041,624
Affiliated money market fund, at market value (cost: $1,227,748) (note 5)		1,227,748
Cash		68
Receivable for accrued interest...		1,584,227
Prepaid expenses and other assets		29,102
Total assets		117,882,769
Liabilities:
Payable for preferred share distributions (note 3)		10,202
Payable for investment advisory fees (note 5)		34,364
Payable for administrative fees (note 5)		19,637
Payable for professional fees		19,838
Payable for transfer agent fees		4,980
Payable for other expenses		14,983
Total liabilities		104,004
Preferred shares, at liquidation value		43,500,000
Net assets applicable to outstanding common shares	$	74,278,765
Net assets applicable to outstanding common shares consist of:
Common shares and additional paid-in capital	$	80,009,101
Undistributed net investment income		507,704
Accumulated net realized loss on investments and futures contracts		(113,485	)
Unrealized depreciation of investments		(6,124,555	)
Net assets applicable to outstanding common shares	$	74,278,765
Net asset value and market price of common shares:
Net assets applicable to outstanding common shares	$	74,278,765
Common shares outstanding (authorized 200 million shares of $0.01 par value)		5,756,267
Net asset value per share	$	12.90
Market price per share	$	12.45
Liquidation preference of preferred shares (note 3):
Net assets applicable to preferred shares	$	43,500,000
Preferred shares outstanding (authorized one million shares)		1,740
Liquidation preference per share	$	25,000

See accompanying Notes to Financial Statements.

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FINANCIAL STATEMENTS

Statement of Operations For the Six-Month Period Ended February 29, 2008 (unaudited)

Investment Income:
Interest from unaffiliated investments	$	3,214,749
Dividends from affiliated money market fund		46,682
Total investment income		3,261,431
Expenses (note 5):
Investment advisory fees		219,918
Administrative fees		125,668
Remarketing agent fees		50,611
Custodian fees		3,264
Professional fees		22,406
Postage and printing fees		12,822
Transfer agent fees		15,121
Listing fees		12,465
Directors' fees		12,349
Other expenses		24,529
Total expenses		499,153
Less: Fee reimbursements (note 5).		(1,346	)
Total net expenses		497,807
Net investment income		2,763,624
Net realized and unrealized gains (losses) on investments (notes 2 and 4):
Net realized gain (loss) on:
Investments		1,086,537
Futures contracts.		(88,050	)
Net change in unrealized appreciation or depreciation of:
Investments		(7,860,721	)
Net loss on investments		(6,862,234	)
Distributions to preferred shareholders (note 2):
From net investment income		(518,063	)
From net realized gain on investments		(473,216	)
Total distributions.		(991,279	)
Net decrease in net assets applicable to common shares resulting from operations	$	(5,089,889	)

See accompanying Notes to Financial Statements.

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FINANCIAL STATEMENTS concluded

Statement of Changes in Net Assets

	Six-Month Period Ended 2/29/08 (unaudited)			Year Ended 8/31/07
Operations:
Net investment income	$	2,763,624		$	5,841,154
Net realized gain (loss) on:
Investments		1,086,537			1,018,115
Futures contracts		(88,050	)		(29,012	)
Net change in unrealized appreciation or depreciation of:
Investments		(7,860,721	)		(5,726,107	)
Futures contracts		—			29,930
Distributions to preferred shareholders (note 2):
From net investment income		(518,063	)		(1,438,550	)
From net realized gain on investments		(473,216	)		(194,829	)
Net decrease in net assets applicable to common shares resulting from operations		(5,089,889	)		(499,299	)
Distributions to common shareholders (note 2):
From net investment income		(2,198,894	)		(4,944,634	)
From net realized gain on investments		(1,323,884	)		(665,597	)
Total distributions		(3,522,778	)		(5,610,231	)
Total decrease in net assets applicable to common shares		(8,612,667	)		(6,109,530	)
Net assets applicable to common shares at beginning of period		82,891,432			89,000,962
Net assets applicable to common shares at end of period	$	74,278,765		$	82,891,432
Undistributed net investment income	$	507,704		$	461,037

See accompanying Notes to Financial Statements.

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Notes to FINANCIAL STATEMENTS (unaudited as to February 29, 2008)

(1) Organization
American Municipal Income Portfolio Inc. (the "fund") is registered under the Investment Company Act of 1940 (as amended) as a diversified, closed-end management investment company. The fund invests primarily in a diverse range of municipal securities that, at the time of purchase, are rated investment grade or are unrated and deemed to be of comparable quality by FAF Advisors, Inc. ("FAF Advisors"). The fund may invest up to 20% of its total assets in municipal securities that, at the time of purchase, are rated lower than investment grade or are unrated and deemed to be of comparable quality by FAF Advisors. Municipal securities in which the fund invests may include municipal derivative securities, such as inverse floating rate and inverse interest-only municipal securities, which may be more volatile than traditional municipal securities in certain market conditions. The fund's investments also may include repurchase agreements, futures contracts, options on futures contracts, options, and interest rate swaps, caps, and floors. Fund shares are listed on the New York Stock Exchange under the symbol XAA.

(2) Summary of Significant Accounting Policies
Security Valuations

Debt obligations exceeding 60 days to maturity are valued by an independent pricing service that has been approved by the fund's board of directors. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service but where an active market exists are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely used quotation system. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value.

The following investments vehicles, when held by the fund, are priced as follows: Exchange listed futures and options on futures are priced at their last sale price on the exchange on which they are principally traded, as determined by FAF Advisors, on the day the valuation is made. If there were no sales on that day, futures and options on futures will be valued at the last reported bid price. Options on securities, indices, and currencies traded on Nasdaq or listed on a stock exchange, whether domestic or foreign, are valued at the last sale price on Nasdaq or on any exchange on the day the valuation is made. If there were no sales on that day, the options will be valued at the last sale price on the previous valuation date. Last sale prices are obtained from an independent pricing service. Forward contracts (other than currency forward contracts), swaps, and over-the-counter options on securities, indices, and currencies are valued at the quotations received from an independent pricing service, if available.

When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the fund's board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased or sold. If events occur that materially affect the value of securities between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value.

As of February 29, 2008, the fund had no fair valued securities.

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Notes to FINANCIAL STATEMENTS continued

Security Transactions and Investment Income

For financial statement purposes, the fund records security transactions on the trade date of the security purchase or sale. Dividend income is recorded on the ex-dividend date. Interest income, including accretion of bond discounts and amortization of bond premiums, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes.

Inverse Floaters

As part of its investment strategy, the fund may invest in certain securities for which the potential income return is inversely related to changes in a floating interest rate ("inverse floaters"). In general, income on inverse floaters will decrease when short-term interest rates increase and increase when short-term interest rates decrease. Inverse floaters may be characterized as derivative securities and may subject the fund to the risks of reduced or eliminated interest payments and losses of invested principal. In addition, inverse floaters have the effect of providing investment leverage and, as a result, the market values of such securities will generally be more volatile than those of fixed-rate, tax-exempt securities. To the extent the fund invests in inverse floaters, the net asset value of the fund's shares may be more volatile than if the fund did not invest in such securities. As of and for the six-month period ended February 29, 2008, the fund had no outstanding investments in inverse floaters.

Repurchase Agreements

For repurchase agreements entered into with broker-dealers, the fund, along with other affiliated registered investment companies, may transfer uninvested cash balances into a joint trading account, the daily aggregate balance of which is invested in repurchase agreements secured by U.S. government or agency obligations. Securities pledged as collateral for all individual and joint repurchase agreements are held by the fund's custodian bank until maturity of the repurchase agreement. All agreements require that the daily market value of the collateral be in excess of the repurchase amount, including accrued interest, to protect the fund in the event of a default. As of February 29, 2008, the fund had no outstanding repurchase agreements.

Futures Transactions

In order to protect against changes in interest rates, the fund may buy and sell interest rate futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. government securities. The margin required for a futures contract is set up by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund's basis in the contract.

Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that the fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund's statement of assets and liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the period will be recognized as capital gains (losses) for federal income tax purposes. As of February 29, 2008, the fund had no outstanding futures contracts.

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Securities Purchased on a When-Issued Basis

Delivery and payment for securities that have been purchased by the fund on a when-issued or forward-commitment basis can take place a month or more after the transaction date. Such securities do not earn interest, are subject to market fluctuation, and may increase or decrease in value prior to their delivery. The fund segregates assets with a market value equal to the amount of its purchase commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of the fund's net asset value if the fund makes such purchases while remaining substantially fully invested. As of February 29, 2008, the fund had no outstanding when-issued or forward-commitment securities.

In connection with the ability to purchase securities on a when-issued basis, the fund may also enter into dollar rolls in which the fund sells securities purchased on a forward-commitment basis and simultaneously contracts with a counterparty to repurchase similar (same type, coupon, and maturity), but not identical securities on a specified future date. As an inducement for the fund to "rollover" its purchase commitments, the fund receives negotiated amounts in the form of reductions of the purchase price of the commitment. Dollar rolls are considered a form of leverage. As of and for the six-month period ended February 28, 2008, the fund had no dollar roll transactions.

Federal Taxes

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

Net investment income and net realized gains and losses may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to deferred straddle losses. To the extent these differences are permanent, reclassifications are made to the appropriate capital accounts in the fiscal period that the differences arise.

The character of distributions made during the fiscal period from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal period in which amounts are distributed may differ from the fiscal period that the income or realized gains or losses were recorded by the fund.

The character of common and preferred share distributions paid during the six-month period ended February 29, 2008 (estimated) and the fiscal year ended August 31, 2007, were as follows:

	2/29/08		8/31/07
Distributions paid from:
Tax exempt income	$	2,716,170	$	6,380,148
Ordinary income		34,020		12,123
Long-term capital gains		1,763,080		860,426
	$	4,513,270	$	7,252,697

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Notes to FINANCIAL STATEMENTS continued

At August 31, 2007, the fund's most recently completed fiscal year, the components of accumulated earnings on a tax basis were as follows:

Undistributed ordinary income	$	47,222
Undistributed tax-exempt income		457,244
Accumulated capital gains		652,605
Unrealized appreciation		1,734,675
Accumulated earnings	$	2,891,746

A decision by the Kentucky Court of Appeals in 2006 held that Kentucky's tax exemption of interest on its own bonds and its taxation of interest on the bonds of other states is unconstitutional. The Kentucky Supreme Court declined to review this decision, but the U.S. Supreme Court agreed to review it and heard oral arguments in November 2007. The U.S. Supreme Court's decision is pending. If the U.S. Supreme Court affirms this decision or other state courts reach the same conclusion with respect to the states in which the fund invests, this decision could have adverse implications for the tax treatment and market value of the bonds held by the fund.

Distributions to Shareholders

Distributions from net investment income are made monthly for common shareholders and weekly for preferred shareholders. Common share distributions are recorded as of the close of business on the ex-dividend date and preferred share dividends are accrued daily. Net realized gains distributions, if any, will be made at least annually. Distributions are payable in cash or, for common shareholders pursuant to the fund's dividend reinvestment plan, reinvested in additional common shares of the fund. Under the dividend reinvestment plan, common shares will be purchased in the open market.

Deferred Compensation Plan

Under a Deferred Compensation Plan (the "Plan"), non-interested directors of the First American Family of Funds may participate and elect to defer receipt of part or all of their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of open-end First American Funds, preselected by each Director. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the fund. Deferred amounts remain in the fund until distributed in accordance with the Plan.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the results of operations during the reporting period. Actual results could differ from these estimates.

(3) Remarketed Preferred Shares
As of February 29, 2008, the fund had 1,740 remarketed preferred shares (870 shares in Class "T" and 870 shares in Class "TH") ("RP® shares") with a liquidation preference of $25,000 per share. The dividend rate on the RP® shares is adjusted every seven days (on Tuesdays for Class "T" and on Thursdays for Class "TH"), as determined by the remarketing agent.

Normally, the dividend rates on the RP® shares are set at the market clearing rate determined through a remarketing process that brings together bidders who wish to buy RP® shares and holders of RP® shares who wish to sell. Since February 14, 2008, however, sell orders have

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exceeded bids and the regularly scheduled remarketings for the fund's RP® shares have failed. When a remarketing fails, the fund is required to pay the maximum applicable rate on the RP® shares to holders of such shares for successive dividend periods until such time as the shares are successfully remarketed. The maximum applicable rate on the RP® shares is 110% of the higher of (1) the applicable AA Composite Commercial Paper Rate or (2) 90% of the Taxable Equivalent of the Short-Term Municipal Bond Rate.

During any dividend period, the maximum applicable rate may be higher than the dividend rate that would have been set had the remarketing been successful. This would increase the fund's cost of leverage and reduce the fund's common share earnings. On February 29, 2008, the maximum applicable rates were 4.20% for Class "T" and 4.51% for Class "TH."

In the event of a failed remarketing, holders of RP® shares will continue to receive dividends at the maximum applicable rate, but generally will not be able to sell their shares until the next successful remarketing. There is no way to predict when future remarketings might succeed in attracting sufficient buyers for the shares offered.

RP® is a registered trademark of Merrill Lynch & Company ("Merrill Lynch").

(4) Investment Security Transactions
Cost of purchases and proceeds from sales of securities, other than temporary investments in short-term securities, for the six-month period ended February 29, 2008, aggregated $45,268,760 and $45,647,194, respectively.

(5) Expenses
Investment Advisory Fees

Pursuant to an investment advisory agreement (the "Agreement"), FAF Advisors, a subsidiary of U.S. Bank National Association ("U.S. Bank"), manages the fund's assets and furnishes related office facilities, equipment, research, and personnel. The Agreement provides FAF Advisors with a monthly investment advisory fee in an amount equal to an annualized rate of 0.35% of the fund's average weekly net assets including preferred shares. For its fee, FAF Advisors provides investment advice and, in general, conducts the management and investment activities of the fund.

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

Administrative Fees

FAF Advisors serves as the fund's administrator pursuant to an administration agreement between FAF Advisors and the fund. Under this agreement, FAF Advisors receives a monthly administrative fee in an amount equal to an annualized rate of 0.20% of the fund's average weekly net assets including preferred shares. For its fee, FAF Advisors provides numerous services to the fund including, but not limited to, handling the general business affairs, financial and regulatory reporting, and various other services.

Remarketing Agent Fees

The fund has entered into a remarketing agreement with Merrill Lynch (the "Remarketing Agent"). The remarketing agreement provides the Remarketing Agent with a monthly fee in an amount equal to an annual rate of 0.25% of the fund's average amount of RP® outstanding. For its fee,

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Notes to FINANCIAL STATEMENTS continued

the Remarketing Agent will remarket shares of RP® tendered to it on behalf of shareholders and will determine the applicable dividend rate for each seven-day dividend period.

Custodian Fees

U.S. Bank serves as the fund's custodian pursuant to a custodian agreement with the fund. The custodian fee charged to the fund is equal to an annual rate of 0.005% of average weekly net assets including preferred shares. These fees are computed weekly and paid monthly.

Under this agreement, interest earned on uninvested cash balances is used to reduce a portion of the fund's custodian expenses. These credits, if any, are disclosed as "Indirect payments from the custodian" in the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which will increase the fund's custodian expenses. For the six-month period ended February 29, 2008, custodian fees were increased by $209 as a result of overdrafts and were not reduced as a result of interest earned.

Other Fees and Expenses

In addition to the investment advisory, administrative, remarketing agent, and custodian fees, the fund is responsible for paying most other operating expenses, including: outside directors' fees and expenses, listing fees, postage and printing of shareholder reports, transfer agent fees and expenses, legal, auditing, and accounting services, insurance, interest, taxes, and other miscellaneous expenses. For the six-month period ended February 29, 2008, legal fees and expenses of $3,627 were paid to a law firm of which an Assistant Secretary of the fund is a partner.

Expenses that are directly related to the fund are charged directly to the fund. Other operating expenses of the First American Family of Funds are allocated to the fund on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds or a combination of both methods.

(6) Indemnifications
The fund enters into contracts that contain a variety of indemnifications. The fund's maximum exposure under these arrangements is unknown. However, the fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

(7) New Accounting Pronouncements
On July 13, 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet a "more-likely-than-not" threshold would be recorded as a tax expense in the current year. The fund has adopted FIN 48 and as of February 29, 2008, the fund did not have any tax positions that did not meet the "more-likely-than-not" threshold of being sustained by the applicable taxing authority.

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, "Fair Value measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosure about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of February 29, 2008, the fund does not believe the adoption of FAS 157 will materially impact the amounts reported in the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain measurements reported in the Statement of Operations for a fiscal period.

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(8) Financial Highlights
Per-share data for an outstanding common share throughout each period and selected information for each period are as follows:

	Six-Month Period Ended 2/29/2008			Year Ended August 31,						Seven-Month Fiscal Period Ended August 31,			Year Ended January 31,
	(unaudited)			2007			2006			2005			2005			2004			2003
Per-Share Data
Net asset value, common shares, beginning of period	$	14.40		$	15.46		$	15.89		$	15.75		$	15.66		$	15.13		$	14.67
Operations:
Net investment income		0.48			1.02			1.02			0.59			0.97			1.02			1.07
Net realized and unrealized gains (losses) on investments and futures contracts		(1.20	)		(0.82	)		(0.25	)		0.19			0.15			0.52			0.40
Distributions to preferred shareholders:
From net investment income		(0.09	)		(0.25	)		(0.21	)		(0.10	)		(0.09	)		(0.07	)		(0.10	)
From net realized gain on investments		(0.08	)		(0.03	)		(0.02	)		—			—			—			—
Total from operations		(0.89	)		(0.08	)		0.54			0.68			1.03			1.47			1.37
Distributions to common shareholders:
From net investment income		(0.38	)		(0.86	)		(0.86	)		(0.54	)		(0.94	)		(0.94	)		(0.91	)
From net realized gain on investments		(0.23	)		(0.12	)		(0.11	)		—			—			—			—
Total distributions		(0.61	)		(0.98	)		(0.97	)		(0.54	)		(0.94	)		(0.94	)		(0.91	)
Net asset value, common shares, end of period	$	12.90		$	14.40		$	15.46		$	15.89		$	15.75		$	15.66		$	15.13
Market value, common shares, end of period	$	12.45		$	14.74		$	15.29		$	14.70		$	14.92		$	14.90		$	14.60
Selected Information
Total return, common shares, net asset value (a)		(6.47	)% (e)		(0.72	)%		3.66	%		4.39	% (e)		6.84	%		9.98	%		9.58	%
Total return, common shares, market value (b)		(11.63	)% (e)		2.56	%		11.12	%		2.19	% (e)		6.83	%		8.77	%		11.06	%
Net assets applicable to common shares at end of period (in millions)	$	74		$	83		$	89		$	91		$	91		$	90		$	87
Ratio of expenses to average weekly net assets applicable to commons shares before fee waivers (c)		1.22	% (f)		1.18	%		1.12	%		1.15	% (f)		1.23	%		1.18	%		1.23	%
Ratio of expenses to average weekly net assets applicable to common shares after fee waivers (c)		1.21	% (f)		1.17	%		1.12	%		1.15	% (f)		1.23	%		1.18	%		1.23	%
Ratio of net investment income to average weekly net assets applicable to common shares before fee waivers (c)		6.73	% (f)		6.67	%		6.60	%		6.48	% (f)		6.31	%		6.65	%		7.19	%
Ratio of net investment income to average weekly net assets applicable to common shares after fee waivers (c)		6.74	% (f)		6.68	%		6.60	%		6.48	% (f)		6.31	%		6.65	%		7.19	%
Portfolio turnover rate		37	%		24	%		46	%		13	%		36	%		34	%		18	%
Net assets applicable to remarketed preferred shares, end of period (in millions)	$	44		$	44		$	44		$	44		$	44		$	44		$	44
Asset coverage per remarketed preferred share (in thousands) (d)	$	68		$	73		$	76		$	78		$	77		$	77		$	75
Liquidation preference and market value per remarketed preferred share (in thousands)	$	25		$	25		$	25		$	25		$	25		$	25		$	25

(a) Assumes reinvestment of distributions at net asset value.

(b) Assumes reinvestment of distributions at actual prices pursuant to the fund's dividend reinvestment plan.

(c) Ratios do not reflect the effect of dividend payments to preferred shareholders; income ratios reflect income earned on assets attributable to preferred shares, where applicable.

(d) Represents net assets applicable to common shares plus preferred shares at liquidation value divided by preferred shares outstanding.

(e) Total return has not been annualized.

(f) Annualized.

American Municipal Income Portfolio 2008 Semiannual Report
13

Schedule of INVESTMENTS (unaudited)

American Municipal Income Portfolio February 29, 2008

Description of Security	Par		Market Value (a)
(Percentages of each investment category relate to net assets applicable to outstanding common shares)
Municipal Long-Term Investments — 154.9%
Alabama — 0.9%
Camden Industrial Development Board, Weyerhaeuser, (AMT), 6.38%, 12/1/24	$	650,000	$	661,797
Arizona — 11.5%
Gilbert Industrial Development Authority, S.W. Student Services, (Prerefunded 2/1/09 @ 102), 5.85%, 2/1/19 (b)		1,300,000		1,360,827
Maricopa County Industrial Development Authority, Health Facilities Revenue, Refunding — Catholic Healthcare West, 5.25%, 7/1/32		2,000,000		1,879,640
Pima County Industrial Development Authority, Education Revenue, American Charter Schools, 5.50%, 7/1/26		780,000		678,974
Pima County United School District, (FGIC), 8.38%, 7/1/13		2,450,000		3,008,086
Salt Verde Financial, Gas Revenue, 5.00%, 12/1/37		2,000,000		1,622,660
				8,550,187
California — 9.9%
Pollution Control Financing Authority, Solid Waste Revenue, Waste Management Incorporated Project, Series A-2 (AMT), 5.40%, 4/1/25		1,000,000		908,520
Pollution Control Financing Authority, Solid Waste Revenue, Waste Management Incorporated Project, Series B (AMT), 5.00%, 7/1/27		500,000		424,650
State Communities Development Authority Revenue, Henry Mayo Newhall Memorial Hospital (CMI), 5.00%, 10/1/27		500,000		466,250
State General Obligation, 4.50%, 3/1/30		4,870,000		4,286,769
State of California, 5.00%, 11/1/27		1,250,000		1,186,875
Ventura County California Area Housing Authority, Multifamily Revenue, (AMBAC) (AMT), 5.00%, 12/1/22		100,000		94,625
				7,367,689
Colorado — 16.3%
Douglas County School District Number Re-1 Douglas & Elbert Counties, 5.00%, 12/15/18		1,000,000		1,049,470
Educational and Cultural Facilities Authority, The Classical Academy, (Prerefunded 12/1/11 @ 100), 7.25%, 12/1/30 (b)		2,000,000		2,282,060
Health Facilities Authority, Volunteers of America Care, 5.00%, 7/1/15		280,000		261,500
5.25%, 7/1/27		1,000,000		828,890
Northwest Parkway Public Highway Authority, Zero Coupon Bond, (AMBAC), (Prerefunded 6/15/11 @ 33.455), 3.24%, 6/15/29 (b) (c)		5,000,000		1,504,800
State Health Facilities Authority, 5.90%, 10/1/27		650,000		651,924
State Health Facilities Authority, Covenant Retirement Community, 6.13%, 12/1/33		1,000,000		953,290
State Health Facilities Authority, Evangelical Lutheran, 5.00%, 6/1/29		1,000,000		883,960
State Housing and Financial Authority, Multifamily Housing Project, Class II, (AMT), 5.70%, 10/1/42		2,745,000		2,636,902
State Housing and Financial Authority, Solid Waste Revenue, Waste Management Incorporated Project, (AMT), 5.70%, 7/1/18		1,000,000		1,001,460
Water Reserve and Power Development Authority, Clean Water Revenue, 5.90%, 9/1/16		25,000		25,189
				12,079,445
Florida — 5.1%
Palm Beach County, Health Facilities, ACTS Retirement — Lifecomm, 4.50%, 11/15/36		2,120,000		1,532,824
Palm Beach County Facilities Authority, Abbey Delray South, 5.45%, 10/1/15		1,100,000		1,088,846
Palm Beach County Health Facilities Authority, Waterford Project, 5.88%, 11/15/37		1,300,000		1,158,560
				3,780,230
Georgia — 3.3%
Cartersville Development Authority, Anheuser Busch Project (AMT), 5.50%, 3/1/44		2,000,000		1,778,400
Fulton County Development Authority, Maxon Atlantic Station, (AMT), 5.13%, 3/1/26		700,000		677,012
				2,455,412
Illinois — 6.3%
Health Facility Authority, Lutheran General Hospital, 7.00%, 4/1/08		280,000		280,924
7.00%, 4/1/14		500,000		569,040

See accompanying Notes to Schedule of Investments.

American Municipal Income Portfolio 2008 Semiannual Report
14

American Municipal Income Portfolio (continued)

Description of Security	Par		Market Value (a)
Health Facility Authority, PARS — Central Dupage, 7.40%, 11/1/38	$	2,000,000	$	2,000,000
Health Facility Authority, Roosevelt University, 5.50%, 4/1/37		700,000		628,257
State Financial Authority, Clare at Water Tower Project, 6.00%, 5/15/25		650,000		592,124
State Financial Authority, Landing at Plymouth Place Project, 6.00%, 5/15/37		700,000		612,535
				4,682,880
Indiana — 4.1%
Health Facility Authority, Columbus Hospital, (FSA), 7.00%, 8/15/15		2,670,000		3,023,588
Iowa — 3.4%
Finance Authority, Friendship Haven Project, Series A, 6.13%, 11/15/32		800,000		721,184
Sheldon Health Care Facilities, Northwest Iowa Health Center Project, 6.15%, 3/1/16		1,000,000		1,001,560
State Higher Education Loan Authority, Wartburg College, (ACA), (Prerefunded 10/1/12 @ 100), 5.50%, 10/1/33 (b)		750,000		814,882
				2,537,626
Kansas — 1.2%
Health Facility Revenue, Olathe Medical Center, 5.00%, 9/1/29		1,000,000		924,350
Louisiana — 1.1%
Rapides Financial Authority Revenue, Cleco Power LLC Project , (AMBAC), (AMT), 4.70%, 11/1/36		1,000,000		822,090
Maryland — 2.9%
State Department of Transportation, 5.00%, 2/15/16		2,000,000		2,142,640
Massachusetts — 3.3%
Boston Industrial Development Financing Authority, Crosstown Center Project, (AMT), 6.50%, 9/1/35		490,000		442,014
State Development Financing Agency Revenue, Adventcare Project, 6.75%, 10/15/37		650,000		581,724
State Development Financing Agency Revenue, Education Facility Academy Pacific Rim A (ACA), 5.13%, 6/1/31		1,825,000		1,432,899
				2,456,637
Minnesota —10.7%
Cuyuna Range Hospital District, Health Facility Authority Revenue 5.00%, 6/1/29		1,000,000		880,680
5.50%, 6/1/35		1,000,000		926,900
Glencoe Health Care Facilities, Glencoe Regional Health Services, (Prerefunded 4/1/11 @ 101), 7.50%, 4/1/31 (b)		900,000		1,011,168
Maplewood Multifamily Revenue, Carefree Cottages II, (AMT) (FNMA), 4.80%, 4/15/34		1,000,000		961,240
Marshall Health Care Facility, Weiner Medical Center Project, 6.00%, 11/1/28		500,000		504,005
Minneapolis Health Care System, Allina Health System, (Prerefunded 11/15/12 @ 100), 6.00%, 11/15/23 (b)		565,000		625,382
St. Paul Housing and Redevelopment Hospital Authority, Health East Project, 5.00%, 11/15/17		1,400,000		1,344,700
State Agricultural & Economic Development Board, Health Care System, 6.38%, 11/15/29		30,000		30,797
State of Minnesota, 5.00%, 8/1/13		1,000,000		1,078,950
Worthington Housing Authority, Meadows Worthington Project, 5.25%, 11/1/28		675,000		574,283
				7,938,105
Missouri — 1.2%
North Central Missouri Regional Water System Revenue, 5.00%, 1/1/37		1,000,000		862,330
Montana — 1.7%
Forsyth Pollution Control, Northwestern Corporation (AMBAC), 4.65%, 8/1/23		1,500,000		1,301,055
Nevada — 0.5%
State Department of Business and Industry, Las Ventanas Retirement Project, 6.00%, 11/15/14		250,000		200,972
6.75%, 11/15/23		250,000		194,083
				395,055
New Hampshire — 0.7%
Health and Education Facility Authority, Speare Memorial Hospital, 5.88%, 7/1/34		600,000		553,302

See accompanying Notes to Schedule of Investments.

American Municipal Income Portfolio 2008 Semiannual Report
15

Schedule of INVESTMENTS (unaudited)

American Municipal Income Portfolio (continued)

Description of Security	Par		Market Value (a)
New Mexico — 1.8%
Mortgage Finance Authority (FHA) (FMHA) (VA), 6.88%, 1/1/25	$	535,000	$	551,804
Mortgage Finance Authority (FNMA) (GNMA), 6.50%, 7/1/25		425,000		437,036
6.75%, 7/1/25		365,000		376,089
				1,364,929
North Carolina — 3.2%
Mecklenburg County Public Improvement, Series B, 4.00%, 2/1/23		2,000,000		1,768,180
State Commission Medical Care Health Care Facilities, Refunding and Improvements, Upper Valley Medical Center, Pennybyrn at Maryfield, 6.00%, 10/1/23		700,000		646,947
				2,415,127
Ohio — 4.7%
Miami County Hospital Facilities, Upper Valley Medical Center, 5.25%, 5/15/26		1,000,000		921,660
Richland County Hospital Facilities, (Prerefunded 11/15/10 @ 101), Medcentral Health System, 6.13%, 11/15/16 (b)		670,000		727,982
6.38%, 11/15/30 (b)		665,000		726,838
Richland County Hospital Facilities, Medcentral Health System, 6.13%, 11/15/16		330,000		341,227
6.38%, 11/15/30		335,000		341,563
Toledo — Lucas County Port Authority, Crocker Park Public Improvement Project, 5.25%, 12/1/23		500,000		470,325
				3,529,595
Oklahoma — 1.2%
Norman Regional Hospital Authority, 5.38%, 9/1/29		1,000,000		903,820
Oregon — 2.7%
County of Washington, Refunding, 4.00%, 12/1/10		1,500,000		1,543,065
Gilliam County Waste Management, (AMT), 5.25%, 7/1/29		500,000		434,060
				1,977,125
Pennsylvania — 2.6%
Chartiers Valley Industrial and Commercial Development Authority, Friendship Village South, 5.75%, 8/15/20		1,000,000		996,450
Montgomery County Industrial Development Authority, Whitemarsh Continuing Care, 6.25%, 2/1/35		1,000,000		916,350
				1,912,800
Puerto Rico — 11.8%
Commonwealth of Puerto Rico, Improvement, Series A, 5.00%, 7/1/28		4,000,000		3,642,680
Puerto Rico Electric Power Authority (CIFG), 4.25%, 7/1/27		1,500,000		1,263,825
Puerto Rico Electric Power Authority (MBIA), 5.25%, 7/1/29		4,000,000		3,831,400
				8,737,905
South Carolina — 4.6%
Educational Facilities Authority, Wofford College, 4.50%, 4/1/30		750,000		643,590
Environmental Improvement Revenue, Georgetown County, International Paper (AMT), 5.55%, 12/1/29		650,000		568,041
State Jobs Economic Development Authority, Hospital Facility, Palmetto Health 6.13%, 8/1/23		250,000		250,955
6.38%, 8/1/34, (Prerefunded 8/1/13 @ 100) (b)		40,000		45,481
State Public Service Authority, Santee Cooper (MBIA), 5.00%, 1/1/30		2,000,000		1,890,620
				3,398,687
South Dakota — 6.0%
Deadwood, Certificates of Participation (ACA), 5.00%, 11/1/20		1,000,000		917,870
Sioux Falls Health Facilities, Dow Rummel Village Project (Prerefunded 11/15/12 @ 100), 6.63%, 11/15/23 (b)		620,000		704,965
State Economic Development Finance Authority, Pooled Loan Program, Davis Family (AMT), 6.00%, 4/1/29		1,000,000		923,590
State Economic Development Finance Authority, Pooled Loan Program, McEleeg, (AMT), 5.95%, 4/1/24		2,000,000		1,874,440
				4,420,865

See accompanying Notes to Schedule of Investments.

American Municipal Income Portfolio 2008 Semiannual Report
16

American Municipal Income Portfolio (continued)

Description of Security	Par/ Shares		Market Value (a)
Tennessee — 3.7%
Johnson City Health and Education Facilities, Mountain States Health (Prerefunded 7/1/12 @ 103), 7.50%, 7/1/33 (b)	$	1,000,000	$	1,183,230
Shelby County Health, Education and Housing Facilities, Methodist Healthcare (Prerefunded 9/1/12 @ 100), 6.50%, 9/1/21 (b)		240,000		271,234
Shelby County Health, Education and Housing Facilities, Methodist Healthcare (Prerefunded 9/1/12 @ 100), 6.50%, 9/1/21 (b)		410,000		463,357
Sullivan County Health, Education and Housing Facilities, Wellmont Health System Project, (Prerefunded 9/1/12 @ 101), 6.25%, 9/1/32 (b)		750,000		839,595
				2,757,416
Texas — 18.9%
Abilene Health Facility Development Revenue, Sears Methodist Retirement, 5.88%, 11/15/18		1,150,000		1,094,167
Cypress-Fairbanks Independent School District (PSF), 4.50%, 2/15/28		3,000,000		2,675,910
Grand Prairie Independent School District (PSF), 5.85%, 2/15/26		40,000		41,696
Houston Health Facilities Development Revenue, Retirement Facility, Buckingham Senior Living (Prerefunded 2/15/14 @ 101), 7.00%, 2/15/26 (b)		1,500,000		1,777,755
Lufkin Health Facilities Development, Corporate Revenue, Memorial Health Systems, East Texas 5.50%, 2/15/32		850,000		745,578
5.50%, 2/15/37		1,000,000		862,150
Tarrant County Cultural Education, Northwest Senior Housing, Edgemere Project, 6.00%, 11/15/26		600,000		553,110
Travis County Health Facilities Development Authority, Retirement Facility, Querencia Barton Creek New Project, 5.50%, 11/15/25		200,000		171,420
5.65%, 11/15/35		500,000		424,810
Tyler Health Facility, Mother Frances Hospital, 5.00%, 7/1/37		1,100,000		926,398
Victoria Independent School District (PSF), 5.00%, 2/15/32		5,000,000		4,739,250
				14,012,244
Virginia — 7.2%
Higher Education Financing Program, Virginia College Building Authority, 5.00%, 9/1/11		5,000,000		5,317,200
Washington — 1.2%
Skagit County Public Hospital District, 6.00%, 12/1/23		900,000		888,183
Wyoming — 1.2%
Sweetwater County Solid Waste Disposal Revenue — FMC Corporation Project (AMT), 5.60%, 12/1/35		1,000,000		871,310
Total Municipal Long-Term Investments (cost: $121,166,179)				115,041,624
Short-Term Investment — 1.6%
First American Tax Free Obligations Fund, Class Z (d) (cost: $1,227,748)		1,227,748		1,227,748
Total Investments (e) — 156.5% (cost: $122,393,927)				116,269,372
Preferred Shares at Liquidation Value — (58.5)%				(43,500,000	)
Other Assets and Liabilities, Net — 2.0%				1,509,393
Total Net Assets — 100.0%			$	74,278,765

See accompanying Notes to Schedule of Investments.

American Municipal Income Portfolio 2008 Semiannual Report
17

Schedule of INVESTMENTS (unaudited)

American Municipal Income Portfolio (concluded)

Notes to Schedule of Investments:

(a) Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements.

(b) Prerefunded issues are backed by U.S. government obligations, which ensure the timely payment of principal and interest. Crossover refunded issues are backed by the credit of the refunding issuer. In both cases, the bonds mature at the date and price indicated.

(d) Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for the fund.

(e) On February 29, 2008, the cost of investments for federal income tax purposes was $122,393,927. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost were as follows:

Gross unrealized appreciation	$	2,650,869
Gross unrealized depreciation		(8,775,424	)
Net unrealized depreciation	$	(6,124,555	)

ACA–American Capital Access

AMBAC–American Municipal Bond Assurance Company

AMT–Alternative Minimum Tax. As of February 29, 2008, the aggregate market value of securities subject to the AMT is $15,080,151 which represents 20.3% of net assets applicable to common shares.

CIFG–CDC IXIS Financial Guaranty

CMI–California Mortgage Insurance Program

FGIC–Financial Guaranty Insurance Corporation

FHA–Federal Housing Authority

FMHA–Farmers Home Administration

FNMA–Federal National Mortgage Association

FSA–Financial Security Assurance

GNMA–Government National Mortgage Association

MBIA–Municipal Bond Insurance Association

PSF–Permanent School Fund

VA–Veterans Administration

American Municipal Income Portfolio 2008 Semiannual Report
18

Notice to SHAREHOLDERS (unaudited)

ANNUAL MEETING RESULTS

An annual meeting of the fund's shareholders was held on December 4, 2007. Each matter voted upon at that meeting, as well as the number of votes cast for, against or withheld, the number of abstentions, and the number of broker non-votes with respect to such matters, are set forth below.

(1) The fund's preferred shareholders elected the following directors:

	Shares Voted "For"		Shares Withholding Authority to Vote
Roger A. Gibson		1,274		—
Leonard W. Kedrowski		1,274		—

(2) The fund's common and preferred shareholders, voting as a single class, elected the following directors:

	Shares Voted "For"		Shares Withholding Authority to Vote
Benjamin R. Field III		5,414,536		69,653
Victoria J. Herget		5,403,456		80,733
John P. Kayser		5,414,493		69,696
Richard K. Riederer		5,414,193		69,996
Joseph D. Strauss		5,415,143		69,046
Virginia L. Stringer		5,407,256		76,933
James M. Wade		5,405,993		78,196

(3) The fund's common and preferred shareholders, voting as a single class, ratified the selection by the fund's board of directors of Ernst & Young LLP as the independent registered public accounting firm for the fund for the fiscal period ending August 31, 2007. The following votes were cast regarding this matter:

Shares Voted "For"				Shares Voted "Against"				Abstentions				Broker Non-Votes
	5,403,419				32,402				48,368				—

HOW TO OBTAIN A COPY OF THE FUND'S PROXY VOTING POLICIES AND PROXY VOTING RECORD

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

FORM N-Q HOLDINGS INFORMATION

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

American Municipal Income Portfolio 2008 Semiannual Report
19

Notice to SHAREHOLDERS (unaudited) concluded

QUARTERLY PORTFOLIO HOLDINGS

The fund will make portfolio holdings information publicly available by posting the information at firstamericanfunds.com on a quarterly basis. The fund will attempt to post such information within 10 business days of the calendar quarter end.

CERTIFICATIONS

In December 2007, the fund's Chief Executive Officer submitted to the New York Stock Exchange ("NYSE") his annual certification required under Section 303A.12(a) of the NYSE corporate governance rules.

The certifications of the fund's Principal Executive Officer and Principal Financial Officer required pursuant to Rule 30a-2 under the 1940 Act were filed with the fund's Form N-CSR filings and are available on the U.S. Securities and Exchange Commission's website at www.sec.gov.

American Municipal Income Portfolio 2008 Semiannual Report
20

BOARD OF DIRECTORS

Virginia Stringer

Chairperson of American Municipal Income Portfolio
Governance Consultant; former Owner and President of Strategic Management
Resources, Inc.

Benjamin Field III

Director of American Municipal Income Portfolio
Retired; former Senior Financial Advisor, Senior Vice President,
Chief Financial Officer, and Treasurer of Bemis Company, Inc.

Roger Gibson

Director of American Municipal Income Portfolio
Director of Charterhouse Group, Inc.

Victoria Herget

Director of American Municipal Income Portfolio
Investment Consultant; former Managing Director of Zurich Scudder Investments

John Kayser

Director of American Municipal Income Portfolio
Retired; former Principal, Chief Financial Officer, and Chief Administrative Officer of
William Blair & Company, LLC

Leonard Kedrowski

Director of American Municipal Income Portfolio
Owner and President of Executive and Management Consulting, Inc.

Richard Riederer

Director of American Municipal Income Portfolio
Owner and Chief Executive Officer of RKR Consultants, Inc.

Joseph Strauss

Director of American Municipal Income Portfolio
Owner and President of Strauss Management Company

James Wade

Director of American Municipal Income Portfolio
Owner and President of Jim Wade Homes

American Municipal Income Portfolio's Board of Directors is comprised entirely of independent directors.

P.O. Box 1330

Minneapolis, MN 55440-1330

American Municipal Income Portfolio

2008 Semiannual Report

FAF Advisors, Inc., is a wholly owned subsidiary of U.S. Bank National Association, which is a wholly owned subsidiary of U.S. Bancorp.