in these and other circumstances, such risks might affect companies worldwide. As
a result, local, regional or global events such as terrorism, war, other conflicts, natural disasters, disease/virus outbreaks
and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various
public purposes, including general financing for state and local governments, or financing for a specific project or
public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto
Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes.
The value of municipal securities can be significantly affected by actual or expected political and legislative changes at
the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government,
by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic
or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into
general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects
in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall
municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests
may experience significant financial difficulties for various reasons, including as the result of events that cannot be
reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest,
labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such
issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in
such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Securities issued by a particular state and its instrumentalities are subject to the
risk of unfavorable developments in such state. A municipal security can be significantly affected by adverse tax, legislative,
regulatory, demographic or political changes as well as changes in a particular state’s (state and its instrumentalities’) financial, economic or other condition and prospects.
Shareholder concentration risk
At January 31, 2025, affiliated shareholders of record owned 47.8% of the outstanding
shares of the Fund in one or more accounts. Fund shares sold to or redeemed by concentrated accounts may have a significant
effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments
at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage
of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses
for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the
date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional
disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates are involved, in the normal course
of business, in legal proceedings that include regulatory inquiries, arbitration and litigation (including class actions)
concerning matters arising in connection with the conduct of their activities as part of a diversified financial services firm.
Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates
are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect
on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise
Financial is required to make quarterly
