EX-99.m.1 12b-1 PLAN
[EXHIBIT (m)(1)]
DISTRIBUTION PLAN
[RETAIL CLASS]
FIRST AMERICAN INVESTMENT FUNDS, INC.
WHEREAS, FIRST AMERICAN INVESTMENT FUNDS, INC. (the "Fund") is engaged
in business as an open-end investment company registered under the Investment
Company Act of 1940, as amended ("1940 Act"); and
WHEREAS, the Directors of the Fund have determined that there is a
reasonable likelihood that the following Distribution Plan will benefit the Fund
and the owners of retail class shares of Common Stock ("Shareholders") in the
Fund;
NOW, THEREFORE, the Directors of the Fund hereby adopt this
Distribution Plan pursuant to Rule 12b-1 under the 1940 Act.
Section 1. The Fund has adopted this retail class Distribution Plan
("Plan") to enable the Fund to directly or indirectly bear expenses relating to
the distribution and shareholder servicing of retail class securities of the
Portfolios listed on Exhibit A (each a "Portfolio") of which the Fund is the
issuer.
Section 2. The retail class of each Portfolio is authorized to pay the
principal underwriter of the Fund's shares (the "Distributor") a total fee in
connection with the servicing of shareholder accounts of such class and in
connection with distribution-related services provided in respect of such class,
calculated and payable monthly, at the annual rate of .25% of the value of the
average daily net assets of such class. All or any portion of such total fee may
be payable as a Shareholder Servicing Fee, and all or any portion of such total
fee may be payable as a Distribution Fee, as determined from time to time by the
Fund's Board of Directors. Until further action by the Board of Directors, all
of such fee shall be designated and payable as a Shareholder Servicing Fee.
Section 3.
(a) The Shareholder Servicing Fee may be used by the Distributor
to provide compensation for ongoing servicing and/or
maintenance of shareholder accounts with respect to the retail
class of the applicable Portfolios of the Fund. Compensation
may be paid by the Distributor to persons, including employees
of the Distributor, and institutions who respond to inquiries
of holders of such retail class shares regarding their
ownership of shares or their accounts with the Fund or who
provide other administrative or accounting services not
otherwise required to be provided by the Fund's investment
adviser, transfer agent or other agent of the Fund.
(b) The Distribution Fee may be used by the Distributor to provide
initial and ongoing sales compensation to its investment
executives and to other broker-dealers in
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respect of sales of retail class shares of the applicable
Portfolios of the Fund and to pay for other advertising and
promotional expenses in connection with the distribution of
such retail class shares. These advertising a promotional
expenses include, by way of example but not by way of
limitation, costs of printing and mailing prospectuses,
statements of additional information and shareholder reports
to prospective investors; preparation and distribution of
sales literature; advertising of any type; an allocation of
overhead and other expenses of the Distributor related to the
distribution of such retail class shares; and payments to, and
expenses of, officers, employees or representatives of the
Distributor, of other broker-dealers, banks or other financial
institutions, and of any other persons who provide support
services in connection with the distribution of such retail
class shares, including travel, entertainment, and telephone
expenses.
(c) Payments under the plan are not tied exclusively to the
expenses for shareholder servicing and distribution related
activities actually incurred by the Distributor, so that such
payments may exceed expenses actually incurred by the
Distributor. The Fund's Board of Directors will evaluate the
appropriateness of the Plan and its payment terms on a
continuing basis and in doing so will consider all relevant
factors, including expenses borne by the Distributor and
amounts it receives under the plan.
(d) The Fund's investment adviser and the Distributor may, at
their option and in their sole discretion, make payments from
their own resources to cover costs of additional distribution
and shareholder servicing activities.
Section 4. This Plan shall not take effect with respect to a Portfolio
until it has been approved (a) by a vote of at least a majority of the
outstanding voting securities of the retail class shares of such Portfolio; and
(b) together with any related agreements, by votes of the majority of both (i)
the Directors of the Fund and (ii) the Qualified Directors, cast in person at a
Board of Directors meeting called for the purpose of voting on this Plan or such
agreement.
Section 5. This Plan shall continue in effect for a period of more than
one year after it takes effect only for so long as such continuance is
specifically approved at least annually in the manner provided in Part (b) of
Section 4 herein for the approval of this Plan.
Section 6. Any person authorized to direct the disposition of monies
paid or payable by the Fund pursuant to this Plan or any related agreement shall
provide to the Directors of the Fund, at least quarterly, a written report of
the amounts so expended and the purposes for which such expenditures were made.
Section 7. This Plan may be terminated at any time with respect to any
Portfolio by the vote of a majority of the Qualified Directors or by vote of a
majority of the Portfolio's outstanding retail class voting securities.
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Section 8. All agreements with any person relating to implementation of
this Plan shall be in writing, and any agreement related to this Plan shall
provide (a) that such agreement may be terminated at any time with respect to
any Portfolio, without payment of any penalty, by the vote of a majority of the
Qualified Directors or by the vote of Shareholders holding a majority of the
Portfolio's outstanding retail class voting securities, on not more than 60 days
written notice to any other party to the agreement; and (b) that such agreement
shall terminate automatically in the event of its assignment.
Section 9. This Plan may not be amended to increase materially the
amount of distribution expenses permitted pursuant to Section 2 hereof without
the approval of Shareholders holding a majority of the outstanding retail class
voting securities of the applicable Portfolio, and all material amendments to
this Plan shall be approved in the manner provided in Part (b) of Section 4
herein for the approval of this Plan.
Section 10. As used in this Plan, (a) the term "Qualified Directors
"shall mean those Directors of the Fund who are not interested persons of the
Fund, and have no direct or indirect financial interest in the operation of this
Plan or any agreements related to it, and (b) the terms "assignment" and
"interested person" shall have the respective meanings specified in the 1940 Act
and the rules and regulations thereunder, subject to such exemptions as may be
granted by the Securities and Exchange Commission.
Section 11. While this Plan is in effect, the selection and nomination
of those Directors who are not interested persons of the Fund within the meaning
of Section 2(a)(19) of the 1940 Act shall be committed to the discretion of the
Directors then in office who are not interested persons of the Fund.
Section 12. This Plan shall not obligate the Fund or any other party to
enter into an agreement with any particular person.
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FIRST AMERICAN INVESTMENT FUNDS, INC.
EXHIBIT A
TO
PLAN OF DISTRIBUTION
EFFECTIVE DATES:
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Portfolio Effective Date
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Large Cap Value Fund April 2, 1991
Mid Cap Value Fund April 2, 1991
Fixed Income Fund April 2, 1991
Intermediate Tax Free Fund April 2, 1991
Intermediate Term Income Fund September 15, 1992
Equity Index Fund September 15, 1992
Limited Term Income Fund September 15, 1992
Balanced Fund September 15, 1992
Minnesota Intermediate Tax Free Fund December, 31, 1993
Colorado Intermediate Tax Free Fund December, 31, 1993
Small Cap Growth Fund December, 31, 1993
Technology Fund December, 31, 1993
International Fund December, 31, 1993
Equity Income Fund January 31, 1994
Large Cap Growth Fund January 31, 1994
Real Estate Securities Fund June 12,1995
Health Sciences Fund January 31, 1996
Oregon Intermediate Tax Free Fund August 5, 1997
California Intermediate Tax Free Fund August 5, 1997
Small Cap Value Fund November 21, 1997
International Index Fund November 21, 1997
Tax Free Fund July 24, 1998
Minnesota Tax Free Fund July 24, 1998
Mid Cap Growth Fund July 24, 1998
Emerging Markets Fund July 24, 1998
Strategic Income Fund July 24, 1998
California Tax Free Fund February 1, 2000
Arizona Tax Free Fund February 1, 2000
Colorado Tax Free Fund February 1, 2000
Corporate Bond Fund February 1, 2000
Agreements/FAIF Distribution Plan
