PRINCIPAL INVESTORS FUND
Plan pursuant to Rule 18f-3(D) under the
Investment Company act of 1940
Effective September 13, 2000
Principal Investors Fund, Inc., (the "Fund") an open-end investment company
operated as a "Series" fund and managed by Principal Management Corporation (the
"Manager") may from time to time issue one or more of the following classes of
shares: Advisors Preferred Class, Advisors Select Class, Preferred Class, Select
Class, Class I and Class D shares. Each class is subject to such investment
minimums and other conditions of eligibility as are set forth in the Fund's
registration statement as from time to time in effect. The differences in
expenses among these classes of shares, and the conversion and exchange features
of each class of shares, are set forth below in this Plan. Except as noted
below, expenses are allocated among the classes of shares of the Fund based upon
the net assets of the Fund attributable to shares of each class. This plan is
subject to change, to the extent permitted by law and by the Articles of
Incorporation and By-laws of the Fund, by action of the Directors of the Fund.
ADVISORS PREFERRED CLASS
DISTRIBUTION AND SERVICE FEES
Advisors Preferred Class shares pay distribution and service fees pursuant to a
plan (the "Advisors Preferred Class Plan") adopted pursuant to Rule 12b-1 under
the Investment Company Act of 1940 (the "1940 Act"). Pursuant to the Advisors
Preferred Class Plan, Advisors Preferred Class shares may pay up to 0.31% of the
relevant series of the Fund's average net assets attributable to the Advisors
Preferred Class. Amounts payable under the Advisors Preferred Class Plan are
subject to such further limitations as the Directors may from time to time
determine and as set forth in the registration statement of the Fund as from
time to time in effect.
SHAREHOLDER SERVICE FEES
The Advisors Preferred Class shares pay a shareholder service fee equal to 0.09%
of the relevant series of the Fund's average net assets attributable to the
Advisors Preferred Class.
CONVERSION FEATURES
The Advisors Preferred Class shares convert to Advisors Select Class shares if
the assets in the Advisors Preferred Class shares are less than a specified
dollar amount on a specified date described in the Fund's registration statement
as from time to time in effect. The Advisors Preferred Class shares may also
convert to Preferred Class shares if the shareholder disavows the registered
representative of record on the account and no other registered representative
is assigned to the shareholder's account.
EXCHANGE FEATURES
Subject to restrictions of the employer's plan, the Advisors Preferred Class
shares of any series of the Fund may be exchanged, at the shareholder's option,
for Advisors Preferred Class shares of any other series of the Fund without
charge, provided that Advisors Preferred Class shares of such other series of
the Fund are available to residents of the relevant state, and further provided
that shares of such other series of the Fund are available through the relevant
employer's plan.
INITIAL SALES CHARGE
The Advisors Preferred Class shares are offered at their net asset value
("NAV"), without an initial sales charge.
CONTINGENT DEFERRED SALES CHARGE ("CDSC")
Purchases of Advisors Preferred Class shares are not subject to a CDSC.
ADVISORS SELECT CLASS SHARES
DISTRIBUTION AND SERVICE FEES
The Advisors Select Class shares pay distribution and service fees pursuant to a
plan adopted pursuant to Rule 12b-1 under the 1940 Act (the "Advisors Select
Class Plan"). Pursuant to the Advisors Select Class plan, Advisors Select Class
shares may pay up to a 0.37% of the relevant series of the Fund's average net
assets attributable to Advisors Select Class shares. Amounts payable under the
Advisors Select Class Plan are subject to such further limitations as the
Directors may from time to time determine and as set forth in the registration
statement of the Fund as from time to time in effect.
SHAREHOLDER SERVICE FEES
The Advisors Select Class shares pay a shareholder service fee equal to 0.13% of
the relevant series of the Fund's average net assets attributable to the
Advisors Select Class.
CONVERSION FEATURES
The Advisors Select Class shares convert to Advisors Preferred Class shares if
the assets in the Advisors Select Class shares exceed a specified dollar amount
on a specified date described in the Fund's registration statement as from time
to time in effect. The Advisors Select Class shares may also convert to Select
Class shares if the shareholder disavows the registered representative of record
on the account and no other registered representative is assigned to the
shareholder's account.
EXCHANGE FEATURES
Subject to restrictions of the employer's plan, Advisors Select Class shares of
any series of the Fund may be exchanged, at the shareholder's option, for
Advisors Select Class shares of any other series of the Fund without charge,
provided that Advisors Select Class shares of such other series of the Fund are
available to residents of the relevant state, and further provided that shares
of such other series of the Fund are available through the relevant employer's
plan.
INITIAL SALES CHARGE
Advisors Select Class shares are offered at their NAV, without an initial sales
charge.
CONTINGENT DEFERRED SALES CHARGE
Advisors Select Class shares are not subject to a CDSC.
PREFERRED CLASS SHARES
DISTRIBUTION AND SERVICE FEES
Preferred Class shares do not pay a distribution fee.
SHAREHOLDER SERVICE FEES
The Preferred Class shares pay a shareholder service fee equal to 0.09% of the
relevant series of the Fund's average net assets attributable to the Preferred
Class.
CONVERSION FEATURES
The Preferred Class shares convert to Select Class shares if the assets in the
Preferred Class shares are less than a specified dollar amount on a specified
date described in the Fund's registration statement as from time to time in
effect. The Preferred Class shares may also convert to Advisors Preferred Class
shares if the shareholder requests the appointment of a registered
representative for the shareholder's account.
EXCHANGE FEATURES
Subject to restrictions of the employer's plan, Preferred Class shares of any
series of the Fund may be exchanged, at the shareholder's option, for Preferred
Class shares of any other series of the Fund without charge, provided that
Preferred Class shares of such other series of the Fund are available to
residents of the relevant state, and further provided that shares of such other
series of the Fund are available through the relevant employer's plan.
INITIAL SALES CHARGE
Preferred Class shares are offered at their NAV, without an initial sales
charge.
CONTINGENT DEFERRED SALES CHARGE
Preferred Class shares are not subject to a CDSC.
SELECT CLASS SHARES
DISTRIBTUION AND SERVICE FEES
Select Class shares do not pay a distribution fee.
SHAREHOLDER SERVICE FEES
The Select Class shares pay a shareholder service fee equal to 0.13% of the
relevant series of the Fund's average net assets attributable to the Select
Class.
CONVERSION FEATURES
The Select Class shares convert to Preferred Class shares if the assets in the
Select Class shares exceed a specified dollar amount on a specified date
described in the Fund's registration statement as from time to time in effect.
The Select Class shares may also convert to Advisors Select Class shares if the
shareholder requests the appointment of a registered representative for the
shareholder's account.
EXCHANGE FEATURES
Select Class shares of any series of the Fund may be exchanged, at the
shareholder's option, for Select Class shares of any other series of the Fund
without charge, provided that Select Class shares of such other series of the
Fund are available to resident of the relevant state and provided further that
such shares of each the series of the Fund are available through the relevant
employer's plan.
INITIAL SALES CHARGE
Select Class shares are offered at NAV, without an initial sales charge.
CONTINGENT DEFERRED SALES CHARGE
Select Class shares are not subject to any CDSC.
CLASS I SHARES
DISTRIBUTION AND SERVICE FEES
Class I shares do not pay a distribution fee.
CONVERSION FEATURES
Class I shares do not convert to any other class of shares.
EXCHANGE FEATURES
Class I shares of any series of the Fund may be exchanged, at the shareholder's
option, for Class I shares of any other series of the Fund without charge,
provided that Class I shares of such other series of the Fund are available to
residents of the relevant state, and further provided that shares of such other
series of the Fund are available through the relevant employer's plan.
INITIAL SALES CHARGE
Class I shares are offered at their NAV, without an initial sales charge.
CONTINGENT DEFERRED SALES CHARGE
Class I shares are not subject to any CDSC.
CLASS D SHARES
DISTRIBUTION AND SERVICE FEES
Class D shares do not pay a distribution fee.
CONVERSION FEATURES
Class D shares do not convert to any other class of shares.
EXCHANGE FEATURES
Class D shares of any series of the Fund may be exchanged, at the shareholder's
option, for Class D shares of any other series of the Fund without charge,
provided that Class D shares of such other series of the Fund are available to
residents of the relevant state.
INITIAL SALES CHARGE
Class D shares are offered at their NAV, without an initial sales charge.
CONTINGENT DEFERRED SALES CHARGE
Class D shares are not subject to any CDSC.
