CERTIFICATE
OF
CORRECTION
OF
"ARTICLES OF AMENDMENT AND RESTATEMENT OF
CHARTER OF PRINCIPAL SPECIAL MARKETS FUND, INC."
Principal Investors Fund, Inc., a Maryland Corporation having its
principal office in this state in Baltimore City, Maryland (hereinafter called
the Corporation), hereby certifies to the State Department of Assessments and
Taxation of Maryland, that:
FIRST: This Certificate of Correction is to correct the "Articles of
Amendment and Restatement of Charter of Principal Special Markets Fund, Inc.".
SECOND: the only party to the "Articles of Amendment and Restatement of
Charter of Principal Special Markets Fund, Inc." is the Principal Investors
Fund, Inc.
THIRD: The "Articles of Amendment and Restatement of Charter of
Principal Special Markets Fund, Inc." were filed with the State Department of
Assessments and Taxation of Maryland on September 12, 2000 with a requested
September 14, 2000 effective date.
FOURTH: the provision of the "Articles of Amendment and Restatement of
Charter of Principal Special Markets Fund, Inc." as previously filed stated:
ARTICLE V
Capital Stock Allocation
Authorized Shares: The total number of shares of stock which the
Corporation shall have authority to issue is four billion six hundred million
(4,600,000,000) shares, of the par value of one cent ($.01) each and of the
aggregate par value of forty-six million dollars ($46,000,000). The shares may
be issued by the Board of Directors in such separate and distinct series and
classes of series as the Board of Directors shall from time to time create and
establish. The Board of Directors shall have full power and authority, in its
sole discretion, to establish and designate series and classes of series, and to
classify or reclassify any unissued shares in separate series or classes having
such preferences, conversion or other rights, voting powers, restrictions,
limitations as to dividends, qualifications, and terms and conditions of
redemption as shall be fixed and determined from time to time by the Board of
Directors. In the event of establishment of classes, each class of a series
shall represent interests in the assets belonging to that series and have
identical voting, dividend, liquidation and other rights and the same terms and
conditions as any other class of the series, except that expenses allocated to
the class of a series may be borne solely by such class as shall be determined
by the Board of Directors and may cause differences in rights as described in
the following sentence. The shares of a class may be converted into shares of
another class upon such terms and conditions as shall be determined by the Board
of Directors, and a class of a series may have exclusive voting rights with
respect to matters affecting only that class. Expenses related to the
distribution of, and other identified expenses that should properly be allocated
to, the shares of a particular series or class may be charged to and borne
solely by such series or class, and the bearing of expenses solely by a series
or class may be appropriately reflected (in a manner determined by the Board of
Directors) and cause differences in the net asset value attributable to, and the
dividend, redemption and liquidation rights of, the shares of each series or
class. Subject to the authority of the Board of Directors to increase and
decrease the number of, and to reclassify the shares of any series or class,
there are hereby established four series of common stock all of the same class,
each comprising the number of shares and having the designation indicated:
<TABLE>
<CAPTION>
=================================================== ======================= =======================
Series Class Number of Shares
=================================================== ======================= =======================
<S> <C> <C>
International Emerging Markets Portfolio 100,000,000
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International Securities Portfolio 100,000,000
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--------------------------------------------------- ----------------------- -----------------------
International SmallCap Portfolio 100,000,000
--------------------------------------------------- ----------------------- -----------------------
Mortgage-Backed Securities Portfolio 100,000,000
=================================================== ======================= =======================
=================================================== ======================= =======================
Fund Class Number of Shares
=================================================== ======================= =======================
Balanced Select 25,000,000
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--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
Bond & Mortgage Securities Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
European Equities Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
Government Securities Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ----------------------- -----------------------
----------------------- -----------------------
High Quality Intermediate-Term Bond Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
High Quality Long-Term Bond Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
High Quality Short-Term Bond Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
International I Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
International II Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
International Emerging Markets Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
International SmallCap Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
LargeCap Blend Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
LargeCap Growth Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
LargeCap S&P 500 Index Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
LargeCap Value Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
MidCap Blend Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
MidCap Growth Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
MidCap S&P 400 Index Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
MidCap Value Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
Money Market Select 100,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 100,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 100,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 100,000,000
=================================================== ======================= =======================
Pacific Basin Select 25,000,000
----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
Partners LargeCap Blend Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Partners LargeCap Growth I Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Partners LargeCap Growth II Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Partners Large Value Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Partners MidCap Blend Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
--------------------------------------------------- ----------------------- -----------------------
----------------------- -----------------------
Partners MidCap Growth Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
Partners SmallCap Blend Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ----------------------- -----------------------
----------------------- -----------------------
Partners SmallCap Growth I Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Partners SmallCap Growth II Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Real Estate Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
SmallCap Blend Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
SmallCap Growth Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
SmallCap S&P 600 Index Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
SmallCap Value Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
Technology Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
</TABLE>
In addition, the Board of Directors is hereby expressly granted
authority to change the designation of any series or class, to increase or
decrease the number of shares of any series or class, provided that the number
of shares of any series or class shall not be decreased by the Board of
Directors below the number of shares thereof then outstanding, and to reclassify
any unissued shares into one or more series or classes that may be established
and designated from time to time. Notwithstanding the designations herein of
series and classes, the Corporation may refer, in prospectuses and other
documents furnished to shareholders, filed with the Securities and Exchange
Commission or used for other purposes, to a series of shares as a "class" and to
a class of shares of a particular series as a "series."
(a) The Corporation may issue shares of stock in fractional
denominations to the same extent as its whole shares, and shares in
fractional denominations shall be shares of stock having proportionately,
to the respective fractions represented thereby, all the rights of whole
shares, including without limitation, the right to vote, the right to
receive dividends and distributions and the right to participate upon
liquidation of the Corporation, but excluding the right to receive a stock
certificate representing fractional shares.
(b) The holder of each share of stock of the Corporation shall be
entitled to one vote for each full share, and a fractional vote for each
fractional share, of stock, irrespective of the series or class, then
standing in the holder's name on the books of the Corporation. On any
matter submitted to a vote of stockholders, all shares of the Corporation
then issued and outstanding and entitled to vote shall be voted in the
aggregate and not by series or class except that (1) when otherwise
expressly required by the Maryland General Corporation Law or the
Investment Company Act of 1940, as amended, shares shall be voted by
individual series or class, and (2) if the Board of Directors, in its sole
discretion, determines that a matter affects the interests of only one or
more particular series or class or classes then only the holders of shares
of such affected series or class or classes shall be entitled to vote
thereon.
(c) Unless otherwise provided in the resolution of the Board of
Directors providing for the establishment and designation of any new series
or class or classes, each series of stock of the Corporation shall have the
following powers, preferences and rights, and qualifications, restrictions,
and limitations thereof:
(1) Assets Belonging to a Class. All consideration received by the
Corporation for the issue or sale of shares of a particular class,
together with all assets in which such consideration is invested or
reinvested, all income, earnings, profits and proceeds thereof,
including any proceeds derived from the sale, exchange or liquidation
of such assets, and any funds or payments derived from any reinvestment
of such proceeds in whatever form the same may be, shall irrevocably
belong to that class for all purposes, subject only to the rights of
creditors, and shall be so recorded upon the books and accounts of the
Corporation. Such consideration, assets, income, earnings, profits and
proceeds thereof, including any proceeds derived from the sale,
exchange or liquidation of such assets, and any funds or payments
derived from any reinvestment of such proceeds, in whatever form the
same may be, together with any General Items allocated to that class as
provided in the following sentence, are herein referred to as "assets
belonging to" that class. In the event that there are any assets,
income, earnings, profits, proceeds thereof, funds or payments which
are not readily identifiable as belonging to any particular class
(collectively "General Items"), such General Items shall be allocated
by or under the supervision of the Board of Directors to and among any
one or more of the classes established and designated from time to time
in such manner and on such basis as the Board of Directors, in its sole
discretion, deems fair and equitable, and any General Items so
allocated to a particular class shall belong to that class. Each such
allocation by the Board of Directors shall be conclusive and binding
for all purposes.
(2) Liabilities Belonging to a Class. The assets belonging to each
particular class shall be charged with the liabilities of the
Corporation in respect of that class and all expenses, costs, charges
and reserves attributable to that class, and any general liabilities,
expenses, costs, charges or reserves of the Corporation which are not
readily identifiable as belonging to any particular class shall be
allocated and charged by or under the supervision of the Board of
Directors to and among any one or more of the classes established and
designated from time to time in such manner and on such basis as the
Board of Directors, in its sole discretion, deems fair and equitable.
The liabilities, expenses, costs, charges and reserves allocated and so
charged to a class are herein referred to as "liabilities belonging to"
that class. Expenses related to the shares of a series may be borne
solely by that series (as determined by the Board of Directors). Each
allocation of liabilities, expenses, costs, charges and reserves by the
Board of Directors shall be conclusive and binding for all purposes.
(3) Dividends. The Board of Directors may from time to time
declare and pay dividends or distributions, in stock, property or cash,
on any or all series of stock or classes of series, the amount of such
dividends and property distributions and the payment of them being
wholly in the discretion of the Board of Directors. Dividends may be
declared daily or otherwise pursuant to a standing resolution or
resolutions adopted only once or with such frequency as the Board of
Directors may determine, after providing for actual and accrued
liabilities belonging to that class. All dividends or distributions on
shares of a particular class shall be paid only out of surplus or other
lawfully available assets determined by the Board of Directors as
belonging to such class. Dividends and distributions may vary between
the classes of a series to reflect differing allocations of the expense
of each class of that series to such extent and for such purposes as
the Boards of Directors may deem appropriate. The Board of Directors
shall have the power, in its sole discretion, to distribute in any
fiscal year as dividends, including dividends designated in whole or in
part as capital gains distributions, amounts sufficient, in the opinion
of the Board of Directors, to enable the Corporation, or where
applicable each series of shares or class of a series, to qualify as a
regulated investment company under the Internal Revenue Code of 1986,
as amended, or any successor or comparable statute thereto, and
regulations promulgated thereunder, and to avoid liability for the
Corporation, or each series of shares or class of a series, for Federal
income and excise taxes in respect of that or any other year.
(4) Liquidation. In the event of the liquidation of the
Corporation or of the assets attributable to a particular series or
class, the shareholders of each series or class that has been
established and designated and is being liquidated shall be entitled to
receive, as a series or class, when and as declared by the Board of
Directors, the excess of the assets belonging to that series or class
over the liabilities belonging to that series or class. The holders of
shares of any series or class shall not be entitled thereby to any
distribution upon liquidation of any other series or class. The assets
so distributable to the shareholder of any particular series or class
shall be distributed among such shareholders according to their
respective rights taking into account the proper allocation of expenses
being borne by that series or class. The liquidation of assets
attributable to any particular series or class in which there are
shares then outstanding may be authorized by vote of a majority of the
Board of Directors then in office, subject to the approval of a
majority of the outstanding voting securities of that series or class,
as defined in the Investment Company Act of 1940, as amended. In the
event that there are any general assets not belonging to any particular
series or class of stock and available for distribution, such
distribution shall be made to holders of stock of various series or
classes in such proportion as the Board of Directors determines to be
fair and equitable, and such determination by the Board of Directors
shall be conclusive and binding for all purposes.
(5) Redemption. All shares of stock of the Corporation shall have
the redemption rights provided for in Article V, Section 5.
(d) The Corporation's shares of stock are issued and sold, and all
persons who shall acquire stock of the Corporation shall do so, subject to
the condition and understanding that the provisions of the Corporation's
Articles of Incorporation, as from time to time amended, shall be binding
upon them.
Section 2. Quorum Requirements and Voting Rights: Except as otherwise
expressly provided by the Maryland General Corporation Law, the presence in
person or by proxy of the holders of one-third of the shares of capital stock of
the Corporation outstanding and entitled to vote thereat shall constitute a
quorum at any meeting of the stockholders, except that where the holders of any
series or class are required or permitted to vote as a series or class,
one-third of the aggregate number of shares of that series or class outstanding
and entitled to vote shall constitute a quorum.
Notwithstanding any provision of Maryland General Corporation Law requiring
a greater proportion than a majority of the votes of all series or classes or of
any series or class of the Corporation's stock entitled to be cast in order to
take or authorize any action, any such action may be taken or authorized upon
the concurrence of a majority of the aggregate number of votes entitled to be
cast thereon subject to the applicable laws and regulations as from time to time
in effect or rules or orders of the Securities and Exchange Commission or any
successor thereto. All shares of stock of this Corporation shall have the voting
rights provided for in Article V, Section 1, paragraph (b).
Section 3. No Preemptive Rights: No holder of shares of capital stock of
the Corporation shall, as such holder, have any right to purchase or subscribe
for any shares of the capital stock of the Corporation which the Corporation may
issue or sell (whether consisting of shares of capital stock authorized by these
Articles of Incorporation, or shares of capital stock of the Corporation
acquired by it after the issue thereof, or other shares) other than any right
which the Board of Directors of the Corporation, in its discretion, may
determine.
Section 4. Determination of Net Asset Value: The net asset value of each
share of each series or class of each series of the Corporation shall be the
quotient obtained by dividing the value of the net assets of the Corporation, or
if applicable of the series or class (being the value of the assets of the
Corporation or of the particular series or class or attributable to the
particular series or class less its actual and accrued liabilities exclusive of
capital stock and surplus), by the total number of outstanding shares of the
Corporation or the series or class, as applicable. Such determination may be
made on a series-by-series basis or made or adjusted on a class-by-class basis,
as appropriate, and shall include any expenses allocated to a specific series or
class thereof. The Board of Directors may adopt procedures for determination of
net asset value consistent with the requirements of applicable statutes and
regulations and, so far as accounting matters are concerned, with generally
accepted accounting principles. The procedures may include, without limitation,
procedures for valuation of the Corporation's portfolio securities and other
assets, for accrual of expenses or creation of reserves and for the
determination of the number of shares issued and outstanding at any given time.
Section 5. Redemption and Repurchase of Shares of Capital Stock: Any
shareholder may redeem shares of the Corporation for the net asset value of each
series or class thereof by presentation of an appropriate request, together with
the certificates, if any, for such shares, duly endorsed, at the office or
agency designated by the Corporation. Redemptions as aforesaid, or purchases by
the Corporation of its own stock, shall be made in the manner and subject to the
conditions contained in the bylaws or approved by the Board of Directors.
Section 6. Purchase of Shares: The Corporation shall be entitled to
purchase shares of any series or class of its capital stock, to the extent that
the Corporation may lawfully effect such purchase under Maryland General
Corporation Law, upon such terms and conditions and for such consideration as
the Board of Directors shall deem advisable, by agreement with the stockholder
at a price not exceeding the net asset value per share computed in accordance
with Section 4 of this Article.
Section 7. Redemption of Minimum Amounts:
(a) If after giving effect to a request for redemption by a
stockholder, the aggregate net asset value of his remaining shares of any
series or class will be less than the Minimum Amount then in effect, the
Corporation shall be entitled to require the redemption of the remaining
shares of such series or class owned by such stockholder, upon notice given
in accordance with paragraph (c) of this Section, to the extent that the
Corporation may lawfully effect such redemption under Maryland General
Corporation Law.
(b) The term "Minimum Amount" when used herein shall mean that amount
fixed by the Board of Directors from time to time, provided that Minimum
Amount may not in any event exceed Five Thousand Dollars ($5,000).
(c) If any redemption under paragraph (a) of this Section is upon
notice, the notice shall be in writing personally delivered or deposited in
the mail, at least thirty days prior to such redemption. If mailed, the
notice shall be addressed to the stockholder at his post office address as
shown on the books of the Corporation, and sent by certified or registered
mail, postage prepaid. The price for shares redeemed by the Corporation
pursuant to paragraph (a) of this Section shall be paid in cash in an
amount equal to the net asset value of such shares, computed in accordance
with Section 4 of this Article.
Section 8. Mode of Payment: Payment by the Corporation for shares of any
series or class of the capital stock of the Corporation surrendered to it for
redemption shall be made by the Corporation within three business days of such
surrender out of the funds legally available therefor, provided that the
Corporation may suspend the right of the holders of capital stock of the
Corporation to redeem shares of capital stock and may postpone the right of such
holders to receive payment for any shares when permitted or required to do so by
law. Payment of the redemption or purchase price may be made in cash or, at the
option of the Corporation, wholly or partly in such portfolio securities of the
Corporation as the Corporation may select.
Section 9. Rights of Holders of Shares Purchased or Redeemed: The right of
any holder of any series or class of capital stock of the Corporation purchased
or redeemed by the Corporation as provided in this Article to receive dividends
thereon and all other rights of such holder with respect to such shares shall
terminate at the time as of which the purchase or redemption price of such
shares is determined, except the right of such holder to receive (i) the
purchase or redemption price of such shares from the Corporation or its
designated agent and (ii) any dividend or distribution or voting rights to which
such holder has previously become entitled as the record holder of such shares
on the record date for the determination of the stockholders entitled to receive
such dividend or distribution or to vote at the meeting of stockholders.
Section 10. Status of Shares Purchased or Redeemed: In the absence of any
specification as to the purpose for which such shares of any series or class of
capital stock of the Corporation are redeemed or purchased by it, all shares so
redeemed or purchased shall be deemed to be retired in the sense contemplated by
the laws of the State of Maryland and may be reissued. The number of authorized
shares of capital stock of the Corporation shall not be reduced by the number of
any shares redeemed or purchased by it.
Section 11. Additional Limitations and Powers: The following provisions
are inserted for the purpose of defining, limiting and regulating the powers of
the Corporation and of the Board of Directors and stockholders:
(a) Any determination made in good faith and, so far as accounting
matters are involved, in accordance with generally accepted accounting
principles by or pursuant to the direction of the Board of Directors, as to
the amount of the assets, debts, obligations or liabilities of the
Corporation, as to the amount of any reserves or charges set up and the
propriety thereof, as to the time of or purpose for creating such reserves
or charges, as to the use, alteration or cancellation of any reserves or
charges (whether or not any debt, obligation or liability for which such
reserves or charges shall have been created shall have been paid or
discharged or shall be then or thereafter required to be paid or
discharged), as to the establishment or designation of procedures or
methods to be employed for valuing any investment or other assets of the
Corporation and as to the value of any investment or other asset, as to the
allocation of any asset of the Corporation to a particular series or class
or classes of the Corporation's stock, as to the funds available for the
declaration of dividends and as to the declaration of dividends, as to the
charging of any liability of the Corporation to a particular series or
class or classes of the Corporation's stock, as to the number of shares of
any series or class or classes of the Corporation's outstanding stock, as
to the estimated expense to the Corporation in connection with purchases or
redemptions of its shares, as to the ability to liquidate investments in
orderly fashion, or as to any other matters relating to the issue, sale,
purchase or redemption or other acquisition or disposition of investments
or shares of the Corporation, or in the determination of the net asset
value per share of shares of any series or class of the Corporation's stock
shall be conclusive and binding for all purposes.
(b) Except to the extent prohibited by the Investment Company Act of
1940, as amended, or rules, regulations or orders thereunder promulgated by
the Securities and Exchange Commission or any successor thereto or by the
bylaws of the Corporation, a director, officer or employee of the
Corporation shall not be disqualified by his position from dealing or
contracting with the Corporation, nor shall any transaction or contract of
the Corporation be void or voidable by reason of the fact that any
director, officer or employee or any firm of which any director, officer or
employee is a member, or any corporation of which any director, officer or
employee is a stockholder, officer or director, is in any way interested in
such transaction or contract; provided that in case a director, or a firm
or corporation of which a director is a member, stockholder, officer or
director is so interested, such fact shall be disclosed to or shall have
been known by the Board of Directors or a majority thereof. Nor shall any
director or officer of the Corporation be liable to the Corporation or to
any stockholder or creditor thereof or to any person for any loss incurred
by it or him or for any profit realized by such director or officer under
or by reason of such contract or transaction; provided that nothing herein
shall protect any director or officer of the Corporation against any
liability to the Corporation or to its security holders to which he would
otherwise be subject by reason of willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of
his office; and provided always that such contract or transaction shall
have been on terms that were not unfair to the Corporation at the time at
which it was entered into. Any director of the Corporation who is so
interested, or who is a member, stockholder, officer or director of such
firm or corporation, may be counted in determining the existence of a
quorum at any meeting of the Board of Directors of the Corporation which
shall authorize any such transaction or contract, with like force and
effect as if he were not such director, or member, stockholder, officer or
director of such firm or corporation.
(c) Specifically and without limitation of the foregoing paragraph (b)
but subject to the exception therein prescribed, the Corporation may enter
into management or advisory, underwriting, distribution and administration
contracts, custodian contracts and such other contracts as may be
appropriate.
FIFTH: The provision of the "Articles of Amendment and Restatement of
Charter of Principal Special Markets Fund, Inc." as corrected should now read:
ARTICLE V
Capital Stock Allocation
Authorized Shares: The total number of shares of stock which the
Corporation shall have authority to issue is four billion eight hundred million
(4,800,000,000) shares, of the par value of one cent ($.01) each and of the
aggregate par value of forty-eight million dollars ($48,000,000). The shares may
be issued by the Board of Directors in such separate and distinct series and
classes of series as the Board of Directors shall from time to time create and
establish. The Board of Directors shall have full power and authority, in its
sole discretion, to establish and designate series and classes of series, and to
classify or reclassify any unissued shares in separate series or classes having
such preferences, conversion or other rights, voting powers, restrictions,
limitations as to dividends, qualifications, and terms and conditions of
redemption as shall be fixed and determined from time to time by the Board of
Directors. In the event of establishment of classes, each class of a series
shall represent interests in the assets belonging to that series and have
identical voting, dividend, liquidation and other rights and the same terms and
conditions as any other class of the series, except that expenses allocated to
the class of a series may be borne solely by such class as shall be determined
by the Board of Directors and may cause differences in rights as described in
the following sentence. The shares of a class may be converted into shares of
another class upon such terms and conditions as shall be determined by the Board
of Directors, and a class of a series may have exclusive voting rights with
respect to matters affecting only that class. Expenses related to the
distribution of, and other identified expenses that should properly be allocated
to, the shares of a particular series or class may be charged to and borne
solely by such series or class, and the bearing of expenses solely by a series
or class may be appropriately reflected (in a manner determined by the Board of
Directors) and cause differences in the net asset value attributable to, and the
dividend, redemption and liquidation rights of, the shares of each series or
class. Subject to the authority of the Board of Directors to increase and
decrease the number of, and to reclassify the shares of any series or class,
there are hereby established four series of common stock all of the same class,
each comprising the number of shares and having the designation indicated:
<TABLE>
<CAPTION>
=================================================== ======================= =======================
Series Class Number of Shares
=================================================== ======================= =======================
<S> <C> <C>
International Emerging Markets Portfolio 100,000,000
--------------------------------------------------- ----------------------- -----------------------
International Securities Portfolio 100,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
International SmallCap Portfolio 100,000,000
--------------------------------------------------- ----------------------- -----------------------
Mortgage-Backed Securities Portfolio 100,000,000
=================================================== ======================= =======================
=================================================== ======================= =======================
Fund Class Number of Shares
=================================================== ======================= =======================
Balanced Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
Bond & Mortgage Securities Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
European Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
Government Securities Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ----------------------- -----------------------
----------------------- -----------------------
High Quality Intermediate-Term Bond Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
High Quality Long-Term Bond Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
High Quality Short-Term Bond Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
International I Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
International II Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
International Emerging Markets Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
International SmallCap Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
LargeCap Blend Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
LargeCap Growth Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
LargeCap S&P 500 Index Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
LargeCap Value Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
MidCap Blend Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
MidCap Growth Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
MidCap S&P 400 Index Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
MidCap Value Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
Money Market Select 100,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 100,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 100,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 100,000,000
=================================================== ======================= =======================
Pacific Basin Select 25,000,000
----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
Partners LargeCap Blend Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Partners LargeCap Growth I Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Partners LargeCap Growth II Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Partners Large Value Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Partners MidCap Blend Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
--------------------------------------------------- ----------------------- -----------------------
----------------------- -----------------------
Partners MidCap Growth Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
Partners MidCap Value Institutional 20,000,000
----------------------- -----------------------
---------------------------------------------------
Select 20,000,000
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
---------------------------------------------------
Partners SmallCap Blend Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ----------------------- -----------------------
----------------------- -----------------------
Partners SmallCap Growth I Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Partners SmallCap Growth II Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Partners SmallCap Value Institutional 20,000,000
----------------------- -----------------------
---------------------------------------------------
Select 20,000,000
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
Real Estate Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
SmallCap Blend Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
SmallCap Growth Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
SmallCap S&P 600 Index Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
SmallCap Value Select 25,000,000
--------------------------------------------------- ----------------------- -----------------------
--------------------------------------------------- ----------------------- -----------------------
Preferred 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 25,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 25,000,000
=================================================== ======================= =======================
Technology Institutional 20,000,000
--------------------------------------------------- ----------------------- -----------------------
----------------------- -----------------------
Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Preferred 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Select 20,000,000
----------------------- -----------------------
----------------------- -----------------------
Advisors Preferred 20,000,000
=================================================== ======================= =======================
</TABLE>
In addition, the Board of Directors is hereby expressly granted
authority to change the designation of any series or class, to increase or
decrease the number of shares of any series or class, provided that the number
of shares of any series or class shall not be decreased by the Board of
Directors below the number of shares thereof then outstanding, and to reclassify
any unissued shares into one or more series or classes that may be established
and designated from time to time. Notwithstanding the designations herein of
series and classes, the Corporation may refer, in prospectuses and other
documents furnished to shareholders, filed with the Securities and Exchange
Commission or used for other purposes, to a series of shares as a "class" and to
a class of shares of a particular series as a "series."
(a) The Corporation may issue shares of stock in fractional
denominations to the same extent as its whole shares, and shares in
fractional denominations shall be shares of stock having proportionately,
to the respective fractions represented thereby, all the rights of whole
shares, including without limitation, the right to vote, the right to
receive dividends and distributions and the right to participate upon
liquidation of the Corporation, but excluding the right to receive a stock
certificate representing fractional shares.
(b) The holder of each share of stock of the Corporation shall be
entitled to one vote for each full share, and a fractional vote for each
fractional share, of stock, irrespective of the series or class, then
standing in the holder's name on the books of the Corporation. On any
matter submitted to a vote of stockholders, all shares of the Corporation
then issued and outstanding and entitled to vote shall be voted in the
aggregate and not by series or class except that (1) when otherwise
expressly required by the Maryland General Corporation Law or the
Investment Company Act of 1940, as amended, shares shall be voted by
individual series or class, and (2) if the Board of Directors, in its sole
discretion, determines that a matter affects the interests of only one or
more particular series or class or classes then only the holders of shares
of such affected series or class or classes shall be entitled to vote
thereon.
(c) Unless otherwise provided in the resolution of the Board of
Directors providing for the establishment and designation of any new series
or class or classes, each series of stock of the Corporation shall have the
following powers, preferences and rights, and qualifications, restrictions,
and limitations thereof:
(1) Assets Belonging to a Class. All consideration received by the
Corporation for the issue or sale of shares of a particular class,
together with all assets in which such consideration is invested or
reinvested, all income, earnings, profits and proceeds thereof,
including any proceeds derived from the sale, exchange or liquidation
of such assets, and any funds or payments derived from any reinvestment
of such proceeds in whatever form the same may be, shall irrevocably
belong to that class for all purposes, subject only to the rights of
creditors, and shall be so recorded upon the books and accounts of the
Corporation. Such consideration, assets, income, earnings, profits and
proceeds thereof, including any proceeds derived from the sale,
exchange or liquidation of such assets, and any funds or payments
derived from any reinvestment of such proceeds, in whatever form the
same may be, together with any General Items allocated to that class as
provided in the following sentence, are herein referred to as "assets
belonging to" that class. In the event that there are any assets,
income, earnings, profits, proceeds thereof, funds or payments which
are not readily identifiable as belonging to any particular class
(collectively "General Items"), such General Items shall be allocated
by or under the supervision of the Board of Directors to and among any
one or more of the classes established and designated from time to time
in such manner and on such basis as the Board of Directors, in its sole
discretion, deems fair and equitable, and any General Items so
allocated to a particular class shall belong to that class. Each such
allocation by the Board of Directors shall be conclusive and binding
for all purposes.
(2) Liabilities Belonging to a Class. The assets belonging to each
particular class shall be charged with the liabilities of the
Corporation in respect of that class and all expenses, costs, charges
and reserves attributable to that class, and any general liabilities,
expenses, costs, charges or reserves of the Corporation which are not
readily identifiable as belonging to any particular class shall be
allocated and charged by or under the supervision of the Board of
Directors to and among any one or more of the classes established and
designated from time to time in such manner and on such basis as the
Board of Directors, in its sole discretion, deems fair and equitable.
The liabilities, expenses, costs, charges and reserves allocated and so
charged to a class are herein referred to as "liabilities belonging to"
that class. Expenses related to the shares of a series may be borne
solely by that series (as determined by the Board of Directors). Each
allocation of liabilities, expenses, costs, charges and reserves by the
Board of Directors shall be conclusive and binding for all purposes.
(3) Dividends. The Board of Directors may from time to time
declare and pay dividends or distributions, in stock, property or cash,
on any or all series of stock or classes of series, the amount of such
dividends and property distributions and the payment of them being
wholly in the discretion of the Board of Directors. Dividends may be
declared daily or otherwise pursuant to a standing resolution or
resolutions adopted only once or with such frequency as the Board of
Directors may determine, after providing for actual and accrued
liabilities belonging to that class. All dividends or distributions on
shares of a particular class shall be paid only out of surplus or other
lawfully available assets determined by the Board of Directors as
belonging to such class. Dividends and distributions may vary between
the classes of a series to reflect differing allocations of the expense
of each class of that series to such extent and for such purposes as
the Boards of Directors may deem appropriate. The Board of Directors
shall have the power, in its sole discretion, to distribute in any
fiscal year as dividends, including dividends designated in whole or in
part as capital gains distributions, amounts sufficient, in the opinion
of the Board of Directors, to enable the Corporation, or where
applicable each series of shares or class of a series, to qualify as a
regulated investment company under the Internal Revenue Code of 1986,
as amended, or any successor or comparable statute thereto, and
regulations promulgated thereunder, and to avoid liability for the
Corporation, or each series of shares or class of a series, for Federal
income and excise taxes in respect of that or any other year.
(4) Liquidation. In the event of the liquidation of the
Corporation or of the assets attributable to a particular series or
class, the shareholders of each series or class that has been
established and designated and is being liquidated shall be entitled to
receive, as a series or class, when and as declared by the Board of
Directors, the excess of the assets belonging to that series or class
over the liabilities belonging to that series or class. The holders of
shares of any series or class shall not be entitled thereby to any
distribution upon liquidation of any other series or class. The assets
so distributable to the shareholder of any particular series or class
shall be distributed among such shareholders according to their
respective rights taking into account the proper allocation of expenses
being borne by that series or class. The liquidation of assets
attributable to any particular series or class in which there are
shares then outstanding may be authorized by vote of a majority of the
Board of Directors then in office, subject to the approval of a
majority of the outstanding voting securities of that series or class,
as defined in the Investment Company Act of 1940, as amended. In the
event that there are any general assets not belonging to any particular
series or class of stock and available for distribution, such
distribution shall be made to holders of stock of various series or
classes in such proportion as the Board of Directors determines to be
fair and equitable, and such determination by the Board of Directors
shall be conclusive and binding for all purposes.
(5) Redemption. All shares of stock of the Corporation shall have
the redemption rights provided for in Article V, Section 5.
(d) The Corporation's shares of stock are issued and sold, and all
persons who shall acquire stock of the Corporation shall do so, subject to
the condition and understanding that the provisions of the Corporation's
Articles of Incorporation, as from time to time amended, shall be binding
upon them.
Section 2. Quorum Requirements and Voting Rights: Except as otherwise
expressly provided by the Maryland General Corporation Law, the presence in
person or by proxy of the holders of one-third of the shares of capital stock of
the Corporation outstanding and entitled to vote thereat shall constitute a
quorum at any meeting of the stockholders, except that where the holders of any
series or class are required or permitted to vote as a series or class,
one-third of the aggregate number of shares of that series or class outstanding
and entitled to vote shall constitute a quorum.
Notwithstanding any provision of Maryland General Corporation Law requiring
a greater proportion than a majority of the votes of all series or classes or of
any series or class of the Corporation's stock entitled to be cast in order to
take or authorize any action, any such action may be taken or authorized upon
the concurrence of a majority of the aggregate number of votes entitled to be
cast thereon subject to the applicable laws and regulations as from time to time
in effect or rules or orders of the Securities and Exchange Commission or any
successor thereto. All shares of stock of this Corporation shall have the voting
rights provided for in Article V, Section 1, paragraph (b).
Section 3. No Preemptive Rights: No holder of shares of capital stock of
the Corporation shall, as such holder, have any right to purchase or subscribe
for any shares of the capital stock of the Corporation which the Corporation may
issue or sell (whether consisting of shares of capital stock authorized by these
Articles of Incorporation, or shares of capital stock of the Corporation
acquired by it after the issue thereof, or other shares) other than any right
which the Board of Directors of the Corporation, in its discretion, may
determine.
Section 4. Determination of Net Asset Value: The net asset value of each
share of each series or class of each series of the Corporation shall be the
quotient obtained by dividing the value of the net assets of the Corporation, or
if applicable of the series or class (being the value of the assets of the
Corporation or of the particular series or class or attributable to the
particular series or class less its actual and accrued liabilities exclusive of
capital stock and surplus), by the total number of outstanding shares of the
Corporation or the series or class, as applicable. Such determination may be
made on a series-by-series basis or made or adjusted on a class-by-class basis,
as appropriate, and shall include any expenses allocated to a specific series or
class thereof. The Board of Directors may adopt procedures for determination of
net asset value consistent with the requirements of applicable statutes and
regulations and, so far as accounting matters are concerned, with generally
accepted accounting principles. The procedures may include, without limitation,
procedures for valuation of the Corporation's portfolio securities and other
assets, for accrual of expenses or creation of reserves and for the
determination of the number of shares issued and outstanding at any given time.
Section 5. Redemption and Repurchase of Shares of Capital Stock: Any
shareholder may redeem shares of the Corporation for the net asset value of each
series or class thereof by presentation of an appropriate request, together with
the certificates, if any, for such shares, duly endorsed, at the office or
agency designated by the Corporation. Redemptions as aforesaid, or purchases by
the Corporation of its own stock, shall be made in the manner and subject to the
conditions contained in the bylaws or approved by the Board of Directors.
Section 6. Purchase of Shares: The Corporation shall be entitled to
purchase shares of any series or class of its capital stock, to the extent that
the Corporation may lawfully effect such purchase under Maryland General
Corporation Law, upon such terms and conditions and for such consideration as
the Board of Directors shall deem advisable, by agreement with the stockholder
at a price not exceeding the net asset value per share computed in accordance
with Section 4 of this Article.
Section 7. Redemption of Minimum Amounts:
(a) If after giving effect to a request for redemption by a
stockholder, the aggregate net asset value of his remaining shares of any
series or class will be less than the Minimum Amount then in effect, the
Corporation shall be entitled to require the redemption of the remaining
shares of such series or class owned by such stockholder, upon notice given
in accordance with paragraph (c) of this Section, to the extent that the
Corporation may lawfully effect such redemption under Maryland General
Corporation Law.
(b) The term "Minimum Amount" when used herein shall mean that amount
fixed by the Board of Directors from time to time, provided that Minimum
Amount may not in any event exceed Five Thousand Dollars ($5,000).
(c) If any redemption under paragraph (a) of this Section is upon
notice, the notice shall be in writing personally delivered or deposited in
the mail, at least thirty days prior to such redemption. If mailed, the
notice shall be addressed to the stockholder at his post office address as
shown on the books of the Corporation, and sent by certified or registered
mail, postage prepaid. The price for shares redeemed by the Corporation
pursuant to paragraph (a) of this Section shall be paid in cash in an
amount equal to the net asset value of such shares, computed in accordance
with Section 4 of this Article.
Section 8. Mode of Payment: Payment by the Corporation for shares of any
series or class of the capital stock of the Corporation surrendered to it for
redemption shall be made by the Corporation within three business days of such
surrender out of the funds legally available therefor, provided that the
Corporation may suspend the right of the holders of capital stock of the
Corporation to redeem shares of capital stock and may postpone the right of such
holders to receive payment for any shares when permitted or required to do so by
law. Payment of the redemption or purchase price may be made in cash or, at the
option of the Corporation, wholly or partly in such portfolio securities of the
Corporation as the Corporation may select.
Section 9. Rights of Holders of Shares Purchased or Redeemed: The right of
any holder of any series or class of capital stock of the Corporation purchased
or redeemed by the Corporation as provided in this Article to receive dividends
thereon and all other rights of such holder with respect to such shares shall
terminate at the time as of which the purchase or redemption price of such
shares is determined, except the right of such holder to receive (i) the
purchase or redemption price of such shares from the Corporation or its
designated agent and (ii) any dividend or distribution or voting rights to which
such holder has previously become entitled as the record holder of such shares
on the record date for the determination of the stockholders entitled to receive
such dividend or distribution or to vote at the meeting of stockholders.
Section 10. Status of Shares Purchased or Redeemed: In the absence of any
specification as to the purpose for which such shares of any series or class of
capital stock of the Corporation are redeemed or purchased by it, all shares so
redeemed or purchased shall be deemed to be retired in the sense contemplated by
the laws of the State of Maryland and may be reissued. The number of authorized
shares of capital stock of the Corporation shall not be reduced by the number of
any shares redeemed or purchased by it.
Section 11. Additional Limitations and Powers: The following provisions
are inserted for the purpose of defining, limiting and regulating the powers of
the Corporation and of the Board of Directors and stockholders:
(a) Any determination made in good faith and, so far as accounting
matters are involved, in accordance with generally accepted accounting
principles by or pursuant to the direction of the Board of Directors, as to
the amount of the assets, debts, obligations or liabilities of the
Corporation, as to the amount of any reserves or charges set up and the
propriety thereof, as to the time of or purpose for creating such reserves
or charges, as to the use, alteration or cancellation of any reserves or
charges (whether or not any debt, obligation or liability for which such
reserves or charges shall have been created shall have been paid or
discharged or shall be then or thereafter required to be paid or
discharged), as to the establishment or designation of procedures or
methods to be employed for valuing any investment or other assets of the
Corporation and as to the value of any investment or other asset, as to the
allocation of any asset of the Corporation to a particular series or class
or classes of the Corporation's stock, as to the funds available for the
declaration of dividends and as to the declaration of dividends, as to the
charging of any liability of the Corporation to a particular series or
class or classes of the Corporation's stock, as to the number of shares of
any series or class or classes of the Corporation's outstanding stock, as
to the estimated expense to the Corporation in connection with purchases or
redemptions of its shares, as to the ability to liquidate investments in
orderly fashion, or as to any other matters relating to the issue, sale,
purchase or redemption or other acquisition or disposition of investments
or shares of the Corporation, or in the determination of the net asset
value per share of shares of any series or class of the Corporation's stock
shall be conclusive and binding for all purposes.
(b) Except to the extent prohibited by the Investment Company Act of
1940, as amended, or rules, regulations or orders thereunder promulgated by
the Securities and Exchange Commission or any successor thereto or by the
bylaws of the Corporation, a director, officer or employee of the
Corporation shall not be disqualified by his position from dealing or
contracting with the Corporation, nor shall any transaction or contract of
the Corporation be void or voidable by reason of the fact that any
director, officer or employee or any firm of which any director, officer or
employee is a member, or any corporation of which any director, officer or
employee is a stockholder, officer or director, is in any way interested in
such transaction or contract; provided that in case a director, or a firm
or corporation of which a director is a member, stockholder, officer or
director is so interested, such fact shall be disclosed to or shall have
been known by the Board of Directors or a majority thereof. Nor shall any
director or officer of the Corporation be liable to the Corporation or to
any stockholder or creditor thereof or to any person for any loss incurred
by it or him or for any profit realized by such director or officer under
or by reason of such contract or transaction; provided that nothing herein
shall protect any director or officer of the Corporation against any
liability to the Corporation or to its security holders to which he would
otherwise be subject by reason of willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of
his office; and provided always that such contract or transaction shall
have been on terms that were not unfair to the Corporation at the time at
which it was entered into. Any director of the Corporation who is so
interested, or who is a member, stockholder, officer or director of such
firm or corporation, may be counted in determining the existence of a
quorum at any meeting of the Board of Directors of the Corporation which
shall authorize any such transaction or contract, with like force and
effect as if he were not such director, or member, stockholder, officer or
director of such firm or corporation.
(c) Specifically and without limitation of the foregoing paragraph (b)
but subject to the exception therein prescribed, the Corporation may enter
into management or advisory, underwriting, distribution and administration
contracts, custodian contracts and such other contracts as may be
appropriate.
IN WITNESS WHEREOF, the undersigned officers of Principal Investors Fund,
Inc., have executed the foregoing Certificate of Correction and hereby
acknowledge the same to be their voluntary act and deed.
Dated the 14th day of September, 2000.
/s/Arthur S. Filean
____________________________________
Arthur S. Filean
/s/Ralph C. Eucher
___________________________________
Ralph C. Eucher
IN WITNESS WHEREOF, Principal Investors Fund, Inc. has caused these
presents to be signed in its name and on its behalf by its President as attested
by its Secretary on September 14, 2000.
Principal Investors Fund, Inc.
By /s/Ralph C. Eucher
____________________________________
Ralph C. Eucher, President
Attest
/s/Arthur S. Filean
___________________________
Arthur S. Filean, Secretary
The UNDERSIGNED, President of Principal Investors Fund, Inc., who executed on
behalf of said corporation the foregoing Certificate of Correction, of which
this certificate is made a part, hereby acknowledges, in the name on behalf of
said corporation, the foregoing Certificate of Correction to be the corporate
act of said corporation and further certifies that, to the best of his
knowledge, information and belief, the matters and facts set forth therein with
respect to the approval thereof are true in all material respects, under the
penalties of perjury.
/s/ Ralph C. Eucher
____________________________________
Ralph C. Eucher
President, Principal Investors Fund, Inc.
