EXHIBIT (8)(b)
5/95
FIRST AMERICAN INVESTMENT FUNDS, INC.
COMPENSATION AGREEMENT DATED AS OF JUNE 1, 1995
PURSUANT TO CUSTODIAN AGREEMENT
WHEREAS, First American Investment Funds, Inc., a Maryland corporation
(hereinafter called the "Fund"), and First Trust National Association, a
national banking association organized and existing under the laws of the United
States of America with its principal place of business at Minneapolis, Minnesota
(hereinafter called the "Custodian"), previously entered into that Custodian
Agreement dated September 20, 1993 (the "Custodian Agreement"); and
WHEREAS, Article 12 of the Custodian Agreement provides that the
Custodian shall be paid compensation at such rates and at such times as may from
time to time be agreed on in writing by the parties thereto; and
WHEREAS, the Fund and the Custodian previously entered into that
Compensation Agreement dated as of January 31, 1995, for such purpose with
respect to the then-existing series of the Fund; and
WHEREAS, the Fund and the Custodian wish to amend and restate such
compensation agreement in order to make provision for the new series of the Fund
to be referred to as Real Estate Securities Fund.
NOW, THEREFORE, the Fund and the Custodian agree as follows:
1. The compensation payable to the Custodian pursuant to the Custodian
Agreement with respect to Stock Fund, Equity Index Fund, Balanced Fund, Asset
Allocation Fund, Regional Equity Fund, Special Equity Fund, Limited Term Income
Fund, Intermediate Term Income Fund, Fixed Income Fund, Intermediate Government
Bond Fund, Mortgage Securities Fund, shall be as follows: (a) an annual
administration fee of $750 per Fund; (b) an issue held fee, computed as of the
end of each month, at the annual rate of $30 per securities issue held by each
Fund; (c) transaction fees, consisting of (i) a securities buy/sell/maturity fee
of $15 per each such transaction, and (ii) a payment received fee of $12 for
each principal pay down payment received on collateralized mortgage pass-through
instruments; (d) a wire transfer fee of $10 per transaction; (e) a cash
management fee, for "sweeping" cash into overnight investments, at an annual
rate of 0.25% of the amounts so invested; and (f) a remittance fee, for payment
of each Fund's expenses, of $3.50 per each check drawn for such remittances.
2. The compensation payable to the Custodian pursuant to the Custodian
Agreement with respect to the remaining series of the Fund shall be payable
monthly at the following annual rates as percentages of the respective series'
average daily net assets: Real Estate Securities Fund, Limited Volatility Stock
Fund, Equity Income Fund, Diversified Growth Fund, Emerging Growth Fund,
Technology Fund, Limited Term Tax Free Income Fund, Intermediate Tax Free Fund,
Minnesota Insured Intermediate Tax Free Fund, and Colorado Intermediate Tax Free
Fund, 0.03%; and International Fund, 0.25%. The Custodian shall pay subcustodian
fees with respect to International Fund out of the compensation payable to the
Custodian with respect to such fund as set forth above. The Fund shall reimburse
the Custodian for all other out-of-pocket expenses incurred by the Custodian in
connection with the performance of the Custodian's services under the Custodian
Agreement.
3. This Compensation Agreement restates and supersedes all prior
compensation agreements pursuant to Article 12 of the Custodian Agreement.
IN WITNESS WHEREOF, the Fund and the Custodian have caused this
instrument to be executed in duplicate as of the date first above written by
their duly authorized officers.
FIRST AMERICAN INVESTMENT
FUNDS, INC.
By /s/ Xxxxxxx X. Xxxxxxx
Its Vice President
FIRST TRUST NATIONAL
ASSOCIATION
By /s/ Xxxxxxx Xxxxxx
Its Vice President
