0000950137-07-011105.txt : 20130114
0000950137-07-011105.hdr.sgml : 20130114
20070802155310
ACCESSION NUMBER: 0000950137-07-011105
CONFORMED SUBMISSION TYPE: PRE 14A
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20070927
FILED AS OF DATE: 20070802
DATE AS OF CHANGE: 20070817
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: FIRST AMERICAN INVESTMENT FUNDS INC
CENTRAL INDEX KEY: 0000820892
IRS NUMBER: 411418224
STATE OF INCORPORATION: MD
FISCAL YEAR END: 1031
FILING VALUES:
FORM TYPE: PRE 14A
SEC ACT: 1934 Act
SEC FILE NUMBER: 811-05309
FILM NUMBER: 071020442
BUSINESS ADDRESS:
STREET 1: 333 WEST WACKER DR.
CITY: CHICAGO
STATE: IL
ZIP: 60606
BUSINESS PHONE: 312-917-8146
MAIL ADDRESS:
STREET 1: 333 WEST WACKER DR.
CITY: CHICAGO
STATE: IL
ZIP: 60606
FORMER COMPANY:
FORMER CONFORMED NAME: FIRST AMERICAN INVESTMENT FUNDS INC
DATE OF NAME CHANGE: 19920703
FORMER COMPANY:
FORMER CONFORMED NAME: SECURAL MUTUAL FUNDS INC
DATE OF NAME CHANGE: 19910627
0000820892
S000005543
First American Arizona Tax Free Fund
C000015073
Class A
FAAZX
C000015074
Class C
FCAZX
C000015075
Class Y
FYAZX
0000820892
S000005544
First American High Income Bond Fund
C000015076
Class A
FJSIX
C000015077
Class B
FJSBX
C000015078
Class C
FCSIX
C000015079
Class R
FANSX
C000015080
Class Y
FJSYX
0000820892
S000005545
First American Inflation Protected Securities Fund
C000015081
Class A
FAIPX
C000015082
Class C
FCIPX
C000015083
Class R
FRIPX
C000015084
Class Y
FYIPX
0000820892
S000005546
First American Intermediate Government Bond Fund
C000015085
Class A
FIGAX
C000015086
Class Y
FYGYX
0000820892
S000005547
First American Intermediate Tax Free Fund
C000015087
Class A
FAMBX
C000015088
Class Y
FMBIX
0000820892
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First American Intermediate Term Bond Fund
C000015089
Class A
FAIIX
C000015090
Class Y
FINIX
0000820892
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First American International Fund
C000015091
Class A
FAIAX
C000015092
Class B
FNABX
C000015093
Class C
FIACX
C000015094
Class R
ARQIX
C000015095
Class Y
FAICX
0000820892
S000005550
First American Large Cap Growth Opportunities Fund
C000015096
Class A
FRGWX
C000015097
Class B
FETBX
C000015098
Class C
FAWCX
C000015099
Class R
FLCYX
C000015100
Class Y
FIGWX
0000820892
S000005551
First American Large Cap Select Fund
C000015101
Class A
FLRAX
C000015102
Class B
FLPBX
C000015103
Class C
FLYCX
C000015104
Class R
FLSSX
C000015105
Class Y
FLRYX
0000820892
S000005552
First American Large Cap Value Fund
C000015106
Class A
FASKX
C000015107
Class B
FATBX
C000015108
Class C
FALVX
C000015109
Class R
FAVSX
C000015110
Class Y
FSKIX
0000820892
S000005553
First American Mid Cap Growth Opportunities Fund
C000015111
Class A
FRSLX
C000015112
Class B
FMQBX
C000015113
Class C
FMECX
C000015114
Class R
FMEYX
C000015115
Class Y
FISGX
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S000005554
First American Balanced Fund
C000015116
Class A
FABAX
C000015117
Class B
FANBX
C000015118
Class C
FCBAX
C000015119
Class R
FBGYX
C000015120
Class Y
FBAIX
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First American Mid Cap Index Fund
C000015121
Class A
FDXAX
C000015122
Class B
FMDBX
C000015123
Class C
FDXCX
C000015124
Class R
FMCYX
C000015125
Class Y
FIMEX
0000820892
S000005556
First American Mid Cap Value Fund
C000015126
Class A
FASEX
C000015127
Class B
FAESX
C000015128
Class C
FACSX
C000015129
Class R
FMVSX
C000015130
Class Y
FSEIX
0000820892
S000005557
First American Missouri Tax Free Fund
C000015131
Class A
ARMOX
C000015132
Class C
FFMCX
C000015133
Class Y
ARMIX
0000820892
S000005558
First American Minnesota Intermediate Tax Free Fund
C000015134
Class A
FAMAX
C000015135
Class Y
FAMTX
0000820892
S000005559
First American Minnesota Tax Free Fund
C000015136
Class A
FJMNX
C000015137
Class C
FCMNX
C000015138
Class Y
FYMNX
0000820892
S000005560
First American Nebraska Tax Free Fund
C000015139
Class A
FNTAX
C000015140
Class C
FNTCX
C000015141
Class Y
FNTYX
0000820892
S000005561
First American Ohio Tax Free Fund
C000015142
Class A
FOFAX
C000015143
Class C
FOTCX
C000015144
Class Y
FOTYX
0000820892
S000005562
First American Oregon Intermediate Tax Free Fund
C000015145
Class A
FOTAX
C000015146
Class Y
FORCX
0000820892
S000005563
First American Real Estate Securities Fund
C000015147
Class A
FREAX
C000015148
Class B
FREBX
C000015149
Class C
FRLCX
C000015150
Class R
FRSSX
C000015151
Class Y
FARCX
0000820892
S000005564
First American Short Tax Free Fund
C000015152
Class A
FSHAX
C000015153
Class Y
FSHYX
0000820892
S000005565
First American California Intermediate Tax Free Fund
C000015154
Class A
FTFCX
C000015155
Class Y
FCACX
0000820892
S000005566
First American Short Term Bond Fund
C000015156
Class A
FALTX
C000015157
Class Y
FLTIX
0000820892
S000005567
First American Small Cap Growth Opportunities Fund
C000015158
Class A
FRMPX
C000015159
Class B
FROBX
C000015160
Class C
FMPCX
C000015161
Class R
FMPYX
C000015162
Class Y
FIMPX
0000820892
S000005568
First American Small Cap Index Fund
C000015163
Class A
FMDAX
C000015164
Class B
FPXBX
C000015165
Class C
FPXCX
C000015166
Class R
ARSCX
C000015167
Class Y
ASETX
0000820892
S000005569
First American Small Cap Select Fund
C000015168
Class A
EMGRX
C000015169
Class B
ARSBX
C000015170
Class C
FHMCX
C000015171
Class R
ASEIX
C000015172
Class Y
ARSTX
0000820892
S000005570
First American Small Cap Value Fund
C000015173
Class A
FSCAX
C000015174
Class B
FCSBX
C000015175
Class C
FSCVX
C000015176
Class R
FSVSX
C000015177
Class Y
FSCCX
0000820892
S000005571
First American Small-Mid Cap Core Fund
C000015178
Class A
FATAX
C000015179
Class B
FITBX
C000015180
Class C
FTACX
C000015181
Class Y
FATCX
0000820892
S000005572
First American Tax Free Fund
C000015182
Class A
FJNTX
C000015183
Class C
FJCTX
C000015184
Class Y
FYNTX
0000820892
S000005573
First American Total Return Bond Fund
C000015185
Class A
FCDDX
C000015186
Class B
FCBBX
C000015187
Class C
FCBCX
C000015188
Class R
FABSX
C000015189
Class Y
FCBYX
0000820892
S000005574
First American U.S. Government Mortgage Fund
C000015190
Class A
ARUGX
C000015191
Class B
ARUBX
C000015192
Class C
FRUCX
C000015193
Class R
ARUIX
C000015194
Class Y
ARGTX
0000820892
S000005575
First American California Tax Free Fund
C000015195
Class A
FCAAX
C000015196
Class C
FCCAX
C000015197
Class Y
FCAYX
0000820892
S000005576
First American Colorado Intermediate Tax Free Fund
C000015198
Class A
FCIAX
C000015199
Class Y
FACIX
0000820892
S000005577
First American Colorado Tax Free Fund
C000015200
Class A
FCOAX
C000015201
Class C
FCCOX
C000015202
Class Y
FCOYX
0000820892
S000005578
First American Core Bond Fund
C000015203
Class A
FAFIX
C000015204
Class B
FFIBX
C000015205
Class C
FFAIX
C000015206
Class R
FFISX
C000015207
Class Y
FFIIX
0000820892
S000005579
First American Equity Income Fund
C000015208
Class A
FFEIX
C000015209
Class B
FAEBX
C000015210
Class C
FFECX
C000015211
Class R
FEISX
C000015212
Class Y
FAQIX
0000820892
S000005580
First American Equity Index Fund
C000015213
Class A
FAEIX
C000015214
Class B
FAEQX
C000015215
Class C
FCEIX
C000015216
Class R
FADSX
C000015217
Class Y
FEIIX
0000820892
S000014927
First American International Select Fund
C000040497
Class A
ISACX
C000040498
Class B
ISBCX
C000040499
Class C
ICCSX
C000040500
Class R
ISRCX
C000040501
Class Y
ISYCX
0000820892
S000018455
First American Quantitative Large Cap Core Fund
C000051040
Class A
C000051041
Class C
C000051042
Class R
C000051043
Class Y
0000820892
S000018456
First American Quantitative Large Cap Growth Fund
C000051044
Class A
C000051045
Class C
C000051046
Class R
C000051047
Class Y
0000820892
S000018457
First American Quantitative Large Cap Value Fund
C000051048
Class C
C000051049
Class R
C000051050
Class Y
C000051051
Class A
PRE 14A
1
c17322ppre14a.txt
PRELIMINARY PROXY STATEMENT
United States
Securities and Exchange Commission
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[X] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
[ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Section 240.14a-12
FIRST AMERICAN INVESTMENT FUNDS, INC.
--------------------------------------------------------------------------------
(Name of Registrant as Specified in its Charter)
--------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which transaction applies:
--------------------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
--------------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee
is calculated and state how it is determined):
--------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
--------------------------------------------------------------------------------
(5) Total fee paid:
--------------------------------------------------------------------------------
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
--------------------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.:
--------------------------------------------------------------------------------
(3) Filing Party:
--------------------------------------------------------------------------------
(4) Date Filed:
--------------------------------------------------------------------------------
FIRST AMERICAN INTERNATIONAL FUND
_______, 2007
Dear First American Fund Shareholder:
You are cordially invited to attend a Special Meeting of the shareholders
of First American International Fund (the "Fund"), a series of First American
Investment Funds, Inc. ("FAIF"), which will be held on Thursday, September 27,
2007 at 2:00 p.m., Central time, at the offices of FAF Advisors, Inc. (the
"Advisor"), 800 Nicollet Mall, Minneapolis, Minnesota 55402.
The purpose of the Special Meeting is to ask you to approve a
"manager-of-managers" structure for the Fund whereby the Advisor, subject to
certain conditions, will be able to hire and replace sub-advisors to the Fund
without obtaining shareholder approval. Manager-of-managers authority would
allow the Advisor, with the Board's approval, to make changes to Fund
sub-advisors and change the terms of sub-advisory agreements without holding a
shareholder meeting. This would provide the Advisor and the Board with the
flexibility to implement sub-advisor changes or materially modify sub-advisory
agreements without incurring the significant delay and potential expense
associated with obtaining shareholder approval.
The Board of Directors has approved the proposed manager-of-managers
structure, and recommends that you approve this proposal.
The proxy statement that accompanies this letter contains detailed
information on this proposal. I encourage you to read it carefully. You will
also find information in a "Question and Answer" format designed to provide
answers to some of the questions we anticipate you will have. After you have
read the accompanying materials, please complete, sign and date the enclosed
proxy card and return it in the enclosed postage-paid return envelope. This will
ensure that your vote is counted, even if you cannot attend the Special Meeting
in person. You may also vote in person at the meeting, or you may vote by
telephone or by internet, by following the instructions that appear on the proxy
card.
YOUR VOTE IS IMPORTANT. If we do not hear from you after a reasonable
amount of time, you may receive a telephone call reminding you to vote your
shares.
We thank you for your continued support of the Fund and urge you to cast
your vote as soon as possible.
Sincerely,
Thomas S. Schreier, Jr.
President
FIRST AMERICAN INTERNATIONAL FUND SHAREHOLDERS
IMPORTANT INFORMATION
While we encourage you to read the full text of the enclosed Proxy
Statement, we are also providing you with a brief overview of the subject of the
shareholder vote to help you understand and vote on the proposals. Your vote is
important.
QUESTIONS & ANSWERS
Q: WHAT AM I BEING ASKED TO VOTE "FOR" ON THIS PROXY?
A: You are being asked to vote on a proposal to approve a "manager-of-managers"
structure for the Fund. This structure would allow the Advisor, with the Board's
approval, to add or replace sub-advisors to the Fund, or to materially amend
existing sub-advisory agreements, without obtaining shareholder approval.
Q: WHAT IS A MANAGER-OF-MANAGERS STRUCTURE?
A: The Advisor has hired a sub-advisor to manage the assets of the Fund. Under
the Fund's current structure, if the Advisor ever believed that the sub-advisor
should be replaced, or that an additional sub-advisor should be hired, the
Advisor would make a recommendation to the Board, and the Board would be
required to convene a shareholder meeting seeking approval of the new
sub-advisor. Manager-of-managers authority would allow the Advisor, with the
Board's approval, to make changes to Fund sub-advisors and change the terms of
sub-advisory agreements without holding a shareholder meeting. The Fund would
still be required to obtain shareholder approval of a sub-advisory agreement
with any sub-advisor that is considered an affiliated person (as defined in the
Investment Company Act of 1940, as amended) of the Fund or the Advisor (other
than a sub-advisor that is considered an affiliated person solely by reason of
serving as a sub-advisor to the Fund). The Fund has received an order from the
Securities and Exchange Commission permitting it, as well as the other funds
that are series of FAIF, to operate using a manager-of-managers structure,
subject to the prior approval of the respective fund's shareholders.
Q: COULD INVESTMENT ADVISORY FEES BE INCREASED WITHOUT A SHAREHOLDER VOTE IF
THE MANAGER-OF-MANAGERS STRUCTURE IS APPROVED?
A: No. Fees paid to sub-advisors are paid directly by the Advisor out of its
investment advisory fee; they are not paid by the Fund. Therefore, any change in
sub-advisory fees will have no impact on the Fund's expense. Any increase in the
investment advisory fee paid to the Advisor by the Fund will continue to require
shareholder approval.
Q. WHAT ARE THE BENEFITS OF A MANAGER-OF-MANAGERS STRUCTURE?
A: A manager-of-managers structure will provide the Advisor and the Board with
the flexibility to implement sub-advisor changes or materially modify
sub-advisory agreements without incurring the significant delay and potential
expense associated with obtaining shareholder approval.
Q: HOW DOES THE BOARD OF DIRECTORS RECOMMEND THAT I VOTE ON THIS PROPOSAL?
A: The Board of Directors believes that the proposal is in the best interests of
the Fund and its shareholders. After careful consideration, the Board of
Directors recommends that you vote "FOR" the proposal.
Q: WHEN IS MY PROXY DUE?
A: We would like to receive your vote as soon as possible, preferably before the
date of the special shareholders meeting on September 27, 2007.
Q: HOW CAN I VOTE MY PROXY?
A: By phone - please see the voting instructions on your proxy card. Call the
toll-free number listed and follow the recorded instructions.
By internet - please see the voting instructions on your proxy card for
the applicable internet address. Once there, enter the control number located on
your proxy card.
By mail - proxy cards must be marked with your vote and returned in the
business reply envelope included in this package. If you have misplaced your
envelope, please mail your proxy to:
TAG Proxy Services
P.O. Box 238
Lyndhurst, NJ 07071-9902
In person - you may submit your proxy in person at the special
shareholders meeting to be held on Thursday, September 27, 2007 at 2:00 p.m.,
Central time, at the offices of the Advisor, located at 800 Nicollet Mall,
Minneapolis, Minnesota 55402.
Q: WILL THE FUND PAY FOR THIS PROXY SOLICITATION?
A: No. FAF Advisors has agreed to pay the costs of this proxy solicitation, as
well as the other costs of the special meeting of Fund shareholders.
Q: WHO SHOULD I CALL FOR ADDITIONAL INFORMATION ABOUT THIS PROXY STATEMENT?
A: Please call First American Investor Services at (800) 677-FUND.
IT IS IMPORTANT THAT YOU VOTE YOUR PROXY PROMPTLY. PLEASE HELP KEEP THE COSTS OF
THIS PROXY SOLICITATION REASONABLE BY VOTING TODAY.
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS OF
FIRST AMERICAN INTERNATIONAL FUND
A SERIES OF
FIRST AMERICAN INVESTMENT FUNDS, INC.
TO BE HELD ON SEPTEMBER 27, 2007
A Special Meeting of shareholders of First American International Fund
(the "Fund"), a series of the First American Investment Funds, Inc. ("FAIF"),
will be held at the offices of FAF Advisors, Inc. (the "Advisor"), 3rd Floor -
Training Room A, located at 800 Nicollet Mall, Minneapolis, Minnesota, at 2:00
p.m., Central time, on Thursday, September 27, 2007. At the Special Meeting,
shareholders will be asked to vote on the following proposals:
1. To authorize a "manager-of-managers" structure for the Fund whereby the
Advisor, subject to certain conditions, will be able to add or replace
sub-advisors to the Fund, or materially amend existing sub-advisory agreements,
without obtaining shareholder approval.
2. To transact any other business that properly comes before the Special
Meeting.
Please read the enclosed Proxy Statement carefully for information
concerning the proposal to be placed before the Special Meeting or any
adjournments or postponements thereof.
THE BOARD OF DIRECTORS RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" THE
PROPOSAL.
Only shareholders of record as of the close of business on August 10, 2007
may vote at the meeting or any adjournment(s) of the meeting.
You can vote easily and quickly by toll-free telephone call, by internet,
or by mail. Just follow the instructions that appear on your enclosed proxy
card. Whether or not you expect to be present at the meeting, please help avoid
the cost of a follow-up mailing by voting as soon as possible.
By order of the Board of Directors,
/s/ Kathleen L. Prudhomme
Kathleen L. Prudhomme
Secretary
_________, 2007
Minneapolis, Minnesota
FIRST AMERICAN INTERNATIONAL FUND
A SERIES OF
FIRST AMERICAN INVESTMENT FUNDS, INC.
800 NICOLLET MALL
MINNEAPOLIS, MINNESOTA 55402
(800) 677-3863
--------------------------------------------------------------------------------
PROXY STATEMENT
_______, 2007
--------------------------------------------------------------------------------
SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD ON SEPTEMBER 27, 2007
The Board of Directors (the "Board") of First American Investment Funds,
Inc. ("FAIF") is soliciting the enclosed proxy in connection with a special
meeting of shareholders of International Fund (the "Fund"), a separate mutual
fund series issued by FAIF, to be held on Thursday, September 27, 2007 at 2:00
p.m., and any adjournment of the meeting.
The special meeting is being held to consider the approval of a
"manager-of-managers" structure for the Fund. This structure would allow the
Advisor, with the Board's approval, to add or replace sub-advisors to the Fund,
or materially amend existing sub-advisory agreements, without obtaining
shareholder approval. The Fund has received an order from the Securities and
Exchange Commission (the "SEC") permitting it, as well as the other funds that
are series of FAIF, to operate using a manager-of-managers structure, subject to
the prior approval of the respective fund's shareholders.
In addition to serving as the Fund's investment advisor, FAF Advisors,
Inc. (the "Advisor") also serves as the administrator for the Fund and the
Advisor's affiliate, U.S. Bancorp Fund Services, LLC ("USBFS"), serves as the
Fund's sub-administrator and transfer agent. Quasar Distributors, LLC
("Quasar"), also an affiliate of the Advisor, is the distributor (principal
underwriter) of the Fund's shares. The Advisor is located at 800 Nicollet Mall,
Minneapolis, Minnesota 55402. Quasar and USBFS are located at 615 E. Michigan
Street, Milwaukee, Wisconsin 53202.
In order for the shareholder meeting to go forward, there must be a
quorum. This means that at least 10% of the Fund's shares must be represented at
the meeting -- either in person or by proxy. All returned proxies count toward a
quorum, regardless of how they are voted.
If a quorum is not obtained or if sufficient votes to approve the proposal
are not received, the persons named as proxies may propose one or more
adjournments of the meeting to permit further solicitation of proxies. In
determining whether to adjourn the meeting, the following factors may be
considered: the nature of the proposal; the percentage of votes actually cast;
the percentage of negative votes actually cast; the nature of any further
1
solicitation; and the information to be provided to shareholders with respect to
the reasons for the solicitation. Any adjournment will require a vote in favor
of the adjournment by the holders of a majority of the shares present in person
or by proxy at the meeting (or any adjournment of the meeting).
Any abstentions and broker non-votes will be counted as shares present for
purposes of determining whether a quorum is present, but will not be voted for
or against any adjournment or proposal. (Broker non-votes are shares for which
(i) the underlying owner has not voted and (ii) the broker holding the shares
does not have discretionary authority to vote on the particular matter.) This
means that abstentions and broker non-votes effectively will be a vote against
adjournment or against any proposal where the required vote is a percentage of
the shares present.
You may revoke your proxy at any time up until voting results are
announced at the shareholder meeting. You can do this by writing to the Fund's
secretary, or by voting in person at the meeting and notifying the election
judge that you are revoking your proxy. In addition, you can revoke a prior
proxy simply by voting again -- using your original proxy card or by internet or
toll-free telephone call. If you return an executed proxy card without
instructions, your shares will be voted "FOR" the proposal.
The Advisor will pay all costs of solicitation, including the cost of
preparing and mailing the notice of special shareholders meeting and this proxy
statement. Representatives of the Advisor, without cost to the Fund, may solicit
proxies by means of mail, telephone, or personal calls.
Only shareholders of record on August 10, 2007 (the "record date"), may
vote at the meeting or any adjournment of the meeting. On that date the Fund had
_____________ shares issued and outstanding. Each shareholder is entitled to one
vote for each share owned on the record date. The number of shares that you may
vote is the total number shown on the proxy card accompanying this proxy
statement. The proposal to be presented at the meeting will not entitle any
shareholder to cumulative voting or appraisal rights.
At this point, we know of no other business to be brought before the
shareholder meeting. However, if any other matters do come up, the persons named
as proxies will vote upon these matters according to their best judgment.
THE FUND'S MOST RECENT ANNUAL AND SEMI-ANNUAL REPORTS ARE AVAILABLE AT NO
COST. TO REQUEST A REPORT, PLEASE WRITE TO FIRST AMERICAN FUNDS AT 800 NICOLLET
MALL, MINNEAPOLIS, MINNESOTA 55402, OR CALL (800) 677-FUND.
Please be sure to read the entire proxy statement before casting your
vote. If you need help voting your proxy, you may call First American Investor
Services at (800) 677-FUND.
This proxy statement and proxy card were first mailed to shareholders on
or about ________, 2007.
PROPOSAL : TO APPROVE THE MANAGER-OF-MANAGERS STRUCTURE
BACKGROUND
The Advisor serves as the investment advisor to the Fund and manages the
Fund's business and investment activities, subject to the authority of the Board
of Directors. Under the Investment Advisory Agreement between the Advisor and
FAIF, the Advisor is authorized to employ, at its own expense, one or more
sub-advisors to manage the assets of any series of FAIF. Pursuant to this
authority, the Advisor has hired a sub-advisor to manage the assets of the Fund.
Where the Advisor delegates portfolio management duties to a sub-advisor, the
Investment Company Act of 1940, as amended (the "1940 Act") requires that the
sub-advisory agreement between the Advisor and the sub-advisor be approved by
Fund shareholders. Specifically, Section 15 of the 1940 Act makes it unlawful
for any person to act as an investment advisor (including as a sub-advisor) to a
mutual fund, except pursuant to a written contract that has been approved by
shareholders. Therefore, to comply with Section 15 of the 1940 Act, the Fund
2
must obtain shareholder approval in order to employ a new sub-advisor, replace
an existing sub-advisor with a new sub-advisor, materially change the terms of a
sub-advisory agreement, or continue the employment of an existing sub-advisor
when that sub-advisory agreement terminates because of an assignment (as such
term is defined under the 1940 Act) of the agreement.
In order to provide the Advisor and the Board with the flexibility to
implement sub-advisor changes and materially modify sub-advisory agreements
without incurring the significant delay and potential expense associated with
obtaining shareholder approval, the Advisor and FAIF requested and obtained from
the SEC an order exempting them from certain requirements of Section 15 of the
1940 Act and the rules thereunder (the "Order"). Subject to the conditions
delineated in the Order, the Order permits the Advisor to enter into new
sub-advisory agreements with unaffiliated sub-advisors and change the terms of
existing sub-advisory agreements with unaffiliated sub-advisors without first
obtaining shareholder approval. In order for the Fund to rely on the Order and
operate under a manager-of-managers structure, use of the structure must be
approved by a vote of the majority of the Fund's outstanding shares.
DESCRIPTION OF THE MANAGER-OF-MANAGERS STRUCTURE
Use of a manager-of-managers structure would permit the Advisor, as the
Fund's investment manager, to appoint and replace unaffiliated sub-advisors, and
enter into and amend sub-advisory agreements with unaffiliated sub-advisors on
behalf of the Fund without shareholder approval. The manager-of-managers
arrangement is intended to enable the Fund to operate with greater efficiency
and to help the Fund enhance performance by allowing the Advisor to employ
sub-advisors best suited to the needs of the Fund without incurring the expense
and delays associated with obtaining shareholder approval of sub-advisors and
related sub-advisory agreements. The process of seeking shareholder approval is
administratively expensive, and may cause delays in executing changes that the
Board and the Advisor have determined are necessary or desirable. In addition,
some of the costs of seeking such shareholder approval may be borne by the Fund
(and therefore indirectly by the Fund's shareholders). If shareholders approve
the proposal authorizing a manager-of-managers structure for the Fund, the Board
would be able to act more quickly and with less expense to appoint an
unaffiliated sub-advisor, in instances in which the Board and the Advisor
believe that the appointment would be in the best interests of the Fund and its
shareholders.
If the proposal is approved by shareholders of the Fund, shareholders will
no longer be asked to approve new sub-advisory agreements and amendments to
existing sub-advisory agreements with unaffiliated sub-advisors. However, the
Board will continue to oversee the sub-advisor selection process to help ensure
that the interests of shareholders are protected whenever the Advisor would seek
to select a sub-advisor or modify a sub-advisory agreement. Specifically, the
Board will evaluate and approve all sub-advisory agreements as well as any
modification to an existing sub-advisory agreement. In reviewing new
sub-advisory agreements or modifications to existing sub-advisory agreements,
the Board will analyze all factors that it considers to be relevant to its
determination, including the sub-advisory fees, the nature, quality and scope of
services to be provided by the sub-advisor, the investment performance of the
assets managed by the sub-advisor, as well as the sub-advisor's compliance with
federal securities laws and regulations. Furthermore, operation of the Fund
under a manager-of-managers arrangement does not: (i) permit investment
management fees paid by a Fund to the Advisor to be increased without
shareholder approval, or (ii) diminish the Advisor's responsibilities to the
Fund, including the Advisor's overall responsibility for the portfolio
management services furnished by a sub-advisor.
The Board has been closely monitoring the sub-advisor's performance record
and will be considering strategic options in light of the Fund's relative
performance. Such options could include replacing the existing sub-advisor,
adding one or more additional sub-advisors or continuing to operate without any
change in the sub-advisor. If the Board chooses to replace the sub-advisor or
add an additional sub-advisor(s) and shareholders have approved the proposal to
operate under a manager-of-managers structure, they will not be asked to approve
the new sub-advisor(s).
If the proposal is not approved by the shareholders of the Fund,
shareholder approval will continue to be required for the Advisor to enter into
new or materially amended sub-advisory agreements with respect to the Fund.
3
TERMS OF THE ORDER
Under the terms of the Order, the Advisor and the Fund must comply with a
number of conditions imposed by the SEC in order to operate under a
manager-of-managers structure, including the following:
- The approval of the shareholders of the Fund is required before the
Fund may operate under the manager-of-managers structure.
- Within 90 days of hiring any new sub-advisor, Fund shareholders must
be furnished all information about the new sub-advisor and
sub-advisory contract that would be included in a proxy statement
related to their approval of a new sub-advisory agreement in the
absence of a manager-of-managers arrangement, except that, if the
Fund has more than one sub-advisor, the Fund may disclose the
aggregate compensation to be paid to all sub-advisors, without
disclosing separately the specific fees paid to each sub-advisor.
- A majority of the Board must consist of independent directors, the
nomination of additional independent directors must be at the
discretion of the then existing independent directors, and the
independent directors must be represented by independent legal
counsel (as defined in the rules under the 1940 Act).
- The Advisor may not enter into a sub-advisory agreement with any
affiliated sub-advisor without that sub-advisory agreement,
including the compensation to be paid thereunder, being approved by
the Fund's shareholders.
The Order permits the Fund to disclose in its Statement of Additional
Information ("SAI") the aggregate compensation paid to sub-advisors, without
disclosing separately the specific fees paid to each sub-advisor. Currently,
specific fee information is required to be included both in proxy statements
relating to approval of a new sub-advisory agreement and in the Fund's SAI. Many
sub-advisors charge for advisory services according to a predetermined fee
schedule. While sub-advisors may be willing to negotiate fees lower than the
predetermined fees, particularly with large institutional clients, they are
reluctant to do so where the fees are disclosed to other prospective and
existing customers. The ability to disclose the aggregate amount of sub-advisory
fees paid to all sub-advisors, rather than to each sub-advisor, would encourage
sub-advisors to negotiate lower sub-advisory fees with the Advisor.
PROPOSED MANAGER-OF-MANAGERS RULE
On October 23, 2003, the SEC proposed Rule 15a-5 under the 1940 Act, which
essentially would allow all investment companies to utilize a
manager-of-managers arrangement without obtaining an exemptive order, subject to
a number of conditions substantially similar to those imposed by the Order. The
Order will expire on the effective date of Rule 15a-5, if adopted. Thereafter,
assuming Fund shareholders have approved the manager-of-managers structure, the
Fund will continue to operate under that structure in accordance with Rule
15a-5.
BOARD APPROVAL OF MANAGER-OF-MANAGERS ARRANGEMENT
At a meeting held February 22, 2006, the Board, including the independent
directors, unanimously approved the filing by FAIF and the Advisor of the
application for the Order. The Board determined that (i) it would be in the best
interest of Fund shareholders for the Board to have the ability, without seeking
shareholder approval, to approve the Advisor's entering into and materially
amending sub-advisory agreements, inasmuch as this would avoid the expense and
delay otherwise associated with adding or changing sub-advisors and with
changing contractual arrangements with sub-advisors, and (ii) it would be in the
best interest of Fund shareholders for the Fund not to provide specific
disclosure to shareholders and prospective shareholders concerning the
sub-advisory fees which are paid to individual sub-advisors which are not
affiliated with the Advisor, inasmuch as this might enable the Advisor to
negotiate discounts from such sub-advisors' "posted" fee rates which would not
be available if such disclosure were required. At that same meeting, the Board
recommended that shareholders approve the use of a manager-of-managers structure
and called a meeting for the purposes of voting on that proposal, contingent
upon receipt of the Order.
4
BOARD RECOMMENDATION
THE BOARD OF DIRECTORS RECOMMENDS THAT SHAREHOLDERS OF THE FUND VOTE "FOR"
APPROVAL OF THE MANAGER-OF-MANAGERS STRUCTURE.
VOTE REQUIRED FOR APPROVAL
Approval of the proposal requires the favorable vote of a majority of the
outstanding shares of the Fund, as defined in the 1940 Act, which means the
lesser of the vote of (i) 67% of the shares of the Fund present at a meeting
where more than 50% of the outstanding shares of the Fund are present in person
or by proxy, or (ii) more than 50% of the outstanding shares of the Fund.
ADDITIONAL INFORMATION ABOUT THE FUND
As of August 10, 2007, the officers and directors of the Fund, as a
group, owned less than 1% of each class of shares of the Fund. As of that date,
the following persons were known to Fund management to be the beneficial owners
of 5% or more of any class of shares of the Fund.
Name and Address Number of
of Beneficial Owner Class Shares Owned Percent of Class
------------------- ----- ------------ ----------------
ADDITIONAL INFORMATION ABOUT THE ADVISOR
The Advisor provides investment management services to individuals and
institutions, including corporations, foundations, pensions, and retirement
plans. As of June 30, 2007, the Advisor and its affiliates had more than $110.1
billion in assets under management, including investment company assets of more
than $90.9 billion. The Advisor is a wholly owned subsidiary of U.S. Bank
National Association ("U.S. Bank"), 800 Nicollet Mall, Minneapolis, Minnesota
55402, a national banking association that has professionally managed accounts
for individuals, insurance companies, foundations, commingled accounts, trust
funds, and others for over 75 years. U.S. Bank is a subsidiary of U.S. Bancorp,
800 Nicollet Mall, Minneapolis, Minnesota 55402, which is a regional multi-state
bank holding company headquartered in Minneapolis, Minnesota that primarily
serves the Midwestern, Rocky Mountain and Northwestern states. U.S. Bancorp also
has various other subsidiaries engaged in financial services. At June 30, 2007,
U.S. Bancorp and its consolidated subsidiaries had consolidated assets of more
than $222.5 billion, consolidated deposits of more than $119.7 billion and
shareholders' equity of $20.3 billion.
5
SHAREHOLDER PROPOSALS
The Fund is not required to hold annual shareholder meetings. Since the
Fund does not hold regular meetings of shareholders, the anticipated date of the
next shareholder meeting cannot be provided. To be considered for inclusion in
the proxy statement for any subsequent meeting of shareholders, a shareholder
proposal must be submitted a reasonable time before the proxy statement for the
meeting is mailed. Whether a proposal is included in the proxy statement will be
determined in accordance with applicable federal and state laws. The timely
submission of a proposal does not guarantee its inclusion.
By order of the Board of Directors,
Kathleen L. Prudhomme
Secretary
__________, 2007
6
FIRST AMERICAN INVESTMENT FUNDS, INC.
800 Nicollet Mall
Minneapolis, Minnesota 55402
THIS PROXY IS SOLICITED ON
BEHALF OF THE BOARD OF DIRECTORS
The undersigned appoints Charles D. Gariboldi, Kathleen L. Prudhomme and Jeffery
M. Wilson, or any one of them, as proxies of the undersigned, with full power of
substitution, to vote all shares of International Fund (the "Fund") held by the
undersigned on August 10, 2007, at a special shareholder meeting of the Fund, to
be held at the offices of FAF Advisors, Inc., located at 800 Nicollet Mall,
Minneapolis, Minnesota 55402, on September 27, 2007, at 2:00 p.m., Central time,
and at any adjournment thereof, with all powers the undersigned would possess if
present in person. All previous proxies given with respect to the meeting are
revoked. Receipt of the notice of special meeting and the accompanying proxy
statement is hereby acknowledged.
This proxy will be voted as instructed on the matter set forth below. It is
understood that if no choice is specified, this proxy will be voted "FOR" such
item. Upon all other matters the proxies shall vote as they deem in the best
interests of the Fund.
To authorize a "manager-of-managers" structure for the Fund whereby FAF
Advisors, Inc. will be able to add and replace sub-advisors to the Fund,
or materially amend existing sub-advisory agreements, without obtaining
shareholder approval.
_____ FOR _____ AGAINST _____ ABSTAIN
Please sign, date and return promptly in the enclosed envelope.
Note: Please sign exactly as your name appears on this proxy. When signing in a
fiduciary capacity, such as executor, administrator, trustee, attorney,
guardian, etc., please so indicate. Corporate and partnership proxies should be
signed by an authorized person indicating the person's title.
Dated: _____________________, 2007
-----------------------------------
Signature(s) (Title(s), if applicable)
You may also vote by touch tone phone or the Internet. Call toll free
1-888-221-0697 or access www.myproxyonline.com. See the enclosed insert for
further instructions on voting by phone or Internet.
YOUR VOTE IS IMPORTANT!
PLEASE VOTE YOUR PROXY TODAY!
You have four easy ways to vote - please read the accompanying proxy statement
and choose the method that's most convenient for you.
- VOTE BY TELEPHONE. Call our toll-free dedicated voting number
1-888-221-0697. The voting site is open 24 hours a day, 7 days a
week. For each proxy card received, enter the CONTROL NUMBER printed
on the card and follow the recorded instructions. Your vote will be
confirmed at the end of the call.
- VOTE ON THE INTERNET. Log on to our internet voting web site - -
WWW.MYPROXYONLINE.COM and enter your CONTROL NUMBER. Follow the
on-screen instructions. Vote each proxy card received separately.
You may request an e-mail confirmation of your vote.
- VOTE BY MAIL. Simply vote and sign the enclosed proxy card(s) and
return it in the enclosed postage-paid reply envelope. NOTE: PLEASE
DO NOT RETURN YOUR PROXY CARD(S) IF YOU VOTE BY PHONE, INTERNET OR
FAX.
- VOTE IN PERSON. You may vote in person at the special shareholder
meeting to be held on Thursday, September 27, 2007, at the offices
of the fund's investment advisor, located at 800 Nicollet Mall,
Minneapolis, Minnesota 55402.
Please accept our thanks for your cooperation and prompt attention to this
matter. YOUR VOTE IS VERY IMPORTANT AND WILL HELP SAVE THE EXPENSE OF A
FOLLOW-UP REQUEST.
CORRESP
2
filename2.txt
August 2, 2007
VIA EDGAR
U.S. Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: First American Investment Funds, Inc.
File Nos. 033-16905 and 811-05309
Preliminary Proxy Statement
Dear Sir or Madam:
On behalf of First American Investment Funds, Inc. (the "Fund"),
transmitted herewith for filing pursuant to Rule 14a-6(a) under the Securities
Exchange Act of 1934, is a preliminary proxy statement ("Proxy Statement") to be
used in connection with the special meeting of the shareholders of International
Fund, a series of the Fund, to be held on or about September 27, 2007 (the
"Special Meeting"). The Proxy Statement consists of a notice of meeting, proxy
statement and form of proxy.
The Special Meeting will be held to consider the approval of a
"manager-of-managers" structure for International Fund whereby the Advisor,
under certain circumstances, will be able to add or replace sub-advisors to the
Fund, or materially amend existing sub-advisory agreements, without obtaining
shareholder approval.
The definitive materials will be released to shareholders on or about
August 20, 2007.
If you have any questions or comments regarding the foregoing, please
contact me at (612) 303-7987.
Sincerely,
/s/ Richard J. Ertel
Richard J. Ertel
Assistant Secretary