ACCOUNTING SERVICES AGREEMENT
AGREEMENT to be effective September 15, 2000, by and between PRINCIPAL
INVESTORS FUND, INC., a Maryland corporation (hereinafter called the "Fund") and
PRINCIPAL MANAGEMENT CORPORATION, an Iowa corporation (hereinafter called the
"Administrator").
In consideration of the premises and mutual agreements herein contained,
the Fund hereby appoints the Administrator to provide portfolio accounting
services, as described herein, to the Fund and the Administrator agrees to act,
perform or assume the responsibility therefor in the manner and subject to the
conditions hereinafter set forth.
1. SERVICES FURNISHED BY THE ADMINISTRATOR
The Administrator will provide all accounting services customarily required
by investment companies, in accordance with the requirements of applicable laws,
rules and regulations and with the policies and practices of the Fund as
communicated to the Administrator from time to time, including, but not limited
to, the following:
(a) Maintain fund general ledger and journal;
(b) Prepare and record disbursements for direct Fund expenses;
(c) Prepare daily money transfer;
(d) Reconcile all Fund bank and custodian accounts;
(e) Assist Fund independent auditors as appropriate;
(f) Prepare daily projection of available cash balances;
(g) Record trading activity for purposes of determining net asset values and
daily dividend;
(h) Prepare daily portfolio valuation report to value portfolio securities and
determine daily accrued income;
(i) Determine the net asset value per share daily or at such other intervals as
the Fund may reasonably request or as may be required by law;
(j) Prepare monthly, quarterly, semi-annual and annual financial statements;
(k) Provide financial information for reports to the Securities and Exchange
Commission in compliance with the provisions of the Investment Company Act
of 1940 and the Securities Act of 1933, the Internal Revenue Service and
any other regulatory or governmental agencies as required;
(l) Provide financial, yield, net asset value, and similar information to
National Association of Securities Dealers, Inc., and other survey and
statistical agencies as instructed from time to time by the Fund;
(m) Investigate, assist in the selection of and conduct relations with
custodians, depositories, accountants, legal counsel, insurers, banks and
persons in any other capacity deemed to be necessary or desirable for the
Fund's operations; and
(n) Obtain and keep in effect fidelity bonds and directors and officers/errors
and omissions insurance policies for the Fund in accordance with the
requirements of the Investment Company Act of 1940 and the rules
thereunder, as such bonds and policies are approved by the Fund's Board of
Directors.
3. RESERVED RIGHT TO DELEGATE DUTIES AND SERVICES TO OTHERS
In providing services described in Section 2, the Administrator may
contract with others, at its own expense, for data systems, processing services
and other administrative services. The Administrator may at any time or times in
its discretion appoint (and may at any time remove) other parties, including
parties with which the Administrator is affiliated, as its agent to carry out
such provisions of the Agreement as the Administrator may from time to time
direct; provided, however, that the appointment of any such agent shall not
relieve the Administrator of any of its responsibilities or liabilities
hereunder.
4. EXPENSES BORNE BY THE ADMINISTRATOR
The Administrator will pay the following operating expenses of the Fund and
all other Fund expenses of a similar nature:
(a) Taxes, including in case of redeemed shares any initial transfer taxes,
other local, state and federal taxes, and governmental fees;
(b) Interest;
(c) The fees of its independent auditor and its legal counsel;
(d) The fees of the Custodian(s) of its assets;
(e) The fees and expenses of all directors of the Fund who are not persons
affiliated with the Administrator;
(f) The cost of a line of credit for the Fund;
(g) Fidelity bond/D&O-E&O policy;
(h) Trade association dues;
(i) Securities lending fees; and
(j) Expenses of unaffiliated directors.
5. COMPENSATION FOR SERVICES
The Fund will pay the Administrator a fee as described in Schedule A hereto
for the services provided pursuant to this agreement.
6. LIMITATION OF LIABILITY OF THE ADMINISTRATOR
The Administrator shall not be liable for any error of judgment or mistake
of law or for any loss suffered by the Fund in connection with the matters to
which this Agreement relates, except a loss resulting from willful misfeasance,
bad faith or gross negligence on the Administrator's part in the performance of
its duties or from reckless disregard by it of its obligations and duties under
this Agreement.
7. TERM AND RENEWAL
This Agreement will be effective on September 15, 2000 and will continue in
effect thereafter from year to year provided that each continuance is approved
annually by the Board of Directors of the Fund and by the vote of a majority of
the directors who are not interested persons of the Administrator, Principal
Life Insurance Company or the Fund cast in person at a meeting called for the
purpose of voting on such approval.
8. TERMINATION OF THIS AGREEMENT
This Agreement may, on sixty days written notice, be terminated at any time
without the payment of any penalty, by the Board of Directors of the Fund, or by
the Administrator.
9. AMENDMENT OF THIS AGREEMENT
No provision of this Agreement may be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by the party
against which enforcement of the change, waiver, discharge or termination is
sought.
10. ADDRESS FOR PURPOSE OF NOTICE
Any notice under this Agreement shall be in writing, addressed and
delivered or mailed, postage prepaid, to the other party at such address as such
other party may designate for the receipt of such notices. Until further notice
to the other party, it is agreed that the address of the Fund and that of the
Administrator for this purpose shall be the Principal Financial Group, Xxx
Xxxxxx, Xxxx 00000-0000.
11. MISCELLANEOUS
The captions in this Agreement are included for convenience of reference
only, and in no way define or limit any of the provisions hereof or otherwise
affect their construction or effect. This Agreement may be executed
simultaneously in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized.
Principal Investors Fund, Inc.
By
/s/Xxxxxx X. Xxxxxx
___________________________________________
Xxxxxx X. Xxxxxx, Senior Vice President
Principal Management Corporation
By
/s/Xxxxx X. Xxxxxx
___________________________________________
Xxxxx X. Xxxxxx, President
SCHEDULE A
The Fund currently pays no fee for the services provided pursuant to this
Agreement.
