From: James Wiekamp
Sent: July 5, 2007
Subject: File No. 4-538

I am writing to express my concerns about the SEC's ongoing review of Rule 12b-1. I have been doing this work for 15 years and most of my clients are middle class Americans that don't have millions to invest. I help them make decisions about thier life savings. I take that responsiblity very seriously but to be able to help them I do need to get paid. 12b-1 fees is a small payment to us that help your mothers and fathers, uncles and aunts .with their life savings We help the single mother that has very little but is just as important as the person with millions. Not everyone has enough money to be put in a managed account. Good quality mutual funds are an excellent choice to maximize their returns. Many of these individuals do not have the time or expertise to properly invest their money and we help them but We need to pay the bills too. 12b-1 fees is a fair way to do that. Middle class Americans need the continuing service, guidance and support that are provided by us, the independent financial advisors to achieve their stated investment goals. 12b-1 fees provide a tax efficient means to support the continuing service which these clients require for successful investing. The benefits of 12b-1 fees are numerous and include:

.Expanding Investor Choice - The multiple share classes made possible by Rule 12b-1 give investors choices by providing them with options in how they pay their financial advisor. The flexibility offered by Rule 12b-1 allows financial advisors to tailor a portfolio to their client's specific needs.

.Supporting Financial Literacy - Mutual funds send their investors monthly statements, confirmations, prospectuses, annual reports, and other materials. Financial advisors serve the vital role of educators by helping investors to make sense of these essential materials. 12b-1 fees are the compensation financial advisors receive for these efforts.

.Managing Client Expectations - We all know the common mistakes investors make; buying high and selling low, chasing past performance and harboring unrealistic expectations. 12b-1 fees provide financial advisors with compensation to manage their client's expectations and protect them from falling into this common investor traps.

.Insuring Small Accounts Receive Service - Investment advisory services are simply out of the reach of many small account holders. Financial advisors must have another means of being fairly compensated for servicing these accounts. 12b-1 fees provide the mechanism to insure small investors receive the support and service they need to achieve their financial goals.

.Subsidizing Additional Services - Independent financial advisors offer their mutual fund clients a variety of additional services including: consolidated account statements, periodic portfolio review meetings, quarterly newsletters, cost basis research, preparation of tax returns, and consulting on other financial decisions. These important services are made possible by the subsidy 12b-1 fees provide.

In conclusion, while it is reasonable to review the investor benefits of 12b-1 fees, it is obvious that the repeal of 12b-1 has the potential to cause great harm to thousands of individual investors who need the support and service of a trained financial advisor. As a result, I urge the SEC to allow Rule 12b-1 to continue to support my efforts to provide needed financial services to middle class American investors pursuing the financial goals.


Mr. James Wiekamp
Director of Investment Services
Home Federal Investment Services
715 N Broadway Box 113
Spring Valley MN 55975