Exhibit (d)(6)
FORM OF SUB-ADVISORY AGREEMENT
THIS AGREEMENT is made this 23rd day of September, 2002 by and between ING
INVESTMENTS, LLC, an Arizona limited liability company (the "Investment
Adviser"), and ING Investment Management Advisors B.V. (the "Sub-Adviser").
WITNESSETH
WHEREAS, the Investment Adviser is registered and will remain registered
during the term of this Agreement as an investment adviser under the Investment
Advisers Act of 1940, as amended (the "Investment Advisers Act"), and engages in
the business of acting as an investment adviser; and
WHEREAS, the Sub-Adviser is registered and will remain registered during
the term of this Agreement as an investment adviser under the Investment
Advisers Act, and engages in the business of acting as an investment adviser;
and
WHEREAS, the Investment Adviser desires to retain the Sub-Adviser to
furnish investment advisory services to the Investment Adviser in connection
with the underlying investment funds specified on Schedule A hereto
(collectively, the "Funds," and each, a "Fund"), each of which, as such schedule
may be amended from time to time, is an investment portfolio of the ING Mutual
Funds (the "Trust"); and
WHEREAS, the Trust's Board of Trustees authorized this agreement to be
created at a meeting held August 20, 2002 with ING Investments, LLC; and
WHEREAS, the Sub-Adviser is willing to make available to the Investment
Adviser and to the Funds certain sub-investment advisory services.
NOW, THEREFORE, in consideration of the mutual covenants herein contained
and other good and valuable consideration, the receipt whereof is hereby
acknowledged, the parties hereto agree as follows:
1. Appointment. The Investment Adviser hereby appoints the Sub-Adviser to
provide certain sub-investment advisory services for the period and on the terms
set forth in this Agreement. The Sub-Adviser accepts such appointment and agrees
to furnish the services herein set forth for the compensation herein provided.
2. Sub-Investment Advisory Services. Subject always to the supervision of the
Investment Adviser and the Trust's Board of Trustees, the Sub-Adviser will
furnish an investment program in respect of, and make investment decisions for,
the portions of the Funds allocated to it by the Investment Adviser, and place
all orders for the purchase and sale of securities for such portions of the
Funds. In the performance of its duties, the Sub-Adviser will comply with the
provisions of the Trust's organizational documentation, and the respective
stated investment objective, policies and restrictions of each of the Funds, as
amended, and will comply with other policies
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which the Trust's Board of Trustees or the Investment Adviser, as the case may
be, may from time to time reasonably determine and communicate to the
Sub-Adviser.
The Sub-Adviser further agrees that it:
(a) will use the same skill and care in providing such services as it uses
in providing services to other accounts for which it has investment
management responsibilities; and
(b) will place orders pursuant to its investment determinations for the
Funds either directly with the issuer or with any broker or dealer;
and
(c) will report regularly to the Board of Trustees of the Trust and to the
Investment Adviser and will make appropriate persons available for the
purpose of reviewing with representatives of the Investment Adviser on
a regular basis the management of the Funds, including, without
limitation, review of the general investment strategy of the Funds,
interest rate considerations and general conditions affecting the
marketplace, such reports and reviews to be scheduled at times
mutually acceptable to the Sub-Adviser, the Board of Trustees and the
Investment Adviser; and
(d) will maintain books and records with respect to the Funds' securities
transactions as are required by applicable laws and regulations to be
maintained and will furnish the Trust's Board of Trustees such
periodic and special reports as are required by applicable laws and
regulations to be furnished or as the Board may reasonably request;
and
(e) will treat confidentially and as proprietary information of the Trust
all records and other information relative to the Trust, and will not
use such records and information for any purpose other than
performance of its responsibilities and duties hereunder, except after
prior notification to and approval in writing by the Trust, except
where such information is already in the Sub-Adviser's possession as
of the date of this Agreement, is developed independently by the
Sub-Adviser, becomes publicly available through no fault of the
Sub-Adviser or is disclosed pursuant to law, rule or legal process;
and
(f) in making investment recommendations for the Funds, the Sub-Adviser's
personnel will not inquire as to or take into consideration whether
the issuers of securities proposed for purchase or sale for a Fund's
accounts are clients of the Sub-Adviser or of its affiliates. In
dealing with such clients, the Sub-Adviser and its affiliates will not
inquire as to or take into consideration whether securities of those
customers are held by the Trust; and
(g) will provide advice and recommendations with respect to other aspects
of the business and affairs of the Funds and perform such other
functions related to the provision of investment management; and
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(h) services as the Investment Adviser may reasonably request.
3. Broker Dealer Relationships. With regard to the portions of the Funds
allocated to it, the Sub-Adviser is responsible for decisions to buy and sell
securities, broker-dealer selection, and negotiation of brokerage commission
rates. The Sub-Adviser may select any affiliated person of the Trust, the
Investment Adviser, or the Sub-Adviser to the extent permitted pursuant to the
Trust's procedures for securities transactions with affiliated brokers pursuant
to Section 17(e)(2) and Rule 17e-1 under the Investment Company Act.
The Sub-Adviser's primary consideration in effecting a security transaction
will be execution at a price that is reasonable and fair compared to the
commission, fee or other remuneration received or to be received by other
brokers-dealers in connection with comparable transactions, including similar
securities being purchased or sold on a securities exchange during a comparable
period of time. In selecting a broker-dealer to execute each particular
transaction, the Sub-Adviser will take the following into consideration: the
best net price available; the reliability, integrity and financial condition of
the broker-dealer; the size of and difficulty in executing the order; and the
value of the expected contribution of the broker-dealer to the investment
performance of the Fund on a continuing basis. Accordingly, the price to a Fund
in any transaction may be less favorable than that available from another
broker-dealer if the difference is reasonably justified by other aspects of the
portfolio execution services offered.
Subject to such policies and procedures as the Board of Trustees may
determine, the Sub-Adviser shall not be deemed to have acted unlawfully or to
have breached any duty created by this Agreement or otherwise solely by reason
of its having caused a Fund to pay a broker or dealer that provides brokerage
and research services to the Sub-Adviser for the Fund's use an amount of
commission for effecting a portfolio investment transaction in excess of the
amount of commission another broker or dealer would have charged for effecting
that transaction, if the Sub-Adviser determines in good faith that such amount
of commission was reasonable in relation to the value of the brokerage and
research services provided by such broker or dealer, viewed in terms of either
that particular transaction or the Sub-Adviser's overall responsibilities with
respect to the Fund. The Sub-Adviser is further authorized to allocate the
orders placed by it on behalf of a Fund to such brokers and dealers who also
provide research or statistical material, or other services to the Fund or the
Sub-Adviser for the Fund's use. Such allocation shall be in such amounts and
proportions as the Sub-Adviser shall determine and the Sub-Adviser will report
on said allocations regularly to the Board of Trustees of the Trust indicating
the brokers to whom such allocations have been made and the basis therefor.
4. Compliance with Applicable Requirements. In carrying out its obligations
under this Agreement, the Sub-Adviser shall at all times conform to: (a) all
applicable provisions of the Investment Company Act of 1940, as amended (the
"Investment Company Act") and the Investment Advisers Act and any rules and
regulations adopted thereunder as amended; (b) the provisions of the
Registration Statement of the Trust under the Securities Act of 1933, as
amended, and the Investment Company Act (the "Registration Statement"); (c) the
provisions of the Trust Instrument of the Trust, as amended; (d) the provisions
of the By-laws of the Trust, as amended; and (e) any other applicable provisions
of state and federal law.
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5. Books and Records. In compliance with Rule 31a-3 under the Investment
Company Act, the Sub-Adviser hereby agrees that all records, which it maintains
for the Trust on behalf of the Investment Adviser, are the property of the Trust
and further agrees to surrender promptly to the Trust or to the Investment
Adviser any of such records upon request. The Sub-Adviser further agrees to
preserve for the periods prescribed by Rule 31a-2 adopted under the Investment
Company Act all records required to be maintained by Sub-Adviser on behalf of
the Investment Adviser under Rule 31a-1 under the Investment Company Act.
6. Expenses. During the term of this Agreement, the Sub-Adviser will pay all
expenses incurred by it in connection with its activities under this Agreement
other than the cost of securities (including brokerage commissions, if any)
purchased for the Funds.
7. Compensation. For the services provided and the expenses assumed pursuant
to this Agreement, the Investment Adviser will pay the Sub-Adviser and the
Sub-Adviser will accept as full compensation therefor a fee computed daily and
paid monthly in arrears at the annual rate set forth on Schedule A, based on
each Fund's average daily net assets, computed in the manner set forth in the
Registration Statement. In the event that investment advisory fees charged to a
Fund by the Investment Adviser are waived, deferred or reduced, then
sub-advisory fees payable in accordance with this Paragraph 7 shall be
proportionally waived, deferred or reduced. Such fee reduction, if applicable,
shall be applied on a monthly basis at the time each payment of sub-advisory
fees is due hereunder. Further, if the fees payable to the Sub-Adviser begin to
accrue before the end of any month, or if this Agreement terminates before the
end of any month, then such fees for such month shall be prorated according to
the proportion which the partial period bears to the full month in which such
effectiveness or termination occurs.
8. Liability of Sub- Adviser. In the absence of willful misfeasance, bad
faith, gross negligence or reckless disregard of obligations or duties hereunder
on the part of the Sub-Adviser or any of its officers, directors or employees,
the Sub-Adviser shall not be subject to liability to the Investment Adviser for
any act or omission in the course of, or connected with, rendering services
hereunder or for any losses that may be sustained in the purchase, holding or
sale of any security.
9. Limit of Liability. The terms "ING Mutual Funds" and "Trustees" (of the
Trust) refer, respectively to the trust created and the Trustees, as trustees
but not individually or personally, acting from time to time under the Trust's
organizational documentation, to which reference is hereby made. The obligations
of "ING Mutual Funds" entered into in the name or on behalf thereof by any of
the Trustees, representatives or agents are made not individually, but in such
capacities and are not binding upon any of the Trustees, shareholders or
representatives of the Trust personally, but bind only the assets of the Funds,
and all persons dealing with the Funds or other series of the Trust must look
solely to the assets of the Funds for the enforcement of any claims against the
Trust.
10. Term. This Agreement shall become effective as it pertains to a Fund on the
date first indicated above, subject to the condition that the Trust's Board of
Trustees, including a majority of those Trustees who are not interested persons
(as such term is defined in the 0000 Xxx) of the
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Investment Adviser or the Sub-Adviser, and the shareholders of the Fund, shall
have approved this Agreement. Unless terminated as provided for herein, this
Agreement shall remain in force and effect with respect to each Fund until the
Reapproval Date set forth for such Fund on Schedule A to this Agreement, and
thereafter continue from year to year, provided that such continuance is
specifically approved at least annually: (a) (i) by the Trust's Board of
Trustees or (ii) by the vote of a majority of the Fund's outstanding voting
securities (as defined in Section 2(a)(42) of the Investment Company Act); and
(b) by the affirmative vote of a majority of the Trustees who are not parties to
this Agreement or interested persons of a party to this Agreement (other than as
Trust trustees), by votes cast in person at a meeting specifically called for
such purpose.
11. Termination. This Agreement may be terminated at any time as it pertains to
a Fund, without the payment of any penalty, by vote of the Trust's Board of
Trustees or by vote of a majority of the Fund's outstanding voting securities,
by the Investment Adviser, or by the Sub-Adviser on sixty (60) days' written
notice to the other parties. The notice provided for herein may be waived by any
party. This Agreement shall automatically terminate as it pertains to all Funds
in the event of its assignment. The term "assignment" for the purpose of this
paragraph has the meaning defined in Section 2(a)(4) of the Investment Company
Act.
12. 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 parties hereto.
13. Notices. Any notices under this Agreement shall be in writing, addressed
and delivered or mailed postage paid to the other party at such address as such
other party may designate for the receipt of such notice. Until further notice
to the other party, it is agreed that the address of the Trust and the
Investment Adviser shall be 0000 X. Xxxxxxxxxx Xxxxx Xxxx, Xxxxxxxxxx, Xxxxxxx,
00000, and the address of the Sub-Adviser shall be Xxxxxxxxxx 00, 0000 XX Xxx
Xxxxx, Xxx Xxxxxxxxxxx.
14. Questions of Interpretation. Any question of interpretation of any term or
provision of this Agreement having a counterpart in or otherwise derived from a
term or provision of the Investment Company Act shall be resolved by reference
to such term or provision of the Act. In addition, where the effect of a
requirement of the Investment Company Act reflected in any provision of this
Agreement is modified by rule, regulation or order of the Securities and
Exchange Commission, such provision shall be deemed to incorporate the effect of
such rule, regulation or order.
15. Counterparts. This Agreement may be executed in counterparts, each of which
shall constitute an original and both of which, collectively, shall constitute
one agreement.
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16. Miscellaneous. The captions in this Agreement are included for convenience
of reference only and in no way define or delimit any of the provisions hereof
or otherwise affect their construction or effect. If any provision of this
Agreement shall be held or made invalid by a court decision, statute, rule or
otherwise, the remainder of this Agreement shall not be affected thereby. This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and shall be governed by the laws of the
State of New York.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate by their respective officers on the day and year first
above written.
ING INVESTMENT MANAGEMENT ING INVESTMENTS, LLC
ADVISORS B.V.
By:________________________________ By:__________________________________
Xxxxxx X. Naka
Title:_____________________________ Senior Vice President
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SCHEDULE A
WITH RESPECT TO THE
SUB-ADVISORY AGREEMENT
BETWEEN
ING INVESTMENT MANAGEMENT, LLC
AND
AELTUS INVESTMENT MANAGEMENT, INC.
DATED: SEPTEMBER 23, 2002
ANNUAL SUB-ADVISER FEE
(AS A PERCENTAGE OF
AVERAGE DAILY NET LAST CONTINUED/APPROVED
SERIES ASSETS) BY BOARD REAPPROVAL DATE
-------------------------- ---------------------- ----------------------- -----------------
ING Global Technology Fund 0.625% August 20, 2002 September 1, 2003
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