EXHIBIT 99.(H)(4)
OPERATIONAL SUPPORT SERVICES AGREEMENT
HSBC Investor Funds
0000 Xxxxxxx Xxxx
Xxxxxxxx, Xxxx 00000
December __, 2001
THIS OPERATIONAL SUPPORT SERVICES AGREEMENT ("Agreement") is made
between HSBC Asset Management (Americas), Inc. ("Adviser") and HSBC Investor
Funds ("Trust") on behalf of its series, HSBC Investor Money Market Fund, HSBC
Investor U.S. Government Money Market Fund, HSBC Investor U.S. Treasury Money
Market Fund, and HSBC Investor New York Tax-Free Money Market Fund (each, a
"Fund" and collectively, the "Funds").
WHEREAS, the Trust is a registered open-end investment company
organized as a Massachusetts business trust and currently consists of thirteen
separate series;
WHEREAS, the Adviser has entered into an investment advisory contract
with the Trust to provide advisory services to the Funds (the ("Advisory
Agreement");
WHEREAS, the Adviser has agreed to provide in addition to the purely
investment advisory services provided pursuant to the Advisory Agreement,
certain administrative and operational support services in connection with the
operation of the Funds;
NOW, THEREFORE, in consideration of the mutual promises herein made,
the parties hereby agree as follows:
1. The Adviser agrees to provide the following operational support
services to the Funds:
(i) manage and coordinate the Funds' operations, including the
development of new product features and benefits;
(ii) compile statistical and research data required for the
preparation of reports and statements which are periodically
distributed to the Funds' officers and Trustees;
(iii) handle general inquiries from account representatives, such as
advice as to the status of shareholder accounts, the current
yield and dividends declared to date and provide assistance with
other questions related to shareholder accounts;
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(iv) provide support to account representatives regarding Fund
benefits and features;
(v) provide operational assistance to account representatives
regarding opening new accounts, closing accounts and making
changes to the set-up of existing accounts;
(vi) provide marketing and promotional support to the account
representatives, including the development, production and
distribution of materials that promote the Funds, their features
and benefits;
(vii) assist in the development and ongoing operation of "sweep"
accounts utilizing the Funds;
(viii) compile information required in connection with the Funds'
filings with the Securities and Exchange Commission; and
(ix) provide such other services as agreed upon by both parities.
2. For its services, the Adviser shall be entitled to a fee (the
"Operational Support Fee") from each Fund's Class A, Class B, Class C,
Class D and Class Y shares, computed daily and paid monthly, equal on
an annual basis to the percentage of each Fund's average daily net
assets set forth on Schedule A, as in effect from time to time. The
Adviser, in its sole discretion, may waive all or any part the
Operational Support Fee for any class of shares of a Fund.
3. This Agreement shall remain in full force and effect through December
31, 2002, and thereafter from year to year to the extent continuance is
approved annually by the Board of Trustees of the Trust.
4. This Agreement may be amended or modified from time to time by both
parties in writing.
5. This Agreement may be terminated by the Trust at any time on sixty (60)
days' written notice without payment of penalty, provided that such
termination by the Trust shall be directed or approved by the vote of a
majority of the Trustees of the Trust in office at the time or by the
vote of a majority of the outstanding voting securities of the Trust as
defined by the Investment Company Act of 1940 Act ("1940 Act"); and
shall automatically and immediately terminate in the event of its
assignment as defined by the 1940 Act.
6. In the absence of willful misfeasance, bad faith or gross negligence on
the part of the Adviser, or of reckless disregard of its duties and
obligations hereunder, the Adviser shall not be subject to liability
for any act or omission in the course of, or connected with, rendering
services hereunder.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their duly authorized officers, and their respective corporate
seals to be hereunto duly affixed and attested.
HSBC INVESTOR FUNDS
By: ___________________
Name:
Title:
B.
HSBC ASSET MANAGEMENT (AMERICAS), INC.
By: __________________
Name:
Title:
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SCHEDULE A
TO OPERATIONAL SUPPORT SERVICES AGREEMENT
dated as of December 10, 2001
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Fund Operational Support Fee
------------------------------------------------------------ -----------------------------------------
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Money Market Fund 0.10%
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U.S. Government Money Market Fund 0.10%
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U.S. Treasury Money Market Fund 0.10%
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New York Tax-Free Money Market Fund 0.05%
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