EXHIBIT 8
FUND ACCOUNTING AGREEMENT
AGREEMENT made as of this _____ day of __________, 2004 by and between
Opus Investment Trust, a Massachusetts business trust having its principal place
of business at 000 Xxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxxxxxx 00000 (hereinafter
called the "Fund") and The Bank of New York, a New York corporation authorized
to do a banking business, having its principal place of business at Xxx Xxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 (hereinafter called the "Bank").
W I T N E S S E T H:
- - - - - - - - - -
In consideration of the mutual agreements herein contained, the Fund and
the Bank hereby agree as follows:
1. The Fund hereby appoints the Bank to perform the duties
hereinafter set forth.
2. The Bank hereby accepts appointment and agrees to perform the
duties hereinafter set forth.
3. Subject to the provisions of paragraphs 4 and 5 below, the Bank
shall compute the net asset value per share of each Series of shares listed on
Schedule I hereto (the "Series") of the Fund and shall value the securities held
by the Fund (the "Securities") at such times and dates and in the manner
specified in the then currently effective Prospectus and Statement of Additional
Information (the "Prospectus") of the Fund, except that notwithstanding any
language in the Prospectus, in no event shall the Bank be required to determine,
or have any obligations with respect to, whether a market price represents any
fair or true value, nor to adjust any price to reflect any events or
announcements, including, without limitation, those with respect to the issuer
thereof, it being agreed that all such determinations and considerations shall
be solely for the Fund.
4. To the extent valuation of Securities or computation of a
Series' net asset value as specified in the Fund's then currently effective
Prospectus is at any time inconsistent with any applicable laws or regulations,
the Fund shall immediately so notify the Bank in writing and thereafter shall
either furnish the Bank at all appropriate times with the values of such
Securities and each Series' net asset value, or subject to the prior approval of
the Bank (which approval shall not be unreasonably withheld), instruct the Bank
in writing to value Securities and compute each Series' net asset value in a
manner which the Fund then represents in writing to be consistent with all
applicable laws and regulations. The Fund may also from time to time, subject to
the prior approval of the Bank, instruct the Bank in writing to compute the
value of the Securities or a Series' net asset value in a manner other than as
specified in paragraph 3 of this Agreement. By giving such instruction, the Fund
shall be deemed to have represented that such instruction is consistent with all
applicable laws and regulations and the then currently effective Prospectus of
the Fund. The Fund shall have sole responsibility for determining the method of
valuation of Securities and the method of computing each Series' net asset
value.
5. The Fund shall furnish the Bank with any and all instructions,
explanations, information, specifications and documentation deemed necessary by
the Bank in the performance of its duties hereunder, including, without
limitation, the amounts or written formula for calculating the amounts and times
of accrual of Fund liabilities and expenses. The Bank shall not be required to
include as Fund liabilities and expenses, nor as a reduction of net asset value,
any accrual for any federal, state, or foreign income taxes unless the Fund
shall have specified to the Bank the precise amount of the same to be included
in liabilities and expenses or used to reduce net asset value. The Fund shall
also furnish the Bank with bid, offer, or market values of Securities if the
Bank notifies the Fund that same are not available to the Bank from a security
pricing or similar service utilized, or subscribed to, by the Bank and approved
by the Board of Trustees which the Bank in its judgment deems reliable at the
time such information is required for calculations hereunder. At any time and
from time to time, the Fund also may furnish the Bank with bid, offer, or market
values of Securities and instruct the Bank to use such
information in its calculations hereunder. The Fund shall notify the Bank from
time to time in writing of the securities pricing or similar services approved
and authorized by the Fund's Board of Trustees with respect to the Fund which
the Bank may use in connection with the services provided by the Bank to the
Fund under this Agreement.
6. The Bank shall promptly advise the Fund, the Fund's custodian,
the Fund's transfer agent, and such other persons as the Fund and the Bank may
mutually agree upon, of the net asset value of each Series upon completion of
the computations required to be made by the Bank pursuant to this Agreement.
7. The Bank shall, as agent for the Fund, maintain and keep current
the books, accounts and other documents, if any, listed in Appendix A hereto and
made a part hereof, as such Appendix A may be amended from time to time, and
preserve any such books, accounts and other documents in accordance with the
applicable provisions of Rule 31a-2 of the General Rules and Regulations under
the Investment Company Act of 1940, as amended (the "Rules"). Such books,
accounts and other documents shall be made available upon reasonable request for
inspection by officers, employees and auditors of the Fund and the Securities
and Exchange Commission during the Bank's normal business hours and otherwise
treat as confidential all books, accounts and other documents relative to the
Fund and its shareholders; except the Bank may disclose the same to its internal
and external accountants, auditors and counsel as applicable, its regulators,
and to any other person or entity when it is advised by its counsel that it
could be liable for a failure to do so when requested to divulge such
information by duly-constituted authorities or court process.
8. All records maintained and preserved by the Bank pursuant to
this Agreement which the Fund is required to maintain and preserve in accordance
with the above-mentioned Rules shall be and remain the property of the Fund and
shall be surrendered to the Fund promptly upon request in the form in which such
records have been maintained and preserved. Upon reasonable request of the Fund,
the Bank shall provide in hard copy or on micro-film, whichever the Bank shall
elect, any records included in any such delivery which are maintained by the
Bank on a computer disc, or are similarly maintained, and the Fund shall
reimburse the Bank for its expenses of providing the same.
9. The Bank, in performing the services required of it under the
terms of this Agreement, shall be entitled to reasonably rely fully on the
accuracy and validity of any and all instructions, explanations, information,
specifications and documentation furnished to it by the Fund and shall have no
duty or obligation to review the accuracy, validity or propriety of such
instructions, explanations, information, specifications or documentation,
including, without limitation, (i) evaluations of Securities; (ii) the amounts
or formula for calculating the amounts and times of accrual of Fund liabilities
and expenses; and (iii) the amounts receivable and the amounts payable on the
sale or purchase of Securities. In the event the Bank's computations hereunder
rely, in whole or in part, upon information, including, without limitation, bid,
offer or market values of Securities or other assets, or accruals of interest or
earnings thereon, from a pricing or similar service utilized, or subscribed to,
by the Bank which the Fund's Board of Trustees have approved and which the Bank
in its judgment deems reliable, the Bank shall not be responsible for, under any
duty to inquire into, or deemed to make any assurances with respect to, the
accuracy or completeness of such information, nor shall the Bank be required to
determine, or have any obligations with respect to, whether a market price
represents any fair or true value, nor to adjust any price to reflect any events
or announcements, including, without limitation, those with respect to the
issuer thereof. In the event that the Bank receives any document, information,
direction, instruction, either written or oral, which includes an error or
discrepancy, the Bank shall endeavor to notify the relevant Fund of the same,
but the Bank shall incur no liability whatsoever for not providing such notice
or for not discovering or identifying such error or discrepancy, whether or not
such failure to discover, identify or give notice is contrary to the Bank's
standard of care, it being agreed by the Fund and the Bank that the
responsibility and liability for the same is solely that of the person or entity
producing the discrepancy or error and the Bank is assuming no duty or
obligation with respect to such errors or discrepancies.
10. The Bank shall not be required to inquire into any valuation of
Securities or other assets by the Fund or any third party described in preceding
paragraph 9 hereof, even though the Bank in performing services similar to the
services provided pursuant to this Agreement for others may receive different
valuations of the same or different securities of the same issuers.
11. The Bank, in performing the services required of it under the
terms of this Agreement, shall not be responsible for determining whether any
interest accruable to the Fund is or will be actually paid, but will accrue such
interest until otherwise instructed by the Fund.
12. The Bank shall not be responsible or liable for any failure or
delay in the performance of its obligations under this Agreement arising out of
or caused, directly or indirectly, by circumstances beyond its reasonable
control, including without limitation, acts of God; earthquakes; fires; floods;
wars; civil or military disturbances; sabotage; epidemics; riots; interruptions,
loss, or malfunctions of utilities, computer (hardware or software) or
communication services; accidents; labor disputes; acts of civil or military
authority or governmental actions. Nor shall the Bank be responsible for delays
or failures to supply the information or services specified in this Agreement
where such delays or failures are caused by the failure of any person(s) other
than the Bank to supply any instructions, explanations, information,
specifications or documentation reasonably deemed necessary by the Bank in the
performance of its duties under this Agreement, except that if the Bank is not
maintaining the back-up systems and disaster recovery capabilities required by
its regulators it may not invoke this clause to excuse any delay or
non-performance which would have been avoided if it were.
13. No provision of this Agreement shall prevent the Bank from
offering services similar or identical to those covered by this Agreement to any
other corporations, associations or entities of any kind. Any and all
operational procedures, techniques and devices developed by the Bank in
connection with the performance of its duties and obligations under this
Agreement, including those developed in conjunction with the Fund, shall be and
remain the property of the Bank, and the Bank shall be free to employ such
procedures, techniques and devices in connection with the performance of any
other contract with any other person whether or not such contract is similar or
identical to this Agreement.
14. The Bank may, with respect to questions of law, apply to and
obtain the advice and opinion of counsel to the Fund or its own counsel and
shall be entitled to rely on the advice or opinion of such counsel. The costs of
any such advice or opinion shall be borne by the Bank unless the Fund and the
Bank otherwise agree.
15. The Bank shall be entitled to rely upon any oral instructions
received by the Bank and reasonably believed by the Bank to be given by or on
behalf of the Fund, even if the Bank subsequently receives written instructions
contradicting such oral instructions. The books and records of the Bank with
respect to the content of any oral instruction shall be binding and conclusive.
The Bank will promptly notify a duly authorized representative of the Fund of
any contradictory instructions it receives.
16. Notwithstanding any other provision contained in this Agreement,
the Bank shall have no duty or obligation with respect to, including, without
limitation, any duty or obligation to determine, or advise or notify the Fund
of: (a) the taxable nature of any distribution or amount received or deemed
received by, or payable to, the Fund; (b) the taxable nature or effect on the
Fund or its shareholders of any corporate actions, class actions, tax reclaims,
tax refunds, or similar events; (c) the taxable nature or taxable amount of any
distribution or dividend paid, payable or deemed paid, by the Fund to its
shareholders; or (d) the effect under any federal, state, or foreign income tax
laws of the Fund making or not making any distribution or dividend payment, or
any election with respect thereto.
17. The Bank shall not be liable for any loss, damage or expense,
including counsel fees and other costs and expenses of a defense against any
claim or liability, resulting from, arising out of, or in connection with its
performance hereunder, including its actions or omissions, or errors, unless
such loss, damage or expense arises out of the negligence or willful misconduct
of the Bank. In no event shall the Bank be liable to the Company or any third
party for special, indirect, or consequential damages, or for lost profits or
loss of business, arising under or in connection with this Agreement, even if
previously informed of the possibility of such damages and regardless of the
form of action.
18. Without limiting the generality of the foregoing, the Fund shall
indemnify the Bank against and save the Bank harmless from any loss, damage or
expense, including counsel fees and other costs and expenses of a defense
against any claim or liability, arising from any one or more of the following:
(a) Errors in records or instructions, explanations,
information, specifications or documentation of any kind, as the case may be,
supplied to the Bank by any third party described in preceding paragraph 9
hereof or by or on behalf of the Fund;
(b) Action or inaction taken or omitted to be taken by the Bank
pursuant to written or oral instructions of the Fund or otherwise without
negligence or willful misconduct;
(c) Any action taken or omitted to be taken by the Bank in good
faith in accordance with the advice or opinion of counsel for the Fund or its
own counsel;
(d) Any improper use by the Fund or its agents, distributor or
investment advisor of any valuations or computations supplied by the Bank
pursuant to this Agreement;
(e) The method of valuation of the Securities and the method of
computing each Series' net asset value; or
(f) Any valuations of Securities or net asset value provided by
the Fund.
19. In consideration for all of the services to be performed by the
Bank as set forth herein the Bank shall be entitled to receive reimbursement for
all out-of-pocket expenses and such compensation as may be agreed upon in
writing from time to time between the Bank and the Fund and attached as a
schedule hereto.
20. Attached hereto as Appendix B is a list of persons duly
authorized by the Fund's Agreement and Declaration of Trust and By-Laws to
execute this Agreement and
give any written or oral instructions, or written or oral specifications, by or
on behalf of the Fund. From time to time the Fund may deliver a new Appendix B
to add or delete any person and the Bank shall be entitled to rely on the last
Appendix B actually received by the Bank.
21. The Fund represents and warrants to the Bank that it has all
requisite power to execute and deliver this Agreement, to give any written or
oral instructions contemplated hereby, and to perform the actions or obligations
contemplated to be performed by it hereunder, and has taken all necessary action
to authorize such execution, delivery, and performance.
22. This Agreement shall not be assignable by the Fund without the
prior written consent of the Bank, or by the Bank without the prior written
consent of the Fund.
23. Either of the parties hereto may terminate this Agreement by
giving the other party a notice in writing specifying the date of such
termination, which shall not be less than ninety (90) days after the date of
giving of such notice. Upon the date set forth in such notice, the Bank shall
deliver to the Fund all records then the property of the Fund and, upon such
delivery, the Bank shall be relieved of all duties and responsibilities under
this Agreement.
24. This Agreement may not be amended or modified in any manner
except by written agreement executed on behalf of both parties hereto.
25. This Agreement is executed in the State of New York and all laws
and rules of construction of the State of New York (other than those relating to
choice of laws) shall govern the rights, duties and obligations of the parties
hereto. The Fund and the Bank hereby consent to the exclusive jurisdiction of a
state or federal courts situated in New York City, New York in connection with
any dispute arising hereunder. The Fund hereby irrevocably waives, to the
fullest extent permitted by applicable law, any objection which it may now or
hereafter have to the laying of venue of any such preceding brought in such a
court and any claim that such proceeding brought in such a court has been
brought in an inconvenient form. The Fund and the Bank each hereby irrevocably
waives any and all rights to trial by jury in any legal proceeding arising out
of or relating to this Agreement.
26. The performance and provisions of this Agreement are intended to
benefit only the Bank and the Fund, and no rights shall be granted to any other
person by virtue of this Agreement.
27. A copy of the Declaration of Trust of the Fund is on file with
the Secretary of the Commonwealth of Massachusetts, and notice is hereby given
that this instrument is executed on behalf of the Board of Trustees of the Fund
as Trustees and not individually and that the obligations of this instrument are
not binding upon any of the Trustees or shareholders individually but are
binding only upon the assets and property of the Fund.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first written above.
OPUS INVESTMENT TRUST
By:
---------------------------
THE BANK OF NEW YORK
By:
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APPENDIX A TO FUND ACCOUNTING AGREEMENT
BETWEEN
THE BANK OF NEW YORK
AND
OPUS INVESTMENT TRUST
I. The Bank of New York (the "Bank"), as agent for Opus Investment Trust
(the "Fund"), shall maintain the following records on a daily basis for each
Series.
1. Report of priced portfolio securities
2. Statement of net asset value per share
II. The Bank shall maintain the following records on a monthly basis for
each Series:
1. General Ledger
2. General Journal
3. Cash Receipts Journal
4. Cash Disbursements Journal
5. Subscriptions Journal
6. Redemptions Journal
7. Accounts Receivable Reports
8. Accounts Payable Reports
9. Open Subscriptions/Redemption Reports
10. Transaction (Securities) Journal
11. Broker Net Trades Reports
III. The Bank shall prepare a Holdings Ledger on a quarterly basis, and
a Buy-Sell Ledger (Broker's Ledger) on a semiannual basis for each Series.
The above reports may be printed according to any other required
frequency to meet the requirements of the Internal Revenue Service, The
Securities and Exchange Commission and the Fund's Auditors.
IV. For internal control purposes, the Bank uses the Account Journals
produced by The Bank of New York Custody System to record daily settlements of
the following for each Series:
1. Securities bought
2. Securities sold
3. Interest received
4. Dividends received
5. Capital stock sold
6. Capital stock redeemed
7. Other income and expenses
All portfolio purchases for the Fund are recorded to reflect expected
maturity value and total cost including any prepaid interest.
APPENDIX B
I, ______________________, of Opus Investment Trust, a Massachusetts
business trust (the "Fund"), do hereby certify that:
The following individuals serve in the following positions with the
Fund, and each has been duly elected or appointed by the Board of Trustees of
the Fund to each such position and qualified therefor in conformity with the
Fund's Declaration of Trust and By-Laws, and the signatures set forth opposite
their respective names are their true and correct signatures. Each such person
is authorized to give written or oral instructions or written or oral
specifications by or on behalf of the Fund to the Bank.
Name Position Signature
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SCHEDULE I
SERIES
Opus Cash Reserves
DOMESTIC CUSTODY, FUND ACCOUNTING
AND FUND ADMINISTRATION
FEE SCHEDULE FOR
OPUS CASH RESERVE
October 7, 2004
[LOGO] THE BANK OF NEW YORK
--------------------------------------------------------------------------------
U.S. Safekeeping
0.50 basis point per annum on total gross adjusted assets.
Transaction Charges
$5.00* Book-Entry Settlements/Paydowns-DTC/FRB
$15.00 Physical Settlements, Options, Futures, and Other Derivatives
$40.00 Eurodollar C/D's
$7.50 For wires and checks not related to security transactions
* Subject to $10 surcharge for instructions not delivered in an electronic,
STP manner
There is an annual minimum safekeeping fee of $10,000 per portfolio.
Fund Accounting - Daily NAV
1.50 basis points annually on the first $2 billion in total gross adjusted
assets.
1.25 basis points on the excess over $2 billion.
Note: There is an additional fee for share classes in excess of 2.
There is an annual minimum Fund Accounting fee of $40,000 per portfolio.
Fund Administration Services - Bundled
2.0 basis points annually on the first $2 billion in total gross adjusted
assets.
1.75 basis points on the excess over $2 billion.
There is an annual minimum Fund Administration fee of $55,000 per portfolio.
DOMESTIC CUSTODY, FUND ACCOUNTING
AND FUND ADMINISTRATION
FEE SCHEDULE FOR
OPUS CASH RESERVE
October 7, 2004
[LOGO] THE BANK OF NEW YORK
--------------------------------------------------------------------------------
Fund Administration Services Schedule
Financial Reporting
.. Assist in the preparation of Board materials and attend meetings as needed.
Prepare annual and semi-annual reports to shareholders - first two drafts
of the Financial reports in Printer Ready form.
.. Prepare and file Form N-SAR and Form 24f-2
.. Monitor expense files and timely accrual of expenses
.. Prepare statistical reports for outside services (i.e. IBC, ICI, Lipper
Analytical, etc.)
.. Determine each Fund's dividend/distribution rates, compute appropriate
yields, total returns and dividend reporting.
Compliance
.. Monitor portfolio compliance, provide 2a-7 reporting
.. Monitor Blue-Sky up to five states
Tax Services
Preparation of tax returns in tandem with independent accountants, monitor IRC
compliance, calculate distributions and year-end shareholder tax reporting
information.
Corporate Governance
Provide Xxxxxxxx-Xxxxx sub-certifications $750 per fund per annum
2004 Mutual Fund Accounting Security Pricing Fee Schedule
Monthly Pricing Base Charge per fund per annum: $500.00
DOMESTIC CUSTODY, FUND ACCOUNTING
AND FUND ADMINISTRATION
FEE SCHEDULE FOR
OPUS CASH RESERVE
October 7, 2004
[LOGO] THE BANK OF NEW YORK
--------------------------------------------------------------------------------
Out-of-Pocket
In addition to the above fee schedule, Out of Pocket Charges will be charged and
include, but are not limited to:
. Securities pricing and broker quotes.
. Telephone and other transmittal charges.
. SAS 70 Report.
. Dual set of books for tracking tax amortization and accretion
elections.
. Early cash availability.
. Apollo access.
. Special audits and pricing audits.
. Postage and insurance on physical transfer items.
. Federal Reserve charges.
. Global sub-custodian out-of-pocket charges.
. Duplicating charges.
. Legal, audit and other professional fees.
. Travel and expenses for attendance at board, committee or any special
meetings.
. Preparation of custom reports (excludes annual and semi-annual
reports).
. Consultative services or other functions including fund
reorganizations and special projects will be charged at a negotiated
rate.
. Custom electronic interfaces and/or programming beyond normal and
customary system development associated with conversion and
thereafter.
Earnings Credit on Balances/Interest on Overdrafts
Earnings credits are provided to each portfolio on 90% of the daily available
balance in the domestic custodian account after reduction for Federal Reserve
requirements, computed at the 90-day T- xxxx rate minus 25 bps on the day of the
balance.
Overdrafts, excluding bank errors, will cause a reduction of earnings credits
daily, computed at 2.0% above the Federal Funds rate on the day of the
overdraft.
Credits and debits will be accumulated daily and offset monthly against the
Bank's safekeeping custodian fees. To the extent a net debit is accumulated,
each portfolio will be billed for the expense. To the extent a net earnings
credit is generated, such excess earnings credit can be carried forward until
calendar year end. Any credits remaining after that date will be forfeited.
DOMESTIC CUSTODY, FUND ACCOUNTING
AND FUND ADMINISTRATION
FEE SCHEDULE FOR
OPUS CASH RESERVE
October 7, 2004
[LOGO] THE BANK OF NEW YORK
--------------------------------------------------------------------------------
Minimum Fee Waiver
To reflect our sincere desire to demonstrate our capabilities and to form a
mutually beneficial partnership with Allmerica Financial, we will waive our
minimum fees for the first six months of operation of the fund.
Billing Cycle
All fees will be billed on a monthly basis.
All of the information contained within this schedule is confidential and should
not be made available to third parties prior to reference to The Bank of New
York.
Agreed and accepted by:
OPUS Cash Reserve The Bank of New York
By: (signature) By: (signature)
----------------------- ----------------------
Name: Name:
--------------------------------- --------------------------------
Title: Title:
-------------------------------- -------------------------------
Date: Date:
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