Amended Management Agreement
Between
Nuveen Investment Trust III
and
Nuveen Asset Management
Nuveen Investment Trust III, a Massachusetts business trust registered under
the Investment Company Act of 1940 ("1940 Act") as an open-end diversified
management series investment company ("Trust"), hereby appoints Nuveen Asset
Management, a Delaware corporation registered under the Investment Advisers Act
of 1940 as an investment adviser, of Chicago, Illinois ("Manager"), to furnish
investment advisory and management services and certain administrative services
with respect to the portion of its assets represented by the shares of
beneficial interest issued in the series listed in Schedule A hereto, as such
schedule may be amended from time to time (each such series hereinafter
referred to as "Fund"). Trust and Manager hereby agree that:
1. Investment Management Services. Manager shall manage the investment
operations of Trust and each Fund, subject to the terms of this Agreement
and to the supervision and control of Trust's Board of Trustees
("Trustees"). Manager agrees to perform, or arrange for the performance of,
the following services with respect to each Fund:
(a) to obtain and evaluate such information relating to economies,
industries, businesses, securities and commodities markets, and
individual securities, commodities and indices as it may deem necessary
or useful in discharging its responsibilities hereunder;
(b) to formulate and maintain a continuous investment program in a
manner consistent with and subject to (i) Trust's agreement and
declaration of trust and by-laws; (ii) the Fund's investment objectives,
policies, and restrictions as set forth in written documents furnished
by the Trust to Manager; (iii) all securities, commodities, and tax laws
and regulations applicable to the Fund and Trust; and (iv) any other
written limits or directions furnished by the Trustees to Manager;
(c) unless otherwise directed by the Trustees, to determine from time
to time securities, commodities, interests or other investments to be
purchased, sold, retained or lent by the Fund, and to implement those
decisions, including the selection of entities with or through which
such purchases, sales or loans are to be effected;
(d) to use reasonable efforts to manage the Fund so that it will
qualify as a regulated investment company under subchapter M of the
Internal Revenue Code of 1986, as amended;
(e) to make recommendations as to the manner in which voting rights,
rights to consent to Trust or Fund action, and any other rights
pertaining to Trust or the Fund shall be exercised;
(f) to make available to Trust promptly upon request all of the
Fund's records and ledgers and any reports or information reasonably
requested by the Trust; and
(g) to the extent required by law, to furnish to regulatory
authorities any information or reports relating to the services provided
pursuant to this Agreement.
Except as otherwise instructed from time to time by the Trustees, with
respect to execution of transactions for Trust on behalf of a Fund, Manager
shall place, or arrange for the placement of, all orders for purchases,
sales, or loans with issuers, brokers, dealers or other counterparts or
agents selected by Manager. In connection with the selection of all such
parties for the placement of all such orders, Manager shall attempt to
obtain most favorable execution and price, but may nevertheless in its sole
discretion as a secondary factor, purchase and sell portfolio securities
from and to brokers and dealers who provide Manager with statistical,
research and other information, analysis, advice, and similar services. In
recognition of such services or brokerage services provided by a broker or
dealer, Manager is hereby authorized to pay such broker or dealer a
commission or spread in excess of that which might be charged by another
broker or dealer for the same transaction if the Manager determines in good
faith that the commission or spread is reasonable in relation to the value
of the services so provided.
Trust hereby authorizes any entity or person associated with Manager that
is a member of a national securities exchange to effect any transaction on
the exchange for the account of a Fund to the extent permitted by and in
accordance with Section 11(a) of the Securities Exchange Act or 1934 and
Rule 11a2-2(T) thereunder. Trust hereby consents to the retention by such
entity or person of compensation for such transactions in accordance with
Rule 11a-2-2(T)(a)(iv).
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Manager may, where it deems to be advisable, aggregate orders for its
other customers together with any securities of the same type to be sold or
purchased for Trust or one or more Funds in order to obtain best execution
or lower brokerage commissions. In such event, Manager shall allocate the
shares so purchased or sold, as well as the expenses incurred in the
transaction, in a manner it considers to be equitable and fair and
consistent with its fiduciary obligations to Trust, the Funds, and Manager's
other customers.
Manager shall for all purposes be deemed to be an independent contractor
and not an agent of Trust and shall, unless otherwise expressly provided or
authorized, have no authority to act for or represent Trust in any way.
2. Administrative Services. Subject to the terms of this Agreement and to
the supervision and control of the Trustees, Manager shall provide to the
Trust facilities, equipment, statistical and research data, clerical,
accounting and bookkeeping services, internal auditing and legal services,
and personnel to carry out all management services required for operation of
the business and affairs of the Funds other than those services to be
performed by the Trust's Distributor pursuant to the Distribution Agreement,
those services to be performed by the Trust's Custodian pursuant to the
Custody Agreement, those services to be performed by the Trust's Transfer
Agent pursuant to the Transfer Agency Agreement, those services to be
provided by the Trust's Custodian pursuant to the Accounting Agreement and
those services normally performed by the Trust's counsel and auditors.
3. Use of Affiliated Companies and Subcontractors. In connection with the
services to be provided by Manager under this Agreement, Manager may, to the
extent it deems appropriate, and subject to compliance with the requirements
of applicable laws and regulations, make use of (i) its affiliated companies
and their directors, trustees, officers, and employees and
(ii) subcontractors selected by Manager, provided that Manager shall
supervise and remain fully responsible for the services of all such third
parties in accordance with and to the extent provided by this Agreement. All
costs and expenses associated with services provided by any such third
parties shall be borne by Manager or such parties.
4. Expenses Borne by Trust. Except to the extent expressly assumed by
Manager herein or under a separate agreement between Trust and Manager and
except to the extent required by law to be paid by Manager, Manager shall
not be obligated to pay
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any costs or expenses incidental to the organization, operations or business
of the Trust. Without limitation, such costs and expenses shall include but
not be limited to:
(a) all charges of depositories, custodians and other agencies for
the safekeeping and servicing of its cash, securities, and other
property;
(b) all charges for equipment or services used for obtaining price
quotations or for communication between Manager or Trust and the
custodian, transfer agent or any other agent selected by Trust;
(c) all charges for and accounting services provided to Trust by
Manager, or any other provider of such services;
(d) all charges for services of Trust's independent auditors and for
services to Trust by legal counsel;
(e) all compensation of Trustees, other than those affiliated with
Manager, all expenses incurred in connection with their services to
Trust, and all expenses of meetings of the Trustees or committees
thereof;
(f) all expenses incidental to holding meetings of holders of units
of interest in the Trust ("Shareholders"), including printing and of
supplying each record-date Shareholder with notice and proxy
solicitation material, and all other proxy solicitation expense;
(g) all expenses of printing of annual or more frequent revisions of
Trust prospectus(es) and of supplying each then-existing Shareholder
with a copy of a revised prospectus;
(h) all expenses related to preparing and transmitting certificates
representing Trust shares;
(i) all expenses of bond and insurance coverage required by law or
deemed advisable by the Board of Trustees;
(j) all brokers' commissions and other normal charges incident to the
purchase, sale, or lending of portfolio securities;
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(k) all taxes and governmental fees payable to Federal, state or
other governmental agencies, domestic or foreign, including all stamp or
other transfer taxes;
(l) all expenses of registering and maintaining the registration of
Trust under the 1940 Act and, to the extent no exemption is available,
expenses of registering Trust's shares under the 1933 Act, of qualifying
and maintaining qualification of Trust and of Trust's shares for sale
under securities laws of various states or other jurisdictions and of
registration and qualification of Trust under all other laws applicable
to Trust or its business activities;
(m) all interest on indebtedness, if any, incurred by Trust or a
Fund; and
(n) all fees, dues and other expenses incurred by Trust in connection
with membership of Trust in any trade association or other investment
company organization.
5. Allocation of Expenses Borne by Trust. Any expenses borne by Trust
that are attributable solely to the organization, operation or business of a
Fund shall be paid solely out of Fund assets. Any expense borne by Trust
which is not solely attributable to a Fund, nor solely to any other series
of shares of Trust, shall be apportioned in such manner as Manager
determines is fair and appropriate, or as otherwise specified by the Board
of Trustees.
6. Expenses Borne by Manager. Manager at its own expense shall furnish
all executive and other personnel, office space, and office facilities
required to render the investment management and administrative services set
forth in this Agreement.
In the event that Manager pays or assumes any expenses of Trust or a Fund
not required to be paid or assumed by Manager under this Agreement, Manager
shall not be obligated hereby to pay or assume the same or similar expense
in the future; provided that nothing contained herein shall be deemed to
relieve Manager of any obligation to Trust or a Fund under any separate
agreement or arrangement between the parties.
7. Management Fee. For the services rendered, facilities provided, and
charges assumed and paid by Manager hereunder, Trust shall pay to Manager
out of the assets of each Fund fees at the annual rate for such Fund as set
forth in Schedule B to this Agreement. For each Fund, the management fee
shall accrue on each calendar day, and shall be payable monthly on the first
business day of the next succeeding calendar month.
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The daily fee accrual shall be computed by multiplying the fraction of one
divided by the number of days in the calendar year by the applicable annual
rate of fee, and multiplying this product by the net assets of the Fund,
determined in the manner established by the Board of Trustees, as of the
close of business on the last preceding business day on which the Fund's net
asset value was determined.
8. State Expense Limitation. If for any fiscal year of a Fund, its
aggregate operating expenses ("Aggregate Operating Expenses") exceed the
applicable percentage expense limit imposed under the securities law and
regulations of any state in which Shares of the Fund are qualified for sale
(the "State Expense Limit"), the Manager shall pay such Fund the amount of
such excess. For purposes of this State Expense Limit, Aggregate Operating
Expenses shall (a) include (i) any fees or expenses reimbursements payable
to Manager pursuant to this Agreement and (ii) to the extent the Fund
invests all or a portion of its assets in another investment company
registered under the 1940 Act, the pro rata portion of that company's
operating expenses allocated to the Fund, and (iii) any compensation payable
to Manager pursuant to any separate agreement relating to the Fund's
administration, but (b) exclude any interest, taxes, brokerage commissions,
and other normal charges incident to the purchase, sale or loan of
securities, commodity interests or other investments held by the Fund,
litigation and indemnification expense, and other extraordinary expenses not
incurred in the ordinary course of business. Except as otherwise agreed to
by the parties or unless otherwise required by the law or regulation of any
state, any reimbursement by Manager to a Fund under this section shall not
exceed the management fee payable to Manager by the Fund under this
Agreement.
Any payment to a Fund by Manager hereunder shall be made monthly, by
annualizing the Aggregate Operating Expenses for each month as of the last
day of the month. An adjustment for payments made during any fiscal year of
the Fund shall be made on or before the last day of the first month
following such fiscal year of the Fund if the Annual Operating Expenses for
such fiscal year (i) do not exceed the State Expense Limitation or (ii) for
such fiscal year there is no applicable State Expense Limit.
9. Retention of Sub-Adviser. Subject to obtaining the initial and
periodic approvals required under Section 15 of the 1940 Act, Manager may
retain one or more sub-advisers at Manager's own cost and expense for the
purpose of furnishing one or more of the services described in Section 1
hereof with respect to Trust or one or more Funds. Retention of a
sub-adviser shall in no way reduce the responsibilities or obligations of
Manager under this Agreement, and Manager shall be responsible to Trust and
its Funds for all acts or omissions of any sub-adviser in connection with
the performance or Manager's duties hereunder.
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10. Non-Exclusivity. The services of Manager to Trust hereunder are not
to be deemed exclusive and Manager shall be free to render similar services
to others.
11. Standard of Care. The Manager shall not be liable for any loss
sustained by reason of the purchase, sale or retention of any security,
whether or not such purchase, sale or retention shall have been based upon
the investigation and research made by any other individual, firm or
corporation, if such recommendation shall have been selected with due care
and in good faith, except loss resulting from willful misfeasance, bad
faith, or gross negligence on the part of the Manager in the performance of
its obligations and duties, or by reason of its reckless disregard of its
obligations and duties under this Agreement.
12. Amendment. This Agreement may not be amended as to the Trust or any
Fund without the affirmative votes (a) of a majority of the Board of
Trustees, including a majority of those Trustees who are not "interested
persons" of Trust or of Manager, voting in person at a meeting called for
the purpose of voting on such approval, and (b) of a "majority of the
outstanding shares" of Trust or, with respect to any amendment affecting an
individual Fund, a "majority of the outstanding shares" of that Fund. The
terms "interested persons" and "vote of a majority of the outstanding
shares" shall be construed in accordance with their respective definitions
in the 1940 Act and, with respect to the latter term, in accordance with
Rule 18f-2 under the 1940 Act.
13. Effective Date and Termination. This Agreement shall become effective
as to any Fund as of the effective date for that Fund specified in
Schedule A hereto. This Agreement may be terminated at any time, without
payment of any penalty, as to any Fund by the Board of Trustees of Trust, or
by a vote of a majority of the outstanding shares of that fund, upon at
least sixty (60) days' written notice to Manager. This Agreement may be
terminated by Manager at any time upon at least sixty (60) days' written
notice to Trust. This Agreement shall terminate automatically in the event
of its "assignment" (as defined in the 1940 Act). Unless terminated as
hereinbefore provided, this Agreement shall continue in effect with respect
to any Fund for an initial period of two (2) years from the effective date
applicable to that Fund specified in Schedule A and thereafter from year to
year only so long as such continuance is specifically approved with respect
to that Fund at least annually (a) by a majority of those Trustees who are
not interested persons of Trust or of Manager, voting in person at a meeting
called for the purpose of voting on such approval, and (b) by either the
Board of Trustees of Trust or by a "vote of a majority of the outstanding
shares" of the Fund.
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14. Ownership of Records; Interparty Reporting. All records required to
be maintained and preserved by Trust pursuant to the provisions of rules or
regulations of the Securities and Exchange Commission under Section 31(a) of
the 1940 Act or other applicable laws or regulations which are maintained
and preserved by Manager on behalf of Trust and any other records the
parties mutually agree shall be maintained by Manager on behalf of Trust are
the property of Trust and shall be surrendered by Manager promptly on
request by Trust; provided that Manager may at its own expense make and
retain copies of any such records.
Trust shall furnish or otherwise make available to Manager such copies of
the financial statements, proxy statements, reports, and other information
relating to the business and affairs of each Shareholder in a Fund as
Manager may, at any time or from time to time, reasonably require in order
to discharge its obligations under this Agreement.
Manager shall prepare and furnish to Trust as to each Fund statistical
data and other information in such form and at such intervals as Trust may
reasonably request.
15. Non-Liability of Trustees and Shareholders. Any obligation of Trust
hereunder shall be binding only upon the assets of Trust (or the applicable
Fund thereof) and shall not be binding upon any Trustee, officer, employee,
agent or Shareholder of Trust. Neither the authorization of any action by
the Trustees or Shareholders of Trust nor the execution of this Agreement on
behalf of Trust shall impose any liability upon any Trustee or any
Shareholder.
16. Use of Manager's Name. Trust may use the name "Nuveen Investment
Trust III" and the Fund names listed in Schedule A or any other name derived
from the name "Nuveen" only for so long as this Agreement or any extension,
renewal, or amendment hereof remains in effect, including any similar
agreement with any organization which shall have succeeded to the business
of Manager as investment adviser. At such time as this Agreement or any
extension, renewal or amendment hereof, or such other similar agreement
shall no longer be in effect, Trust will cease to use any name derived from
the name "Nuveen" or otherwise connected with Manager, or with any
organization which shall have succeeded to Manager's business as investment
adviser.
17. References and Headings. In this Agreement and in any such amendment,
references to this Agreement and all expressions such as "herein," "hereof,"
and "hereunder'" shall be deemed to refer to this Agreement as amended or
affected by any
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such amendments. Headings are placed herein for convenience of reference
only and shall not be taken as a part hereof or control or affect the
meaning, construction, or effect of this Agreement. This Agreement may be
executed in any number of counterparts, each of which shall be deemed an
original.
Dated: April 28, 2006
Nuveen Investment Trust III
Attest By /s/ Xxxxxxx X. Xxxxxxx
----------------------------------
Vice President
/s/ Xxxxxxxx X. X'Xxxx
--------------------------------
Nuveen Asset Management
Attest By /s/ Xxxxx X. Xxxxxxxxx
----------------------------------
Managing Director
/s/ Xxxxx X. Xxxxxx
--------------------------------
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Nuveen Investment Trust III
Management Agreement
Schedule A
The Funds of the Trust currently subject to this Agreement and the effective
date of each are as follows:
FUND EFFECTIVE DATE INITIAL TERM
---- ------------------------ --------------------
Nuveen Core Bond Fund May 1, 2006 Until August 1, 2006
Nuveen High Yield Bond Fund May 1, 2006 Until August 1, 2006
Nuveen Short Duration Bond Fund May 1, 2006 Until August 1, 2006
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Nuveen Investment Trust III
Management Agreement
Schedule B
a. Compensation pursuant to Section 7 of this Agreement shall be
calculated with respect to each Fund in accordance with the following
schedule applicable to the average daily net assets of the Fund: Each
Fund's Management Fee will equal the sum of a Fund-Level Fee and a
Complex-Level Fee.
b. The Fund-Level Fee for each Fund shall be computed by applying the
following annual rate to the average total daily net assets of the
Fund:
Rate Rate Rate
----------- ----------- ------------
Nuveen High Nuveen Short
Yield Nuveen Core Duration
Average Total Daily Net Assets Bond Fund Bond Fund Bond Fund
------------------------------ ----------- ----------- ------------
For the first $125 million................ .4000% .3000% .2000%
For the first $125 million................ .3875% .2875% .1875%
For the next $250 million................. .3750% .2750% .1750%
For the next $500 million................. .3625% .2625% .1625%
For the next $1 billion................... .3500% .2500% .1500%
Over $2 billion........................... .3250% .2250% .1250%
a. The Complex-Level Fee shall be calculated by reference to the daily
net assets of the Eligible Funds, as defined in section 2 below (with
such daily net assets to include, in the case of Eligible Funds whose
advisory fees are calculated by reference to net assets that include
net assets attributable to preferred stock issued by or borrowings by
the fund, such leveraging net assets) ("Complex-Level Assets"),
pursuant to the following annual fee schedule:
Complex-Level Assets Annual Fee
-------------------- ----------
First $55 billion........ .2000%
Next $1 billion.......... .1800%
Next $1 billion.......... .1600%
Next $3 billion.......... .1425%
Next $3 billion.......... .1325%
Next $3 billion.......... .1250%
Next $5 billion.......... .1200%
Next $5 billion.......... .1175%
Next $15 billion......... .1150%
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With respect to Complex-Level Assets over $91 billion, both the Fund
(via its Board of Trustees) and the Adviser intend that the parties
will meet, prior to the time when Complex-Assets reach that level, to
consider and negotiate the fee rate or rates that will apply to such
assets. The parties agree that, in the unlikely event that
Complex-Wide Assets reach $91 billion prior to the parties reaching
an agreement as to the Complex-Level Fee rate or rates to be applied
to such assets, the Complex-Level Fee rate for such Complex-Level
Assets shall be .1400% until such time as the parties agree to a
different rate or rates.
b. "Eligible Funds", for purposes of the Agreement as so amended, shall
mean all Nuveen-branded closed-end and open-end registered investment
companies organized in the United States. Any open-end or closed-end
funds that subsequently become part of the Nuveen complex because
either (a) Nuveen Investments, Inc. or its affiliates acquire the
investment adviser to such funds (or the advisor's parent), or
(b) Nuveen Investments, Inc. or its affiliates acquire the fund's
adviser's rights under the management agreement for such fund, will
be evaluated by both Nuveen management and the Nuveen Funds' Board,
on a case-by-case basis, as to whether or not these acquired funds
would be included in the Nuveen complex of Eligible Funds and, if so,
whether there would be a basis for any adjustments to the
complex-level breakpoints.
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