Exhibit h(v)
SUB-ACCOUNTING SERVICES AGREEMENT
FOR
THE RETAIL SERVICE CLASS OF
CIGNA MONEY MARKET FUND
(A SERIES OF CIGNA FUNDS GROUP)
Sub-Accounting Services Agreement made as of January 1, 1999 by and
between CIGNA Funds Group (the "Trust") on behalf of its series CIGNA Money
Market Fund (the "Fund"), and CIGNA Financial Services, Inc. ("CFS"), a
Connecticut corporation engaged in business as a broker/dealer.
WHEREAS, the Fund is a series of the Trust, a Massachusetts business
trust engaged in business as an open-end management investment company
registered under the Investment Company Act of 1940, as amended (the "Act");
WHEREAS, shares of the Fund are or may be issued in various classes,
including the retail service class;
WHEREAS, beneficial owners of retail services class shares of the Fund
will own their shares through omnibus accounts with the Fund;
WHEREAS, on behalf of the Fund the Trust desires to appoint CFS to
provide shareholder sub-accounting to holders of the retail services class
shares of the Fund under the terms and conditions described herein;
NOW, THEREFORE, the Trust, on behalf of the retail service class of the
Fund, and CFS agree as follows:
1. CFS shall provide or shall arrange to be provided shareholder
sub-accounting services to the retail service class of the Fund. The
sub-accounting services shall include the following:
a. Maintaining books and records with respect to each beneficial
owner of retail service class shares of the Fund having a
beneficial interest through an omnibus account.
b. Preparing and mailing summary monthly statements (or quarterly
statements if no activity in retail service class shares of
the Fund occurs during any month covered by the statement) to
every beneficial owner; and
c. Generating and mailing confirmations of each purchase or sale
of retail service class shares of the Fund for each beneficial
owner;
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d. Such other services normally and customarily provided by
shareholder sub-accounting service providers on behalf of
mutual funds as may be agreed on by the Fund and CFS.
2. As full compensation for services provided under this agreement, the
Fund shall pay CFS a periodic fee computed at an annual rate of twelve and one
half one-hundredths of one percent (.125%) of the average daily net assets of
the retail service class of the Fund during each fiscal year. Subject to the
limitation set forth in the preceding sentence, such fee shall not exceed such
amounts as are set from time to time by the board of Trustees of the Trust and
shall not exceed the amounts of such fees and costs as are actually paid or
incurred to sub-accounting service providers by CFS. CFS will prepare reports to
the Board of Trustees of the Trust on a quarterly basis showing amounts paid or
incurred to the various service providers and the purpose for such payments or
costs.
3. This Agreement shall not take effect until it has been approved by
votes of a majority of both (a) the Trustees of the Trust and (b) those Trustees
of the Trust who are not "interested persons" of the Trust (as defined in the
Act) and who have no direct or indirect financial interest in the operation of
the Agreement (the "Independent Trustees").
4. This Agreement shall continue in full force and effect for so long
as such continuance is specifically approved at least annually in the manner
provided for approval of the Agreement in Paragraph 3.
5. This Agreement may be terminated at any time, without payment of any
penalty, by vote of a majority of the Independent Trustees or by a vote of a
majority of the outstanding voting securities of the affected class of the Fund
on not more than 30 days' written notice to CFS, or by notice upon 30 day's
prior written notice by CFS to the Trust.
6. The Trust shall preserve copies of this Agreement and any related
agreements, for a period of not less than six years from the date of this
Agreement, the first two years of which shall be in an easily accessible place.
7. This Agreement may be amended at any time provided that no material
amendment to the Agreement shall be made unless approved in the manner provided
for approval in Paragraph 3 hereof.
8. Copies of the Master Trust Agreement establishing the Trust are on
file with the Secretary of the Commonwealth of Massachusetts, and notice is
hereby given that this document is executed on behalf of the Trust by an officer
of the Trust and not individually and that any obligations of or arising out of
this document are not binding upon any of the Trustees, officers, shareholders,
employees or agents of the Trust individually, but are binding only upon the
assets and property of the Trust.
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IN WITNESS WHEREOF, the Trust, on behalf of the Fund, and CFS have
executed this Sub-Accounting Services Agreement as of the day and year first
above written.
CIGNA FUNDS GROUP
By:_____________________________________________
By: Xxxxxx X. Xxxxxxx III
Its: Vice President and Treasurer
CIGNA FINANCIAL SERVICES, INC.
By:_____________________________________________
By:
Its:
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