EXHIBIT 4(f)
INVESTMENT ADVISORY AGREEMENT
FOR MCBT GREATER CHINA FUND
AGREEMENT made this 21st day of August, 2003, by and between Xxxxxx Xxxxxx
Business Trust, an unincorporated business trust organized under the laws of The
Commonwealth of Massachusetts (the "Trust"), on behalf of its MCBT Greater China
Fund series (the "Fund"), and Xxxxxx Xxxxxx, Inc., a New York corporation (the
"Adviser"),
W I T N E S S E T H
WHEREAS, the Trust is engaged in business as an open-end series management
investment company and is so registered under the Investment Company Act of
1940, as amended (the "1940 Act"); and
WHEREAS, the Adviser is engaged in the business of rendering investment
advisory and management services and is registered as an investment adviser
under the Investment Advisers Act of 1940; and
WHEREAS, the Trust desires to retain the Adviser to furnish investment
advisory services and certain other services to the Fund;
NOW, THEREFORE, the parties hereby agree as follows:
1. APPOINTMENT OF ADVISER. The Trust hereby appoints the Adviser to act as
investment adviser of the Fund for the period and on the terms herein set forth.
The Adviser accepts such appointment and agrees to render the services herein
set forth, for the compensation herein provided.
2. DUTIES OF ADVISER. (a) The Adviser, at its expense, will furnish
continuously an investment program for the Fund, will determine, subject to the
overall supervision of the Trustees of the Trust, what investments shall be
purchased, held, sold or exchanged by the Fund
and what portion, if any, of the assets of the Fund will be held uninvested, and
shall, on behalf of the Fund, make changes in the investments of the Fund.
Subject always to the supervision of the Trustees of the Trust, the Adviser will
also manage, supervise and conduct the other affairs and business of the Fund
and matters incidental thereto, subject always to the provisions of the Trust's
Declaration of Trust and Bylaws and of the 1940 Act. The Adviser, and any
affiliate thereof, shall be free to render similar services to other investment
companies and other clients and to engage in other activities, so long as the
services rendered to the Fund hereunder are not impaired.
(b) The Adviser shall provide, without cost to the Fund all necessary
office space and the services of executive personnel for administering the
affairs of the Fund.
(c) The Adviser, at its own expense, shall place all orders for the
purchase and sale of portfolio securities for the account of the Fund with
issuers, brokers or dealers selected by the Adviser. In executing portfolio
transactions and selecting brokers or dealers, the Adviser will use its best
efforts to seek, on behalf of the Fund, the best overall terms available. In
assessing the best overall terms available for any transaction, the Adviser
shall consider all factors it deems relevant, including the breadth of the
market in the security, the financial condition and execution capabilities of
the broker or dealer, and the reasonableness of the commission, if any (for
the specific transaction and on a continuing basis). In evaluating the best
overall terms available and in selecting the broker or dealer to execute a
particular transaction, the Adviser may also consider the brokerage and
research services (as those terms are defined in Section 28(e) of the
Securities Exchange Act of 1934) provided by such broker or dealer to the
Fund or other accounts over which the Adviser or any affiliate of the Adviser
exercises investment discretion. The Adviser is authorized to pay to a broker
or dealer who provides such brokerage
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and research services a commission for executing a portfolio transaction for
the Fund which is in excess of the amount of commission another broker or
dealer would have charged for effecting that transaction, if, but only if,
the Adviser determines in good faith that such commission is 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 in
terms of all of the accounts over which the Adviser or any affiliate of the
Adviser exercises investment discretion.
3. COMPENSATION OF ADVISER. (a) As full compensation for the services and
facilities furnished by the Adviser under this Agreement, the Trust agrees to
pay to the Adviser a fee at the annual rate of 1.50% of the Fund's average net
asset value. Such fee shall be accrued and payable quarterly. For purposes of
calculating such fee, such net asset value shall be determined by taking the
average of all determinations of net asset value made in the manner provided in
the Fund's current Offering Memorandum and Statement of Additional Information.
(b) For any period less than a full month during which this Agreement is in
effect the compensation payable to the Adviser hereunder shall be prorated
according to the proportion which such period bears to a full month.
(c) The Adviser agrees that if total expenses of the Fund for any fiscal
year exceed the permissible limits applicable to the Fund in any state in which
the Fund's shares are then qualified for sale, the compensation due the Adviser
for such fiscal year shall be reduced by the amount of such excess by a
reduction or refund thereof at the time such compensation is payable after the
end of each calendar month during such fiscal year of the Fund subject to
readjustment during the Fund's fiscal year.
4. LIMITATION OF LIABILITY OF ADVISER. The Adviser shall not be liable for
any error of judgment or mistake of law or for any loss suffered by the Fund in
connection with any
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investment policy or the purchase, sale, or retention of any security on the
recommendation of the Adviser; provided, however, that nothing herein contained
shall be construed to protect the Adviser against any liability to the Fund by
reason of willful misfeasance, bad faith or gross negligence in the performance
of its duties, or by reason of reckless disregard of its obligations and duties
under this Agreement.
5. TERM AND TERMINATION. (a) This Agreement shall become effective on the
date first written above. Unless terminated as herein provided, this Agreement
shall remain in full force and effect as to the Fund for two years from the date
hereof and shall continue in full force and effect for successive periods of one
year thereafter, but only so long as each continuance is approved (i) by either
the Trustees of the Trust or by vote of a majority of the outstanding voting
securities (as defined in the 0000 Xxx) of the Fund, and, in either event, (ii)
by vote of a majority of the Trustees of the Trust who are not parties to this
Agreement or interested persons (as defined in the 0000 Xxx) of any such party,
cast in person at a meeting called for the purpose of voting on such approval.
(b) This Agreement may be terminated at any time without the payment of any
penalty by vote of the Trustees of the Trust or by vote of a majority of the
outstanding voting securities (as defined in the 0000 Xxx) of the Fund or by the
Adviser, on sixty days' written notice to the other party.
(c) This Agreement shall automatically terminate in the event of its
assignment (as defined in the 1940 Act).
6. USE OF NAME. The Adviser owns the name "Xxxxxx Xxxxxx" and the initials
"MCBT," which may be used by the Trust only with the consent of the Adviser. The
Adviser consents to the use by the Trust of the name "Xxxxxx Xxxxxx Business
Trust" and "MCBT Greater China
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Fund" or any other name embodying the name "Xxxxxx Xxxxxx" or the initials
"MCBT," into such forms as the Adviser shall in writing approve, but only on
condition and so long as (i) this Contract shall remain in full force and (ii)
the Trust shall fully perform, fulfill and comply with all provisions of this
Contract expressed herein to be performed, fulfilled or complied with by it. No
such name shall be used by the Trust at any time or in any place or for any
purposes or under any conditions except as provided in this section. The
foregoing authorization by the Adviser to the Trust to use said name and
initials as part of a business or name is not exclusive of the right of the
Adviser itself to use, or to authorize others to use, the same; the Trust
acknowledges and agrees that as between the Adviser and the Trust, the Adviser
has the exclusive right so to authorize others to use the same; the Trust
acknowledges and agrees that as between the Adviser and the Trust, the Adviser
has the exclusive right so to use, or authorize others to use, said name and
initials and the Trust agrees to take such action as may reasonably be requested
by the Adviser to give full effect to the provisions of this section (including,
without limiting the generality of the foregoing, the Trust agrees that, upon
any termination of this Contract by either party or upon the violation of any of
its provisions by the Trust, the Trust will, at the request of the Adviser made
within six months after the Adviser has knowledge of such termination or
violation, use its best efforts to change the name of the Trust so as to
eliminate all reference, if any, to the name "Xxxxxx Xxxxxx" or initials "MCBT"
and will not thereafter transact any business in a name containing the name
"Xxxxxx Xxxxxx" or initials "MCBT" in any form or combination whatsoever, or
designate itself as the same entity as or successor to an entity of such name,
or otherwise use the name "Xxxxxx Xxxxxx" or initials "MCBT" or any other
reference to the Adviser. Such covenants on the part of the Trust shall be
binding upon it, its trustees, officers, stockholders, creditors and all other
persons claiming under or through it.
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IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly
executed as of the date first written above.
XXXXXX XXXXXX BUSINESS TRUST
By: /s/ Xxxxxxx X.X. Xxxx
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Name: Xxxxxxx X.X. Xxxx
Title: President
XXXXXX XXXXXX, INC.
By: /s/ X.X. Xxxxx Xxxxxxx
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Name: X.X. Xxxxx Xxxxxxx
Title: Vice President
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NOTICE
A copy of the Declaration of Trust of the Trust is on file with the
Secretary of State of The Commonwealth of Massachusetts and notice is hereby
given that this Agreement is executed with respect to the Trust's MCBT Greater
China Fund series on behalf of the Trust by officers of the Trust as officers
and not individually and that the obligations of this instrument are not binding
upon the Trustees, officers or holders of shares individually but are binding
only upon the assets and property of the MCBT Greater China Fund series.
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PROPOSED ADVISORY FEES
ADVISORY FEE
FUND (% OF AVERAGE NET ASSETS)
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MCBT Greater China Fund 1.50%
