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EXHIBIT (d)(i)(D)
SUPPLEMENTAL TERMS AND CONDITIONS TO
THE MANAGEMENT AGREEMENT BETWEEN
THE AMERICAN AADVANTAGE MILEAGE FUNDS
AND
AMR INVESTMENT SERVICES, INC.
The attached amended Schedule A is hereby incorporated into the Management
Agreement dated October 1, 1995 as amended July 25, 1997 (the "Agreement")
between the American AAdvantage Mileage Funds (the "Trust") and AMR Investment
Services, Inc. (the "Manager"). To the extent that there is any conflict between
the terms of the Agreement and these Supplemental Terms and Conditions
("Supplement"), this Supplement shall govern.
Dated: November 21, 1997
American AAdvantage Mileage Funds
By:
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Xxxxx X. Xxxxxxxxx
Vice President and Assistant Secretary
AMR Investment Services, Inc.
By:
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Xxxxxxx X. Xxxxx
President
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AMENDED
SCHEDULE A
TO THE
MANAGEMENT AGREEMENT
BETWEEN
AMR INVESTMENT SERVICES, INC.
AND THE
AMERICAN AADVANTAGE MILEAGE FUNDS
I. MANAGEMENT FEE
As compensation pursuant to Section 7 of the Management Agreement between
AMR Investment Services, Inc. (the "Manager") and the American AAdvantage
Mileage Funds (the "Mileage Trust"), the Mileage Trust shall pay to the Manager
for performing its duties as Investment Adviser a fee, computed daily and paid
monthly, at the following annual rates as percentages of each Fund's average
daily net assets:
(1) 0.15% of the net assets of the Money Market Fund, the Municipal Money
Market Fund and the U.S. Government Money Market Fund;
(2) 0.25% of the net assets of the Intermediate Bond Fund and the
Limited-Term Income Fund;
(3) 0.10% of the net assets of the Balanced Fund, the Growth and Income
Fund, the International Equity Fund and the S&P 500 Index Fund;
(4) plus all fees payable by the Manager with respect to the Balanced Fund,
the Growth and Income Fund and the International Equity Fund pursuant to
any Investment Advisory Agreement entered into pursuant to Paragraph 2(d)
of said Management Agreement.
To the extent that a Fund invests all of its investable assets (i.e.,
securities and cash) in another registered investment company, however, the
Mileage Trust will not pay the Manager a Management Fee.
II. ADMINISTRATIVE SERVICES FEE
As compensation pursuant to Section 7 of the Management Agreement , the
Mileage Trust shall pay to the Manager for performing its duties as
Administrator a fee, computed daily and paid monthly, at the following annual
rates as percentages of each Fund's average daily net assets:
(1) 0.05% of the net assets of the Money Market Fund, the Municipal Money
Market Fund and the U.S. Government Money Market Fund;
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(2) 0.25% of the net assets of the Balanced Fund, the Growth and Income
Fund, the International Equity Fund, the Intermediate Bond Fund, the
Limited-Term Income Fund and the S&P 500 Index Fund;
III. SECURITIES LENDING DUTIES AND FEES
A. Manager Duties
The Manager agrees to provide the following services in connection with the
investment of cash collateral received from the securities lending activities of
each Fund of the Mileage Trust: (a) assist the securities lending agent (the
"Agent") in determining which specific securities are available for loan, (b)
monitor the Agent to ensure that securities loans are effected in accordance
with its instructions and within the procedures adopted by the Board of Trustees
of the Mileage Trust, (c) prepare appropriate periodic reports for, and seek
appropriate approvals from, the Board of Trustees of the Mileage Trust with
respect to securities lending activities, (d) respond to Agent inquiries
concerning Agent's compliance with applicable guidelines, and (e) perform such
other duties as necessary.
B. Securities Lending Fees
As compensation for services provided by the Manager in connection with
securities lending activities of each Fund of the Mileage Trust, a lending Fund
shall pay to the Manager, with respect to cash collateral posted by borrowers, a
fee equal to 10% of the net monthly interest income (the gross interest income
earned by the investment of cash collateral, less the amount paid to borrowers
as well as related expenses) from such activities and, with respect to loan fees
paid by borrowers when a borrower posts collateral other than cash, a fee equal
to 10% of such loan fees.
To the extent that a Fund invests all of its investable assets (i.e.,
securities and cash) in another registered investment company, however, the
Mileage Trust will not pay the Manager any fee for services provided by the
Manager in connection with securities lending activities.
DATED: November 21, 1997
