EXHIBIT 99(d)(3)
INVESTMENT ADVISORY AGREEMENT
THIS AGREEMENT is made and entered into on April 16, 2004 between
TAMARACK FUNDS TRUST, a Delaware statutory trust ("Trust"), on behalf of its
series TAMARACK ENTERPRISE SMALL CAP FUND ("Fund"), and VOYAGEUR ASSET
MANAGEMENT, INC., a Minnesota corporation ("Adviser").
RECITALS
WHEREAS, the Trust is an open-end management investment company under
the Investment Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, the Trust desires to retain the Adviser, which is a registered
investment adviser under the Investment Advisers Act of 1940, as amended, to act
as investment adviser for the Fund, and to manage its assets.
NOW, THEREFORE, the Trust and the Adviser do mutually agree and promise
as follows:
1. EMPLOYMENT.
(a) The Trust hereby appoints Adviser as investment adviser
for the Fund, and Adviser accepts such appointment. Subject to the supervision
of the Trust's Board of Trustees and the terms of this Agreement, the Adviser
shall act as investment adviser for and manage the investment and reinvestment
of the assets of the Fund. The Adviser shall discharge the foregoing
responsibilities subject to the control of the Trust's Board of Trustees and in
compliance with such policies as the Board of Trustees may from time to time
establish, and in compliance with the objectives, policies, and limitations for
the Fund set forth in the Fund's prospectus(es) and statement of additional
information, as amended or supplemented from time to time, and applicable laws
and regulations. The Adviser shall (i) provide for use by the Fund, at the
Adviser's expense, office space and all necessary office facilities, equipment
and personnel for servicing the investments of the Fund, (ii) pay the salaries
and fees of all officers and Trustees of the Trust who are "interested persons"
of the Adviser as such term is defined in the 1940 Act, and (iii) pay for all
clerical services relating to research, statistical and investment work.
(b) The Adviser is authorized to delegate any or all of its
rights, duties and obligations under this Agreement (subject in any event to all
of the limitations, terms and conditions applicable to the Adviser hereunder) to
one or more sub-advisers, and may enter into agreements with sub-advisers, and
may replace any such sub-advisers from time to time in its discretion, in
accordance with the 1940 Act, the Investment Advisers Act of 1940, as amended
(the "Advisers Act"), and rules and
regulations thereunder, as such statutes, rules and regulations are amended from
time to time or are interpreted from time to time by the staff of the Securities
and Exchange Commission (the "SEC"), and if applicable, exemptive orders or
similar relief granted by the SEC, upon receipt of approval of any such
sub-advisers by the Trust's Board of Trustees and by the Fund's shareholders
(unless any such approval is not required by such statutes, rules, regulations,
interpretations, orders or similar relief). The Adviser shall oversee the
performance of any sub adviser engaged hereunder. However, the Adviser shall not
be accountable to the Trust or the Fund for any loss or liability relating to
specific investment decisions made solely by any sub-adviser. The Adviser may
not terminate any sub-advisory agreement relating to the Fund without approval
by a majority of the Trust's independent Trustees.
(c) The services of the Adviser to the Fund are not to be
deemed exclusive, and the Adviser shall be free to render similar services to
others as long as its services for others do not in any way hinder, preclude or
prevent the Adviser from performing its duties and obligations under this
Agreement.
2. ALLOCATION OF BROKERAGE.
(a) The Adviser is authorized, subject to the supervision of
the Trust's Board of Trustees and consistent with any policies and procedures
the Board of Trustees may from time to time adopt, to place orders for the
purchase and sale of securities and to negotiate commissions to be paid on such
transactions. The Adviser is authorized to select the brokers or dealers that
will execute the purchases and sales of securities for the Fund and is directed
to use its best efforts to obtain the best net results as described in the
Fund's statement of additional information.
(b) Subject to the appropriate policies and procedures
approved by the Trust's Board of Trustees, the Adviser may, on behalf of the
Fund, pay brokerage commissions to a broker which provides brokerage and
research services to the Adviser in excess of the amount another broker would
have charged for effecting the transaction, provided (i) the Adviser determines
in good faith that the amount is reasonable in relation to the value of the
brokerage and research services provided by the executing broker in terms of the
particular transaction or in terms of the Adviser's overall responsibilities
with respect to the Fund and the accounts as to which the Adviser exercises
investment discretion, (ii) such payment is made in compliance with Section
28(e) of the Securities Exchange Act of 1934, as amended, and other applicable
state and federal laws, and (iii) in the opinion of the Adviser, the total
commissions paid by the Fund will be reasonable in relation to the benefits to
the Fund over the long term. Subject to seeking the most favorable price and
execution, the Board of Trustees may cause the
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Adviser to effect transactions in portfolio securities through broker dealers in
a manner that will help generate resources to pay the cost of certain expenses
which the Fund is required to pay or for which the Fund is required to arrange
payment.
(c) When the Adviser deems the purchase or sale of a security
to be in the best interest of the Fund as well as other of its clients, the
Adviser to the extent permitted by applicable laws and regulations, may, but
shall be under no obligation to, aggregate the securities to be purchased or
sold to attempt to obtain a more favorable price or lower brokerage commissions
and efficient execution. In such event, allocation of the securities so
purchased or sold, as well as the expenses incurred in the transaction, will be
made by the Adviser in the manner the Adviser considers to be the most equitable
and consistent with its fiduciary obligations to the Fund and its other affected
clients.
3. EXPENSES. The Fund will pay all its expenses and the Fund's
allocable share of the Trusts' expenses, other than those expressly stated to be
payable by the Adviser hereunder, which expenses payable by the Fund shall
include, without limitation, interest charges, taxes, brokerage commissions. and
similar expenses, distribution and shareholder servicing expenses, expenses of
issue, sale, repurchase or redemption of shares, expenses of registering or
qualifying shares for sale, expenses of printing and distributing prospectuses
to existing shareholders, charges of custodians (including sums as custodian and
for keeping books and similar services), transfer agents (including the printing
and mailing of reports and notices to shareholders), registrars, auditing and
legal services, clerical services related to recordkeeping and shareholder
relations, printing of share certificates, fees for Trustees who are not
"interested persons" of the Adviser, and other expenses not expressly assumed by
the Adviser under Paragraph 1(a) above or under any other agreement. Anything to
the contrary herein notwithstanding, the Adviser may at any time and from time
to time assume or reimburse any expense payable by the Fund pursuant to this
Agreement.
4. AUTHORITY OF ADVISER. The Adviser shall for all purposes
herein be considered an independent contractor and shall not, unless expressly
authorized and empowered by the Trust or the Fund, have authority to act for or
represent the Trust or the Fund in any way, form or manner. Any authority
granted by the Trust or the Fund on behalf of itself to the Adviser shall be in
the form of a resolution or resolutions adopted by the Board of Trustees of the
Trust.
5. COMPENSATION OF ADVISER. For the services to be furnished by
the Adviser hereunder, the Fund shall pay the Adviser, and the Adviser agrees to
accept as full compensation for all services rendered hereunder, an Advisory
Fee. The Advisory Fee shall be calculated by applying a daily
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rate, based on the annual percentage rates as set forth in Schedule A of the net
asset value of the Fund determined as of the close of business on each business
day and payable monthly in arrears on the first business day of the next
following month. Anything to the contrary herein notwithstanding, the Adviser
may at any time and from time to time waive any part or all of any fee payable
to it pursuant to this Agreement.
6. STANDARD OF CARE; INDEMNIFICATION.
(a) In the absence of willful misfeasance, bad faith, gross
negligence or reckless disregard of obligations or duties hereunder on the part
of the Adviser, the Adviser shall not be subject to liability to the Trust or
the Fund or to any shareholder for any act or omission in the course of, or
connected with, rendering services hereunder or for any losses that may be
sustained in the purchase, holding or sale of any security. The Adviser makes no
representation or warranty, express or implied, that any level of performance or
investment results will be achieved by the Fund or that the Fund will perform
comparably with any standard or index, including other clients of the Adviser,
whether public or private.
(b) The Adviser agrees to indemnify the Fund with respect to
any loss, liability, judgment, cost or penalty which the Fund may directly or
indirectly suffer or incur as a result of a material breach by the Adviser of
its standard of care set forth in Paragraph 6(a). The Trust, on behalf of the
Fund, agrees to indemnify the Adviser with respect to any loss, liability,
judgment, cost or penalty which the Adviser may directly or indirectly suffer or
incur in any way arising out of the performance of its duties under this
Agreement, except to the extent that such loss, liability, judgment, cost or
penalty was a result of a material breach by the Adviser of its standard of care
set forth in Paragraph 6(a).
7. DURATION AND TERMINATION. The following shall apply with
respect to the duration and termination of this Agreement:
(a) This Agreement shall begin as of the date this Agreement
is first executed (provided that the Agreement is initially approved by the
Trust's Board of Trustees and Fund shareholder(s) as required by Section 15 of
the 0000 Xxx) and shall continue in effect for one year. Thereafter, this
Agreement shall remain in effect, for successive periods of one year, subject to
the provisions for termination and all of the other terms and conditions hereof
if: (i) such continuation shall be specifically approved at least annually by
(A) either the Trust's Board of Trustees or a majority of the Fund's outstanding
voting securities, and in either case (B) a majority of the Trust's Trustees who
are not parties to this Agreement or interested persons of any such party other
than as Trustees of the Trust (the
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"Independent Trustees"), cast in person at a meeting called for that purpose;
and (ii) the Adviser shall not have notified the Trust in writing at least sixty
(60) days prior to the anniversary date of this Agreement in any year thereafter
that it does not desire such continuation. Prior to voting on the renewal of
this Agreement, the Trust's Board of Trustees may request and evaluate, and the
Adviser shall furnish, such information as may reasonably be necessary to enable
the Trust's Board of Trustees to evaluate the terms of this Agreement.
(b) Notwithstanding whatever may be provided herein to the
contrary, this Agreement may be terminated at any time, without payment of any
penalty, by affirmative vote of a majority of the Trust's Board of Trustees, or
by vote of a majority of the outstanding voting securities of the Fund, as
defined in Section 2(a)(42) of the 1940 Act, or by the Adviser, in each case,
upon sixty (60) days' written notice to the other party and shall terminate
automatically in the event of its "assignment" (as that term is defined in the
1940 Act). No assignment shall be deemed to result from any changes in the
directors, officers or employees of the Adviser except as may be provided to the
contrary in the 1940 Act or the rules or regulations thereunder.
8. AMENDMENT. Except to the extent permitted by the 1940 Act or
the rules or regulations thereunder or pursuant to exemptive relief granted by
the SEC, this Agreement may be amended by the parties only if such amendment, if
material, is specifically approved by the vote of a majority of the outstanding
voting securities of the Fund (unless such approval is not required by Section
15 of the 1940 Act as interpreted by the SEC or its staff or unless the SEC has
granted an exemption from such approval requirement) and by the vote of a
majority of the Board of Trustees of the Trust, including a majority of the
Independent Trustees, cast in person at a meeting called for the purpose of
voting on such approval.
9. NOTICE. Any notice that is required to be given by the parties
to each other under the terms of this Agreement shall be in writing, addressed
and delivered, or mailed postpaid to the other party at the principal place of
business of such party.
10. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of Minnesota and the
applicable provisions of the 1940 Act. To the extent that the applicable laws of
the State of Minnesota, or any of the provisions herein, conflict with the
applicable provisions of the 1940 Act, the latter shall control.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
signed as of the day and year first stated above.
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TAMARACK FUNDS TRUST, on behalf of
TAMARACK ENTERPRISE SMALL CAP FUND
By: /s/ Xxxxxxxx Xxxxxxx
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Name: Xxxxxxxx Xxxxxxx
Title: President and CEO
VOYAGEUR ASSET MANAGEMENT INC.
By: /s/ Xxxxxxx Xxx
----------------------------------
Name: Xxxxxxx X. Xxx
Title: Chief Operating Officer
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SCHEDULE A
Compensation pursuant to Paragraph 5 of this Agreement shall be
calculated in accordance with the following schedules:
Name of Fund Annual Fee Rate
TAMARACK ENTERPRISE SMALL CAP FUND. One hundred forty one-hundredths of
one percent (140/100 of 1%) of the
average total net assets of the Fund
that do not exceed thirty million
dollars ($30,000,000).
Ninety one hundredths of one percent
(90/100 of 1%) of the average total
net assets of the Fund that exceed
thirty million dollars ($30,000,000).
ATTEST:
TAMARACK FUNDS TRUST, on behalf of VOYAGEUR ASSET MANAGEMENT INC.
TAMARACK ENTERPRISE SMALL CAP FUND
By: /s/ Xxxxxxxx Xxxxxxx By: /s/ Xxxxxxx Xxx
----------------------------- ------------------------------
Name: Xxxxxxxx Xxxxxxx Name: Xxxxxxx X. Xxx
Title: President and CEO Title: Chief Operating Officer
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