PRINCIPAL FUNDS, INC. AMENDED AND RESTATED SUB-ADVISORY AGREEMENT LARGECAP BLEND FUND II SERIES AND LARGECAP GROWTH FUND I SERIES
PRINCIPAL FUNDS, INC. | ||
AMENDED AND RESTATED SUB-ADVISORY AGREEMENT | ||
LARGECAP BLEND FUND II SERIES AND | ||
LARGECAP GROWTH FUND I SERIES | ||
AGREEMENT executed as of the 1st day of January, 2010, by and between PRINCIPAL MANAGEMENT | ||
CORPORATION, an Iowa corporation (hereinafter called "the Manager"), and X. XXXX PRICE ASSOCIATES, | ||
INC., a corporation organized and existing under the laws of the State of Maryland, (hereinafter called "the | ||
Sub-Advisor"). | ||
W I T N E S S E T H: | ||
WHEREAS, the Manager is the manager and investment adviser to each Series of Principal Funds, Inc., (the | ||
"Fund"), an open-end management investment company registered under the Investment Company Act of 1940, as | ||
amended (the "1940 Act"); and | ||
WHEREAS, the Manager desires to retain the Sub-Advisor to furnish it with portfolio selection and related research | ||
and statistical services in connection with the investment advisory services for each of the Series identified in | ||
Appendix A hereto of the Fund (hereinafter called “the Series”), which the Manager has agreed to provide to the | ||
Fund, and the Sub-Advisor desires to furnish such services; and | ||
WHEREAS, The Manager has furnished the Sub-Advisor with copies properly certified or authenticated of each of | ||
the following and will promptly provide the Sub-Advisor with copies properly certified or authenticated of any | ||
amendment or supplement thereto: | ||
(a) | Management Agreement (the "Management Agreement") with the Fund; | |
(b) | The Fund's registration statement and financial statements as filed with the Securities and Exchange | |
Commission; | ||
(c) | The Fund's Articles of Incorporation and By-laws; | |
(d) | Policies, procedures or instructions adopted or approved by the Board of Directors of the Fund relating to | |
obligations and services provided by the Sub-Advisor. | ||
NOW, THEREFORE, in consideration of the premises and the terms and conditions hereinafter set forth, the parties | ||
agree as follows: | ||
1. | Appointment of Sub-Advisor | |
In accordance with and subject to the Management Agreement, the Manager hereby appoints the | ||
Sub-Advisor to perform the services described in Section 2 below for investment and reinvestment of the | ||
securities and other assets of the Series, subject to the control and direction of the Manager and the Fund's | ||
Board of Directors, for the period and on the terms hereinafter set forth. The Sub-Advisor accepts such | ||
appointment and agrees to furnish the services hereinafter set forth for the compensation herein provided. | ||
The Sub-Advisor shall for all purposes herein be deemed to be an independent contractor and shall, except | ||
as expressly provided or authorized, have no authority to act for or represent the Fund or the Manager in | ||
any way or otherwise be deemed an agent of the Fund or the Manager. | ||
2. | Obligations of and Services to be Provided by the Sub-Advisor | |
(a) | Provide investment advisory services, including but not limited to research, advice and supervision for | |
the Series. | ||
(b) | Furnish to the Board of Directors of the Fund for approval (or any appropriate committee of such | |
Board), and revise from time to time as economic conditions require, a recommended investment | ||
program for the Series consistent with the Series’ investment objective and policies. |
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(c) | Implement the approved investment program by placing orders for the purchase and sale of securities |
without prior consultation with the Manager and without regard to the length of time the securities have | |
been held, the resulting rate of portfolio turnover or any tax considerations, subject always to the | |
provisions of the Fund's registration statement, Certificate of Incorporation and Bylaws and the | |
requirements of the 1940 Act, as each of the same shall be from time to time in effect. | |
(d) | Maintain all or part of the Series’ uninvested assets in short-term income producing instruments for |
such periods of time as shall be deemed reasonable and prudent by the Sub-Advisor, including, but not | |
limited to, investments in X. Xxxx Price Reserve Investment Fund or X. Xxxx Price Government | |
Reserve Investment Fund which are internal money market funds available for use only by clients of | |
the Sub-Advisor for short-term investments. | |
(e) | Instruct the Series’ custodian to deliver for cash received, securities or other cash and/or securities |
instruments sold, exchanged, redeemed or otherwise disposed of from the Series, and to pay cash for | |
securities or other cash and/or securities instruments delivered to the custodian and/or credited to the | |
Series upon acquisition of the same for the Series. | |
(f) | Vote proxies, exercise conversion or subscription rights, and respond to tender offers and other |
consent solicitations relating to the Series’ investment securities in the manner in which the Sub- | |
Advisor believes to be in the best interests of the Series provided such materials have been forwarded | |
to the Sub-Advisor in a timely fashion by the Series’ custodian, and shall review its proxy voting | |
activities on a periodic basis with the Manager. Upon sixty (60) days’ written notice to the Sub-Advisor, | |
the Manager may withdraw the authority granted to the Sub-Advisor to vote proxies pursuant to this | |
Section. | |
(g) | Advise and assist the officers of the Fund, as requested by the officers, in taking such steps as are |
reasonably necessary or appropriate to carry out the decisions of its Board of Directors, and any | |
appropriate committees of such Board, regarding the general conduct of the investment business of | |
the Series. | |
(h) | Maintain, in connection with the Sub-Advisor’s investment advisory services obligations, compliance |
with the 1940 Act and the regulations adopted by the Securities and Exchange Commission thereunder | |
and the Series investment strategies and restrictions as stated in the Fund’s prospectus and statement | |
of additional information subject to receipt of such additional information as may be required from the | |
Manager and provided in accordance with Section 12(d) of this Agreement. | |
(i) | Report to the Board of Directors of the Fund at such times and in such detail as the Board of Directors |
may reasonably deem appropriate in order to enable it to determine that the investment policies, | |
procedures and approved investment program of the Series are being observed. | |
(j) | Upon request, provide assistance and advice for the determination of the fair value of certain securities |
when reliable market quotations are not readily available for purposes of calculating net asset value in | |
accordance with procedures and methods established by the Fund's Board of Directors. | |
(k) | Furnish, at its own expense, (i) all necessary investment and management facilities, including salaries |
of clerical and other personnel required for it to execute its duties faithfully, and (ii) administrative | |
facilities, including bookkeeping, clerical personnel and equipment necessary for the efficient conduct | |
of the investment advisory affairs of the Series (excluding brokerage expenses and pricing and | |
bookkeeping services). | |
(l) | Open accounts with broker-dealers and future commission merchants (“broker-dealers”), select broker- |
dealers to effect all transactions for the Series, place all necessary orders with broker-dealers or | |
issuers (including affiliated broker-dealers), and negotiate commissions, if applicable. To the extent | |
consistent with applicable law, purchase or sell orders for the Series may be aggregated with | |
contemporaneous purchase or sell orders of other clients of the Sub-Advisor. In such event allocation | |
of securities so sold or purchased, as well as the expenses incurred in the transaction, will be made by | |
the Sub-Advisor in the manner the Sub-Advisor considers to be the most equitable and consistent with |
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its fiduciary obligations to the Fund and to other clients. The Sub-Advisor will, at the request of the | |
Manager, the Fund or the Fund’s Board of Directors, provide quarterly brokerage allocation summary | |
reports as specified in Rule 31a-1(b)(9) under the 1940 Act and a copy of our trade allocation | |
procedures which includes the basis for the allocation of any aggregated trades. The Sub-Advisor | |
shall use its best efforts to obtain execution of transactions for the Series at prices which are | |
advantageous to the Series and at commission rates that are reasonable in relation to the benefits | |
received. However, the Sub-Advisor may select brokers or dealers on the basis that they provide | |
brokerage, research or other services or products to the Sub-Advisor. To the extent consistent with | |
Section 28(e) of the Securities Exchange Act of 1934, and with applicable law, the Sub-Advisor may | |
pay a broker or dealer an amount of commission for effecting a securities transaction in excess of the | |
amount of commission or dealer spread another broker or dealer would have charged for effecting that | |
transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable | |
in relation to the value of the brokerage and research products and/or services provided by such broker | |
or dealer. This determination, with respect to brokerage and research products and/or services, may | |
be viewed in terms of either that particular transaction or the overall responsibilities which the Sub- | |
Advisor and its affiliates have with respect to the Series as well as to accounts over which they | |
exercise investment discretion. Not all such services or products need be used by the Sub-Advisor in | |
managing the Series. In addition, joint repurchase or other accounts may not be utilized by the Series | |
except to the extent permitted under any exemptive order obtained by the Sub-Advisor provided that all | |
conditions of such order are complied with. | |
(m) | Maintain all accounts, books and records with respect to the Series as are required of an investment |
advisor of a registered investment company pursuant to the 1940 Act and Investment Advisor’s Act of | |
1940 (the “Investment Advisor’s Act”), and the rules thereunder, and furnish the Fund and the Manager | |
with such periodic and special reports as the Fund or Manager may reasonably request. In compliance | |
with the requirements of Rule 31a-3 under the 1940 Act, the Sub-Advisor hereby agrees that all | |
records that it maintains for the Series are the property of the Fund, agrees to preserve for the periods | |
described by Rule 31a-2 under the 1940 Act any records that it maintains for the Account and that are | |
required to be maintained by Rule 31a-1 under the 1940 Act, and further agrees to surrender promptly | |
to the Fund any records that it maintains for the Series upon request by the Fund or the Manager, | |
provided, however, the Sub-Advisor may retain copies of such records. The Sub-Advisor has no | |
responsibility for the maintenance of Fund records except insofar as is directly related to the services | |
provided to the Series. | |
(n) | Observe and comply with Rule 17j-1 under the 1940 Act and the Sub-Advisor’s Code of Ethics adopted |
pursuant to that Rule as the same may be amended from time to time. The Manager acknowledges | |
receipt of a copy of Sub-Advisor’s current Code of Ethics. Sub-Advisor shall promptly forward to the | |
Manager a copy of any material amendment to the Sub-Advisor’s Code of Ethics along with | |
certification that the Sub-Advisor has implemented procedures for administering the Sub-Advisor’s | |
Code of Ethics. | |
(o) | From time to time as the Manager or the Fund may request, furnish the requesting party reports on |
portfolio transactions and reports on investments held by the Series, all in such detail as the Manager | |
or the Fund may reasonably request. The Sub-Advisor will make available its officers and employees | |
to meet with the Fund’s Board of Directors at the Fund’s principal place of business on such times as | |
mutually agreeable to the parties to review the investments of the Series. | |
(p) | Provide such information as is customarily provided by a sub-advisor and may be required for the Fund |
or the Manager to comply with their respective obligations under applicable laws, including, without | |
limitation, the Internal Revenue Code of 1986, as amended (the ”Code“), the 1940 Act, the Investment | |
Advisers Act, the Securities Act of 1933, as amended (the ”Securities Act“), and any state securities | |
laws, and any rule or regulation thereunder. | |
(q) | Provide a copy of the Sub-Advisor’s Form ADV and any material amendments thereto |
contemporaneously with the filing of such documents with the Securities and Exchange Commission or | |
other regulatory agency. |
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3. | Prohibited Conduct |
In providing the services described in this agreement, the Sub-Advisor will not consult with any other | |
investment advisory firm that provides investment advisory services to any investment company sponsored | |
by Principal Life Insurance Company regarding transactions for the Fund in securities or other assets. | |
4. | Obligations of the Manager |
During the term of this Agreement, the Manager shall furnish to the Sub-Advisor at its principal office all | |
prospectuses, proxy statements, reports to shareholders, sales literature, or other material prepared for | |
distribution to shareholders of the Fund or the public, which refer to the name “X. Xxxx Price” and any other | |
names of the Sub-Advisor or its business or clients in any way, at a reasonable time prior to the use thereof, | |
and the Manager shall not use any such materials if the Sub-Advisor reasonably objects in writing ten | |
business days (or such other time as may be mutually agreed) after receipt thereof. The Manager shall | |
ensure that materials prepared by employees or agents of the Manager or its affiliates that refer to the Sub- | |
Advisor or its clients in any way are consistent with those materials previously approved by the Sub-Advisor | |
as referenced in the preceding sentence. Upon termination of this Agreement for any reason, the Manager | |
shall as soon as practicable cease and cause the Fund to cease all use of the name “X. Xxxx Price.” | |
5. | Compensation |
As full compensation for all services rendered and obligations assumed by the Sub-Advisor hereunder with | |
respect to the Series, the Manager shall pay the compensation specified in Appendix A to this Agreement. | |
6. | Services to Other Clients |
Nothing contained in this Agreement shall limit or restrict (i) the freedom of the Sub-Advisor, or any affiliated | |
person thereof, to render investment management and corporate administrative services to other investment | |
companies, to act as investment manager or investment counselor to other persons, firms, or corporations, | |
or to engage in any other business activities, or (ii) the right of any director, officer, or employee of the Sub- | |
Advisor, who may also be a director, officer, or employee of the Fund, to engage in any other business or to | |
devote his or her time and attention in part to the management or other aspects of any other business, | |
whether of a similar nature or a dissimilar nature. | |
7. | Liability of Sub-Advisor |
Neither the Sub-Advisor nor any of its directors, officers, employees, agents or affiliates shall be liable to the | |
Manager, the Fund or its shareholders for any loss suffered by the Manager or the Fund resulting from any | |
error of judgment or mistake of law made in the good faith exercise of the Sub-Advisor's investment | |
discretion in connection with selecting investments for the Series or as a result of the failure by the Manager | |
or any of its affiliates to comply with the terms of this Agreement and/or any insurance laws and rules, | |
except for any errors, mistakes, or losses resulting from willful misfeasance, bad faith or gross negligence | |
of, or from reckless disregard of, the duties of the Sub-Advisor or any of its directors, officers, employees, | |
agents (excluding any broker-dealer selected by the Sub-Advisor), or affiliates. | |
8. | Supplemental Arrangements |
The Sub-Advisor may enter into arrangements with other persons affiliated with the Sub-Advisor or with | |
unaffiliated third parties to better enable the Sub-Advisor to fulfill its obligations under this Agreement for the | |
provision of certain personnel and facilities to the Sub-Advisor, subject to written notification to and approval | |
of the Manager and, where required by applicable law, the Board of Directors of the Fund. | |
9. | Regulation |
The Sub-Advisor shall submit to all regulatory and administrative bodies having jurisdiction over the services | |
provided pursuant to this Agreement any information, reports or other material which any such body may | |
request or require pursuant to applicable laws and regulations. |
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10. Duration and Termination of This Agreement | |
This Agreement shall become effective on the latest of (i) the date of its execution, (ii) the date of its | |
approval by a majority of the Board of Directors of the Fund, including approval by the vote of a majority of | |
the Board of Directors of the Fund who are not interested persons of the Manager, the Sub-Advisor, | |
Principal Life Insurance Company or the Fund cast in person at a meeting called for the purpose of voting | |
on such approval or (iii) if required by the 1940 Act, the date of its approval by a majority of the outstanding | |
voting securities of the Series. It shall continue in effect thereafter from year to year provided that the | |
continuance is specifically approved at least annually either by the Board of Directors of the Fund or by a | |
vote of a majority of the outstanding voting securities of the Fund and in either event by a vote of a majority | |
of the Board of Directors of the Fund who are not interested persons of the Manager, Principal Life | |
Insurance Company, the Sub-Advisor or the Fund cast in person at a meeting called for the purpose of | |
voting on such approval. | |
If the shareholders of the Series fail to approve the Agreement or any continuance of the Agreement in | |
accordance with the requirements of the 1940 Act, the Sub-Advisor will continue to act as Sub-Advisor with | |
respect to the Series pending the required approval of the Agreement or its continuance or of any contract | |
with the Sub-Advisor or a different manager or sub-advisor or other definitive action; provided, that the | |
compensation received by the Sub-Advisor in respect to the Series during such period is in compliance with | |
Rule 15a-4 under the 1940 Act. | |
This Agreement may be terminated at any time, without the payment of any penalty, by approval of the | |
Board of Directors of the Fund or by the Sub-Advisor, the Manager or by vote of a majority of the | |
outstanding voting securities of the Series on sixty days written notice. This Agreement shall automatically | |
terminate in the event of its assignment. In interpreting the provisions of this Section 10, the definitions | |
contained in Section 2(a) of the 1940 Act (particularly the definitions of "interested person," "assignment" | |
and "voting security") shall be applied. | |
11. Amendment of this Agreement | |
No provision of this Agreement may be changed, waived, discharged, or terminated orally, but only by an | |
instrument in writing signed by the party against which enforcement of the change, waiver, discharge, or | |
termination is sought. | |
No material amendment of this Agreement shall be effective until approved, if required by the 1940 Act or | |
the rules, regulations, interpretations or orders issued thereunder, by vote of the holders of a majority of the | |
outstanding voting securities of the Series and by vote of a majority of the Board of Directors of the Fund | |
who are not interested persons of the Manager, the Sub-Advisor, Principal Life Insurance Company or the | |
Fund cast in person at a meeting called for the purpose of voting on such approval, and such amendment is | |
signed by both parties. | |
12. General Provisions | |
(a) | Each party agrees to perform such further acts and execute such further documents as are necessary to |
effectuate the purposes hereof. This Agreement shall be construed and enforced in accordance with | |
and governed by the laws of the State of Iowa. The captions in this Agreement are included for | |
convenience only and in no way define or delimit any of the provisions hereof or otherwise affect their | |
construction or effect. | |
(b) | Any notice under this Agreement shall be in writing, addressed and delivered or mailed postage |
pre-paid to the other party at such address as such other party may designate for the receipt of such | |
notices. Until further notice to the other party, it is agreed that the address of the Manager for this | |
purpose shall be Principal Financial Group, Xxx Xxxxxx, Xxxx 00000-0000, and the address of the | |
Sub-Advisor shall be X. Xxxx Price Associates, Inc., 000 Xxxx Xxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxx 00000, | |
Attention: Xxxxx X. Xxxxxxx, Chief Legal Counsel. | |
(c) | The Sub-Advisor will promptly notify the Manager in writing of the occurrence of any of the following |
events: |
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(1) | the Sub-Advisor fails to be registered as an investment adviser under the Investment Advisers Act | |
or under the laws of any jurisdiction in which the Sub-Advisor is required to be registered as an | ||
investment advisor in order to perform its obligations under this Agreement. | ||
(2) | the Sub-Advisor is served or otherwise receives notice of any action, suit, proceeding, inquiry or | |
investigation, at law or in equity, before or by any court, public board or body, involving the affairs of | ||
the Series. | ||
(d) | The Manager shall provide (or cause the Series custodian to provide) timely information to the Sub- | |
Advisor regarding such matters as the composition of the assets of the Series, cash requirements and | ||
cash available for investment in the Series, any applicable investment restrictions imposed by state | ||
insurance laws and regulations, and all other reasonable information as may be necessary for the Sub- | ||
Advisor to perform its duties and responsibilities hereunder. | ||
(e) | This Agreement contains the entire understanding and agreement of the parties. | |
(f) | All information and advice furnished by one party to the other party (including their respective agents, | |
employees and representatives) hereunder shall be treated as confidential and shall not be disclosed to | ||
third parties, except as may be necessary to comply with applicable laws, rules and regulations, | ||
subpoenas or court orders. Without limiting the foregoing, the Manager acknowledges that the | ||
securities holdings of the Series constitute information of value to the Sub-Advisor, and agrees: (1) not | ||
to use for any purpose, other than for the Manager or the Series, or their agents, to supervise or monitor | ||
the Sub-Advisor, the holdings or other trading-related information of the Series; and (2) not to disclose | ||
the Series’ holdings, except: (a) as required by applicable law or regulation; (b) as required by state or | ||
federal regulatory authorities; (c) to the Board of Directors of the Fund, counsel to the Board, counsel to | ||
the Fund, the administrator or any sub-administrator, the independent accountants and any other agent | ||
of the Fund; or (d) as otherwise agreed to by the parties hereto in writing. Further, the Manager agrees | ||
that information supplied by the Sub-Advisor, including approved lists, internal procedures, compliance | ||
procedures and any board materials, is valuable to the Sub-Advisor, and the Manager agrees not to | ||
disclose any of the information contained in such materials, except: (i) as required by applicable law or | ||
regulation; (ii) as required by state or federal regulatory authorities; (iii) to the Board of Directors of the | ||
Fund, counsel to the Board, counsel to the Fund, the administrator or any sub-administrator, the | ||
independent accountants and any other agent of the Fund; or (iv) as otherwise agreed to by the parties | ||
hereto in writing. | ||
Without limiting the foregoing, the Sub-Advisor agrees that any and all information that it obtains | ||
pursuant to this Sub-Advisory Agreement regarding the Manager or its customers including, but not | ||
limited to, approved lists, internal procedures, compliance procedures and any board materials, is | ||
valuable to the Manager and will be used exclusively to fulfill the Sub-Advisor’s obligations hereunder, | ||
and will not be disclosed to any other party, including any affiliate of the Sub-Advisor or agent of the | ||
Series, except (i) as necessary for the Sub-Advisor to fulfill its obligations pursuant to this Sub-Advisory | ||
Agreement, (ii) as required by applicable law or regulation; (iii) as required by state or federal regulatory | ||
authorities; or (iv) as otherwise agreed to by the parties hereto in writing. Notwithstanding the | ||
foregoing, the Manager agrees that the Sub-Advisor may identify it or the Series as a client in | ||
promotional materials. | ||
(g) | The Sub-Advisor represents that it will not enter into any agreement, oral or written, or other | |
understanding under which the Fund directs or is expected to direct portfolio securities transactions, or | ||
any remuneration, to a broker or dealer in consideration for the promotion or sale of Fund shares or | ||
shares issued by any other registered investment company. Sub-advisor further represents that it is | ||
contrary to the Sub-advisor’s policies to permit those who select brokers or dealers for execution of fund | ||
portfolio securities transactions to take into account the broker or dealer’s promotion or sale of Fund | ||
shares or shares issued by any other registered investment company. | ||
(h) | The Sub-Advisor agrees that neither it nor any of its affiliates will in any way refer directly or indirectly to | |
its relationship with the Fund, the Series, or the Manager or any of their respective affiliates in offering, | ||
marketing or other promotional materials without the express written consent of the Manager. |
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IN WITNESS WHEREOF, the parties have duly executed this Agreement on the date first above written. |
PRINCIPAL MANAGEMENT CORPORATION |
/s/ Xxxxxxx X. Beer |
By |
Xxxxxxx X. Beer, Executive Vice President and |
Chief Operating Officer |
X. XXXX PRICE ASSOCIATES, INC. |
/s/ Xxxxxxx X. Xxxxxx |
By |
Xxxxxxx X. Xxxxxx, Vice President |
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APPENDIX A | |
The Sub-Advisor shall serve as investment sub-advisor for the LargeCap Blend Fund II Series and LargeCap | |
Growth Fund I Series of the Fund. The Manager will pay the Sub-Advisor, as full compensation for all services | |
provided under this Agreement, a fee computed at an annual rate as follows (the "Sub-Advisor Percentage Fee"): | |
LargeCap Blend Fund II | |
First $050,000,000 of Assets | 0.400% |
Next $200,000,000 of Assets | 0.350% |
Next $350,000,000 of Assets | 0.300% |
Next $400,000,000 of Assets | 0.275% |
Assets above $1 billion* | 0.275% |
* During any period when the Series’ Average Daily Net Assets exceed $1 billion, Sub-advisor’s fee as a percentage | |
of average daily net assets shall be 0.275% on all assets. | |
LargeCap Growth Fund I | |
First $250,000,000 of Assets | 0.400% |
Next $250,000,000 of Assets | 0.375% |
Next $500,000,000 of Assets | 0.350% |
Assets above $1 billion* | 0.350% |
* During any period when the Series’ Average Daily Net Assets equal or exceed $1 billion, Sub-advisor’s fee as a | |
percentage of average daily net assets shall be 0.350% on all assets. | |
In calculating the fee for a Series, assets of any existing unregistered separate account of Principal Life | |
Insurance Company and any existing investment company sponsored by Principal Life Insurance Company to which | |
the Sub-Advisor provides investment advisory services and which have the same investment mandate as the | |
Series, will be combined (together, the “Aggregated Assets”). The fee charged for the assets in the Series shall be | |
determined by calculating a fee on the value of the Aggregated Assets using the above fee schedule and multiplying | |
the aggregate fee by a fraction, the numerator of which is the amount of assets in the Series and the denominator of | |
which is the amount of the Aggregated Assets. | |
The Sub-Advisor Percentage Fee shall be accrued for each calendar day and the sum of the daily fee accruals shall | |
be paid monthly to the Sub-Advisor on or before the fifth (5th ) day of the next succeeding calendar month. The daily | |
fee accruals will be computed by multiplying the fraction of one over the number of calendar days in the year by the | |
applicable annual rate described above and multiplying this product by the net assets of the Series as determined in | |
accordance with the Series’ prospectus and statement of additional information as of the close of business on the | |
previous business day on which the Series was open for business. Each month, the Manager will provide the Sub- | |
Advisor with a worksheet accompanying payment of the subadvisory fee that sets forth the computation of such | |
subadvisory fee. Cash and cash equivalents shall be included in the Series net assets calculation up to a maximum | |
of 1.00% of the Series net assets. If the Manager requests the Sub-Advisor to raise cash in the Series portfolio in | |
excess of 1.00% of the Series net assets for the purpose of funding redemptions from the Series, such amount | |
requested shall be included in the Series net assets calculation. | |
If this Agreement becomes effective or terminates before the end of any month, the fee (if any) for the period | |
from the effective date to the end of such month or from the beginning of such month to the date of termination, as | |
the case may be, shall be prorated according to the proportion which such period bears to the full month in which | |
such effectiveness or termination occurs. |
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