EXHIBIT d.8
PHOENIX SERIES FUND
SUBADVISORY AGREEMENT
PHOENIX SERIES FUND
SUBADVISORY AGREEMENT
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January 1, 2005
Xxxxxxxx Asset Management
000 Xxxxx Xxxxxxxx Xxxxxxxxx
Xxxxxxxx, Xxxxxxxxxx 00000-0000
RE: SUBADVISORY AGREEMENT
Ladies and Gentlemen:
Phoenix Series Fund (the "Fund") is a diversified open-end investment company of
the series type registered under the Investment Company Act of 1940 (the "Act"),
and is subject to the rules and regulations promulgated thereunder. The shares
of the Fund are offered or may be offered in several series, including the
Phoenix Balanced Fund (hereafter referred to as the "Series").
Phoenix Investment Counsel, Inc. (the "Adviser") evaluates and recommends series
advisers for the Series and is responsible for the day-to-day management of the
Series.
1. Employment as a Subadviser. The Adviser, being duly authorized, hereby
employs Xxxxxxxx Asset Management (the "Subadviser") as a discretionary
series adviser to invest and reinvest the assets of the equity portion of
the portfolio of the Series on the terms and conditions set forth herein.
The services of the Subadviser hereunder are not to be deemed exclusive;
the Subadviser may render services to others and engage in other
activities that do not conflict in any material manner in the
Subadviser's performance hereunder.
2. Acceptance of Employment; Standard of Performance. The Subadviser accepts
its employment as a discretionary series adviser of the equity portion of
the portfolio of the Series and agrees to use its best professional
judgment to make investment decisions for the Series in accordance with
the provisions of this Agreement and as set forth in Schedule D attached
hereto and made a part hereof.
3. Services of Subadviser. In providing management services to the Series,
the Subadviser shall be subject to the investment objectives, policies
and restrictions of the Fund as they apply to the equity portion of the
portfolio of the Series only, as set forth in the Fund's then current
Prospectus and Statement of Additional Information (as the same may be
modified from time to time and provided to the Subadviser by Adviser),
and to any applicable investment restrictions set forth in the Act and
the Rules thereunder, to the supervision and control of the Trustees of
the Fund (the "Trustees"), and to instructions from the Adviser. The
Subadviser shall not, without the Fund's prior approval, effect any
transactions that would cause the equity portion of the portfolio of the
Series at the time of the transaction to be out of compliance with any
such restrictions or policies. The Adviser shall be solely responsible
for monitoring compliance with the investment objectives, policies and
restrictions of the Fund.
4. Transaction Procedures. The series transactions placed for the Series by
the Subadviser will be consummated by payment to, or delivery by, the
Custodian(s) from time to time designated by the Fund (the "Custodian"),
or such depositories or agents as may be designated by the Custodian in
writing, of all cash and/or securities due to or from the Series. The
Subadviser shall not have possession or custody of such cash and/or
securities or any responsibility or liability with respect to such
custody. The Subadviser shall advise the Custodian and confirm in writing
to the Fund all investment orders for the Series placed by it with
brokers and dealers at the time and in the manner set forth in Schedule A
hereto (as amended from time to time). The Fund shall issue to the
Custodian such instructions as may be appropriate in connection with the
settlement of any transaction initiated by the Subadviser. The Fund shall
be responsible for all custodial arrangements and the payment of all
custodial charges and fees, and, upon giving proper instructions to the
Custodian, the Subadviser shall have no responsibility or liability with
respect to custodial arrangements or the act, omissions or other conduct
of the Custodian.
5. Allocation of Brokerage. The Subadviser shall have authority and
discretion to select brokers and dealers to execute Series transactions
initiated by the Subadviser, and to select the markets on or in which the
transactions will be executed.
A. In placing orders for the sale and purchase of equity securities for
the Series, the Subadviser's primary responsibility shall be to seek the
best execution of orders at the most favorable prices. However, this
responsibility shall not obligate the Subadviser to solicit competitive
bids for each transaction or to seek the lowest available commission cost
to theSeries, so long as the Subadviser reasonably believes that the
broker or dealer selected by it can be expected to obtain a "best
execution" market price on the particular transaction and determines in
good faith that the commission cost is reasonable in relation to the
value of the brokerage and research services (as defined in Section
28(e)(3) of the Securities Exchange Act of 1934) provided by such broker
or dealer to the Subadviser, viewed in terms of either that particular
transaction or of the Subadviser's overall responsibilities with respect
to its clients, including theSeries, as to which the Subadviser exercises
investment discretion, notwithstanding that the Series may not be
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the direct or exclusive beneficiary of any such services or that another
broker may be willing to charge the Series a lower commission on the
particular transaction.
B. The Subadviser shall not execute any securitiestransactions for the
Series with a broker or dealer that is an "affiliated person" (as defined
in the Act) of the Fund, the Subadviser or the Adviser without the prior
written approval of the Fund. The Fund will provide the Subadviser with a
list of brokers and dealers that are "affiliated persons" of the Fund or
Adviser.
6. Proxies and Class Actions. The Subadviser shall review all the proxy
solicitation materials it receives on behalf of the Series... Unless the
Advisor or the Fund gives the Subadviser written instructions to the
contrary, the Subadviser will, in compliance with the proxy voting
procedures of the Series then in effect, vote or abstain from voting, all
proxies received with respect to the issuers of the equity securities in
which assets of the Series may be invested. The Advisor shall cause the
Custodian to forward promptly to the Subadviser all such proxies upon
receipt, so as to afford the Subadviser a reasonable amount of time in
which to determine how to vote such proxies. The Subadviser agrees to
provide the Advisor with quarterly proxy voting reports in such form as
the Advisor may request from time to time.. The Subadviser will not
advise or act on behalf of the Series in regards to class action filings,
with respect to any securities held in the Series portfolio.
7. Fees for Services. The compensation of the Subadviser for its services
under this Agreement shall be calculated and paid by the Adviser in
accordance with the attached Schedule C. Pursuant to the Investment
Advisory Agreement between the Fund and the Adviser, the Adviser is
solely responsible for the payment of fees to the Subadviser.
8. Limitation of Liability. The Subadviser shall not be liable for any
action taken, omitted or suffered to be taken by it in its best
professional judgment, in good faith and believed by it to be authorized
or within the discretion or rights or powers conferred upon it by this
Agreement, or in accordance with specific directions or instructions from
the Fund, provided, however, that such acts or omissions shall not have
constituted a breach of the investment objectives, policies and
restrictions applicable to the Series and that such acts or omissions
shall not have resulted from the Subadviser's willful misfeasance, bad
faith or gross negligence, a violation of the standard of care
established by and applicable to the Subadviser in its actions under this
Agreement or a breach of its duty or of its obligations hereunder
(provided, however, that the foregoing shall not be construed to protect
the Subadviser from liability under the Act).
9. Confidentiality. Subject to the duty of the Subadviser and the Fund to
comply with applicable law, including any demand of any regulatory or
taxing authority having jurisdiction, the parties hereto shall treat as
confidential all information pertaining to the Series and the actions of
the Subadviser and the Fund in respect thereof.
10. Assignment. This Agreement shall terminate automatically in the event of
its assignment, as that term is defined in Section 2(a)(4) of the Act.
The Subadviser shall
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notify the Fund in writing sufficiently in advance of any proposed change
of control, as defined in Section 2(a)(9) of the Act, as will enable the
Fund to consider whether an assignment as defined in Section 2(a)(4) of
the Act will occur, and to take the steps necessary to enter into a new
contract with the Subadviser.
11. Representations, Warranties and Agreements of the Subadviser. The
Subadviser represents, warrants and agrees that:
A. It is registered as an "Investment Adviser" under the Investment
Advisers Act of 1940 ("Advisers Act").
B. It will maintain, keep current and preserve on behalf of the Series,
in the manner required or permitted by the Act and the Rules thereunder,
the records identified in Schedule B (as Schedule B may be amended from
time to time). The Subadviser agrees that such records are the property
of the Series, and will be surrendered to the Series or to Adviser as
agent of the Series promptly upon request of either.
C. It has or shall adopt a written code of ethics complying with the
requirements of Rule 17j-l under the Act and will provide the Fund and
Adviser with a copy of the code of ethics and evidence of its adoption.
Subadviser acknowledges receipt of the written code of ethics adopted by
and on behalf of the Fund (the "Code of Ethics"). Within 15 days of the
end of each calendar quarter while this Agreement is in effect, a duly
authorized compliance officer of the Subadviser shall certify to the Fund
and to Adviser that the Subadviser has complied with the requirements of
Rule 17j-l during the previous calendar quarter and that there has been
no violation of its code of ethics, or the Code of Ethics, or if such a
violation has occurred, that appropriate action was taken in response to
such violation. The Subadviser shall permit the Fund and Adviser to
examine the reports required to be made by the Subadviser under Rule
17j-l(c)(1) and this subparagraph.
D. Reference is hereby made to the Declaration of Trust dated August 17,
2000 establishing the Fund, a copy of which has been filed with the
Secretary of the State of Delaware and elsewhere as required by law, and
to any and all amendments thereto so filed with the Secretary of the
State of Delaware and elsewhere as required by law, and to any and all
amendments thereto so filed or hereafter filed. The name "Phoenix Series
Fund" refers to the Trustees under said Declaration of Trust, as Trustees
and not personally, and no Trustee, shareholder, officer, agent or
employee of the Fund shall be held to any personal liability in
connection with the affairs of the Fund; only the trust estate under said
Declaration of Trust is liable. Without limiting the generality of the
foregoing, neither the Subadviser nor any of its officers, directors,
partners, shareholders or employees shall, under any circumstances, have
recourse or cause or willingly permit recourse to be had directly or
indirectly to any personal, statutory, or other liability of any
shareholder, Trustee, officer, agent or employee of the Fund or of any
successor of the Fund, whether such liability now exists or is hereafter
incurred for claims against the trust estate.
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12. Amendment. This Agreement may be amended at any time, but only by written
agreement among the Subadviser, the Adviser and the Fund, which
amendment, other than amendments to Schedules A, B, and D, is subject to
the approval of the Trustees and the Shareholders of the Fund as and to
the extent required by the Act.
13. Effective Date; Term. This Agreement shall become effective on the date
set forth on the first page of this Agreement, and shall continue in
effect until the first meeting of the shareholders of the Series, and, if
its renewal is approved at that meeting in the manner required by the
Act, shall continue in effect thereafter only so long as its continuance
has been specifically approved at least annually by the Trustees in
accordance with Section 15(a) of the Investment Company Act, and by the
majority vote of the disinterested Trustees in accordance with the
requirements of Section 15(c) thereof.
14. Termination. This Agreement may be terminated by any party, without
penalty, immediately upon written notice to the other parties in the
event of a breach of any provision thereof by a party so notified, or
otherwise upon thirty (30) days' written notice to the other parties, but
any such termination shall not affect the status, obligations or
liabilities of any party hereto to the other parties.
15. Applicable Law. To the extent that state law is not preempted by the
provisions of any law of the United States heretofore or hereafter
enacted, as the same may be amended from time to time, this Agreement
shall be administered, construed and enforced according to the laws of
the State of Delaware.
16. Severability. If any term or condition of this Agreement shall be
invalid or unenforceable to any extent or in any application, then the
remainder of this Agreement shall not be affected thereby, and each and
every term and condition of this Agreement shall be valid and enforced
to the fullest extent permitted by law.
17. Certifications. The Subadviser hereby warrants and represents that it
will provide the requisite certifications requested by the chief
executive officer and chief financial officer of the Fund necessary for
those named officers to fulfill their reporting and certification
obligations on Form N-SAR as required under the Xxxxxxxx-Xxxxx Act of
2002.
18. Indemnification. The Adviser agrees to indemnify and hold harmless the
Subadviser and the Subadviser's directors, officers, employees and agents
from and against any and all losses, liabilities, claims, damages, and
expenses whatsoever, including reasonable attorneys' fees (collectively,
"Losses"), arising out of or relating to (i) any breach by the Adviser of
any provision of this Agreement; (ii) the negligence, willful misconduct,
bad faith, or breach of fiduciary duty of the Adviser; (iii) any
violation by the Adviser of any law or regulation relating to its
activities under this Agreement; and (iv) any dispute between the Adviser
and any Fund shareholder, except to the extent that such Losses result
from the gross negligence, willful misconduct, bad faith, or breach of
fiduciary duty of the Subadviser.
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PHOENIX SERIES FUND
By: /s/ Xxxxx Xxxxxxx
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Name: Xxxxxxx X. Xxxxxxx
Title: Senior Vice President
PHOENIX INVESTMENT COUNSEL, INC.
By: /s/ Xxxx X. Xxxxx
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Name: Xxxx X. Xxxxx
Title: Vice President and Clerk
ACCEPTED:
XXXXXXXX ASSET MANAGEMENT
By: /s/ Xxxxxxx Xxxx
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Name: Xxxxxxx Xxxx
Title: Chief Financial Officer
SCHEDULES: A. Operational Procedures
B. Record Keeping Requirements
C. Fee Schedule
D. Subadviser Functions
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SCHEDULE A
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OPERATIONAL PROCEDURES
In order to minimize operational problems, it will be necessary for a flow of
information to be supplied to State Street Bank and Trust Company (the
"Custodian"), the custodian for the Series.
The Subadviser must furnish the Custodian with daily information as to executed
trades, or, if no trades are executed, with a report to that effect, no later
than 5 p.m. (Eastern Standard time) on the day of the trade (confirmation
received from broker). The necessary information can be sent via facsimile
machine to the Custodian. Information provided to the Custodian shall include
the following:
1. Purchase or sale;
2. Security name;
3. CUSIP number (if applicable);
4. Number of shares and sales price per share;
5. Executing broker;
6. Settlement agent;
7. Trade date;
8. Settlement date;
9. Aggregate commission or if a net trade;
10. Interest purchased or sold from interest bearing security;
11. Other fees;
12. Net proceeds of the transaction;
13. Exchange where trade was executed; and
14. Identified tax lot (if applicable).
When opening accounts with brokers for, and in the name of, the Series, the
account must be a cash account. No margin accounts are to be maintained in the
name of the Series. Delivery instructions are as specified by the Custodian. The
Custodian will supply the Subadviser daily with a cash availability report. This
will normally be done by telex so that the Subadviser will know the amount
available for investment purposes.
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SCHEDULE B
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RECORDS TO BE MAINTAINED BY THE SUBADVISER
1. (Rule 31a-1(b)(5)) A record of each brokerage order, and all other
series purchases and sales, given by the Subadviser on behalf of the
Series for, or in connection with, the purchase or sale of securities,
whether executed or unexecuted. Such records shall include:
A. The name of the broker;
B. The terms and conditions of the order and of any modifications or
cancellations thereof;
C. The time of entry or cancellation;
D. The price at which executed;
E. The time of receipt of a report of execution; and
F. The name of the person who placed the order on behalf of the
Fund.
2. (Rule 31a-1(b)(9)) A record for each fiscal quarter, completed within
ten (10) days after the end of the quarter, showing specifically the
basis or bases upon which the allocation of orders for the purchase and
sale of Series securities placed by the Subadviser to named brokers or
dealers was effected, and the division of brokerage commissions or
other compensation on such purchase and sale orders. Such record:
A. Shall include the consideration given to:
(i) The sale of shares of the Fund by brokers or dealers.
(ii) The supplying of services or benefits by brokers or dealers to:
(a) The Fund,
(b) The Adviser (Phoenix Investment Counsel, Inc.)
(c) The Subadviser, and
(d) Any person other than the foregoing.
(iii) Any other consideration other than the technical qualifications
of the brokers and dealers as such.
B. Shall show the nature of the services or benefits made available.
C. Shall describe in detail the application of any general or
specific formula or other determinant used in arriving at such
allocation of purchase and sale orders and such division of
brokerage commissions or other compensation.
D. The name of the person responsible for making the determination
of such allocation and such division of brokerage commissions or
other compensation.
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3. (Rule 31a-(b)(10)) A record in the form of an appropriate memorandum
identifying the person or persons, committees or groups authorizing the
purchase or sale of series securities. Where a committee or group makes
an authorization, a record shall be kept of the names of its members
who participate in the authorization. There shall be retained as part
of this record: any memorandum, recommendation or instruction
supporting or authorizing the purchase or sale of series securities and
such other information as is appropriate to support the authorization.*
4. (Rule 31a-1(f)) Such accounts, books and other documents as are
required to be maintained by registered investment advisers by rule
adopted under Section 204 of the Investment Advisers Act of 1940, to
the extent such records are necessary or appropriate to record the
Subadviser's transactions for the Series.
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*Such information might include: current financial information, annual and
quarterly reports, press releases, reports by analysts and from brokerage firms
(including their recommendation; i.e., buy, sell, hold) or any internal reports
or subadviser review.
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SCHEDULE C
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SUBADVISORY FEE
(a) For services provided to the Series, the Adviser will pay to the
Subadviser, on or before the 10th day of each month, a fee, payable in arrears,
at the annual rate of fee schedule as follows:
Phoenix Balanced Series 0.275% on the first $1 billion
0.25% on $1 billion to $2 billion
0.225% on the excess over $2 billion
The fees shall be prorated for any month during which this agreement is
in effect for only a portion of the month. In computing the fee to be paid to
the Subadviser, the net asset value of the Series shall be valued as set forth
in the then current registration statement of the Fund.
The subadvisory fees paid by the Adviser to the Subadviser will be
based on the relative value of the portion of the Series portfolio managed by
the Subadviser to the total value of the Series portfolio at each calendar month
end.
For example, if at month end the value of the portion of the Series
portfolio managed by the Subadviser is $50 million and the total value of the
Series portfolio is $90 million then the Subadviser apportionment would be 55.6%
($50 million divided by $90 million)
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SCHEDULE D
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SUBADVISER FUNCTIONS
With respect to managing the investment and reinvestment of the equity
portion of the portfolio of the Series, the Subadviser shall provide, at its own
expense:
(a) An investment program for the equity portion of the portfolio
of the Series consistent with its investment objectives based
upon the development, review and adjustment of buy/sell
strategies approved from time to time by the Board of Trustees
and Adviser;
(b) Implementation of such investment program for the Series based
upon the foregoing criteria;
(c) Quarterly reports, in form and substance acceptable to the
Adviser, with respect to: i) compliance with the Code of Ethics
and the Subadviser's code of ethics; ii) compliance with
procedures adopted from time to time by the Trustees of the
Fund relative to securities eligible for resale under Rule 144A
under the Securities Act of 1933, as amended; iii)
diversification of equity portion of the portfolio of the
Series in accordance with the then prevailing prospectus and
statement of additional information pertaining to the Series
and governing laws; iv) compliance with governing restrictions
relating to the fair valuation of securities for which market
quotations are not readily available or considered "illiquid"
for the purposes of complying with the Series' limitation on
acquisition of illiquid securities; v) any and all other
reports reasonably requested in accordance with or described in
this Agreement; and, vi) the implementation of the Series'
investment program, including, without limitation, analysis of
Series performance as it relates to the equity portion of the
portfolio;
(d) Promptly after filing with the Securities and Exchange
Commission an amendment to its Form ADV, a copy of such
amendment to the Adviser and the Trustees;
(e) Attendance by appropriate representatives of the Subadviser at
meetings requested by the Adviser or Trustees at such time(s)
and location(s) as reasonably requested by the Adviser or
Trustees; and
(f) Notice to the Trustees and the Adviser of the occurrence of any
event which would disqualify the Subadviser from serving as an
investment adviser of an investment company pursuant to Section
9(a) of the Investment Company Act of 1940 or otherwise.
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