ATTACHMENT FOR CURRENT FILING OF N-SAR SUB-ITEM 77Q1: Exhibit A Expense Limitation Agreement
ATTACHMENT FOR CURRENT FILING OF N-SAR
SUB-ITEM 77Q1: Exhibit A
1. Expense Limitation Agreement between Xxxx Xxxxxxx Funds III and Xxxx Xxxxxxx Investment Management Services, LLC.
May 28, 2009
To the Trustees of:
Xxxx Xxxxxxx Funds III
000 Xxxxxxxx Xxxxxx
Boston, MA 02210
Re: Amended and Restated Expense Limitation Agreement and Voluntary Expense Limitation Notice
With reference to the Advisory Agreement dated September 21, 2005, as amended, entered into by and between Xxxx Xxxxxxx Investment Management Services, LLC (the “Adviser”) and Xxxx Xxxxxxx Funds III (the “Trust”), on behalf of each series of the Trust (each, a “Fund” and collectively, the “Funds”), we hereby notify you as follows:
1. The Adviser agrees to contractually waive its management fee for each Fund and, to the extent necessary, bear other expenses, as set forth in Appendices A and B hereto.
2. The Adviser has voluntarily agreed to waive its management fee as set forth in Appendices C and D.
3. We understand and intend that you will rely on this undertaking in overseeing the preparation and filing of Post-effective Amendments to the Registration Statement on Form N-1A for the Trust and the Funds with the Securities and Exchange Commission, in accruing each Fund’s expenses for purposes of calculating its net and gross asset value per share, and for other purposes permitted under Form N-1A and/or the Investment Company Act of 1940, as amended, and we expressly permit you so to rely.
Very truly yours,
XXXX XXXXXXX INVESTMENT MANAGEMENT SERVICES, LLC
By: _/s/ Xxxxxxx X. Xxxx _
Xxxxxxx X. Xxxx
Chief Financial Officer
By: _/s/ Xxxxxxx Xxxxx _
Xxxxxxx Xxxxx
Senior Vice President
APPENDIX A
Total Fund Operating Expense Limitations
For purposes of this Appendix:
“Expenses” means all the expenses of a class of shares of a Fund (including those expenses of the Fund attributable to such class) but excluding: (i) taxes; (ii) portfolio brokerage commissions; (iii) interest; (iv) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business; (v) acquired fees; (vi) short dividend expense and (vii) fees under any agreements or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Trust.
“Expense Limit” means the percentage of average annual net assets (on an annualized basis) attributable to a class of shares of the Funds set forth below.
The Adviser agrees to make payment to a specific class of shares of the Fund (up to the amount of the expenses relating solely to such class of shares), in an amount equal to the amount by which the Expenses of such class of shares exceed the Expense Limit for such class set forth in the table below.
The Expense Limit for the classes of shares of the Funds indicated below for the purposes of this Appendix shall be as follows:
*This expense reimbursement shall continue in effect until July 31, 2010 and thereafter until terminated by the Adviser.
**This expense reimbursement shall continue in effect until June 30, 2010 and thereafter until terminated by the Adviser.
***This expense reimbursement shall continue in effect until December 31, 2009 and thereafter until terminated by the Adviser.
APPENDIX B
Total Operating Expense Limitations
For purposes of this Appendix:
“Expenses” means all the expenses of a class of shares of a Fund (including those expenses of the Fund attributable to such class) but excluding: (i) taxes; (ii) portfolio brokerage commissions; (iii) interest; (iv) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business; (v) acquired fees and (vi) fees under any agreements or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Trust.
“Expense Limit” means the percentage of average annual net assets (on an annualized basis) attributable to a class of shares of the Funds set forth below.
The Adviser agrees to make payment to a specific class of shares of the Fund (up to the amount of the expenses relating solely to such class of shares), in an amount equal to the amount by which the Expenses of such class of shares exceed the Expense Limit for such class set forth in the table below.
The Expense Limit for each class of the Fund for the purposes of this Appendix shall be as follows:
|
|
Classes: |
|
|
|
|
Fund: |
A |
B |
C |
I |
|
International Allocation Portfolio |
0.68% |
1.38% |
1.38% |
0.20% |
This Expense Limit shall continue in effect until June 30, 2010 and thereafter until terminated by the Adviser.
APPENDIX C
Advisor Fee Voluntary Waiver
Fund Level
Xxxx Xxxxxxx Investment Management Services (the “Adviser”), as the investment adviser for the Xxxx Xxxxxxx International Allocation Portfolio (the “Fund”), receives a fee of 0.05% on assets invested in funds of Xxxx Xxxxxxx Funds II and Xxxx Xxxxxxx Funds III and 0.50% on all other investments.
The Fund invests in other mutual funds, of which some or all of the investments are mutual funds managed by the Adviser who receives an advisory fee for such services. The voluntary adviser fee waiver shall apply as follows:
The Adviser has voluntarily agreed to waive its advisory fees for the Fund so that the amount retained by the Adviser after payment of subadvisory fees, including Adviser fees collected on the underlying investments after payment of subadvisory fees, does not exceed 0.50% of the Fund’s average annual net assets.
This advisory fee waiver is voluntary and can be terminated at any time by the Adviser on notice to the Trust.
APPENDIX D
Advisor Fee Voluntary Waiver
Fund Level
The Adviser, as the investment adviser for Xxxx Xxxxxxx Classic Value Mega Cap Fund (the “Fund”), receives a management fee stated as an annual percentage of the current value of the net assets of the Fund determined in accordance with the following schedule, and that rate is applied to the average daily net assets of the Fund.
|
|
|
|
|
|
|
|
|
|
The voluntary adviser fee waiver shall apply as follows:
Effective as of May 1, 2009, the Adviser has voluntarily agreed to waive its advisory fees payable by the Fund in an amount equal to 0.10% of the Fund’s average daily net assets, on an annualized basis.
This advisory fee waiver is voluntary and can be terminated at any time by the Adviser on notice to the Trust.
