Exhibit Q1(a) to Form N-SAR
XXXXX FARGO VARIABLE TRUST
XXXXX CAPITAL MANAGEMENT INCORPORATED
INVESTMENT SUB-ADVISORY AGREEMENT
APPENDIX A
VARIABLE TRUST FUNDS
Asset Allocation Fund
C&B Large Cap Value Fund(1) (currently named the Equity Value Fund)
Discovery Fund*
Equity Income Fund
International Core Fund(2) (currently named the International Equity Fund)
Large Company Core Fund(3) (currently named the Growth Fund)
Money Market Fund
Multi-Cap Value Fund*
Opportunity Fund*
Small Cap Growth Fund
Total Return Bond Fund
Most Recent Annual Approval Date: May 18, 2004
Appendix A amended: February 8, 2005
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* On August 10, 2004, the Board of Trustees approved the reorganization of
certain Strong Funds into certain Funds of the Trust. In connection with this
reorganization, this Fund is expected to commence operations on April 11, 2005.
(1) On November 2, 2004 and February 8, 2005, the Board of Trustees approved
certain Fund name changes. Effective April 11, 2005, the Equity Value Fund will
be renamed the C&B Large Cap Value Fund. On November 2, 2004, the Board of
Trustees approved Xxxxx & Xxxxxx, X.X. to replace Xxxxx Capital Management
Incorporated as the sub-adviser to this Fund.
(2) On November 2, 2004, the Board of Trustees approved certain Fund name
changes. Effective April 11, 2005, the International Equity Fund will be renamed
the International Core Fund. On August 10, 2004, the Board of Trustees approved
New Star Institutional Managers Limited to replace Xxxxx Capital Management
Incorporated as the sub-adviser to this Fund.
(3) On November 2, 2004, the Board of Trustees approved certain Fund name
changes. Effective April 11, 2005, the Growth Fund will be renamed the Large
Company Core Fund. On November 2, 2004, the Board of Trustees approved Matrix
Asset Advisers, Inc. to replace Xxxxx Capital Management Incorporated as the
sub-adviser to this Fund.
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SCHEDULE A
XXXXX FARGO VARIABLE TRUST
INVESTMENT SUB-ADVISORY AGREEMENT
FEE AGREEMENT
This fee agreement is made as of the 1st day of May, 2003, between Xxxxx
Fargo Funds Management, LLC (the "Adviser") and Xxxxx Capital Management
Incorporated (the "Sub-Adviser") and
WHEREAS, the parties and Xxxxx Fargo Variable Trust (the "Trust") have
entered into an Investment Sub-Advisory Agreement ("Sub-Advisory Agreement")
whereby the Sub-Adviser provides investment management advice to each series of
the Trust as listed in Schedule A to the Sub-Advisory Agreement (each a "Fund"
and collectively the "Funds").
WHEREAS, the Sub-Advisory Agreement provides that the fees to be paid to
the Sub-Adviser are to be as agreed upon in writing by the parties.
NOW THEREFORE, the parties agree that the fees to be paid to the
Sub-Adviser under the Sub-Advisory Agreement shall be calculated as follows on a
monthly basis by applying the following annual rates listed for each Fund listed
in Appendix A.
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NAME OF FUND SUB-ADVISORY RATE
--------------------------------------------------------------------------------
Asset Allocation Fund 0-1000M 0.15
>1000M 0.10
--------------------------------------------------------------------------------
C&B Large Cap Value Fund(4) (currently 0-200M 0.25
named the Equity Value Fund) 200-400M 0.20
>400M 0.15
--------------------------------------------------------------------------------
Discovery Fund* 0-200M 0.35
>200M 0.30
--------------------------------------------------------------------------------
Equity Income Fund 0-200M 0.25
200M-400M 0.20
>400M 0.15
-------------------------------------------------------------------------------
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* On August 10, 2004, the Board of Trustees approved the reorganization of
certain Strong Funds into certain Funds of the Trust. In connection with this
reorganization, this Fund is expected to commence operations on April 11, 2005.
(4) On November 2, 2004 and February 8, 2005, the Board of Trustees approved
certain Fund name changes. Effective April 11, 2005, the Equity Value Fund will
be renamed the C&B Large Cap Value Fund. On November 2, 2004, the Board of
Trustees approved Xxxxx & Xxxxxx, X.X. to replace Xxxxx Capital Management
Incorporated as the sub-adviser to this Fund.
2
--------------------------------------------------------------------------------
NAME OF FUND SUB-ADVISORY RATE
--------------------------------------------------------------------------------
International Core Fund(5) (currently the 0-200M 0.35
International Equity Fund) >200M 0.25
--------------------------------------------------------------------------------
Large Company Core Fund(6) (currently 0-200M 0.25
named the Growth Fund) 200-400M 0.20
>400M 0.15
--------------------------------------------------------------------------------
Money Market Fund 0-1000M 0.05
>1000M 0.04
--------------------------------------------------------------------------------
Multi-Cap Value Fund* 0-200M 0.35
>200M 0.30
--------------------------------------------------------------------------------
Opportunity Fund* 0-200M 0.35
>200M 0.30
--------------------------------------------------------------------------------
Small Cap Growth Fund 0-200M 0.25
>200M 0.20
--------------------------------------------------------------------------------
Total Return Bond Fund 0-400M 0.15
400-800M 0.125
>800M 0.10
--------------------------------------------------------------------------------
The foregoing fee schedule is agreed to as of February 8, 2005 and shall
remain in effect until changed in writing by the parties.
XXXXX FARGO FUNDS MANAGEMENT, LLC
By:______________________________
Xxxxxx Xxxx
Senior Vice President
XXXXX CAPITAL MANAGEMENT INCORPORATED
By:_______________________________
Xxxxx X'Xxxxx
Chief Financial Officer
-----------------
* On August 10, 2004, the Board of Trustees approved the reorganization of
certain Strong Funds into certain Funds of the Trust. In connection with this
reorganization, this Fund is expected to commence operations on April 11, 2005.
(5) On November 2, 2004, the Board of Trustees approved certain Fund name
changes. Effective April 11, 2005, the International Equity Fund will be renamed
the International Core Fund. On August 10, 2004, the Board of Trustees approved
New Star Institutional Managers Limited to replace Xxxxx Capital Management
Incorporated as the sub-adviser to this Fund.
(6) On November 2, 2004, the Board of Trustees approved certain Fund name
changes. Effective April 11, 2005, the Growth Fund will be renamed the Large
Company Core Fund. On November 2, 2004, the Board of Trustees approved Matrix
Advisers to replace Xxxxx Capital Management Incorporated as the sub-adviser to
this Fund.
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