HC Capital U.S. Mortgage/Asset Backed Fixed Income Portfolio Amendment No. 1 to the Portfolio Management Agreement
HC Capital U.S. Mortgage/Asset Backed Fixed Income Portfolio
Amendment No. 1 to the Portfolio Management Agreement
Amendment, made as August 26, 2011 and retroactively effective as of June 30, 2011, to the
Portfolio Management Agreement dated December 6, 2010 (the “Agreement”) between the HC Capital
Trust, an investment company registered under the Investment Company Act of 1940 as an open-end,
series, management investment company, and BlackRock Financial Management, Inc (“BlackRock”). All
capitalized terms used in this Amendment and not defined herein shall have the same meaning
ascribed to them in the Agreement. Except as specifically set forth herein, all other provisions
of the Agreement shall remain in full force and effect.
WHEREAS, Xxxxxx Xxxxxxxxx & Co., LLC (“Xxxxxx Xxxxxxxxx” or “HCC”) is a registered investment
adviser that serves as the primary investment adviser to the Trust through its “HC Capital
Solutions” operating division and provides similar services to certain other investment advisory
clients (“Other Xxxxxx Accounts”); and
WHEREAS, Portfolio Manager provides day-to-day portfolio management services to the HC Capital
Trust U.S. Mortgage/Asset Backed Fixed Income Portfolio (“Portfolio”), a separate series of the
Trust, pursuant to the Agreement, as well as to the HC Capital Trust Core Fixed Income Portfolio
and Other Xxxxxx Accounts; and
WHEREAS, the Portfolio Manager has proposed to amend the Agreement in a manner that will reduce the
fee payable to the Portfolio Manager under certain circumstances as more fully set forth herein,
and the Trust has determined that such amendment is in the interests of the shareholders of the
Portfolio;
NOW, THEREFORE, it is hereby agreed that Section 4 of the Agreement will be replaced in its
entirety by the following:
4. (a) Portfolio Manager shall pay all of its expenses incurred in the performance of
its duties under its Agreement and shall not be required to pay any of the expenses of
the Trust. For its services under this Agreement, Portfolio Manager shall be entitled
to receive a fee, which fee shall be calculated daily and payable quarterly, at the
annual rate of 0.175% of the first $200 million of the Combined Assets and 0.15% of the
Combined Assets exceeding $200 million.
| (b) | For purposes of this Agreement: |
| (i) | “Combined Assets” shall mean the sum of (i) the net assets of the Account; (ii) the net assets of that portion of The Core Fixed Income Securities Portfolio of the Trust allocated to the Portfolio Manager from time-to-time and (iii) the net assets of each of the Other Xxxxxx Accounts. | ||
| (ii) | “Average Quarterly Net Assets” shall mean the average of the average daily net asset values of the Account, the average of the average daily net asset values of The Core Fixed Income Securities Portfolio of the Trust allocated to the Portfolio Manager from time-to-time and/or the average of the month-end net asset values of the Combined Assets on the Other Xxxxxx Accounts, as the case may be, as of the last business day of each of the three months in the calendar quarter. It is understood that the average daily net asset value of the Account and The Core Fixed Income Securities Portfolio shall be calculated in accordance with the policies of the Trust as set forth in the Trust’s prospectus as it may be amended from time to time and that the net asset value of the Other |
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| Accounts shall be calculated by the applicable custodian or valuation agent and that income accruals and receivables shall be included in making such calculation. |
| (iii) | The fee payable to BlackRock by the Portfolio shall be paid and billed in arrears based on the Average Quarterly Net Assets of the Combined Assets during the preceding calendar quarter. The fee payable shall be calculated by applying the annual rate, as set forth in the fee schedule above, to the Average Quarterly Net Assets of the Combined Assets, multiplied by actual/365; and multiplying by a factor that is equal to the proportion that the Quarterly Average Net Assets of the Account bears to the Combined Assets. | ||
| (iv) | For a calendar quarter in which this Agreement becomes effective or terminates, the portion of the Portfolio Manager’s fee due hereunder with respect to the Account shall be prorated on the basis of the number of days that the Agreement is in effect during the calendar quarter. |
This Amendment may be executed in any number of counterparts by the parties hereto (including
facsimile transmission), each of which counterparts when so executed shall constitute an original,
but the counterparts when together shall constitute the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by
their respective duly authorized representatives as of the date first above written.
/s/ Xxxxxxx Xxxx
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Title: Assistant Treasurer |
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BLACKROCK FINANCIAL MANAGEMENT, INC |
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/s/ Xxxx XxXxxxxx
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Title: Managing Director |
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