ADMINISTRATIVE SERVICES AGREEMENT
FOR AETNA SERIES FUND, INC.
THIS AGREEMENT is made by and between AETNA SERIES FUND, INC., a
Maryland Corporation (the "Fund"), on behalf of each of its series, Aetna Money
Market Fund, Aetna Bond Fund, Aetna Balanced Fund, Aetna Growth and Income Fund,
Aetna International Fund, Aetna Government Fund, Aetna Growth Fund, Aetna Small
Company Fund, Aetna Index Plus Large Cap Fund, Aetna Ascent Fund, Aetna
Crossroads Fund, Aetna Legacy Fund, Aetna High Yield Fund, Aetna Index Plus Bond
Fund, Aetna Index Plus Mid Cap Fund, Aetna Index Plus Small Cap Fund, Aetna Mid
Cap Fund, Aetna Real Estate Securities Fund, and Aetna Value Opportunity Fund
(the "Series"), and AELTUS INVESTMENT MANAGEMENT, INC., a Connecticut
corporation (the "Administrator"), with respect to the following recital of
facts:
R E C I T A L
WHEREAS, the Fund is registered as an open-end diversified management
investment company under the Investment Company Act of 1940 (the "1940 Act");
and
WHEREAS, the Administrator is registered as an investment adviser under
the Investment Advisers Act of 1940 (the "Advisers Act"), and engages in the
business of acting as an investment adviser and an administrator of investment
companies; and
WHEREAS, the Fund has established the Series; and
WHEREAS, the Fund, on behalf of each of its Series, and the
Administrator desire to enter into an agreement to provide for administrative
services for the Series on the terms and conditions hereinafter set forth.
NOW THEREFORE, in consideration of the mutual covenants herein
contained and other good and valuable considerations, the receipt of which is
hereby acknowledged, the parties agree as follows:
I. APPOINTMENT AND OBLIGATIONS OF THE ADMINISTRATOR
The Administrator is hereby appointed to serve as the Administrator to
the Series, to provide the administrative services described herein and assume
the obligations set forth in Section II, subject to the terms of this Agreement
and the control of the Fund's Board of Directors (the "Board"). The
Administrator shall, for all purposes herein, be deemed an independent
contractor and shall have, unless otherwise expressly provided or authorized, no
authority to act for or represent the Series in any way or otherwise be deemed
an agent of the Series.
II. DUTIES OF THE ADMINISTRATOR
In carrying out the terms of this Agreement, the Administrator shall:
A. provide office space, equipment and facilities (which may be the
Administrator's or its affiliates') for maintaining the Fund's organization, for
meetings of the Fund's Board and shareholders, and for performing administrative
services hereunder;
B. supervise and manage all aspects of the Series' operations (other
than investment advisory activities), supervise relations with, and monitor the
performance of, custodians, depositories, transfer and pricing agents,
accountants, attorneys, underwriters, brokers and dealers, insurers and other
persons in any capacity deemed to be necessary and desirable by the Board;
C. provide internal clerical and legal services, and stationery and
office supplies;
D. provide accounting services, including:
1. determining and arranging for the publication of the net asset
value of each Series;
2. preparing financial information for presentation to the Fund's
Board and management;
3. preparing and monitoring the Fund's annual expense budget, and
establishing daily accruals;
4. coordinating payment of fund expenses;
5. calculating periodic dividend rates to be declared in accordance
with management guidelines;
6. calculating total return information as defined in the current
prospectus and statement of additional information;
7. coordinating audit packages for use by independent public
accountants;
8. responding to regulatory audits;
E. provide non-investment related statistical and research data and
such other reports, evaluations and information as the Series may request from
time to time;
F. monitor each Series' compliance with the current prospectus and
statement of additional information, the 1940 Act, the Internal Revenue Code and
other applicable laws and regulations;
G. prepare, to the extent requested by the Fund, registration
statements, proxy statements and annual and semi-annual reports to shareholders;
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H. arrange for the printing and mailing (at the Series' expense) of
proxy statements and other reports or other materials provided to the Series'
shareholders;
I. support outside auditors in preparing and filing all the Series'
federal and state tax returns and required tax filings other than those required
to be made by the Series' custodian and transfer agent;
J. prepare periodic reports to and filings with the Securities and
Exchange Commission (the "SEC") and state Blue Sky authorities with the advice
of the Series' counsel;
K. maintain the Fund's existence, and during such times as the shares
of the Series are publicly offered, maintain the registration and qualification
of the Series' shares under federal and state law;
L. keep and maintain the financial accounts and records of the Series;
M. develop and implement, if appropriate, management and shareholder
services designed to enhance the value or convenience of the Series as an
investment vehicle;
N. provide the Board on a regular basis with reports and analyses of
the Series' operations and the operations of comparable investment companies;
and
O. take any other actions which appear to the Administrator and the
Board necessary to carry into effect the purposes of this Agreement.
III. REPRESENTATIONS AND WARRANTIES
A. REPRESENTATIONS AND WARRANTIES OF THE ADMINISTRATOR
The Administrator hereby represents and warrants to the Fund as
follows:
1. Due Incorporation and Organization. The Administrator is duly
organized and is in good standing under the laws of the State of Connecticut and
is fully authorized to enter into this Agreement and carry out its duties and
obligations hereunder.
2. Best Efforts. The Administrator at all times shall provide its best
judgment and effort to the Series in carrying out its obligations hereunder.
B. REPRESENTATIONS AND WARRANTIES OF THE SERIES AND THE FUND
The Fund, on behalf of each of its Series, hereby represents and
warrants to the Administrator as follows:
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1. Due Incorporation and Organization. The Fund has been duly
incorporated under the laws of the State of Maryland and it is authorized to
enter into this Agreement and carry out its terms.
2. Registration. The Fund is registered as an investment company with
the SEC under the 1940 Act and shares of the Series are registered or qualified
for offer and sale to the public under the Securities Act of 1933 (the "1933
Act"), and all applicable state securities laws. Such registrations or
qualifications will be kept in effect during the term of this Agreement.
IV. CONTROL BY THE BOARD OF DIRECTORS
Any activities undertaken by the Administrator pursuant to this
Agreement on behalf of the Series shall at all times be subject to any
directives of the Board.
V. COMPLIANCE WITH APPLICABLE REQUIREMENTS
In carrying out its obligations under this Agreement, the Administrator
shall at all times conform to:
A. all applicable provisions of the 1940 Act;
B. the provisions of the registration statement of the Fund under the
1933 Act and the 1940 Act;
C. the provisions of the Fund's Articles of Incorporation, as amended;
D. the provisions of the By-Laws of the Fund, as amended; and
E. any other applicable provisions of state and federal law.
VI. DELEGATION OF RESPONSIBILITIES
All services to be provided by the Administrator under this Agreement
may be furnished by any directors, officers or employees of the Administrator or
by any affiliates of the Administrator under the Administrator's supervision.
VII. COMPENSATION
For the services to be rendered, the facilities furnished and the
expenses assumed by the Administrator, the Fund, on behalf of each of its
Series, shall pay to the Administrator an annual fee at a rate of 0.10% of the
average daily net assets of each of its Series payable monthly (in arrears).
Except as hereinafter set forth, compensation under this Agreement shall be
calculated and accrued daily at the rate of 1/365 of 0.10% of the daily net
assets of the Series. If this Agreement becomes
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effective subsequent to the first day of a month or shall terminate before the
last day of a month, compensation for that part of the month this Agreement is
in effect shall be prorated in a manner consistent with the calculation of the
fees as set forth above.
VIII. NON-EXCLUSIVITY
The services of the Administrator to the Series are not to be deemed to
be exclusive, and the Administrator shall be free to render administrative or
other services to others (including other investment companies) and to engage in
other activities, so long as its services under this Agreement are not impaired
thereby. It is understood and agreed that officers and directors of the
Administrator may serve as officers or directors of the Fund, and that officers
or directors of the Fund may serve as officers or directors of the Administrator
to the extent permitted by law; and that the officers and directors of the
Administrator are not prohibited from engaging in any other business activity or
from rendering services to any other person, or from serving as partners,
officers, directors or trustees of any other firm or trust, including other
investment companies.
IX. TERM
This Agreement shall become effective on February 2, 1998, and shall
continue through December 31, 1998. Thereafter it shall continue for successive
annual periods, provided such continuance is specifically approved at least
annually:
1. a. by the Board, or
b. by the vote of a majority of the Series' outstanding voting
securities (as defined in Section 2(a)(42) of the 1940 Act), and
2. by the affirmative vote of a majority of the directors who are not
parties to this Agreement or interested persons of a party to this Agreement
(other than as a director of the Fund), by votes cast in person at a meeting
specifically called for such purpose.
X. TERMINATION
This Agreement may be terminated at any time, without the payment of
any penalty, by vote of the Fund's directors or by vote of a majority of the
Series' outstanding voting securities, as defined in Section 2(a)(42) of the
1940 Act, or by the Administrator, on sixty (60) days' written notice to the
other party.
XI. LIABILITY OF ADMINISTRATOR AND INDEMNIFICATION
A. LIABILITY
The Administrator shall be liable to the Fund and shall indemnify the
Fund for any losses incurred by the Fund, whether in the purchase, holding or
sale of any security or otherwise, to the
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extent that such losses resulted from an act or omission on the part of the
Administrator or its officers, directors or employees, that is found to involve
willful misfeasance, bad faith or negligence, or reckless disregard by the
Administrator of its duties under this Agreement, in connection with the
services rendered by the Administrator hereunder.
B. INDEMNIFICATION
In the absence of willful misfeasance, bad faith, negligence or
reckless disregard of obligations or duties hereunder on the part of the
Administrator or any officer, director or employee of the Administrator, to the
extent permitted by applicable law, the Fund hereby agrees to indemnify and hold
the Administrator harmless from and against all claims, actions, suits and
proceedings at law or in equity, whether brought or asserted by a private party
or a governmental agency, instrumentality or entity of any kind, relating to the
sale, purchase, pledge of, advertisement of, or solicitation of sales or
purchases of any security (whether of the Series or otherwise) by the Fund, its
officers, directors, employees or agents in alleged violation of applicable
federal, state or foreign laws, rules or regulations.
XII. NOTICES
Any notices under this Agreement shall be in writing, addressed and
delivered or mailed postage paid to the other party at such address as such
other party may designate for the receipt of such notice. Until further notice
to the other party, it is agreed that the address of the Administrator for this
purpose shall be 000 Xxxxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxxxx 00000-0000, and the
address of the Fund for this purpose shall be 000 Xxxxxxxxxx Xxxxxx, Xxxxxxxx,
Xxxxxxxxxxx 00000.
XIII. QUESTIONS OF INTERPRETATIONS
This Agreement shall be governed by the laws of the State of
Connecticut. Any question of interpretation of any term or provision of this
Agreement having a counterpart in or otherwise derived from a term or provision
of the 1940 Act shall be resolved by reference to such term or provision of the
1940 Act and to interpretations thereof, if any, by the United States courts or,
in the absence of any controlling decision of any such court, by rules or orders
of the SEC issued pursuant to the 1940 Act, or contained in no-action and
interpretive positions taken by the SEC staff. In addition, where the effect of
a requirement of the 1940 Act reflected in the provisions of this Agreement is
revised by rule or order of the SEC, such provisions shall be deemed to
incorporate the effect of such rule or order.
XIV. SERVICE XXXX
The service xxxx of the Fund and the Series and the name "Aetna" have
been adopted by the Fund with the permission of Aetna Services, Inc. (formerly
known as Aetna Life and Casualty Company) and their continued use is subject to
the right of Aetna Services, Inc. to withdraw this permission in the event the
Administrator or another subsidiary or affiliated corporation of Aetna Services,
Inc. should not be the Administrator of the Series.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate by their respective officers as of the 30th day of
January, 1998.
AETNA SERIES FUND, INC.
on behalf of each of its Series,
Aetna Money Market Fund
Aetna Bond Fund
Aetna Balanced Fund
Aetna Growth and Income Fund
Aetna International Fund
Aetna Government Fund
Aetna Growth Fund
Aetna Small Company Fund
Aetna Index Plus Large Cap Fund
Aetna Ascent Fund
Aetna Crossroads Fund
Aetna Legacy Fund
Aetna High Yield Fund
Aetna Index Plus Bond Fund
Aetna Index Plus Mid Cap Fund
Aetna Index Plus Small Cap Fund
Aetna Mid Cap Fund
AELTUS INVESTMENT Aetna Real Estate Securities Fund
MANAGEMENT, INC. Aetna Value Opportunity Fund
By: /s/ Xxxx X. Xxx By: /s/ J. Xxxxx Xxx
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Name: Xxxx X. Xxx Name: J. Xxxxx Xxx
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Title: President Title: President
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Attest: Attest:
/s/ X. Xxxxxxxxxx /s/ XxXxx X. Xxxxxxxxx
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Name: Xxxxx Xxxxxxxxxx Name: XxXxx X. Xxxxxxxxx
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Title: Assistant Secretary Title: Assistant Secretary
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