EXHIBIT 4(h)
USAA Investment Management Company
10750 Xxxxxx X. XxXxxxxxx Freeway
San Xxxxxxx, XX 00000
Gentlemen:
Pursuant to Section 1(b) of the Advisory Agreement dated as of September
21, 1990 between USAA Mutual Fund, Inc. (the "Company") and USAA Investment
Management Company (the "Manager"), please be advised that the Company has
established three new series of its shares, namely, the Intermediate-Term Bond
Fund, High-Yield Opportunities Fund, and the Small Cap Stock Fund (the
"Funds"), and please be further advised that the Company desires to retain the
Manager to render management and investment advisory services under the
Advisory Agreement to the Funds at the fee stated below:
ADVISORY FEE SCHEDULE
One-half of one percent (.50%) of the first $50,000,000 of the average net
assets, two-fifths of one percent (.40%) for that portion of average net assets
over $50,000,000 but not over $100,000,000, and three-tenths of one percent
(.30%) of that portion of average net assets in excess of $100,000,000.
INTERMEDIATE-TERM BOND FUND
One-half of one percent (.50%) of the aggregate average net assets of the
HIGH-YIELD OPPORTUNITIES FUND
Three-fourths of one percent (.75%) of the aggregate average net assets of the
SMALL CAP STOCK FUND
From time to time, the Manager may voluntarily waive all or a portion of
the advisory fee payable with respect to a Fund. In addition to any amounts
otherwise payable to the Manager as an advisory fee for current services under
the Advisory Agreement, the Company shall be obligated to pay the Manager all
amounts previously waived by the Manager with respect to the Fund, provided
that such additional payments are made not later than three years from the date
first set forth below and provided further that the amount of such additional
payment in any year, together with all other expenses of the Fund, in the
aggregate, would not cause the Fund's expense ratio in such year to exceed, in
the case of the Intermediate-Term Bond Fund, .65% of the average net assets of
the Fund or, in the case of the High-Yield Opportunities Fund, .75% of the
average net assets of the Fund.
Please state below whether you are willing to render such services at the
fee stated above.
USAA MUTUAL FUND, INC.
Attest: /s/ Xxxxxxx Xxxxxx By: /s/ Xxxxxxx X.X. Xxxx
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Secretary President
Dated: August 2, 1999
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We as the sole shareholder of the above named Funds, do hereby approve the
Advisory Agreement and are willing to render management and investment advisory
services to the Intermediate-Term Bond Fund, High-Yield Opportunities Fund, and
the Small Cap Stock Fund at the fee stated above.
USAA INVESTMENT MANAGEMENT
COMPANY
Attest: /s/ Xxxx X. Xxxxxxx By: /s/ Xxxx X. Xxxxxxxx, Xx.
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Assistant Secretary Senior Vice President
Dated: August 2, 1999
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