SUB-INVESTMENT ADVISORY AGREEMENT
Effective as of May 10, 2002
Credit Suisse Asset Management Limited
0-0 Xxxxxxxxx 0-xxxxx
Xxxxxx-xx, Xxxxx
Xxxxx
Dear Sirs:
The Global Technology portfolio (the "Portfolio") of Credit Suisse Trust (the
"Fund"), a business trust organized under the laws of the Commonwealth of
Massachusetts, and Credit Suisse Asset Management, LLC, as investment adviser to
the Fund ("CSAM"), herewith confirm their agreement with Credit Suisse Asset
Management Limited (the "Sub-Adviser"), a corporation organized under the laws
of Japan, as follows:
Investment Description; Appointment
The Fund desires to employ the capital of the Portfolio by investing and
reinvesting in securities of the kind and in accordance with the limitations
specified in the Fund's Agreement and Declaration of Trust, as may be amended
from time to time (the "Agreement and Declaration of Trust"), and in the Fund's
Prospectus(es) and Statement(s) of Additional Information relating to the
Portfolio, as from time to time in effect (the "Prospectus" and "SAI,"
respectively), and in such manner and to such extent as may from time to time be
approved by the Board of Trustees of the Fund. Copies of the Prospectus, SAI
and Agreement and Declaration of Trust have been or will be submitted to the
Sub-Adviser. The Fund agrees to promptly provide the Sub-Adviser copies of all
amendments to the Prospectus and SAI on an on-going basis. The Fund employs
CSAM as investment adviser to the Portfolio. CSAM desires to employ and hereby
appoints the Sub-Adviser to act as its sub-investment adviser upon the terms set
forth in this Agreement. The Sub-Adviser accepts the appointment and agrees to
furnish the services set forth below for the compensation provided for herein.
Services as Sub-Investment Adviser
Subject to the supervision and direction of CSAM, the Sub-Adviser will provide
investment advisory and portfolio management advice to all or that portion of
the Portfolio's assets designated by CSAM from time to time (the "Assets") in
accordance with (a) the Agreement and Declaration of Trust, (b) the Investment
Company Act of 1940, as amended (the "1940 Act"), and the Investment Advisers
Act of 1940, as amended (the "Advisers Act"), and all applicable Rules and
Regulations of the Securities and Exchange Commission (the "SEC") and all other
applicable laws and regulations, and (c) the Portfolio's investment objective
and policies as stated in the Prospectus and SAI and investment parameters
provided by CSAM from time to time. In connection therewith, the Sub-Adviser
will:
manage the Assets or furnish recommendations to manage the Assets in accordance
with the Portfolio's investment objective and policies; make investment
decisions or recommendations with respect to the Assets; if requested by CSAM
will place purchase and sale orders for securities on behalf of the Portfolio
with respect to the Assets; exercise voting rights with respect to the Assets
if requested by CSAM; and furnish CSAM and the Fund's Board of Trustees with
such periodic and special reports as the Fund or CSAM may reasonably request.
In providing those services, the Sub-Adviser will, if requested by CSAM,
provide investment research and supervision of the Assets and conduct a
continued program of investment, evaluation and, if appropriate, sale and
reinvestment of the Assets. In connection with the performance of the services
of the Sub-Adviser provided for herein, the Sub-Adviser may contract at its own
expense with third parties for the acquisition of research, clerical services
and other administrative services that would not require such parties to be
required to register as an investment adviser under the Advisers Act; provided
that the Sub-Adviser shall remain liable for the performance of its duties
hereunder.
Execution of Transactions
In executing transactions for the Assets, selecting brokers or dealers and
negotiating any brokerage commission rates, the Sub-Adviser will use its best
efforts to seek best execution. In assessing best execution available for any
portfolio transaction, the Sub-Adviser will consider all factors it deems
relevant including, but not limited to, the breadth of the market in the
security, the price of the security, the financial condition and execution
capability of the broker or dealer and the reasonableness of any commission for
the specific transaction and for transactions executed through the broker or
dealer in the aggregate. In selecting brokers or dealers to execute a
particular transaction and in evaluating the best overall terms available, to
the extent that the execution and price offered by more than one broker or
dealer are comparable the Sub-Adviser may consider any brokerage and research
services (as those terms are defined in Section 28(e) of the Securities Exchange
Act of 1934) provided to the Sub-Adviser or to CSAM for use on behalf of the
Fund or other clients of the Sub-Adviser or CSAM.
It is understood that the services of the Sub-Adviser are not exclusive, and
nothing in this Agreement shall prevent the Sub-Adviser from providing similar
services to other investment companies or from engaging in other activities,
provided that those activities do not adversely affect the ability of the
Sub-Adviser to perform its services under this Agreement. The Fund and CSAM
further understand and acknowledge that the persons employed by the Sub-Adviser
to assist in the performance of its duties under this Agreement will not devote
their full time to that service. Nothing contained in this Agreement will be
deemed to limit or restrict the right of the Sub-Adviser or any affiliate of the
Sub-Adviser to engage in and devote time and attention to other businesses or to
render services of whatever kind or nature, provided that doing so does not
adversely affect the ability of the Sub-Adviser to perform its services under
this Agreement.
On occasions when the Sub-Adviser deems the purchase or sale of a security to be
in the best interest of the Portfolio as well as of other investment advisory
clients of the Sub-Adviser, the Sub-Adviser may, to the extent permitted by
applicable laws and regulations, but shall not be obligated to, aggregate the
securities to be so sold or purchased with those of its other clients. In such
event, allocation of the securities so purchased or sold, as well as the
expenses incurred in the transaction, will be made by the Sub-Adviser in a
manner that is fair and equitable, in the judgment of the Sub-Adviser, in the
exercise of its fiduciary obligations to the Fund and to such other clients.
The Fund recognizes that the effect of the aggregation may operate on some
occasions to the Portfolio's advantage or disadvantage. The Sub-Adviser shall
provide to CSAM and the Fund all information reasonably requested by CSAM and
the Fund relating to the decisions made by the Sub-Adviser regarding allocation
of securities purchased or sold, as well as the expenses incurred in a
transaction, among the Fund and the Sub-Adviser's other investment advisory
clients.
In connection with the purchase and sale of securities for the Portfolio, the
Sub-Adviser will provide such information as may be reasonably necessary to
enable the custodian and co-administrators to perform their administrative and
recordkeeping responsibilities with respect to the Fund.
Disclosure Regarding the Sub-Adviser
The Sub-Adviser has reviewed the disclosure about the Sub-Adviser contained in
the Fund's registration statement and represents and warrants that, with respect
to such disclosure about the Sub-Adviser or information related, directly or
indirectly, to the Sub-Adviser, such registration statement contains, as of the
date hereof, no untrue statement of any material fact and does not omit any
statement of a material fact which is required to be stated therein or necessary
to make the statements contained therein not misleading.
The Sub-Adviser agrees to notify CSAM and the Fund promptly of (i) any statement
about the Sub-Adviser contained in the Fund's registration statement that
becomes untrue in any material respect, (ii) any omission of a material fact
about the Sub-Adviser in the Fund's registration statement which is required to
be stated therein or necessary to make the statements contained therein not
misleading, or (iii) any reorganization or change in the Sub-Adviser, including
any change in its ownership or key employees.
Prior to the Fund or CSAM or any affiliated person (as defined in the 1940 Act,
an "Affiliate") of either using or distributing sales literature or other
promotional material referring to the Sub-Adviser ("Promotional Material"), the
Fund or CSAM, where applicable, shall forward such material to the Sub-Adviser
and shall allow the Sub-Adviser reasonable time to review the material. The
Sub-Adviser will not act unreasonably in its review of Promotional Material and
the Fund or CSAM, where applicable, will use all reasonable efforts to ensure
that all Promotional Material used or distributed by or on behalf of the Fund or
CSAM will comply with the requirements of the Advisers Act, the 1940 Act and the
rules and regulations promulgated thereunder.
The Sub-Adviser has supplied CSAM and the Fund copies of its Form ADV with all
exhibits and attachments thereto and will hereinafter supply CSAM and the Fund,
promptly upon preparation thereof, copies of all amendments or restatements of
such document.
Representations and Warranties
The Sub-Adviser represents and warrants that:
it is a duly registered investment adviser under the Advisers Act, a duly
registered investment adviser in any and all states of the United States in
which the Sub-Adviser is required to be so registered and has obtained all
necessary licenses and approvals in order to perform the services provided in
this Agreement. The Sub-Adviser covenants to maintain all necessary
registrations, licenses and approvals in effect during the term of this
Agreement.
it has read and understands the Prospectus and SAI and warrants that in
investing the Portfolio's assets it will use all reasonable efforts to adhere
to the Portfolio's investment objectives, policies and restrictions contained
therein.
it has adopted a written Code of Ethics in compliance with Rule 17j-1 under the
1940 Act and will provide the Fund with any amendments to such Code.
The Fund represents and warrants that:
it has full power to enter into the terms of this Agreement and to enter into
transactions contemplated by this Agreement and that its entry into the
Agreement nor the exercise by the Sub-Adviser of its discretions or powers
under this Agreement will result in any default under any contract or other
agreement or instrument to which the Fund is a party, or any statute or rule,
regulation or order of any governmental agency or body applicable to the Fund.
information which has been provided to the Sub-Adviser in relation to the Fund's
status, residence and domicile for taxation purposes is complete and correct,
and the Fund agrees to provide any further information properly required by any
competent authority.
it will notify the Sub-Adviser promptly if there is any material change in any
of the above information and will provide such other relevant information as the
Sub-Adviser may reasonably request in order to fulfill its regulatory and
contractual obligations. The Fund acknowledges that a failure to provide such
information may adversely affect the quality of the services that the
Sub-Adviser may provide.
CSAM represents and warrants that it has full power to enter into the terms of
this Agreement and to enter into transactions contemplated by this Agreement and
that neither its entry into the Agreement nor the exercise by the Sub-Adviser of
its discretions or powers under this Agreement will result in any default under
any contract or other agreement or instrument to which CSAM is a party, or any
statute or rule, regulation or order of any governmental agency or body
applicable to CSAM.
Compliance
The Sub-Adviser agrees that it shall promptly notify CSAM and the Fund (i) in
the event that the SEC or any other regulatory authority has censured its
activities, functions or operations; suspended or revoked its registration as
an investment adviser; or has commenced proceedings or an investigation that
may result in any of these actions, (ii) in the event that there is a change
in the Sub-Adviser, financial or otherwise, that adversely affects its ability
to perform services under this Agreement or (iii) upon having a reasonable
basis for believing that, as a result of the Sub-Adviser's investing the
Portfolio's assets, the Portfolio's investment portfolio has ceased to adhere
to the Portfolio's investment objectives, policies and restrictions as stated in
the Prospectus or SAI or is otherwise in violation of applicable law.
CSAM agrees that it shall promptly notify the Sub-Adviser in the event that the
SEC has censured CSAM or the Fund; placed limitations upon any of their
activities, functions or operations; suspended or revoked CSAM's registration as
an investment adviser; or has commenced proceedings or an investigation that may
result in any of these actions.
The Fund and CSAM shall be given access to the records with respect to the
Portfolio of the Sub-Adviser at reasonable times solely for the purpose of
monitoring compliance with the terms of this Agreement and the rules and
regulations applicable to the Sub-Adviser relating to its providing investment
advisory services to the Portfolio, including without limitation records
relating to trading by employees of the Sub-Adviser for their own accounts and
on behalf of other clients. The Sub-Adviser agrees to cooperate with the Fund
and CSAM and their representatives in connection with any such monitoring
efforts.
Books and Records
In compliance with the requirements of Rule 31a-3 under the 1940 Act, the
Sub-Adviser hereby agrees that all records which it maintains for the Fund or
the Portfolio are the property of the Fund and further agrees to surrender
promptly to the Fund any of such records upon request. The Sub-Adviser further
agrees to preserve for the periods prescribed by Rule 31a-2 under the 1940 Act
the records required to be maintained by Rule 31a-1 under the 1940 Act and to
preserve the records required by Rule 204-2 under the Advisers Act for the
period specified therein.
The Sub-Adviser hereby agrees to furnish to regulatory authorities having the
requisite authority any information or reports in connection with services that
the Sub-Adviser renders pursuant to this Agreement which may be requested in
order to ascertain whether the operations of the Portfolio are being conducted
in a manner consistent with applicable laws and regulations.
Provision of Information; Proprietary and Confidential Information
CSAM agrees that it will furnish to the Sub-Adviser information related to or
concerning the Fund or the Portfolio that the Sub-Adviser may reasonably
request.
The Sub-Adviser agrees on behalf of itself and its employees to treat
confidentially and as proprietary information of the Fund all records and other
information relative to the Fund or the Portfolio, CSAM and prior, present or
potential shareholders and not to use such records and information for any
purpose other than performance of its responsibilities and duties hereunder
except after prior notification to and approval in writing of the Fund, which
approval shall not be unreasonably withheld and may not be withheld where the
Sub-Adviser may be exposed to civil or criminal contempt proceedings for failure
to comply or when requested to divulge such information by duly constituted
authorities.
The Sub-Adviser represents and warrants that neither it nor any affiliate will
use the name of the Fund or the Portfolio, CSAM or any of their affiliates in
any prospectus, sales literature or other material in any manner without the
prior written approval of the Fund or CSAM, as applicable.
Standard of Care
The Sub-Adviser shall exercise its best judgment in rendering the services
described herein. The Sub-Adviser shall not be liable for any error of judgment
or mistake of law or for any loss suffered by the Fund or CSAM in connection
with the matters to which this Agreement relates, except that the Sub-Adviser
shall be liable for a loss resulting from a breach of fiduciary duty by the
Sub-Adviser with respect to the receipt of compensation for services; provided
that nothing herein shall be deemed to protect or purport to protect the
Sub-Adviser against any liability to the Fund or CSAM or to shareholders of the
Fund to which the Sub-Adviser would otherwise be subject by reason of willful
misfeasance, bad faith or gross negligence on its part in the performance of
its duties or by reason of the Sub-Adviser's reckless disregard of its
obligations and duties under this Agreement. The Fund and CSAM understand and
agree that the Sub-Adviser may rely upon information furnished to it reasonably
believed by the Sub-Adviser to be accurate and reliable and, except as herein
provided, the Sub-Adviser shall not be accountable for loss suffered by the
Fund or the Portfolio by reason of such reliance of the Sub-Adviser.
Compensation
In consideration of the services rendered pursuant to this Agreement, CSAM will
pay the Sub-Adviser such amounts as the parties may agree upon from time to time
as set forth on Schedule A, as amended from time to time.
Expenses
The Sub-Adviser will bear all expenses in connection with the performance of its
services under this Agreement, which shall not include the Fund's expenses
listed in paragraph 11(b).
The Fund will bear certain other expenses to be incurred in its operation,
including: investment advisory and administration fees; taxes, interest,
brokerage fees and commissions, if any; fees of Trustees of the Fund who are not
officers, directors, or employees of CSAM or the Sub-Adviser or affiliates of
any of them; fees of any pricing service employed to value shares of the Fund;
SEC fees, state Blue Sky qualification fees and any foreign qualification fees;
charges of custodians and transfer and dividend disbursing agents; the Fund's
proportionate share of insurance premiums; outside auditing and legal expenses;
costs of maintenance of the Fund's existence; costs attributable to investor
services, including, without limitation, telephone and personnel expenses;
costs of preparing and printing prospectuses and statements of additional
information for regulatory purposes and for distribution to existing
shareholders; costs of shareholders' reports and meetings of the shareholders
of the Fund and of the officers or Board of Trustees of the Fund; and any
extraordinary expenses.
Term of Agreement
This Agreement shall commence on the date first written above and shall
continue for an initial two-year period commencing on the date first written
above, and thereafter shall continue automatically for successive annual
periods, provided such continuance is specifically approved at least annually by
(a) the Board of Trustees of the Fund or (b) a vote of a "majority" (as defined
in the 0000 Xxx) of the Portfolio's outstanding voting securities, provided that
in either event the continuance is also approved by a majority of the Board of
Trustees who are not "interested persons" (as defined the 0000 Xxx) of any
party to this Agreement, by vote cast in person at a meeting called for the
purpose of voting on such approval. This Agreement is terminable, without
penalty, (i) by CSAM on 60 (sixty) days' written notice to the Fund and the
Sub-Adviser, (ii) by the Board of Trustees of the Fund or by vote of holders of
a majority of the Portfolio's shares on 60 (sixty) days' written notice to CSAM
and the Sub-Adviser, or (iii) by the Sub-Adviser upon 60 (sixty) days' written
notice to the Fund and CSAM. This Agreement will also terminate automatically
in the event of its assignment (as defined in the 0000 Xxx) by any party hereto.
In the event of termination of this Agreement for any reason, all records
relating to the Fund or the Portfolio kept by the Sub-Adviser shall promptly be
returned to CSAM or the Fund, free from any claim or retention of rights in such
records by the Sub-Adviser. In the event this Agreement is terminated or is not
approved in the foregoing manner, the provisions contained in paragraph numbers
4(c), 7, 8 and 9 shall remain in effect.
Amendments
No provision of this Agreement may be changed, waived, discharged or terminated
orally, but only by an instrument in writing signed by the party against which
enforcement of the change, waiver, discharge or termination is sought, and no
amendment of this Agreement shall be effective until approved by an affirmative
vote of (a) the holders of a majority of the outstanding voting securities of
the Portfolio and (b) the Board of Trustees of the Fund, including a majority
of Trustees who are not "interested persons" (as defined in the 0000 Xxx) of
the Fund or of either party to this Agreement, by vote cast in person at a
meeting called for the purpose of voting on such approval, if such approval is
required by applicable law.
Notices
All communications hereunder shall be given (a) if to the Sub-Adviser, to Credit
Suisse Asset Management Limited, 3-1 Toranomon 4-chome, Minato-ku, Tokyo Japan
(Attention: Xxxxxx Xxxxxx), telephone: 00-0-0000-0000, telecopy: 00-0-0000-0000,
(b) if to CSAM, to Credit Suisse Asset Management, LLC, 000 Xxxxxxxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000 3147 (Attention: Xxx Xxxxxx), telephone:
(000) 000-0000, telecopy: (000) 000-0000, and (c) if to the Fund, c/o Credit
Suisse Funds, 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000-0000, telephone:
(000) 000-0000, telecopy: (000) 000-0000 (Attention: President).
The Sub-Adviser may rely on, and act without further enquiry upon, any
instruction, notice or request of any person(s) who is or who the Sub-Adviser
reasonably believes in good faith to be person(s) designated by CSAM or the
Fund to give such instruction, notice or request, and further provided that
such instruction, notice or request is made in writing and sent by original
signed letter, facsimile or electronic means in accordance with the provisions
of Clause 14.1.
CSAM and the Fund will provide a list of person(s) who are authorized to give
instructions and sign documents and take other actions in respect of the
Assets. CSAM or the Fund shall notify the Sub-Adviser promptly of any amendment
to such list and provide specimen signatures of new signatories, and the
Sub-Adviser shall accept any such amendments.
Choice of Law
This Agreement shall be governed by, and construed in accordance with, the laws
of the State of New York in the United States, including choice of law
principles; provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act, the Advisers Act or any applicable rules,
regulations or orders of the SEC.
Miscellaneous
The captions of this Agreement are included for convenience only and in no way
define or limit any of the provisions herein or otherwise affect their
construction or effect.
If any provision of this Agreement shall be held or made invalid by a court
decision, by statute or otherwise, the remainder of this Agreement shall not be
affected thereby and, to this extent, the provisions of this Agreement shall be
deemed to be severable.
Nothing herein shall be construed to make the Sub-Adviser an agent of CSAM or
the Fund.
This Agreement may be executed in counterparts, with the same effect as if the
signatures were upon the same instrument.
Japanese Regulatory Matters
The Sub-Adviser is regulated by the Financial Services Agency ("FSA") in
carrying out its investment business and is also subject to applicable local
laws and regulation.
Limitation of Liability
It is expressly agreed that this Agreement was executed by or on behalf of the
Fund and not by the Trustees of the Fund or its officers individually, and the
obligations of the Fund hereunder shall not be binding upon any of the Trustees,
shareholders, nominees, officers, agents or employees of the Fund individually,
but bind only the assets and property of the Fund, as provided in the Agreement
and Declaration of Trust of the Fund. The execution and delivery of this
Agreement have been authorized by the Trustees and the shareholders of the
Portfolio and signed by an authorized officer of the Fund, acting as such, and
neither such authorization by such Trustees and shareholders nor such execution
and delivery by such officer shall be deemed to have been made by any of them
individually or to impose any liability on any of them personally, but shall
bind only the trust property of the Fund as provided in its Agreement and
Declaration of Trust.
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[signature page follows]
Please confirm that the foregoing is in accordance with your understanding by
indicating your acceptance hereof at the place below indicated, whereupon it
shall become a binding agreement between us.
Very truly yours,
CREDIT SUISSE ASSET MANAGEMENT, LLC
By: /s/Xxx Xxxxxx
Name: Xxx Xxxxxx
Title: Managing Director
CREDIT SUISSE TRUST
(Global Technology Portfolio)
By: /s/Xxx Xxxxxx
Name: Xxx Xxxxxx
Title: Vice President and Secretary
CREDIT SUISSE ASSET
MANAGEMENT LIMITED
By: /s/Xxxxxx Xxxxxx
Name: Xxxxxx Xxxxxx
Title: Representative Director
Date: May 10, 2002
SCHEDULE A
CSAM will pay the Sub-Adviser a fee of $250,000 (the "Total Fee"), one quarter
of which shall be payable in U.S. dollars in arrears on the last business day of
each calendar quarter. The fee for the first period during which this Agreement
is in effect shall be pro-rated for the portion of the calendar quarter that the
Agreement is in effect. The Total Fee shall be an aggregate fee paid for
services rendered with respect to this Fund and such other Credit Suisse Funds
for which the Sub-Adviser has been appointed as such and which CSAM and the Sub
Adviser agree will be governed by this fee schedule.
