FUND OF FUNDS INVESTMENT AGREEMENT
Exhibit (h)(4)(xi)
FUND OF FUNDS INVESTMENT AGREEMENT
This Fund of Funds Investment Agreement (this “Agreement”), dated as of January 19, 2022 (the “Effective Date”), is made among Transamerica Funds, Transamerica Series Trust and Transamerica ETF Trust, on behalf of their series listed on Schedule A, severally and not jointly (each, the “Acquiring Fund”), and The Select Sector SPDR Trust, on behalf of each of its series listed on Schedule B, severally and not jointly (each, the “Acquired Fund” and together with the Acquiring Funds, the “Funds”).
WHEREAS, each Fund is registered with the U.S. Securities and Exchange Commission (“SEC”) as an investment company under the Investment Company Act of 1940, as amended, (the “1940 Act”);
WHEREAS, Section 12(d)(1)(A) of the 1940 Act limits the extent to which a registered investment company may invest in shares of other registered investment companies and Section 12(d)(1)(B) limits the extent to which a registered investment company, its principal underwriter or registered brokers or dealers may knowingly sell shares of such registered investment company to other investment companies;
WHEREAS, Rule 12d1-4 under the 1940 Act (the “Rule”) permits registered investment companies, such as the Acquiring Fund, to invest in shares of other registered investment companies, such as the Acquired Fund, in excess of the limits of Section 12(d)(1) of the 1940 Act subject to compliance with the conditions of the Rule; and
WHEREAS, the Acquiring Fund may, from time to time, invest in shares of one or more Acquired Funds in excess of the limitations of Section 12(d)(1)(A) in reliance on the Rule;
NOW THEREFORE, in accordance with the Rule, the Acquiring Fund and the Acquired Fund desire to set forth the following terms pursuant to which the Acquiring Fund may invest in the Acquired Fund in reliance on the Rule.
1. Terms of Investment
(a) In order to help reasonably address the risk of undue influence on the Acquired Fund by the Acquiring Fund, and to assist the Acquired Fund’s investment adviser with making the required findings under the Rule, the Acquiring Fund and the Acquired Fund agree as follows:
(i) Redemptions. The Acquiring Fund acknowledges and agrees that it is not an Authorized Participant, as defined in Rule 6c-11 under the 1940 Act, and has no ability to directly redeem shares from the Acquired Fund.
(ii) Scale of investment. Upon a reasonable request by the Acquired Fund, the Acquiring Fund will provide summary information regarding the anticipated timeline of its investment in the Acquired Fund and the scale of its contemplated investments in the Acquired Fund. The Acquired Fund acknowledges and agrees that any information provided pursuant to the foregoing is not a commitment to purchase and constitutes an estimate that may differ materially from the amount, timing and manner in which a purchase order is submitted, if any.
(b) In order to assist the Acquiring Fund’s investment adviser with evaluating the complexity of the structure and fees and expenses associated with an investment in the Acquired Fund, the Acquired Fund shall provide the Acquiring Fund with information on the fees and expenses of the Acquired Fund reasonably requested by the Acquiring Fund with reference to the Rule. Such fee and expense information shall be limited to that which is made publicly available by the Acquired Fund.
(c) The agreements contained in paragraphs 1(a)(ii) and 1(b) apply only with respect to an investment by the Acquiring Fund in the Acquired Fund that exceeds the limits in Section 12(d)(1)(A)(i) of the 1940 Act.
2. Covenants of the Acquired Fund
(a) In connection with any investment by the Acquiring Fund in the Acquired Fund in excess of the limitations in Section 12(d)(1)(A), the Acquired Fund agrees to: (i) comply with all conditions of the Rule, as interpreted or modified by the SEC or its Staff from time to time, applicable to the Acquired Fund; (ii) comply with its obligations under this Agreement; and (iii) promptly notify the Acquiring Fund if the Acquired Fund fails to comply with the Rule with respect to an investment by the Acquiring Fund, as interpreted or modified by the SEC or its Staff from time to time, or this Agreement.
(b) The Acquired Fund agrees that any information regarding planned purchases or sales of shares of the Acquired Fund provided pursuant to Section 1 will be treated confidentially, used solely for the purposes of this Agreement, and will not be disclosed to any third party without the prior consent of the Acquiring Fund, except for directors/trustees, officers, employees, accountants, legal counsel, investment advisers and other advisers of the Acquired Fund and its affiliates on a need-to-know basis and solely for the purposes of this Agreement.
3. Covenants of the Acquiring Fund.
(a) In connection with any investment by the Acquiring Fund in the Acquired Fund in excess of the limitations in Section 12(d)(1)(A), the Acquiring Fund agrees to: (i) comply with all conditions of the Rule, as interpreted or modified by the SEC or its Staff from time to time, applicable to Acquiring Fund; (ii) comply with its obligations under this Agreement; and (iii) promptly notify the Acquired Fund if the Acquiring Fund fails to comply with the Rule with respect to its investment in the Acquired Fund, as interpreted or modified by the SEC or its Staff from time to time, or this Agreement.
(b) Any of the provisions of this Agreement notwithstanding, the Acquiring Fund represents and warrants to the Acquired Fund that it operates, and will continue to operate, in compliance with the 1940 Act, and the SEC’s rules and regulations thereunder. The Acquiring Fund agrees that the Acquired Fund is entitled to rely on the representations contained in this Agreement and that the Acquired Fund has no independent duty to monitor the Acquiring Fund’s or its investment adviser’s or, if applicable, its subadviser’s compliance with this Agreement, the 1940 Act, or the SEC’s rules and regulations thereunder.
(c) The Acquiring Fund shall provide the Acquired Fund with information regarding the amount of the Acquiring Fund’s investments in the Acquired Fund upon the Acquired Fund’s reasonable request.
(d) Notwithstanding anything herein to the contrary, to the extent the Acquiring Fund, the investment adviser to the Acquiring Fund or, if applicable, the subadviser to the Acquiring Fund has an “affiliated person” (as defined under the 1940 Act) that is: (i) a broker-dealer, (ii) a broker-dealer or bank that borrows as part of a securities lending program, or (iii) a futures commission merchant or a swap dealer, the Acquiring Fund will: (a) not make an investment in the Acquired Fund that causes the Acquiring Fund to hold 5% or more of the Acquired Fund’s total outstanding voting securities without prior approval from the Acquired Fund, and (b) notify the Acquired Fund if any investment by the Acquiring Fund that complied with (a) at the time of purchase no longer
4. Notices
All notices, including all information that either party is required to provide under the terms of this Agreement and the Rule, shall be in writing and shall be delivered by registered or overnight mail, facsimile, or electronic mail to the address for each party specified below.
| If to the Acquiring Fund: | If to the Acquired Fund: | |
| Compliance Department
c/o Transamerica Asset Management, Inc.
0000 Xxxxxxxxxx Xx.
Xxxxxx, XX 00000
Email: xxxxxxxxxxxxxxxxxxxx@xxxxxxxxxxxx.xxx
With a copy to:
Transamerica Asset Management, Inc.
Attn: Legal Dept.
0000 Xxxxxxxxxx Xx.
Xxxxxx, XX 00000
Email: XXXXxxxxXxxxxxx@xxxxxxxxxxxx.xxx |
State Street Global Advisors
Xxx Xxxx Xxxxxx
Xxxxxx, XX 00000
Attn: Global Funds Management
Email: XxxXxXXxxx@XXXX.xxx
With a copy to:
State Street Global Advisors
Xxx Xxxx Xxxxxx
Xxxxxx, XX 00000
Attn: Legal Department
Email: XxxXxXXxxx@XXXX.xxx | |
5. Term and Termination; Assignment; Amendment
(a) This Agreement shall be effective for the duration of the Acquired Fund’s and the Acquiring Fund’s reliance on the Rule, as interpreted or modified by the SEC or its Staff from time to time. While the terms of the Agreement shall only be applicable to investments in Funds made in reliance on the Rule, as interpreted or modified by the SEC or its Staff from time to time, the Agreement shall continue in effect until terminated.
(b) This Agreement shall continue until terminated in writing: (i) by either party upon sixty (60) days’ notice to the other party; or (ii) in the event of a material breach of this Agreement, upon written notice to the breaching party, which may be given in the sole discretion of the non-breaching party. Upon termination of this Agreement, the Acquiring Fund may not purchase additional shares of the Acquired Fund beyond the Section 12(d)(1)(A) limits in reliance on the Rule.
(c) This Agreement is binding upon and inures to the benefit of the parties hereto and their respective successors and assigns. This Agreement may not be assigned by either party without the prior written consent of the other. Any purported assignment of rights in violation of this Section is void.
(d) This Agreement may be amended only by a writing that is signed by each affected party.
(e) In any action involving the Acquiring Fund under this Agreement, the Acquired Fund agrees to look solely to the individual Acquiring Fund that is involved in the matter in controversy and not to any of the other Acquiring Funds.
(f) In any action involving the Acquired Fund under this Agreement, the Acquiring Fund agrees to look solely to the individual Acquired Fund that is involved in the matter in controversy and not to any of the other Acquired Funds.
(g) The Acquiring Fund and the Acquired Fund may file a copy of this Agreement with the SEC or any other regulatory body if required by applicable law.
6. Indemnification
(a) Each Fund (an “Indemnifying Fund”), severally and not jointly, agrees to hold harmless, indemnify and defend each other Fund (an “Indemnitee Fund”), including any principals, directors or trustees, officers, employees and agents (“Agents”) of the Indemnitee Fund, against and from any and all losses, costs, expenses and liabilities incurred by or claims or actions (“Claims”) asserted against the Indemnitee Fund, including any of its Agents, to the extent such Claims result from a violation of any provision of this Agreement by the Indemnifying Fund or its Agents or result from any willful misfeasance, bad faith, reckless disregard or gross negligence of the Indemnifying Fund or its Agents in the performance of any of its duties or obligations hereunder. Any indemnification pursuant to this Section shall include any reasonable counsel fees and expenses incurred in connection with investigating and/or defending the applicable Claims. Notwithstanding the foregoing, the Indemnifying Fund shall not be responsible for any Claim
against the Indemnitee Fund or its Agents to the extent such Claim results from a violation of any provision of this Agreement by the Indemnitee Fund or its Agents or results from any willful misfeasance, bad faith, reckless disregard or gross negligence of the Indemnitee Fund or its Agents in the performance of any of its duties or obligations hereunder. This Section shall survive any termination of this Agreement.
(b) Any liability pursuant to the forgoing provision shall be several and not joint. In any action involving the parties under this Agreement, the parties agree to look solely to the individual Acquiring Fund(s) or Acquired Fund(s) that is/are involved in the matter in controversy and not to any other Acquiring Fund or Acquired Fund.
7. Additional Funds
In the event that any party wishes to include one or more series in addition to those originally set forth on Schedule A or Schedule B (each such series a “New Fund”), such party shall so notify the other party in writing, and, upon written agreement, each New Fund shall hereunder become an Acquiring Fund or an Acquired Fund, as the case may be, and Schedule A or Schedule B, as appropriate, shall be amended accordingly.
8. Severability
If any provision of this Agreement is determined to be invalid, illegal or unenforceable, the remaining provisions of this Agreement remain in full force and effect, if the essential terms and conditions of this Agreement for both parties remain valid, legal and enforceable.
9. Governing Law
(a) This Agreement shall be construed in accordance with the laws of the Commonwealth of Massachusetts.
(b) In the case of the Acquired Fund, a copy of the Declaration of Trust of The Select Sector SPDR Trust is on file with the Secretary of the Commonwealth of Massachusetts, and notice is hereby given that no trustee, officer, employee, agent, employee or shareholder of the Acquired Fund shall have any personal liability under this Agreement, and that this Agreement is binding only upon the assets and property of the Acquired Fund.
10. Consequential Damages
Under no circumstances will any party to this Agreement be liable to any person, including without limitation any other party to this Agreement, for any special, indirect or consequential loss or damages resulting from any act or failure to act in accordance with the provision of this Agreement, even if such party had been advised of the possibility of such loss or damages.
11. Entire Agreement
(a) This Agreement contains the entire understanding and agreement of the parties. This Agreement may be executed in two or more counterparts, each of which when so executed shall be deemed to be an original, but such counterparts shall together constitute one and the same document.
(b) The execution of this Agreement shall be deemed to constitute the termination as of the Effective Date of any and all prior agreements between the Acquiring Fund and the Acquired Fund that relates to the investment by any Acquiring Fund in any Acquired Fund in reliance on a participation agreement, exemptive order or other arrangement among the parties intended to permit investments beyond the statutory limits of Section 12(d)(1)(A) and (B) of the 1940 Act (the “Prior Section 12 Agreements”). The parties hereby waive any notice provisions, conditions to termination, or matters otherwise required to terminate such Prior Section 12 Agreements.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
THE SELECT SECTOR SPDR TRUST
(on behalf each of its series listed on Schedule B, severally and not jointly)
| By: | /s/ Xxx X. Xxxxxxxxx | |
| Name: | Xxx X. Xxxxxxxxx | |
| Title: | Deputy Treasurer |
[Remainder of page intentionally left blank; Acquiring Fund signature page follows]
Transamerica Series Trust
(each on behalf of their series listed on Schedule A, severally and not jointly)
| By: | /s/ Xxxxxxxxxxx X. Xxxxxxx | |
| Name: | Xxxxxxxxxxx X. Xxxxxxx | |
| Title: | Vice President and Chief Investment Officer, Advisory Services |
Transamerica ETF Trust
(on behalf of its series listed on Schedule A, severally and not jointly)
| By: | /s/ Xxxxxxxxxxx X. Xxxxxxx | |
| Name: | Xxxxxxxxxxx X. Xxxxxxx | |
| Title: | Vice President and Chief Investment Officer |
SCHEDULE A
List of Acquiring Fund(s) to Which the Agreement Applies
Acquiring Funds
| Transamerica ClearTrack 2015 |
| Transamerica ClearTrack 2020 |
| Transamerica ClearTrack 2025 |
| Transamerica ClearTrack 2030 |
| Transamerica ClearTrack 2035 |
| Transamerica ClearTrack 2040 |
| Transamerica ClearTrack 2045 |
| Transamerica ClearTrack 2050 |
| Transamerica ClearTrack 2055 |
| Transamerica ClearTrack 2060 |
| Transamerica ClearTrack Retirement Income |
| Transamerica Asset Allocation Intermediate Horizon |
| Transamerica Asset Allocation Long Horizon |
| Transamerica Asset Allocation Short Horizon |
| Transamerica Asset Allocation – Conservative Portfolio |
| Transamerica Asset Allocation – Growth Portfolio |
| Transamerica Asset Allocation – Moderate Growth Portfolio |
| Transamerica Asset Allocation – Moderate Portfolio |
| Transamerica Balanced II |
| Transamerica Bond |
| Transamerica Capital Growth |
| Transamerica Core Bond |
| Transamerica Emerging Markets Debt |
| Transamerica Emerging Markets Opportunities |
| Transamerica Energy Infrastructure |
| Transamerica Floating Rate |
| Transamerica Government Money Market |
| Transamerica High Quality Bond |
| Transamerica High Yield Bond |
| Transamerica High Yield ESG |
| Transamerica High Yield Muni |
| Transamerica Inflation Opportunities |
| Transamerica Inflation-Protected Securities |
| Transamerica Intermediate Bond |
| Transamerica Intermediate Muni |
| Transamerica International Equity |
| Transamerica International Focus |
| Transamerica International Small Cap Value |
| Transamerica International Stock |
| Transamerica Large Cap Value |
| Transamerica Large Core |
| Transamerica Large Growth |
| Transamerica Large Value Opportunities |
| Transamerica Mid Cap Growth |
| Transamerica Mid Cap Value |
| Transamerica Mid Cap Value Opportunities |
| Transamerica Multi-Asset Income |
| Transamerica Multi-Managed Balanced |
| Transamerica Short-Term Bond |
| Transamerica Small Cap Growth |
| Transamerica Small Cap Value |
| Transamerica Small/Mid Cap Value |
| Transamerica Stock Index |
| Transamerica Sustainable Bond |
| Transamerica Sustainable Equity Income |
| Transamerica Total Return |
| Transamerica Unconstrained Bond |
| Transamerica US Growth |
TRANSAMERICA SERIES TRUST:
| Transamerica BlackRock Government Money Market VP |
| Transamerica BlackRock iShares Active Asset Allocation – Conservative VP |
| Transamerica BlackRock iShares Active Asset Allocation – Moderate Growth VP |
| Transamerica BlackRock iShares Active Asset Allocation – Moderate VP |
| Transamerica BlackRock iShares Dynamic Allocation – Balanced VP |
| Transamerica BlackRock iShares Dynamic Allocation – Moderate Growth VP |
| Transamerica BlackRock iShares Edge 40 VP |
| Transamerica BlackRock iShares Edge 50 VP |
| Transamerica BlackRock iShares Edge 75 VP |
| Transamerica BlackRock iShares Edge 100 VP |
| Transamerica BlackRock Tactical Allocation VP |
| Transamerica Xxxxxxx Xxxxx 70/30 Allocation VP |
| Transamerica International Focus VP |
| Transamerica Janus Balanced VP |
| Transamerica Janus Mid-Cap Growth VP |
| Transamerica JPMorgan Asset Allocation – Conservative VP |
| Transamerica JPMorgan Asset Allocation – Growth VP |
| Transamerica JPMorgan Asset Allocation – Moderate Growth VP |
| Transamerica JPMorgan Asset Allocation – Moderate VP |
| Transamerica JPMorgan Core Bond VP |
| Transamerica JPMorgan Enhanced Index VP |
| Transamerica JPMorgan International Moderate Growth VP |
| Transamerica JPMorgan Mid Cap Value VP |
| Transamerica JPMorgan Tactical Allocation VP |
| Transamerica Madison Diversified Income VP |
| Transamerica Managed Risk – Balanced ETF VP |
| Transamerica Managed Risk – Conservative ETF VP |
| Transamerica Managed Risk – Growth ETF VP |
| Transamerica Market Participation Strategy VP |
| Transamerica Xxxxxx Xxxxxxx Capital Growth VP |
| Transamerica Xxxxxx Xxxxxxx Global Allocation VP |
| Transamerica Xxxxxx Xxxxxxx Global Allocation Managed Risk – Balanced VP |
| Transamerica MSCI EAFE Index VP |
| Transamerica Multi-Managed Balanced VP |
| Transamerica PIMCO Tactical – Balanced VP |
| Transamerica PIMCO Tactical – Conservative VP |
| Transamerica PIMCO Tactical – Growth VP |
| Transamerica PIMCO Total Return VP |
| Transamerica PineBridge Inflation Opportunities VP |
| Transamerica ProFund UltraBear VP |
| Transamerica Rothschild & Co Large Cap Value VP |
| Transamerica S&P 500 Index VP |
| Transamerica Small/Mid Cap Value VP |
| Transamerica X. Xxxx Price Small Cap VP |
| Transamerica TS&W International Equity VP |
| Transamerica WMC US Growth VP |
TRANSAMERICA ETF TRUST:
DeltaShares S&P 400 Managed Risk ETF
DeltaShares S&P 500 Managed Risk ETF
DeltaShares S&P 600 Managed Risk ETF
DeltaShares S&P International Managed Risk ETF
DeltaShares S&P EM 100 & Managed Risk ETF
SCHEDULE B
List of Acquired Funds to Which the Agreement Applies
Acquired Funds
| Fund Name |
Ticker |
Trust Name | ||
| The Communication Services Select Sector SPDR Fund | XLC | The Select Sector SPDR Trust | ||
| The Consumer Discretionary Select Sector SPDR Fund | XLY | The Select Sector SPDR Trust | ||
| The Consumer Staples Select Sector SPDR Fund | XLP | The Select Sector SPDR Trust | ||
| The Energy Select Sector SPDR Fund | XLE | The Select Sector SPDR Trust | ||
| The Financial Select Sector SPDR Fund | XLF | The Select Sector SPDR Trust | ||
| The Health Care Select Sector SPDR Fund | XLV | The Select Sector SPDR Trust | ||
| The Industrial Select Sector SPDR Fund | XLI | The Select Sector SPDR Trust | ||
| The Materials Select Sector SPDR Fund | XLB | The Select Sector SPDR Trust | ||
| The Real Estate Select Sector SPDR Fund | XLRE | The Select Sector SPDR Trust | ||
| The Technology Select Sector SPDR Fund | XLK | The Select Sector SPDR Trust | ||
| The Utilities Select Sector SPDR Fund | XLU | The Select Sector SPDR Trust |
