Exhibit (d9)
COLUMBIA FUNDS INSTITUTIONAL TRUST
FORM OF INVESTMENT ADVISORY CONTRACT
This Agreement is made the __ day of ____________, 2006 between COLUMBIA
FUNDS INSTITUTIONAL TRUST, a Massachusetts business trust, (the "Trust") and
COLUMBIA MANAGEMENT ADVISORS, LLC, a Delaware limited liability company (the
"Adviser"). The Trust is registered as an open-end investment company pursuant
to the Investment Company Act of 1940 (the "Act"). The Adviser is registered as
an investment adviser pursuant to the Investment Advisers Act of 1940. The Trust
has established certain series of shares set forth in Section 3 of this
Agreement (each a "Fund", collectively the "Funds") and this Agreement relates
to services to be performed by the Adviser with respect to the Funds.
AGREEMENT
Now, therefore, in consideration of the promises in this Agreement, the
parties agree as follows:
1. DUTIES OF ADVISER. With respect to each of the Funds, the Adviser shall
regularly provide the Trust with research, advice, and supervision with respect
to investment matters and shall furnish continuously an investment program,
determining what securities shall be purchased or sold and what portion of the
Trust's assets shall be held invested or uninvested, subject always to the
provisions of the Act and the Trust's Declaration of Trust and Bylaws, and
amendments thereto, which amendments shall be furnished to the Adviser by the
Trust. The Adviser shall take any steps necessary or appropriate to carry out
its decisions in regard to the foregoing matters and the general conduct of the
business of the Trust. The Adviser may take into consideration receipt of
research and statistical information and other services rendered to the Trust in
the allocation of commissions from portfolio brokerage business.
2. ALLOCATION OF CHARGES AND EXPENSES.
(a) With respect to the Funds, the Adviser shall pay all operating
costs and expenses of the Funds (other than those described in subsection (b)
below, which shall be paid by the Trust) including custodian fees, transfer
agent fees, legal fees for the Funds, accounting expenses (other than auditing
fees), and governmental fees, cost of stock certificates, and any other expenses
(including clerical expenses) of issue, sale, repurchase, or redemption of
shares, expenses of registering or qualifying shares for sale, transfer taxes,
and all expenses of preparing the Trust's registration statement and prospectus,
and the cost of printing and delivering to shareholders prospectuses and
reports, all executive salaries and executive expenses, office rent of the
Trust, ordinary office expenses (other than the expense of clerical services
relating to the administration of the Trust), and for any other expenses that,
if otherwise borne by the Trust, would cause the Trust to "be deemed to be
acting as a distributor of securities of which it is the issuer, other than
through an underwriter" pursuant to Rule 12b-1 under the Act, of each class of
each series. The Adviser shall provide investment advisory, statistical, and
research facilities
and all clerical services relating to research, statistical, and investment work
with respect to each of the Funds.
(b) The Trust shall not be required to pay any expenses of the Trust
other than the following: disinterested trustees fees and expenses, including
their legal counsel, auditing expenses, interest incurred on borrowing by a
Fund, if any, portfolio transaction expenses, taxes and extraordinary expenses
of the Funds.
3. COMPENSATION OF THE ADVISER.
(a) For services to be rendered, the facilities to be furnished, and
the payments to be made by the Adviser, as provided in Sections 1 and 2 of this
Agreement, for each calendar month the Trust shall pay, on behalf of each of the
Funds, to the Adviser a management fee computed at the annual rate set forth
below based on the applicable Fund's daily net assets:
NAME OF FUND APPLICABLE FEE RATE
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CMG Enhanced S&P 500 Index Fund 0.25%
CMG Large Cap Growth Fund 0.50%
CMG Large Cap Value Fund 0.50%
CMG Mid Cap Growth Fund 0.70%
CMG Mid Cap Value Fund 0.70%
CMG Small Cap Value Fund 0.80%
CMG Emerging Markets Equity Fund 0.90%
CMG Core Plus Bond Fund 0.00%
CMG Government Bond Fund 0.25%
CMG Corporate Bond Fund 0.25%
CMG Mortgage and Asset-Backed Securities Fund 0.25%
If the asset value is not required to be determined on any particular business
day, then for the purposes of this Section 3, the asset value of a share as last
determined shall be deemed to be the asset value of a share as of the close of
business on that day. If there is no business day in any calendar month, the fee
shall be computed on the basis of the asset value of a share as last determined,
multiplied by the average number of shares outstanding on the last day of the
month.
(b) If the Board of Trustees of the Trust determines to issue any
additional series or any classes of shares of any Fund for which it is proposed
that the Adviser serve as investment manager, the Trust and the Adviser may
enter into an Addendum to this Agreement
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setting forth the name of the series, the applicable fee and such other terms
and conditions as are applicable to the management of such series of shares.
4. COVENANTS OF THE ADVISER. In connection with purchases or sales of
portfolio securities for the account of a Fund, neither the Adviser nor any
officer, director, or employee of the Adviser shall act as a principal. The
Adviser covenants that it and its employees will comply with investment
restrictions of the Trust's Bylaws applicable to them. If the Adviser or any of
its affiliates give any advice to clients concerning the shares of any of the
Funds, it will act solely as investment counsel for the clients and not on
behalf of the Trust.
5. LIMITATION ON LIABILITY OF ADVISER. The Adviser shall not be liable for
any error of judgment or mistake of law or for any loss suffered by a Fund in
connection with the matters to which this agreement relates, except a loss
resulting from willful malfeasance, bad faith, or gross negligence on the part
of the Adviser in the performance of its duties or from reckless disregard by
the Adviser of its obligations and duties under this Agreement. The federal
securities laws impose liabilities under certain circumstances on persons who
act in good faith, and therefore nothing herein shall in any way constitute a
waiver or limitation of any rights which the Trust may have under any federal
securities laws.
6. DURATION AND TERMINATION OF THIS AGREEMENT.
(a) This Agreement shall remain in force for two years from the date
hereof, and it may be continued from year to year thereafter if approved
annually by a vote of a majority of the Trust's shareholders or by its trustees
and in either case a vote of a majority of the trustees who are not parties to
this Agreement or interested persons of any such party cast in person at a
meeting called for the purpose of voting on such approval.
(b) This Agreement may be terminated at any time without the payment
of any penalty by vote of the trustees of the Trust, by vote of a majority of
the outstanding shares of a Fund (with respect to that series of the Trust), or
by the Adviser, on 60 days written notice to the other party.
(c) This Agreement shall automatically terminate if it is assigned.
The Adviser shall notify the Trust of any change in the officers or directors of
the Adviser within a reasonable time after the change. The terms "assignment,"
"vote of a majority of the outstanding voting securities," and "interested
persons" shall have the meanings specified in the Act.
7. APPLICABLE TO SPECIFIC FUNDS. The Adviser agrees that, with respect to
any obligation of the Trust under this Agreement, the Adviser shall look only to
the assets of the Fund to which the obligation relates.
8. SUBCONTRACTS. In rendering the services to be provided pursuant to this
Agreement, the Adviser may in its discretion, from time to time, engage or
associate itself with such persons or entities as it determines is necessary or
convenient and contract with such persons or entities to obtain information,
investment advisory and management services, or such other services as the
Adviser deems appropriate. Any fees, compensation or expenses to be paid to any
such person or entity shall be paid by the Adviser, and no obligation to such
person or entity shall be incurred on behalf of the Trust. Any arrangement
entered into pursuant to this
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paragraph shall, to the extent required by law, be subject to the approval of
the Trustees of the Trust, including a majority of the independent trustees, and
the shareholders of the Trust.
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IN WITNESS WHEREOF the parties have caused this Agreement to be executed as
of the day and year first written above.
COLUMBIA FUNDS INSTITUTIONAL TRUST
By:
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Title:
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COLUMBIA MANAGEMENT ADVISORS, LLC
By:
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Title:
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A copy of the document establishing the Trust is filed with the Secretary of The
Commonwealth of Massachusetts. This Agreement is executed by officers not as
individuals and is not binding upon any of the Trustees, officers or
shareholders of the Trust individually but only upon the assets of the Fund.
