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Exhibit 99(g)(iii)
FOREIGN CUSTODY MANAGER AGREEMENT
AGREEMENT made as of October 29, 1999, between Xxxxxxxx Funds (the
"Fund"), on behalf of one of its Series, Xxxxxxxx International Equity Fund, and
The Bank of New York ("BNY").
W I T N E S S E T H:
WHEREAS, the Fund desires to appoint BNY as a Foreign Custody Manager
on the terms and conditions contained herein;
WHEREAS, BNY desires to serve as a Foreign Custody Manager and perform
the duties set forth herein on the terms and condition contained herein;
NOW THEREFORE, in consideration of the mutual promises hereinafter
contained in this Agreement, the Fund and BNY hereby agree as follows:
ARTICLE I.
DEFINITIONS
Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the following meanings:
1. "BOARD" shall mean the board of directors or board of trustees, as
the case may be, of the Fund.
2. "ELIGIBLE FOREIGN CUSTODIAN" shall have the meaning provided in the
Rule.
3. "MONITORING SYSTEM" shall mean a system established by BNY to
fulfill the Responsibilities specified in clauses l(d) and l(e) of Artic1e III
of this Agreement.
4. "QUALIFIED FOREIGN BANK" shall have the meaning provided in the
Rule.
5. "RESPONSIBILITIES" shall mean the responsibilities delegated to BNY
as a Foreign Custody Manager with respect to each Specified County and each
Eligible Foreign Custodian selected by BNY , as such responsibilities are more
fully described in Article III of this Agreement.
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6. "RULE" shall mean Rule 17f-5 under the Investment Company Act of
1940, as amended, as such Rule became effective on June 16, 1997.
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7. "SECURITIES DEPOSITORY" shall mean any securities depository or
clearing agency within the meaning of Section (a)(1)(ii) or (a)(l)(iii) of the
Rule.
8. "SPECIFIED COUNTRY" shall mean each country listed on Schedule I
attached hereto and each country, other than the United States, constituting the
primary market for a security with respect to which the Fund has given
settlement instructions to The Bank of New York as custodian (the "Custodian")
under its Custody Agreement with the Fund.
ARTICLE II.
BNY AS A FOREIGN CUSTODY MANAGER
1. The Fund on behalf of its Board hereby delegates to BNY with respect
to each Specified Country the Responsibilities.
2. BNY accepts the Board's delegation of Responsibilities with respect
to each Specified Country and agrees in performing the Responsibilities as a
Foreign Custody Manager to exercise reasonable care, prudence and diligence such
as a person having responsibility for the safekeeping of the Fund's assets would
exercise.
3. BNY shall provide to the Board at such times as the Board deems
reasonable and appropriate based on the circumstances of the Fund's foreign
custody arrangements written reports notifying the Board of the placement of
assets of the Fund with a particular Eligible Foreign Custodian within a
Specified Country and of any material change in the arrangements (including, in
the case of Qualified Foreign Banks, any material change in any contract
governing such arrangements and in the case of Securities Depositories, any
material change in the established practices or procedures of such Securities
Depositories) with respect to assets of the Fund with any such Eligible Foreign
Custodian.
ARTICLE III.
RESPONSIBILITIES
1.SUBJECT TO THE PROVISIONS OF THIS AGREEMENT, BNY SHALL WITH RESPECT
TO EACH SPECIFIED COUNTRY SELECT AN ELIGIBLE FOREIGN CUSTODIAN. IN CONNECTION
THEREWITH, BNY SHALL: (a) DETERMINE THAT ASSETS OF THE FUND HELD BY SUCH
ELIGIBLE FOREIGN CUSTODIAN WILL BE SUBJECT TO REASONABLE CARE, BASED ON THE
STANDARDS APPLICABLE TO CUSTODIANS IN THE RELEVANT MARKET IN WHICH SUCH ELIGIBLE
FOREIGN CUSTODIAN OPERATES, AFTER CONSIDERING ALL FACTORS RELEVANT TO THE
SAFEKEEPING OF SUCH ASSETS, INCLUDING, WITHOUT LIMITATION, THOSE CONTAINED IN
PARAGRAPH (c)(l) OF THE RULE; (b) DETERMINE THAT THE FUND'S FOREIGN CUSTODY
ARRANGEMENTS WITH EACH QUALIFIED FOREIGN BANK ARE GOVERNED BY A WRITTEN CONTRACT
WITH THE CUSTODIAN (OR, IN THE CASE OF A SECURITIES DEPOSITORY, BY SUCH A
CONTRACT, BY THE RULES OR ESTABLISHED PRACTICES OR PROCEDURES OF THE SECURITIES
DEPOSITORY, OR BY ANY COMBINATION OF THE FOREGOING) WHICH WILL PROVIDE
REASONABLE CARE FOR THE FUND'S ASSETS BASED ON THE STANDARDS SPECIFIED IN
PARAGRAPH (c)(I) OF THE RULE; (c) DETERMINE THAT EACH CONTRACT WITH A QUALIFIED
FOREIGN BANK SHALL INCLUDE THE PROVISIONS SPECIFIED IN PARAGRAPH (c)(2)(i)(A)
THROUGH (F) OF THE RULE OR, ALTERNATIVELY, IN LIEU OF ANY OR ALL OF SUCH
(c)(2)(i)(A) THROUGH (F) PROVISIONS, SUCH OTHER PROVISIONS AS BNY DETERMINES
WILL PROVIDE, IN THEIR ENTIRETY, THE SAME OR A GREATER LEVEL OF CARE AND
PROTECTION FOR THE ASSETS OF THE FUND AS SUCH SPECIFIED PROVISIONS; (d) MONITOR
PURSUANT TO THE MONITORING SYSTEM THE APPROPRIATENESS OF MAINTAINING THE ASSETS
OF THE FUND WITH A PARTICULAR ELIGIBLE FOREIGN CUSTODIAN PURSUANT TO PARAGRAPH
(c)(1)
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OF THE RULE AND IN THE CASE OF A QUALIFIED FOREIGN BANK, ANY MATERIAL CHANGE IN
THE CONTRACT GOVERNING SUCH ARRANGEMENT AND IN THE CASE OF A SECURITIES
DEPOSITORY, ANY MATERIAL CHANGE IN THE ESTABLISHED PRACTICES OR PROCEDURES OF
SUCH SECURITIES DEPOSITORY; AND (e) ADVISE THE FUND WHENEVER AN ARRANGEMENT
(INCLUDING, IN THE CASE OF A QUALIFIED FOREIGN BANK, ANY MATERIAL CHANGE IN THE
CONTRACT GOVERNING SUCH ARRANGEMENT AND IN THE CASE OF A SECURITIES DEPOSITORY,
ANY MATERIAL CHANGE IN THE ESTABLISHED PRACTICES OR PROCEDURES OF SUCH
SECURITIES DEPOSITORY) DESCRIBED IN PRECEDING CLAUSE (d) NO LONGER MEETS THE
REQUIREMENTS OF THE RULE. ANYTHING IN THIS AGREEMENT TO THE CONTRARY
NOTWITHSTANDING, BNY SHALL IN NO EVENT BE DEEMED TO HAVE SELECTED ANY SECURITIES
DEPOSITORY THE USE OF WHICH IS MANDATORY BY LAW OR REGULATION OR BECAUSE
SECURITIES CANNOT BE WITHDRAWN FROM SUCH SECURITIES DEPOSITORY, OR BECAUSE
MAINTAINING SECURITIES OUTSIDE THE SECURITIES DEPOSITORY IS NOT CONSISTENT WITH
PREVAILING CUSTODIAL PRACTICES IN THE RELEVANT MARKET (EACH, A "COMPULSORY
DEPOSITORY"); IT BEING UNDERSTOOD HOWEVER. THAT FOR EACH COMPULSORY DEPOSITORY
UTILIZED OR INTENDED TO BE UTILIZED BY THE FUND, BNY SHALL PROVIDE THE FUND FROM
TIME TO TIME WITH INFORMATION ADDRESSING THE FACTORS SET FORTH IN SECTION (c)(l)
OF THE RULE AND BNY'S OPINIONS WITH RESPECT THERETO SO THAT THE FUND MAY
DETERMINE THE APPROPRIATENESS OF PLACING FUND ASSETS THEREIN.
2. (a) For purposes of Clauses (a) and (b) of preceding Section 1 of
this Article, with respect to Securities Depositories, it is understood that
such determination shall be made on the basis of, and limited by, information
gathered through BNY's subcustodian network, or through publicly available
information otherwise obtained with respect to each such Securities Depository.
(b) For purposes of clause (d) of preceding Section 1 of this
Article, BNY's determination of appropriateness shall not
include, nor be deemed to include, any evaluation of Country
Risks associated with investment in a particular country. For
purposes hereof, "Country Risks" shall mean systemic risks of
holding assets in a particular country including, but not
limited to, (a) the use of Compulsory Depositories, (b) such
country's financial infrastructure, (c) such country's
prevailing custody and settlement practices, (d)
nationalization, expropriation or other governmental actions,
(e) regulation of the banking or securities industry, (f)
currency controls, restrictions, devaluations or fluctuations,
and (g) market conditions which affect the orderly execution
of securities transactions or affect the value of securities.
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ARTICLE IV.
REPRESENTATIONS
1. The Fund hereby represents that: (a) this Agreement has been duly
authorized, executed and delivered by the Fund, constitutes a valid and legally
binding obligation of the Fund enforceable in accordance with its terms, and no
statute, regulation. rule, order, judgment or contract binding on the Fund
prohibits the Fund's execution or performance of this Agreement; (b) this
Agreement has been approved and ratified by the Board at a meeting duly called
and at which a quorum was at all times present; and (c) the Board or its
investment advisor has considered the Country Risks associated with investment
in each Specified Country and will have considered such risks prior to any
settlement instructions being given to the Custodian with respect to any other
Specified Country.
2. BNY hereby represents that: (a) BNY is duly organized and existing
under the laws of the State of New York, with full power to carry on its
businesses as now conducted, and to enter into this Agreement and to perform its
obligations hereunder; (b) this Agreement has been duly authorized, executed and
delivered by BNY, constitutes a valid and legally binding obligation of BNY
enforceable in accordance with its terms, and no statute, regulation, rule,
order, judgment or contract binding on BNY prohibits BNY's execution or
performance of this Agreement; and (c) BNY has established the Monitoring
System.
ARTICLE V.
CONCERNING BNY
1. BNY shall not be liable for any costs, expenses, damages,
liabilities or claims, including attorneys' and accountants' fees, sustained or
incurred by, or asserted against, the Fund except to the extent the same arises
out of the failure of BNY to exercise the care, prudence and diligence required
by Section 2 of Article II hereof. In no event shall BNY be liable to the Fund,
the Board, or any third party for special, indirect or consequential damages, or
for lost profits or loss of business, arising in connection with this Agreement.
2. The Fund shall indemnify BNY and hold it harmless from and against
any and all costs, expenses, damages, liabilities or claims, including
attorneys' and accountants' fees, sustained or incurred by, or asserted against,
BNY by reason or as a result of any action or inaction, or arising out of BNY's
performance hereunder, provided that the Fund shall not indemnify BNY to the
extent any such costs, expenses, damages, liabilities or claims arises out of
BNY's failure to exercise the reasonable care, prudence and diligence required
by Section 2 of Article II hereof.
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3. For its services hereunder, the Fund agrees to pay to BNY such
compensation and out-of-pocket expenses as shall be mutually agreed.
4. BNY shall have only such duties as are expressly set forth herein.
In no event shall BNY be liable for any Country Risks associated with
investments in a particular country.
ARTICLE VI.
MISCELLANEOUS
1. This Agreement constitutes the entire agreement between the Fund and
BNY, and no provision in the Custody Agreement between the Fund and the
Custodian shall affect the duties and obligations of BNY hereunder, nor shall
any provision in this Agreement affect the duties or obligations of the
Custodian under the Custody Agreement.
2. Any notice or other instrument in writing. authorized or required by
this Agreement to be given to BNY, shall be sufficiently given if received by it
at its offices at 00 Xxxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, or at such
other place as BNY may from time to time designate in writing.
3. Any notice or other instrument in writing, authorized or required by
this Agreement to be given to the Fund shall be sufficiently given if received
by it at its offices at 0000 Xxxxxxx Xxxxxx, Xxxxxxxxx, Xxxx 00000 or at such
other place as the Fund may from time to time designate in writing.
4. In case any provision in or obligation under this Agreement shall be
invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
thereby. This Agreement may not be amended or modified in any manner except by a
written agreement executed by both parties. This Agreement shall extend to and
shall be binding upon the parties hereto, and their respective successors and
assigns; provided however, that this Agreement shall not be assignable by either
party without the written consent of the other.
5. This Agreement shall be construed in accordance with the substantive
laws of the State of New York, without regard to conflicts of laws principles
thereof. The Fund and BNY hereby consent to the jurisdiction of a state or
federal court situated in New York City. New York in connection with any dispute
arising hereunder. The Fund hereby irrevocably waives, to the fullest extent
permitted by applicable law. Any objection which it may now or hereafter have to
the laying of venue of any such proceeding brought in such a court and any claim
that such proceeding brought in such a court has been brought in an inconvenient
forum. The Fund and BNY each hereby irrevocably waives any and all rights to
trial by jury in any legal proceeding arising out of or relating to this
Agreement.
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6. The parties hereto agree that in performing hereunder, BNY is acting
solely on behalf of the Fund and no contractual or service relationship shall be
deemed to be established hereby between BNY and any other person.
7. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, but such counterparts shall,
together, constitute only one instrument.
8. This Agreement shall terminate simultaneously with the termination
of the Custody Agreement between the Fund and the Custodian, and may otherwise
be terminated by either party giving to the other party a notice in writing
specifying the date of such termination, which shall be not less than thirty
(30) days after the date of such notice.
9. Xxxxxxxx Funds is business trust organized under Chapter 1746, Ohio
Revised Code and under a Declaration of Trust, to which reference is hereby made
and a copy of which is on file at the office of the Secretary of State of Ohio
as required by law, and to any and al1 amendments thereto so filed or hereafter
filed. The obligations of "Xxxxxxxx Funds" entered into in the name or on behalf
thereof by any of the Trustees, officers, employees or agents are made not
individually, but in such capacities, and are not binding upon any of the
Trustees, officers, employees, agents or shareholders of the Fund personally,
but bind only the assets of the Fund, as set forth in Section 1746.13(A), Ohio
Revised Code, and all persons dealing with any of the Series of the Fund must
look solely to the assets of the Fund belonging to such Series for the
enforcement of any claims against the Fund.
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IN WITNESS WHEREOF, the Fund and BNY have caused this Agreement to be executed
by their respective officers, thereunto duly authorized, as of the date first
above written.
XXXXXXXX FUNDS
By: /s/ Xxxxx Xxxxxxxx
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Title:
Tax Identification No.:
THE BANK OF NEW YORK
By: /s/ Xxxxxxx X. Grunston
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Title: Vice President
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SCHEDULE I
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Country/ Country/
Market Sub-custodian(s) Market Sub-custodian(s)
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Argentina BankBoston, N.A. Hungary Citibank Budapest Rt.
Australia Commonwealth Bank of Australia/ Iceland Landsbanki Islands
National Australia Bank Limited
Austria Bank Austria AG India HSBC / Deutsche Bank AG
Bahrain The British Bank of the Middle Indonesia HSBC
East
Bangladesh Standard Chartered Bank Ireland Allied Irish Banks, plc
Belgium Banque Bruxelles Xxxxxxx Xxxxxx Bank Leumi LE - Israel B.M.
Bermuda Bank of Bermuda Limited Italy Banca Commerciale Italiana /
Banque Paribas S.A.
Bolivia Citibank, N.A. Ivory Coast Societe Generale de Banques en
Cote d'Ivoire
Botswana Stanbic Bank Botswana Limited Jamaica CIBC Trust & Merchant Bank
Jamaica Ltd.
Brazil BankBoston, N.A. Japan The Bank of Tokyo-Mitsubishi
Limited/
The Fuji Bank, Limited
Bulgaria ING Bank Jordan The British Bank of the Middle
East
Canada Royal Bank of Canada Kazakhstan ABN/AMRO
Chile BankBoston, N.A. Kenya Stanbic Bank Kenya Limited
China Standard Chartered Bank Latvia Societe Generale Riga
Colombia Cititrust Colombia S.A. Lebanon The British Bank of the Middle
East
Costa Rica Banco BCT Lithuania Vilniaus Bankas
Croatia Privredna Banka Zagreb d.d. Luxembourg Banque et Caisse d'Epargne de
l'Etat
Cyprus Bank of Cyprus Malaysia HongKong Bank Malaysia Berhad
Czech Republic Ceskoslovenska Obchodni Banka Malta Mid-Med Bank
A.S.
Denmark Den Danske Bank Mauritius HSBC
EASDAQ Banque Bruxelles Xxxxxxx Mexico Banco Nacional de Mexico
Ecuador Citibank, N.A. Morocco Banque Commerciale du Maroc
Egypt Citibank, N.A. Namibia Stanbic Bank Namibia Limited
Estonia Hansabank Limited Netherlands MeesPierson
Euromarket Cedelbank New Zealand Australia and New Zealand
Banking Group
Euromarket Euroclear Nigeria Stanbic Merchant Bank Nigeria
Limited
Finland Xxxxxx Bank plc Norway Den norske Bank ASA
France Banque Paribas S.A./ Oman The British Bank of the Middle
Credit Commercial de France East
Germany Dresdner Bank AG Pakistan Standard Chartered Bank
Ghana Merchant Bank (Ghana) Limited Peru Citibank, N.A.
Greece National Bank of Greece SA Philippines HSBC
Hong Kong HSBC Poland Bank Handlowy W Warszawie S.A.
Portugal Banco Comercial Portugues Switzerland Union Bank of Switzerland /
Credit Suisse First Boston
Romania ING Bank Taiwan HSBC
Russia Vneshtorgbank (Min Fin Bonds Thailand Standard Chartered Bank/
only)/ Bangkok Bank Public Company
Credit Suisse First Boston AO Limited
Singapore United Overseas Bank Limited/ Tunisia Banque Internationale Arabe de
The Development Bank of Tunisie
Singapore Ltd.
Slovakia Ceskoslovenska Obchodni Banka, Turkey Osmanli Bankasi A.S. (Ottoman
a.s. Bank)
Slovenia Bank Austria Creditanstalt Ukraine ING Bank
d.d. Ljubljana
South Africa The Standard Bank of South United Kingdom The Bank of New York, N.A. /
Africa Limited First Chicago Clearing Center
South Korea Standard Chartered Bank United States The Bank of New York, N.A.
Spain Banco Bilbao Vizcaya Uruguay BankBoston, N.A.
Sri Lanka Standard Chartered Bank Venezuela Citibank, N.A.
Swaziland Stanbic Bank Swaziland Limited Zambia Stanbic Bank Zambia Limited
Sweden Skandinaviska Enskilda Banken Zimbabwe Stanbic Bank Zimbabwe Limited
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SCHEDLUE 1
NAME OF FUND
Xxxxxxxx International Equity Fund
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SCHEDULE 2
Europe:
United Kingdom
France
Germany
Italy
Spain
Switzerland
Netherlands
Austria
Belgium
Denmark
Finland
Ireland
Norway
Portugal
Sweden
Pacific:
Japan
Australia
Hong Kong
Singapore
New Zealand
Malaysia
