PHOENIX EQUITY SERIES FUND
INVESTMENT ADVISORY AGREEMENT
THIS AGREEMENT, effective as of the 1st day of January, 2005 (the
"Contract Date") by and between Phoenix Equity Series Fund, a
Delaware business trust (the "Trust") and Xxxxxxxx Asset Management,
a California corporation (the "Adviser").
WITNESSETH THAT:
1. The Trust hereby appoints the Adviser to act as investment
adviser to the Trust on behalf of the series of the Trust established
and designated by the Board of Trustees of the Trust (the "Trustees")
on or before the date hereof, as listed on attached Schedule A
(collectively, the "Existing Series"), for the period and on the
terms set forth herein. The Adviser accepts such appointment and
agrees to render the services described in this Agreement for the
compensation herein provided.
2. In the event that the Trustees desire to retain the Adviser
to render investment advisory services hereunder with respect to one
or more additional series (the "Additional Series"), by agreement in
writing, the Trust and the Adviser may agree to amend Schedule A to
include such Additional Series, whereupon such Additional Series
shall become subject to the terms and conditions of this Agreement.
3. The Adviser shall furnish continuously an investment
program for the Existing Series and any Additional Series which may
become subject to the terms and conditions set forth herein
(sometimes collectively referred to as the "Series") and shall manage
the investment and reinvestment of the assets of each Series, subject
at all times to the supervision of the Trustees.
4. With respect to managing the investment and reinvestment of
the Series' assets, the Adviser shall provide, at its own expense:
(a) Investment research, advice and supervision;
(b) An investment program for each Series consistent
with its investment objectives, policies and
procedures;
(c) Implementation of the investment program for each
Series including the purchase and sale of securities;
(d) Implementation of an investment program designed to
manage cash, cash equivalents and short-term
investments for a Series with respect to assets
designated from time to time to be managed by a
subadviser to such Series;
(e) Advice and assistance on the general operations of
the Trust; and
(f) Regular reports to the Trustees on the implementation
of each Series' investment program.
5. The Adviser shall, for all purposes herein, be deemed to be
an independent contractor.
6. The Adviser shall furnish at its own expense, or pay the
expenses of the Trust, for the following:
(a) Office facilities, including office space, furniture
and equipment;
(b) Personnel necessary to perform the functions required
to manage the investment and reinvestment of each
Series' assets (including those required for
research, statistical and investment work);
(c) Except as otherwise approved by the Board, personnel
to serve without salaries from the Trust as officers
or agents of the Trust. The Adviser need not provide
personnel to perform, or pay the expenses of the
Trust for, services customarily performed for an
open-end management investment company by its
national distributor, custodian, financial agent,
transfer agent, registrar, dividend disbursing agent,
auditors and legal counsel;
(d) Compensation and expenses, if any, of the Trustees
who are also full-time employees of the Adviser or
any of its affiliates; and
(e) Any subadviser recommended by the Adviser and
appointed to act on behalf of the Trust.
7. All costs and expenses not specifically enumerated herein
as payable by the Adviser shall be paid by the Trust. Such expenses
shall include, but shall not be limited to, all expenses (other than
those specifically referred to as being borne by the Adviser)
incurred in the operation of the Trust and any public offering of its
shares, including, among others, interest, taxes, brokerage fees and
commissions, fees of Trustees who are not full-time employees of the
Adviser or any of its affiliates, expenses of Trustees' and
shareholders' meetings including the cost of printing and mailing
proxies, expenses of Adviser personnel attending Trustee meetings as
required, expenses of insurance premiums for fidelity and other
coverage, expenses of repurchase and redemption of shares, expenses
of issue and sale of shares (to the extent not borne by its national
distributor under its agreement with the Trust), expenses of printing
and mailing stock certificates representing shares of the Trust,
association membership dues, charges of custodians, transfer agents,
dividend disbursing agents and financial agents, bookkeeping,
auditing and legal expenses. The Trust will also pay the fees and
bear the expense of registering and maintaining the registration of
the Trust and its shares with the Securities and Exchange Commission
and registering or qualifying its shares under state or other
securities laws and the expense of preparing and mailing prospectuses
and reports to shareholders. Additionally, if authorized by the
Trustees, the Trust shall pay for extraordinary expenses and expenses
of a non-recurring nature which may include, but not be limited to
the reasonable and proportionate cost of any reorganization or
acquisition of assets and the cost of legal proceedings to which the
Trust is a party.
8. The Adviser shall adhere to all applicable policies and
procedures as adopted from time to time by the Trustees, including
but not limited to the following:
(a) Code of Ethics. The Adviser shall adopt a Code of
Ethics designed to prevent "access persons" (as
defined therein in accordance with Rule 17j-1 under
the Investment Company Act of 1940 (the "Investment
Company Act")) from engaging in fraudulent acts or
transactions that are, or have the potential of being
viewed as, a conflict of interest, and shall monitor
for compliance with its Code of Ethics and report any
violations to the Trust's Compliance Officer.
(b) Policy with Respect to Brokerage Allocation. The
Adviser shall have full trading discretion in
selecting brokers for Series transactions on a day to
day basis so long as each selection is in conformance
with the Trust's Policy with Respect to Brokerage
Allocation. Such discretion shall include use of
"soft dollars" for certain broker and research
services, also in conformance with the Trust's Policy
with Respect to Brokerage Allocation. The Adviser may
delegate the responsibilities under this section to a
Subadviser of a Series.
(c) Procedures for the Determination of Liquidity of
Assets. It shall be the responsibility of the
Adviser to monitor the Series' assets that are not
liquid, making such determinations as to liquidity of
a particular asset as may be necessary, in accordance
with the Trust's Procedures for the Determination of
Liquidity of Assets. The Adviser may delegate the
responsibilities under this section to a Subadviser
of a Series.
(d) Policy with Respect to Proxy Voting. In the absence
of specific direction to the contrary and in a manner
consistent with the Trust's Policy with Respect to
Proxy Voting, the Adviser shall be responsible for
voting proxies with respect to portfolio holdings of
the Trust. The Adviser shall review all proxy
solicitation materials and be responsible for voting
and handling all proxies in relation to the assets
under management by the Adviser in accordance with
such policies and procedures adopted or approved by
each Series'. Unless the Fund gives the Adviser
written instructions to the contrary, the Adviser
will, in compliance with the proxy voting procedures
of the Series then in effect or approved by the
Series, vote or abstain from voting, all proxies
solicited by or with respect to the issuers of
securities in which the assets of the Series may be
invested. The Adviser shall cause the Custodian to
forward promptly to the Adviser (or designee) all
proxies upon receipt so as to afford the Adviser a
reasonable amount of time in which to determine how
to vote such proxies. The Adviser agrees to provide
the Trust with quarterly proxy voting reports in such
form as the Trust may request from time to time. The
Adviser may delegate the responsibilities under this
section to a Subadviser of a Series.
(e) Procedures for the Valuation of Securities. It shall
be the responsibility of the Adviser to fully comply
with the Trust's Procedures for the Valuation of
Securities. The Adviser may delegate the
responsibilities under this section to a Subadviser
of a Series.
9. For providing the services and assuming the expenses
outlined herein, the Trust agrees that the Adviser shall be
compensated as follows:
(a) The Trust shall pay a monthly fee calculated at an
annual rate as specified in Schedule A. The amounts
payable to the Adviser with respect to the respective
Series shall be based upon the average of the values
of the net assets of such Series as of the close of
business each day, computed in accordance with the
Trust's Declaration of Trust.
(b) Compensation shall accrue immediately upon the
effective date of this Agreement.
(c) If there is termination of this Agreement with
respect to any Series during a month, the Series' fee
for that month shall be proportionately computed upon
the average of the daily net asset values of such
Series for such partial period in such month.
(d) The Adviser agrees to reimburse the Trust for the
amount, if any, by which the total operating and
management expenses for any Series (including the
Adviser's compensation, pursuant to this paragraph,
but excluding taxes, interest, costs of portfolio
acquisitions and dispositions and extraordinary
expenses), for any "fiscal year" exceed the level of
expenses which such Series is permitted to bear under
the most restrictive expense limitation (which is not
waived by the State) imposed on open-end investment
companies by any state in which shares of such Series
are then qualified. Such reimbursement, if any, will
be made by the Adviser to the Trust within five days
after the end of each month. For the purpose of this
subparagraph (d), the term "fiscal year" shall
include the portion of the then current fiscal year
which shall have elapsed at the date of termination
of this Agreement.
10. The services of the Adviser to the Trust are not to be
deemed exclusive, the Adviser being free to render services to others
and to engage in other activities. Without relieving the Adviser of
its duties hereunder and subject to the prior approval of the
Trustees and subject farther to compliance with applicable provisions
of the Investment Company Act, as amended, the Adviser may appoint
one or more agents to perform any of the functions and services which
are to be provided under the terms of this Agreement upon such terms
and conditions as may be mutually agreed upon among the Trust, the
Adviser and any such agent.
11. The Adviser shall not be liable to the Trust or to any
shareholder of the Trust for any error of judgment or mistake of law
or for any loss suffered by the Trust or by any shareholder of the
Trust in connection with the matters to which this Agreement relates,
except a loss resulting from willful misfeasance, bad faith, gross
negligence or reckless disregard on the part of the Adviser in the
performance of its duties hereunder.
12. It is understood that:
(a) Trustees, officers, employees, agents and
shareholders of the Trust are or may be "interested
persons" of the Adviser as directors, officers,
stockholders or otherwise;
(b) Directors, officers, employees, agents and
stockholders of the Adviser are or may be "interested
persons" of the Trust as Trustees, officers,
shareholders or otherwise; and
(c) The existence of any such dual interest shall not
affect the validity hereof or of any transactions
hereunder.
13. This Agreement shall become effective with respect to the
Existing Series as of the date stated above, and with respect to any
Additional Series, on the date specified in any amendment to this
Agreement reflecting the addition of each Additional Series in
accordance with paragraph 2 (the "Amendment Date"). Unless terminated
as herein provided, this Agreement shall remain in full force and
effect until November 30, 2005 with respect to each Existing Series
and until November 30 of the first full calendar year following the
Amendment Date with respect to each Additional Series, and shall
continue in full force and effect for periods of one year thereafter
with respect to each Series so long as (a) such continuance with
respect to any such Series is approved at least annually by either
the Trustees or by a "vote of the majority of the outstanding voting
securities" of such Series and (b) the terms and any renewal of this
Agreement with respect to any such Series have been approved by 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.
Any approval of this Agreement by a vote of the holders of a
"majority of the outstanding voting securities" of any Series shall
be effective to continue this Agreement with respect to such Series
notwithstanding (a) that this Agreement has not been approved by a
"vote of a majority of the outstanding voting securities" of any
other Series of the Trust affected thereby and (b) that this
Agreement has not been approved by the holders of a "vote of a
majority of the outstanding voting securities" of the Trust, unless
either such additional approval shall be required by any other
applicable law or otherwise.
14. The Trust may terminate this Agreement with respect to the
Trust or to any Series upon 60 days' written notice to the Adviser at
any time, without the payment of any penalty, by vote of the Trustees
or, as to each Series, by a "vote of the majority of the outstanding
voting securities" of such Series. The Adviser may terminate this
Agreement upon 60 days' written notice to the Trust, without the
payment of any penalty. This Agreement shall immediately terminate in
the event of its "assignment".
15. The terms "majority of the outstanding voting securities",
"interested persons" and "assignment", when used herein, shall have
the respective meanings in the Investment Company Act.
16. In the event of termination of this Agreement, or at the
request of the Adviser, the Trust will eliminate all reference to
"Phoenix" from its name, and will not thereafter transact business in
a name using the word "Phoenix" in any form or combination
whatsoever, or otherwise use the word "Phoenix" as a part of its
name. The Trust will thereafter in all prospectuses, advertising
materials, letterheads, and other material designed to be read by
investors or prospective investors delete from the name the word
"Phoenix" or any approximation thereof. If the Adviser chooses to
withdraw the Trust's right to use the word "Phoenix," it agrees to
submit the question of continuing this Agreement to a vote of the
Trust's shareholders at the time of such withdrawal.
17. It is expressly agreed that the obligations of the Trust
hereunder shall not be binding upon any of the Trustees,
shareholders, nominees, officers, agents or employees of the Trust
personally, but bind only the trust property of the Trust, as
provided in the Declaration of Trust. The execution and delivery of
this Agreement have been authorized by the Trustees and shareholders
of the Trust and signed by the President of the Trust, 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 be binding
upon or impose any liability on any of them personally, but shall
bind only the trust property of the Trust as provided in its
Declaration of Trust.
18. This Agreement shall be construed and the rights and
obligations of the parties hereunder enforced in accordance with the
laws of the State of Delaware.
19. Subject to the duty of the Adviser and the Trust to comply
with applicable law, including any demand of any regulatory or taxing
authority having jurisdiction, the parties hereto shall treat as
confidential all information pertaining to the Series and any
Additional Series that may be named, and the actions of the Adviser
and the Trust in respect thereof.
20. The Adviser will not advise or act on behalf of the Series
in regards to class action filings, with respect to any securities
held in the Series portfolio and any Additional Series that may be
named.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized officers as of the
day and year first written above.
PHOENIX EQUITY SERIES FUND
By: /s/ Xxxxx Xxxxxxx
Name: Xxxxxxx X. Xxxxxxx
Title: Senior Vice President
XXXXXXXX ASSET MANAGEMENT
By: /s/ Xxxxxxx Xxxx
Name: Xxxxxxx Xxxx
Title: Chief Financial Officer
SCHEDULE A
SERIES ANNUAL INVESTMENT ADVISORY FEE
Phoenix Growth & Income Fund 0.75% on the first $1 billion
0.70% on $1 billion to $ 2 billion
0.65% on the excess over $ 2 billion
