INVESTMENT ADVISORY AGREEMENT
THIS AGREEMENT is made this 20th day of October 0000, Xxxxxx, Xxxxxxxx, by
and between INVESCO Funds Group, Inc. (the "Adviser"), a Delaware corporation,
and INVESCO Multiple Asset Funds, Inc., a Maryland Corporation (the "Fund").
W I T N E S S E T H :
WHEREAS, the Fund is a corporation organized under the laws of
the State of Maryland; and
WHEREAS, the Fund is registered under the Investment Company Act of 1940,
as amended (the "Investment Company Act"), as a diversified, open-end management
investment company and has one class of shares (the "Shares"), which is divided
into two series, each representing an interest in a separate portfolio of
investments (such series initially being the INVESCO Multi-Asset Allocation Fund
and INVESCO Balanced Fund (the "Portfolios")); and
WHEREAS, the Fund desires that the Adviser manage its investment
operations and the Adviser desires to manage said operations;
NOW, THEREFORE, in consideration of these premises and of the mutual
covenants and agreements hereinafter contained, the parties hereto agree as
follows:
1. Investment Management Services. The Adviser hereby
agrees to manage the investment operations of the Fund
and its Portfolios, subject to the terms of this
Agreement and to the supervision of the Fund's directors
(the "Directors"). The Adviser agrees to perform, or
arrange for the performance of, the following specific
services for the Fund:
(a) to manage the investment and reinvestment of all
the assets, now or hereafter acquired, of the Fund
and the Portfolios of the Fund;
(b) to maintain a continuous investment program for the
Fund and each Portfolio of the Fund, consistent
with (i) the Fund's and each Portfolio's investment
policies as set forth in the Fund's Registration
Statement, as from time to time amended, under the
Investment Company Act of 1940, as amended (the
"1940 Act"), and in any prospectus and/or statement
of additional information of the Fund or any
Portfolio of the Fund, as from time to time amended
and in use under the Securities Act of 1933, as
amended, and (ii) the Fund's status as a regulated
investment company under the Internal Revenue Code
of 1986, as amended;
(c) to determine what securities are to be purchased or sold for
the Fund and its Portfolios, unless otherwise directed by the
Directors of the Fund, and to execute transactions
accordingly;
(d) to provide to the Fund and the Portfolios of the
Fund the benefit of all of the investment analyses
and research, the reviews of current economic
conditions and trends, and the consideration of
long-range investment policy now or hereafter
generally available to investment advisory
customers of the Adviser;
(e) to determine what portion of the Fund and each Portfolio of
the Fund should be invested in common stocks, preferred
stocks, Government obligations, commercial paper, certificates
of deposit, bankers' acceptances, variable amount notes,
corporate debt obligations, and any other authorized
securities;
(f) to make recommendations as to the manner in which voting
rights, rights to consent to Fund and/or Portfolio action and
any other rights pertaining to the Fund's portfolio securities
shall be exercised; and
(g) to calculate the net asset value of the Fund and
each Portfolio, as applicable, as required by the
1940 Act, subject to such procedures as may be
established from time to time by the Fund's
Directors, based upon the information provided to
the Adviser by the Fund or by the custodian,
co-custodian or sub-custodian of the Fund's or any
of the Portfolios' assets (the "Custodian") or such
other source as designated by the Directors from
time to time.
With respect to execution of transactions for the Fund and for the
Portfolios, the Adviser shall place, or arrange for the placement of, all orders
for the purchase or sale of portfolio securities with brokers or dealers
selected by the Adviser. In connection with the selection of such brokers or
dealers and the placing of such orders, the Adviser is directed at all times to
obtain for the Fund and the Portfolios the most favorable execution and price;
after fulfilling this primary requirement of obtaining the most favorable
execution and price, the Adviser is hereby expressly authorized to consider as a
secondary factor in selecting brokers or dealers with which such orders may be
placed whether such firms furnish statistical, research and other information or
services to the Adviser. Receipt by the Adviser of any such statistical or other
information and services should not be deemed to give rise to any requirement
for adjustment of the advisory fee payable pursuant to paragraph 4 hereof. The
Adviser may follow a policy of considering sales of shares of the Fund as a
factor in the selection of broker/dealers to execute portfolio transactions,
subject to the requirements of best execution discussed above.
The Adviser shall for all purposes herein provided be deemed to be
an independent contractor.
2. Allocation of Costs and Expenses. The Adviser shall
reimburse the Fund monthly for any salaries paid by the
Fund to officers, Directors, and full-time employees of
the Fund who also are officers, general partners or
employees of the Adviser or its affiliates. Except for
such subaccounting, recordkeeping, and administrative
services which are to be provided by the Adviser to the
Fund under the Administrative Services Agreement between
the Fund and the Adviser dated October 20, 1993, which
was approved on October 20, 1993, by the Fund's board of
directors, including all of the independent directors, at
the Fund's request the Adviser shall also furnish to the
Fund, at the expense of the Adviser, such competent
executive, statistical, administrative, internal
accounting and clerical services as may be required in
the judgment of the Directors of the Fund. These
services will include, among other things, the
maintenance (but not preparation) of the Fund's accounts
and records, and the preparation (apart from legal and
accounting costs) of all requisite corporate documents
such as tax returns and reports to the Securities and
Exchange Commission and Fund shareholders. The Adviser
also will furnish, at the Adviser's expense, such office
space, equipment and facilities as may be reasonably
requested by the Fund from time to time.
Except to the extent expressly assumed by the Adviser herein and
except to the extent required by law to be paid by the Adviser, the
Fund shall pay all costs and expenses in connection with the
operations and organization of the Fund. Without limiting the
generality of the foregoing, such costs and expenses payable by the
Fund include the following:
(a) all brokers' commissions, issue and transfer taxes,
and other costs chargeable to the Fund and any
Portfolio in connection with securities
transactions to which the Fund or any Portfolio is
a party or in connection with securities owned by
the Fund or any Portfolio;
(b) the fees, charges and expenses of any independent
public accountants, custodian, depository, dividend
disbursing agent, dividend reinvestment agent,
transfer agent, registrar, independent pricing
services and legal counsel for the Fund or for any
Portfolio;
(c) the interest on indebtedness, if any, incurred by
the Fund or any Portfolio;
(d) the taxes, including franchise, income, issue, transfer,
business license, and other corporate fees payable by the Fund
or any Portfolio to federal, state, county, city, or other
governmental agents;
(e) the fees and expenses involved in maintaining the registration
and qualification of the Fund and of its shares under laws
administered by the Securities and Exchange Commission or
under other applicable regulatory requirements, including the
preparation and printing of prospectuses and statements of
additional information;
(f) the compensation and expenses of its Directors;
(g) the costs of printing and distributing reports,
notices of shareholders' meetings, proxy
statements, dividend notices, prospectuses,
statements of additional information and other
communications to the Fund's shareholders, as well
as all expenses of shareholders' meetings and
Directors' meetings;
(h) all costs, fees or other expenses arising in
connection with the organization and filing of the
Fund's Articles of Incorporation, including its
initial registration and qualification under the
1940 Act and under the Securities Act of 1933, as
amended, the initial determination of its tax
status and any rulings obtained for this purpose,
the initial registration and qualification of its
securities under the laws of any state and the
approval of the Fund's operations by any other
federal or state authority;
(i) the expenses of repurchasing and redeeming shares
of the Fund;
(j) insurance premiums;
(k) the costs of designing, printing, and issuing
certificates representing shares of beneficial
interest of the Fund;
(l) extraordinary expenses, including fees and
disbursements of Fund counsel, in connection with
litigation by or against the Fund or any Portfolio;
(m) premiums for the fidelity bond maintained by the Fund pursuant
to Section 17(g) of the 1940 Act and rules promulgated
thereunder (except for such premiums as may be allocated to
the Adviser as an insured thereunder);
(n) association and institute dues; and
(o) the expenses, if any, of distributing shares of the Fund paid
by the Fund pursuant to a Plan and Agreement of Distribution
adopted under Rule 12b-1 of the Investment Company Act of
1940.
3. Use of Affiliated Companies. In connection with the
rendering of the services required to be provided by the
Adviser under this Agreement, the Adviser may, to the
extent it deems appropriate and subject to compliance
with the requirements of applicable laws and regulations,
and upon receipt of written approval of the Fund, make
use of its affiliated companies and their employees;
provided that the Adviser shall supervise and remain
fully responsible for all such services in accordance
with and to the extent provided by this Agreement and
that all costs and expenses associated with the providing
of services by any such companies or employees and
required by this Agreement to be borne by the Adviser
shall be borne by the Adviser or its affiliated
companies.
4. Compensation of the Adviser. For the services to be
rendered and the charges and expenses to be assumed by
the Adviser hereunder, the Fund shall pay to the Adviser
an advisory fee which will be computed on a daily basis
and paid as of the last day of each month, using for each
daily calculation the most recently determined net asset
value of each Portfolio of the Fund, as determined by
valuations made in accordance with the Fund's procedure
for calculating the Portfolios' net asset value as
described in the Fund's Prospectus and/or Statement of
Additional Information. The advisory fee to the Adviser
with respect to the Portfolio designated as INVESCO
Multi-Asset Allocation Fund shall be computed at the
following annual rate: 0.75% of the first $500 million
of such Portfolio's average net assets, 0.65% of such
Portfolio's average net assets in excess of $500 million
but not more than $1 billion, and 0.50% of such
Portfolio's average net assets in excess of $1 billion.
The advisory fee to the Adviser with respect to the
Portfolio designated as INVESCO Balanced Fund shall be
computed at the following annual rate: 0.60% of the
first $350 million of such Portfolio's average net assets, 0.55% of
such Portfolio's average net assets in excess of $350 million but
not more than $700 million, and 0.50% of such Portfolio's average
net assets in excess of $700 million.
During any period when the determination of the Portfolios' net
asset value is suspended by the Directors of the Fund, the net asset
value of a share of the Portfolios as of the last business day prior
to such suspension shall, for the purpose of this Paragraph 4, be
deemed to be the net asset value at the close of each succeeding
business day until it is again determined. However, no such fee
shall be paid to the Adviser with respect to any assets of the Fund
or any Portfolio thereof which may be invested in any other
investment company for which the Adviser serves as investment
adviser. The fee provided for hereunder shall be prorated in any
month in which this Agreement is not in effect for the entire month.
If, in any given year, the sum of a Portfolio's expenses exceeds the
most restrictive state imposed annual expense limitation, the
Adviser will be required to reimburse the Portfolio for such excess
expenses promptly. Interest, taxes and extraordinary items such as
litigation costs are not deemed expenses for purposes of this
paragraph and shall be borne by the Fund or such Portfolio in any
event. Expenditures, including costs incurred in connection with the
purchase or sale of portfolio securities, which are capitalized in
accordance with generally accepted accounting principles applicable
to investment companies, are accounted for as capital items and
shall not be deemed to be expenses for purposes of this paragraph.
5. Avoidance of Inconsistent Positions and Compliance with
Laws.
In connection with purchases or sales of securities for
the investment portfolio of the Fund or any Portfolio,
neither the Adviser nor its officers or employees will
act as a principal or agent for any party other than the
Fund or any Portfolio or receive any commissions. The
Adviser will comply with all applicable laws in acting
hereunder including, without limitation, the 1940 Act;
the Investment Advisers Act of 1940, as amended; and all
rules and regulations duly promulgated under the
foregoing.
6. Duration and Termination. This Agreement shall become
effective as of the date it is approved by a majority of
the outstanding voting securities of the Portfolios of
the Fund, and unless sooner terminated as hereinafter
provided, shall remain in force for an initial term
expiring April 30, 1995, and from year to year thereafter, but only
as long as such continuance is specifically approved at least
annually (i) by a vote of a majority of the outstanding voting
securities of the Portfolios of the Fund or by the Directors of the
Fund, and (ii) by a majority of the Directors of the Fund who are
not interested persons of the Adviser or the Fund by votes cast in
person at a meeting called for the purpose of voting on such
approval. In the event of the disapproval of this Agreement, or of
the continuation hereof, by the shareholders of a particular
Portfolio (or by the Directors of the Fund as to a particular
Portfolio), the parties intend that such disapproval shall be
effective only as to such Portfolio, and that such disapproval shall
not affect the validity or effectiveness of the approval of this
Agreement, or of the continuation hereof, by the shareholders of any
other Portfolio (or by the Directors, including a majority of the
disinterested Directors) as to such other Portfolio; in such case,
this Agreement shall be deemed to have been validly approved or
continued, as the case may be, as to such other Portfolio.
This Agreement may, on 60 days' prior written notice, be terminated
without the payment of any penalty, by the Directors of the Fund, or
by the vote of a majority of the outstanding voting securities of
the Fund or, with respect to a particular Portfolio, by a majority
of the outstanding voting securities of that Portfolio, as the case
may be, or by the Adviser. This Agreement shall immediately
terminate in the event of its assignment, unless an order is issued
by the Securities and Exchange Commission conditionally or
unconditionally exempting such assignment from the provisions of
Section 15(a) of the 1940 Act, in which event this Agreement shall
remain in full force and effect subject to the terms and provisions
of said order. In interpreting the provisions of this paragraph 6,
the definitions contained in Section 2(a) of the 1940 Act and the
applicable rules under the 1940 Act (particularly the definitions of
"interested person," "assignment" and "vote of a majority of the
outstanding voting securities") shall be applied.
The Adviser agrees to furnish to the Directors of the Fund such
information on an annual basis as may reasonably be necessary to
evaluate the terms of this Agreement.
Termination of this Agreement shall not affect the right of the
Adviser to receive payments on any unpaid balance of the
compensation described in paragraph 4 earned prior to such
termination.
7. Non-Exclusive Services. The Adviser shall, during the
term of this Agreement, be entitled to render investment
advisory services to others, including, without
limitation, other investment companies with similar
objectives to those of the Fund or any Portfolio of the
Fund. The Adviser may, when it deems such to be
advisable, aggregate orders for its other customers
together with any securities of the same type to be sold
or purchased for the Fund or any Portfolio in order to
obtain best execution and lower brokerage commissions.
In such event, the Adviser shall allocate the shares so
purchased or sold, as well as the expenses incurred in
the transaction, in the manner it considers to be most
equitable and consistent with its fiduciary obligations
to the Fund or any Portfolio and the Adviser's other
customers.
8. Liability. The Adviser shall have no liability to the
Fund or any Portfolio or to the Fund's shareholders or
creditors, for any error of judgment, mistake of law, or
for any loss arising out of any investment, nor for any
other act or omission, in the performance of its
obligations to the Fund or any Portfolio not involving
willful misfeasance, bad faith, gross negligence or
reckless disregard of its obligations and duties
hereunder.
9. Miscellaneous Provisions.
Notice. Any notice under this Agreement shall be in writing,
addressed and delivered or mailed, postage prepaid, to the other
party at such address as such other party may designate for the
receipt of such notice.
Amendments Hereof. No provision of this Agreement may be changed,
waived, discharged or terminated orally, but only by an instrument
in writing signed by the Fund and the Adviser, and no material
amendment of this Agreement shall be effective unless approved by
(1) the vote of a majority of the Directors of the Fund, including a
majority of the Directors 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 amendment, and (2) the vote
of a majority of the outstanding voting securities of any Portfolio
of the Fund affected by such amendment; provided, however, that this
paragraph shall not prevent any immaterial amendment(s) to this
Agreement, which amendment(s) may be made without shareholder
approval, if such amendment(s) are made with the approval of (1) the
Directors and (2) a majority of the Directors of the Fund who are
not interested persons of the Adviser or the Fund. In the event of
the disapproval of an amendment of this Agreement by the
shareholders of a particular Portfolio
(or by the Directors of the Fund as to a particular Portfolio), the
parties intend that such disapproval shall be effective only as to
such Portfolio, and that such disapproval shall not affect the
validity or effectiveness of the approval of the amendment by the
shareholders of any other Portfolio (or by the Directors, including
a majority of the disinterested Directors) as to such other
Portfolio; in such case, this Agreement shall be deemed to have been
validly amended as to such other Portfolio.
Severability. Each provision of this Agreement is intended to be
severable. If any provision of this Agreement shall be held illegal
or made invalid by a court decision, statute, rule or otherwise,
such illegality or invalidity shall not affect the validity or
enforceability of the remainder of this Agreement.
Headings. The headings in this Agreement are inserted for
convenience and identification only and are in no way intended to
describe, interpret, define or limit the size, extent or intent of
this Agreement or any provision hereof.
Applicable Law. This Agreement shall be construed in accordance with
the laws of the State of Colorado and the applicable provisions of
the 1940 Act. To the extent that the applicable laws of the State of
Colorado, or any of the provisions herein, conflict with applicable
provisions of the 1940 Act, the latter shall control.
IN WITNESS WHEREOF, the Adviser and the Fund each has caused this
Agreement to be duly executed on its behalf by an officer thereunto duly
authorized, the day and year first above written.
INVESCO MULTIPLE ASSET FUNDS, INC.
ATTEST:
By: /s/ Xxx X. Xxxxxx
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Xxx X. Xxxxxx
/s/ Xxxx X. Xxxxx
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Xxxx X. Xxxxx
Secretary
INVESCO FUNDS GROUP, INC.
ATTEST:
By: /s/ Xxxxxx X. Xxxxxx
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Xxxxxx X. Xxxxxx, Senior Vice
/s/ Xxxx X. Xxxxx President
--------------------------------
Xxxx X. Xxxxx
Secretary
