Exhibit 99.(d)(35)
INVESTMENT SUBADVISORY AGREEMENT
This Investment Subadvisory Agreement is made as of
March__2003, by and between VANTAGEPOINT INVESTMENT ADVISERS, LLC, a Delaware
limited liability company (hereafter "Client"), and X.XXXX PRICE ASSOCIATES,
INC., 000 Xxxx Xxxxx Xxxxxx, Xxxxxxxxx, XX 00000 (hereafter "Subadvisor"), and
THE VANTAGEPOINT FUNDS, a Delaware business trust, and is effective as of
March__, 2003 (the "Effective Date").
WHEREAS, The Vantagepoint Funds (the "Funds") is a Delaware
Business Trust registered as an open-end management investment company under the
Investment Company Act of 1940 (the "1940 Act");
WHEREAS, Client is party to an Investment Adviser Agreement
with the Funds for management of the investment operations of the Funds
including the establishment and operation of investment portfolios for the Funds
and the entering into of contracts with sub-advisers to assist in managing the
investment of the Funds property;
WHEREAS, Client and Subadviser wish to enter into a
subadvisory agreement pursuant to which Subadvisor will provide such assistance
to Client.
AGREEMENTS:
In consideration of the performance by the Subadviser as
Investment Subadviser of certain assets held by the Funds, the Client has
authorized the Subadviser to manage the securities and other assets as follows:
1. ACCOUNT
The account with respect to which the Subadviser shall perform
its services shall consist of those assets of the VANTAGEPOINT AGGRESSIVE
OPPORTUNITIES FUND (the "Fund") which the Client determines to assign to an
account with the Subadviser, together with all income earned by those assets and
all realized and unrealized capital appreciation related to those assets
(hereafter "Account"). From time to time, the Client may, upon reasonable notice
to the Subadviser, make additions to the Account and may, upon reasonable notice
to the Subadviser, make withdrawals from the Account. To the extent that such
withdrawals shall reduce the assets of the account to zero, the Subadviser shall
not be entitled to any fees as set forth hereunder for the period of time for
which no assets are held in the Account. Subadviser shall manage the assets of
the Fund held in the Account in accordance with the Investment Adviser
Guidelines and The Fund's State of Investment Policies, which have been provided
to the Subadviser and which maybe changed from time to time by Client on advance
written notice to the Subadviser.
2. APPOINTMENT STATUS, POWERS OF CLIENT AND SUBADVISER
(a) Purchase and Sale. Client hereby appoints Subadviser
to manage the Account on the terms and conditions set forth in this Agreement.
Subject to the restrictions set forth in this Agreement, and acting always in
conformity with the Investment Policies provided in Paragraph 4 as well as the
Investment Adviser Guidelines and the Fund's Statement of Investment Policies,
Subadviser shall supervise and direct investment of the Account. Client hereby
grants the Subadviser complete, unlimited and unrestricted discretion and
authority to select portfolio securities with respect to the Account including
the power to acquire (by purchase, exchange, subscription or otherwise), to hold
and dispose (by sale, exchange or otherwise). The Subadviser will review with
Client, upon the request of the Client, any transactions it makes with respect
to the investment of the Account.
(b) Limitation on Authority. Except as expressly
authorized herein or hereafter from time to time, Subadviser shall for all
purposes be deemed an independent contractor and shall have no authority to act
for or to represent the Client or the Funds in any way or otherwise to be an
agent of the Client or the Funds. The activities of Client and Subadviser in
managing the assets of the VANTAGEPOINT AGGRESSIVE OPPORTUNITIES FUND shall in
all instances be conducted subject to the supervision and direction of the Board
of Directors of The Vantagepoint Funds.
(c) Voting. Unless otherwise instructed by Client,
Subadviser shall have discretion to take any action or render any advice with
respect to the voting of shares or the execution of proxies solicited from time
to time by, or with respect to, the issuers of securities held in the Account.
Subadviser will report annually to Client regarding such voting.
(d) Key Personnel. Subadviser agrees that the following
key personnel have primary responsibility with respect to the investment
management of the Account. If the(se) individual(s) is unable to devote
sufficient time to maintain primary responsibility of the Account, the
Subadviser must give Client written advance notice, or prompt notice within
three (3) business days, of the name of the person designated by the Subadviser
to replace or supplement the individual(s). In addition, the Subadviser will
give Client written notice of the replacement of any employee of the Subadviser
who has direct supervisory responsibility for the key personnel or who has
responsibility for setting investment policy as soon as reasonably practicable.
Key Personnel:
3. ACCEPTANCE OF APPOINTMENT
Subadviser accepts the appointment as an investment Subadviser
and agrees to use its best efforts and professional judgment to make timely
investment
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transactions for the Client with respect to the investments of the Account, and
to provide the other services required of the Subadviser under the provisions of
this Agreement.
4. INVESTMENT POLICIES
(a) Investment Objectives. Subject to the supervision of
the Fund's Board of Directors and the Client, the Subadviser shall direct the
investments of the Account in accordance with the written investment objectives,
policies, and restrictions provided by Client, as set forth in the specific
statement of Investment Adviser Guidelines or other policies and procedures of
the Fund or the Client which have been provided to the Subadviser, as restated
or modified from time to time by the Client in written notice to the Subadviser.
The Client retains the right, on written notice to the Subadviser, to modify any
such objectives, guidelines, restrictions, and liquidity requirements in any
manner at any time as may be allowed pursuant to the 1940 Act.
(b) Agreement. The Subadviser will adhere to all specific
provisions established in the Agreement and in the Registration Statement as
filed with the Securities and Exchange Commission on Form N-1A ("Registration
Statement"), which is hereby incorporated by reference and made a part of this
Agreement, provided Client has furnished copies of such Registration Statement,
and any amendments thereto to Subadviser in a timely manner.
(c) Conflict in Policies. If a conflict in policies or
guidelines referenced herein occurs, the Registration Statement shall govern for
purposes of this Agreement.
5. CUSTODY, DELIVERY, RECEIPT OF SECURITIES
(a) Custody Responsibilities. The Client shall designate
one or more custodians to hold the Account. The Custodian, as designated by the
Client will be responsible for the custody, receipt and delivery of securities
and other assets of the Funds (including the Account), and the Subadviser shall
have no authority, responsibility or obligation with respect to the custody,
receipt or delivery of securities or other assets of the Funds (including the
Account). In the event that any cash or securities of the Funds are delivered to
the Subadviser, it will promptly deliver the same over to the Custodian, in the
name of the Funds.
(b) Securities Transactions. Unless otherwise required by
local custom, all securities transactions for the Account will be consummated by
payment to or delivery by the Funds of cash or securities due to or from the
Account. The Subadviser will make all reasonable efforts to notify the Custodian
of all orders to brokers for the Account by 10:00 am EST on the day following
the trade date and will affirm the trade within the close of business one (1)
business day after the trade date (T+1) provided the broker has also affirmed
the trade.
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6. RECORD KEEPING AND REPORTING
(a) Records. Subadviser will maintain proper and complete
records relating to the furnishing of services under this Agreement, including
records with respect to the acquisition, holding and disposition of securities
for Client in accordance with such reasonable instructions as shall be provided
to Subadviser by Client from time to time. All records maintained pursuant to
this Agreement shall be subject to examination by Client and by persons
authorized by it during normal business hours upon reasonable notice. Except as
expressly authorized in this Agreement or as required by applicable law,
regulation or order of court or as directed by other party in writing,
Subadviser and Client shall keep confidential the records and other information
obtained by reason of this Agreement. Upon termination of this Agreement,
Subadviser shall promptly, upon demand, return to Client all records Client
reasonably believes are necessary in order to discharge its responsibilities to
the Funds. Subadviser shall be entitled to retain originals or copies of records
pursuant to the requirements of applicable laws or regulations.
(b) Quarterly Valuation Reports. Subadviser shall use
best efforts to provide to the Client within ten (10) business days after the
end of each calendar quarter a statement of the fair market value of the Account
as of the close of such quarter together with an itemized list of the assets in
the Account, as that information is reported on Subadviser's recordkeeping
system.
(c) Reconciliations. Subadviser shall reconcile security
and cash positions, and market values on a monthly basis to the Fund
Accountant's records and report discrepancies to the Client by ten (10) business
days after the end of the month.
(d) Loss Reimbursement. Subadviser shall reimburse the
Account for any material error to the Fund's net asset value caused by
Subadviser's breach of its standard of care set forth in Section 12(a) that is a
direct cause of a delay in the accurate daily pricing of the Fund(s), provided
such loss was not the result of action or inaction of other service providers
to the Client or the Fund.
(e) Reports. Subadviser shall furnish Client and the
Board of Directors of The Vantagepoint Funds such periodic and special reports
and non-proprietary or non-confidential information as shall be reasonably
necessary to evaluate the terms of any advisory agreement between Client and
Subadviser with respect to the assets of the Growth & Income Fund.
(f) Other Reports on Request. Subadviser shall provide to
Client promptly upon request any information available in the records maintained
by Subadviser relating to the Account.
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(g) Review of Materials. During the term of this
Agreement, the Client shall furnish to the Subadviser at its principal office
all prospectuses, statements of additional information, proxy statements,
reports to shareholders, advertising and sales literature or other material
prepared for distribution to Fund shareholders or the public, which refer to the
Subadviser or its clients in any way, prior to the use thereof, and the Client
shall not use any such materials if the Subadviser reasonably objects in writing
within ten (10) business days (or such other time as may be mutually agreed)
after receipt thereof. The Client shall ensure that materials prepared by
employees or agents of the Client or its affiliates that refer to the Subadviser
or its clients in any way are consistent with those materials previously
approved by the Subadviser as referenced in the preceding sentence.
7. PURCHASE AND SALE OF SECURITIES
(a) Selection of Brokers. Except to the extent otherwise
instructed in writing by Client in acting on behalf of the Fund, (it being
understood that Client, acting on behalf of the Fund, may, in its absolute
discretion and consistent with the requirements of the 1940 Act and applicable
federal securities laws, direct portfolio transactions for which Subadviser is
responsible to any broker that Client may see fit), Subadviser shall place all
orders for the purchase and sale of securities on behalf of the Client with
brokers or dealers selected by Subadviser, but not with a person affiliated with
Subadviser, as the term "affiliated person" is defined in the Investment
Company Act of 1940 (hereafter an "Affiliate"), unless the transaction is in
compliance with Rules 17e-1 or 10f-3 under the 1940 Act, as applicable, and the
Fund's policies and procedures thereunder, copies of which shall be provided to
Subadviser.
(b) Best Execution. In placing such orders, the
Subadviser will give primary consideration to obtaining the most favorable price
and efficient execution reasonably available under the circumstances and in
accordance with applicable law. In evaluating the terms available for executing
particular transactions for Client and in selecting brokers and dealers to
execute such transactions , the Subadviser may consider, in addition to
commission cost and execution capabilities, the financial stability and
reputation of brokers and dealers and the brokerage and research services (as
those terms are defined in Section 28(e) of the Securities Exchange Act of 1934,
as amended) provided by brokers and dealers. Subadviser is authorized to pay a
broker or dealer who provides such brokerage and research services a commission
for executing a transaction which is in excess of the amount of commission
another broker or dealer would have charged for effecting that transaction if
Subadviser determines in good faith that such commission is reasonable in
relation to the value of the brokerage and research services provided by such
broker or dealer in discharging responsibilities with respect to the Account or
to other client accounts as to which it exercises investment discretion.
(c) Bunching Orders. Client agrees that Subadviser may
aggregate sales and purchase orders of Account with similar orders being made
simultaneously for
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other accounts managed by Subadviser, if in Subadviser's reasonable judgment
such aggregation shall result in an overall economic benefit or more efficient
execution to the Account taking into consideration the advantageous selling or
purchase price, brokerage commission and other expenses. Client acknowledges
that the determination of such economic benefit to the Fund by Subadviser
represents Subadviser's evaluation that the Account is benefited by relatively
better purchase or sales prices, lower commission expenses and beneficial timing
of transactions or a combination of these and other factors. In such event,
allocation of the securities so purchased or sold, as well as expenses incurred
in the transaction, will be made by the Subadviser in a manner the Subadviser
considers to be most equitable and consistent with its fiduciary obligations to
the Fund and to its other clients.
8. INVESTMENT FEES
(a) Fee Schedule. The compensation of the Subadviser for
its services under this Agreement shall be calculated and paid by the Client
from the assets of the Account in accordance with SCHEDULE A hereto.
(b) For purposes of this section 8 and Schedule A, all
payments due to Subadviser shall be solely made from the assets of the
AGGRESSIVE OPPORTUNITIES FUND, a portfolio of the Vantagepoint Funds.
(c) Pro Rata Fee. If the Subadviser should serve for less
than the whole of any calendar quarter, its compensation shall be determined as
provided above on the basis of the ending market value of the Account on the day
in the month in which the termination occurs and shall be payable on a pro rata
basis for the period of the calendar quarter for which it has served as
Subadviser hereunder.
9. BEST EFFORTS; NON-EXCLUSIVITY OF SERVICES
The Subadviser shall devote its best efforts and such time as
it deems necessary to provide prompt and expert service to the Client. The
services of Subadviser to be provided to Client hereunder are not to be deemed
exclusive and Subadviser shall be free to provide similar services for its own
account and the accounts of other persons and to receive compensation for such
services. Client acknowledges that Subadviser and its members, Affiliates and
employees, and Subadviser's other clients may at any time, have, acquire,
increase, decrease, or dispose of positions in the same investments which are at
the same time being held, acquired for or disposed of under this Agreement for
the Fund. Subadviser shall have no obligation to acquire or dispose of a
position in any investment pursuant to this Agreement simply because Subadviser,
its directors, members, Affiliates or employees invest in such a position for
its or their own accounts or for the account of another client.
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10. XXXXXXX XXXXXXX POLICIES AND CODE OF ETHICS
Subadviser hereby represents that it has adopted policies that
meet the requirements of Rule 17j-1 under the Investment Company Act of 1940.
Copies of such policies shall be delivered to the Client, and any violation of
such policies by personnel of the Subadviser who are "access persons" with
respect to the Account shall be reported to the Client annually. In addition,
Subadviser shall certify its compliance with such policies to Client quarterly.
11. INSURANCE
At all times during the term of this Agreement, Client and
Subadviser shall each maintain, at its own cost and expense, professional
liability insurance for errors, omissions, and negligent acts, in an amount and
with such terms as are standard in the financial services industry for an
investment adviser managing the amount of aggregate assets managed by Client or
Subadviser.
12. LIABILITY
(a) In the absence of any gross negligence, malfeasance,
or willful violation of this Agreement, Subadviser shall not be liable to Client
for honest mistakes of judgment or for action or inaction taken in good faith
for a purpose that the Subadviser reasonably believes to be in the best
interests of the Client or the Fund. However, neither this provision nor any
other provision of this Agreement shall constitute a waiver or limitation of any
rights which Client may have under federal or state securities laws.
(b) Client shall indemnify Subadviser against any
liability, damages, or expenses arising out of the negligence, malfeasance or
violation of any applicable law, regulation, or internal policy for which Client
has the primary responsibility of compliance and the responsibility for which
has not been specifically delegated to Subadviser.
13. TERM
This Agreement shall be in effect for an initial term of two
years beginning on the Effective Date. This Agreement may be renewed thereafter
for successive one-year periods if such renewal is approved annually by the
majority of the Fund's Board of Directors, provided that in such event,
continuance shall also be approved by a vote of those members of the Funds'
Board of Directors who are not "Interested persons" as that term is defined in
the Investment Company Act of 1940.
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14. TERMINATION
This Agreement may be terminated by either party hereto,
without the payment of any penalty, immediately upon notice to the other in the
event of a material breach of any provision thereof by the party so notified if
such breach shall not have been cured within a twenty (20) day period after
notice of such breach, or otherwise by Subadviser upon sixty (60) days' written
notice to the Client or by Client upon 30 days' written notice to Subadviser,
except that this Agreement shall automatically terminate in the event of its
assignment, as provided in Paragraph 19, at the discretion of the Client in the
event of Subadviser's change in control as provided in Paragraph 19, upon the
termination of the Funds, or upon termination of Client's advisory agreement
with the Funds. Any termination in accordance with the terms of this Agreement
shall not cause the payment of any penalty. Any such termination shall not
affect the status, obligations or liabilities of any party hereto to the other.
15. REPRESENTATIONS
(a) Subadviser hereby confirms to Client that Subadviser
is registered as an investment adviser under the Investment Advisers Act of
1940, that it has full power and authority to enter into and perform fully the
terms of this Agreement and that the execution of this Agreement on behalf of
Subadviser has been duly authorized and, upon execution and delivery, this
Agreement will be binding upon Subadviser in accordance with its terms.
(b) Client hereby confirms to Subadviser that it is
registered as an investment adviser under the Investment Advisers Act of 1940,
that it has full power and authority to enter into this Agreement and that the
execution of this Agreement on behalf of Client has been fully authorized and,
upon execution and delivery, this Agreement will be binding upon Client in
accordance with its terms.
(c) Subadviser hereby acknowledges that The Vantagepoint
Funds is registered as an open-end investment company under the 1940 Act and is
subject to taxation as a regulated investment company under Subchapter M and the
regulations promulgated thereunder of the Internal Revenue Code.
16. NOTICES
Notices or other notifications given or sent under or pursuant
to this Agreement shall be in writing and be deemed to have been given or sent
if delivered to the party at its address listed below in person or by telex or
telecopy receipt of which is confirmed or by mail or by registered mail, return
receipt requested. The addresses of the parties are:
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CLIENT:
Vantagepoint Investment Advisers, LLC
Attention: Xxxx Xxxxxxxxx, Legal Department
c/o ICMA Retirement Corporation
000 Xxxxx Xxxxxxx Xxxxxx, XX, Xxx. 000
Xxxxxxxxxx,X.X. 20012-4240
SUBADVISER:
X.Xxxx Price Associates, Inc.
Attn: Xxxxx X. Xxxxxxx, Managing Director and
Chief Legal Counsel
000 Xxxx Xxxxx Xxxxxx
Xxxxxxxxx, XX 00000
Each party may change its address by giving notice as herein required.
17. SOLE INSTRUMENT
This instrument constitutes the sole and only agreement of the
parties to it relating to its object and correctly sets forth the rights,
duties, and obligations of each party to the other as of its date. Any prior
agreements, promises, negotiations or representations not expressly set forth in
this Agreement are of no force or effect.
18. WAIVER OR MODIFICATION
No waiver or modification of this Agreement shall be effective
unless reduced to a written document signed by the party to be charged. No
failure to exercise and no delay in exercising, on the part of any party hereto,
of any right, remedy, power or privilege hereunder, shall operate as a waiver
thereof. Only the Chief Executive Officer, has authority on behalf of Client to
modify or waive any of the provisions of the Agreement. It is understood that
certain material amendments may require approval of the Funds' Shareholders.
19. ASSIGNMENT AND CHANGE IN CONTROL
This Agreement shall automatically terminate in the event of
its assignment as defined in the Investment Company Act of 1940. Subadviser
agrees to provide immediate written notice in the event of a change in control.
Such a change in control will entitle, but not require, the Client to terminate
the Agreement immediately or upon notice.
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20. COUNTERPARTS
This Agreement may be executed in counterparts each of which
shall be deemed to be an original and all of which, taken together, shall be
deemed to constitute one and the same instrument.
21. CHOICE OF LAW
This Agreement shall be governed by, and the rights of the
parties arising hereunder construed in accordance with, the laws of the State of
Delaware without reference to principles of conflict of laws and the 1940 Act.
To the extent that the applicable laws of the State of Delaware conflict with
the applicable provisions of the 1940 Act, the latter shall control.
22. CONFIDENTIAL INFORMATION
Any information or recommendations supplied by either party to
this agreement which are not otherwise in the public domain or previously known
to the other party in connection with the performance of obligations hereunder,
are to be regarded as confidential and for use only by the party to which said
information has been communicated, the Custodian or such persons the Client may
designate in connection with the Account. Nothing in this Agreement shall be
construed to prevent Subadviser from giving other entities investment advice
about, or trading on their behalf, in the securities of the Client. However,
each party will maintain the strictest confidence with respect to any financial
or other information relating to the other party and not publicly disclosed
which it obtains in its capacity hereunder and will not disclose it to third
parties unless requested by a regulatory authority or otherwise required by law.
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IN WITNESS WHEREOF, THE PARTIES HERETO EXECUTE THIS AGREEMENT ON
March____________, 2003 and make it effective on the date set forth.
CLIENT SUBADVISER
Vantagepoint X.XXXX PRICE ASSOCIATES,INC.
Investment Advisers, LLC
by: by:
_______________
(signature)
_________________________
Xxxxxx Xxxxxx, President
Date: March__, 2003 Date: March___, 2003
FUNDS
The Vantagepoint Funds
by:
Xxxxxx Xxxxxx, President
Date: March____, 2003
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SCHEDULE A
VANTAGEPOINT INVESTMENT ADVISERS,LLC
VANTAGEPOINT AGGRESSIVE OPPORTUNITIES FUND
FEE SCHEDULE
FOR
X.XXXX PRICE ASSOCIATES, INC.
The Subadviser's quarterly fee shall be calculated based on the value of the
average daily net assets of the Account as provided by the Custodian, based on
the following annual rate.
First $500 Million 0.60%
Above $500 Million 0.55%
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