American Century Capital Portfolios, Inc.
MANAGEMENT AGREEMENT
THIS MANAGEMENT AGREEMENT ("Agreement") is made as of the 1st day of August, 2008, by and
between AMERICAN CENTURY CAPITAL PORTFOLIOS, INC., a Maryland corporation (hereinafter called the
"Company"), and AMERICAN CENTURY INVESTMENT MANAGEMENT, INC., a Delaware corporation (hereinafter called
the "Investment Manager").
WHEREAS, a majority of those members of the Board of Directors of the Company (collectively,
the "Board of Directors", and each individually a "Director") who are not "interested persons" as
defined in Investment Company Act (hereinafter referred to as the "Independent Directors"), during its
most recent annual evaluation of the terms of the Agreement pursuant to Section 15(c) of the Investment
Company Act, has approved the continuance of the Agreement as it relates to each series of shares of the
Company set forth on Schedule A attached hereto (the "Funds").
WHEREAS, the parties hereto now desire to amend and restate the Agreement to reflect the
effective date of the agreement.
NOW, THEREFORE, IN CONSIDERATION of the mutual promises and agreements herein contained, the
parties agree as follows:
1. Investment Management Services. The Investment Manager shall supervise the investments of each
class of each Fund. In such capacity, the Investment Manager shall either directly, or through
the utilization of others as contemplated by Section 7 below, maintain a continuous investment
program for each Fund, determine what securities shall be purchased or sold by each Fund,
secure and evaluate such information as it deems proper and take whatever action is necessary
or convenient to perform its functions, including the placing of purchase and sale orders. In
performing its duties hereunder, the Investment Manager will manage the portfolio of all
classes of shares of a particular Fund as a single portfolio.
2. Compliance with Laws. All functions undertaken by the Investment Manager hereunder shall at
all times conform to, and be in accordance with, any requirements imposed by:
(a) the Investment Company Act and any rules and regulations promulgated thereunder;
(b) any other applicable provisions of law;
(c) the Articles of Incorporation of the Company as amended from time to time;
(d) the Bylaws of the Company as amended from time to time;
(e) the Multiple Class Plan; and
(f) the registration statement(s) of the Company, as amended from time to time, filed
under the Securities Act of 1933 and the Investment Company Act.
3. Board Supervision. All of the functions undertaken by the Investment Manager hereunder shall
at all times be subject to the direction of the Board of Directors, its executive committee, or
any committee or officers of the Company acting under the authority of the Board of Directors.
4. Payment of Expenses. The Investment Manager will pay all of the expenses of each class of each
Fund, other than interest, taxes, brokerage commissions, extraordinary expenses, the fees and
expenses of the Independent Directors (including counsel fees), and expenses incurred in
connection with the provision of shareholder services and distribution services under a plan
adopted pursuant to Rule 12b-1 under the Investment Company Act. The Investment Manager will
provide the Company with all physical facilities and personnel required to carry on the
business of each class of each Fund that it shall manage, including but not limited to office
space, office furniture, fixtures and equipment, office supplies, computer hardware and
software and salaried and hourly paid personnel. The Investment Manager may at its expense
employ others to provide all or any part of such facilities and personnel.
5. Account Fees. The Company, by resolution of the Board of Directors, including a majority of
the Independent Directors, may from time to time authorize the imposition of a fee as a direct
charge against shareholder accounts of any class of one or more of the Funds, such fee to be
retained by the Company or to be paid to the Investment Manager to defray expenses which would
otherwise be paid by the Investment Manager in accordance with the provisions of paragraph 4 of
this Agreement. At least sixty days prior written notice of the intent to impose such fee must
be given to the shareholders of the affected Fund or Fund class.
6. Management Fees.
(a) In consideration of the services provided by the Investment Manager, each class of
each Fund shall pay to the Investment Manager a management fee that is calculated as
described in this Section 6 using the fee schedules set forth on Schedule A.
(b) Definitions
(1) An "Investment Team" is the Portfolio Managers that the Investment Manager has
designated to manage a given portfolio.
(2) An "Investment Strategy" is the processes and policies implemented by the
Investment Manager for pursuing a particular investment objective managed by
an Investment Team.
(3) A "Primary Strategy Portfolio" is each Fund, as well as any other series of
any other registered investment company for which the Investment Manager, or
an affiliated investment advisor, serves as the investment manager and for
which American Century Investment Services, Inc. serves as the distributor.
(4) A "Secondary Strategy Portfolio" of a Fund is another account managed by the
Investment Manager that is managed by the same Investment Team but is not a
Primary Strategy Portfolio.
(5) The "Secondary Strategy Share Ratio" of a Fund is calculated by dividing the
net assets of the Fund by the sum of the Primary Strategy Portfolios that
share a common Investment Strategy.
(6) The "Secondary Strategy Assets" of a Fund is the sum of the net assets of the
Fund's Secondary Strategy Portfolios multiplied by the Fund's Secondary
Strategy Share Ratio.
(7) The "Investment Strategy Assets" of a Fund is the sum of the net assets of the
Fund and the Fund's Secondary Strategy Assets.
(8) The "Per Annum Fee Dollar Amount" is the dollar amount resulting from applying
the applicable Fee Schedule for a class of a Fund using the Investment
Strategy Assets.
(9) The "Per Annum Fee Rate" for a class of a Fund is the percentage rate that
results from dividing the Per Annum Fee Dollar Amount for the class of a Fund
by the Investment Strategy Assets of the Fund.
(c) Daily Management Fee Calculation. For each calendar day, each class of each Fund shall
accrue a fee calculated by multiplying the Per Annum Fee Rate for that class by the
net assets of the class on that day, and further dividing that product by 365 (366 in
leap years).
(d) Monthly Management Fee Payment. On the first business day of each month, each class of
each Fund shall pay the management fee to the Investment Manager for the previous
month. The fee for the previous month shall be the sum of the Daily Management Fee
Calculations for each calendar day in the previous month.
(e) Additional Series or Classes. In the event that the Board of Directors shall determine
to issue any additional series or classes of shares for which it is proposed that the
Investment Manager serve as investment manager, the Company and the Investment Manager
may enter into an Addendum to this Agreement setting forth the name of the series
and/or class, the Fee Schedule for each and such other terms and conditions as are
applicable to the management of such series and/or classes, or, in the alternative,
enter into a separate management agreement that relates specifically to such series
and/or classes of shares.
7. Subcontracts. In rendering the services to be provided pursuant to this Agreement, the
Investment Manager may, from time to time, engage or associate itself with such persons or
entities as it determines is necessary or convenient in its sole discretion and may contract
with such persons or entities to obtain information, investment advisory and management
services, or such other services as the Investment Manager deems appropriate. Any fees,
compensation or expenses to be paid to any such person or entity shall be paid by the
Investment Manager, and no obligation to such person or entity shall be incurred on behalf of
the Company. Any arrangement entered into pursuant to this paragraph shall, to the extent
required by law, be subject to the approval of the Board of Directors, including a majority of
the Independent Directors, and the shareholders of the Company.
8. Continuation of Agreement. This Agreement shall become effective for each Fund as of the date
first set forth above and shall continue in effect for each Fund until August 1, 2009, unless
sooner terminated as hereinafter provided, and shall continue in effect from year to year
thereafter for each Fund only as long as such continuance is specifically approved at least
annually (i) by either the Board of Directors or by the vote of a majority of the outstanding
voting securities of such Fund, and (ii) by the vote of a majority of the Directors who are not
parties to the Agreement or interested persons of any such party, cast in person at a meeting
called for the purpose of voting on such approval. The annual approvals provided for herein
shall be effective to continue this Agreement from year to year if given within a period
beginning not more than 90 days prior to August 1st of each applicable year, notwithstanding
the fact that more than 365 days may have elapsed since the date on which such approval was
last given.
9. Termination. This Agreement may be terminated, with respect to any Fund, by the Investment
Manager at any time without penalty upon giving the Company 60 days' written notice, and may be
terminated, with respect to any Fund, at any time without penalty by the Board of Directors or
by vote of a majority of the outstanding voting securities of each class of each Fund on 60
days' written notice to the Investment Manager.
10. Effect of Assignment. This Agreement shall automatically terminate with respect to any Fund in
the event of its assignment by the Investment Manager. The term "assignment" for this purpose
having the meaning defined in Section 2(a)(4) of the Investment Company Act.
11. Other Activities. Nothing herein shall be deemed to limit or restrict the right of the
Investment Manager, or the right of any of its officers, directors or employees (who may also
be a director, officer or employee of the Company), to engage in any other business or to
devote time and attention to the management or other aspects of any other business, whether of
a similar or dissimilar nature, or to render services of any kind to any other corporation,
firm, individual or association.
12. Standard of Care. In the absence of willful misfeasance, bad faith, gross negligence, or
reckless disregard of its obligations or duties hereunder on the part of the Investment
Manager, it, as an inducement to it to enter into this Agreement, shall not be subject to
liability to the Company or to any shareholder of the Company for any act or omission in the
course of, or connected with, rendering services hereunder or for any losses that may be
sustained in the purchase, holding or sale of any security.
13. Separate Agreement. The parties hereto acknowledge that certain provisions of the Investment
Company Act, in effect, treat each series of shares of an investment company as a separate
investment company. Accordingly, the parties hereto hereby acknowledge and agree that, to the
extent deemed appropriate and consistent with the Investment Company Act, this Agreement shall
be deemed to constitute a separate agreement between the Investment Manager and each Fund.
14. Use of the Name "American Century". The name "American Century" and all rights to the use of
the name "American Century" are the exclusive property of American Century Proprietary
Holdings, Inc. ("ACPH"). ACPH has consented to, and granted a non-exclusive license for, the
use by the Company of the name "American Century" in the name of the Company and any Fund.
Such consent and non-exclusive license may be revoked by ACPH in its discretion if ACPH, the
Investment Manager, or a subsidiary or affiliate of either of them is not employed as the
investment adviser of each Fund. In the event of such revocation, the Company and each Fund
using the name "American Century" shall cease using the name "American Century" unless
otherwise consented to by ACPH or any successor to its interest in such name.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective
duly authorized officers as of the day and year first above written.
American Century Investment Management, Inc. American Century Capital Portfolios, Inc.
/s/ Xxxx X. Xxxxx /s/ Xxxxxxx X. Xxxxxxxxxxx
Xxxx X. Xxxxx Xxxxxxx X. Xxxxxxxxxxx
Senior Vice President
Schedule A
Fee Schedules
===================== ==================== ========================================================================================
Investment
Series Strategy Assets Fee Schedule by Class
===================== ==================== ----------------------------------------------------------------------------------------
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Investor Institu-tional Advisor A B C R
===================== ==================== =========== ============ ============= ============ =========== =========== ============
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Value Fund First $2.5 billion 1.000% 0.800% n/a 1.000% 1.000% 1.000% 1.000%
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Next $2.5 billion 0.950% 0.750% n/a 0.950% 0.950% 0.950% 0.950%
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Next $2.5 billion 0.900% 0.700% n/a 0.900% 0.900% 0.900% 0.900%
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Over $7.5 billion 0.850% 0.650% n/a 0.850% 0.850% 0.850% 0.850%
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Small Cap Value First $2.5 billion 1.250% 1.050% 1.250% n/a n/a n/a n/a
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Fund Over $2.5 billion 1.000% 0.800% 1.000% n/a n/a n/a n/a
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Mid Cap Value Fund All Assets 1.000% 0.800% 1.000% n/a n/a n/a 1.000%
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Large Company First $1.0 billion 0.900% 0.700% n/a 0.900% 0.900% 0.900% 0.900%
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Value Fund Next $4.0 billion 0.800% 0.600% n/a 0.800% 0.800% 0.800% 0.800%
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Over $5.0 billion 0.700% 0.500% n/a 0.700% 0.700% 0.700% 0.700%
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Equity Income Fund First $2.5 billion 1.000% 0.800% n/a 1.000% 1.000% 1.000% 1.000%
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Next $2.5 billion 0.950% 0.750% n/a 0.950% 0.950% 0.950% 0.950%
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Next $5.0 billion 0.900% 0.700% n/a 0.900% 0.900% 0.900% 0.900%
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Next $5.0 billion 0.850% 0.650% n/a 0.850% 0.850% 0.850% 0.850%
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Over $15.0 billion 0.800% 0.600% n/a 0.800% 0.800% 0.800% 0.800%
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Equity Index Fund First $1.0 billion 0.490% 0.290% n/a n/a n/a n/a n/a
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Next $1.0 billion 0.470% 0.270% n/a n/a n/a n/a n/a
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Next $1.0 billion 0.455% 0.255% n/a n/a n/a n/a n/a
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Next $1.0 billion 0.445% 0.245% n/a n/a n/a n/a n/a
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Next $1.0 billion 0.435% 0.235% n/a n/a n/a n/a n/a
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Over $5.0 billion 0.430% 0.230% n/a n/a n/a n/a n/a
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Real Estate Fund First $100 million 1.200% 1.000% n/a 1.200% 1.200% 1.200% 1.200%
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Next $900 million 1.150% 0.950% n/a 1.150% 1.150% 1.150% 1.150%
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Next $1 billion 1.100% 0.900% n/a 1.100% 1.100% 1.100% 1.100%
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Over $2 billion 1.050% 0.850% n/a 1.050% 1.050% 1.050% 1.050%
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
NT Mid Cap Value All Assets n/a 0.800% n/a n/a n/a n/a
Fund n/a
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
--------------------- -------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
NT Large Company First $1.0 billion n/a 0.700% n/a n/a n/a n/a n/a
.................... ........... ............ ............. ............ ........... ........... ............
.................... ........... ............ ............. ............ ........... ........... ............
Value Fund Next $4.0 billion n/a 0.600% n/a n/a n/a n/a n/a
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
-------------------- ----------- ------------ ------------- ------------ ----------- ----------- ------------
Over $5.0 billion n/a 0.500% n/a n/a n/a n/a n/a
===================== ==================== =========== ============ ============= ============ =========== =========== ============
American Century Capital Portfolios, Inc.
AMENDMENT TO INVESTMENT SUBADVISORY AGREEMENT
THIS AMENDMENT is made as of the 15th day of August, 2008, by and among AMERICAN CENTURY CAPITAL PORTFOLIOS,
INC., a Maryland corporation ("ACCP"), acting on behalf of American Century Real Estate Fund (the "ACRE Fund"), a
series of shares of ACCP, AMERICAN CENTURY INVESTMENT MANAGEMENT, INC. ("ACIM"), a Delaware corporation, and X.X.
XXXXXX INVESTMENT MANAGEMENT INC. (the "Subadvisor"), a Delaware corporation.
WHEREAS, ACCP, ACIM and the Subadvisor are parties to a to an Investment Subadvisory Agreement dated
January 1, 2000, as amended January 1, 2007 (the "Agreement"); and
WHEREAS, the parties hereto have agreed to modify the management fee paid to the Subadvisor in
consideration of its services rendered to the ACRE Fund as provided in the Agreement.
NOW, THEREFORE, IN CONSIDERATION of the mutual promises and agreements herein contained, the parties
agree as follows:
1. Revised Fee Schedule. Section 8(a) the Agreement is hereby deleted in its entirety and the
following is substituted in lieu thereof:
(a) In consideration of the services rendered pursuant to this Agreement, ACIM will pay the
Subadvisor a per annum management fee (the "Applicable Fee") as follows:
----------------------------------------------- ---------------------------------- --------------------------
Name of Series Aggregate Net Assets of Series Applicable Fee Rate
----------------------------------------------- ---------------------------------- --------------------------
----------------------------------------------- ---------------------------------- --------------------------
American Century Real Estate Fund First $500 million 0.37%
----------------------------------------------- ---------------------------------- --------------------------
----------------------------------------------- ---------------------------------- --------------------------
Next $500 million 0.33%
----------------------------------------------- ---------------------------------- --------------------------
----------------------------------------------- ---------------------------------- --------------------------
Over $1 billion 0.30%
----------------------------------------------- ---------------------------------- --------------------------
2. Counterparts. This Amendment may be executed in two or more counterparts, each of which shall
be an original and all of which together shall constitute one instrument.
3. Full Force and Effect. Except as expressly supplemented, amended or consented to hereby, all
of the representations, warranties, terms, covenants and conditions of the Agreement shall remain unchanged and
continue to be in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed by their officers
designated below effective as of the day and year first written above.
X.X. XXXXXX INVESTMENT AMERICAN CENTURY CAPITAL
MANAGEMENT INC. PORTFOLIOS, INC.
By: /s/ Xxxx X. Xxxxxxx By: /s/ Xxxx X. Xxxxx
Name: Xxxx X. Xxxxxxx Name: Xxxx X. Xxxxx
Title: Managing Director Title: Asst. Vice President
AMERICAN CENTURY
INVESTMENT
MANAGEMENT, INC.
By: /s/ Xxxx X. Xxxxx
Name: Xxxx X. Xxxxx
Title: Asst. Vice President
