EXHIBIT 99. (H)(1)
EXPENSE LIMITATION AGREEMENT
This EXPENSE LIMITATION AGREEMENT is made as of the 4/th/ day of
September, 2002 by and between BT INVESTMENT FUNDS, a Massachusetts Business
trust (the "Trust"), CASH MANAGEMENT PORTFOLIO, TREASURY MONEY PORTFOLIO,
INTERNATIONAL EQUITY PORTFOLIO, CAPITAL APPRECIATION PORTFOLIO, ASSET MANAGEMENT
PORTFOLIO and BT INVESTMENT PORTFOLIOS, each a New York trust (each a "Portfolio
Trust" and, collectively, the "Portfolio Trusts"), DEUTSCHE ASSET MANAGEMENT,
INC., a Delaware corporation (the "Adviser"), and INVESTMENT COMPANY CAPITAL
CORPORATION, a Maryland corporation (the "Administrator"), with respect to the
following:
WHEREAS, the Adviser serves as the Trust's Investment Adviser pursuant
to Investment Advisory Agreements dated July 30, 2002, the Adviser serves as the
Portfolio Trusts' Investment Adviser pursuant to Investment Advisory Agreements
dated July 30, 2002, and the Administrator serves as the Trust's and Portfolio
Trusts' Administrator pursuant to Administration and Services Agreements dated
July 1, 2001 (collectively, the "Agreements").
NOW, in consideration of the mutual covenants herein contained and
other good and valuable consideration, the receipt whereof is hereby
acknowledged, the parties hereto agree as follows:
1. The Adviser and Administrator agree to waive their fees and/
or reimburse expenses to the extent necessary so that the
ordinary annual operating expenses for each of the Trust's
series or classes set forth on Exhibit A, as may be amended
from time to time, (each a "Fund") do not exceed the
percentage of average daily net assets set forth on Exhibit A
for the 16 month period from such Fund's fiscal year end. For
the purposes of this Agreement, ordinary operating expenses
for a Fund generally consist of costs not specifically borne
by the Adviser, Administrator or a Fund's principal
underwriter, including investment advisory fees,
administration and services fees, fees for necessary
professional services, amortization of organizational expenses
and costs associated with regulatory compliance and
maintaining legal existence and shareholder relations, but
excluding: (a) transactions costs (such as brokerage
commissions and dealer and underwriter spreads); (b) interest
charges on fund borrowings; (c) taxes; (d) litigation and
indemnification costs; and (e) extraordinary expenses.
Extraordinary expenses are those that are unusual or expected
to recur only infrequently, including, but not limited to (i)
expenses of the reorganization, restructuring or merger of a
Fund or class or the acquisition of all or substantially all
of the assets of another fund or class; (ii) expenses of
holding, and soliciting proxies for, a meeting of shareholders
of a Fund or class (except to the extent relating to routine
items such as the election of trustees or the approval of
independent public accountants); and (iii) expenses of
converting to a new custodian, transfer agent or other service
provider.
2. This Agreement shall be effective as to each Fund as of the
date the Fund commences operations after this Agreement shall
have been approved by the Board of Trustees of the Trust with
respect to that Fund and, unless sooner terminated as provided
herein, shall continue in effect as to such Fund for
successive 16 month periods from such Fund's fiscal year end,
provided such continuance is specifically approved at least
annually by the vote of a majority of the Board of Trustees of
the Trust. Upon the termination of any of the Agreements, this
Agreement shall automatically terminate with respect to the
affected Fund.
EXHIBIT 99. (H)(1)
3. Any question of interpretation of any term or provision of
this Agreement having a counterpart in or otherwise derived
from a term or provision of the Investment Company Act of
1940, as amended (the "1940 Act") shall be resolved by
reference to such term or provision of the 1940 Act and to
interpretations thereof, if any, by the United States Courts
or in the absence of any controlling decision of any such
court, by rules, regulations or orders of the Securities and
Exchange Commission ("SEC") issued pursuant to said Act. In
addition, where the effect of a requirement of the 1940 Act
reflected in any provision of this Agreement is revised by
rule, regulation or order of the SEC, such provision shall be
deemed to incorporate the effect of such rule, regulation or
order. Otherwise the provisions of this Agreement shall be
interpreted in accordance with the laws of Massachusetts.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate by their respective officers as of the day and year first
above written.
BT INVESTMENT FUNDS
CASH MANAGEMENT PORTFOLIO
TREASURY MONEY PORTFOLIO
INTERNATIONAL EQUITY PORTFOLIO
CAPITAL APPRECIATION PORTFOLIO
ASSET MANAGEMENT PORTFOLIO
BT INVESTMENT PORTFOLIOS
Attest: /s/ Xxx X. Xxxxxx By: /s/ Xxxxxx X. Xxxxxx
Name: Xxx X. Xxxxxx Name: Xxxxxx X. Xxxxxx
Title: Secretary
DEUTSCHE ASSET MANAGEMENT, INC.
Attest: /s/ Xxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxx
Name: Xxx X. Xxxxxx Name: Xxxxxxx X. Xxxx
Title: Vice President
INVESTMENT COMPANY CAPITAL
CORPORATION
Attest: /s/ Xxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxx
Name: Xxx X. Xxxxxx Name: Xxxxxxx X. Xxxx
Title: President
EXHIBIT 99. (H)(1)
Exhibit A
Ordinary Fund Operating
Expenses
Fund (as a percentage of average daily
net assets)
Cash Management Fund Investment 0.75%
Tax Free Money Fund Investment 0.75%
NY Tax Free Money Fund Investment 0.75%
Treasury Money Fund Investment 0.75%
International Equity Fund - Investment Class 1.50%
International Equity Fund - Class A 1.50%
International Equity Fund - Class B 2.25%
International Equity Fund - Class C 2.25%
Mid Cap Fund - Investment Class 1.25%
Mid Cap Fund - Institutional Class 1.00%
Lifecycle Short Range Fund - Investment Class 1.00%
Lifecycle Mid Range Fund - Investment Class 1.00%
Lifecycle Long Range Fund - Investment Class 1.00%
Small Cap Fund - Investment Class 1.25%
PreservationPlus Income Fund - Investment Class 1.50%
PreservationPlus Income Fund - Class A Shares 1.50%
PreservationPlus Income Fund - Class C Shares 2.25%
Quantitative Equity Fund - Investment Class 0.90%
Quantitative Equity Fund - Institutional Class 0.65%
Global Equity Fund - Institutional Class 1.15%
Global Equity Fund - Class A Shares 1.40%
Global Equity Fund - Class B Shares 2.15%
Global Equity Fund - Class C Shares 2.15%
