INVESTMENT MANAGEMENT AGREEMENT
EX-99.d.1
AGREEMENT, made by and between DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, a Delaware statutory trust (the “Trust”), on
behalf of each series of shares of beneficial interest of the Trust that is
listed on Exhibit A to this Agreement, as that Exhibit may be amended from time
to time (each such series of shares is hereinafter referred to as a “Fund” and,
together with other series of shares listed on such Exhibit, the “Funds”), and
DELAWARE MANAGEMENT COMPANY, a series of Delaware Management Business
Trust, a Delaware statutory trust (the “Investment Manager”).
WITNESSETH:
WHEREAS, the Trust has been organized and
operates as an investment company registered under the Investment Company Act of
1940, as amended (the “1940 Act”);
WHEREAS, each Fund engages in the business of
investing and reinvesting its assets in securities;
WHEREAS, the Investment Manager is registered
under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), as
an investment adviser and engages in the business of providing investment
management services; and
WHEREAS, the Trust, on behalf of each Fund,
and the Investment Manager desire to enter into this Agreement so that the
Investment Manager may provide investment management services to each Fund.
NOW, THEREFORE, in consideration of the mutual
covenants herein contained, and each of the parties hereto intending to be
legally bound, it is agreed as follows:
1. The Trust hereby employs the Investment
Manager to manage the investment and reinvestment of each Fund’s
assets and to administer its affairs, subject to the
direction of the Trust’s Board of Trustees and officers for the period and on
the terms hereinafter set forth. The Investment Manager hereby accepts such
employment and agrees during such period to render the services and assume the
obligations herein set forth for the compensation herein provided. The
Investment Manager shall for all purposes herein be deemed to be an independent
contractor, and shall, unless otherwise expressly provided and authorized, have
no authority to act for or represent the Trust or the Funds in any way, or in
any way be deemed an agent of the Trust or the Funds. The Investment
Manager shall regularly make decisions as to what securities and other
instruments to purchase and sell on behalf of each Fund and shall effect the
purchase and sale of such investments in furtherance of each Fund’s investment
objectives and policies and shall furnish the Board of Trustees of the Trust
with such information and reports regarding each Fund’s investments as the
Investment Manager deems appropriate or as the Trustees of the Trust may
reasonably request. Such decisions and services shall include exercising
discretion regarding any voting rights, rights to consent to corporate actions
and any other rights pertaining to each Fund’s investment
securities.
2. The
Trust shall conduct its own business and affairs and shall bear the
expenses and salaries necessary and incidental thereto, including, but not in
limitation of the foregoing, the costs incurred in: the maintenance of its
corporate existence; the maintenance of its own books, records and procedures;
dealing with its own shareholders; the payment of dividends; transfer of shares,
including issuance, redemption and repurchase of shares; preparation of share
certificates; reports and notices to shareholders; calling and holding of
shareholders’ and trustees’ meetings;
miscellaneous office expenses; brokerage commissions; custodian fees; legal,
auditing, fund accounting, and financial administration fees; taxes; federal and
state registration fees; and other costs and expenses approved by the Board of
Trustees. Trustees, officers and employees of the Investment Manager may be
directors, trustees, officers and employees of any of the investment companies
within the Delaware Investments family of funds (including the Trust). Trustees,
officers and employees of the Investment Manager who are directors, trustees,
officers and/or employees of these investment companies shall not receive any
compensation from such companies for acting in such dual capacity.
In the
conduct of the respective businesses of the parties hereto and in the
performance of this Agreement, the Trust and Investment Manager may share
facilities common to each, which may include legal and accounting personnel,
with appropriate proration of expenses between them.
3. (a) Subject to the primary objective of
obtaining the best execution, the Investment Manager may place orders for the purchase and sale of
portfolio securities and other instruments with such broker/dealers selected by
the Investment Manager who provide statistical, factual and financial
information and services to the Trust, to the Investment Manager, to any
sub-adviser (as defined in Paragraph 5 hereof, a “Sub-Adviser”) or to any other
fund or account for which the Investment Manager or any Sub-Adviser provides
investment advisory services and/or with broker/dealers who sell shares of the
Trust or who sell shares of any other investment company (or series thereof) for
which the Investment Manager or any Sub-Adviser provides investment advisory
services. Broker/dealers who sell shares of any investment companies or series
thereof for which the Investment Manager or Sub-Adviser provides investment
advisory services shall only receive orders for the purchase or sale of
portfolio securities to the extent that the placing of such orders is in
compliance with the rules of the Securities and Exchange Commission (the “SEC”)
and Financial Industry Regulatory Authority, Inc. (“FINRA”) and does not take
into account such broker/dealer’s promotion or sale of such shares.
(b)
Notwithstanding the provisions of subparagraph (a) above and subject to such
policies and procedures as may be adopted by the Board of Trustees and officers
of the Trust, the Investment Manager may cause a Fund to pay a member of an
exchange, broker or dealer an amount of commission for effecting a securities
transaction in excess of the amount of commission another member of an exchange,
broker or dealer would have charged for effecting that transaction, in such
instances where the Investment Manager has determined in good faith that such
amount of commission was reasonable in relation to the value of the brokerage
and research services provided by such member, broker or dealer, viewed in terms
of either that particular transaction or the Investment Manager’s overall
responsibilities with respect to the Trust and to other investment companies (or
series thereof) and other advisory accounts for which the Investment Manager
exercises investment discretion.
4. As
compensation for the investment services to be rendered to a particular Fund by
the Investment Manager under the provisions of this Agreement, the Trust shall
pay monthly to the Investment Manager exclusively from that Fund’s assets, a fee
based on the average daily net assets of that Fund during the month. Such fee
shall be calculated in accordance with the fee schedule applicable to that Fund
as set forth in Exhibit A hereto.
If this Agreement is terminated prior to the
end of any calendar month with respect to a particular Fund, the management fee
for such Fund shall be prorated for the portion of any month in which this
Agreement is in effect with respect to such Fund according to the proportion
which the number of calendar days during which the Agreement is in effect bears
to the number of calendar days in the month, and shall be payable within 10
calendar days after the date of termination.
5. The Investment Manager may, at its expense,
select and contract with one or more investment advisers registered under the
Advisers Act (“Sub-Advisers”) to perform some or all of the services for a Fund
for which it is responsible under this Agreement. The Investment Manager will
compensate any Sub-Adviser for its services to the Fund. The Investment Manager
may terminate the services of any Sub-Adviser at any time in its sole
discretion, and shall at such time assume the responsibilities of such
Sub-Adviser unless and until a successor Sub-Adviser is selected and the
requisite approval of the Fund’s shareholders, if required, is obtained. The
Investment Manager will continue to have responsibility for all advisory
services furnished by any Sub-Adviser.
6. The services to be rendered by the
Investment Manager to the Trust under the provisions of this Agreement are not
to be deemed to be exclusive. The Investment Manager, its trustees, officers,
employees, agents and shareholders may engage in other businesses, may render
investment advisory services to other investment companies, or to any other
corporation, association, firm or individual, and may render underwriting
services to the Trust or to any other investment company, corporation,
association, firm or individual, so long as the Investment Manager’s other
activities do not impair its ability to render the services provided for in this
Agreement.
7. It is understood and agreed that so long as
the Investment Manager and/or its advisory affiliates shall continue to serve as
the Trust’s investment adviser, other investment companies as may be sponsored
or advised by the Investment Manager or its affiliates may have the right
permanently to adopt and to use the words “Delaware,” “Delaware Investments” or
“Delaware Group” in their names and in the names of any series or class of
shares of such funds.
8. In
the absence of willful misfeasance, bad faith, gross negligence, or a reckless
disregard of the performance of its duties as the Investment Manager to the
Trust, the Investment Manager shall not be subject to liability to the Trust or
to any shareholder of the Trust for any action 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, or otherwise.
9. (a)
This Agreement shall be executed and become effective as of the date written
below, and shall become effective with respect to a particular Fund as of the
effective date set forth in Exhibit A for that Fund, only if approved by the
vote of a majority of the outstanding voting securities of that Fund. It shall
continue in effect for an initial period of two years for each Fund and may be
renewed thereafter only so long as such renewal and continuance is specifically
approved at least annually by the Board of Trustees or by the vote of a majority
of the outstanding voting securities of that Fund and only if the terms and the
renewal hereof have been approved by the vote of a majority of the Trustees of
the Trust who are not parties hereto or interested persons of any such party
(“Independent Trustees”), cast in person at a meeting called for the purpose of
voting on such approval.
(b)
This Agreement (and Exhibit A hereto) may be amended without the approval of a
majority of the outstanding voting securities of the Fund if the amendment
relates solely to a management fee reduction or other change that is permitted
or not prohibited under then current federal law, rule, regulation or SEC staff
interpretation thereof to be made without shareholder approval. This Agreement
may be amended from time to time pursuant to a written agreement executed by the
Trust, on behalf of the applicable Fund, and the Investment
Manager.
(c) This Agreement may be terminated as to any
Fund by the Trust at any time, without the payment of a penalty, on sixty days’
written notice to the Investment Manager of the Trust’s intention to do so,
pursuant to action by the Board of Trustees of the Trust or pursuant to the vote
of a majority of the outstanding voting securities of the affected Fund. The
Investment Manager may terminate this Agreement at any time, without the payment
of a penalty, on sixty days’ written notice to the Trust of its intention to do
so. Upon termination of this Agreement, the obligations of all the parties
hereunder shall cease and terminate as of the date of such termination, except
for any obligation to respond for a breach of this Agreement committed prior to
such termination, and except for the obligation of the Trust to pay to the
Investment Manager the fee provided in Paragraph 4 hereof, prorated to the date
of termination. This Agreement shall automatically terminate in the event of its
assignment.
10.
This Agreement shall extend to and bind the administrators, successors and
permitted assigns of the parties hereto.
11.
For the purposes of this Agreement, (i) the terms “vote of a majority of the
outstanding voting securities”; “interested persons”; and “assignment” shall
have the meaning ascribed to them in the 1940 Act, and (ii) references to the
SEC and FINRA shall be deemed to include any successor regulators.
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by
their duly authorized officers as of the 16th day of March, 2010.
| DELAWARE MANAGEMENT | DELAWARE GROUP GLOBAL & | |||||
| COMPANY, a series of Delaware | INTERNATIONAL FUNDS | |||||
| Management Business Trust | on behalf of the Funds listed on Exhibit A | |||||
| By | /s/ Xxxxx X. X'Xxxxxx | By | /s/ Xxxxxxx X. Xxxxx | |||
| Name | Xxxxx X. X’Xxxxxx | Name | Xxxxxxx X. Xxxxx | |||
| Title | Sr. Vice President | Title | President | |||
EXHIBIT A
THIS EXHIBIT to the Investment Management Agreement between DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS and DELAWARE MANAGEMENT COMPANY, a series of Delaware Management Business Trust
(the “Investment Manager”), entered into as of the 16th day of March, 2010 (the “Agreement”) lists
the Funds for which the Investment Manager provides investment management
services pursuant to this Agreement, along with the management fee rate schedule
for each Fund and the date on which the Agreement became effective for each
Fund.
| Management Fee Schedule (as a | ||
| Fund Name | Effective Date | percentage of average daily net assets) |
| Annual Rate | ||
| Delaware Focus Global Growth Fund | January 4, 2010 | 0.85% on first $500 million |
| 0.80% on next $500 million | ||
| 0.75% on next $1.5 billion | ||
| 0.70% on assets in excess of $2.5 billion | ||
| Delaware International Value Equity | January 4, 2010 | 0.85% on first $500 million |
| Fund | 0.80% on next $500 million | |
| 0.75% on next $1.5 billion | ||
| 0.70% on assets in excess of $2.5 billion | ||
| Delaware Macquarie Global | January 4, 2010 | 0.90% on first $500 million |
| Infrastructure Fund | 0.85% on next $500 million | |
| 0.80% on next $1.5 billion | ||
| 0.75% on assets in excess of $2.5 billion | ||
| Delaware Global Value Fund | January 4, 2010 | 0.85% on first $500 million |
| 0.80% on next $500 million | ||
| 0.75% on next $1.5 billion | ||
| 0.70% on assets in excess of $2.5 billion | ||
| Delaware Emerging Markets Fund | January 4, 2010 | 1.25% on first $500 million |
| 1.20% on next $500 million | ||
| 1.15% on next $1.5 billion | ||
| 1.10% on assets in excess of $2.5 billion |
