INVESTMENT SUB-ADVISORY AGREEMENT
COLUMBIA FUNDS SERIES TRUST
THIS AGREEMENT is made as of September 30, 2005 by and between COLUMBIA
MANAGEMENT ADVISORS, LLC, a Delaware limited liability company (the "Adviser"),
XXXXXXX INVESTMENT PARTNERS, L.P, a Delaware limited partnership (the
"Sub-Adviser"), and COLUMBIA FUNDS SERIES TRUST, a Delaware statutory trust (the
"Trust"), on behalf of those series of the Trust now or hereafter identified on
Schedule I (each a "Fund" and collectively, the "Funds").
WHEREAS, the Trust is registered with the Securities and Exchange
Commission (the "Commission") as an open-end management investment company under
the Investment Company Act of 1940, as amended (the "1940 Act");
WHEREAS, the Adviser is registered with the Commission as an investment
adviser under the Investment Advisers Act of 1940, as amended (the "Advisers
Act");
WHEREAS, the Sub-Adviser is also registered with the Commission as an
investment adviser under the Advisers Act;
WHEREAS, the Adviser and the Trust have entered into an investment advisory
agreement (the "Investment Advisory Agreement"), pursuant to which the Adviser
manages the investment operations of each Fund and may delegate certain duties
of the Adviser to one or more investment sub-adviser(s); and
WHEREAS, the Adviser, with the approval of the Board of Trustees of the
Trust (the "Board"), including a majority of the Trustees who are not
"interested persons" (defined herein) of any party to this Agreement, desires to
delegate to the Sub-Adviser the duty to manage the portfolio investments of the
Funds;
NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, it is agreed between the parties hereto as follows:
1. APPOINTMENT OF SUB-ADVISER. The Adviser hereby appoints the Sub-Adviser and
the Sub-Adviser hereby agrees to manage the portfolio investments of each
Fund subject to the terms of this Agreement and subject to the supervision
of the Adviser and the Board.
2. SERVICES OF SUB-ADVISER. The Sub-Adviser shall perform all services
necessary for the management of the portfolio investments of each Fund,
including but not limited to:
(a) Managing, in its discretion, the investment and reinvestment of all
assets, now or hereafter acquired by each Fund, including determining what
securities and other investments are to be purchased or sold for each Fund
and executing transactions accordingly;
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(b) Transmitting trades to each Fund's custodian for settlement in
accordance with each Fund's procedures and as may be directed by the Trust;
(c) Assisting in the preparation of all shareholder communications,
including shareholder reports, and participating in shareholder relations;
(d) Making determinations as to the manner in which voting rights and/or
any other rights pertaining to each Fund's securities holdings shall be
exercised; provided, however, that any such determinations shall be subject
to any policies, procedures or directives approved by the Board and
provided to the Sub-Adviser;
(e) Attending and participating in discussions and meetings with the
Adviser with respect to Fund investment policies and procedures, and
carrying out such investment policies and procedures as are approved by the
Board or by the Adviser under authority delegated by the Board to the
Adviser and provided to the Sub-Adviser;
(f) Supplying reports, evaluations, analyses, statistical data and
information to the Adviser, the Board or to the Funds' officers and other
service providers as the Adviser or the Board may reasonably request from
time to time or as may be necessary or appropriate for the operation of the
Trust as an open-end investment company or as necessary to comply with
Section 3(a) of this Agreement;
(g) Maintaining all required books and records with respect to the
investment decisions and securities transactions for each Fund;
(h) Furnishing any and all other services, subject to review by the Board,
that the Adviser from time to time determines to be necessary or useful to
perform its obligations under the Investment Advisory Agreement or as the
Board may reasonably request from time to time.
3. RESPONSIBILITIES OF SUB-ADVISER. In carrying out its obligations under this
Agreement, the Sub-Adviser agrees that it will:
(a) Comply with all applicable law, including but not limited to the 1940
Act and the Advisers Act, the rules and regulations of the Commission
thereunder, and the conditions of any order affecting the Trust or a Fund
issued thereunder;
(b) Use the same skill and care in providing such services as it uses in
providing services to other fiduciary accounts for which it has investment
responsibilities;
(c) The Sub-Adviser acknowledges that the Funds may engage in transactions
with certain investment sub-advisers in the Columbia Funds Family (and
their affiliated persons) in reliance on exemptions under Rule 10f-3, Rule
12d3-1, Rule 17a-10 and Rule 17e-1 under the 1940 Act. Accordingly, the
Sub-Adviser hereby agrees that it will not consult with any other
investment sub-adviser of a Columbia Fund in the Columbia Funds Family
concerning transactions for a Fund in securities or other investments,
other than for purposes of complying with the conditions of Rule 12d3-1(a)
and (b). With
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respect to a Fund with one or more investment sub-advisers in addition to
the Sub-Adviser, the Sub-Adviser shall be limited to providing investment
advice only with respect to the portion of the Fund's assets as the Adviser
may determine from time to time, and shall not consult with any other
investment sub-adviser to the Fund that is a principal underwriter or an
affiliated person of a principal underwriter concerning transactions for
the Fund in securities or other investments.
(d) Place, or arrange for the placement of, all orders pursuant to its
investment determinations for the Funds either directly with the issuer or
with any broker or dealer (including any broker or dealer affiliated with
the Trust, the Adviser or any of their affiliates; with listings of such
affiliated brokers and dealers to be provided to the Sub-Adviser by the
Adviser on an annual basis, and more frequently as changes occur). In
executing portfolio transactions and selecting brokers or dealers, the
Sub-Adviser will use its best efforts to seek on behalf of each Fund the
best overall terms available. In assessing the best overall terms available
for any transaction, the Sub-Adviser shall consider all factors that it
deems relevant, including the breadth of the market in the security, the
price of the security, the financial condition and execution capability of
the broker or dealer, and the reasonableness of the commission, if any,
both for the specific transaction and on a continuing basis. In evaluating
the best overall terms available, and in selecting the broker or dealer to
execute a particular transaction, the Sub-Adviser may also consider whether
such broker or dealer furnishes research and other information or services
to the Sub-Adviser; and
(e) Adhere to the investment objective, strategies and policies and
procedures of the Trust adopted on behalf of each Fund including, but not
limited to, those stated in each of their prospectuses and statements of
additional information.
4. CONFIDENTIALITY OF INFORMATION. Each party agrees that it will treat
confidentially all information provided by another party regarding such
other party's business and operations which is not generally known by third
parties nor otherwise generally disclosed publicly by such other party,
including without limitation the investment activities or holdings of a
Fund, except as is otherwise mutually agreed upon by the parties. Each
party agrees that it will not unreasonably withhold its agreement to
disclosure of investment activities or holdings. All confidential
information provided by a party hereto shall not be disclosed to any
unaffiliated third party without the prior consent of the providing party.
The foregoing shall not apply to any information that is public when
provided or thereafter becomes public through disclosure by the party about
whom the information relates or becomes public without any wrongful act of
the party providing such information or which is required to be disclosed
by any regulatory authority in the lawful and appropriate exercise of its
jurisdiction over a party, by any auditor of the parties hereto, by
judicial or administrative process or by applicable law or regulation.
5. SERVICES NOT EXCLUSIVE. The services furnished by the Sub-Adviser hereunder
are deemed not to be exclusive, and the Sub-Adviser shall be free to
furnish similar services to others so long as its provision of services
under this Agreement is not impaired thereby. To the extent that the
purchase or sale of securities or other investments of the same issuer may
be deemed by the Sub-Adviser to be suitable for two or more accounts
managed by the Sub-Adviser, the available
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securities or investments may be allocated in a manner believed by the
Sub-Adviser to be equitable to each account. It is recognized that in some
cases this procedure may adversely affect the price paid or received by a
Fund or the size of the position obtainable for or disposed of by a Fund.
6. DELIVERY OF DOCUMENTS. The Trust will provide the Sub-Adviser with copies,
properly certified or authenticated, of each of the following:
(a) the Trust's Certificate of Trust, as filed with the Secretary of State
of Delaware, and Declaration of Trust (such Declaration of Trust, as
presently in effect and as from time to time amended, is herein called the
"Declaration of Trust");
(b) the Trust's Bylaws, if any;
(c) the most recent prospectus(es) and statement(s) of additional
information relating to each Fund (such prospectus(es) together with the
related statement(s) of additional information, as presently in effect and
all amendments and supplements thereto, are herein called the
"Prospectus"); and
(d) any and all applicable policies and procedures approved by the Board.
The Trust will promptly furnish the Sub-Adviser with copies of any and all
amendments of or additions or supplements to the foregoing.
7. BOOKS AND RECORDS. In compliance with the requirements of Rule 31a-3 under
the 1940 Act, the Sub-Adviser hereby agrees that all records that it
maintains for each Fund under this Agreement are the property of the Trust
and further agrees to surrender promptly to the Trust or the Adviser any of
such records upon request. The Sub-Adviser further agrees to preserve for
the periods prescribed by Rule 31a-2 under the 1940 Act the records
required to be maintained by it under this Agreement.
8. EXPENSES OF THE FUNDS. Except to the extent expressly assumed by the
Sub-Adviser and except to any extent required by law to be paid or
reimbursed by the Sub-Adviser, the Sub-Adviser shall have no duty to pay
any ordinary operating expenses incurred in the organization and operation
of the Funds. Ordinary operating expenses include, but are not limited to,
brokerage commissions and other transaction charges, taxes, legal,
auditing, printing, or governmental fees, other Fund service providers'
fees and expenses, expenses relating to the issue, sale (including any
sales loads), redemption and repurchase of shares, expenses of registering
and qualifying shares for sale, expenses relating to Board and shareholder
meetings, and the cost of preparing and distributing reports and notices to
shareholders. The Sub-Adviser shall pay all other expenses incurred by it
in connection with its services under this Agreement.
9. COMPENSATION. Except as otherwise provided herein, for the services
provided to each Fund and the expenses assumed pursuant to this Agreement,
the Adviser will pay the Sub-Adviser and the Sub-Adviser will accept as
full compensation therefor a fee determined in accordance with Schedule I
attached hereto. It is understood that the Adviser shall be solely
responsible
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for compensating the Sub-Adviser for performing any of the duties delegated
to the Sub-Adviser and the Sub-Adviser agrees that it shall have no claim
against the Trust or any Fund with respect to compensation under this
Agreement.
10. LIABILITY OF SUB-ADVISER. The Sub-Adviser shall not be liable for any error
of judgment or mistake of law or for any loss suffered by the Adviser or
the Trust in connection with the performance of this Agreement, except that
the Sub-Adviser shall be liable to the Adviser or the Trust for any loss
resulting from a breach of fiduciary duty with respect to the receipt of
compensation for services or any loss resulting from willful misfeasance,
bad faith or negligence on the part of the Sub-Adviser in the performance
of its duties or from reckless disregard by it of its obligations and
duties under this Agreement.
11. TERM AND APPROVAL. This Agreement will become effective as of the date set
forth herein above, and shall continue in effect until the second
anniversary of its effective date. This Agreement will become effective
with respect to each additional Fund as of the date set forth on Schedule I
when each such Fund is added thereto. The Agreement shall continue in
effect for a Fund after the second anniversary of the effective date for
successive annual periods ending on each anniversary of such date, provided
that the continuation of the Agreement is specifically approved for the
Fund at least annually:
(a)(i) by the Board or (ii) by the vote of "a majority of the
outstanding voting securities" of the Fund (as defined in Section
2(a)(42) of the 0000 Xxx); and
(b) by the affirmative vote of a majority of the Trustees of the
Trust who are not parties to this Agreement or "interested
persons" (as defined in the 0000 Xxx) of a party to this
Agreement (other than as Trustees of the Trust), by votes cast in
person at a meeting specifically called for such purpose.
12. TERMINATION. This Agreement may be terminated without payment of any
penalty at any time by:
(a) the Trust with respect to a Fund, by vote of the Board or by vote of a
majority of a Fund's outstanding voting securities, upon sixty (60) days'
written notice to the other parties to this Agreement; or
(b) the Adviser or the Sub-Adviser with respect to a Fund, upon sixty (60)
days' written notice to the other parties to this Agreement.
Any party entitled to notice may waive the notice provided for herein. This
Agreement shall automatically terminate in the event of its assignment, unless
an order is issued by the 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
of such order. For the purposes of this paragraph, the definitions contained in
Section 2(a) of the 1940 Act and the applicable rules under the 1940 Act shall
apply.
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13. CODE OF ETHICS. The Sub-Adviser represents that it has adopted a written
code of ethics complying with the requirements of Rule 17j-1 under the 1940
Act and will provide the Adviser or the Trust with a copy of such code, any
amendments or supplements thereto and its policies and/or procedures
implemented to ensure compliance therewith.
14. INSURANCE. The Sub-Adviser shall maintain for the term of this Agreement
and provide evidence thereof to the Trust or the Adviser a blanket bond and
professional liability (error and omissions) insurance in an amount
reasonably acceptable to Adviser.
15. REPRESENTATIONS AND WARRANTIES. Each party to this Agreement represents and
warrants that the execution, delivery and performance of its obligations
under this Agreement are within its powers, have been duly authorized by
all necessary actions and that this Agreement constitutes a legal, valid
and binding obligation enforceable against it in accordance with its terms.
The Sub-Adviser further represents and warrants that it is duly registered
as an investment adviser under the Advisers Act.
16. AMENDMENT OF THIS AGREEMENT. No provision of this Agreement may be changed,
waived, discharged or terminated orally, except by an instrument in writing
signed by the party against which enforcement of the change, waiver,
discharge or termination is sought.
17. NOTICES. Any notices under this Agreement shall be in writing, addressed
and delivered or mailed postage paid to such address as may be designated
for the receipt of such notice. Until further notice, it is agreed that the
address of the Trust shall be Xxx Xxxxxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx,
00000, Attention: Secretary, that of the Adviser shall be Xxx Xxxxxxxxx
Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx, 00000, Attention: President, and that of the
Sub-Adviser shall be Xxxxxxx Investment Partners, L.P., 00000 Xx Xxxxxx
Xxxx, Xxx Xxxxx, Xxxxxxxxxx 00000, Attention: General Counsel. The
Sub-Adviser agrees to promptly notify the Adviser and the Trust, and the
Adviser and the Trust agree to notify the Sub-Adviser, in writing of the
occurrence of any event which could have a material impact on the
performance of another party's duties under this Agreement, including but
not limited to (i) the occurrence of any event which could disqualify the
Adviser or the Sub-Adviser from serving as an investment adviser pursuant
to Section 9 of the 1940 Act; (ii) any material change in the notifying
party's business activities; (iii) any event that would constitute a change
in control of the notifying party; (iv) any change in the portfolio manager
or portfolio management team of a Fund; (v) the existence of any pending or
threatened audit, investigation, examination, complaint or other inquiry
(other than routine audits or regulatory examinations or inspections)
relating to any Fund; and (vi) any material violation of the notifying
party's code of ethics.
18. RELEASE. The names "Columbia Funds Series Trust" and "Trustees of Columbia
Funds Series Trust" refer respectively to the Trust created by the
Declaration of Trust and the Trustees as Trustees but not individually or
personally. All parties hereto acknowledge and agree that any and all
liabilities of the Trust arising, directly or indirectly, under this
Agreement will be satisfied solely out of the assets of the Trust and that
no Trustee, officer or shareholder shall be personally liable for any such
liabilities. All persons dealing with any Fund of the Trust must look
solely to the property belonging to such Fund for the
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enforcement of any claims against the Trust. Nothing in this Section 18
shall be deemed to limit the liabilities to which a Trustee, officer or
shareholder of the Trust may be subject under applicable law arising from
such person's own wrongful conduct.
19. MISCELLANEOUS. This Agreement contains the entire understanding of the
parties hereto. Each provision of this Agreement is intended to be
severable. If any provision of this Agreement shall be held or made invalid
by a court decision, statute, rule or otherwise, the remainder of this
Agreement shall not be affected thereby.
20. GOVERNING LAW. This Agreement shall be governed by, and construed in
accordance with, Delaware law and the federal securities laws, including
the 1940 Act and the Advisers Act.
21. COUNTERPARTS. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original.
22. USE OF THE NAME "COLUMBIA FUNDS". The Sub-Adviser agrees that it will not
use the name "Columbia Funds", any derivative thereof, or the name of the
Adviser, the Trust or any Fund except in accordance with such policies and
procedures as may be mutually agreed to in writing.
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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their officers designated below as of the day and year first above
written.
COLUMBIA FUNDS SERIES TRUST
on behalf of the Funds
By: /s/ Xxxxxxxxxxx X. Xxxxxx
------------------------------------
Xxxxxxxxxxx X. Xxxxxx
President
COLUMBIA MANAGEMENT ADVISORS, LLC
By: /s/ Xxxxx Xxxxxx
------------------------------------
Xxxxx Xxxxxx
Executive Vice President
XXXXXXX INVESTMENT PARTNERS, L.P.
By: /s/ Xxxxx X. Xxxxxxx
------------------------------------
Name: Xxxxx X. Xxxxxxx
Title: Chief Executive Officer
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SCHEDULE I
The Adviser shall pay the Sub-Adviser, as full compensation for services
provided and expenses assumed hereunder, a sub-advisory fee for each Fund,
computed daily and payable monthly at the annual rates listed below as a
percentage of the average daily net assets of the Fund:
FUND RATE OF COMPENSATION EFFECTIVE DATE
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Columbia Global Value Fund 0.50% of the first 4/9/01
$1,000,000,000 in assets;
0.45% of assets in excess
of $1,000,000,000
Approved: November 21, 2002
Last Amended: September 30, 2005
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