INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT
THIS
AGREEMENT dated this ____ day of
___, 2007 between Sun Capital Advisers Trust, a Delaware business trust (the
"Trust"), and Sun Capital Advisers LLC, a Delaware limited liability company
(the "Manager").
W
I T N E S S E T H
WHEREAS,
the Trust is registered as an
open-end, diversified, management investment company under the Investment
Company Act of 1940, as amended (the "1940 Act"), and has filed with the
Securities and Exchange Commission (the "Commission") a registration statement
(the "Registration Statement") for the purpose of registering its shares for
public offering under the Securities Act of 1933, as amended (the "1933
Act"),
WHEREAS,
the parties hereto deem it
mutually advantageous that the Manager should be engaged, subject to the
supervision of the Trust's Board of Trustees and officers, to manage the
investment series of the Trust identified as the SC Xxxxxxx Xxxxx Short Duration
Fund (the "Fund").
NOW,
THEREFORE, in consideration of the
mutual covenants and benefits set forth herein, the Trust and the Manager do
hereby agree as follows:
1. (a) The
Manager will regularly provide the Trust with investment research, advice and
supervision and will furnish continuously an investment program for the Fund,
consistent with the investment objective and policies of the
Fund. The Manager will determine from time to time what securities
shall be purchased for the Fund, what securities shall be held or sold by the
Fund and what portion of the Fund's assets shall be held uninvested as cash,
subject always to the provisions of the Trust's Certificate of Trust, Agreement
and Declaration of Trust, By-Laws and its registration statements under the
1940
Act and under the 1933 Act covering the Trust's shares, as filed with the
Commission, and to the investment objective, policies and restrictions of the
Fund, as each of the same shall be from time to time in effect, and subject,
further, to such policies and instructions as the Board of Trustees of the
Trust
may from time to time establish. To carry out such determinations,
the Manager will exercise full discretion and act for the Trust in the same
manner and with the same force and effect as the Trust itself might or could
do
with respect to purchases, sales or other transactions, as well as with respect
to all other things necessary or incidental to the furtherance or conduct of
such purchases, sales or other transactions.
(b) The
Manager will, to the extent reasonably required in the conduct of the business
of the Trust and upon the Trust's request, furnish to the Trust research,
statistical and advisory reports upon the industries, businesses, corporations
or securities as to which such requests shall be made, whether or not the Fund
shall at the time have any investment in such industries, businesses,
corporations or securities. The Manager will use its best efforts in
the preparation of such reports and will endeavor to consult the persons and
sources believed by it to have information available with respect to such
industries, businesses, corporations or entities.
(c) The
Manager will maintain all books and records with respect to the Fund's
securities transactions required by subparagraphs (b)(5), (6), (9) and (10)
and
paragraph (f) of Rule 31a-1 under the 1940 Act (other than those records
being maintained by the custodian or transfer agent appointed by the Trust)
and
preserve such records for the periods prescribed therefor by Rule 31a-2 under
the 1940 Act. The Manager will also provide to the Board of Trustees
such periodic and special reports as the Board may reasonably
request.
(d) The
Manager will act as a liaison among the various service providers to the Fund
and the insurance company or companies to which the Fund offer its shares,
and
provides supervision over all aspects of the Fund’s operations, except those
which are delegated to a custodian, transfer agent or other agent.
2. (a) Except
as otherwise provided herein, the Manager, at its own expense, shall furnish
to
the Trust office space in the offices of the Manager or in such other place
as
may be agreed upon from time to time, and all necessary office facilities,
equipment and personnel for managing the Trust's investments, and shall arrange,
if desired by the Trust, for members of the Manager's organization to serve
as
officers or agents of the Trust.
(b) The
Manager shall pay directly or reimburse the Trust for: (i) the
compensation (if any) of the Trustees who are affiliated with, or "interested
persons" (as defined in the 0000 Xxx) of, the Manager and all officers of the
Trust as such; and (ii) all expenses not hereinafter specifically assumed
by the Trust where such expenses are incurred by the Manager or by the Trust
in
connection with the management of the affairs of, and the investment and
reinvestment of the assets of, the Trust and the Fund.
(c) The
Trust shall assume and shall pay: (i) charges and expenses for
fund accounting, pricing and appraisal services and related overhead, including,
to the extent such services are performed by personnel of the Manager, or its
affiliates, office space and facilities and personnel compensation, training
and
benefits; (ii) the charges and expenses of auditors; (iii) the charges
and expenses of any custodian, administrator, transfer agent, plan agent,
dividend disbursing agent and registrar appointed by the Trust; (iv) issue
and transfer taxes chargeable to the Trust in connection with securities
transactions to which the Trust is a party; (v) insurance premiums,
interest charges, dues and fees for membership in trade associations and all
taxes and corporate fees payable by the Trust to federal, state or other
governmental agencies; (vi) fees and expenses involved in registering and
maintaining registrations of the Trust and/or its shares with the Commission,
state securities agencies and foreign jurisdictions, including the preparation
of prospectuses and statements of additional information for filing with
such regulatory agencies; (vii) all expenses of shareholders' and Trustees'
meetings and of preparing, printing and distributing prospectuses, notices,
proxy statements and all reports to shareholders and to governmental agencies;
(viii) charges and expenses of legal counsel to the Trust and the Trustees;
(ix) if applicable, any distribution fees paid by the Trust in accordance with
Rule 12b-1 promulgated by the Commission pursuant to the 1940
Act; (x) compensation of those Trustees of the Trust who are not
affiliated with or interested persons of the Manager or the Trust (other than
as
Trustees); (xi) the cost of preparing and printing share certificates; and
(xii)
interest on borrowed money, if any.
(d) In
addition to the expenses described in Section 2(c) above, the Trust shall pay
all brokers' and underwriting commissions chargeable to the Trust or the Fund
in
connection with securities transactions to which the Trust is a
party.
3. (a) The
Trust shall pay to the Manager, as compensation for the Manager's services
and
expenses assumed hereunder, a fee with respect to the Fund calculated as a
percentage of the Fund's average daily net assets as set forth in Exhibit
A hereto. Management fees payable hereunder shall be computed
daily and paid monthly in arrears.
In
the event of termination of this
Agreement, the Management Fee shall be computed on the basis of the period
ending on the last business day on which this Agreement is in effect subject
to
a pro rata adjustment based on the number of days elapsed in the current month
as a percentage of the total number of days in such month.
(b) If
the operating expenses of the Fund in any year exceed the limits set by state
securities laws or regulations in states in which shares of the Fund are sold,
the amount payable to the Manager with respect to the Fund under subsection
(a)
above will be reduced (but not below $0), and the Manager shall make other
arrangements concerning expenses but, in each instance, only as and to the
extent required by such laws or regulations. If amounts have already
been advanced to the Manager under this Agreement, the Manager will return
such
amounts to the relevant Fund to the extent required by the preceding
sentence.
(c) In
addition to the foregoing, the Manager may from time to time agree not to impose
all or a portion of its fee otherwise payable hereunder (in advance of the
time
such fee or a portion thereof would otherwise accrue) and/or undertake to pay
or
reimburse the Fund for all or a portion of its expenses not otherwise required
to be borne or reimbursed by the Manager. Any such fee reduction or
undertaking may be discontinued or modified by the Manager at any
time.
4. It
is understood that the Manager may employ one or more sub-investment advisers
(each a "Subadviser") to provide investment advisory services to the Fund by
entering into a written agreement with each such Subadviser; provided,
that any such Subadviser and agreement first shall be approved by the vote
of a
majority of the Trustees, including a majority of the Trustees who are not
"interested persons" (as defined in the 0000 Xxx) of the Trust, the Manager
or
any such Subadviser, at a meeting of Trustees called for the purpose of voting
on such approval and, except as may be otherwise permitted by then current
law
or an exemptive order issued by the Securities and Exchange Commission, by
the
affirmative vote of a "majority of the outstanding voting securities" (as
defined in the 0000 Xxx) of the Fund. The authority given to the
Manager in Sections 1 through 6 hereof may be delegated by it under any
such agreement; provided, that any Subadviser shall be subject to the
same restrictions and limitations on investments and brokerage discretion as
the
Manager. In the event the Manager employs one or more Subadvisers,
the Manager shall oversee and continually evaluate performance of any such
Subadviser and shall make such recommendations to the Trust's Trustees from
time
to time concerning the continuation, termination or modification of any such
arrangements as the Manager deems appropriate. Notwithstanding the
foregoing, the Trust agrees that the Manager shall not be accountable to the
Trust or the Fund for any loss or liability relating to specific investments
directed solely by any Subadviser.
5. The
Manager will not be liable for any error of judgment or mistake of law or for
any loss sustained by reason of the adoption of any investment policy or the
purchase, sale, or retention of any security on the recommendation of the
Manager, whether or not such recommendation shall have been based upon its
own
investigation and research or upon investigation and research made by any other
individual, firm or corporation, but nothing contained herein will be construed
to protect the Manager against any liability to the Trust or the Fund or its
shareholders by reason of willful misfeasance, bad faith or gross negligence
in
the performance of its duties or by reason of its reckless disregard of its
obligations and duties under this Agreement.
6. (a) Nothing
in this Agreement will in any way limit or restrict the Manager or any of its
officers, directors, or employees from buying, selling or trading in any
securities for its or their own accounts or other accounts. The
Manager may act as an investment adviser to any other person, firm or
corporation, and may perform management and any other services for any other
person, association, corporation, firm or other entity pursuant to any contract
or otherwise, and take any action or do any thing in connection therewith or
related thereto; and no such performance of management or other services or
taking of any such action or doing of any such thing shall be in any manner
restricted or otherwise affected by any aspect of any relationship of the
Manager to or with the Trust or deemed to violate or give rise to any duty
or
obligation of the Manager to the Trust except as otherwise imposed by
law. The Trust recognizes that the Manager, in effecting transactions
for its various accounts, may not always be able to take or liquidate investment
positions in the same security at the same time and at the same
price.
(b) In
connection with purchases or sales of securities for the account of the Fund,
neither the Manager nor any of its Trustees, officers or employees will act
as a
principal or agent or receive any commission except as permitted by the 1940
Act. The Manager shall arrange for the placing of all orders for the
purchase and sale of securities for the Fund's account with brokers or dealers
selected by the Manager. In the selection of such brokers or dealers
and the placing of such orders, the Manager is directed at all times to seek
for
the Fund the most favorable execution and net price available except as
described herein. It is also understood that it is desirable for the
Fund that the Manager have access to supplemental investment and market research
and security and economic analyses provided by brokers who may execute brokerage
transactions at a higher cost to the Fund than may result when allocating
brokerage to other brokers on the basis of seeking the most favorable price
and
efficient execution. Therefore, the Manager is authorized to place
orders for the purchase and sale of securities for the Fund with such brokers,
subject to review by the Trust's Trustees from time to time with respect to
the
extent and continuation of this practice. It is understood that the
services provided by such brokers may be useful to the Manager in connection
with its or its affiliates' services to other clients.
(c) On
occasions when the Manager deems the purchase or sale of a security to be in
the
best interest of the Fund as well as another fund or other clients, the Manager,
to the extent permitted by applicable laws and regulations, may aggregate the
securities to be sold or purchased in order to obtain the best execution and
lower brokerage commissions, if any. In such event, allocation of the
securities so purchased or sold, as well as the expenses incurred in the
transaction, will be made by the Manager in the manner it considers to be the
most equitable and consistent with its fiduciary obligations to the Fund and
to
such other funds or other clients.
7. This
Agreement shall become effective on the date hereof and shall remain in force
as
to a Fund until December 31, 2008 and from year to year thereafter, but only
so
long as its continuance is approved annually by a vote of the Trustees of the
Trust voting in person, including a majority of its Trustees who are not parties
to this Agreement or "interested persons" (as defined in the 0000 Xxx) of any
such parties, at a meeting of Trustees called for the purpose of voting on
such
approval or by a vote of a "majority of the outstanding voting securities"
(as
defined in the 0000 Xxx) of the relevant Fund, subject to the right of the
Trust
and the Manager to terminate this contract as provided in Section 8
hereof.
8. Either
party hereto may, without penalty, terminate this Agreement by vote of its
Board
of Trustees or Directors, as the case may be, or by vote of a "majority of
its
outstanding voting securities" (as defined in the 0000 Xxx) and the giving
of 60
days' written notice to the other party.
9. This
Agreement shall automatically terminate in the event of its
assignment. For purposes of this Agreement, the term "assignment"
shall have the meaning given it by Section 2(a)(4) of the 1940 Act.
10. The
Trust agrees that in the event that neither the Manager nor any of its
affiliates acts as an investment adviser to the Trust, the name of the Trust
and
the Fund will be changed to one that does not contain the name "Sun Capital,"
or
"Sun Life" or otherwise suggest an affiliation with the Manager.
11. The
Manager is an independent contractor and not an employee of the Trust for any
purpose. If any occasion should arise in which the Manager gives any
advice to its clients concerning the shares of the Fund, the Manager will act
solely as investment counsel for such clients and not in any way on behalf
of
the Trust or any series thereof.
12. This
Agreement states the entire agreement of the parties hereto, and is intended
to
be the complete and exclusive statement of the terms hereof. It may
not be added to or changed orally, and may not be modified or rescinded except
by a writing signed by the parties hereto and in accordance with the 1940 Act,
when applicable.
13. This
Agreement and all performance hereunder shall be governed by and construed
in
accordance with the laws of The Commonwealth of Massachusetts.
14. Any
term or provision of this Agreement which is invalid or unenforceable in any
jurisdiction shall, as to such jurisdiction be ineffective to the extent of
such
invalidity or unenforceability without rendering invalid or unenforceable the
remaining terms or provisions of this Agreement or affecting the validity or
enforceability of any of the terms or provisions of this Agreement in any other
jurisdiction.
15. The
parties to this Agreement acknowledge and agree that all liabilities arising
hereunder, whether direct or indirect, and of any and every nature whatsoever
shall be satisfied solely out of the assets of the Fund and that no Trustee,
officer or holder of shares of beneficial interest of the Trust shall be
personally liable for any of the foregoing liabilities.
16. This
Agreement may be executed simultaneously in two or more counterparts, each
of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.
IN
WITNESS WHEREOF, the parties hereto
have caused this Agreement to be executed by their duly authorized officers
as
of the day and year first above written.
By:____________________________
Xxxxx
M. A. Xxxxxxxx
President
|
|
SUN
CAPITAL ADVISERS LLC
|
By:____________________________
Xxxxx
X. Xxxxx
Chief
Financial Officer
By:____________________________
Xxxxx
X. Xxxxxx
Secretary
::ODMA\PCDOCS\LEGALDOCS\83862\1
Exhibit
A
Fees
SC
Xxxxxxx Sachs Short Duration Fund
Management
Fee as a
percentage
Asset
Level of average daily
net
assets
All 0.65%
::ODMA\PCDOCS\LEGALDOCS\83862\1
