FOREIGN ASSETS
DELEGATION AGREEMENT
This FOREIGN ASSETS DELEGATION AGREMEENT (the "Agreement") is made this
2nd day of May, 2003 by and between A I M ADVISORS, INC., a Delaware corporation
("AIM") and each registered investment company (the "Investment Companies") and
its respective portfolios as listed on Schedule A attached hereto (the "Funds"),
as the same may be amended from time to time.
W I T N E S S E T H:
WHEREAS, AIM has agreed to accept responsibility for the selection of
foreign countries in which the Funds may invest; and
WHEREAS, AIM has agreed to accept responsibility for selecting eligible
foreign securities depositories in such countries;
NOW THEREFORE, AIM hereby agrees as follows:
1. DEFINITIONS.
A. "ELIGIBLE FOREIGN SECURITIES DEPOSITORY" means a foreign
Securities Depository that meets the eligibility requirements
of Paragraph 5 hereof.
B. "FOREIGN ASSETS" means any of a Fund's investments (including
foreign currencies) for which the primary market is outside
the United States, currency contracts that are settled outside
the United States, and such cash and cash equivalents as are
reasonably necessary to effect the Fund's transactions in such
investments.
C. "PREVAILING COUNTRY RISKS" means all factors reasonably
related to the systemic risk of holding Foreign Assets in a
particular country, including but not limited to, such
country's political environment; economic and financial
infrastructure (including any Eligible Foreign Securities
Depositories operating in the country); prevailing or
developing custody and settlement practices; laws and
regulations applicable to the safekeeping and recovery of
Foreign Assets held in custody in that country; and factors
compromising "prevailing country risk", including the effects
of foreign law on the safekeeping of Fund assets, the
likelihood of expropriation, nationalization, freezing or
confiscation of the Fund's assets and any reasonably
foreseeable difficulties in repatriating the Fund's assets.
D. "PRIMARY CUSTODIAN" means State Street Bank and Trust Company.
E. "SECURITIES DEPOSITORY" means a system for the central
handling of securities where all securities of any particular
class or series of any issuer deposited within the system are
treated as fungible and may be transferred or pledged by
bookkeeping entry without physical delivery of the securities.
A Securities Depository includes an Eligible Foreign
Securities Depository.
FOREIGN COUNTRY SELECTION. AIM shall select the foreign countries in which a
Fund invests. AIM may determine that an issuer is located in a particular
country based on various factors, including the following; (i) the issuer is
organized under the laws of and maintains a principal
office in that country; (ii) the issuer derives 50% or more of its total
revenues from business in that country; (iii) the primary market for the
issuer's securities is in that country. In addition, in determining whether to
maintain assets of Fund in a foreign country, AIM shall consider Prevailing
Country Risks. AIM may rely on information provided by computerized information
services, such as Bloomberg terminals, in making the foregoing determinations.
AIM may also rely on information and opinions provided by the Foreign Custody
Manager in making such determinations. AIM may add or delete foreign countries
to or from the list of approved foreign countries from time to time, as
determined by the AIM employees who are portfolio managers of the Funds.
ELIGIBLE FOREIGN SECURITIES DEPOSITORIES SELECTION. AIM shall select Eligible
Foreign Securities Depositories for the placement and maintenance of Foreign
Assets. AIM shall not make any such selection unless and until is has determined
that a Fund's custody arrangements provide reasonable safeguards against the
custody risks associated with maintaining assets with the Eligible Foreign
Securities Depository, including:
A. Risk Analysis and Monitoring.
(1) The Fund and AIM have received from the Primary
Custodian (or its agent) an analysis of the custody
risks associated with maintaining assets with the
Eligible Foreign Securities Depository; and
(2) The contract between the Fund and the Primary
Custodian requires the Primary Custodian (or its
agent) to monitor the custody risks associated with
maintaining assets with the Eligible Foreign
Securities Depository on a continuing basis, and
promptly notify the Fund and AIM of any material
change in these risks.
B. Exercise of Care. The contract between the Fund and the
Primary Custodian states that the Primary Custodian will agree
to exercise reasonable care, prudence, and diligence in
performing the requirements of Paragraphs 3(A)(1) and (2)
above, or adhere to a higher standard of care.
WITHDRAWAL FROM FOREIGN SECURITIES DEPOSITORY. If a custody arrangement with a
foreign Securities Depository no longer meets the eligibility requirements set
forth Paragraph 5 below, AIM shall withdraw the Fund's Foreign Assets from the
Securities Depository as soon as reasonably practicable.
DETERMINATION OF ELIGIBILITY. AIM shall determine a foreign Securities
Depository to be an Eligible Foreign Securities Depository if it:
F. Acts as or operates a system for the central handling of
securities or equivalent book-entries in the country where it
is incorporated, or a transnational system for the central
handling of securities or equivalent book-entries;
G. Is regulated by a foreign financial regulatory authority as
defined under section 2(a)(50) of the Investment Company Act
of 1940, as amended (the 1940 Act);
H. Holds assets for the custodian that participates in the system
on behalf of the Fund under safekeeping conditions no less
favorable than the conditions that apply to other
participants;
I. Maintains records that identify the assets of each participant
and segregates the system's own assets from the assets of
participants;
J. Provides periodic reports to its participants with respect to
its safekeeping of assets, including notices of transfers to
or from any participant's account; and
K. Is subject to periodic examination by regulatory authorities
or independent accountants.
REPORTS AND OTHER INFORMATION.
L. QUARTERLY REPORTS. AIM will submit to the Boards of
Directors/Trustees a quarterly report listing all newly
approved countries and all countries in which a Fund invested
for the first time during the preceding quarter. Such report
shall include a revised Appendix 1 to the Foreign Custody and
Country Selection Procedures, if applicable, listing the
approved countries. AIM will submit to the Boards of
Directors/Trustees a quarterly report indicating changes to
Eligible Foreign Securities Depositories to the extent such
report is not provided by the Primary Custodian.
M. OTHER REPORTS. AIM will notify the Boards of
Directors/Trustees in writing of any material change in the
Eligible Foreign Securities Depositories for a Fund that has
not been reported by the Primary Custodian promptly after the
occurrence of the material change.
SUPERSEDES PRIOR AGREEMENT. This Agreement supersedes and replaces the Foreign
Country Selection and Mandatory Securities Depository Responsibilities
Delegation Agreement dated September 9, 1998, as amended.
LIABILITY OF AIM AND THE FUNDS. In the absence of willful misfeasance, bad
faith, gross negligence or reckless disregard of obligations or duties hereunder
on the part of AIM or any of its officers, directors or employees, AIM shall not
be subject to liability to the Funds or to any shareholder of the Funds for any
act or omission in the course of, or connected with, rendering services
hereunder or for any losses that may be sustained in connection with the
responsibilities delegated hereunder. Any liability of AIM to one Fund shall not
automatically impart liability on the part of AIM to any other Fund. No Fund
shall be liable for the obligations of any other Fund.
DELEGATION TO SUB-ADVISORS. AIM may delegate its duties under this Agreement to
the sub-advisors for certain Funds for which AIM serves as investment adviser.
Such sub-advisors shall have the same obligations and shall be subject to the
same standard of care as AIM is under this Agreement.
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.
On behalf of itself and on behalf of its Funds listed on Schedule A
hereto, as such Schedule may be amended from time to time:
AIM ADVISOR FUNDS
AIM EQUITY FUNDS
AIM FLOATING RATE FUND
AIM FUNDS GROUP
AIM GROWTH SERIES
AIM INTERNATIONAL FUNDS, INC.
AIM INVESTMENT FUNDS
AIM INVESTMENT SECURITIES FUNDS
AIM SELECT REAL ESTATE INCOME FUND
AIM SERIES TRUST
AIM SPECIAL OPPORTUNITIES FUNDS
AIM SUMMIT FUND
AIM VARIABLE INSURANCE FUNDS
GLOBAL INVESTMENT PORTFOLIO
Attest: /s/ P. Xxxxxxxx Xxxxx By: /s/ Xxxxxx X. Xxxxxx
---------------------- -----------------------------
Assistant Secretary Name: Xxxxxx X. Xxxxxx
Title: President
A I M ADVISORS, INC.
Attest: /s/ P. Xxxxxxxx Xxxxx By: /s/ Xxxxx X. Xxxxxx
--------------------- -----------------------------
Assistant Secretary Name: Xxxxx X. Xxxxxx
Title: Senior Vice President
As revised 2005
SCHEDULE A
TO THE
FOREIGN ASSETS DELEGATION AGREEMENT
AIM CORE ALLOCATION PORTFOLIO SERIES AIM INVESTMENT FUNDS
o AIM Developing Markets Fund
AIM EQUITY FUNDS o AIM Global Health Care Fund
o AIM Trimark Endeavor Fund
o AIM Aggressive Growth Fund o AIM Trimark Fund
o AIM Blue Chip Fund o AIM Trimark Small Companies Fund
o AIM Capital Development Fund
o AIM Charter Fund AIM INVESTMENT SECURITIES FUNDS
o AIM Constellation Fund
o AIM Diversified Dividend Fund o AIM Global Real Estate Fund
o AIM Large Cap Basic Value Fund o AIM High Yield Fund
o AIM Large Cap Growth Fund o AIM Income Fund
o AIM Mid Cap Growth Fund o AIM Intermediate Government Fund
o AIM Select Basic Value Fund o AIM Real Estate Fund
o AIM Xxxxxxxxxx Fund o AIM Short Term Bond Fund
o AIM Total Return Bond Fund
AIM FLOATING RATE FUND
AIM SELECT REAL ESTATE INCOME FUND
AIM FUNDS GROUP
AIM SPECIAL OPPORTUNITIES FUNDS
o AIM Basic Balanced Fund
o AIM European Small Company Fund o AIM Opportunities I Fund
o AIM Global Value Fund o AIM Opportunities II Fund
o AIM International Small Company Fund o AIM Opportunities III Fund
o AIM Mid Cap Basic Value Fund
o AIM Premier Equity Fund AIM SUMMIT FUND
o AIM Select Equity Fund
o AIM Small Cap Equity Fund AIM VARIABLE INSURANCE FUNDS
AIM GROWTH SERIES o AIM V.I. Aggressive Growth Fund
o AIM V.I. Balanced Fund
o AIM Basic Value Fund o AIM V.I. Basic Value Fund
o AIM Global Equity Fund o AIM V.I. Blue Chip Fund
o AIM Mid Cap Core Equity Fund o AIM V.I. Capital Appreciation Fund
o AIM Small Cap Growth Fund o AIM V.I. Capital Development Fund
o AIM V.I. Core Equity Fund
AIM INTERNATIONAL MUTUAL FUNDS o AIM V.I. Dent Demographic Trends Fund
o AIM V.I. Diversified Income Fund
o AIM Asia Pacific Growth Fund o AIM V.I. Global Utilities Fund
o AIM European Growth Fund o AIM V.I. Government Securities Fund
o AIM Global Aggressive Growth Fund o AIM V.I. Growth Fund
o AIM Global Growth Fund o AIM V.I. High Yield Fund
o AIM International Growth Fund o AIM V.I. International Growth Fund
o AIM V.I. Large Cap Growth Fund
o AIM V.I. Mid Cap Core Equity Fund
o AIM V.I. New Technology Fund
o AIM V.I. Premier Equity Fund
o AIM V.I. Small Cap Equity Fund
