EX-99.(K)(1) 11 d714181dex99k1.htm FUND ADMINISTRATION AGREEMENT EXECUTION COPY ADMINISTRATION, BOOKKEEPING AND PRICING SERVICES AGREEMENT
EXECUTION COPY
ADMINISTRATION, BOOKKEEPING AND
PRICING SERVICES AGREEMENT
THIS AGREEMENT is made as of May , 2014, between Xxxxxxx Institutional Access Real Estate Fund, organized as a Delaware statutory trust (the “Fund”), and ALPS Fund Services, Inc., a Colorado corporation (“ALPS”).
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(a) | The Fund hereby appoints ALPS to provide the administrative, bookkeeping and pricing services set forth in Appendix B hereto, as amended from time to time, upon the terms and conditions hereinafter set forth. ALPS hereby accepts such appointment and agrees to furnish such specified services. ALPS shall for all purposes be deemed to be an independent contractor and shall, except as otherwise expressly authorized in this Agreement, have no authority to act for or represent the Fund in any way or otherwise be deemed an agent of the Fund. |
(b) | ALPS may employ or associate itself with a person or persons or organizations as ALPS believes to be desirable in the performance of its duties hereunder; provided that, in such event, the compensation of such person or persons or organizations shall be paid by and be the sole responsibility of ALPS, and the Fund shall bear no cost or obligation with respect thereto; and provided further that ALPS shall not be relieved of any of its obligations under this Agreement in such event and shall be responsible for all acts of any such person or persons or organizations taken in furtherance of this Agreement to the same extent it would be for its own acts. |
ALPS Form 110508
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(a) | In consideration for the services to be performed hereunder by ALPS, the Fund shall pay ALPS the fees listed in Appendix C hereto. Notwithstanding anything to the contrary in this Agreement, fees billed for the services to be performed by ALPS under this Agreement are based on information provided by the Fund and such fees are subject to renegotiation between the parties to the extent such information is determined to be materially different from what the Fund originally provided to ALPS. During each year of the Term, unless the parties shall otherwise agree and provided that the service mix and volumes remain consistent with those provided in the previous year of this Agreement, the fee that would be charged for the same services would be the base fee rate (as reflected in Appendix C) subject to an annual cost of living adjustment based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, for the Denver-Boulder-Greeley area, as published bimonthly by the United States Department of Labor, Bureau of Labor Statistics, or, in the event that publication of such index is terminated, any successor or substitute index, appropriately adjusted, acceptable to all parties. |
(b) | ALPS will bear all expenses in connection with the performance of its services under this Agreement, except as otherwise provided herein. ALPS will not bear any of the costs of Fund personnel. Other Fund expenses incurred shall be borne by the Fund or the Fund’s investment adviser, including, but not limited to, initial organization and offering expenses; litigation expenses; taxes; costs of preferred shares; expenses of conducting repurchase offers for the purpose of repurchasing Fund shares; transfer agency and custodial expenses; interest; Fund directors’ fees; brokerage fees and commissions; state and federal registration fees; advisory fees; insurance premiums; fidelity bond premiums; Fund and investment advisory related legal expenses; costs of maintenance of Fund existence; printing and delivery of materials in connection with meetings of the Fund’s directors; printing and mailing of shareholder reports, prospectuses, statements of additional information other offering documents, supplements, proxy materials and other communications to shareholders; securities pricing data and expenses in connection with electronic filings with the U.S. Securities and Exchange Commission (the “SEC”). |
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(a) | Advice of the Fund and Service Providers. If ALPS is in doubt as to any action it should or should not take, ALPS may request directions, advice or instructions from the Fund or, as applicable, the Fund’s investment adviser, custodian or other service providers. |
(b) |
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(c) |
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(a) | ALPS shall be obligated to act in good faith and to exercise commercially reasonable care and diligence in the performance of its duties under this Agreement. |
(b) | In the absence of willful misfeasance, bad faith, negligence or reckless disregard by ALPS in the performance of its duties, obligations or responsibilities set forth in this Agreement, ALPS and its affiliates, including their respective officers, directors, agents and employees, shall not be liable for, and the Fund agrees to indemnify, defend and hold harmless such persons from, all taxes, charges, expenses, disbursements, assessments, claims, losses, damages, penalties, actions, suits, judgments and liabilities (including, without limitation, attorneys’ fees and disbursements and liabilities arising under applicable federal and state laws) arising directly or indirectly from the following: |
(i) | the inaccuracy of factual information furnished to ALPS by the Fund or the Fund’s investment adviser, custodian or other service providers; |
(ii) | any error of judgment or mistake of law or for any loss suffered by the Fund in connection with the matters to which this Agreement relates; |
(iii) | any wrongful act of the Fund or any of its employees; |
(iv) | losses, delays, failure, errors, interruption or loss of data occurring directly or indirectly by reason of circumstances beyond its reasonable control, including without limitation, acts of God, action or inaction of civil or military authority, war, terrorism, riot, fire, flood, sabotage, labor disputes, elements of nature or non-performance by a third party; |
(v) | ALPS’ reliance on any properly received instruction, direction, notice, instrument or other information that ALPS reasonably believes to be genuine; |
(vi) | loss of data or service interruptions caused by equipment failure; or |
(vii) | any other action or omission to act which ALPS takes in connection with the provision of services to the Fund. |
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(c) | ALPS shall indemnify and hold harmless the Fund, the Fund’s investment adviser and their respective officers, directors, agents, and employees from and against any and all taxes, charges, expenses, disbursements, assessments, claims, losses, damages, penalties, actions, suits, judgments and liabilities (including, without limitation, attorneys’ fees and disbursements and liabilities arising under applicable federal and state laws) arising directly or indirectly from ALPS’ willful misfeasance, bad faith, negligence or reckless disregard in the performance of its duties, obligations or responsibilities set forth in this Agreement. |
(d) | Notwithstanding anything in this Agreement to the contrary, neither party shall be liable under this Agreement to the other party hereto for any punitive, consequential, special or indirect losses or damages. Any indemnification payable by a party to this Agreement shall be net of insurance maintained by the indemnified party as of the time the claim giving rise to indemnity hereunder is alleged to have arisen to the extent it covers such claim. |
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or criminal proceedings for failure to comply, when requested to divulge such information by duly constituted authorities, or when requested by the Fund. When requested to divulge such information by duly constituted authorities, ALPS shall use reasonable commercial efforts to request confidential treatment of such information. ALPS shall have in place and maintain physical, electronic, and procedural safeguards reasonably designed to protect the security, confidentiality and integrity of, and to prevent unauthorized access to or use of records and information relating to the Fund and its current and former shareholders. |
8. |
Portfolio compliance with: (i) the investment objective and certain policies and restrictions as disclosed in the Fund’s prospectus(es) and statement(s) of additional information, as applicable; and (ii) certain SEC rules and regulations (collectively, “Portfolio Compliance”) is required daily and is the responsibility of the Fund’s advisor or sub-advisor, as applicable. ALPS will perform Portfolio Compliance testing (post-trade, daily on a T+2 basis) to test the Fund’s Portfolio Compliance (the “Portfolio Compliance Testing”).
The frequency and nature of the Portfolio Compliance Testing and the methodology and process in accordance with which the Portfolio Compliance Testing are conducted, are mutually agreed to between ALPS and the Fund. ALPS will report violations, if any, to the Fund and the Fund’s Chief Compliance Officer as promptly as practicable following discovery.
ALPS independently tests Portfolio Compliance based upon information contained in the source reports received by ALPS’ fund accounting department and supplemental data from certain third-party sources. As such, Portfolio Compliance Testing performed by ALPS is limited by the information contained in the fund accounting source reports and supplemental data from third-party sources. The Fund agrees and acknowledges that ALPS’ performance of the Portfolio Compliance Testing shall not relieve the Fund or the Advisor of their primary day-to-day responsibility for assuring such Portfolio Compliance, including on a pre-trade basis, and ALPS shall not be held liable for any act or omission of the Fund’s advisor or sub-advisor, as applicable, with respect to Portfolio Compliance.
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9. | Representations and Warranties of ALPS. ALPS represents and warrants to the Fund that: |
(a) | It is duly organized and existing as a corporation and in good standing under the laws of the State of Colorado. |
(b) | It is empowered under applicable laws and by its Articles of Incorporation and By-laws to enter into and perform this Agreement. |
(c) | All requisite corporate proceedings have been taken to authorize it to enter into and perform this Agreement. |
(d) | It has and will continue to have access to the necessary facilities, equipment and personnel to perform its duties and obligations under this Agreement in accordance with industry standards. |
10. | Representations and Warranties of the Fund. The Fund represents and warrants to ALPS that: |
(a) | It is a statutory trust duly organized and existing and in good standing under the laws of the state of Delaware and is registered with the SEC as an closed-end management investment company that is operated as an interval fund. |
(b) | It is empowered under applicable laws and by its Declaration of Trust and By-laws to enter into and perform this Agreement. |
(c) | The Board of Directors of the Fund has duly authorized it to enter into and perform this Agreement. |
(d) | Notwithstanding anything in this Agreement to the contrary, the Fund agrees not to make any modifications to its registration statement or adopt any policies which would affect materially the obligations or responsibilities of ALPS hereunder without the prior written approval of ALPS, which approval shall not be unreasonably withheld or delayed. |
(e) | Fund hereby represents and warrants to ALPS that (a) the execution, delivery and performance of this Agreement by Fund does not breach, violate or cause a default under any agreement, contract or instrument to which Fund is a party or any judgment, order or decree to which Fund is subject; (b) the execution, delivery and performance of this Agreement by Fund has been duly authorized and approved by all necessary action; and (c) upon the execution and delivery of this Agreement by ALPS and Fund, this Agreement will be a valid and binding obligation of Fund. |
(f) | Fund further represents and warrants to ALPS that the Fund’s Officer Positions filled by ALPS (i.e., Assistant Secretary and Assistant Treasurer) shall be covered by the Fund’s Directors & Officers/Errors & Omissions Policy (the “Policy”), and the Fund |
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shall use reasonable efforts to ensure that such coverage be (a) reinstated should the Policy be cancelled; (b) continued after such officers cease to serve as officers of the Fund on substantially the same terms as such coverage is provided for the Fund officers after such persons are no longer officers of the Fund; or (c) continued in the event the Fund merges or terminates, on substantially the same terms as such coverage is provided for the Fund officers (but for a period of no less than six years). The Fund shall provide ALPS with proof of current coverage, including a copy of the Policy, and shall notify ALPS immediately should the Policy be cancelled or terminated. |
(g) | The Fund’s Officer Positions filled by ALPS (i.e., Assistant Secretary and Assistant Treasurer) are named officers in the Trust’s corporate resolutions and subject to the provisions of the Trust’s Organizational Documents regarding indemnification of its officers. |
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12. | Consultation Between the Parties. ALPS and the Fund shall regularly consult with each other regarding ALPS’ performance of its obligations under this Agreement. In connection therewith, the Fund shall submit to ALPS at a reasonable time in advance of filing with the SEC reasonably final copies of any amended or supplemented registration statement (including exhibits) under the Securities Act of 1933, as amended, and the 1940 Act; provided, however, that nothing contained in this Agreement shall in any way limit the Fund’s right to file at any time such amendments to any registration statement and/or supplements to any prospectus or statement of additional information, of whatever character, as the Fund may deem advisable, such right being in all respects absolute and unconditional. |
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(a) |
(b) |
(c) |
(d) |
(i) | willful misfeasance, bad faith, negligence or reckless disregard on the part of ALPS in the performance of its duties, obligations and responsibilities set forth in this Agreement; |
(ii) | in the event ALPS is no longer permitted to perform its duties, obligations, or responsibilities hereunder pursuant to applicable law, or regulatory, |
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administrative or judicial proceedings against ALPS which result in a determination that ALPS has violated, or has caused the Fund to violate, in any material respect any applicable law, rule, regulation, order or code of ethics, or any material investment restriction, policy or procedure adopted by the Fund of which ALPS had knowledge (it being understood that ALPS is deemed to have knowledge of all investment restrictions, policies or procedures set out in the Fund’s public filings or otherwise provided to ALPS); or |
(iii) | financial difficulties on the part of ALPS which are evidenced by the authorization or commencement of, or involvement by way of pleading, answer, consent or acquiescence in, a voluntary or involuntary case under Title 11 of the United States Code, as from time to time in effect, or any applicable law other than said Title 11, of any jurisdiction relating to the liquidation or reorganization of debtors or to the modification or alteration of the rights of creditors. |
(e) |
(f) |
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17. | Governing Law. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of Colorado and the 1940 Act and the rules thereunder. To the extent that the laws of the State of Colorado conflict with the 1940 Act or such rules, the latter shall control. |
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19. | Amendments to this Agreement. This Agreement may only be amended by the parties in writing. |
20. |
To ALPS:
ALPS Fund Services, Inc.
0000 Xxxxxxxx, Xxxxx 0000
Xxxxxx, Xxxxxxxx 00000
Attn: General Counsel
Fax: (000) 000-0000
To the Fund:
Xxxxxxx Institutional Access Real Estate Fund
c/x Xxxxxxx Capital Advisor, LLC
Xxxxxxx Capital Plaza
0000 Xxxxx Xxxxxx
Xx Xxxxxxx, XX00000
Attn: Xxxxx Xxxxxxxx
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XXXXXXX INSTITUTIONAL ACCESS REAL ESTATE FUND | ||
By: |
| |
Name: | Xxxxx Xxxxxxxx | |
Title: | Chairman of the Board of Trustees | |
ALPS FUND SERVICES, INC. | ||
By: |
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Name: | Xxxxxx X. May | |
Title: | President |
ALPS Form 110508
APPENDIX A
LIST OF PORTFOLIO(S)
Xxxxxxx Institutional Access Real Estate Fund
ALPS Form 000000
XXXXXXXX X
SERVICES
Fund Administration
• | Prepare annual and semi-annual financial statements |
• | Utilizing templates for standard layout and printing |
• | Prepare and file Forms N-SAR, N-CSR, N-Q and 24f-2 |
• | File Form N-PX |
• | Host annual audits |
• | Provide daily investment restriction compliance monitoring support and reporting |
• | Calculate monthly SEC standardized total return performance figures |
• | Prepare required reports for quarterly Board meetings |
• | Monitor expense ratios |
• | Maintain budget vs. actual expenses |
• | Manage fund invoice approval and xxxx payment process |
• | Maintain and coordinate Blue Sky registration |
• | Assist with placement of Fidelity Bond and E&O insurance |
• | Coordinate reporting to outside agencies including Morningstar, etc. |
Fund Accounting
• | Calculate daily NAVs |
• | Transmit daily NAVs to NASDAQ, Transfer Agent and other third parties |
• | Compute yields, expense ratios, portfolio turnover rates, etc. |
• | Reconcile cash and investment balances with the custodian |
• | Support preparation of financial statements |
• | Prepare required Fund Accounting records in accordance with the 1940 Act |
• | Obtain security valuations from appropriate sources consistent with the Funds pricing and valuation policies |
Legal
• | Review and update Registration Statement annually |
• | Coordinate standard layout and printing of Prospectus |
• | Prepare and print quarterly Tender/Repurchase Offer |
• | Provide legal review of SEC financial filings |
• | Coordinate EDGARization and filing of documents |
• | Prepare, compile and mail board materials |
• | Attend board meetings and prepare minutes |
• | Review legal contracts |
• | Maintain and coordinate Blue Sky registration |
Tax
• | Calculate dividend and capital gain distribution rates |
• | Prepare ROCSOP and required tax designations for Annual Report |
• | Prepare and coordinate filing of income and excise tax returns* |
o | Audit firm to sign all returns as paid preparer |
• | Calculate/monitor book-to-tax differences |
• | Provide quarterly Subchapter M compliance monitoring and reporting |
• | Provide tax re-allocation data for shareholder 1099 reporting |
* The Trust’s independent auditors provide review & sign-off on excise distributions and income and excise tax returns. ALPS shall not analyze or investigate information or returns for foreign tax filings. In the event the independent auditors require ALPS to perform a foreign capital gain analysis, ALPS reserves the right to charge the Trust for the foreign capital gain analysis, subject to an agreement by ALPS and Trust management. State income or franchise tax return preparation is limited to the initial state of nexus and does not include additional state filing requirements that may be triggered by underlying investments of the Trust.
Fund CCO Assurance & Support:
• | Provide Quarterly Compliance 38a-1 Representations |
• | Provide Online Access to ALPS Policies and Procedures |
• | Perform Regulatory Monitoring and Updates |
APPENDIX C
COMPENSATION
Fund Administration, Fund Accounting, Legal, Medallion Distribution and Tax Administration Services:
• | GREATER OF $125,000* annual minimum in Year 1 or the following basis point fee schedule: |
• | GREATER OF $145,000* annual minimum in Year 2 and forward or the following basis point fee schedule: |
Annual Net Assets: | Basis Points: | |
Between $0 - $250M | 7.5 | |
$250M - $500M | 5.0 | |
$500M - $1B | 4.0 | |
Above $1B | 2.5 |
* Such minimum fees are subject to an annual cost of living adjustment.
Out-of-Pocket Expenses:
All out-of-pocket expenses are passed through to the client at cost, including but not limited to: third party security pricing and data fees, Bloomberg fees, Gainskeeper fees, PFIC Analyzer, bank loan sub-accounting fees, Blue Sky permit processing fees and state registration fees, SSAE 16 control review reports, travel expenses to Board meetings and on-site reviews, printing, filing and mailing fees, customized programming/enhancements and other out-of-pocket expenses incurred by ALPS in connection with the performance of its duties under its Agreement with the Funds.
Late Charges: All invoices are due and payable upon receipt. Any invoices not paid within thirty (30) days of the invoice date are subject to a one percent (1%) per month financing charge on any unpaid balance but only to the extent permitted by law.