Exhibit (d)(41)
PORTFOLIO MANAGEMENT AGREEMENT
For The Emerging Markets Portfolio
AGREEMENT made this 18th day of November, 2009, between SSgA Funds Management,
Inc., a corporation organized under the laws of Massachusetts ("Portfolio
Manager"), and The Xxxxxx Xxxxxxxxx Trust, a Delaware statutory trust ("Trust").
WHEREAS, the Trust is registered as an open-end, diversified, management
investment company under the Investment Company Act of 1940, as amended
("Investment Company Act") which offers several series of shares of beneficial
interests ("shares") representing interests in separate investment portfolios;
and
WHEREAS, the Trust desires to retain the Portfolio Manager to provide a
continuous program of investment management to that portion of the assets of
The Emerging Markets Portfolio of the Trust ("Portfolio") that may, from time
to time be allocated to it by, or under the supervision of, the Trust's Board
of Trustees, and Portfolio Manager is willing, in accordance with the terms and
conditions hereof, to provide such services to the Trust;
NOW THEREFORE, in consideration of the promises and covenants set forth herein
and intending to be legally bound hereby, it is agreed between the parties as
follows:
1. Appointment of Portfolio Manager. The Trust hereby retains Portfolio Manager
to provide the investment services set forth herein and Portfolio Manager
agrees to accept such appointment. In carrying out its responsibilities under
this Agreement, the Portfolio Manager shall at all times act in accordance with
the investment objectives, policies and restrictions applicable to the
Portfolio as set forth in the then current Registration Statement of the Trust
delivered by the Trust to the Portfolio Manager, applicable provisions of the
Investment Company Act and the rules and regulations promulgated under the
Investment Company Act and other applicable federal securities laws.
2. Duties of Portfolio Manager. (a) Portfolio Manager shall provide a
continuous program of investment management for that portion of the assets of
the Portfolio ("Account") that may, from time to time be allocated to it by, or
under the supervision of, the Trust's Board of Trustees, as indicated in
writing by an authorized officer of the Trust. It is understood that the
Account may consist of all, a portion of or none of the assets of the
Portfolio, and that the Board of Trustees and/or Xxxxxx Xxxxxxxxx & Co., Inc.,
("Xxxxxx Xxxxxxxxx") the Trust's investment adviser, has the right to allocate
and reallocate such assets to the Account at any time, and from time to time,
upon such notice to the Portfolio Manager as may be reasonably necessary, in
the view of the Trust, to ensure orderly management of the Account or the
Portfolio. The Portfolio Manager's responsibility for providing portfolio
management services to the Portfolio shall be limited to the Account;
(b) Subject to the general supervision of the Trust's Board of Trustees,
Portfolio Manager shall have sole investment discretion with respect to the
Account, including investment research, selection of the securities to be
purchased and sold and the portion of the Account, if any, that shall be held
uninvested, and the selection of brokers and dealers, including affiliated
brokers and dealers of Portfolio Manager, through which securities transactions
in the Account shall be executed. The Portfolio Manager shall not consult with
any other portfolio manager of the Portfolio concerning transactions for the
Portfolio in securities or other assets. Specifically, and without limiting the
generality of the foregoing, Portfolio Manager agrees that it will:
(i) advise the Portfolio's designated custodian bank and administrator or
accounting agent on each business day of each purchase and sale, as the case
may be, made on behalf of the Account, specifying the name and quantity of the
security purchased or sold, the unit and aggregate purchase or sale price,
commission paid, the market on which the transaction was effected, the trade
date, the settlement date, the identity of the effecting broker or dealer
and/or such other information, and in such manner, as may from time to time be
reasonably requested by the Trust;
(ii) maintain all applicable books and records with respect to the
securities transactions of the Account. Specifically, Portfolio Manager agrees
to maintain with respect to the Account those records required to be maintained
under Rule 31a-1(b)(1), (b)(5) and (b)(6) under the Investment Company Act with
respect to transactions in the Account including, without limitation, records
which reflect securities purchased or sold in the Account, showing for each
such transaction, the name and quantity of securities, the unit and aggregate
purchase or sale price, commission paid, the market on which the transaction
was effected, the trade date, the settlement date, and the identity of the
effecting broker or dealer. Portfolio Manager will preserve such records in the
manner and for the periods prescribed by Rule 31a-2 under the Investment
Company Act. Portfolio Manager acknowledges and agrees that all records it
maintains for the Trust are the property of the Trust, and Portfolio Manager
will surrender promptly to the Trust any such records upon the Trust's request.
The Trust agrees, however, that Portfolio Manager may retain copies of those
records that are required to be maintained by Portfolio Manager under federal
or state regulations to which it may be subject or are reasonably necessary for
purposes of conducting its business;
(iii) provide, in a timely manner, such information as may be reasonably
requested by the Trust or its designated agents in connection with, among other
things, the Trust's daily computation of the Portfolio's net asset value and
net income, preparation of proxy statements or amendments to the Trust's
registration statement. In the performance of its duties and obligations under
this Agreement, the Portfolio Manager will use its best efforts to assist
Xxxxxx Xxxxxxxxx in ensuring continued qualification for the special tax
treatment accorded to regulated investment companies under Subchapter M of the
Internal Revenue Code of 1986, as amended ("Code"); and
(iv) render regular reports to the Trust concerning the performance of
Portfolio Manager of its responsibilities under this Agreement. In particular,
Portfolio Manager agrees that it will, at the reasonable request of the Board
of Trustees, attend meetings of the Board or its validly constituted committees
and will, in addition, make its officers and employees available to meet with
the officers and employees of the Trust at least quarterly and at other times
upon reasonable notice, to review the investments and investment program of the
Account.
3. Portfolio Transaction and Brokerage. In placing orders for portfolio
securities with brokers and dealers, Portfolio Manager shall use its best
efforts to execute securities transactions on behalf of the Account in such a
manner that the total cost or proceeds in each transaction is the most
favorable under the circumstances. Portfolio Manager may, however, in its
discretion, direct orders to brokers that provide to Portfolio Manager
research, analysis, advice and similar services, and Portfolio Manager may
cause the Account to pay to those brokers a higher commission than may be
charged by other brokers for similar transactions, provided that Portfolio
Manager determines in good faith that such commission is reasonable in terms
either of the particular transaction or of the overall responsibility of the
Portfolio Manager to the Account and any other accounts with respect to which
Portfolio Manager exercises investment discretion, and provided further that
the extent and continuation of any such practice is subject to review by the
Trust's Board of Trustees.
On occasions when the Portfolio Manager deems the purchase or sale of a
security to be in the best interest of the Fund as well as other clients of the
Portfolio Manager, the Portfolio Manager, to the extent permitted by applicable
laws and regulations, may, but shall be under no obligation to, aggregate the
securities to be purchased or sold to attempt to obtain a more favorable price
or lower brokerage commissions and efficient execution.
Portfolio Manager shall not execute any portfolio transactions for the Trust
with a broker or dealer which is an "affiliated person" of the Trust or
Portfolio Manager, including any other investment advisory organization that
may, from time to time act as a portfolio manager for the Portfolio or any of
the Trust's other Portfolios, except as permitted under the Investment Company
Act and rules promulgated thereunder. The Trust shall provide a list of such
affiliated brokers and dealers to Portfolio Manager and will promptly advise
Portfolio Manager of any changes in such list.
4. Expenses and Compensation. Except for expenses specifically assumed or
agreed to be paid by the Portfolio Manager under this Agreement, the Portfolio
Manager shall not be liable for any expenses of the Portfolio or the Trust,
including, without limitation: (i) interest and taxes; (ii) brokerage
commissions and other costs in connection with the purchase and sale of
securities or other investment instruments with respect to the Portfolio; and
(iii) custodian fees and expenses. For its services under this Agreement,
Portfolio Manager shall be entitled to receive a fee, which fee shall be
payable monthly in arrears at the annual rate of 0.85% of the average daily net
assets of the Account for the first $50 million in such assets, 0.75% for the
next $50 million in assets and 0.70% for those assets in excess of $100 million
5. Limitation of Liability and Indemnification. (a) Neither the Portfolio
Manager nor any person that is an "affiliated person" of the Portfolio Manager
or any of its affiliated companies (collectively, "Associated Persons") shall
be liable for any error of judgment or mistake of law or for any loss suffered
by the Portfolio or the Trust in connection with the matters to which this
Agreement relates including, without limitation, losses that may be sustained
in connection with the purchase, holding, redemption or sale of any security or
other investment by the Trust on behalf of the Portfolio, except a loss
resulting from willful misfeasance, bad faith or gross negligence on the part
of Portfolio Manager in the performance of its duties or from reckless
disregard by it of its duties under this Agreement. In no event shall the
Portfolio Manager or its Associated Persons have any liability arising from the
conduct of any other portfolio manager with respect to the portion of the
Portfolio's assets not allocated to the Portfolio Manger. The parties agree
that any stated limitations on liability shall not relieve the Portfolio
Manager from any responsibility or liability under state of federal statutes.
(b) Notwithstanding the foregoing, Portfolio Manager expressly agrees that the
Trust may rely upon: (i) the Portfolio Manager's current Form ADV; and
(ii) information provided, in writing, by Portfolio Manager to the Trust in
accordance with Section 9 of this Agreement or otherwise to the extent such
information was provided by Portfolio Manager for the purpose of inclusion in
the Trust's registration statement and amendments thereto and certain periodic
reports relating to the Trust and its Portfolios that are required to be
furnished to shareholders of the Trust and/or filed with the Securities and
Exchange Commission ("SEC Filings"), as hereinafter defined provided that a
copy of each SEC Filing is provided to Portfolio Manager: (i) at least 10
business days prior to the date on which it will become effective, in the case
of a registration statement; (ii) at least 10 business days prior to the date
upon which it is filed with the SEC in the case of the Trust's
semi-annual-report on Form N-SAR or any shareholder report or proxy statement;
or (iii) at least 10 business days prior to first use, in the case of any other
SEC Filing. For purposes of this Section 5, "SEC Filings" means the Trust's
registration statement and amendments thereto and any periodic reports relating
to the Trust and its Portfolios that are required by law to be furnished to
shareholders of the Trust and/or filed with the Securities and Exchange
Commission.
(c) Portfolio Manager agrees to indemnify and hold harmless the Trust and each
of its Trustees, officers, employees and control persons from any claims,
liabilities and reasonable expenses, including reasonable attorneys' fees
(collectively, "Losses"), to the extent that such Losses arise out of any
untrue statement of a material fact contained in an SEC Filing or the omission
to state therein a material fact necessary to make the statements therein, in
light of the circumstances under which they are made, not materially
misleading, if such statement or omission was made in reliance upon the
Portfolio Manager's current Form ADV or written information furnished by the
Portfolio Manager for the purpose of inclusion in such SEC Filings or other
appropriate SEC Filings; provided that a copy of each SEC Filing was provided
to Portfolio Manager: (i) at least 10 business days prior to the date on which
it will become effective, in the case of a registration statement; (ii) at
least 10 business days prior to the date upon which it is filed with the SEC in
the case of the Trust's semi-annual-report on Form N-SAR or any shareholder
report or proxy statement; or (iii) at least 10 business days prior to first
use, in the case of any other SEC Filing.
(d) The Trust agrees to indemnify and hold harmless the Portfolio Manager and
its Associated Persons from any claims, liabilities and expenses, including
reasonable attorneys' fees, incurred as a result of any untrue statement of a
material fact which relates to information in any SEC filing, or any omission
to state a material fact in any SEC filing in any case where the statement or
material omission was not based on written information supplied by electronic
transmission or in writing to Trust, or its administrator, transfer
agent, custodian, distributor or to Xxxxxx Xxxxxxxxx & Co., Inc., the Trust's
investment manager, by the Portfolio Manager.
(e) In the event that a legal proceeding is commenced against the Trust on the
basis of claims for which the Portfolio Manager would, if such claims were to
prevail, be required to indemnify the Trust pursuant to Section 5(c) above,
Portfolio Manager will, at its expense, provide such assistance as the Trust
may reasonably request in preparing the defense of such claims (including by
way of example making Portfolio Manager's personnel available for interview by
counsel for the Trust, but specifically not inducing retention or payment of
counsel to defend such claims on behalf of the Trust); provided that the
Portfolio Manager will not be required to pay any Losses of the Trust except to
the extent it may be required to do so under Section 5(c) above.
(f) The indemnification obligations set forth in Section 5 (c) shall not apply
unless: (i) the statement or omission in question accurately reflects
information provided to the Trust in writing by the Portfolio Manager; (ii) the
statement or omission in question was made in an SEC Filing in reliance upon
written information provided to the Trust by the Portfolio Manager specifically
for use in such SEC Filing; (iii) the Portfolio Manager was afforded the
opportunity to review the statement (or the omission was identified to it) in
connection with the 10 business day review requirement set forth in
Section 5(b) above; and (iv) upon receipt by the Trust of any notice of the
commencement of any action or the assertion of any claim to which the
indemnification obligations set forth in Section 5(c) may apply, the Trust
notifies the Portfolio Manager, within 30 days and in writing, of such receipt
and provides to Portfolio Manager the opportunity to participate in the defense
and/or settlement of any such action or claim. Further, Portfolio Manager will
not be required to indemnify any person under this Section 5 to the extent that
Portfolio Manager relied upon statements or information furnished to the
Portfolio Manager, in writing, by any officer, employee or Trustee of the
Trust, or by the Trust's custodian, administrator or accounting agent or any
other agent of the Trust, in preparing written information provided to the
Trust and upon which the Trust relied in preparing the SEC Filing(s) in
question.
(g) The Portfolio Manager shall not be liable for: (i) any acts of any other
portfolio manager to the Portfolio or the Trust with respect to the portion of
the assets of the Portfolio or the Trust not managed by the Portfolio Manager;
and (ii) acts of the Portfolio Manager which result from acts of the Trust,
including, but not limited to, a failure of the Trust to provide accurate and
current information with respect to the investment objectives, policies, or
restrictions applicable to the Portfolio, actions of the Trustees, or any
records maintained by Trust or any other portfolio manager to the Portfolio.
The Trust agrees that, to the extent the Portfolio Manager complies with the
investment objectives, policies, and restrictions applicable to the Portfolio
as provided to the Portfolio Manager by the Trust, and with laws, rules, and
regulations applicable to the Portfolio (including, without limitation, any
requirements relating to the qualification of the Account as a regulated
investment company under Subchapter M of the Code) in the management of the
assets of the Portfolio specifically committed to management by the Portfolio
Manager, without regard to any other assets or investments of the Portfolio,
Portfolio Manager will be conclusively presumed for all purposes to have met
its obligations under this Agreement to act in accordance with the investment
objectives, polices, and restrictions applicable to the Portfolio and with
laws, rules, and regulations applicable to the Portfolio, it being the
intention that for this purpose the assets committed to management by the
Portfolio Manager shall be considered a separate and discrete investment
portfolio from any other assets of the Portfolio; without limiting the
generality of the foregoing, the Portfolio Manager will have no obligation to
inquire into, or to take into account, any other investments of the Portfolio
in making investment decisions under this Agreement. In no event shall the
Portfolio Manager or any officer, director, employee, or agent or the Portfolio
Manager have any liability arising from the conduct of the Trust and any other
portfolio manager with respect to the portion of the Portfolio's assets not
allocated to the Portfolio Manager.
6. Permissible Interest. Subject to and in accordance with the Trust's
Declaration of Trust and Bylaws and corresponding governing documents of
Portfolio Manager, Trustees, officers, agents and shareholders of the Trust may
have an interest in the Portfolio Manager as officers, directors, agents and/or
shareholders or otherwise. Portfolio Manager may have similar interests in the
Trust. The effect of any
such interrelationships shall be governed by said governing documents and the
provisions of the Investment Company Act.
7. Duration, Termination and Amendments. This Agreement shall become effective
as of the date first written above and shall continue in effect thereafter for
two years. This Agreement shall continue in effect from year to year thereafter
for so long as its continuance is specifically approved, at least annually, by:
(i) a majority of the Board of Trustees or the vote of the holders of a
majority of the Portfolio's outstanding voting securities; and (ii) the
affirmative vote, cast in person at a meeting called for the purpose of voting
on such continuance, of a majority of those members of the Board of Trustees
("Independent Trustees") who are not "interested persons" of the Trust or any
investment adviser to the Trust.
This Agreement may be terminated by the Trust or by Portfolio Manager at any
time and without penalty upon sixty days written notice to the other party,
which notice may be waived by the party entitled to it. This Agreement may not
be amended except by an instrument in writing and signed by the party to be
bound thereby provided that if the Investment Company Act requires that such
amendment be approved by the vote of the Board, the Independent Trustees and/or
the holders of the Trust's or the Portfolio's outstanding shareholders, such
approval must be obtained before any such amendment may become effective. This
Agreement shall terminate upon its assignment. For purposes of this Agreement,
the terms "majority of the outstanding voting securities," "assignment" and
"interested person" shall have the meanings set forth in the Investment Company
Act.
8. Confidentiality; Use of Name. Portfolio Manager and the Trust acknowledge
and agree that during the term of this Agreement the parties may have access to
certain information that is proprietary to the Trust or Portfolio Manager,
respectively (or to their affiliates and/or service providers). The parties
agree that their respective officers and employees shall treat all such
proprietary information as confidential and will not use or disclose
information contained in, or derived from such material for any purpose other
than in connection with the carrying out of their responsibilities under this
Agreement and the management of the Trust's assets, provided, however, that
this shall not apply in the case of: (i) information that is publicly
available; and (ii) disclosures required by law or requested by any regulatory
authority that may have jurisdiction over Portfolio Manager or the Trust, as
the case may be, in which case such party shall request such confidential
treatment of such information as may be reasonably available. In addition, each
party shall use its reasonable efforts to ensure that its agents or affiliates
who may gain access to such proprietary information shall be made aware of the
proprietary nature and shall likewise treat such materials as confidential.
It is acknowledged and agreed that the names "Xxxxxx Xxxxxxxxx," "Xxxxxx
Xxxxxxxxx Chief Investment Officers" (which is a registered trademark of Xxxxxx
Xxxxxxxxx & Co., Inc. ("HCCI")), and any derivative of either, as well as any
logo that is now or shall later become associated with either name ("Marks")
are valuable property of HCCI and that the use of the Marks, or any one of
them, by the Trust or its agents is subject to the license granted to the Trust
by HCCI. Portfolio Manager agrees that it will not use any Xxxx without the
prior written consent of the Trust. Portfolio Manager consents to use of its
name, performance data, biographical data and other pertinent data, and the
SSgA Marks (as defined below), by the Trust for use in marketing and sales
literature, provided that any such marketing and sales literature shall not be
used by the Trust without the prior written consent of Portfolio Manager, which
consent shall not be unreasonably withheld. The Trust shall have full
responsibility for the compliance by any such marketing and sales literature
with all applicable laws, rules, and regulations, and Portfolio Manager will
have no responsibility or liability therefor.
It is acknowledged and agreed that the name "State Street Global Advisors,"
"SSgA," "SSgA Funds Management, Inc." and any portion or derivative thereof, as
well as any logo that is now or shall later become associated with the name
("SSgA Marks"), are valuable property of the Portfolio Manager and that the
Trust and its authorized agents may use the SSgA Marks as necessary in SEC
Filings so long as this Agreement is in place. The Trust is not permitted to
use the SSgA Marks for any other purpose (including, without limitation,
marketing the shares of the Trust) without the written consent of the Portfolio
Manager, which shall not be unreasonably withheld. Upon termination of this
Agreement, the Trust shall forthwith cease to use the SSgA Marks. The Trust
acknowledges that unauthorized use of the SSgA Marks shall
result in irreparable harm to the Portfolio Manager for which monetary damages
are inadequate, and thus, the Portfolio Manager shall be entitled to injunctive
relief.
The provisions of this Section 8 shall survive termination of this Agreement.
9. Representation, Warranties and Agreements of Portfolio Manager. Portfolio
Manager represents and warrants that:
(a) It is registered as an investment adviser under the Investment Advisers Act
of 1940, as amended, ("Investment Advisers Act"), it will maintain such
registration in full force and effect and will promptly report to the Trust the
commencement of any formal proceeding that could render the Portfolio Manager
ineligible to serve as an investment adviser to a registered investment company
under Section 9 of the Investment Company Act;
(b) Portfolio Manager understands that the Trust is subject to various
regulations under the Investment Company Act which require that the Board
review and approve various procedures adopted by portfolio managers and may
also require disclosure regarding the Board's consideration of these matters in
various documents required to be filed with the SEC. Portfolio Manager
represents that it will, upon reasonable request of the Trust, provide to the
Trust information regarding all such matters including, but not limited to,
codes of ethics required by Rule 17j-1 under the Investment Company Act and
compliance procedures required by Rule 206(4)-7 under the Investment Advisers
Act, as well as certifications that, as contemplated under Rule 38a-1 under the
Investment Company Act, Portfolio Manager has implemented a compliance program
that is reasonably designed to prevent violations of the federal securities
laws by the Portfolio with respect to those services provided pursuant to this
Agreement. Portfolio Manager acknowledges that the Trust may, in response to
regulations or recommendations issued by the SEC or other regulatory agencies,
from time to time, request additional information regarding the personal
securities trading of its directors, partners, officers and employees and the
policies of Portfolio Manager with regard to such trading. Portfolio Manager
agrees that it will make reasonable efforts to respond to the Trust's
reasonable requests in this area; and
(c) Upon request of the Trust, Portfolio Manager shall promptly supply the
Trust with any information concerning the Portfolio Manager and its
stockholders, employees and affiliates that the Trust may reasonably require in
connection with the preparation of its registration statements, proxy
materials, reports and other documents required, under applicable state or
Federal laws, to be filed with state or Federal agencies and/or provided to
shareholders of the Trust.
10. Status of Portfolio Manager. The Trust and Portfolio Manager acknowledge
and agree that the relationship between Portfolio Manager and the Trust is that
of an independent contractor and under no circumstances shall any employee of
Portfolio Manager be deemed an employee of the Trust or any other organization
that the Trust may, from time to time, engage to provide services to the Trust,
its Portfolios or its shareholders. The parties also acknowledge and agree that
nothing in this Agreement shall be construed to restrict the right of Portfolio
Manager or its affiliates to perform investment management or other services to
any person or entity, including without limitation, other investment companies
and persons who may retain Portfolio Manager to provide investment management
services and the performance of such services shall not be deemed to violate or
give rise to any duty or obligations to the Trust.
11. Counterparts and Notice. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original. Any notice
required to be given under this Agreement shall be deemed given when received,
in writing addressed and delivered, by certified mail, by hand or via overnight
delivery service as follows:
If to the Trust:
Xxxxxx X Xxxx
The Xxxxxx Xxxxxxxxx Trust
Five Tower Bridge, 000 Xxxx Xxxxxx Xxxxx, Xxxxx 000
Xxxx Xxxxxxxxxxxx, XX 00000
If to Portfolio Manager:
SSgA Funds Management, Inc.
Xxx Xxxxxxx Xxxxxx
Xxxxxx, XX 00000
Attention: Chief Compliance Officer
12. Miscellaneous. The captions in this Agreement are included for convenience
of reference only and in no way define or delimit any of the provisions hereof
or otherwise affect their construction or effect. 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. This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and shall be governed by the law of the
State of Delaware provided that nothing herein shall be construed as
inconsistent with the Investment Company Act or the Investment Advisers Act.
The Trust acknowledges receipt of Part II of Portfolio Manager's Form ADV,
copies of which have been provided to the Trust's Board of Trustees.
Portfolio Manager is hereby expressly put on notice of the limitations of
shareholder and Trustee liability set forth in the Declaration of Trust of the
Trust and agrees that obligations assumed by the Trust pursuant to this
Agreement shall be limited in all cases to the assets of the Portfolio.
Portfolio Manager further agrees that it will not seek satisfaction of any such
obligations from the shareholders or any individual shareholder of the Trust,
or from the Trustees of the Trust or any individual Trustee of the Trust.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their officers thereunto duly authorized as of the day and year
first written above.
ATTEST: SSgA Funds Management, Inc.
By: /s/ Xxxxx X. Xxxx
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Xxxxx X. Xxxx
President
ATTEST: The Xxxxxx Xxxxxxxxx Trust
(on behalf of The Emerging Markets Portfolio)
By: /s/ Xxxxxx X. Xxxx
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Xxxxxx X. Xxxx
