EXHIBIT 99.23(d)(1)
INVESTMENT ADVISORY AGREEMENT
NATIONS FUNDS TRUST
THIS AGREEMENT is made as of March 30, 2000, by and between NATIONS FUNDS
TRUST, a Delaware business trust (the "Trust"), and BANC OF AMERICA ADVISORS,
INC., a North Carolina corporation (the "Adviser"), 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 Trust desires that the Adviser manage the investment
operations of the Funds and the Adviser desires to manage said operations; and
WHEREAS, the Board of Trustees of the Trust (the "Board"), including a
majority of the Trustees who are not "interested persons" (as defined herein) of
any party to this Agreement, have approved this arrangement;
NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, it is agreed between the parties hereto as follows:
1. Appointment of Adviser. The Trust hereby appoints the Adviser and the
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Adviser hereby agrees to manage the investment operations of each Fund subject
to the terms of this Agreement and subject to the supervision of the Board. The
Trust and the Adviser contemplate that certain duties of the Adviser under this
Agreement may be delegated to one or more investment sub-adviser(s) (the
"Sub-Adviser(s)") pursuant to separate investment sub-advisory agreement(s) (the
"Sub-Advisory Agreement(s)"). The Adviser may, in its discretion, provide
services under this Agreement through its own employees or through one or more
affiliated companies that are qualified to act as investment advisers under
applicable law and are under common control of Bank of America Corporation.
2. Services of Adviser. The Adviser shall perform, or arrange for the
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performance of, the management services necessary for the investment operations
of each Fund, including but not limited to:
(a) Managing 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;
(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;
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(c) Assisting in the preparation of all shareholder communications,
including shareholder reports, and participating in shareholder
relations;
(d) Making recommendations as to the manner in which voting rights, rights
to consent to Fund action and any other rights pertaining to each
Fund's portfolio securities shall be exercised;
(e) Making recommendations to the Board with respect to Fund investment
policies and procedures, and carrying out such investment policies and
procedures as are adopted by the Board;
(f) Supplying reports, evaluations, analyses, statistical data and
information to the Board or to the Funds' officers and other service
providers as 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 this Agreement or as the Board
may reasonably request from time to time.
3. Responsibilities of Adviser. In carrying out its obligations under this
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Agreement, the 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) Not make loans to any person for the purpose of purchasing or carrying
Fund shares;
(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 affiliated broker
or dealer). In executing portfolio transactions and selecting brokers
or dealers, the 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 Adviser shall
consider all factors that it deems relevant, including the
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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 Adviser may also consider
whether such broker or dealer furnishes research and other information
or services to the Adviser;
(e) Adhere to the investment objective, strategies and policies and
procedures of the Trust adopted on behalf of each Fund; and
(f) Maintain a policy and practice of conducting its investment advisory
services hereunder independently of the commercial banking operations
of its affiliates. In making investment recommendations for a Fund,
the Adviser's investment advisory personnel will not inquire or take
into consideration whether the issuers (or related supporting
institutions) of securities proposed for purchase or sale for the
Fund's account are customers of the commercial departments of its
affiliates. In dealing with commercial customers, such commercial
departments will not inquire or take into consideration whether
securities of those customers are held by the Fund.
4. Confidentiality of Information. Each party agrees that it will treat
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confidentially all information provided by the other party regarding such other
party's business and operations, including without limitation the investment
activities or holdings of a Fund. 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 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 otherwise by applicable
law or regulation.
5. Delegation of Duties. Subject to the approval of the Board and, if
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required, the shareholders of the Funds, the Adviser may delegate to one or more
Sub-Adviser(s) any or all of its duties hereunder, provided that the Adviser
shall continue to supervise and monitor the performance of the duties delegated
to the Sub-Adviser(s) and any such delegation shall not relieve the Adviser of
its duties and obligations under this Agreement. The Adviser shall be solely
responsible for compensating the Sub-Adviser(s) for performing any of the duties
delegated to them. The Adviser may request that the Trust pay directly to the
Sub-Adviser(s) the portion of the Adviser's compensation that the Adviser is
obligated to pay to the Sub-Adviser(s). If the Trust agrees to such request, it
will pay such portion to the Sub-Adviser(s) on behalf of the Adviser, thereby
reducing the compensation paid to the Adviser by the amount paid directly to the
Sub-Adviser(s). However, such an arrangement will not relieve the Adviser of its
responsibility for compensating the Sub-Adviser(s). In the event that any
Sub-Adviser appointed hereunder is terminated, the Adviser may provide
investment advisory services pursuant to this Agreement through its own
employees or through one or more affiliated companies that are
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qualified to act as investment advisers under applicable law and are under
common control of Bank of America Corporation or through other Sub-Adviser(s) as
approved by the Trust in accordance with applicable law.
6. Services Not Exclusive. The services furnished by the Adviser hereunder
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are deemed not to be exclusive, and the 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 Adviser to be suitable
for two or more accounts managed by the Adviser, the available securities or
investments may be allocated in a manner believed by the 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. Nothing in this Agreement
shall limit or restrict the right of any of the Adviser's partners, officers or
employees to engage in any other business or to devote his or her time and
attention in part to the management or other aspects of any business, whether of
a similar or dissimilar nature, nor limit or restrict the Adviser's right to
engage in any other business or to render services of any kind to any other
corporation, firm, individual or association.
7. Delivery of Documents. The Trust has furnished the Adviser with copies,
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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 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
(c) any and all applicable policies and procedures approved by the Board.
The Trust will promptly furnish the Adviser with copies of any and all
amendments of or additions or supplements to the foregoing.
8. Books and Records. In compliance with the requirements of Rule 31a-3
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under the 1940 Act, the 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 any of such records upon request. The
Adviser further agrees to preserve for the periods prescribed by Rule 31a-2
under the 1940 Act the records required to be maintained by Rule 31a-1 under the
1940 Act.
9. Expenses of the Funds. Except to the extent expressly assumed by the
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Adviser and except to any extent required by law to be paid or reimbursed by the
Adviser, the Adviser
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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 service providers'
fees and expenses, expenses of issue, sale, redemption and repurchase of shares,
expenses of registering and qualifying shares for sale, expenses relating to
Board and shareholder meetings, the cost of preparing and distributing reports
and notices to shareholders and interest payments and other fees or charges
associated with any credit facilities established by or on behalf of the Funds.
10. Compensation. Except as otherwise provided herein, for the services
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provided to each Fund and the expenses assumed pursuant to this Agreement, the
Trust will pay the Adviser and the Adviser will accept as full compensation
therefor a fee determined in accordance with Schedule I attached hereto;
provided, however, that the compensation paid to the Adviser shall be reduced by
any amount paid by the Trust directly to the Sub-Advisor(s) pursuant to Section
5 of this Agreement. In addition, BAAI or its affiliated persons may receive
compensation or reimbursement of recordkeeping, bookkeeping, accounting,
administrative and transactional fees or charges incurred in connection with any
credit facilities established by or on behalf of the Funds. The fees or charges
attributable to each Fund shall be a separate charge to such Fund and shall be
the several (and not joint or joint and several) obligation of each such Fund.
The Trust and the Adviser may, from time to time, agree to reduce, limit or
waive the amounts payable hereunder with respect to one or more Funds for such
period or periods they deem advisable.
11. Liability of Adviser. The Adviser shall not be liable for any error of
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judgment or mistake of law or for any loss suffered by the Trust in connection
with the performance of its duties under this Agreement, except a loss resulting
from a breach of fiduciary duty with respect to the receipt of compensation for
services, or a loss resulting from willful misfeasance, bad faith or negligence
on the part of the Adviser or any of its officers, directors, employees or
agents, in the performance of their duties under this Agreement, or from
reckless disregard by it of obligations and duties under this Agreement.
12. Term and Approval. This Agreement will become effective as of the date
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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
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Trust), by votes cast in person at a meeting specifically called for
such purpose.
13. Termination. This Agreement may be terminated without payment of any
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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 Adviser; or
(b) the Adviser with respect to a Fund, upon sixty (60) days' written
notice to the Trust.
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.
14. Amendment of this Agreement. No provision of this Agreement may be
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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.
15. Notices. Any notices under this Agreement shall be in writing,
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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 c/o Stephens Inc., 000 Xxxxxx Xxxxxx,
Xxxxxx Xxxx, Xxxxxxxx 00000, Attention: Secretary, and that of the Adviser shall
be Xxx Xxxx xx Xxxxxxx Xxxxx, 00xx Xxxxx, 000 Xxxxx Xxxxx Xxxxxx, Xxxxxxxxx,
Xxxxx Xxxxxxxx 00000, Attention: President.
16. Release. The names "Nations Funds Trust" and "Trustees of Nations Funds
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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
enforcement of any claims against the Trust.
17. Miscellaneous. This Agreement contains the entire understanding of the
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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.
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18. Governing Law. This Agreement shall be governed by, and construed in
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accordance with, Delaware law and the federal securities laws, including the
1940 Act and the Advisers Act.
19. Counterparts. This Agreement may be executed in any number of
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counterparts, each of which shall be deemed an original.
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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.
NATIONS FUNDS TRUST
on behalf of the Funds
By: /s/ A. Xxx Xxxxxx
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A. Xxx Xxxxxx
President and Chairman of the
Board of Trustees
BANC OF AMERICA ADVISORS, INC.
By: /s/ Xxxxxx X. Xxxxxx
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Xxxxxx X. Xxxxxx
President
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SCHEDULE I
The Trust shall pay the Adviser, as full compensation for services provided
and expenses assumed hereunder, an 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:
Rate of
Fund Compensation Effective Date
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Nations MidCap Index Fund 0.40% 03/30/00
Nations Kansas Municipal Income Fund 0.50% 07/14/00
Nations Financial Services Fund 0.75% 03/29/01
Nations Classic Value Fund 0.65% 04/09/01
Nations Global Value Fund 0.90% 04/09/01
Nations Asset Allocation Fund 0.65% 06/08/01
Nations Government Securities Fund 0.50% up to $100 million 06/08/01
0.45% up to $250 million
0.40% in excess of $250 million
Nations LifeGoal Growth Portfolio 0.25% 06/08/01
Nations LifeGoal Balanced Growth Portfolio 0.25% 06/08/01
Nations LifeGoal Income and Growth Portfolio 0.25% 06/08/01
Nations MidCap Value Fund 0.75% 11/19/01
Nations LargeCap Value Fund 0.65% 11/19/01
Nations New York Tax-Exempt Reserves 0.15% 02/15/02
Approved: December 9, 1999
Last Amended: February 15, 2002
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IN WITNESS WHEREOF, the parties hereto have caused this amended Schedule I
to be executed by their officers designated below as of the 15th day of
February, 2002.
BANC OF AMERICA ADVISORS, LLC
(formerly Banc of America Advisors, Inc.)
By: /s/ Xxxxxx X. Xxxxxx
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Xxxxxx X. Xxxxxx
President
NATIONS FUNDS TRUST
on behalf of the Funds
By: /s/ Xxxxxxx X. Xxxxx, Xx.
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Xxxxxxx X. Xxxxx, Xx.
Secretary
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