EXHIBIT G(4)
FOREIGN CUSTODY MANAGER DELEGATION AGREEMENT
AGREEMENT made as of this ____ day of ____________ 1998 between Bear
Xxxxxxx Investment Trust (the "Fund"), a management investment company
registered with the Securities and Exchange Commission (the "Commission") under
the Investment Company Act of 1940 as amended, (the "Act"), acting through its
Board of Trustees or its duly appointed representative, and XXXXX BROTHERS
XXXXXXXX & CO., a New York limited partnership with an office in Boston,
Massachusetts (the "Delegate").
WITNESSETH
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WHEREAS the Fund has appointed the Delegate as custodian (the
"Custodian") of the Fund's Assets pursuant to a Custodian Agreement dated
January 8, 1993 as heretofore amended (the "Custodian Agreement");
WHEREAS the Fund may, from time to time, determine to invest and
maintain some or all of the Fund's Assets outside the United States;
WHEREAS the Trustees (the "Board") wish to delegate to the Delegate
certain functions with respect to the custody of Fund's Assets outside the
United States;
NOW, THEREFORE, in consideration of the mutual covenants and
agreements herein contained, the Fund and the Delegate agree as follows.
Capitalized terms shall have the meaning indicated in Section 12 unless
otherwise indicated.
1. Maintenance of Fund's Assets Abroad. The Fund, acting through its
-----------------------------------
Board or its duly authorized representative, hereby instructs Delegate pursuant
to the terms of the Custodian Agreement to place and maintain the Fund's Assets
within the countries listed in
Schedule 1 attached hereto (as such Schedule may be amended from time to time in
accordance herewith). Such instruction shall be deemed to include an instruction
to use any Compulsory Securities Depository in any such country and shall
represent a Proper Instruction under the terms of the Custodian Agreement.
Countries may be added to Schedule 1 by written instruction of the Fund that is
accepted in writing by the Delegate as an amendment to Schedule 1. With respect
to amendments adding countries to Schedule 1, the Fund acknowledges that - (a)
the Delegate shall perform services hereunder only with respect to the countries
where it provides custodial services to the Fund under the Custodian Agreement;
(b) depending on conditions in the particular country, advance notice may be
required before the Delegate shall be able to perform its duties hereunder in or
with respect to such country (such advance notice to be reasonable in light of
the specific facts and circumstances attendant to performance of duties in such
country); and (c) nothing in this Agreement shall require the Delegate to
provide delegated or custodial services in any country not listed in Schedule 1
until such amended Schedule 1 has been accepted by the Delegate in accordance
herewith.
2. Delegation. Pursuant to the provisions of Rule 17f-5 under the Act
----------
as amended, the Board hereby delegates to the Delegate, and the Delegate hereby
accepts such delegation and agrees to perform, only those duties set forth in
this Agreement concerning the safekeeping of the Fund's Assets in each of the
countries set forth in Schedule 1 hereto as amended from time to time. The
Delegate is hereby authorized to take such actions on behalf of or in the name
of the Fund as are reasonably required to discharge its duties under this
Agreement, including, without limitation, to cause the Fund's Assets to be
placed with a particular Eligible Foreign Custodian in accordance herewith. The
Fund confirms to the Delegate that the Fund or its investment adviser has
considered the Sovereign Risk and prevailing Country
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Risk as part of its continuing investment decision process, including such
factors as may be reasonably related to the systemic risk of maintaining the
Fund's Assets in a particular country, including, but not limited to, financial
infrastructure, prevailing custody and settlement systems and practices
(including the use of any Compulsory Securities Depository), and the laws
relating to the safekeeping and recovery of the Fund's Assets held in custody
pursuant to the terms of the Custodian Agreement.
3. Selection of Eligible Foreign Custodian and Contract
----------------------------------------------------
Administration. The Delegate shall perform the following duties with respect to
--------------
the selection of Eligible Foreign Custodians and administration of certain
contracts governing the Fund's foreign custodial arrangements:
(a) Selection of Eligible Foreign Custodian. The Delegate shall place
---------------------------------------
and maintain the Fund's Assets with an Eligible Foreign Custodian; provided that
the Delegate shall have determined that the Fund's Assets will be subject to
reasonable care based on the standards applicable to custodians in the relevant
market after considering all factors relevant to the safekeeping of such assets
including without limitation:
(i) The Eligible Foreign Custodian's practices, procedures, and
internal controls, including, but not limited to, the physical protections
available for certificated securities (if applicable), the controls and
procedures for dealing with any Securities Depository, the method of
keeping custodial records, and the security and data protection practices;
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(ii) Whether the Eligible Foreign Custodian has the requisite
financial strength to provide reasonable care for the Fund's Assets;
(iii) The Eligible Foreign Custodian's general reputation and
standing and, in the case of a Securities Depository, the depository's
operating history and number of participants; and
(iv) Whether the Fund will have jurisdiction over and be able to
enforce judgments against the Eligible Foreign Custodian, such as by virtue
of the existence of any offices of such Eligible Foreign Custodian in the
United States or such Eligible Foreign Custodian's appointment of an agent
for service of process in the United States or consent to jurisdiction in
the United States.
The Delegate shall be required to make the foregoing determination to the best
of its knowledge and belief based only on information reasonably available to
it.
(b) Contract Administration. In the case of an Eligible Foreign
-----------------------
Custodian that is not a Securities Depository or a U.S. Bank, the Delegate shall
cause that the foreign custody arrangements shall be governed by a written
contract that the Delegate has determined will provide reasonable care for Fund
assets based on the standards applicable to custodians in the relevant market
(or, in the case of a Securities Depository, by such contract, by the rules or
established practices and procedures of the Securities Depository, or by an
combination of the foregoing). Each such contract shall, except as set forth in
the last paragraph of this subsection (b), include provisions that provide:
-4-
(i) For indemnification or insurance arrangements (or any
combination of the Page 3 foregoing) such that the Fund will be adequately
protected against the risk of loss of assets held in accordance with such
contract;
(ii) That the Fund's Assets will not be subject to any right, charge,
security interest, lien or claim of any kind in favor of the Eligible
Foreign Custodian or its creditors except a claim of payment for their safe
custody or administration or, in the case of cash deposits, liens or rights
in favor of creditors of such Custodian arising under bankruptcy,
insolvency or similar laws;
(iii) That beneficial ownership of the Fund's Assets will be freely
transferable without the payment of money or value other than for safe
custody or administration;
(iv) That adequate records will be maintained identifying the Fund's
Assets as belonging to the Fund or as being held by a third party for the
benefit of the Fund;
(v) That the Fund's independent public accountants will be given
access to those records described in (iv) above, or confirmation of the
contents of such records; and
(vi) That the Delegate will receive sufficient and timely periodic
reports with respect to the safekeeping of the Fund's Assets, including,
but not limited to, notification of any transfer to or from the Fund's
account or a third party account containing the Fund's Assets.
Such contract may contain, in lieu of any or all of the provisions
specified in this Section 3 (b), such other provisions that the Delegate
determines will provide, in their entirety,
-5-
the same or a greater level of care and protection for the Fund's Assets as
the specified provisions, in their entirety.
(c) Limitation to Delegated Selection. Notwithstanding anything in
this Agreement to the contrary, the duties under this Section 3 shall apply only
to Eligible Foreign Custodians selected by the Delegate and shall not apply to
Compulsory Securities Depositories or to any Eligible Foreign Custodian that the
Delegate is directed to use pursuant to Section 7.
4. Monitoring. The Delegate shall establish a system to monitor at
----------
reasonable intervals (but at least annually) the appropriateness of maintaining
the Fund's Assets with each Eligible Foreign Custodian that has been selected by
the Delegate pursuant to Section 3 of this Agreement. The Delegate shall monitor
the continuing appropriateness of placement of the Fund's Assets in accordance
with the criteria established under Section 3(a) of this Agreement. The Delegate
shall monitor the continuing appropriateness of the contract governing the
Fund's arrangements in accordance with the criteria established under Section
3(b) of this Agreement.
5. Reporting. At least annually and more frequently as mutually
---------
agreed between the parties, the Delegate shall provide to the Board written
reports specifying placement of the Fund's Assets with each Eligible Foreign
Custodian selected by the Delegate pursuant to Section 3 of this Agreement and
shall promptly report as to any material changes to such foreign custody
arrangements. The Delegate will prepare such a report with respect to any
Eligible Foreign Custodian that the Delegate has been instructed to use pursuant
to Section 7 only to the extent specifically agreed with respect to the
particular situation. The Delegate shall promptly advise the Fund whenever a
custody arrangement of the Fund with any Eligible Foreign
-6-
Custodian selected by the Delegate pursuant to Section 3 above no longer meets
the requirements of Rule 17f-5.
6. Withdrawal of Fund's Assets. If the Delegate determines that an
---------------------------
arrangement with a specific Eligible Foreign Custodian selected by the Delegate
under Section 3 of this Agreement no longer meets the requirements of said
Section, Delegate shall withdraw the Fund's Assets from the non-complying
arrangement as soon as reasonably practicable; provided, however, that if in the
reasonable judgment of the Delegate, such withdrawal would require liquidation
of any of the Fund's Assets or would materially impair the liquidity, value or
other investment characteristics of the Fund's Assets, it shall be the duty of
the Delegate to provide information regarding the particular circumstances and
to act only in accordance with Proper Instructions of the Fund or its Investment
Advisor with respect to such liquidation or other withdrawal.
7. Direction as to Eligible Foreign Custodian. Notwithstanding this
------------------------------------------
Delegation Agreement, the Fund, acting through its Board, its Investment Adviser
or its other authorized representative, may direct the Delegate to place and
maintain the Fund's Assets with a particular Eligible Foreign Custodian. In such
event, the Delegate shall be entitled to rely on any such instruction as a
Proper Instruction under the terms of the Custodian Agreement and shall have no
duties under this Delegation Agreement with respect to such arrangement save
those that it may undertake specifically in writing with respect to each
particular instance.
8. Standard of Care. In carrying out its duties under this
----------------
Agreement, the Delegate agrees to exercise reasonable care, prudence and
diligence such as a person having responsibility for safekeeping the Fund's
Assets would exercise.
-7-
9. Provision of Information Regarding Country Risk. With respect to
-----------------------------------------------
the jurisdictions listed in Schedule 1, or added thereto pursuant to Section 1,
the Delegate agrees to provide annually to the Board such information relating
to Country Risk, if known by the Custodian, as is specified in Schedule 2 of
this Agreement.
10. Indemnification. The Delegate hereby agrees to indemnify the
---------------
Fund, its officers, trustees, employees or agents from any losses or liabilities
arising out of its failure to exercise the standard of care set forth in this
Agreement.
11. Arbitration of Disputes. To the extent permitted by law, all
-----------------------
disputes or claims arising under this Agreement shall be resolved through
arbitration. Arbitration under this Article shall be conducted according to the
Rules of the American Arbitration Association. Any arbitration will be conducted
in New York, New York and under the laws of the State of New York. This Article
shall be enforced and interpreted exclusively in accordance with applicable
federal law, including the Federal Arbitration Act.
12. Representations. The Delegate hereby represents and warrants that
---------------
it is a U.S. Bank and that this Agreement has been duly authorized, executed and
delivered by the Delegate and is a legal, valid and binding agreement of the
Delegate.
The Fund hereby represents and warrants that its Board of Directors
has determined that it is reasonable to rely on the Delegate to perform the
delegated responsibilities provided for herein and that this Agreement has been
duly authorized, executed and delivered by the Fund and is a legal, valid and
binding agreement of the Fund.
-8-
13. Effectiveness; Termination. This Agreement shall be effective as
--------------------------
of the date on which this Agreement shall have been accepted by the Delegate, as
indicated by the date set forth below the Delegate's signature. This Agreement
may be terminated at any time, without penalty, by written notice from the
terminating party to the non-terminating party. Such termination shall be
effective on the 30th day following the date on which the non-terminating party
shall receive the foregoing notice. The foregoing to the contrary
notwithstanding, this Agreement shall be deemed to have been terminated
concurrently with the termination of the Custodian Agreement.
14. Notices. Notices and other communications under this Agreement
-------
are to be made in accordance with the arrangements designated for such purpose
under the Custodian Agreement unless otherwise indicated in a writing
referencing this Agreement and executed by both parties.
15. Limitation of Liability. The Delegate understands that the
-----------------------
obligations of the Fund under this Agreement are not binding upon any Trustee or
shareholder of the Fund personally but bind only the Fund and the Fund's
Property. The Delegate represents that it has notice of the provision
disclaiming shareholder liability for acts or obligations of the Fund.
16. Definitions. Capitalized terms in this agreement have the
-----------
following meanings:
a. Compulsory Securities Depository - shall mean a Securities
Depository the use of which is mandatory (i) under applicable law
or regulation; (ii) because securities cannot be withdrawn from
the depository; or, (iii) because maintaining securities outside
the Securities Depository is not consistent with prevailing
custodial practices.
-9-
b. Country Risk - shall mean the systemic risk of holding
------------
assets in a particular country including, but not limited to, (a)
the necessity to use any Compulsory Securities Depository, (b)
such country's financial infrastructure, (c) such country's
prevailing custody and settlement practices, (d) nationalization,
expropriations or other government actions, (e) regulations of
the banking or securities industry, (f) currency controls,
restrictions, devaluations or fluctuations, and (g) market
conditions which affect the orderly execution of securities
transaction or affect the value of securities.
c. Eligible Foreign Custodian - shall have the meaning set
--------------------------
forth in Rule 17f-5(a)(1) and shall also include a U.S. Bank.
d. Fund's Assets - shall mean any of the Fund's investments
-------------
(including foreign currencies) for which the primary market is
outside the United States, and such cash and cash equivalents as
are reasonably necessary to effect the Fund's transactions in
such investments.
e. Proper Instructions - shall have the meaning set forth in
-------------------
the Custodian Agreement.
f. Securities Depository - shall have the meaning set forth in
---------------------
Rule 17f-5(a)(6).
g. Sovereign Risk - shall have the meaning set forth in Section
--------------
6.C. of the Custodian Agreement.
h. U.S. Bank - shall mean a bank which qualifies to serve as a
---------
custodian of assets of investment companies under Section 17(f)
of the Act.
17. Governing Law and Jurisdiction. This Agreement shall be construed
------------------------------
in accordance with the laws of the State of New York. The parties hereby submit
to the exclusive jurisdiction of the Federal courts sitting in the State of New
York or the Commonwealth of Massachusetts or of the state courts of either such
State or such Commonwealth.
18. Fees. Delegate shall perform its functions under this agreement
----
for the compensation determined under the Custodian Agreement.
-10-
19. Integration. This Agreement sets forth all of the Delegate's
-----------
duties with respect to the selection and monitoring of Eligible Foreign
Custodians, the administration of contracts with Eligible Foreign Custodians,
the withdrawal of assets from Eligible Foreign Custodians and the issuance of
reports in connection with such duties. The terms of the Custodian Agreement
shall apply generally as to matters not expressly covered in this Agreement,
including dealings with the Eligible Foreign Custodians in the course of
discharge of the Delegate's obligations under the Custodian Agreement.
20. Severability. Amendment and Assignment. In case any provision in
------------
or obligation under this Agreement shall be invalid, illegal or unenforceable in
any jurisdiction, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected thereby. This Agreement may not be
amended or modified in any manner except by a written agreement executed by both
parties. This Agreement shall extend to and shall be binding upon the parties
hereto, and their respective successors and assigns; provided, however, that
this Agreement shall not be assignable by either party without the written
consent of the other.
21. Counterparts. This Agreement may be executed in any number of
------------
counterparts, each of which shall be deemed to be an original but such
counterparts shall together, constitute only one instrument
22. Conflicts. In the event of any conflict between the Custodian
---------
Agreement between the parties and this Agreement, the terms of this Agreement
shall prevail.
-11-
NOW THEREFORE, the parties have caused this Agreement to be executed by its duly
authorized representatives, effective as of the date first above written.
XXXXX BROTHERS XXXXXXXX & CO. BEAR XXXXXXX
INVESTMENT TRUST
By: /s/ Xxxxxxx X. Xxxxxxx By: /s/ Xxxxx X. Xxxxxxx
----------------------------- ----------------------------------
Name: Xxxxxxx X. Xxxxxxx Name: Xxxxx X. Xxxxxxx
---------------------- ---------------------------
Title: Partner Title: Vice President & Treasurer
---------------------- ---------------------------
Date: 11/17/98 Date: 11/25/98
---------------------- ---------------------------
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SCHEDULE 1 TO BEAR XXXXXXX INVESTMENT TRUST
DELEGATION AGREEMENT
AS OF ________________, 0000
XXXXXXXXX
AUSTRALIA
AUSTRIA
BAHRAIN
BANGLADESH
BELGIUM
BERMUDA
BOTSWANA
BRAZIL
BULGARIA
CANADA
CHILE
CHINA
COLOMBIA
CZECH REPUBLIC
DENMARK
ECUADOR
EGYPT
FINLAND
FRANCE
GERMANY
GHANA
GREECE
HONG
KONG
HUNGARY
INDIA
INDONESIA
IRELAND
ISRAEL
ITALY
JAPAN
JORDAN
KENYA
KOREA
LEBANON
MALAYSIA
MAURITIUS
MEXICO
MOROCCO
NAMIBIA
-13-
XXXXX BROTHERS XXXXXXXX CO. - GLOBAL CUSTODY NETWORK
BEAR XXXXXXX INVESTMENT TRUST - EMERGING MARKETS DEBT PORTFOLIO
APPENDIX A
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COUNTRY SUBCUSTODIAN DEPOSITORIES
------- ------------ ------------
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00 XXXXXXXXX XXXXXXXX, X.X., XXXXXX XXXXX Xxxx xx Xxxxxxx
Citibank, N.A., New York Agt. 7/16/81 CRYL
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
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15 AUSTRALIA NATIONAL AUSTRALIA BANK LTD., MELBOURNE Austraclear Ltd.
National Australia Bank Agt. 5/1/85 CHESS
Agreement Amendment 2/13/92 Reserve Bank of
Omnibus Amendment 11/22/93 Australia
------------------------------------------------------------------------------------------------------------------------------------
20 AUSTRIA CREDITANSTALT AG OeKB
Creditanstalt Bankverein Agreement 12/18/89
Omnibus Amendment 1/17/94
------------------------------------------------------------------------------------------------------------------------------------
30 BAHRAIN BRITISH BANK OF THE MIDDLE EAST FOR HONGKONG & SHANGHAI BANKING CORP. None
LTD.
Honkong & Shanghai Banking Corp. Agt. 4/19/91
Omnibus Supplement 12/29/93
Schedule 5/14/96
BBME Supplement 5/14/96
Side Letter Agreement dated 7/28/97
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00 XXXXXXXXXX XXXXXXXX XXXXXXXXX XXXX, XXXXX Xxxx
Standard Chartered Bank Agreement 2/18/92
Omnibus Amendment 6/13/94
Appendix 4/8/96
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40 BELGIUM BANQUE BRUXELLES XXXXXXX CIK
Banque Bruxelles Xxxxxxx Agt. 11/15/90 National Bank of Belgium
Omnibus Amendment 3/1/94
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45 BERMUDA THE BANK OF N.T. XXXXXXXXXXX & SON LTD. None
The Bank of N.T. Xxxxxxxxxxx & Son Ltd. Agreement 5/27/97
------------------------------------------------------------------------------------------------------------------------------------
55 BOTSWANA STANBIC BANK BOTSWANA LIMITED for STANDARD BANK OF SOUTH AFRICA None
Standard Bank of South Africa Agreement 3/11/94
Subsidiary Amendment 9/29/79
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60 BRAZIL BANKBOSTON, N.A., SAO PAULO BOVESPA
The First National Bank of Boston Agreement 1/5/88 CLC
Omnibus Amendment 2/22/94
Amendment 7/29/96
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00 XXXXXXXX ING BANK, N.V. CDAD
ING Bank N.V. Agreement 9/15/97 BNB
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COUNTRY SUBCUSTODIAN DEPOSITORIES
------- ------------ ------------
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75 CANADA CANADIAN IMPERIAL BANK OF COMMERCE Bank of Canada
Canadian Imperial Bank of Commerce Agreement 9/9/88 CDS
Omnibus Amendment 12/1/93
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80 CANADA THE ROYAL BANK OF CANADA Bank of Canada
The Royal Bank of Canada Agreement 2/23/96 CDS
------------------------------------------------------------------------------------------------------------------------------------
85 CHILE CITIBANK, N.A., XXXXXXXX DCV
Citibank, N.A., New York Agreement 7/16/81
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
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90 CHINA STANDARD CHARTERED BANK, SHANGHAI SSCCRC
Standard Chartered Bank Agreement 2/18/92
Omnibus Amendment 6/13/94
Appendix 4/8/96
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95 CHINA STANDARD CHARTERED BANK, SHENZHEN SSCC
Standard Chartered Bank Agreement 2/18/92
Omnibus Amendment 6/13/94
Appendix 4/8/96
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100 COLOMBIA CITITRUST COLOMBIA, S.A. SOCIEDAD FIDUCIARIA FOR CITIBANK, N.A. DCV
Citibank, N.A., New York Agreement 7/16/81 Deceval
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
Citibank, N.A./Cititrust Colombia Agreement 12/2/91
Citibank, N.A. Subsidiary Amendment 10/19/95
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118 CZECH REPUBLIC CESKOSLOVENSKA OBCHODNI BANKA, A.S., PRAGUE SCP
Ceskoslovenska Obchondi Banka Agreement 2/28/94 Czech National Bank
------------------------------------------------------------------------------------------------------------------------------------
120 CZECH REPUBLIC CITIBANK, A.S. FOR CITIBANK N.A. SCP
Citibank, N.A., New York Agreement 7/16/81 Czech National Bank
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
Citibank N.A. / Citibank A.S. Agreement 6/24/96
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125 DENMARK DEN DANSE BANK VP
Den Danske Bank Agreement 1/1/89
Omnibus Amendment 12/1/93
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000 XXXXXXX CITIBANK, N.A., QUITO Deceval
Citibank, N.A., New York Agreement 7/16/81
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
Citibank, Quito Side Letter 7/3/95
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135 EGYPT CITIBANK, N.A., CAIRO MCSD
Citibank, N.A., New York Agt. 7/16/81
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
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COUNTRY SUBCUSTODIAN DEPOSITORIES
------- ------------ ------------
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145 FINLAND XXXXXX BANK FCSD
Union Bank of Finland Agreement 2/27/89
Omnibus Amendment 4/6/94
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000 XXXXXX CREDIT AGRICOLE INDOSUEZ SICOVAM
Banque Indosuez Agreement 7/19/90 Banque de France
Omnibus Amendment 3/10/94
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160 GERMANY DEUTSCHE BANK DBC
Deutsche Bank Agreement 8/21/96
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000 XXXXX XXXXXXXX XXXX (XXXXX) LIMITED FOR STANDARD BANK OF SOUTH AFRICA None
Standard Bank of South Africa Agreement 3/11/94
Subsidiary Amendment 9/29/97
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175 GREECE CITIBANK, N.A., ATHENS Apothetirion Titlon A.E.
Citibank, N.A., New York Agreement 7/16/81 Bank of Greece
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
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185 HONG KONG HONGKONG & SHANGHAI BANKING CORP. LTD., HONG KONG HKSCC
Hongkong & Shanghai Banking Corp. Agt. 4/19/91 CMU
Omnibus Supplement 12/29/93
Schedule 5/14/96
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195 HUNGARY CITIBANK BUDAPEST RT. FOR CITIBANK, N.A. KELER
Citibank, N.A., New York Agreement 7/16/81 Ltd.
New York Agreement Amendments 8/31/90 and 7/26/96
Citibank, N.A. Subsidiary Amendment 10/19/9
Citibank, N.A. / Citibank Budapest Agreement 6/23/92
Citibank, N.A. / Citibank Budapest Amendment 9/29/92
------------------------------------------------------------------------------------------------------------------------------------
200 INDIA CITIBANK, N.A, MUMBAI NSDL
Citibank, N.A., New York Agreement 7/16/81
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
Citibank, Mumbai Amendment 11/17/93
------------------------------------------------------------------------------------------------------------------------------------
000 XXXXXXXXX XXXXXXXX, X.X., XXXXXXX Xxxx
Xxxxxxxx, N.A. New York Agreement 7/16/81
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
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220 IRELAND ALLIED IRISH BANKS PLC CrestCo.
Allied Irish Banks Agreement 1/10/89 Gilt Settlement Office
Omnibus Amendment 4/8/94
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225 ISRAEL BANK HAPOALIM X.X. XXXX Clearinghouse Ltd.
Bank Hapoalim Agreement 8/27/92
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230 ISRAEL ISRAEL DISCOUNT BANK TASE Clearinghouse Ltd.
Israel Discount Bank Agreement 3/10/93
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COUNTRY SUBCUSTODIAN DEPOSITORIES
------- ------------ ------------
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235 ISRAEL UNITED MIZRAHI BANK TASE Clearinghouse Ltd.
United Mizrahi Bank Agreement 3/4/93
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000 XXXXX BANCA COMMERCIALE ITALIANA Monte Titoli
Banca Commerciale Italiana Agreement 5/8/89 Banca D'Italia
Agreement Amendment 10/8/93
Omnibus Amendment 12/14/93
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000 XXXXX THE BANK OF TOKYO - MITSUBISHI, LTD. JASDEC
Bank of Tokyo - Mitsubishi Agreement 6/17/96 Bank of Japan
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260 JORDAN ARAB BANK PLC None
Arab Bank PLC Agreement 4/5/95
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265 KENYA STANBIC BANK KENYA LIMITED FOR STANDARD BANK OF SOUTH AFRICA None
Standard Bank of South Africa Agreement 3/11/94
Subsidiary Amendment 9/29/97
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270 KOREA CITIBANK, N.A SEOUL KSD
Citibank, N.A. New York Agreement 7/16/81
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
Citibank, Seoul Agreement Supplement 10/28/94
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280 LEBANON BRITISH BANK OF THE MIDDLE EAST FOR HONGKONG & SHANGHAI BANKING CORP. Midclear
Hongkong & Shanghai Banking Corp. Agt. 4/19/91
Omnibus Supplement 12/29/93
Schedule 5/14/96
BBME Supplement 5/14/96
Side letter Agreement dated 7/28/97
------------------------------------------------------------------------------------------------------------------------------------
295 MALAYSIA HONGKONG BANK AMLAYSIA BERHAD Bank Negara Malaysia MCD
Hongkong & Shanghai Banking Corp. Agt. 4/19/91
Omnibus Supplement 12/29/93
Schedule 5/14/96
Malaysia Subsidiary Supplement 5/23/94
Side letter Agreement dated 7/28/97
------------------------------------------------------------------------------------------------------------------------------------
000 XXXXXXXXX XXXXXXXX & SHANGHAI BANKING CORP. LTD., MAURITIUS CDS
Hongkong & Shanghai Banking Corp. Agt. 4/19/91
Omnibus Supplement 12/29/93
Schedule 5/14/96
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000 XXXXXX CITIBANK MEXICO, S.A. Indeval
Citibank, N.A. New York Agreement 7/16/81 Banco de Mexico
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
Citibank Mexico, S.A. Amendment 2/28/95
------------------------------------------------------------------------------------------------------------------------------------
315 MOROCCO BANQUE MAROCAINE DU COMMERCE EXTERIEUR MAROCLEAR
BMCE Agreement 7/6/94
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-17-
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COUNTRY SUBCUSTODIAN DEPOSITORIES
------- ------------ ------------
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320 NAMIBIA STANDARD BANK NAMIBIA FOR STANDARD BANK OF SOUTH AFRICA None
Standard Bank of South Africa Agreement 3/11/94
Subsidiary Amendment 10/3/96
------------------------------------------------------------------------------------------------------------------------------------
000 XXXXXXXXXXX ABN-AMRO BANK NECIGEF
ABN-AMRO Agreement 12/19/88
------------------------------------------------------------------------------------------------------------------------------------
330 NEW ZEALAND NATIONAL AUSTRALIA BANK LTD., AUCKLAND NZCSD
National Australia Bank Agreement 5/1/85
Agreement Amendment 2/13/92
Omnibus Amendment 11/22/93
New Zealand Addendum 3/7/89
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335 NORWAY CHRISTIANIA BANK VPS
Christiania Bank Agreement 3/2/89
------------------------------------------------------------------------------------------------------------------------------------
345 OMAN BRITISH BANK OF THE MIDDLE EAST FOR HONGKONG & SHAGHAI BANKING CORP. MSM
LTD.
Hongkong & Shanghai Banking Corp. Agt. 4/19/91
Omnibus Supplement 12/29/93
Schedule 5/14/96
BBME Supplement 5/14/96
Side letter Agreement dated 7/28/97
------------------------------------------------------------------------------------------------------------------------------------
350 PAKISTAN STANDARD CHARTERED BANK, KARACHI CDC
Standard Chartered Bank Agreement 2/18/92
Omnibus Amendment 6/13/94
Appendix 4/8/96
------------------------------------------------------------------------------------------------------------------------------------
360 PERU CITIBANK N.A., LIMA CAVALI
Citibank, N.A., New York Agreement 7/16/81
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
------------------------------------------------------------------------------------------------------------------------------------
000 XXXXXXXXXXX XXXXXXXX, X.X., XXXXXX XXX
Xxxxxxxx, X.X., Xxx Xxxx Agreement 7/16/81 XXXX
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
------------------------------------------------------------------------------------------------------------------------------------
000 XXXXXX XXXXXXXX (XXXXXX), S.A. FOR CITIBANK, N.A. NDS
Citibank, N.A., New York Agreement 7/16/81 National Bank of Poland
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
Citibank Subsidiary Amendment 10/30/95
Citibank, N.A./Citibank Poland S.A. Agt. 11/6/92
------------------------------------------------------------------------------------------------------------------------------------
380 PORTUGAL BANCO COMERCIAL PORTUGUES CVM
Banco Comercial Portugues 5/18/98
------------------------------------------------------------------------------------------------------------------------------------
383 PORTUGAL BANCO ESPIRITO SANTO E COMERCIAL DE LISBOA, S.A. CVM
BESCL Agreement 4/26/89
Omnibus Amendment 2/23/94
------------------------------------------------------------------------------------------------------------------------------------
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COUNTRY SUBCUSTODIAN DEPOSITORIES
------- ------------ ------------
------------------------------------------------------------------------------------------------------------------------------------
385 ROMANIA ING BANK N.V. SNCDD
ING Bank N.V. Agreement 9/29/97 BSE
NBR
------------------------------------------------------------------------------------------------------------------------------------
395 RUSSIA CITIBANK T/O FOR CITIBANK, N.A. VTD
Citibank, N.A., New York Agt. 7/16/81 NDC
New York Agreement Amendments 8/31/90 and 7/26/96
Citibank, N.A. Subsidiary Amendment 10/19/95
Citibank N.A./Citibank T/O Agt. 6/16/97
Side Letter Agt. 8/18/97
Requires an Amendment to the Custodian Agreement
------------------------------------------------------------------------------------------------------------------------------------
400 SINGAPORE HONGKONG & SHANGHAI BANKING CORP. LTD., SINGAPORE CDP
Hongkong & Shanghai Banking Corp. Agt. 4/19/91
Omnibus Supplement 12/29/93
Schedule 5/14/96
------------------------------------------------------------------------------------------------------------------------------------
000 XXXXXXXX CESKOSLOVENSKA OBCHODNA BANKA, A.S., BRATISLAVA SCP
Ceskoslovenska Obchodna Banka Agreement 10/12/94 National Bank of
Slovakia
------------------------------------------------------------------------------------------------------------------------------------
000 XXXXXXXX ING BANK N.V. SCP
Master Subcustodian Agreement Pending National Bank of
Slovakia
------------------------------------------------------------------------------------------------------------------------------------
000 XXXXX XXXXXX FIRST NATIONAL BANK OF SOUTHERN AFRICA CD
First National Bank of Southern Africa Agt. 8/7/91
------------------------------------------------------------------------------------------------------------------------------------
000 XXXXX BANCO SANTANDER SCLV
Banco Santander Agreement 12/14/88 Banco de Espana
------------------------------------------------------------------------------------------------------------------------------------
445 SRI LANKA HONGKONG & SHANGHAI BANKING CORP. LTD., COLOMBO CDS
Hongkong & Shanghai Banking Corp., Agt. 4/19/91
Omnibus Supplemental 12/29/93
Schedule 5/14/96
------------------------------------------------------------------------------------------------------------------------------------
450 SWAZILAND STANBIC BANK SWAZILAND LIMITED FOR STANDARD None
BANK OF SOUTH AFRICA
Standard Bank of South Africa Agreement 3/11/94
Subsidiary Amendment 9/29/97
------------------------------------------------------------------------------------------------------------------------------------
455 SWEDEN SKANDINAVISKA ENSKILDA BANKEN VPC
Skandinaviska Enskilden Banken Agreement 2/20/89
Omnibus Amendment 12/3/93
------------------------------------------------------------------------------------------------------------------------------------
460 SWITZERLAND UBS AG SEGA
Union Bank of Switzerland Agreement 12/20/88
Omnibus Amendment 11/29/94
------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------
COUNTRY SUBCUSTODIAN DEPOSITORIES
------- ------------ ------------
------------------------------------------------------------------------------------------------------------------------------------
475 TAIWAN STANDARD CHARTERED BANK, TAIPEI TSCD
Standard Chartered Bank Agreement 2/18/92
Omnibus Amendment 6/13/94
Appendix 4/8/96
------------------------------------------------------------------------------------------------------------------------------------
480 THAILAND HONGKONG & SHANGHAI BANKING CORP. LTD., BANGKOK TSDC
Hongkong & Shanghai Banking Corp. Agt. 4/19/91
Omnibus Amendment 12/29/93
Schedule 5/14/96
------------------------------------------------------------------------------------------------------------------------------------
483 TRANSNATIONAL XXXXX BROTHERS XXXXXXXX & CO. Cedel
Euroclear
------------------------------------------------------------------------------------------------------------------------------------
000 XXXXXX CITIBANK, N.A., ISTANBUL Takasbank
Citibank, N.A., New York Agreement 7/16/81 Central Bank of Turkey
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
------------------------------------------------------------------------------------------------------------------------------------
000 XXXXXX XXXXXXX MIDLAND BANK PLC CGO
Midland Bank Agreement 8/8/90 CMO
Omnibus Amendment 12/15/93 CrestCo.
------------------------------------------------------------------------------------------------------------------------------------
520 URUGUAY BANKBOSTON, N.A., MONTEVIDEO None
The First National Bank of Boston Agreement 1/5/88
Omnibus Amendment 2/22/94
Amendment 7/29/96
------------------------------------------------------------------------------------------------------------------------------------
525 VENEZUELA CITIBANK, N.A., CARACAS CVV
Citibank, N.A., New York Agreement 7/16/81
New York Agreement Amendment 8/31/90
New York Agreement Amendment 7/26/96
------------------------------------------------------------------------------------------------------------------------------------
530 ZAMBIA STANBIC BANK ZAMBIA LTD. FOR STANDARD BANK OF SOUTH AFRICA XxXX Central Shares
Standard Bank of South Africa Agreement 3/11/94 Depository Ltd.
Subsidiary Amendment 10/3/96
------------------------------------------------------------------------------------------------------------------------------------
535 ZIMBABWE STANBIC BANK ZIMBABWE LTD. FOR STANDARD BANK OF SOUTH AFRICA None
Standard Bank of South Africa Agreement 3/11/94
Subsidiary Amendment 10/3/96
------------------------------------------------------------------------------------------------------------------------------------
-20-
I HEREBY CERTIFY THAT AT ITS MEETING ON NOVEMBER 12, 1998, THE BOARD
APPROVED THE COUNTRIES, SUBCUSTODIANS, AGREEMENTS AND CENTRAL DEPOSITORIES
LISTED ON THIS APPENDIX.
/s/ Xxxxx X. Xxxxxxx
------------------------------
SIGNATURE
NAME: Xxxxx X. Xxxxxxx
TITLE: Vice President & Treasurer
DATE: November 12, 1998
-21-
NETHERLANDS
NEW ZEALAND
NORWAY
OMAN
PAKISTAN
PERU
PHILIPPINES
POLAND
PORTUGAL
ROMANIA
RUSSIA
SINGAPORE
SLOVAKIA
SOUTH AFRICA
SPAIN
SRI LANKA
SWAZILAND
SWEDEN
SWITZERLAND
TAIWAN
THAILAND
TURKEY
UNITED KINGDOM
URUGUAY
VENEZUELA
ZAMBIA
ZIMBABWE
-22-
SCHEDULE 2
INFORMATION REGARDING COUNTRY RISK
To aid the Board in its determinations regarding Country Risk, the Delegate
will furnish the Board annually with respect to the jurisdictions specified in
Schedule 1, the following information:
1. Copy of Addenda or Side Letters to Subcustodian Agreements
2. Legal Opinion, if available, with regard to:
(a) Access to books and records by the Fund's accountants
(b) Ability to recover assets in the event of bankruptcy of a
custodian
(c) Ability to recover assets in the event of a loss
(d) Likelihood of expropriation or nationalization, if available
(e) Ability to repatriate or convert cash or cash equivalents
3. Audit Report of Subcustodian
4. Copy of Balance Sheet from Annual Report of Subcustodian
5. Summary of Central Depository Information including (on an
ongoing basis) prompt information as to any material change in the established
practices and procedures of any Securities Depository.
6. Country Profile Matrix containing market practice for:
(a) Delivery versus payment
(b) Settlement method
(c) Currency restrictions
(d) Buy-in practice
-23-
(e) Foreign ownership limits
(f) Unique market arrangements affecting custody or settlement
-24-
ADDENDUM TO THE APPENDIX A
--------------------------
Xxxxx Brothers Xxxxxxxx & Co. acting as delegate of the Board under Rule 17f-5
has reviewed and approved the subcustodians listed on this Appendix as well as
Agreements associated with these subcustodians, this Appendix is intended to
confirm placement of assets with these subcustodians. Depositories listed on
this Appendix that are not included in the next paragraph are considered
compulsory. Xxxxx Brothers Xxxxxxxx & Co. does not accept delegation for
compulsory depositories.
The depositories in Chile, Colombia, and Venezuela are presently elective. It is
not the current intention of Xxxxx Brothers Xxxxxxxx & Co. to use such
depositories unless their use becomes compulsory. Euroclear is compulsory for
fixed income obligations and elective for equities. Currently, Xxxxx Brothers
Xxxxxxxx & Co. uses Euroclear for settlement of equities where we are instructed
to do so. We do not use Euroclear for the ongoing safekeeping of equities.
We will be replacing Canadian Imperial Bank of Commerce (CIBC) with Royal Bank
of Canada (RBC) as subcustodian in Canada in the first quarter of 1999. As you
may know, BBH&Co. has employed a strategy of appointing multiple subcustodians
in certain markets when conditions warrant.
Xxxxx Brothers Xxxxxxxx & Co. will be converting assets from CSOB in the Czech
Republic to Citibank a.s. for Citibank N.A. in the first quarter of 1999.
Xxxxx Brothers Xxxxxxxx & Co. will be converting assets from BESCL in Portugal
to Banco Comercial Portugues in the fourth quarter of 1998.
Xxxxx Brothers Xxxxxxxx & Co. will be converting assets from CSOB in
Slovakia to Internationale Nederlanden Bank N.V. in the first quarter of 1999.
-25-