Exhibit (d)(x)
Xxxxxxx Investors Funds, Inc.
SUB-ADVISORY AGREEMENT
THIS AGREEMENT is made as of the 1st day of September, 2003 by and
among Xxxxxxx INVESTORS FUNDS, INC. a Maryland corporation (the "Fund"),
INVESTMENT COMPANY CAPITAL CORP., a Maryland corporation (the "Advisor"), and
DEUTSCHE ASSET MANAGEMENT INTERNATIONAL GmbH, a company organized under the laws
of the Federal Republic of Germany (the "Sub-Advisor").
WHEREAS, the Advisor is the investment advisor to the Fund, which is an
open-end, diversified management investment company registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), consisting of
several series of shares, each having its own investment policies.
WHEREAS, the Board of the Fund (the "Board") has selected the Advisor
to provide overall investment advice and management, and to provide certain
other services, under the terms and conditions provided in the Advisory
Agreement, dated March 28, 2001, between Investment Company Capital Corp. and
Xxxxxxx Investors Funds, Inc. (formerly, Deutsche Investors Funds, Inc.) (the
"Advisory Agreement").
NOW THEREFORE, in consideration of the mutual covenants herein
contained and other good and valuable consideration, the receipt whereof is
hereby acknowledged, the parties hereto agree as follows:
1. Appointment of Sub-Advisor. The Fund hereby appoints the Sub-Advisor
to act as the Sub-Advisor of each series listed in Schedule A to this Agreement
(each such series, together with all other series subsequently established by
the Fund and made subject to this Agreement in accordance with Section 10, being
herein referred to as "a Series", and collectively as "the Series") under the
supervision of the Board and the Advisor, and the Sub-Advisor hereby accepts
such appointment, all subject to the terms and conditions contained herein.
2. Delivery of Documents. The Fund has furnished the Sub-Advisor with
copies properly certified or authenticated of each of the following:
(a) The Fund's Articles of Incorporation, filed with the State
of Maryland on May 22, 1997 and all amendments thereto (such Articles
of Incorporation, as presently in effect and as they shall from time to
time be amended, is herein called the "Articles of Incorporation");
Page 1
(b) The Fund's By-Laws and all amendments thereto (such By-Laws,
as presently in effect and as they shall from time to time be amended,
are herein called the "By-Laws");
(c) Resolutions of the Fund's Board and shareholders authorizing
the appointment of the Sub-Advisor and approving this Agreement;
(d) The Fund's Registration Statement on Form N-1A under the
Securities Act of 1933, as amended (the "1933 Act") (File No.
333-07008) and under the 1940 Act as filed with the Securities and
Exchange Commission ("SEC") relating to the shares of the Fund on
behalf of the Series listed in Schedule A, and all amendments thereto;
and
(e) Each Series' most recent prospectus (such prospectus, as
presently in effect, and all amendments and supplements thereto are
herein called "Prospectus").
The Fund will furnish the Sub-Advisor from time to time with copies,
properly certified or authenticated, of all amendments or supplements to the
foregoing, if any, and all documents, notices and reports filed with the SEC.
The Sub-Advisor will provide the Series with copies of its Form ADV,
including all amendments thereto, as it is filed with the SEC.
3. Duties of Sub-Advisor. In carrying out its obligations under Section
1 hereof, the Sub-Advisor shall:
(a) provide the Series with such executive and clerical services
as are deemed advisable by the Board;
(b) determine which issuers and securities shall be represented
in the Series' portfolio and regularly report thereon to the Fund's
Board;
(c) formulate and implement continuing programs for the
purchases and sales of securities and regularly report thereon to the
Fund's Board;
(d) take, on behalf of the Series, all actions which appear
necessary to carry into effect such purchase and sale programs as
aforesaid, including the placing of orders for the Series' purchase and
sale of securities;
(e) obtain and evaluate pertinent information about significant
developments and economic, statistical and financial data, domestic,
foreign or otherwise, whether affecting the economy generally or the
Series, and whether concerning the individual issuers whose securities
are included in the Series' portfolio or the activities in which they
engage, or with respect to securities which the Advisor considers
desirable for inclusion in the Series' portfolio; and
Page 2
(f) provide the Advisor and the Fund with records concerning
the Sub-Advisor's activities which the Fund is required to maintain;
(g) render regular reports to the Advisor and the Fund's
officers and directors concerning the Sub-Advisor's discharge of its
responsibilities;
(h) discharge the foregoing responsibilities subject to the
control of the Board of the Fund and the overall supervision of the
Advisor and in compliance with such policies as the Directors or the
Advisor may from time to time establish, subject always to the
provisions of the Fund's Articles of Incorporation and By-Laws, and the
1940 Act, and in compliance with the objectives, policies, and
limitations for each Series as set forth in each Series' Prospectus and
statement of additional information, as amended from time to time, and
applicable laws and regulations.
Subject to the provisions of this Agreement, the duties of the
Sub-Advisor, the portion of portfolio assets of each Series that the Sub-Advisor
shall manage and the fees to be paid to the Sub-Advisor by the Advisor under and
pursuant to this Agreement may be adjusted from time to time by the Advisor,
with and upon the approval of the members of the Fund's Board who are not
"interested persons," as defined in the 1940 Act.
4. Portfolio Transactions. The Sub-Advisor is authorized in its
discretion to select the brokers or dealers that will execute the purchases and
sales of portfolio securities for a Series and is directed to use its best
efforts to obtain the best net results as described from time to time in a
Series' prospectus and statement of additional information. The Sub-Advisor will
promptly communicate to the Advisor and to the officers and the Directors of the
Fund such information relating to the portfolio transactions as they may be
reasonably request.
It is understood that the Sub-Advisor will not be deemed to have
acted unlawfully, or to have breached a fiduciary duty to the Fund or be in
breach of any obligation owing to the Fund under this Agreement, or otherwise,
solely by reason of its having directed a securities transaction on behalf of
the Fund to a broker-dealer in compliance with the provisions of Section 28(e)
of the Securities Exchange Act of 1934 or as otherwise permitted from time to
time by the Fund prospectus and statement of additional information.
Subject to the policies established by the Board in compliance with
applicable law, the Sub-Advisor may direct Deutsche Bank Securities Inc. or any
of its affiliates ("DBSI") to execute portfolio transactions for the Fund on an
agency basis. The commissions paid to DBSI must be, as required by Rule 17e-1
under the 1940 Act, "reasonable and fair compared to the commission, fee or
other remuneration received or to be received by other brokers in connection
with comparable transactions involving similar securities during a comparable
period of time." If the purchase or sale of securities consistent with the
investment policies of each Series or one or more other accounts of the
Sub-Advisor is considered at or about the same time, transactions in such
securities will be allocated among the accounts in a manner deemed equitable by
the Sub-
Page 3
Advisor. DBSI and the Sub-Advisor may combine such transactions, in accordance
with applicable laws and regulations, in order to obtain the best net price and
most favorable execution.
The Fund on behalf of each Series will not deal with the Sub-Advisor or
DBSI in any transaction in which the Sub-Advisor or DBSI acts as a principal
with respect to any part of a Series' order. If DBSI is participating in an
underwriting or selling group, a Series may not buy portfolio securities from
the group except in accordance with policies established by the Board in
compliance with rules of the SEC.
5. Control by Fund's Board. Any recommendations concerning a Series'
investment program proposed by the Sub-Advisor and the Advisor pursuant to this
Agreement, as well as any other activities undertaken by the Sub-Advisor on
behalf of a Series pursuant hereto, shall at all times be subject to any
applicable directives of the Board.
6. Compliance with Applicable Requirements. In carrying out its
obligations under this Agreement, the Sub-Advisor shall at all times conform to:
(a) all applicable provisions of the 1940 Act and any rules
and regulations adopted thereunder, as amended;
(b) the provisions of the Registration Statement of the Fund
under the 1933 Act and the 1940 Act;
(c) the provisions of the Articles of Incorporation;
(d) the provision of the By-Laws; and
(e) any other applicable provisions of state and federal law.
7. Expenses. The expenses connected with the Fund on behalf of each
Series shall be allocable between the Fund, the Sub-Advisor and the Advisor as
follows:
(a) The Sub-Advisor shall furnish at its expense and without
cost to the Fund, the services of one or more officers of the
Sub-Advisor, to the extent that such officers may be required by the
Series for the proper conduct of its affairs.
(b) The Sub-Advisor shall maintain, at its expense and without
cost to the Fund, a trading function in order to carry out its
obligations under Section 3 hereof to place orders for the purchase and
sale of portfolio securities for each Series.
(c) The Fund assumes and shall pay or cause to be paid all other
expenses of the Fund on behalf of each Series, including, without
limitation: payments to the Advisor under the Investment Advisory
Agreement between the Fund and the Advisor, payments
Page 4
to the Fund's distributor under the Fund's plan of distribution; the
charges and expenses of any registrar, any custodian or depository
appointed by the Fund for the safekeeping of each Series' cash,
portfolio securities and other property, and any transfer, dividend or
accounting agent or agents appointed by the Fund; brokers' commissions
chargeable to the Fund on behalf of each Series' in connection with
portfolio securities transactions to which the Fund is a party; all
taxes, including securities issuance and transfer taxes, and fees
payable by the Fund to Federal, State or other governmental agencies;
the costs and expenses of engraving or printing of certificates
representing shares of the Fund; all costs and expenses in connection
with the registration and maintenance of registration of the Fund and
its shares with the SEC and various states and other jurisdictions
(including filing fees, legal fees and disbursements of counsel); the
costs and expenses of printing, including typesetting, and distributing
prospectuses and statements of additional information of the Fund and
supplements thereto to the Fund's shareholders; all expenses of
shareholders' and Directors' meetings and of preparing, printing and
mailing of proxy statements and reports to shareholders; fees and
travel expenses of Directors or Director members of any advisory board
or committee; all expenses incident to the payment of any dividend,
distribution, withdrawal or redemption, whether in shares or in cash;
charges and expenses of any outside service used for pricing of the
Fund's shares; charges and expenses of legal counsel, including counsel
to the Directors of the Fund who are not "interested persons" (as
defined in the 0000 Xxx) of the Fund and of independent certified
public accountants, in connection with any matter relating to the Fund;
membership dues of industry associations; interest payable on Fund
borrowings; postage; insurance premiums on property or personnel
(including officers and Directors) of the Fund which inure to its
benefit; extraordinary expenses (including but not limited to, legal
claims and liabilities and litigation costs and any indemnification
related thereto); and all other charges and costs of the Fund's
operation unless otherwise explicitly provided herein
8. Compensation. For the services to be rendered hereunder by the
Sub-Advisor, the Advisor shall pay to the Sub-Advisor monthly compensation in
accordance with Schedule B. The Fund on behalf of each Series shall have no
responsibility for such compensation.
Except as hereinafter set forth, compensation under this Agreement
shall be calculated and accrued daily and the amounts of the daily accruals paid
monthly. For any period less than a full month during which this Agreement is in
effect, the fee shall be prorated according to the proportion, which such period
bears to a full month. Payment of the Sub-Advisor's compensation for the
preceding month shall be made as promptly as possible.
9. Delegation of Responsibilities. The Sub-Advisor may, but shall not
be under any duty to, perform services on behalf of the Fund which are not
required by this Agreement upon the request of the Fund's Board. Such services
will be performed on behalf of the Fund and the Sub-Advisor's charges in
rendering such services will be billed monthly to the Fund, subject to
examination by the Fund's independent certified public accountants. Payment or
assumption by the Sub-Advisor of any Fund expense that the Sub-Advisor is not
required to pay or assume under this Agreement shall not relieve the Sub-Advisor
of any of its obligations to the Fund nor
Page 5
obligate the Sub-Advisor to pay or assume any similar Fund expenses on any
subsequent occasions.
10. Additional Series and Classes. In the event that the Fund
establishes one or more series of Shares or one or more classes of Shares after
the effectiveness of this Agreement, such series of shares or classes of shares,
as the case may be, shall become Series and Classes under this Agreement upon
approval of this Agreement by the Fund with respect to the series of shares or
class of shares and the execution of an amended Appendix A reflecting the
applicable names and terms.
11. Duration and Termination. This Agreement, unless sooner terminated
as provided herein, shall remain in effect with respect to a Series until two
years from the date first set forth above, and thereafter, for periods of one
year so long as such continuance thereafter is specifically approved at least
annually (a) by the vote of a majority of those members of the Board of the Fund
who are not parties to this Agreement or interested persons of any such party,
cast in person at a meeting called for the purpose of voting on such approval,
and, except as may be otherwise permitted by then current law as modified or
interpreted by any applicable order or orders of the SEC or any rules or
regulations adopted by, or interpretative releases of, the SEC, (b) by vote of a
majority of the outstanding voting securities of a Series; provided however,
that if the shareholders of a Series fail to approve the Agreement as provided
in Section 15 of the 1940 Act, the Sub-Advisor may continue to serve hereunder
in the manner and to the extent permitted by the 1940 Act and rules and
regulations thereunder. The foregoing requirement that continuance of this
Agreement be "specifically approved at least annually" shall be construed in a
manner consistent with the 1940 Act as modified or interpreted by any applicable
order or orders of the SEC or any rules or regulations adopted by, or
interpretative releases of, the SEC.
This Agreement may be terminated as to a Series at any time, without
the payment of any penalty by vote of a majority of the members of the Board of
the Fund or by vote of a majority of the outstanding voting securities of a
Series or the Advisor on not less than 30 days nor more than 60 days written
notice to the Sub-Advisor, or by the Sub-Advisor at any time without the payment
of any penalty, on 60 days written notice to the Advisor and the Fund. This
Agreement will automatically and immediately terminate in the event of its
assignment. Any notice under this Agreement shall be given in writing, addressed
and delivered, or mailed postpaid, to the other party at any office of such
party.
As used in this Section 11, the term "assignment" shall have the
meaning as set forth in the 1940 Act and the rules and regulations thereunder,
subject to such exemptions as may be granted by the SEC.
12. Non-Exclusivity. Each of the Advisor and the Sub-Advisor hereby
represents and warrants that it is registered as an investment advisor under the
Investment Advisers Act of 1940, as amended. The services of the Sub-Advisor to
the Advisor and the Fund on behalf of each Series are not to be deemed to be
exclusive, and the Sub-Advisor shall be free to render investment advisory or
other services to others (including other investment companies) and to
Page 6
engage in other activities, so long as its services under this Agreement are not
impaired thereby. It is understood and agreed that officers and directors of the
Sub-Advisor may serve as officers or members of the Board of the Fund, and that
officers or members of the Board of the Fund may serve as officers or directors
of the Sub-Advisor to the extent permitted by law; and that the officers and
directors of the Sub-Advisor are not prohibited from engaging in any other
business activity or from rendering services to any other person, or from
serving as partners, officers or directors of any other firm or corporation,
including other investment companies.
13. Avoidance of Inconsistent Position. In connection with purchases or
sales of portfolio securities for the account of the Fund or a Series, neither
the Sub-Advisor nor any of its directors, officers or employees will act as
principal or agent or receive any commission. The Sub-Advisor shall not
knowingly recommend that a Series purchase, sell or retain securities of any
issuer in which the Sub-Advisor has a financial interest without obtaining prior
approval of the Advisor prior to the execution of any such transaction.
14. Liability of Sub-Advisor. In the performance of its duties
hereunder, the Sub-Advisor shall be obligated to exercise care and diligence and
to act in good faith to ensure the accuracy of all services performed under this
Agreement, but the Sub-Advisor shall not be liable for any act or omission which
does not constitute willful misfeasance, bad faith or gross negligence on the
part of the Sub-Advisor or its officers, Directors or employees, or reckless
disregard by the Sub-Advisor of its duties under this Agreement.
15. Notices. Any notices under this Agreement shall be in writing,
addressed and delivered or mailed postage paid to the other party at such
address as such other party may designate for the receipt of such notice.
Currently, such addresses are as follows: if for the Sub-Advisor, Xxxxxxx
Xxxxxxxxxxx 00, Xxxxxxxxx xx Xxxx 00000, Xxxxxxx; if for the Advisor and the
Fund, Xxx Xxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxx 00000.
16. Amendment of This Agreement. No provision of this Agreement may be
changed or waived orally, but only by an instrument in writing signed by the
party against which enforcement of the change or waiver is sought, and no
amendment to this Agreement shall be effective until approved by (a) the
Directors, including a majority of the members of the Board who are not
interested persons of the Advisor, the Sub-Advisor or (other than as Board
members) the Fund, cast in person at a meeting called for the purpose of voting
on such approval, and, except as may be otherwise permitted by then current law
as modified or interpreted by any applicable order or orders of the SEC or any
rules or regulations adopted by, or interpretative releases of, the SEC, (b) a
majority of the outstanding voting securities of a Series, as defined in the
1940 Act.
17. Questions of Interpretation. Any question of interpretation of any
term or provision of this Agreement having a counterpart in or otherwise derived
from a term or provision of the 1940 Act shall be resolved by reference to such
term or provision of the 1940 Act and to interpretations thereof, if any, by the
United States Courts or in the absence of any controlling decision of any such
court, by rules, regulations, orders or interpretative releases of the SEC
issued pursuant to said Act. In addition, where the effect of a requirement of
the 1940 Act reflected in any provision of this Agreement is revised by rule,
regulation, order or interpretative releases of
Page 7
the SEC, such provision shall be deemed to incorporate the effect of such rule,
regulation, order or interpretative releases. Otherwise the provisions of this
Agreement shall be interpreted in accordance with the laws of Maryland.
18. Severability. 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.
19. Counterparts. This Agreement may be executed simultaneously in two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.
Page 8
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate by their respective officers on the day and year first
above written.
[SEAL] XXXXXXX INVESTORS FUNDS, INC.
Attest:
--------------------------- By: /s/Xxxxx X. Xxxxxxxxx
Name: Name: Xxxxx X. Xxxxxxxxx
Title: Assistant Secretary
[SEAL] INVESTMENT COMPANY CAPITAL CORP.
Attest:
--------------------------- By: /s/Xxxxxxx X. Xxxx
Name: Name: Xxxxxxx X. Xxxx
Title: President
[SEAL] DEUTSCHE ASSET MANAGEMENT
INTERNATIONAL GmbH
Attest:
--------------------------- By:
Name: Name:
Title:
Page 9
Schedule A
Global Biotechnology Fund
Page 10
Schedule B
Compensation Table
------------------------------------------------------------ ---------------------------------------------------------
Fee
Fund (annualized % of average daily net assets)
---- ------------------------------------------
------------------------------------------------------------ ---------------------------------------------------------
------------------------------------------------------------ ---------------------------------------------------------
Global Biotechnology Fund 0.50%
------------------------------------------------------------ ---------------------------------------------------------
Page 11
