Exhibit (g)(14)
November 1, 2002
The Galaxy Fund
One Financial Center
Boston, Massachusetts 02110
RE: CUSTODIAN SERVICES FEES
Dear Sir/Madam:
This letter constitutes our agreement with respect to compensation to be
paid to PFPC Trust Company ("PFPC Trust") under the terms of a Custodian
Services Agreement dated November 1, 2002 between PFPC Trust and The Galaxy Fund
(the "Fund"), as amended from time to time (the "Agreement") for services
provided on behalf of each of the Fund's portfolios (the "Portfolios"). Pursuant
to Section 12 of the Agreement, and in consideration of the services to be
provided to each Portfolio, the Fund will pay PFPC Trust certain fees and
reimburse PFPC Trust for its out-of-pocket charges as follows:
DOMESTIC AND/OR GLOBAL CUSTODY FEES:
Domestic and/or global custody fees for each Portfolio are comprised
holding fees and transaction fees (domestic custody) and/or an annual acco
transaction fees per country (global custody) as more particularly set forth b
including but not limited to taxes, insurance, telephone and script fees.
DOMESTIC CUSTODY
The fees for Domestic Custody are comprised of three separate charges as
follows:
ANNUAL ACCOUNT FEE
Assets less than $100 million $ 5,000
Assets $100 - 500 million $ 7,500
Assets greater than $500 million $15,000
1
ANNUAL HOLDING FEE
Book Entry (DTC, FBE, etc.) $24.00
Physical $60.00
PTC $72.00
Euroclear/Cedel 3 basis points
TRANSACTION FEE
DTC $ 8.00
Fed Book Entry $ 8.00
Physical/Commercial Paper $22.00
Interfund Trades $ 5.00
Options $25.00
Futures $25.00
Repurchase Agreements $15.00
Note: Euroclear/Cedel holdings charge is based upon dollar value of holdings
(i.e. asset based charge).
GLOBAL CUSTODY
The fees for Global Custody are comprised of three separate charges as
follows:
ANNUAL ACCOUNT MAINTENANCE FEE
Fees are based on average net assets per Portfolio and include
management of custodian network, collection and settlement of
principal and income items and monitoring the quality of services
provided. Fees are billable on a monthly basis at the rate of
1/12 of the annual fee.
PORTFOLIO NET ASSETS ANNUAL FEE
Up to $100 million $25,000
$100 to $250 million $35,000
$250 to $500 million $45,000
Over $500 million Negotiable
2
ASSET AND TRANSACTION FEES PER COUNTRY
BASIS POINT TRANSACTION
COUNTRY CHARGE CHARGE
------- ------ ------
Argentina 22 $ 75
Australia 7 $ 30
Austria 12 $ 60
Belgium 7 $ 30
Canada 7 $ 30
Chile 20 $100
China 40 $100
Denmark 16 $ 60
Finland 16 $ 60
France 7 $ 30
Germany 7 $ 30
Greece 26 $120
Hong Kong 12 $ 60
India 40 $100
Indonesia 26 $120
Ireland 7 $ 30
Italy 7 $ 30
Japan (debt) 12 $ 60
Japan (equity) 7 $ 30
Malaysia 22 $120
Mexico 16 $ 60
Netherlands 7 $ 30
New Zealand 12 $ 60
Norway 12 $ 60
Philipines 22 $120
Singapore 22 $120
South Korea 20 $100
Spain 26 $120
Sweden 7 $ 30
Switzerland 7 $ 30
Taiwan 32.75 $120
Thailand 22 $120
Turkey 26 $120
United Kingdom 7 $ 30
Venezuela 22 $120
OUT-OF-POCKET AND OTHER CHARGES:
PFPC Trust's out-of-pocket and other charges, include, but are not
limited to, global sub-custody charges, data warehouse access fees, federal
express delivery, data transmissions, deconversion amounts, check processing
fees, segregated accounts and federal reserve wire fees.
3
MISCELLANEOUS:
On or about December 31, 2005, PFPC Trust will provide to the Fund's
Board of Trustees information on the custody fees paid by other funds which are
similar in size and type to the Fund, which information shall be obtained from
an independent third-party, such as Lipper Analytical Services. If the fees paid
by the Fund to PFPC Trust are not within industry standards as demonstrated by
such comparison, PFPC and the Fund agree to renegotiate such fees in good faith.
With respect to any daily net overdrawn cash balances for a Portfolio, a
monthly charge shall be assessed based on110% of the average federal funds rate
for that month.
PFPC Trust will, consistent with applicable law, sweep any net excess
cash balances daily into an investment vehicle or other instrument designated in
writing by the Fund (from which PFPC Trust may receive compensation), so long as
the vehicle or instrument is acceptable to PFPC Trust. PFPC Trust will credit
the Fund with such sweep earnings on a monthly basis.
The fee for the period from the day of the year this fee letter is
entered into until the end of that year shall be prorated according to the
proportion which such period bears to the full annual period.
4
If the foregoing accurately sets forth our agreement and you intend to be
legally bound thereby, please execute a copy of this letter and return it to us.
Very truly yours,
PFPC TRUST COMPANY
By: /s/ Xxx Xxxxxxxx XX
---------------------
Name: Xxx Xxxxxxxx XX
---------------------
Title: Vice President
---------------------
Agreed and Accepted:
THE GALAXY FUND
By: /s/ Xxxxx Xxxxxx
--------------------
Name: Xxxxx Xxxxxx
------------------
Title: Vice President
------------------
BUSINESS APPROVAL BY: /s/ Xx Xxxxx
---------------------
Date: November 12, 2002
-------------------------------------
Legal Approval By: /s/ Xxxxxxxxx X. Xxxxx
------------------------
Date: November 7, 2002
-------------------------------------
5
