AMENDED AND RESTATED
INVESTMENT ADVISORY AGREEMENT
This AMENDED AND RESTATED AGREEMENT is made as of this 6th day of
August 2003, and amended as of October 1, 2005, between Xxxxx Fargo Funds Trust
(the "Trust"), a statutory trust organized under the laws of the State of
Delaware with its principal place of business at 000 Xxxxxx Xxxxxx, 00xx Xxxxx,
Xxx Xxxxxxxxx, Xxxxxxxxxx, 00000 and Xxxxx Fargo Funds Management, LLC (the
"Adviser"), a limited liability company organized under the laws of the State of
Delaware with its principal place of business at 000 Xxxxxx Xxxxxx, 00xx Xxxxx,
Xxx Xxxxxxxxx, Xxxxxxxxxx, 00000.
WHEREAS, the Trust is registered under the Investment Company Act of
1940, as amended (the "1940 Act") as an open-end management investment company
and is authorized to issue interests (as defined in the Trust's Declaration of
Trust, as amended and supplemented from time to time), in separate series; and
WHEREAS, the Trust desires that the Adviser provide investment advisory
services to each series of the Trust listed on Schedule A hereto as such
Schedule may be amended or supplemented from time to time by mutual agreement
(each a "Fund" and collectively the "Funds"), and the Adviser is willing to
provide those services on the terms and conditions set forth in this Agreement;
NOW THEREFORE, the Trust and the Adviser agree as follows:
SECTION 1. APPOINTMENT OF THE ADVISER. The Trust is engaged in the
business of investing and reinvesting its assets in securities of the type and
in accordance with the limitations specified in its Declaration of Trust, as
amended and supplemented from time to time, By-Laws (if any) and Registration
Statement filed with the Securities and Exchange Commission (the "Commission")
under the 1940 Act and the Securities Act of 1933 (the "Securities Act"),
including any representations made in the prospectus and statement of additional
information relating to the Funds contained therein and as may be amended or
supplemented from time to time, all in such manner and to such extent as may
from time to time be authorized by the Trust's Board of Trustees (the "Board").
The Board is authorized to issue any unissued shares in any number of additional
classes or series.
The investment authority granted to the Adviser shall include the
authority to exercise whatever powers the Trust may possess with respect to any
of its assets held by the Funds, including, but not limited to, the power to
exercise rights, options, warrants, conversion privileges, redemption
privileges, and to tender securities pursuant to a tender offer, and participate
in class actions and other legal proceedings on behalf of the Funds.
The Trust hereby employs Adviser, subject to the direction and control
of the Board, to manage the investment and reinvestment of the assets in the
Funds and, without limiting the generality of the foregoing, to provide the
other services specified in Section 2 hereof.
SECTION 2. DUTIES OF THE ADVISER.
(a) The Adviser shall make decisions with respect to all purchases and
sales of securities and other investment assets for the Funds. Among other
things, the Adviser shall make all decisions with respect to the allocation of
the Funds' investments in various securities or other assets, in investment
styles and, if applicable, in other investment companies or pooled vehicles in
which a Fund may invest. To carry out such decisions, the Adviser is hereby
authorized, as agent and attorney-in-fact for the Trust, for the account of, at
the risk of and in the name of the Trust, to place orders and issue instructions
with respect to those transactions of the Funds. In all purchases, sales and
other transactions in securities for the Funds, the Adviser is authorized to
exercise full discretion and act for the Trust in the same manner and with the
same force and effect as the Trust might or could do with respect to such
purchases, sales or other transactions, as well as with respect to all other
things necessary or incidental to the furtherance or conduct of such purchases,
sales or other transactions.
(b) The Adviser will report to the Board at each regular meeting
thereof regarding the investment performance of the Funds since the prior
report, and will also keep the Board informed of important developments
affecting the Trust, each Fund and the Adviser, and on its own initiative will
furnish the Board from time to time with such information as the Adviser may
believe appropriate, whether concerning the individual companies whose
securities are held by a Fund, the industries in which they engage, or the
economic, social or political conditions prevailing in each country in which a
Fund maintains investments. The Adviser will also furnish the Board with such
statistical and analytical information with respect to securities in the Funds
as the Adviser may believe appropriate or as the Board reasonably may request.
The Adviser shall promptly notify the Trust of (i) any changes
regarding the Adviser that would impact disclosure in the Trust's Registration
Statement, or (ii) any violation of any requirement, provision, policy or
restriction that the Adviser is required to comply with under Section 6 of this
Agreement. The Adviser shall immediately notify the Trust of any legal process
served upon it in connection with its activities hereunder, including any legal
process served upon it on behalf of the Funds or the Trust.
(c) The Adviser will from time to time employ or sub-contract the
services to certain persons as the Adviser believes to be appropriate or
necessary to assist in the execution of the Adviser's duties hereunder;
provided, however, that the employment or sub-contracting with any such person
shall not relieve the Adviser of its responsibilities or liabilities hereunder
and provided further that the Adviser shall not have the authority to
sub-contract advisory responsibilities without the consent of the Trust. The
cost of performance of such duties will be borne and paid by the Adviser. No
obligation may be imposed on the Trust in any such respect.
2
The Adviser shall supervise and monitor the activities of its
representatives, personnel, sub-contractors, and agents in connection with the
execution of its duties and obligations hereunder. The appropriate personnel of
the Adviser will be made available to consult with the Board at reasonable times
and upon reasonable notice concerning the business of the Trust.
(d) The Adviser shall maintain records relating to portfolio
transactions and the placing and allocation of brokerage orders as are required
to be maintained by the Trust under the 1940 Act. The Adviser shall prepare and
maintain, or cause to be prepared and maintained, in such form, for such periods
and in such locations as may be required by applicable law, all documents and
records relating to the services provided by the Adviser pursuant to this
Agreement required to be prepared and maintained by the Trust pursuant to the
rules and regulations of any national, state, or local government entity with
jurisdiction over the Trust, including the Commission and the Internal Revenue
Service. The books and records pertaining to the Trust which are in possession
of the Adviser shall be the property of the Trust. The Trust, or the Trust's
authorized representatives, shall have access to such books and records at all
times during the Adviser's normal business hours. Upon the reasonable request of
the Trust, copies of any such books and records shall be provided promptly by
the Adviser to the Trust or the Trust's authorized representatives.
(e) With respect to a Fund, the Adviser shall have no duties or
obligations pursuant to this Agreement, during any period during which the Fund
invests all (or substantially all) of its investment assets in a registered,
open-end management investment company, or separate series thereof, in
accordance with Section 12(d)(1)(E) under the 1940 Act.
SECTION 3. DELIVERY OF DOCUMENTS TO THE ADVISER. The Trust has
furnished the Adviser with true, correct and complete copies of the following
documents:
(a) The Declaration of Trust, as in effect on the date hereof;
(b) The Registration Statement filed with the Commission under
the 1940 Act and the Securities Act; and
(c) Written guidelines, policies and procedures adopted by the
Trust.
The Trust will furnish the Adviser with all future amendments and
supplements to the foregoing as soon as practicable after such documents become
available. The Trust shall furnish the Adviser with any further documents,
materials or information that the Adviser may reasonably request in connection
with the performance of its duties hereunder.
SECTION 4. DELEGATION OF RESPONSIBILITIES. The Adviser may carry out
any of its obligations under this Agreement by employing, subject to supervision
by the Adviser, one or more Sub-Adviser(s) who are registered as investment
advisers pursuant to the Investment Advisers Act of 1940 ("Sub-Advisers"). Each
Sub-Adviser's employment will be evidenced by a separate written agreement
approved by the Board and, if required under the 1940 Act, by the shareholders
of the Fund (unless the Commission or its staff has given authorization or
issued an interpretation dispensing with the requirement of shareholder
approval). The Adviser shall not be liable hereunder for any act or omission of
3
any Sub-Adviser, except for failure to exercise good faith in the employment of
the Sub-Adviser and for failure to exercise appropriate supervision of such
Sub-Adviser, and as may otherwise be agreed in writing. The Adviser shall be
solely responsible for compensating any Sub-Adviser for services rendered under
any Sub-Advisory Agreement. The Adviser may, from time to time and at any time,
terminate any Sub-Adviser and reassume the responsibilities assigned to such
Sub-Adviser with respect to any Fund without obtaining the approval of the
shareholders of the Fund.
SECTION 5. CONTROL BY BOARD. Any investment activities undertaken by
the Adviser pursuant to this Agreement, as well as any other activities
undertaken by the Adviser on behalf of the Funds, shall at all times be subject
to the direction and control of the Board.
SECTION 6. COMPLIANCE WITH APPLICABLE REQUIREMENTS. In carrying out its
obligations under this Agreement, the Adviser shall at all times comply with:
(a) all applicable provisions of the 1940 Act, and any rules and
regulations adopted thereunder;
(b) the Registration Statement of the Trust, as it may be amended from
time to time, filed with the Commission under the Securities Act and the 1940
Act;
(c) the provisions of the Declaration of Trust of the Trust, as it may
be amended from time to time;
(d) the provisions of the Internal Revenue Code of 1986, as amended,
applicable to the Trust or the Funds, and any rules and regulations adopted
thereunder; and
(e)any other applicable provisions of state or federal law, and any
rules and regulations adopted thereunder.
SECTION 7. PROXIES. The Adviser shall have responsibility to
vote proxies solicited with respect to issuers of securities in which assets of
the Funds are invested in accordance with the Trust's policies on proxy voting.
SECTION 8. BROKER-DEALER RELATIONSHIPS. In connection with the purchase
and sale of securities for the Funds, the Adviser is responsible for
broker-dealer selection and negotiation of brokerage commission rates. The
Adviser's primary consideration in effecting a security transaction will be to
obtain the best price and execution. In selecting a broker-dealer to execute
each particular transaction for a Fund, the Adviser will consider among other
things: the best net price available, the reliability, integrity and financial
condition of the broker-dealer; the size of and difficulty in executing the
order; and the value of the expected contribution of the broker-dealer to the
Fund on a continuing basis. Accordingly, the price to the Fund in any
transaction may be less favorable than that available from another broker-dealer
if the difference is reasonably justified by other aspects of the portfolio
execution services offered. Subject to such policies as the Board may from time
to time determine, the Adviser shall not be deemed to have acted unlawfully or
to have breached any duty created by this Agreement or otherwise solely by
4
reason of having caused a Fund to pay a broker or dealer that provides brokerage
and research services to the Adviser an amount of commission for effecting a
portfolio investment transaction in excess of the amount of commission another
broker or dealer would have charged for effecting that transaction, if the
Adviser determines in good faith that such amount of commission was reasonable
in relation to the value of the brokerage and research services provided by such
broker or dealer, viewed in terms of either that particular transaction or the
overall responsibilities of the Adviser with respect to the Fund and to other
clients of the Adviser. The Adviser is further authorized to allocate the orders
placed by it on behalf of the Funds to brokers and dealers who also provide
brokerage and research services within the meaning of Section 28(e) of the
Securities Exchange Act of 1934 and in compliance therewith. Such allocation
shall be in such amounts and proportions as the Adviser shall determine and the
Adviser will report on said allocations regularly to the Board, indicating the
brokers to whom such allocations have been made and the basis therefore.
SECTION 9. EXPENSES. All of the ordinary business expenses incurred in
the operations of the Funds and the offering of their shares shall be borne by
the Funds unless specifically provided otherwise in this Agreement. The expenses
borne by the Trust include, but are not limited to, brokerage commissions,
taxes, legal, auditing or governmental fees, the cost of preparing share
certificates, custodian, transfer agent and shareholder service agent costs,
expense of issue, sale, redemption and repurchase of shares, expenses of
registering and qualifying shares for sale, expenses relating to trustees and
shareholder meetings, the cost of preparing and distributing reports and notices
to shareholders, the fees and other expenses incurred by the Funds in connection
with membership in investment company organizations and the cost of printing
copies of prospectuses and statements of additional information distributed to
the Funds' shareholders.
The Adviser shall pay its own expenses in connection with the services
to be provided by it pursuant to this Agreement. In addition, the Adviser shall
be responsible for reasonable out-of-pocket costs and expenses incurred by the
Trust: (a) to amend the Trust's registration statement or supplement the Fund's
prospectus, and circulate the same, to reflect a change in the personnel of the
Adviser responsible for making investment decisions in relation to a Fund; (b)
to obtain shareholder approval of a new sub-advisory agreement as a result of a
"change in control" (as such term in defined in Section 2(a)(9) of the 0000 Xxx)
of the Adviser, or to otherwise comply with the 1940 Act, the Securities Act, or
any other applicable statute, law, rule or regulation, as a result of such
change; or (c) to meet other legal or regulatory obligations caused by actions
of the Adviser.
SECTION 10. COMPENSATION.
(a) As compensation for the advisory services provided under this
Agreement, the Trust shall pay the Adviser fees, payable monthly, at the annual
rates indicated on Schedule A hereto, as such Schedule may be amended or
supplemented from time to time;
(b) Except as provided in the following paragraph, no fee shall be
payable hereunder with respect to a Fund during any period in which the Fund
invests all (or substantially all) of its investment assets in a single
5
registered, open-end management investment company, or separate series thereof,
in accordance with Section 12(d)(1)(E) under the 1940 Act (a "Master-Feeder Fund
structure");
(c) The adviser shall receive a fee of 0.25% (0.35% in the case of the
WealthBuilder Funds) for asset allocation services if a Fund invests some of its
investment assets in one or more registered, open-end management investment
companies, or separate series thereof, in each case, in accordance with Section
12(d)(1)(G) under the Act, the rules thereunder or an exemptive order issued by
the Commission exempting the Fund from the provisions of Section 12(d)(1)(A)
under the Act (a "Fund of Funds structure").
(d) To the extent the Board determines that a Fund in a Master-Feeder
or Fund of Funds structure should invest a portion of its assets directly in
portfolio securities, rather than in a portfolio of Xxxxx Fargo Master Trust or
other portfolio, with respect to those assets the Fund will pay the Adviser the
same fee that the portfolio was paying its adviser (those fees will be disclosed
in the proxy statement and prospectus).
SECTION 11. STANDARD OF CARE. The Trust will expect of the Adviser, and
the Adviser will give the Trust the benefit of, the Adviser's best judgment and
efforts in rendering its services to the Trust, and the Adviser shall not be
liable hereunder for any mistake in judgment. In the absence of willful
misfeasance, bad faith, negligence or reckless disregard of obligations or
duties hereunder on the part of the Adviser or any of its officers, directors,
employees or agents, the Adviser shall not be subject to liability to the Trust
or to any shareholders of the Trust for any act or omission in the course of, or
connected with, rendering services hereunder or for any losses that may be
sustained in the purchase, holding or sale of any security.
SECTION 12. NON-EXCLUSIVITY. The services of the Adviser to the Funds
are not to be deemed to be exclusive, and the Adviser shall be free to render
investment advisory or other services to others (including other investment
companies) and to engage in other activities. It is understood and agreed that
officers or directors of the Adviser may serve as officers and directors of the
Trust, and that officers or directors of the Trust may serve as officers or
directors of the Adviser, to the extent that such services may be permitted by
law, and that the officers and directors of the Adviser are not prohibited from
engaging in any other business activity or from rendering services to any other
person, or from serving as partners, officers, directors or trustees of any
other firm or trust, including other investment advisory companies.
SECTION 13. RECORDS. The Adviser shall, with respect to orders the
Adviser places for the purchase and sale of portfolio securities of the Funds,
maintain or arrange for the maintenance of the documents and records required
pursuant to Rule 31a-1 under the 1940 Act as well as such records as the Funds'
administrator reasonably requests to be maintained, including, but not limited
to, trade tickets and confirmations for portfolio trades. All such records shall
be maintained in a form acceptable to the Trust and in compliance with the
provisions of Rule 31a-1 or any successor rule. All such records will be the
property of the Trust and will be made available for inspection and use by the
Trust and its authorized representatives.
6
SECTION 14. TERM AND APPROVAL. This Agreement shall become effective
with respect to a Fund after approved in accordance with the requirements of the
1940 Act, and executed by the Adviser and the Trust, and shall thereafter
continue from year to year, provided that the continuation of the Agreement is
specifically approved in accordance with the requirements of the 1940 Act, which
currently requires that the continuation be approved at least annually:
(a) by the Board, or by the vote of "a majority of the outstanding
voting securities" of the Fund (as defined in Section 2(a)(42) of the 1940 Act),
and
(b) by the affirmative vote of a majority of the Trust's Trustees 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 Trust), by
votes cast in person at a meeting specifically called for such purpose.
SECTION 15. TERMINATION. As required under the 1940 Act, this Agreement
may be terminated with respect to a Fund at any time, without the payment of any
penalty, by vote of the Board or by vote of a majority of a Fund's outstanding
voting securities, or by the Adviser, on sixty (60) days' written notice to the
other party. The notice provided for herein may be waived by the party entitled
to receipt thereof. This Agreement shall automatically terminate in the event of
its assignment, the term "assignment" for purposes of this paragraph having the
meaning defined in Section 2(a)(4) of the 1940 Act, as it may be interpreted by
the Commission or its staff in interpretive releases, or by the Commission staff
in no-action letters issued under the 1940 Act.
This Agreement may also be terminated immediately by the Trust or the
Adviser in the event that either party (i) breaches a material term of this
Agreement; or (ii) commits a material violation of any governing law or
regulation; or (iii) engages in conduct that would have a material adverse
effect upon the reputation or business prospects of such other party.
SECTION 16. INDEMNIFICATION BY THE ADVISER. The Trust shall not be
responsible for, and the Adviser shall indemnify and hold the Trust or any Fund
harmless from and against, any and all losses, damages, costs, charges, counsel
fees, payments, expenses and liability arising out of or attributable to the
willful misfeasance, bad faith, negligent acts or reckless disregard of
obligations or duties on the part of the Adviser or any of its officers,
directors, employees or agents.
SECTION 17. INDEMNIFICATION BY THE TRUST. In the absence of willful
misfeasance, bad faith, negligence or reckless disregard of duties hereunder on
the part of the Adviser or any of its officers, directors, employees or agents,
the Trust hereby agrees to indemnify and hold harmless the Adviser against all
claims, actions, suits or proceedings at law or in equity whether brought by a
private party or a governmental department, commission, board, bureau, agency or
instrumentality of any kind, arising from the advertising, solicitation, sale,
purchase or pledge of securities, whether of the Funds or other securities,
undertaken by the Funds, their officers, directors, employees or affiliates,
7
resulting from any violations of the securities laws, rules, regulations,
statutes and codes, whether federal or of any state, by the Funds, their
officers, directors, employees or affiliates.
SECTION 18. 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.
Until further notice to the other party, it is agreed that the address of the
Trust shall be 000 Xxxxxx Xxxxxx, 00xx Xxxxx, Xxx Xxxxxxxxx, Xxxxxxxxxx 00000,
Attention C. Xxxxx Xxxxxxx, and that of the Adviser shall be 000 Xxxxxx Xxxxxx,
00xx Xxxxx, Xxx Xxxxxxxxx, Xxxxxxxxxx 00000, Attention Xxxxx X. Xxxxxxx.
SECTION 19. 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 terms 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 or orders of the Commission,
interpretations of the Commission or its staff, or Commission staff no-action
letters, issued pursuant to the 1940 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 or order of the Commission, such provision shall be
deemed to incorporate the effect of such rule, regulation or order. The duties
and obligations of the parties under this Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware to the extent
that state law is not preempted by the provisions of any law of the United
States heretofore or hereafter enacted.
SECTION 20. AMENDMENT OF THIS AGREEMENT. This Agreement supersedes the
advisory agreement between the parties hereto dated March 1, 2001. No provision
of this Agreement may be changed, waived, discharged or terminated orally, but
only by an instrument in writing signed by the party against which enforcement
of the change, waiver, discharge or termination is sought. If shareholder
approval of an amendment is required under the 1940 Act, no such amendment shall
become effective until approved by a vote of the majority of the outstanding
shares of the affected Funds. Otherwise, a written amendment of this Agreement
is effective upon the approval of the Board and the Adviser.
SECTION 21. XXXXX FARGO NAME. The Adviser and the Trust each agree that
the name "Xxxxx Fargo," which comprises a component of the Trust's name, is a
property right of the parent of the Adviser. The Trust agrees and consents that:
(i) it will use the words "Xxxxx Fargo" as a component of its corporate name,
the name of any series or class, or all of the above, and for no other purpose;
(ii) it will not grant to any third party the right to use the name "Xxxxx
Fargo" for any purpose; (iii) the Adviser or any corporate affiliate of the
Adviser may use or grant to others the right to use the words "Xxxxx Fargo," or
any combination or abbreviation thereof, as all or a portion of a corporate or
business name or for any commercial purpose, other than a grant of such right to
another registered investment company not advised by the Adviser or one of its
affiliates; and (iv) in the event that the Adviser or an affiliate thereof is no
longer acting as investment adviser to any Fund, the Trust shall, upon request
by the Adviser, promptly take such action as may be necessary to change its
corporate name to one not containing the words "Xxxxx Fargo" and following such
change, shall not use the words "Xxxxx Fargo," or any combination thereof, as a
8
part of its corporate name or for any other commercial purpose, and shall use
its best efforts to cause its trustees, officers and shareholders to take any
and all actions that the Adviser may request to effect the foregoing and to
reconvey to the Adviser any and all rights to such words.
SECTION 22. RISK ACKNOWLEDGEMENT. The Adviser does not guarantee the
future performance of the Funds or any specific level of performance, the
success of any investment decision or strategy that the Adviser may use, or the
success of the Adviser's overall management of the Funds. The Trust understands
that investment decisions made for the Funds by the Adviser are subject to
various market, currency, economic and business risks, and that those investment
decisions will not always be profitable. The Adviser will manage only the
securities, cash and other investments for which management responsibility is
delegated to it and which are held in the Funds' account(s) and, in making
investment decisions for the Funds, the Adviser will not consider any other
securities, cash or other investments owned by the Trust.
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
written above.
XXXXX FARGO FUNDS TRUST
on behalf of the Funds
By: ________________________
C. Xxxxx Xxxxxxx
Secretary
XXXXX FARGO FUNDS MANAGEMENT, LLC
By: ________________________
Xxxxxx Xxxx
Senior Vice President
9
SCHEDULE A
XXXXX FARGO FUNDS MANAGEMENT
INVESTMENT ADVISORY AGREEMENT
XXXXX FARGO FUNDS TRUST
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
1. Aggressive Allocation Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
2. Asia Pacific Fund First 500M 1.10
Next 500M 1.05
Next 2B 1.00
Next 2B 0.975
Over 5B 0.95
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
3. Asset Allocation Fund First 500M 0.65
Next 500M 0.60
Next 2B 0.55
Next 2B 0.525
Over 5B 0.50
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
4. Balanced Fund(1) First 500M 0.65
Next 500M 0.60
Next 2B 0.55
Next 2B 0.525
Over 5B 0.50
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
5. California Limited-Term Tax-Free Fund First 500M 0.40
Next 500M 0.35
Next 2B 0.30
Next 2B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
6. California Tax-Free Fund First 500M 0.40
Next 500M 0.35
Next 2B 0.30
Next 2B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
7. California Tax-Free Money Market Fund First 1B 0.30
Next 4B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
8. California Tax-Free Money Market Trust 0.00
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
9. Capital Growth Fund First 500M 0.70
Next 500M 0.65
Next 2B 0.60
Next 2B 0.575
Over 5B 0.55
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
----------
(1) On November 7, 2007, the Board of Trustees approved the merger of the
Balanced Fund into the Asset Allocation Fund. Subject to shareholder
approval, the fund merger is expected to occur before the end of the third
quarter of 2008.
A-1
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
10. Cash Investment Money Market Fund 0.10
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
11. Colorado Tax-Free Fund First 500M 0.40
Next 500M 0.35
Next 2B 0.30
Next 2B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
12. Common Stock Fund First 500M 0.75
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
13. Conservative Allocation Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
14. Corporate Bond Fund(2) First 500M 0.45
Next 500M 0.40
Next 2B 0.35
Next 2B 0.325
Over 5B 0.30
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
15. C&B Mid Cap Value Fund First 500M 0.75
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
16. C&B Large Cap Value Fund(3) First 500M 0.75**
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
17. Discovery Fund First 500M 0.75
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
18. Diversified Bond Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
19. Diversified Equity Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
20. Diversified Small Cap Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
----------
(2) On November 7, 2007, the Board of Trustees approved the merger of the
Corporate Bond Fund into the Income Plus Fund. Subject to shareholder
approval, the fund merger is expected to occur before the end of the third
quarter of 2008.
(3) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the C&B Large Cap Value Fund. Effective February 1, 2008, the advisory
fees will be as follows: first 500 million 0.70%; next 500 million 0.65%;
next 2 billion 0.60%; next 2 billion 0.575%; and over 5 billion 0.55%.
A-2
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
21. Dividend Income Fund(4) First 500M 0.70
Next 500M 0.65
Next 2B 0.60
Next 2B 0.575
Over 5B 0.55
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
22. Emerging Growth Fund(5) First 500M 0.90**
Next 500M 0.85
Next 2B 0.80
Next 2B 0.775
Over 5B 0.75
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
23. Emerging Markets Focus Fund(6) First 500M 1.10
Next 500M 1.05
Next 2B 1.00
Next 2B 0.975
Over 5B 0.95
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
24. Endeavor Large Cap Fund(7) First 500M 0.70
Next 500M 0.65
Next 2B 0.60
Next 2B 0.575
Over 5B 0.55
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
25. Endeavor Select Fund First 500M 0.70
Next 500M 0.65
Next 2B 0.60
Next 2B 0.575
Over 5B 0.55
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
26. Enterprise Fund First 500M 0.75
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
27. Equity Income Fund(8) First 500M 0.75**
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
----------
(4) On November 7, 2007, the Board of Trustees approved a sub-adviser change to
the Dividend Income Fund. Subject to shareholder approval of a new
sub-advisory agreement, the Fund will be renamed as the Large Company Value
Fund, which is expected to occur before the end of the second quarter of
2008.
(5) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Emerging Growth Fund. Effective February 1, 2008, the advisory fees
will be as follows: first 500 million 0.85%; next 500 million 0.825%; next
1 billion 0.80%; next 1 billion 0.775%; and over 3 billion 0.75%.
(6) On November 7, 2007, the Board of Trustees approved the name change of the
Emerging Markets Focus Fund to the Emerging Markets Equity Fund, effective
February 1, 2008.
(7) On November 7, 2007, the Board of Trustees approved the merger of the
Endeavor Large Cap Fund into the Capital Growth Fund. The fund merger is
expected to occur before the end of the third quarter of 2008.
A-3
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
28. Equity Index Fund(9) First 1B 0.10
Next 4B 0.075
Over 5B 0.05
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
29. Equity Value Fund(10) First 500M 0.75**
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
30. Government Money Market Fund 0.10
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
31. Government Securities Fund First 500M 0.45
Next 500M 0.40
Next 2B 0.35
Next 2B 0.325
Over 5B 0.30
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
32. Growth Balanced Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
33. Growth Equity Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
34. Growth Fund First 500M 0.75
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
35. Growth and Income Fund(11) First 500M 0.70
Next 500M 0.65
Next 2B 0.60
Next 2B 0.575
Over 5B 0.55
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
36. Heritage Money Market Fund 0.10
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
37. High Income Fund First 500M 0.55
Next 500M 0.50
Next 2B 0.45
Next 2B 0.425
Over 5B 0.40
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
----------
(8) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Equity Income Fund. Effective February 1, 2008, the advisory fees
will be as follows: first 500 million 0.70%; next 500 million 0.65%; next 2
billion 0.60%; next 2 billion 0.575%; and over 5 billion 0.55%.
(9) On November 7, 2007, the Board of Trustees approved the merger of the
Equity Index Fund into the Index Fund. The fund merger is expected to occur
before the end of the third quarter of 2008.
(10) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Equity Value Fund. Effective February 1, 2008, the advisory fees
will be as follows: first 500 million 0.70%; next 500 million 0.65%; next 2
billion 0.60%; next 2 billion 0.575%; and over 5 billion 0.55%.
(11) On November 7, 2007, the Board of Trustees approved the merger of the Large
Company Core Fund into the Growth and Income Fund. Subject to shareholder
approval of the fund merger, the name of the Growth and Income Fund will
change to the Large Company Core Fund before the end of the third quarter
of 2008.
A-4
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
38. High Yield Bond Fund(12) First 500M 0.55
Next 500M 0.50
Next 2B 0.45
Next 2B 0.425
Over 5B 0.40
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
39. Income Plus Fund First 500M 0.55
Next 500M 0.50
Next 2B 0.45
Next 2B 0.425
Over 5B 0.40
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
40. Index Fund First 1B 0.10**
Next 4B 0.075
Over 5B 0.05
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
41. Inflation-Protected Bond Fund First 500M 0.45**
Next 500M 0.40
Next 2B 0.35
Next 2B 0.325
Over 5B 0.30
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
42. Intermediate Government Income Fund(13) First 500M 0.45
Next 500M 0.40
Next 2B 0.35
Next 2B 0.325
Over 5B 0.30
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
43. Intermediate Tax-Free Fund(14) First 500M 0.40
Next 500M 0.35
Next 2B 0.30
Next 2B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
44. International Core Fund First 500M 0.95
Next 500M 0.90
Next 2B 0.85
Next 2B 0.825
Over 5B 0.80
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
45. International Equity Fund First 500M 0.95
Next 500M 0.90
Next 2B 0.85
Next 2B 0.825
Over 5B 0.80
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
----------
(12) On November 7, 2007, the Board of Trustees approved the merger of the High
Yield Bond Fund into the High Income Fund. Subject to shareholder approval,
the fund merger is expected to occur before the end of the third quarter of
2008.
(13) On November 7, 2007, the Board of Trustees approved the merger of the
Intermediate Government Income Fund into the Government Securities Fund.
Subject to shareholder approval, the fund merger is expected to occur
before the end of the third quarter of 2008.
(14) On November 7, 2007, the Board of Trustees approved the name change of the
Intermediate Tax-Free Fund to the Intermediate Tax/AMT-Free Fund, effective
November 1, 2008.
A-5
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
46. International Value Fund First 500M 0.95**
Next 500M 0.90
Next 2B 0.85
Next 2B 0.825
Over 5B 0.80
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
47. Large Cap Appreciation Fund(15) First 500M 0.70**
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
48. Large Cap Growth Fund First 500M 0.70
Next 500M 0.65
Next 2B 0.60
Next 2B 0.575
Over 5B 0.55
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
49. Large Company Core Fund(16) First 500M 0.70
Next 500M 0.65
Next 2B 0.60
Next 2B 0.575
Over 5B 0.55
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
50. Large Company Growth Fund(17) First 500M 0.75**
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
51. Life Stage - Aggressive Portfolio(18) 0.00
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
52. Life Stage - Conservative Portfolio(19) 0.00
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
53. Life Stage - Moderate Portfolio(20) 0.00
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
----------
(15) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Large Cap Appreciation Fund. Effective February 1, 2008, the
advisory fees will be as follows: first 500 million 0.70%; next 500 million
0.65%; next 2 billion 0.60%; next 2 billion 0.575%; and over 5 billion
0.55%.
(16) On November 7, 2007, the Board of Trustees approved the merger of the Large
Company Core Fund into the Growth and Income Fund. The fund merger is
expected to occur before the end of the third quarter of 2008.
(17) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Large Company Growth Fund. Effective February 1, 2008, the advisory
fees will be as follows: first 500 million 0.70%; next 500 million 0.65%;
next 2 billion 0.60%; next 2 billion 0.575%; and over 5 billion 0.55%.
(18) On November 7, 2007, the Board of Trustees approved the merger of the Life
Stage - Aggressive Portfolio into the Aggressive Allocation Fund. Subject
to shareholder approval, the fund merger is expected to occur before the
end of the third quarter of 2008.
(19) On November 7, 2007, the Board of Trustees approved the merger of the Life
Stage - Conservative Portfolio into the Moderate Balanced Fund. Subject to
shareholder approval, the fund merger is expected to occur before the end
of the third quarter of 2008.
(20) On November 7, 2007, the Board of Trustees approved the merger of the Life
Stage - Moderate Portfolio into the Growth Balanced Fund. Subject to
shareholder approval, the fund merger is expected to occur before the end
of the third quarter of 2008.
A-6
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
54. Managed Account CoreBuilder Shares Series G(21) 0.00
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
55. Managed Account CoreBuilder Shares Series M(21) 0.00
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
56. Mid Cap Disciplined Fund First 500M 0.75
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
57. Mid Cap Growth Fund First 500M 0.75
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
58. Minnesota Money Market Fund First 1B 0.30
Next 4B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
59. Minnesota Tax-Free Fund First 500M 0.40
Next 500M 0.35
Next 2B 0.30
Next 2B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
60. Moderate Balanced Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
61. Money Market Fund First 1B 0.30
Next 4B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
62. Money Market Trust 0.00
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
63. Municipal Bond Fund First 500M 0.40
Next 500M 0.35
Next 2B 0.30
Next 2B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
64. Municipal Money Market Fund First 1B 0.30
Next 4B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
65. National Limited-Term Tax-Free Fund(22) First 500M 0.40
Next 500M 0.35
Next 2B 0.30
Next 2B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
----------
(21) On November 7, 2007, the Board of Trustees approved the establishment of
the Xxxxx Fargo Managed Account CoreBuilder Shares Series G and the Xxxxx
Fargo Managed Account CoreBuilder Shares Series M, which are expected to
commence operations on or about February 29, 2008.
(22) On November 7, 2007, the Board of Trustees approved the merger of the
National Limited-Term Tax-Free Fund into the Short-Term Municipal Bond
Fund. Subject to shareholder approval, the fund merger is expected to occur
before the end of the third quarter of 2008.
A-7
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
66. National Tax-Free Fund(23) First 500M 0.40
Next 500M 0.35
Next 2B 0.30
Next 2B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
67. National Tax-Free Money Market Fund 0.10
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
68. National Tax-Free Money Market Trust 0.00
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
69. Nebraska Tax-Free Fund(24) First 500M 0.40
Next 500M 0.35
Next 2B 0.30
Next 2B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
70. Opportunity Fund First 500M 0.75
Next 500M 0.70
Next 2B 0.65
Next 2B 0.625
Over 5B 0.60
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
71. Overland Express Sweep Fund First 1B 0.30
Next 4B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
72. Overseas Fund(25) First 500M 0.95
Next 500M 0.90
Next 2B 0.85
Next 2B 0.825
Over 5B 0.80
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
73. Prime Investment Money Market Fund 0.10
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
74. Short Duration Government Bond Fund First 500M 0.45
Next 500M 0.40
Next 2B 0.35
Next 2B 0.325
Over 5B 0.30
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
75. Short-Term Bond Fund First 500M 0.45
Next 500M 0.40
Next 2B 0.35
Next 2B 0.325
Over 5B 0.30
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
----------
(23) On November 7, 2007, the Board of Trustees approved the merger of the
National Tax-Free Fund into the Municipal Bond Fund. Subject to shareholder
approval, the fund merger is expected to occur before the end of the third
quarter of 2008.
(24) On November 7, 2007, the Board of Trustees approved the liquidation of the
Nebraska Tax-Free Fund. The liquidation is expected to occur on or about
January 25, 2008.
(25) On November 7, 2007, the Board of Trustees approved the merger of the
Overseas Fund into the International Equity Fund. Subject to shareholder
approval, the fund merger is expected to occur before the end of the third
quarter of 2008.
A-8
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
76. Short-Term High Yield Bond Fund First 500M 0.55
Next 500M 0.50
Next 2B 0.45
Next 2B 0.425
Over 5B 0.40
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
77. Short-Term Municipal Bond Fund First 500M 0.40
Next 500M 0.35
Next 2B 0.30
Next 2B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
78. Small Cap Disciplined Fund(26) First 500M 0.90
Next 500M 0.85
Next 2B 0.80
Next 2B 0.775
Over 5B 0.75
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
79. Small Cap Growth Fund(27) First 500M 0.90
Next 500M 0.85
Next 2B 0.80
Next 2B 0.775
Over 5B 0.75
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
80. Small Cap Opportunities Fund(28) First 500M 0.90
Next 500M 0.85
Next 2B 0.80
Next 2B 0.775
Over 5B 0.75
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
81. Small Cap Value Fund(29) First 500M 0.90
Next 500M 0.85
Next 2B 0.80
Next 2B 0.775
Over 5B 0.75
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
----------
(26) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Small Cap Disciplined Fund. Effective March 1, 2008, the advisory
fees will be as follows: first 500 million 0.85%; next 500 million 0.825%;
next 1 billion 0.80%; next 1 billion 0.775%; and over 3 billion 0.75%.
(27) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Small Cap Growth Fund. Effective March 1, 2008, the advisory fees
will be as follows: first 500 million 0.85%; next 500 million 0.825%; next
1 billion 0.80%; next 1 billion 0.775%; and over 3 billion 0.75%.
(28) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Small Cap Opportunities Fund. Effective March 1, 2008, the advisory
fees will be as follows: first 500 million 0.85%; next 500 million 0.825%;
next 1 billion 0.80%; next 1 billion 0.775%; and over 3 billion 0.75%.
(29) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Small Cap Value Fund. Effective March 1, 2008, the advisory fees
will be as follows: first 500 million 0.85%; next 500 million 0.825%; next
1 billion 0.80%; next 1 billion 0.775%; and over 3 billion 0.75%.
A-9
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
82. Small Company Growth Fund(30) First 500M 0.90**
Next 500M 0.85
Next 2B 0.80
Next 2B 0.775
Over 5B 0.75
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
83. Small Company Value Fund(31) First 500M 0.90**
Next 500M 0.85
Next 2B 0.80
Next 2B 0.775
Over 5B 0.75
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
84. Small/Mid Cap Value Fund(32) First 500M 0.90
Next 500M 0.85
Next 2B 0.80
Next 2B 0.775
Over 5B 0.75
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
85. Specialized Financial Services Fund First 500M 0.95
Next 500M 0.90
Next 2B 0.85
Next 2B 0.825
Over 5B 0.80
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
86. Specialized Health Sciences Fund(33) First 500M 0.95
Next 500M 0.90
Next 2B 0.85
Next 2B 0.825
Over 5B 0.80
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
87. Specialized Technology Fund First 500M 1.05
Next 500M 1.00
Next 2B 0.95
Next 2B 0.925
Over 5B 0.90
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
88. Stable Income Fund First 500M 0.45**
Next 500M 0.40
Next 2B 0.35
Next 2B 0.325
Over 5B 0.30
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
----------
(30) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Small Company Growth Fund. Effective February 1, 2008, the advisory
fees will be as follows: first 500 million 0.85%; next 500 million 0.825%;
next 1 billion 0.80%; next 1 billion 0.775%; and over 3 billion 0.75%.
(31) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Small Company Value Fund. Effective February 1, 2008, the advisory
fees will be as follows: first 500 million 0.85%; next 500 million 0.825%;
next 1 billion 0.80%; next 1 billion 0.775%; and over 3 billion 0.75%.
(32) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Small/Mid Cap Value Fund. Effective March 1, 2008, the advisory fees
will be as follows: first 500 million 0.85%; next 500 million 0.825%; next
1 billion 0.80%; next 1 billion 0.775%; and over 3 billion 0.75%.
(33) On November 7, 2007, the Board of Trustees approved the liquidation of the
Specialized Health Sciences Fund. The liquidation is expected to occur on
or about January 25, 2008.
A-10
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
89. Strategic Income Fund First 500M 0.55
Next 500M 0.50
Next 2B 0.45
Next 2B 0.425
Over 5B 0.40
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
90. Strategic Small Cap Value Fund(34) First 500M 0.90**
Next 500M 0.85
Next 2B 0.80
Next 2B 0.775
Over 5B 0.75
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
91. Target Today Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
92. Target 2010 Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
93. Target 2015 Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
94. Target 2020 Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
95. Target 2025 Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
96. Target 2030 Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
97. Target 2035 Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
98. Target 2040 Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
99. Target 2045 Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------------------------------
100. Target 2050 Fund 0.25*
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
101. Total Return Bond Fund First 500M 0.45**
Next 500M 0.40
Next 2B 0.35
Next 2B 0.325
Over 5B 0.30
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------------------------------
102. Treasury Plus Money Market Fund 0.10
---------------------------------------------------------- --------------------------------------------
---------------------------------------------------------- --------------------- ----------------------
103. Ultra-Short Duration Bond Fund(35) First 500M 0.45
Next 500M 0.40
Next 2B 0.35
Next 2B 0.325
Over 5B 0.30
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
----------
(34) On March 30, 2007, the Board of Trustees approved an advisory fee reduction
to the Strategic Small Cap Value Fund. Effective February 1, 2008, the
advisory fees will be as follows: first 500 million 0.85%; next 500 million
0.825%; next 1 billion 0.80%; next 1 billion 0.775%; and over 3 billion
0.75%.
(35) On November 7, 2007, the Board of Trustees approved the merger of the
Ultra-Short Duration Bond Fund into the Ultra Short-Term Income Fund. The
fund merger is expected to occur before the end of the third quarter of
2008.
A-11
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
104. Ultra Short-Term Income Fund First 500M 0.45
Next 500M 0.40
Next 2B 0.35
Next 2B 0.325
Over 5B 0.30
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
105. Ultra Short-Term Municipal Income Fund First 500M 0.40
Next 500M 0.35
Next 2B 0.30
Next 2B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
106. U.S. Value Fund First 500M 0.70
Next 500M 0.65
Next 2B 0.60
Next 2B 0.575
Over 5B 0.55
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
107. Value Fund(36) First 500M 0.70
Next 500M 0.65
Next 2B 0.60
Next 2B 0.575
Over 5B 0.55
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
108. WealthBuilder Conservative Allocation Portfolio First 1B 0.20
Next 4B 0.175
Over 5B 0.15
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
109. WealthBuilder Equity Portfolio First 1B 0.20
Next 4B 0.175
Over 5B 0.15
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
110. WealthBuilder Growth Allocation Portfolio First 1B 0.20
Next 4B 0.175
Over 5B 0.15
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
111. WealthBuilder Growth Balanced Portfolio First 1B 0.20
Next 4B 0.175
Over 5B 0.15
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
112. WealthBuilder Moderate Balanced Portfolio First 1B 0.20
Next 4B 0.175
Over 5B 0.15
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
113. WealthBuilder Tactical Equity Portfolio First 1B 0.20
Next 4B 0.175
Over 5B 0.15
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
----------
(36) On November 7, 2007, the Board of Trustees approved the merger of the Value
Fund into the C&B Large Cap Value Fund. Subject to shareholder approval,
the fund merger is expected to occur before the end of the third quarter of
2008.
A-12
---------------------------------------------------------- --------------------------------------------
FUNDS FEE AS % OF AVG. DAILY NET ASSET VALUE
---------------------------------------------------------- --------------------------------------------
114. Wisconsin Tax-Free Fund First 500M 0.40
Next 500M 0.35
Next 2B 0.30
Next 2B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
---------------------------------------------------------- --------------------- ----------------------
115. 100% Treasury Money Market Fund First 1B 0.30
Next 4B 0.275
Over 5B 0.25
---------------------------------------------------------- --------------------- ----------------------
Most recent annual approval by the Board of Trustees: March 30, 2007
Schedule A amended: December 1, 2007
* If the gateway blended Fund becomes a stand-alone Fund, Funds Management would
receive an advisory fee that reflects a blended fee rate of the advisory fees
charged by the Master Trust Portfolios in which the gateway blended Fund
invests.
** Represents the advisory fee payable to Funds Management as adviser to the
Master Trust Portfolio in which the gateway feeder Fund invests. This advisory
fee will be payable to Funds Management as adviser to the gateway feeder Fund
only if the gateway feeder Fund converts into a stand-alone Fund.
The foregoing fee schedule is agreed to as of December 1, 2007 and
shall remain in effect until changed in writing by the parties.
XXXXX FARGO FUNDS TRUST
BY:_________________________
C. Xxxxx Xxxxxxx
Secretary
XXXXX FARGO FUNDS MANAGEMENT, LLC
BY:_________________________
Xxxxxx Xxxx
Executive Vice President
