EXHIBIT NO. EX-99.h.7
EXPENSE WAIVER AND
ASSUMPTION AGREEMENT
AGREEMENT made this 27th day of July 2001, between DIMENSIONAL INVESTMENT
GROUP INC., a Maryland corporation (the "Fund"), on behalf of certain portfolios
of the Fund, as listed on Schedule A of this Agreement (each a "Portfolio" and
together, the "Portfolios"), and DIMENSIONAL FUND ADVISORS INC., a Delaware
corporation ("DFA").
WHEREAS, DFA has entered into Administration Agreements with the Fund,
pursuant to which DFA provides various administrative and other services for the
Portfolios, and for which DFA is compensated based on the average net assets of
such Portfolios; and
WHEREAS, the Fund and DFA have determined that it is appropriate and in the
best interests of each Portfolio and its shareholders to limit the expenses of
those Portfolios of the Fund listed on Schedule A of this Agreement;
NOW, THEREFORE, the parties hereto agree as follows:
1. EXPENSE WAIVER AND ASSUMPTION BY DFA. DFA agrees to reduce all or a
portion of its administration fee for each Portfolio listed on
Schedule A, and if necessary (for each Portfolio other than the
Emerging Markets Portfolio II), to assume certain other expenses (to
the extent permitted by the Internal Revenue Code of 1986, as amended)
of each such Portfolio, such waiver and assumption of expenses as
detailed on Schedule A of this Agreement, to the extent necessary to
limit the annualized expenses of each Portfolio to the rate reflected
in Schedule A of this Agreement for each Portfolio ("Annualized
Expense Ratio").
2. DUTY TO REIMBURSE DFA. If at any time, a Portfolio's annualized
expenses are less than the Annualized Expense Ratio listed on Schedule
A of this Agreement, the Fund, on behalf of a Portfolio (except for
Emerging Markets Portfolio II), shall reimburse DFA for any fees
previously waived and/or expenses previously assumed to the extent
that the amount of such reimbursement does not cause the Portfolio's
Annualized Expense Ratio to exceed the limit on Schedule A of this
Agreement. There shall be no obligation of the Fund, on behalf of a
Portfolio, to reimburse DFA for waived fees or expenses that were
assumed by DFA more than thirty-six months prior to the date of any
such reimbursement.
3. ASSIGNMENT. No assignment of this Agreement shall be made by DFA
without the prior consent of the Fund.
4. DURATION AND TERMINATION. This Agreement shall continue in effect for
a Portfolio for a period of one year from the date of its
effectiveness for that Portfolio, and shall continue in effect from
year to year thereafter for each Portfolio, unless and until the Fund
or DFA notifies the other party to the Agreement, at least thirty
days prior to the end of the one-year period for a Portfolio, of its
intention to terminate the Agreement for a Portfolio. This Agreement
shall automatically terminate, with respect to a Portfolio, upon the
termination of the Administration Agreement between DFA and the Fund,
on behalf of such Portfolio.
5. EFFECTIVE DATES. This Agreement shall become effective for each
Portfolio on the dates listed below:
PORTFOLIO EFFECTIVE DATE
DFA International Value Portfolio II April 1, 2002
The DFA Small Cap Institutional Portfolio April 1, 2002
U.S. Large Company Institutional Index Portfolio April 1, 2002
U.S. Small Cap Value Portfolio II April 1, 2002
U.S. Large Cap Value Portfolio II April 1, 2002
U.S. Large Company Portfolio K August 1, 2001
U.S. Large Cap Value Portfolio K August 1, 2001
U.S. Small XM Value Portfolio K August 1, 2001
U.S. Small Cap Portfolio K August 1, 2001
DFA International Value Portfolio K August 1, 2001
Emerging Markets Portfolio K August 1, 2001
DFA One-Year Fixed Income Portfolio K August 1, 2001
DFA Two-Year Fixed Income Portfolio K August 1, 2001
Emerging Markets Portfolio II April 1, 2002
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first-above written.
DIMENSIONAL INVESTMENT DIMENSIONAL FUND ADVISORS INC.
GROUP INC.
By: /s/ Xxxxxxx X. Xxxxxxxx By: /s/ Xxxxxxxxx X. Xxxxxx
--------------------------- --------------------------
Name: Xxxxxxx X. Xxxxxxxx Name: Xxxxxxxxx X. Xxxxxx
--------------------------- --------------------------
Title: VP & CFO Title: Vice President & Secretary
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SCHEDULE A
PORTFOLIO ANNUALIZED EXPENSE RATIO
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
DFA INTERNATIONAL VALUE PORTFOLIO II 0.75% *
THE DFA SMALL CAP INSTITUTIONAL PORTFOLIO 0.20% *
U.S. LARGE COMPANY INSTITUTIONAL INDEX PORTFOLIO 0.10% **
U.S. SMALL CAP VALUE PORTFOLIO II 0.75% *
U.S. LARGE CAP VALUE PORTFOLIO II 0.75% *
U.S. LARGE COMPANY PORTFOLIO K 0.75% ***
U.S. LARGE CAP VALUE PORTFOLIO K 0.85% ***
U.S. SMALL XM VALUE PORTFOLIO K 1.00% ***
U.S. SMALL CAP PORTFOLIO K 0.95% ***
DFA INTERNATIONAL VALUE PORTFOLIO K 1.00% ***
EMERGING MARKETS PORTFOLIO K 1.25% ***
DFA ONE-YEAR FIXED INCOME PORTFOLIO K 0.75% ***
DFA TWO-YEAR FIXED INCOME PORTFOLIO K 0.75% ***
EMERGING MARKETS PORTFOLIO II ****
* FOR EACH OF THESE PORTFOLIOS, DFA HAS AGREED TO WAIVE ITS
ADMINISTRATION FEE AND TO ASSUME THE PORTFOLIO'S DIRECT AND INDIRECT
EXPENSES (INCLUDING THE EXPENSES THE PORTFOLIO BEARS AS A SHAREHOLDER
OF ITS MASTER FUND) TO THE EXTENT NECESSARY TO LIMIT THE PORTFOLIO'S
EXPENSES TO THE RATE LISTED ABOVE FOR SUCH PORTFOLIO.
** FOR THE U.S. LARGE COMPANY INSTITUTIONAL INDEX PORTFOLIO, DFA HAS
AGREED TO WAIVE ITS ADMINISTRATION FEE TO THE EXTENT NECESSARY TO
REDUCE THE PORTFOLIO'S EXPENSES TO THE EXTENT THAT ITS TOTAL DIRECT AND
INDIRECT EXPENSES (INCLUDING THE EXPENSES THE PORTFOLIO BEARS AS A
SHAREHOLDER OF ITS MASTER FUND) EXCEED THE RATE LISTED ABOVE FOR THE
PORTFOLIO.
*** FOR EACH OF THESE PORTFOLIOS, DFA HAS AGREED TO WAIVE ITS
ADMINISTRATION FEE AND TO ASSUME THE PORTFOLIO'S EXPENSES (UP TO THE
AMOUNT OF FEES PAID TO DFA BASED ON THE PORTFOLIO'S ASSETS INVESTED IN
ITS MASTER FUND) TO THE EXTENT NECESSARY TO REDUCE THE PORTFOLIO'S
EXPENSES WHEN ITS TOTAL OPERATING EXPENSES EXCEED THE RATE LISTED ABOVE
FOR SUCH PORTFOLIO.
**** FOR THE EMERGING MARKETS PORTFOLIO II, DFA HAS AGREED TO WAIVE ITS
ADMINISTRATION FEE OF 0.40% PER YEAR ON THE FIRST $50 MILLION OF
AVERAGE NET ASSETS.
DATED: JULY 27, 2001
