FUND ACCOUNTING AND ADMINISTRATION AGREEMENT
Exhibit 99.(h)(1)
FUND ACCOUNTING AND ADMINISTRATION AGREEMENT
This Fund Accounting and Administration Agreement (the “Agreement”) made this 1st day of April, 2008, between ALPS Variable Insurance Trust, a Delaware statutory trust (the “Trust”), and ALPS Fund Services, Inc., a Colorado corporation (“ALPS”).
WHEREAS, the Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”), for the series listed in Appendix A, each with three classes of shares; such series and any additional series that may be established by the Trust and made subject to this Agreement are referred to herein individually as a “Portfolio” and, collectively, as the “Portfolios”; and
WHEREAS, ALPS provides certain administrative, bookkeeping and pricing services to investment companies; and
WHEREAS, the Trust desires to appoint ALPS to perform certain administrative, bookkeeping and pricing services for the Trust and its Portfolios, and ALPS has indicated its willingness to so act, subject to the terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of the premises and mutual covenants hereinafter contained, the parties hereto agree as follows:
1. ALPS Appointment and Duties.
(a) The Trust hereby appoints ALPS to provide to each of the Portfolios the administrative, bookkeeping and pricing services as are set forth in Appendix B, as amended from time to time, upon the terms and conditions hereinafter set forth. ALPS hereby accepts such appointment and agrees to furnish such specified services. ALPS shall for all purposes be deemed to be an independent contractor and shall, except as otherwise expressly authorized in this Agreement, have no authority to act for or represent the Trust in any way or otherwise be deemed an agent of the Trust.
(b) ALPS may employ or associate itself with a person or persons or organizations as ALPS believes to be desirable in the performance of its duties hereunder; provided that, in such event, the compensation of such person or persons or organizations shall be paid by and be the sole responsibility of ALPS and the Trust shall bear no cost or obligation with respect thereto; and provided further that ALPS shall not be relieved of any of its obligations under this Agreement in such event and shall be responsible for all acts of any such person or persons or organizations taken in furtherance of this Agreement to the same extent it would be for its own acts.
2. ALPS Compensation; Expenses.
(a) In consideration for the services to be performed hereunder by ALPS, the Trust shall pay ALPS the fees listed in Appendix C hereto.
(b) ALPS will bear all expenses in connection with the performance of its services under this Agreement and all related agreements, except as otherwise provided herein. ALPS will not bear any of the costs of Trust personnel, except that ALPS, and not the Trust, shall be responsible for the compensation of officers and directors of the Trust who are officers, employees or directors of ALPS or any of its affiliates. Except as provided in any other agreements between ALPS or its affiliates and the Trust, other Trust expenses incurred shall be borne by persons other than ALPS and its affiliates, including, but not limited to, transfer agency and custodial expenses; taxes; interest; the fees and expenses of the Trust’s trustees; brokerage fees and commissions; state and federal registration fees; advisory fees; insurance premiums; fidelity bond premiums; Trust and advisory related legal expenses; costs of maintenance of Trust existence; printing and delivery of materials in connection with meetings of the Trust trustees; printing and mailing shareholder reports, prospectuses, statements of additional information, supplements, and proxy materials; securities pricing data services; and expenses in connection with electronic filings with the Securities and Exchange Commission (the “SEC”).
3. Right to Receive Advice.
(a) Advice of the Trust. If ALPS is in doubt as to any action it should or should not take in connection with the services to be provided hereunder, ALPS shall request directions or advice from the Trust.
(b) Advice of Counsel. If ALPS is in doubt as to any question of law pertaining to any action it should or should not take in connection with the services to be provided hereunder, ALPS shall request advice from counsel of its own choosing and at its own expense.
(c) Conflicting Advice. In the event of a conflict between directions, advice or instructions ALPS receives from the Trust and the advice ALPS receives from counsel, ALPS shall inform the Trust and its counsel of the conflict and seek resolution.
(d) Nothing in this subsection shall excuse ALPS when an action or omission on the part of ALPS constitutes breach of this agreement or willful misfeasance, bad faith, negligence or reckless disregard by ALPS of any duties, obligations or responsibilities set forth in this Agreement.
4. Liability of ALPS.
(a) ALPS may rely upon the written advice of counsel for the Trust and the Trust’s independent accountants, and upon oral or written statements of the Trust’s investment adviser, brokers and other service providers to the Trust, reasonably believed by ALPS in good faith to be an expert in the matters upon which they are consulted and, for any actions reasonably taken in good faith reliance upon such advice or statements and without negligence, ALPS shall not be liable to anyone.
(b) Nothing herein contained shall be construed to protect ALPS against any liability to the Trust or its shareholders to which ALPS would otherwise be subject by reason of material breach of this Agreement, violation of applicable law, willful misfeasance, bad faith, negligence, or reckless disregard in the performance of its duties.
(c) Except as may otherwise be provided by applicable law, neither ALPS nor its shareholders, officers, directors, employees or agents shall be subject to, and the Trust shall indemnify and hold such persons harmless from and against, any liability for and any damages, expenses or losses incurred by reason of the inaccuracy of factual information furnished to ALPS by the Trust or its adviser.
(d) ALPS shall be obligated to exercise commercially reasonable care and diligence in the performance of its duties hereunder, to act in good faith and to use its best efforts, within reasonable limits, in performing services provided for under this Agreement. ALPS agrees to indemnify the Trust and shall be liable for actual damages arising out of ALPS’ failure to perform its duties under this Agreement to the extent such damages arise out of ALPS’ material breach of this Agreement, violation of applicable law, willful misfeasance, bad faith, negligence or reckless disregard of such duties.
(e) ALPS shall not be liable for any error of judgment or mistake of law or for any loss suffered by the Trust in connection with the matters to which this Agreement relates, except for a loss resulting from violation of law, breach of this Agreement, willful misfeasance, bad faith, negligence on its part in the performance of its duties or from reckless disregard of its duties hereunder.
5. Reports. Whenever, in the course of performing its duties under this Agreement, ALPS determines, on the basis of information supplied to ALPS by the Trust or its authorized agents, that a violation of applicable law has occurred or that, to its knowledge, a possible violation of applicable law may have occurred or, with the passage of time, would occur, ALPS shall promptly notify the Trust and its counsel.
6. Activities of ALPS. The services of ALPS under this Agreement are not to be deemed exclusive, and ALPS shall be free to render similar services to others. The Trust recognizes that from time to time directors, officers and employees of ALPS may serve as
directors, officers and employees of other corporations or businesses (including other investment companies) and that such other corporations and funds may include ALPS as part of their name and that ALPS or its affiliates may enter into administrative, bookkeeping, pricing agreements or other agreements with such other corporations and funds.
7. Accounts and Records. The accounts and records maintained by ALPS shall be the property of the Trust. Such accounts and records shall be prepared, maintained and preserved as required by the 1940 Act and other applicable securities laws, rules and regulations. Such accounts and records shall be surrendered to the Trust promptly upon receipt of instructions from the Trust in the form in which such accounts and records have been maintained or preserved. The Trust shall have access to such accounts and records at all times during ALPS’ normal business hours. Upon the reasonable request of the Trust, copies of any such books and records shall be provided by ALPS to the Trust at the Trust’s expense. ALPS shall assist the Trust, the Trust’s independent public accountants, or, upon approval of the Trust, any regulatory body, in any requested review of the Trust’s accounts and records, and reports by ALPS or its independent public accountants concerning its accounting system and internal auditing controls will be open to such entities for audit or inspection upon reasonable request.
8. Confidential and Proprietary Information. ALPS agrees that it will, on behalf of itself and its officers and employees, treat all transactions contemplated by this Agreement, and all records and information relative to the Trust and its shareholders (past, present and future) and other information germane thereto, as confidential and as proprietary information of the Trust and not to use, sell, transfer or divulge such information or records to any person for any purpose other than performance of its duties hereunder, except after prior notification to and approval in writing from the Trust, which approval shall not be unreasonably withheld. It may not be withheld where ALPS may be exposed to civil, regulatory or criminal proceedings for failure to comply, when requested to divulge such information by duly constituted authorities, or when so requested by the Trust. ALPS shall have in place and maintain physical, electronic and procedural safeguards reasonably designed to protect the security, confidentiality and integrity of, and to prevent unauthorized access to or use of records and information relating to the Trust and its past, present and future shareholders, consumers and customers. The Trust and ALPS shall each comply with all applicable laws, rules and regulations relating to privacy, confidentiality, data security and the handling of personal financial information applicable to it that may be established from time to time, including but not limited to the Xxxxx-Xxxxx Xxxxxx Act and Securities and Exchange Commission Regulation S-P (17 CFR Part 248) promulgated thereunder.
9. Compliance with Rules and Regulations. ALPS shall comply — and to the extent ALPS takes or is required to take action on behalf of the Trust or its Portfolios hereunder shall cause the Trust and its Portfolios to comply — with all applicable requirements of the 1940 Act and other applicable laws, rules, regulations, orders and code of ethics, as well as all investment restrictions, policies and procedures adopted by the Trust or any of its Portfolios of which ALPS has knowledge. Except as specifically set forth herein, ALPS assumes no responsibility for such compliance by the Trust or any Portfolio.
10. Representations and Warranties of ALPS. ALPS represents and warrants to the Trust that:
(a) It is duly organized and existing as a corporation and in good standing under the laws of the State of Colorado.
(b) It is empowered under applicable laws and by its Articles of Incorporation and By-laws to enter into and perform this Agreement.
(c) All requisite corporate proceedings have been taken to authorize it to enter into and perform this Agreement.
(d) It has and will continue to have access to the necessary facilities, equipment and personnel to perform its duties and obligations under this Agreement in accordance with industry standards.
(e) It has and will keep in effect professional liability insurance naming ALPS as insured and providing coverage with respect to ALPS’ activities on behalf of the Trust and its Portfolios in the amount of at least $1,000,000, and will provide to the Trust at least annually a certificate of insurance evidencing that such insurance is in full force and effect.
Representations and Warranties of the Trust. The Trust represents and warrants to ALPS that:
(a) It is a Delaware statutory trust and is registered with the SEC as an open-end investment company.
(b) It is empowered under applicable laws and by its Declaration of Trust and By-laws to enter into and perform this Agreement.
(c) The Board of Trustees has duly authorized it to enter into and perform this Agreement.
(d) It has provided ALPS with copies of its Prospectus(es) and Statement(s) of Additional Information and will provide ALPS with any amendments or supplements thereto.
11. Liaison with Public Accountants. ALPS shall act as liaison with the Trust’s independent public accountants and shall provide account analysis, fiscal year summaries, and other audit-related schedules with respect to the services provided to each Portfolio. ALPS shall take all reasonable action in the performance of its duties under this Agreement to assure that the necessary information in ALPS’ control is made available to such accountants for the expression of their opinion, as required by the Trust.
12. Business Interruption Plan. ALPS shall maintain in effect a business interruption plan, and enter into any agreements necessary with appropriate parties making reasonable provisions for emergency use of electronic data processing equipment customary in the industry. In the event of equipment failures, ALPS shall, at no additional expense to the Trust, take commercially reasonable steps to minimize service interruptions. ALPS shall have no liability with respect to the loss of data or service interruptions caused by equipment failure provided such loss or interruption is not caused by ALPS’ own willful misfeasance, bad faith, negligence or reckless disregard of its duties or obligations under this Agreement.
13. Duration and Termination of this Agreement.
(a) Initial Term. This Agreement shall become effective as of the date first written above (the “Start Date”) and shall continue thereafter throughout the period which ends three years after the Start Date (the “Initial Term”). Until the end of the Initial Term, this Agreement may be terminated without penalty only by agreement of the parties upon not less than 60 days’ written notice or for cause pursuant to Section 13(c) hereof.
(b) Renewal Term. If not sooner terminated, this Agreement shall renew at the end of the Initial Term and shall thereafter continue for successive annual periods until terminated by the Trust or by ALPS, without penalty, upon not less than 90 days’ written notice to the other party given at any time during that successive annual period.
(c) Cause. Notwithstanding anything to the contrary elsewhere in this Agreement, the Trust may terminate this Agreement for cause immediately at any time, without penalty, without default and without the payment of any Default Payment (as defined below) or other liquidated damages. Termination for “cause” hereunder shall mean:
(i) material breach of this Agreement, willful misfeasance, bad faith, negligence or reckless disregard on the part of ALPS in the performance of or with respect to its obligations and duties hereunder;
(ii) regulatory, administrative, or judicial proceedings against ALPS which result in a determination that, in rendering its services hereunder, ALPS has violated — or has caused the Trust or any of its Portfolios to violate — any applicable law, rule, regulation, order or code of ethics, or any investment restriction, policy or procedure adopted by the Trust or any of its Portfolios of which ALPS had knowledge; or
(iii) financial difficulties on the part of ALPS which are evidenced by the authorization or commencement of, or involvement by way of pleading, answer, consent, or acquiescence in, a voluntary or involuntary case under Title 11 of the United States Code, as from time to time in effect, or any applicable law other than said Title 11, of any jurisdiction relating to the liquidation or reorganization of debtors or to the modification or alteration of the rights of creditors.
(d) Fees and Expenses upon Termination. Should either party exercise its right to terminate, all reasonable out-of-pocket expenses or costs associated with the movement of records and material will be borne by the Trust. Additionally, if the Trust terminates the Agreement, ALPS reserves the right to charge a reasonable fee for its deconversion services. In the event of termination of this Agreement, the Trust agrees to pay ALPS promptly all amounts due ALPS hereunder for services performed and reasonable out-of-pocket expenditures incurred prior to such termination.
(e) Deliveries Upon Termination. Upon termination of this Agreement, ALPS shall deliver to the Trust or as otherwise directed by the Trust (at the expense of the Trust, unless such termination is for “cause”) all records and other documents made or accumulated in the performance of its duties for the Trust hereunder.
14. Assignment. This Agreement shall extend to and shall be binding upon the parties hereto and their respective successors and permitted assigns; provided, however, that this Agreement shall not be assignable by the Trust without the prior written consent of ALPS, or by ALPS without the prior written consent of the Trust.
15. Governing Law. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of Colorado and the 1940 Act and the rules thereunder, without regard to the conflicts of laws provisions of that state. To the extent that the laws of the State of Colorado conflict with the 1940 Act or such rules, the latter shall control.
16. Compliance Program. ALPS maintains and will continue to maintain a comprehensive compliance program reasonably designed to prevent violations of the federal securities laws pursuant to Rule 38a-1 under the 1940 Act. It will review, no less frequently than annually, the adequacy of the policies and procedures and the effectiveness of their implementation and will report to the Trust any material changes made to the policies and procedures since the date of the last report, and any material changes made to the policies and procedures recommended as a result of the annual review. It will provide the Trust with an annual report of each Material Compliance Matter (as defined under Rule 38a-1 of the Investment Company Act of 1940, as amended) that occurred since the date of the last report. Upon request of the Trust, ALPS will provide to the Trust in connection with any periodic annual or semi-annual shareholder report filed by the Trust or, in the absence of the filing of such reports, on a quarterly basis, a sub-certification pursuant to the Xxxxxxxx-Xxxxx Act of 2002 with respect to ALPS’ performance of the services set forth in this Agreement and its internal controls related thereto. In addition, on a quarterly basis, ALPS will provide to the Trust a certification in connection with Rule 38a-1 under the 1940 Act. ALPS reserves the right to amend and update its compliance program and the measurement tools and certifications provided thereunder from time to time in order to address changing regulatory and industry developments. ALPS will provide the Trust with such amendments or updates promptly upon effectiveness.
17. Notice/Separate Portfolios. A copy of the Agreement and Declaration of Trust is on file with the Secretary of the State of Delaware and notice is hereby given that this instrument is executed on behalf of the Board of Trustees of the Trust as Trustees and not individually and that the obligations of this instrument are not binding upon any of the Trustees or shareholders
individually but are binding only upon the assets and property of the relevant Portfolio. Each Portfolio will be regarded for all purposes hereunder as a separate party apart from each other Portfolio. Unless the context otherwise requires, with respect to every transaction covered hereby, every reference herein to a Trust is deemed to relate solely to the particular Portfolio to which such transaction relates. Under no circumstances will the rights, obligations or remedies with respect to a particular Portfolio constitute a right, obligation or remedy applicable to any other Portfolio. The use of this single document to memorialize the separate agreement as to each Portfolio is understood to be for clerical convenience only and will not constitute any basis for joining the other Portfolios for any reason.
18. Amendments to this Agreement. This Agreement may only be amended by the parties in writing.
19. Notices. All notices and other communications hereunder shall be in writing, shall be deemed to have been given when received or when sent by telex or facsimile, and shall be given to the following addresses (or such other addresses as to which notice is given):
To ALPS:
ALPS Fund Services, Inc.
0000 Xxxxxxxx, Xxxxx 0000
Xxxxxx, Xxxxxxxx 00000
Attn: General Counsel
Fax: (000) 000-0000
To the Trust:
0000 Xxxxxxxx, Xxxxx 0000
Xxxxxx, Xxxxxxxx 00000
Attn: Secretary
With a copy to:
Red Rocks Capital LLC
000 Xxxx Xxxxx Xxxxx, Xxxxx 000
Xxxxxx, XX 00000
19. Counterparts. This Agreement may be executed by the parties hereto on any number of counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.
20. Entire Agreement. This Agreement embodies the entire agreement and understanding among the parties and supersedes all prior agreements and understandings relating to the subject matter hereof; provided, however, that ALPS and the Trust may embody in one or more separate documents their agreement, if any, with respect to delegated duties and oral instructions.
21. Additional Portfolios. If the Trust establishes one or more additional portfolios with respect to which it wishes to retain ALPS to provide administrative, bookkeeping and pricing services hereunder, it will notify ALPS in writing. If ALPS is willing to render such services under this Agreement, it will so notify the Trust in writing, whereupon such series will become a “Portfolio” as defined hereunder and will be subject to the provisions of this Agreement to the same extent as the Trust is named above, except to the extent that such provisions are modified with respect to such new Portfolio in writing by the Trust and ALPS.
22. Waiver. No waiver by either party or any breach or default of any of the covenants or conditions herein contained and performed by the other party shall be construed as a waiver of any succeeding breach of the same or of any other covenant or condition.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.
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a Delaware statutory trust, on behalf of Listed Private Equity Portfolio |
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By: |
/s/ Xxxxxx X. May |
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Name: |
Xxxxxx X. May |
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Title: |
President |
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ALPS FUND SERVICES, INC., a Colorado corporation |
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By: |
/s/ Xxxxxx X. May |
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Name: |
Xxxxxx X. May |
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Title: |
Managing Director |
APPENDIX A
Listed Private Equity Portfolio
APPENDIX B
SERVICES
Administrative
· On an on-going basis (or as otherwise specified below), assist the Trust in monitoring each Portfolio’s compliance with:
(i) the investment restrictions described in the Trust’s registration statement (monthly)
(ii) SEC diversification requirements, as applicable (monthly)
(iii) its status as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (monthly)
· Coordinate the preparation and filing with the SEC on behalf of the Trust:
(i) Form N-SAR
(ii) Form N-CSR
(iii) Form 24f-2
(iv) Form N-PX
(v) Form N-Q
ALPS shall not be responsible for the accuracy or adequacy of any information contained in the documents listed in subsections (i) through (v) above, to the extent such information is provided to ALPS by the Trust, other service providers to the Trust, or any other third party.
· Provide assistance to the Trust related to quarterly Board of Trustees meetings by preparing board reports regarding services provided by ALPS, as requested by the Trust.
· Assist the Trust with placement of fidelity bond and errors and omissions insurance policies. File the Trust’s fidelity bond with the SEC and monitor the Trust’s assets to assure adequate fidelity bond coverage.
· Prepare the Trust’s annual and semi-annual financial statements including schedules of investments and the related statements of operations, assets and liabilities and, changes in net assets, statement of cash flows, as well as the financial highlights and footnotes to the financial statements.
· Provide facilities, information and personnel, as necessary, to accommodate annual audits with the Trust’s independent accountants, or examinations conducted by the Securities and Exchange Commission or other regulatory authorities.
· Monitor the Trust’s expense accruals by establishing expense budgets and comparing expense accruals on a periodic basis to actual expenses paid.
· Report performance and other portfolio information to outside reporting agencies as directed by the Trust.
· Calculate monthly performance including total return.
· Manage Trust invoice approvals and xxxx payments
Bookkeeping and Pricing
· Maintain separate accounts for each Portfolio, all as directed from time to time by written instructions from the Trust.
· Compute net asset value for each Class of each Portfolio and, as appropriate, compute yields, expense ratios, portfolio turnover rate and, if required, portfolio average dollar-weighted maturity.
· Obtain security market quotes from independent pricing services, if available, or if such quotes are unavailable, then obtain such prices pursuant to the Trust’s valuation policies and procedures, and in either case calculate the market value of each Portfolio’s investments.
· Timely calculate and transmit to NASDAQ each Portfolio’s (and each Class of each Portfolio’s) daily net asset value and public offering price (such determinations to be made in accordance with the provisions of the Trust’s then-current Prospectuses and Statements of Additional Information relating to the Portfolios, and any applicable resolutions and policies and procedures of the Board of Trustees of the Trust) and promptly communicate such values and prices to the Trust and the Trust’s transfer agent.
· Maintain and keep current all books and records of the Portfolios as required by Section 31 of the 1940 Act, and the rules thereunder, in connection with ALPS’ duties hereunder. Without limiting the generality of the foregoing, ALPS will prepare and maintain the following records upon receipt of information in proper form from the Trust:
(i) Cash receipts journal
(ii) Cash disbursements journal
(iii) Dividend records
(iv) Security purchases, sales and loans - portfolio securities journals
(v) Subscription and redemption journals
(vi) Security ledgers
(vii) Broker ledger
(viii) General ledger
(ix) Daily expense accruals
(x) Daily income accruals
(xi) Foreign currency journals
(xii) Trial balances
(xiii) Historical tax lots for each security
· Reconcile cash and investment balances with the Custodian on a daily basis.
· Provide the Trust with daily Portfolio values, net asset values and other statistical data for each Class of each Portfolio on a daily basis.
· Compute the net income and capital gains and losses of each Portfolio and calculate income dividend rates in accordance with relevant prospectus policies and resolutions of the Board of Trustees of the Trust.
· Assist in the preparation of certain reports (including annual and semi-annual reports, Prospectuses and Statement of Additional Information), audits of accounts, and other matters of like nature, as reasonably requested from time to time by the Trust.
· Provide the Trust and the Investment Adviser with access to the Trust’s books and records via applicable online systems.
Tax Services
· Perform monthly, quarterly or annual distribution calculations, as appropriate.
· Calculate required year-end distributions for excise tax purposes for review by the Trust’s auditors.
· Prepare provision for income tax and tax disclosure information (ROCSOP) for the audited financial statements.
· Prepare and file appropriate extensions and federal and state income tax returns for review and signature by the Trust’s auditors. State income or franchise tax return preparation is limited to the initial state of “nexus” and does not include additional state filing requirements that may be triggered by underlying investments of the Trust.
· Prepare and file federal excise tax returns for review and signature by the Trust’s auditors.
· Provide the Trust with lot level tax basis book yield for each security upon request
· Provide the Trust on a monthly basis by the 8th business day following month end an income projection in a format agreed by the Trust. On a quarterly basis, provide a tax adjusted income projection in a format agreed by the Trust.
· Provide any and all tax basis information to the Trust deemed necessary in estimating future dividend payments on a quarterly basis.
· Assist in the identification of securities that may give rise to book-to-tax adjustments, including but not limited to passive foreign investment companies, real estate investment trusts, master limited partnerships, contingent debt obligations, trust preferred securities, grantor trusts, and stapled securities. Ultimate determination will be the responsibility of Trust management.
· Perform limited wash sale deferral and tax straddle deferral calculations. Additional out-of-pocket costs may be charged to automate the calculations if the volume of activity is significant
Legal Services
· Review and update Prospectus and Statement of Additional Information.
· Provide legal review of Semi-Annual report, Annual Report, and Form N-SAR.
· Coordinate EDGARization and filings of documents.
· Prepare materials for quarterly Board of Trustee meetings, including notices, agendas and resolutions for quarterly meetings and draft actions by written consent of the Trustees.
· Coordinate the preparation, assembly and mailing of Board materials.
· Attend quarterly and special Board meetings, make presentations at such meetings as appropriate, and draft minutes of such meetings.
· Review legal contracts.
· Oversee Trust’s Code of Ethics reporting.
· Coordinate the printing and mailing process with outside printers for all shareholder publications.
· Maintain and coordinate the Trust’s blue sky registration.
· Maintain the Trust’s corporate calendar to monitor compliance with various SEC filing and Board approved deadlines
APPENDIX C
FEES
Annual fee, billed monthly, in the amount of:
(i) 8 basis points of Trust’s average net assets between $0 - $500M; and
(ii) 6 basis points of Trust’s average net assets between $500M - $1B; and
(iii) 4 basis points of Trust’s average net assets over $1B.
Pass-through at cost of out-of-pocket expenses, including: third party security pricing and/or data fees, Bloomberg fees, Gainskeeper fees, Blue Sky fees, service auditors report, travel expenses to Board meetings and on-site supervisory reviews, NASD advertising/filing fees, registered representative licensing fees, postage, customized programming/enhancements and other expenses which may occur at the direction of the Trust.
The proposed fee does not reflect the cost for an independent auditor to review the income tax provision and tax basis financial statement disclosures, review and sign the federal and state income tax returns, review the distribution calculations or review and sign the excise tax returns.
