EX-99.B(d)wraima
INVESTMENT MANAGEMENT AGREEMENT
United Funds, Inc. and Xxxxxxx & Xxxx, Inc. ("W&R") entered into an
Investment Management Agreement on July 1, 1990. W&R assigned the
Investment Management Agreement to Xxxxxxx & Xxxx Investment Management
Company ("WRIMCO") on January 8, 1992, and the Investment Management
Agreement between Xxxxxxx & Xxxx Advisors Funds, Inc. ("Corporation") and
WRIMCO, hereby amended and restated as of August 21, 2002, has been
approved, annually, by the Board of Directors, including separate approval
by the Disinterested Directors, as prescribed by Section 15(c) of the
Investment Company Act of 1940, as amended ("1940 Act").
WITNESSETH:
In consideration of the mutual promises and agreements herein contained and
other good and valuable consideration, the receipt of which is hereby
acknowledged, it is hereby agreed by and between the parties hereto as
follows:
I. In General.
WRIMCO agrees to act as investment adviser to each series of the
Corporation (each a "Fund") with respect to the investment of its assets
and in general to supervise the investments of each Fund, subject at all
times to the direction and control of the Board of Directors of the
Corporation, all as more fully set forth herein.
II. Duties of WRIMCO with respect to investment of assets of the
Corporation.
A. WRIMCO shall regularly provide investment advice to each Fund and
shall, subject to the succeeding provisions of this section, continuously
supervise the investment and reinvestment of cash, securities or other
property comprising the assets of the investment portfolios of the Funds;
and in furtherance thereof, WRIMCO shall:
1. obtain and evaluate pertinent information about significant
developments and economic, statistical and financial data, domestic,
foreign or otherwise, whether affecting the economy generally or one or
more of the portfolios of the Funds, and whether concerning the individual
companies whose securities are included in the Funds' portfolios or the
industries in which they engage, or with respect to securities which WRIMCO
considers desirable for inclusion in the Funds' portfolios;
2. furnish continuously an investment program for each of the
portfolios of the Funds;
3. determine what securities shall be purchased or sold by each
Fund;
4. take, on behalf of each Fund, all actions which appear to
WRIMCO necessary to carry into effect such investment programs and
supervisory functions as aforesaid, including the placing of purchase and
sale orders.
B. WRIMCO shall make appropriate and regular reports to the Board of
Directors of the Corporation on the actions it takes pursuant to Section
II. A. above. Any investment programs furnished by WRIMCO under this
section, or any supervisory function taken hereunder by WRIMCO, shall at
all times conform to and be in accordance with any requirements imposed by:
1. the provisions of the 1940 Act and any rules or regulations in
force thereunder;
2. any other applicable provision of law;
3. the provisions of the Articles of Incorporation of the
Corporation as amended from time to time;
4. the provisions of the Bylaws of the Corporation as amended
from time to time;
5. the terms of the registration statement of the Corporation, as
amended from time to time, under the Securities Act of 1933 and the 1940
Act.
C. Any investment programs furnished by WRIMCO under this section or
any supervisory functions taken hereunder by WRIMCO shall at all times be
subject to any directions of the Board of Directors of the Corporation, its
Executive Committee, or any committee or officer of the Corporation acting
pursuant to authority given by the Board of Directors.
III. Allocation of Expenses.
The expenses of the Corporation and the expenses of WRIMCO in performing
its functions under this Agreement shall be divided into two classes, to
wit: (i) those expenses which will be paid in full by WRIMCO, as set forth
in subparagraph "A" hereof, and (ii) those expenses which will be paid in
full by each Fund, as set forth in subparagraph "B" hereof.
A. With respect to the duties of WRIMCO under Section II above, it
shall pay in full, except as to the brokerage and research services
acquired through the allocation of commissions as provided in Section IV
hereinafter, for (a) the salaries and employment benefits of all employees
of WRIMCO who are engaged in providing these advisory services; (b)
adequate office space and suitable office equipment for such employees; and
(c) all telephone communications costs relating to such functions. In
addition, WRIMCO shall pay the fees and expenses of all directors of the
Corporation who are employees of WRIMCO or an affiliated corporation and
the salaries and employment benefits of all officers of the Corporation who
are affiliated persons of WRIMCO.
B. The Funds shall pay in full for all of their expenses which are not
listed above (other than those assumed by W&R or its affiliates in their
respective capacities as principal underwriter of the shares of each of the
Funds, as Shareholder Servicing Agent or as Accounting Services Agent for
the Funds), including (a) the costs of preparing and printing prospectuses
and reports to shareholders of the Funds including mailing costs; (b) the
costs of printing all proxy statements and all other costs and expenses of
meetings of shareholders of the Funds (unless the Corporation and WRIMCO
shall otherwise agree); (c) interest, taxes, brokerage commission and
premiums on fidelity and other insurance; (d) audit fees and expenses of
independent accountants and legal fees and expenses of attorneys, but not
of attorneys who are employees of WRIMCO or an affiliated company; (e) fees
and expenses of its directors not affiliated with WRIMCO or its affiliates;
(f) custodian fees and expenses; (g) fees payable by the Corporation under
the Securities Act of 1933, the 1940 Act, and the securities or "Blue-Sky"
laws of any jurisdiction; (h) fees and assessments of the Investment
Company Institute or any successor organization; (i) such nonrecurring or
extraordinary expenses as may arise, including litigation affecting the
Corporation and/or the Funds and any indemnification by the Corporation of
its officers, directors, employees and agents with respect thereto; and (j)
the costs and expenses provided for in any Shareholder Servicing Agreement
or Accounting Services Agreement, including amendments thereto,
contemplated by subsection C of this Section III. In the event that any of
the foregoing shall, in the first instance, be paid by WRIMCO, a Fund shall
pay the same to WRIMCO on presentation of a statement with respect thereto.
C. WRIMCO, or an affiliate of WRIMCO, may also act as (i) transfer
agent or shareholder servicing agent of each Fund of the Corporation and/or
as (ii) accounting services agent of each Fund of the Corporation if at the
time in question there is a separate agreement, "Shareholder Servicing
Agreement" and/or "Accounting Services Agreement", covering such functions
between the Corporation and WRIMCO or such affiliate. The corporation,
whether WRIMCO or its affiliate, which is the party to either such
Agreement with the Corporation is referred to as the "Agent". Each such
Agreement shall provide in substance that it shall not go into effect, or
be amended, or a new agreement covering the same topics between the
Corporation and the Agent be entered into unless the terms of such
Agreement, such amendment or such new agreement have been approved by the
Board of Directors of the Corporation, including the vote of a majority of
the directors who are not "interested persons" as defined in the 1940 Act,
of either party to the Agreement, such amendment or such new agreement
(considering WRIMCO to be such a party even if at the time in question the
Agent is an affiliate of WRIMCO), cast in person at a meeting called for
the purpose of voting on such approval. Such a vote is referred to as a
"disinterested director" vote. Each such Agreement shall also provide in
substance for its continuance, unless terminated, for a specified period
which shall not exceed two years from the date of its execution and from
year to year thereafter only if such continuance is specifically approved
at least annually by a disinterested director vote, and that any
disinterested director vote shall include a determination that (i) the
Agreement, amendment, new agreement or continuance in question is in the
best interests of each Fund and its shareholders; (ii) the services to be
performed under the Agreement, the Agreement as amended, new agreement or
agreement to be continued are services required for the operation of each
Fund; (iii) the Agent can provide services the nature and quality of which
are at least equal to those provided by others offering the same or similar
services; and (iv) the fees for such services are fair and reasonable in
light of the usual and customary charges made by others for services of the
same nature and quality. Any such Agreement may also provide in substance
that any disinterested director vote may be conditioned on the favorable
vote of the holders of a majority (as defined in or under the 0000 Xxx) of
the outstanding shares of each class or series of the Corporation. Each
such Agreement shall also provide in substance that it may be terminated by
the Agent at any time without penalty upon giving the Corporation one
hundred twenty (120) days' written notice (which notice may be waived by
the Corporation) and may be terminated by the Corporation at any time
without penalty upon giving the Agent sixty (60) days' written notice
(which notice may be waived by the Agent), provided that such termination
by the Corporation shall be directed or approved by the vote of a majority
of the Board of Directors of the Corporation in office at the time or by
the vote of the holders of a majority (as defined in or under the 0000 Xxx)
of the outstanding shares of each class or series of the Corporation.
IV. Brokerage.
(A) WRIMCO may select brokers to effect the portfolio transactions of
each Fund on the basis of its estimate of their ability to obtain, for
reasonable and competitive commissions, the best execution of particular
and related portfolio transactions. For this purpose, "best execution"
means prompt and reliable execution at the most favorable price obtainable.
Such brokers may be selected on the basis of all relevant factors including
the execution capabilities required by the transaction or transactions, the
importance of speed, efficiency, or confidentiality, and the willingness of
the broker to provide useful or desirable investment research and/or
special execution services. WRIMCO shall have no duty to seek advance
competitive commission bids and may select brokers based solely on its
current knowledge of prevailing commission rates.
(B) Subject to the foregoing, WRIMCO shall have discretion, in the
interest of the Funds, to direct the execution of its portfolio
transactions to brokers who provide brokerage and/or research services (as
such services are defined in Section 28(e) of the Securities Exchange Act
of 1934) for the Funds and/or other accounts for which WRIMCO and its
affiliates exercise "investment discretion" (as that term is defined in
Section 3(a)(35) of the Securities Exchange Act of 1934); and in connection
with such transactions, to pay commission in excess of the amount another
adequately qualified broker would have charged if WRIMCO determines, in
good faith, that such commission is reasonable in relation to the value of
the brokerage and/or research services provided by such broker, viewed in
terms of either that particular transaction or the overall responsibilities
of WRIMCO and its investment advisory affiliates with respect to the
accounts for which they exercise investment discretion. In reaching such
determination, WRIMCO will not be required to attempt to place a specified
dollar amount on the brokerage and/or research services provided by such
broker; provided that WRIMCO shall be prepared to demonstrate that such
determinations were made in good faith, and that all commissions paid by
the Funds over a representative period selected by the Corporation's Board
of Directors were reasonable in relation to the benefits to the Funds.
(C) Subject to the foregoing provisions of this Paragraph "IV",
WRIMCO may also consider sales of each Fund's shares and shares of other
investment companies distributed by W&R or its affiliates, and portfolio
valuation or pricing services as a factor in the selection of brokers to
execute brokerage and principal portfolio transactions.
V. Compensation of WRIMCO.
As compensation in full for services rendered and for the facilities and
personnel furnished under sections I, II, and IV of this Agreement, each
Fund of the Corporation will pay to WRIMCO for each day the fees specified
in Exhibit A hereto.
The amounts payable to WRIMCO shall be determined as of the close of
business each day; shall, except as set forth below, be based upon the
value of net assets computed in accordance with the Articles of
Incorporation of the Corporation; and shall be paid in arrears whenever
requested by WRIMCO. In computing the value of the net assets of each Fund,
there shall be excluded the amount owed to the Fund with respect to shares
which have been sold but not yet paid to the Fund by W&R.
Notwithstanding the foregoing, if the laws, regulations or policies of any
state in which shares of the Funds are qualified for sale limit the
operation and management expenses of the Funds, WRIMCO will refund to the
Funds the amount by which such expenses exceed the lowest of such state
limitations.
VI. Undertakings of WRIMCO; Liabilities.
WRIMCO shall give to the Corporation the benefit of its best judgment,
efforts and facilities in rendering advisory services hereunder.
WRIMCO shall at all times be guided by and be subject to each Fund's
investment policies, the provisions of the Corporation's Articles of
Incorporation and Bylaws as each shall from time to time be amended, and to
the decision and determination of the Corporation's Board of Directors.
This Agreement shall be performed in accordance with the requirements of
the 1940 Act, the Investment Advisers Act of 1940, the Securities Act of
1933, and the Securities Exchange Act of 1934, to the extent that the
subject matter of this Agreement is within the purview of such Acts.
Insofar as applicable to WRIMCO as an investment adviser and affiliated
person of the Corporation, WRIMCO shall comply with the provisions of the
1940 Act, the Investment Advisers Act of 1940 and the respective rules and
regulations of the Securities and Exchange Commission thereunder.
In the absence of willful misfeasance, bad faith, gross negligence or
reckless disregard of obligations or duties hereunder on the part of
WRIMCO, it shall not be subject to liability to the Corporation or to any
stockholder of the Funds for any act or omission in the course of or
connected with rendering services thereunder or for any losses that may be
sustained in the purchase, holding or sale of any security.
VII. Duration of this Agreement.
This Agreement shall be renewed at the start of business on the date hereof
and shall continue in effect, unless terminated as hereinafter provided,
for a period of one year and from year-to-year thereafter only if such
continuance is specifically approved at least annually by the Board of
Directors, including the vote of a majority of the directors who are not
parties to this Agreement or "interested persons" (as defined in the 0000
Xxx) of any such party, cast in person at a meeting called for the purpose
of voting on such approval, or by the vote of the holders of a majority (as
so defined) of the outstanding voting securities of each class or series of
the Corporation and by the vote of a majority of the directors who are not
parties to this Agreement or "interested persons" (as so defined) of any
such party, cast in person at a meeting called for the purpose of voting on
such approval.
VIII. Termination.
This Agreement may be terminated by WRIMCO at any time without penalty upon
giving the Corporation one hundred twenty (120) days' written notice (which
notice may be waived by the Corporation) and may be terminated by the
Corporation at any time without penalty upon giving WRIMCO sixty (60) days'
written notice (which notice may be waived by WRIMCO), provided that such
termination by the Corporation shall be directed or approved by the vote of
a majority of the Board of Directors of the Corporation in office at the
time or by the vote of a majority (as defined in the 0000 Xxx) of the
outstanding voting securities of the Corporation. This Agreement shall
automatically terminate in the event of its assignment, the term
"assignment" for this purpose having the meaning defined in Section 2(a)(4)
of the 1940 Act and the rules and regulations thereunder.
IN WITNESS WHEREOF, the parties hereto have caused the foregoing instrument
to be executed by their duly authorized officers and their corporate seal
to be hereunto affixed, all as of the day and year first above written.
(Seal)
XXXXXXX & XXXX ADVISORS FUNDS, INC.
By:/s/Xxxxxx X. Xxxxxxx
-----------------------------
Xxxxxx X. Xxxxxxx
Vice President
ATTEST:
/s/Xxxxxxx X. Xxxxxxxx
-------------------------------------
Xxxxxxx X. Xxxxxxxx, Secretary
(Seal)
XXXXXXX & XXXX INVESTMENT
MANAGEMENT COMPANY
By:/s/Xxxxx X. Xxxxxxxx
----------------------------
Xxxxx X.Xxxxxxxx
President
ATTEST:
/s/Xxxxxx X. Xxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxx, Secretary
EXHIBIT A TO INVESTMENT MANAGEMENT AGREEMENT
XXXXXXX & XXXX ADVISORS FUNDS, INC.
FEE SCHEDULE
A cash fee computed each day on net asset value for each Fund at the annual
rates listed below:
Advisors Accumulative Fund
Net Assets Fee
Up to $1 billion 0.70% of net assets
Over $1 billion and up to $2 billion 0.65% of net assets
Over $2 billion and up to $3 billion 0.60% of net assets
Over $3 billion 0.55% of net assets
Advisors Bond Fund
Net Assets Fee
Up to $500 million 0.525% of net assets
Over $500 million and up to $1 billion 0.50% of net assets
Over $1 billion and up to $1.5 billion 0.45% of net assets
Over $1.5 billion 0.40% of net assets
Advisors Core Investment Fund
Net Assets Fee
Up to $1 billion 0.70% of net assets
Over $1 billion and up to $2 billion 0.65% of net assets
Over $2 billion and up to $3 billion 0.60% of net assets
Over $3 billion up to $6 billion 0.55% of net assets
Over $6 billion 0.50%
Advisors Science and Technology Fund
Net Assets Fee
Up to $1 billion 0.85% of net assets
Over $1 billion and up to $2 billion 0.83% of net assets
Over $2 billion and up to $3 billion 0.80% of net assets
Over $3 billion 0.76% of net assets
As Amended and Effective August 21, 2002.
