John Hancock Investment Management Services, LLC 601 Congress Street Boston, MA 02210
Table of Contents
Xxxx Xxxxxxx Investment Management Services, LLC 000 Xxxxxxxx Xxxxxx Xxxxxx, XX 00000 |
December 17, 2008
To the Trustees of:
Xxxx Xxxxxxx Funds II
000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000
Xxxx Xxxxxxx Funds II
000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000
Re: | Amended and Restated Expense Limitation Agreement and Voluntary Expense Limitation Notice |
With reference to the Advisory Agreement dated October 17, 2005, as amended, entered into by and
between Xxxx Xxxxxxx Investment Management Services, LLC (the “Adviser”) and Xxxx Xxxxxxx Funds II
(the “Trust”), on behalf of each series of the Trust (each, a “Fund” and collectively, the
“Funds”), we hereby notify you as follows:
1. The Adviser agrees to contractually waive its management fee for each Fund and, to the extent
necessary, bear other expenses, as set forth in Appendices A, B, C, D, E, F, G and H hereto.
2. The Adviser will voluntarily waive its management fee for each Fund and, to the extent
necessary, bear other expenses, as set forth in Appendices I, J and K hereto.
3. We understand and intend that you will rely on this undertaking in overseeing the preparation
and filing of Post-effective Amendments to the Registration Statement on Form N-1A for the Trust
and the Funds with the Securities and Exchange Commission and in accruing each Fund’s expenses for
purposes of calculating its net asset value per share and for other purposes permitted under Form
N-1A and/or the Investment Company Act of 1940, as amended, and we expressly permit you so to rely.
Very truly yours,
XXXX XXXXXXX INVESTMENT MANAGEMENT SERVICES, LLC
By:
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/s/ Xxxxxxx X. Xxxx
|
|||
Chief Financial Officer | ||||
By:
|
/s/ Xxxxxxx Xxxxx | |||
Xxxxxxx Xxxxx Senior Vice President |
TABLE OF CONTENTS
APPENDIX A | ||||||||
APPENDIX B | ||||||||
APPENDIX C | ||||||||
APPENDIX D | ||||||||
APPENDIX E | ||||||||
APPENDIX F | ||||||||
APPENDIX G | ||||||||
APPENDIX H | ||||||||
APPENDIX I | ||||||||
APPENDIX J | ||||||||
APPENDIX K |
Table of Contents
APPENDIX A
Advisory Fee Contractual Reimbursement –
Lifestyle Portfolios Only
Class Specific
Lifestyle Portfolios Only
Class Specific
The expense reimbursement set forth in this Appendix shall apply to the following classes of shares
of each Lifestyle Portfolio (each a “Lifestyle Class”):
Class A
Class B
Class C
Class R
Class R1
Class R2
Class R3
Class R4
Class R5
Class B
Class C
Class R
Class R1
Class R2
Class R3
Class R4
Class R5
“Expenses” mean the following expenses attributable to a Lifestyle Class: (a) blue sky fees and (b)
printing and postage.
The Adviser contractually agrees to make payment to a Lifestyle Class of a Lifestyle Portfolio in
an amount equal to the amount by which the Expenses of the Lifestyle Class of the Lifestyle
Portfolio exceed 0.09% of average annual net assets (on an annualized basis) attributable to the
Lifestyle Class of the Lifestyle Portfolio.
This expense reimbursement shall continue in effect until May 1, 2009 and thereafter until
terminated by the Adviser on notice to the Trust.
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APPENDIX B
Advisory Fee Contractual Reimbursement –
Lifecycle Portfolios Only
Class Specific
Lifecycle Portfolios Only
Class Specific
The expense reimbursement set forth in this Appendix shall apply to the following classes of shares
of each Lifecycle Portfolio (each a “Lifecycle Class”):
Lifecycle 2010
Lifecycle 2015
Lifecycle 2020
Lifecycle 2025
Lifecycle 2030
Lifecycle 2035
Lifecycle 2040
Lifecycle 2045
Lifecycle Retirement
Lifecycle 2015
Lifecycle 2020
Lifecycle 2025
Lifecycle 2030
Lifecycle 2035
Lifecycle 2040
Lifecycle 2045
Lifecycle Retirement
The Adviser agrees to make payment to a Lifecycle Class of a Lifecycle Portfolio in an amount equal
to the amount by which the Expenses of the Lifecycle Class of the Lifecycle Fund exceed the
percentage of average annual net assets (on an annualized basis) attributable to the Lifecycle
Class of the Lifecycle Portfolio as follows:
Class A: |
0.50 | % | ||
Class B: |
1.20 | % | ||
Class C: |
1.20 | % | ||
Class R: |
1.05 | % | ||
Class R1: |
0.80 | % | ||
Class R2: |
0.55 | % | ||
Class R3: |
0.70 | % | ||
Class R4: |
0.40 | % | ||
Class R5: |
0.10 | % | ||
Class 1: |
0.05 | % |
“Expenses” means all expenses attributable to a Lifecycle Class, excluding fund level and advisory
fees, underlying fund expenses, taxes, brokerage commissions, interest, litigation and
indemnification expenses, other extraordinary expenses not incurred in the ordinary course of the
business, and fees under any agreement or plans of the Lifecycle Portfolio dealing with services
for shareholders and others with beneficial interests in shares of the Lifecycle Portfolio.
This expense reimbursement shall continue in effect until December 31, 2009 and thereafter until
terminated by the Adviser on notice to the Trust.
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APPENDIX C
Class Specific Expense Limitations
For purposes of this Appendix:
“Expenses” means all the expenses of a class of shares of a Fund but excluding: (i) taxes, (ii)
brokerage commissions, (iii) interest, (iv) short dividend, (v) acquired fees, (vi) litigation and
indemnification expenses and other extraordinary expenses not incurred in the ordinary course of
the Fund’s business; (vii) fund level including advisory fees and (viii) fees under any agreements
or plans of the Fund dealing with services for shareholders and others with beneficial interests in
shares of the Trust.
“Expense Limit” means the percentage of average annual net assets (on an annualized basis)
attributable to a class of shares of the Funds set forth below.
The Adviser agrees to make payment to a specific class of shares of the Fund (up to the amount of
the expenses relating solely to such class of shares), in an amount equal to the amount by which
the Expenses of such class of shares exceed the Expense Limit for such class set forth in the table
below.
The Expense Limit for the classes of shares of the Funds indicated below for the purposes of this
Appendix shall be as follows:
Classes: | ||||||||||||||||
Fund: | A | B | C | 1 | ||||||||||||
Absolute Return** |
0.50 | % | 1.20 | % | 1.20 | % | 0.05 | % | ||||||||
Retirement Distribution* |
0.35 | % | — | — | — | |||||||||||
Retirement Rising Distribution* |
0.35 | % | — | — | — |
* | This expense reimbursement shall continue in effect until December 31, 2008 and thereafter until terminated by the Adviser on notice to the Trust. | |
** | This expense reimbursement shall continue in effect until December 31, 2009 and thereafter until terminated by the Adviser on notice to the Trust. |
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APPENDIX D
Advisory Fee Contractual Reimbursement –
Lifecycle Portfolios Only
Fund Level
Lifecycle Portfolios Only
Fund Level
The expense reimbursement set forth in this Appendix shall apply to the Lifecycle Portfolios at the
fund level.
The Adviser agrees to make payment to the Lifecycle Portfolios in an amount equal to the amount by
which the certain Portfolio level expenses of the Lifecycle Portfolios exceed 0.09% of average
annual net assets (on an annualized basis) attributable to the Lifecycle Portfolios. Such expenses
exclude (a) management fees, (b) Rule 12b-1 fees, (c) transfer agency fees and service fees, (d)
taxes, (e) portfolio brokerage commissions, (f) interest (g) underlying fund expenses, (h) printing
and postage, (i) blue sky, (j) litigation and indemnification expenses and other extraordinary
expenses not incurred in the ordinary course of the business of the Lifecycle Portfolios, and (k)
fees under any agreement or plans of the Lifecycle Portfolio dealing with services for shareholders
and others with beneficial interests in shares of the Lifecycle Portfolio.
This expense reimbursement shall continue in effect until December 31, 2009 and thereafter until
terminated by the Adviser on notice to the Trust.
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APPENDIX E
Advisory Fee Contractual Reimbursement –
All In Cap
All In Cap
For purposes of this Appendix:
The “All In Cap” includes both the fund level and class specific operating expenses excluding (a)
taxes, (b) portfolio brokerage commissions, (c) interest (d) underlying fund expenses (acquired
fees), (e) litigation and indemnification expenses and other extraordinary expenses not incurred in
the ordinary course of the business of the Portfolios, and (f) fees under any agreement or plans of
the “Funds” dealing with services for shareholders and others with beneficial interests in shares
of the Portfolio.
“Expense Limit” means the percentage of a Fund’s average annual net assets on an annualized basis
set forth below.
The Adviser contractually agrees to reduce its management fee for a Fund of the Trust, or if
necessary make payment to a Fund, in an amount equal to the amount by which the Expenses of such
Fund exceed the Expense Limit for such Fund set forth in the table below.
The Expense Limit for each of the Funds for the purposes of the Appendix shall be as follows:
Classes: | ||||||||||||||||||||
Fund: | A | B | C | 1 | I | |||||||||||||||
Floating Rate Income |
1.20 | % | 1.95 | % | 1.95 | % | 0.85 | % | 0.85 | % | ||||||||||
Optimized All Cap |
1.30 | % | 2.00 | % | 2.00 | % | — | 0.85 | % | |||||||||||
Optimized Value |
1.29 | % | 1.99 | % | 1.99 | % | 0.85 | % | 0.84 | % |
This expense reimbursement shall continue in effect until December 31, 2009 and thereafter until
terminated by the Adviser on notice to the Trust.
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APPENDIX F
Advisory Fee Contractual Reimbursement –
Fund Level
Fund Level
For purposes of this Appendix:
“Expenses” means the expenses of a Fund excluding (a) taxes; (b) brokerage commissions; (c)
interest; (d) litigation and indemnification expenses and other extraordinary expenses not incurred
in the ordinary course of the Trust’s business; (e) Rule 12b-1 fees; (f) transfer agency fees; (g)
blue sky fees; (h) printing and postage; (i) acquired fees; and (j) short dividend.
“Expense Limit” means the percentage of a Fund’s average annual net assets on an annualized basis
set forth below.
The Adviser contractually agrees to reduce its management fee for a Fund of the Trust, or if
necessary make payment to a Fund, in an amount equal to the amount by which the Expenses of such
Fund exceed the Expense Limit for such Fund set forth in the table below.
The Expense Limit for each of the Funds for the purposes of the Appendix shall be as follows:
Fund | Expense Limit | |||
Optimized All Cap |
0.80 | % | ||
Optimized Value |
0.80 | % | ||
Floating Rate Income |
0.80 | % |
This expense reimbursement shall continue in effect until December 31, 2009 and thereafter until
terminated by the Adviser on notice to the Trust.
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APPENDIX G
Advisory Fee Contractual Reimbursement –
Fund Level
Fund Level
For purposes of this Appendix:
“Other Expenses” means the expenses of a Fund excluding: (a) taxes; (b) brokerage commissions; (c)
interest; (d) litigation and indemnification expenses and other extraordinary expenses not incurred
in the ordinary course of the Trust’s business; (e) management fees; (f) Rule 12b-1 fees; (g)
transfer agency fees; (h) blue sky fees; (i) printing and postage; (j) acquired fees; and (k) short
dividend.
“Expense Limit” means the percentage of a Fund’s average annual net assets on an annualized basis
set forth below.
The Adviser contractually agrees to reduce its management fee for a Fund of the Trust, or if
necessary make payment to a Fund, in an amount equal to the amount by which the Other Expenses of
such Fund exceed the Expense Limit for such Fund set forth in the table below.
The Expense Limit for each of the Funds for the purposes of the Appendix shall be as follows:
Fund | Expense Limit | |||
Absolute Return** |
0.05 | % | ||
Retirement Distribution* |
0.09 | % | ||
Retirement Rising Distribution* |
0.09 | % | ||
Total Bond Market** |
0.075 | % | ||
Value** |
0.25 | % |
* | This expense reimbursement shall continue in effect until December 31, 2008 and thereafter until terminated by the Adviser on notice to the Trust. | |
** | This expense reimbursement shall continue in effect until December 31, 2009 and thereafter until terminated by the Adviser on notice to the Trust. |
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APPENDIX H
Advisory Fee Contractual Waiver –
Fund Level
Fund Level
The contractual advisory fee waiver set forth in this Appendix shall apply as follows:
The Adviser has agreed to waive its management fees for the Fund so that the amount retained by the
Adviser after payment of the subadvisory fees for each such Fund does not exceed the amount stated
below of the Fund’s average annual net assets.
Fund | Limit | |||
American Diversified Growth & Income* |
0.00 | % | ||
American Fundamental Holdings* |
0.00 | % | ||
American Global Diversification Holdings* |
0.00 | % | ||
International Value** |
0.45 | % | ||
Smaller Company Growth*** |
0.45 | % |
* | These advisory fee waivers shall continue in effect until July 1, 2009 and thereafter until terminated by the Adviser on notice to the Trust. | |
** | These advisory fee waivers shall continue in effect until December 31, 2009 and thereafter until terminated by the Adviser on notice to the Trust. | |
*** | These advisory fee waivers shall continue in effect until October 10, 2009 and thereafter until terminated by the Adviser on notice to the Trust. |
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APPENDIX I
Advisory
Fee Voluntary Reimbursement –
Fund Level
Fund Level
For purposes of this Appendix:
“Expenses” means all the expenses of a Fund excluding: (a) taxes; (b) portfolio brokerage
commissions; (c) interest; (d) litigation and indemnification expenses and other extraordinary
expenses not incurred in the ordinary course of the Trust’s business; (e) management fees; (f) Rule
12b-1 fees; (g) transfer agency fees and service fees; (h) blue sky fees; (i) printing and postage;
(j) acquired fees; and (k) fees under any agreements or plans of the Trust dealing with services
for shareholders and others with beneficial interests in shares of the Trust.
“Expense Limit” means the percentage of a Fund’s average annual net assets on an annualized basis
set forth below.
The Adviser voluntarily agrees to reduce its management fee for a Fund of the Trust, or if
necessary make payment to a Fund, in an amount equal to the amount by which the Expenses of such
Fund exceed the Expense Limit for such Fund set forth in the table below.
The voluntary Expense Limit for each of the Funds for the purposes of this Appendix shall be as
follows:
Fund | Expense Limit | |||
American Diversified Growth and Income |
0.06 | % | ||
American Fundamental Holding |
0.06 | % | ||
American Global Diversification |
0.06 | % | ||
Index 500 |
0.05 | % | ||
International Equity Index |
0.05 | % | ||
Lifestyle Balance — Class 5 |
0.07 | % | ||
Lifestyle Growth — Class 5 |
0.07 | % | ||
Lifestyle Moderate — Class 5 |
0.07 | % | ||
Mid Cap Index |
0.075 | % | ||
Small Cap Index |
0.075 | % |
This expense reimbursement shall continue in effect until terminated at any time by the Adviser on
notice to the Trust.
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APPENDIX J
Advisory Fee Voluntary Reduction –
Fund Level
Fund Level
The voluntary advisory fee reduction set forth in this Appendix shall apply as follows:
The Adviser has also voluntarily agreed to reduce the management fee for each X. Xxxx Fund by the
amount that the subadvisory fee is reduced. X. Xxxx Xxxxx has voluntarily agreed to waive a
portion of its subadvisory fee for the Blue Chip Growth Fund, Equity-Income Fund, Health Sciences
Fund, Science & Technology Fund, Small Company Value Fund, Spectrum Income Fund and Real Estate
Equity Fund. This waiver is based on the combined average daily net assets of these Funds and the
following funds of Xxxx Xxxxxxx Trust: Blue Chip Growth Trust, Equity-Income Trust, Health Sciences
Trust, Mid Value Trust, Science & Technology Trust, Small Company Value Trust, Spectrum Income
Trust and Real Estate Equity Trust (collectively, the “X. Xxxx Funds”).
The percentage reduction is as follows:
Combined Average Daily Net Assets of the | Fee Reduction (As a Percentage of | |||
X. Xxxx Funds | the Subadvisory Fee) | |||
First $750 million |
0.00 | % | ||
Next $750 million |
5.0 | % | ||
Next $1.5 billion |
7.5 | % | ||
Over $3 billion |
10.0 | % |
This voluntary fee reduction shall continue in effect until terminated at any time by the Adviser
on notice to the Trust.
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APPENDIX K
Advisor Fee Voluntary Waiver
Fund Level
Xxxx Xxxxxxx Investment Management Services (the “Adviser”), as the investment adviser for the Xxxx
Xxxxxxx Lifestyle and Lifecycle Portfolios (the “Fund”), receives a fee of 0.05% on assets invested
in funds of Xxxx Xxxxxxx Funds II and Xxxx Xxxxxxx Funds III and 0.50% on all other investments.
The Fund invests in other mutual funds, of which some or all of the investments are mutual funds
managed by the Adviser who receives an advisory fee for such services. The voluntary adviser fee
waiver shall apply as follows:
The Adviser has voluntarily agreed to waive its advisory fees for the Fund so that the amount
retained by the Adviser after payment of subadvisory fees, including Adviser fees collected on the
underlying investments after payment of subadvisory fees, does not exceed 0.50% of the Fund’s
average annual net assets.
This advisory fee waiver is voluntary and can be terminated at any time by the Adviser on notice to
the Trust.
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