Exhibit (d)
INVESTMENT ADVISORY AGREEMENT
Agreement made as of this 15th day of May, 1987 between the Trustees of Elfun
Global Fund (the Trustees) and General Electric Investment Corporation, a
Delaware corporation and wholly owned subsidiary of General Electric Company
(GEIC).
W I T N E S S E T H:
WHEREAS, GEIC has agreed to furnish the Trustees with certain services in
connection with the management and the investment of monies in the Elfun Global
Fund (Fund) portfolio, all as herein provided,
NOW, THEREFORE, in consideration of the mutual covenants herein set forth, the
parties hereto agree as follows:
1. Appointment as Investment Adviser
The Trustees hereby appoint GEIC to act as the Investment Adviser to the Fund on
the terms set forth in this agreement. GEIC hereby accepts such appointment and
agrees to render the services herein set forth on the terms herein contained.
2. Services to be Performed
a. GEIC will recommend to the Trustees individuals to fill the positions of
Manager, Secretary and, if the Trustees so desire, Assistant Secretary and other
officers of the Fund. Upon receipt of such recommendations the Trustees will
vote upon the appointment of such individuals to the positions for which they
were recommended and will advise GEIC as to whether or not they have been so
appointed.
b. GEIC shall manage the investment and reinvestment of all the assets in the
Fund from time to time (including any income earned thereon and increments in
the value thereof). Among other things, GEIC shall be responsible for all
investment decisions regarding purchases and sales of securities and other
property, the retention of securities, and the retention of uninvested cash. In
performing the aforesaid services, GEIC shall comply with all investment
policies of the Fund in effect from time to time and such general guidance,
policies and instructions as the Trustees may additionally establish. GEIC
shall, in addition, make recommendations as and when requested by the Trustees
with respect to the adoption or modification of investment policies and the
Fund's objective. In carrying out the aforesaid investment activities GEIC
shall, whenever purchases and sales would involve brokerage commissions, have as
its primary objective the selection of brokers so as to obtain the best
execution at the most favorable price; provided, however, that GEIC may in its
discretion select brokers and dealers from time to time as it may deem
appropriate on the basis of research, statistical and other services which they
may furnish to it or the Fund for the Fund's benefit. Whenever GEIC deems it to
be beneficial to the Fund, it may aggregate its purchase, sale and other
activities with those being performed by it for other customers. In such event,
allocation of the security so purchased or sold, as well as the expenses
incurred in such transactions, shall be made by GEIC in the manner it considers
to be
the most equitable and consistent with its obligations to the Fund and such
other customers.
c. Upon receipt of authorization from the Trustees, GEIC will pay from the
assets of the Fund all amounts necessary to discharge obligations incurred by or
on behalf of the Fund (including distributions to, and payments in respect of
redemptions by, Unitholders), except that the following payments may be made by
GEIC from the Fund's assets without the necessity of prior instructions from the
Trustees:
(i) all income or other taxes in respect of the Fund which may be imposed by
law; and
(ii) all broker's commissions with respect to security transactions entered into
on behalf of the Fund and all taxes or governmental fees attributable to such
transactions.
d. GEIC shall take or cause to be taken all actions necessary to cause the Fund
to continuously comply with all applicable state and local laws and shall itself
comply with all such laws insofar as they pertain to GEIC's activities relating
to the Fund.
e. GEIC will prepare and distribute all reports including reports to the
Unitholders which are required by Federal and state regulatory authorities, as
well as any other reports specifically requested by the Trustees from time to
time.
f. GEIC will vote all securities beneficially owned by the Fund in accordance
with policies and procedures established by the Trustees and, to the extent
prescribed by such policies, subject to their prior approval. g. GEIC will
maintain the records of all security transactions of the Fund and will prepare
an annual accounting for the Trustees.
h. GEIC will cooperate with the independent public accountants retained by the
Trustees in their examination of the Fund and will cooperate in any inspection
of the accounts and records by the Trustees.
i. GEIC will compute the net asset value of the Fund in accordance with the Fund
Trust Agreement.
j. GEIC will prepare such reports, including tax returns as may be requested by
the Trustees and will furnish the Trustees such additional information as is
necessary for the preparation of other reports with respect to the Fund required
by Federal, State or local governmental authorities. k. GEIC will submit
periodically to the Trustees written reports covering all transactions of the
Fund, the results of the Fund's operations, the assets and financial condition
of the Fund, and such other information as the Trustees may reasonably request.
The reports will be provided at the time specified by the Trustees. l. GEIC will
be responsible for effecting adequate routines to collect, receive and deposit
all income of the Fund and other payments to the Fund, including stock
dividends, rights, warrants and similar items, but excluding payments associated
with subscriptions and revocations.
3. Compensation
The Trustees will, within thirty (30) days after receipt of an invoice therefor,
reimburse GEIC for reasonable costs (direct and indirect including without
limitation indirect costs involving allocable overhead, consulting fees, and
informational brochures and services, etc.) of providing the services specified
in Paragraph 1 above; provided, however, that
GEIC shall not include among such costs any increment for profit to itself or
its employees.
4. Records
GEIC shall maintain such books and records with respect to its activities
hereunder as may be required from time to time by applicable law and as the
Trustees may, in addition, reasonably request. GEIC shall make available its
books and records to the Trustees and their agents, counsel and accountants as
and when requested by the Trustees for purposes of audit or otherwise.
5. Liability for Investments
Subject to any contrary mandatory requirements of applicable law, GEIC shall not
be liable for any losses on investments made in good faith, provided that GEIC
shall not have been grossly negligent.
6. Communications
All communications between GEIC and the Trustees may be made orally or in
writing and GEIC may rely on any such communications if it shall believe in good
faith than the same have been given to it by a Trustee of the Fund or other
person duly authorized on their behalf.
7. Amendments
This Agreement may only be modified or amended or the terms hereof waived by an
instrument in writing signed by the person or entity against whom such
amendment, modification or waiver is sought to be enforced.
8. Termination
This Agreement may be terminated by either party hereto at any time by giving
sixty (60) days' prior written notice thereof to the other party hereto. This
Agreement may not be assigned or transferred by either party hereto to any third
party and any such attempted assignment or transfer shall automatically act to
terminate this Agreement. In the event that this Agreement is terminated, GEIC
will transmit to the Trustees on or before the termination date all records in
its possession relating to its services performed hereunder.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.
TRUSTEES OF ELFUN GLOBAL FUND
/s/ Xxxx X. Xxxx
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Xxxx X. Xxxx
/s/ Xxxxxx X. Xxxx
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Xxxxxx X. Xxxx
/s/ Xxxx X. Xxxxx
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Xxxx X. Xxxxx
/s/ Xxxxx X. XxXxxxxx
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Xxxxx X. XxXxxxxx
/s/ Xxxxx X. Xxxxxxxxx
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Xxxxx X. Xxxxxxxxx
GENERAL ELECTRIC INVESTMENT CORPORATION
ATTEST:
/s/ Xxxxx X. XxXxxxxx By /s/ Xxxx X. Xxxx
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Secretary Xxxx X. Xxxx
Chairman of the Board
