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Exhibit (h)(4)
EXPENSE CAP AGREEMENT
Agreement made this 26th day of January, 1999, between Hotchkis and
Wiley, as investment advisor (the "Advisor"), and the Hotchkis and Wiley Funds
(individually, a "Fund" and collectively, the "Funds").
WHEREAS, the Advisor has been reimbursing some of the Funds for expenses
that exceed certain voluntary expense limits, and
WHEREAS, the Advisor wishes to change its voluntary agreement to limit
expenses of some of the Funds and commit to those limits for a period of time,
and
WHEREAS, shareholders of the Funds benefit from any expense limits
agreed to by the Advisor.
NOW, THEREFORE, the Funds and the Advisor agree to expense limits on the
annual operating expenses of the Funds, as follows:
Expense Limit
Effective April 1, 1999
(as a percentage of
Expense Limit Effective average net assets)
March 1, 1999 ----------------------------------
Fund (as a percentage of Distributor
average net assets) Investor Class Class
---- ----------------------- -------------- -----------
Equity Income 0.95% 0.95% N/A
Mid-Cap 1.15% 1.15% N/A
Global Equity 1.25% 1.25% N/A
Balanced 0.95% 0.95% 1.20%
Total Return Bond 0.65% 0.65% 0.90%
Low Duration 0.58% 0.58% 0.83%
Short-Term Investment 0.48% 0.48% N/A
The Advisor's voluntary agreement to limit the annual operating expenses of the
Small Cap Fund and the International Fund to 1.00% of each such Fund's average
net assets is terminated as of 11:59 p.m. on February 28, 1999. The Advisor
agrees to continue the foregoing expense limits through February 29, 2000 and
thereafter may change any of them only upon 30 days' prior notice to the
applicable Fund shareholders.
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IN WITNESS WHEREOF, the parties have signed this agreement as of the day
and year first above written.
HOTCHKIS AND WILEY, a
division of Xxxxxxx Xxxxx
Asset Management L.P.
By /s/ XXXXX X. XXXXXX
---------------------------------
HOTCHKIS AND WILEY FUNDS
By /s/ XXXXX X. XXXXXX
---------------------------------
Xxxxx X. Xxxxxx
President
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