EXHIBIT (D)(25)
SUB-INVESTMENT ADVISORY AGREEMENT
BETWEEN
ABN AMRO ASSET MANAGEMENT (USA) LLC
AND
MELLON EQUITY ASSOCIATES, LLP
SUB-INVESTMENT ADVISORY AGREEMENT (the "Agreement") made this 27th day
of September, 2001, by and between ABN AMRO Asset Management (USA) LLC
(hereinafter referred to as the "Investment Adviser") and Mellon Equity
Associates, LLP (hereinafter referred to as the "Sub-Adviser"), which Agreement
may be executed in any number of counterparts, each of which shall be deemed to
be an original, but all of which together shall constitute but one instrument.
W I T N E S S E T H:
WHEREAS, the Investment Adviser wishes to enter into a contract with
the Sub-Adviser to render the Investment Adviser the following services:
Provide research, analysis, advice and recommendations with respect to
the purchase and sale of securities, and make investment commitments regarding
assets of ABN AMRO Value Fund (hereinafter referred to as the "Fund"; the Fund
is a series of the ABN AMRO Funds, hereinafter referred to as the "Trust"),
subject to oversight by the Board of Trustees of the Trust and the supervision
of the Investment Adviser.
NOW THEREFORE, in consideration of the mutual agreements herein
contained, and intending to be bound, the parties agree as follows:
1. As compensation for the services enumerated herein, the Investment
Adviser will pay the Sub-Adviser a fee, which shall be calculated monthly and
payable monthly, as set forth in Schedule A hereto.
If this Agreement shall become effective subsequent to the first
day of a month, or shall terminate before the last day of a month, the
Sub-Adviser's compensation for such fraction of the month shall be determined by
applying the foregoing percentages to the average daily net asset value of the
Fund during such fraction of a month and in the proportion that such fraction of
a month bears to the entire month.
2. This Agreement shall become effective as of the date first above
written, subject to the approval of the Trustees of the Trust in accordance with
the provisions of the Investment Company Act of 1940 (the "Act"). The Investment
Adviser will promptly advise the Sub-Adviser as to the giving of such approval.
The Investment Adviser represents that it is the investment Adviser of the Fund,
with the authority as such to enter into this Agreement.
3. This Agreement shall continue in effect until December 31, 2001. It
may be renewed thereafter by the Investment Adviser and the Sub-Adviser for
successive periods not exceeding one year only so long as such renewal and
continuance is specifically approved at least annually by the Board of Trustees
of the Trust or by a vote of the majority of the
outstanding voting securities of the Fund as prescribed by the Act and provided
further that such continuance is approved at least annually thereafter by a vote
of a majority of the Trust's Trustees, who are not parties to such Agreement or
interested persons of such a party, cast in person at a meeting called for the
purpose of voting on such approval. This Agreement will terminate automatically
without the payment of any penalty upon termination of the Investment Advisory
Agreement ("Investment Advisory Agreement') relating to the Fund between the
Trust and the Investment Adviser (accompanied by simultaneous notice to the
Sub-Adviser) or upon sixty days' written notice by the Trust to the Sub-Adviser
that the Trustees of the Trust, the Investment Advisor or the shareholders by
vote of a majority of the outstanding voting securities of the Fund, as provided
by the Act, have terminated this Agreement. This Agreement may also be
terminated by the Sub-Advisor without penalty upon sixty days' written notice to
Investment Advisor and the Trust.
This Agreement shall terminate automatically in the event of its
assignment or (upon notice thereof to the Sub-Adviser) the assignment of the
Investment Advisory Agreement, unless its continuation thereafter is approved by
the Board of Trustees of the Trust and the shareholders of the Fund as required
by the Act (in each case as the term "assignment" is defined in section 2(a)(4)
of the Act).
4. Subject to the supervision of the Board of Trustees of the Trust and
the Investment Adviser, the Sub-Adviser will provide an investment program for
the Fund, including investment research and management with respect to
securities and investments, including cash and cash equivalents in the Fund, and
will determine from time to time what securities and other investments will be
purchased, retained or sold by the Fund. The Sub-Adviser will provide the
services under this Agreement in accordance with the Fund's investment objective
policies and restrictions as stated in the Prospectus (as used herein this term
includes the related Statement of Additional Information). The Sub-Adviser
further agrees that it:
(a) will conform with all applicable Rules and Regulations of the
Securities and Exchange Commission and will, in addition, conduct its activities
under this Agreement in accordance with regulations of any other Federal or
State agencies which now have or in the future will have jurisdiction over its
activities;
(b) will pay expenses incurred by it in connection with its
activities under this Agreement other than the cost of securities and other
investments (including brokerage commissions and other transaction changes, if
any) purchased for the Fund, provided that the Sub-Adviser will not pay for or
provide a credit with respect to any research provided to it in accordance with
Section 4(c);
(c) will place orders pursuant to its investment determinations for
the Fund either directly with any broker or dealer, or with the issuer. In
placing orders with brokers or dealers, the Sub-Adviser will attempt to obtain
the best overall price and the most favorable execution of its orders, except as
provided below. Consistent with this obligation, when the execution and price
offered by two or more brokers or dealers are comparable, the Sub-Adviser has
been advised by the Investment Adviser that the Trust has authorized the
Investment Adviser to authorize the Sub-Adviser, in its discretion, to purchase
and sell securities to and from brokers and dealers who promote the sale of Fund
shares and the Investment Adviser hereby so authorizes the Sub-Adviser. In no
instance will securities be purchased from or sold to the Sub-Adviser or any
affiliated person of the Sub-Adviser as principal. Notwithstanding the foregoing
sentence, the Sub-Adviser may arrange for the execution of brokered transactions
through an
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affiliated broker dealer in conformity with policies and procedures for such
purpose if, when, and as established by the Trustees of the Fund. Subject to
policies established by the Board of Trustees of the Trust and communicated to
the Sub-Adviser, it is understood that the Sub-Adviser will not be deemed to
have acted unlawfully, or to have breached a fiduciary duty to the Trust or in
respect of the Fund, or be in breach of any obligation owing to the Investment
Adviser or the Trust or in respect of the Fund under this Agreement, or
otherwise, solely by reason of its having caused the Fund to pay a member of a
securities exchange, a broker or a dealer a commission for effecting a
securities transaction for the Fund in excess of the amount of commission
another member of an exchange, broker or dealer would have charged if the
Sub-Adviser determines in good faith that the commission paid was reasonable in
relation to the brokerage or research services provided by such member, broker
or dealer, viewed in terms of that particular transaction or the Sub-Adviser's
overall responsibilities with respect to the accounts, including the Fund, as to
which it exercises investment discretion.
(d) will review the daily valuation of securities owned by the Fund
as obtained on a daily basis by the Fund's administrator and furnished by it to
Sub-Adviser, and will promptly notify the Trust and the Investment Adviser if
the Sub-Adviser believes that any such valuations may not properly reflect the
market value of any securities owned by the Fund, provided, however, that the
Sub-Adviser is not required by this sub-paragraph to obtain valuations of any
such securities from brokers or dealers or otherwise, or to otherwise
independently verify valuations of any such securities.
(e) will attend regular business and investment-related meetings
with the Trust's Board of Trustees and the Investment Adviser if requested to do
so by the Trust and/or the Investment Adviser.
(f) maintain books and records with respect to the securities
transactions for the Fund, furnish to the Investment Adviser and the Trust's
Board of Trustees such periodic and special reports as they may request with
respect to the Fund, and provide in advance to the Investment Adviser all of the
Sub-Adviser's reports to the Trust's Board of Trustees for examination and
review within a reasonable time prior to the Trust's Board meetings.
5. Sub-Adviser agrees with respect to the services provided to the Fund
that it:
(a) will provide Investment Adviser with trade information and
broker confirms upon request; and
(b) will treat confidentially and as proprietary information of the
Trust all records and other information relative to the Fund and its prior,
present or potential shareholders, and will not use such records and information
for any purpose other than performance of its responsibilities and duties
hereunder (except after prior notification to and approval in writing by the
Trust, which approval may not be withheld where Sub-Adviser is advised by
counsel that the Sub-Adviser may be exposed to civil or criminal contempt
proceedings for failure to comply, when requested to divulge such information by
duly constituted authorities, or when so requested by the Trust).
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6. In compliance with the requirements of Rule 31a-3 under the Act,
Sub-Adviser acknowledges that all records which it maintains for the Trust are
the property of the Trust and agrees to surrender promptly to the Trust any of
such records upon the Trust's request, provided, that Sub-Adviser may retain
copies thereof at its own expense. Sub-Adviser further agrees to preserve for
the periods prescribed by Rule 31a-2 under the Act the records required to be
maintained by Rule 31a-1 under the Act relating to transactions placed by
Sub-Adviser for the Fund.
7. It is expressly understood and agreed that the services to be
rendered by the Sub-Adviser to the Investment Adviser under the provisions of
this Agreement are not to be deemed to be exclusive, and the Sub-Adviser shall
be free to provide similar or different services to others so long as its
ability to provide the services provided for in this Agreement shall not be
materially impaired thereby.
8. The Investment Adviser agrees that it will furnish currently to the
Sub-Adviser all information with reference to the Fund and the Trust that is
reasonably necessary to permit the Sub-Adviser to carry out its responsibilities
under this Agreement, and the parties agree that they will from time to time
consult and make appropriate arrangements as to specific information that is
required under this paragraph and the frequency and manner with which it shall
be supplied. Without limiting the generality of the foregoing, Investment
Adviser will furnish to Sub-Adviser procedures consistent with the Trust's
contract with the Fund's custodian from time to time (the "Custodian"), and
reasonably satisfactory to Sub-Adviser, for consummation of portfolio
transactions for the Fund by payment to or delivery by the Custodian of all cash
and/or securities or other investments due to or from the Fund, and Sub-Adviser
shall not have possession or custody thereof or any responsibility or liability
with respect to such custody. Upon giving proper instructions to the Custodian,
Sub-Adviser shall have no responsibility or liability with respect to custodial
arrangements or the acts, omissions or other conduct of the Custodian.
9. The Sub-Adviser and its directors, officers, stockholders, employees
and agents shall not be liable for any error of judgment or mistake of law or
for any loss suffered by the Investment Adviser or the Trust in connection with
any matters to which this Agreement relates or for any other act or omission in
the performance by the Sub-Adviser of its duties under this agreement except
that nothing herein contained shall be construed to protect the Sub-Adviser
against any liability by reason of the Sub-Adviser's willful misfeasance, bad
faith, or gross negligence in the performance of its duties or by reckless
disregard of its obligations or duties under this Agreement.
10. If any provision of this Agreement shall be held or made invalid by
a court decisions, statute, rule or otherwise, the remainder of the Agreement
shall not be affected thereby. Except to the extent governed by federal law
including the Act, this Agreement shall be governed by, and construed in
accordance with, the laws of the State of Illinois, without applying the
principles of conflicts of law thereunder.
11. No provision of this Agreement may be changed, discharged or
terminated orally, but only by an instrument in writing signed by the party
against which enforcement of the change, discharge or termination is sought. No
amendment of this Agreement shall be effective with respect to the Trust until
approved in accordance with the Act.
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12. Any notice to be given hereunder may be given by personal
notification or by facsimile transmission, to the party specified at the address
stated below:
To the Investment Adviser at: ABN AMRO Asset Management (USA) LLC
000 Xxxxx Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
Attn: Xxxxxx Xxxxxxxxxx
To the Sub-Adviser at: Mellon Equity Associates, LLP
000 Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxxxxxx, XX 00000
Attn: President
To the Fund or the Trust at: ABN AMRO Funds
000 Xxxxx Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
Attn: Xxxxxx Xxxxxxxxxx
or addressed as such party may from time to time designate by notice to other
parties in accordance herewith.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
signed by their duly authorized officers as of the day and year first above
written.
ABN AMRO ASSET MANAGEMENT (USA) LLC for
ATTEST ABN AMRO VALUE FUND
/s/ Xxxxxx Xxxxxxxxxx By: /s/ Xxxxxx Xxxxxx
------------------------ ---------------------------------------
Title: President & CEO
-------------------------------------
ATTEST MELLON EQUITY ASSOCIATES, LLP
/s/ Xxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxxxx
------------------------ ---------------------------------------
Title: President and Chief Executive Officer
-------------------------------------
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SCHEDULE A SUMMARY
Investment Sub-Advisory Agreement
Between ABN AMRO Asset Management (USA) LLC
and
Mellon Equity Associates, LLP
Effective September 27, 2001
ABN AMRO VALUE FUND (THE FUND)
FEES
.400 of 1% (.00400) per annum on the first $100 million of the Fund's average
daily net assets
.350 of 1% (.00350) per annum on the next $150 million of the Fund's average
daily net assets
.300 of 1% (.00300) per annum on the next $250 million of the Fund's average
daily net assets
.250 of 1% (.00250) per annum thereafter of the Fund's average daily net assets
ABN AMRO Asset Management (USA) LLC Mellon Equity Associates, LLP
ABN AMRO ASSET MANAGEMENT (USA) LLC for
ATTEST ABN AMRO VALUE FUND
/s/ Xxxxxx Xxxxxxxxxx By: /s/ Xxxxxx Xxxxxx
------------------------------------ ---------------------------------------
Title: President & CEO
-------------------------------------
ATTEST MELLON EQUITY ASSOCIATES, LLP
/s/ Xxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxxxx
------------------------------------ ---------------------------------------
Title: President and Chief Executive Officer
-------------------------------------
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