EXHIBIT (h)(8)
AMENDED
EXPENSE LIMITATION AGREEMENT
PIMCO Variable Insurance Trust
000 Xxxxxxx Xxxxxx Xxxxx
Xxxxxxx Xxxxx, Xxxxxxxxxx 00000
February 5, 1999
Pacific Investment Management Company
000 Xxxxxxx Xxxxxx Xxxxx
Xxxxxxx Xxxxx, Xxxxxxxxxx 00000
Dear Sirs:
This will confirm the agreement between the undersigned (the "Trust") and
Pacific Investment Management Company (the "Administrator") as follows:
1. The Trust is an open-end investment company which currently has
seventeen separate investment portfolios, all of which are subject to this
agreement: the Money Market Portfolio; the Short-Term Bond Portfolio; the Low
Duration Bond Portfolio; the Real Return Bond Portfolio; the Total Return Bond
Portfolio; the Total Return Bond Portfolio II; the High Yield Bond Portfolio;
the Long-Term U.S. Government Portfolio; the Global Bond Portfolio; the Foreign
Bond Portfolio; the Emerging Markets Bond Portfolio; the Strategic Balanced
Portfolio; the StocksPLUS Growth and Income Portfolio; the Equity Income
Portfolio; the Capital Appreciation Portfolio; the Mid-Cap Growth Portfolio and
the Small-Cap Growth Portfolio (each a "Portfolio"). Additional investment
portfolios may be established in the future. This Agreement shall pertain to
the Portfolios and to such additional investment portfolios as shall be
established in the future.
2. Pursuant to an Administration Agreement between the Trust and the
Administrator, the Trust has retained the Administrator to provide the Trust
with administrative and other services.
3. Each Portfolio shall be subject to a limit on operating expenses (the
"Operating Expense Limit") in any year, which shall equal the total portfolio
operating expenses specified for that Portfolio in the table identifying the
Portfolio's annual portfolio operating expenses in the Portfolio's then-current
prospectus, plus 0.49 basis points.
4. To the extent that the total portfolio operating expenses incurred by a
Portfolio in any fiscal year exceed the Operating Expense Limit due to the
payment or accrual of organizational expenses attributable to the Portfolio
and/or payment of the Portfolio's pro rata share of the Trust's Trustees' fees,
that portion of such operating expenses that cause the total portfolio operating
expenses to exceed the Operating Expense Limit (the "Excess Amount") shall be
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waived, reduced or, if previously paid, reimbursed by the Administrator as
provided in paragraph 5.
5. Each month the total portfolio operating expenses for each Portfolio
shall be annualized as of the last day of the month. If the annualized total
portfolio operating expenses for any month of a Portfolio exceed the Operating
Expense Limit of such Portfolio, the Administrator shall waive or reduce its fee
due and payable pursuant to the Administration Agreement for such month, or
reimburse the Portfolio, by the lesser of (i) an amount sufficient to reduce the
Portfolio's annualized total portfolio operating expenses to the Operating
Expense Limit or (ii) the sum of the organizational expenses attributable to, or
amortizable by, the Portfolio for that month plus the Portfolio's pro rata
portion of the Trust's Trustees' fees for that month.
6. If necessary, on or before the last day of the first month of each
fiscal year, an adjustment payment shall be made by the appropriate party in
order that the amount of the administrative fees waived or reduced with respect
to the previous fiscal year shall equal the Excess Amount.
7. If in any month during which the Administration Agreement is in effect,
the estimated annualized total portfolio operating expenses of a Portfolio for
that month are less than the Operating Expense Limit, the Administrator shall be
entitled to reimbursement by such Portfolio of any administrative fees waived or
reduced pursuant to this Agreement (the "Reimbursement Amount") during the
previous thirty-six (36) months, to the extent that the Portfolio's annualized
total portfolio operating expenses plus the amount so reimbursed does not
exceed, for such month, the Operating Expense Limit, provided that such amount
paid to the Administrator will in no event exceed the total Reimbursement Amount
and will not include any amounts previously reimbursed.
8. This Agreement shall become effective on April 30, 1999, shall have an
initial term through December 31, 1999, and shall apply for each fiscal year
thereafter so long as it is in effect. Thereafter, this Agreement shall
automatically renew for one-year terms unless the Administrator provides written
notice to the Trust at the above address of the termination of this Agreement,
which notice shall be received by the Trust at least 30 days prior to the end of
the then-current term. In addition, this Agreement shall terminate upon
termination of the Administration Agreement, or it may be terminated by the
Trust, without payment of any penalty, upon ninety (90) days' prior written
notice to the Administrator at its principal place of business.
9. Nothing herein contained shall be deemed to require the Trust or the
Portfolios to take any action contrary to the Trust's Trust Instrument or By-
Laws, or any applicable statutory or regulatory requirement to which it is
subject or by which it is bound, or to relieve or deprive the Trust's Board of
Trustees of its responsibility for and control of the conduct of the affairs of
the Trust or the Portfolios.
10. Any question of interpretation of any term or provision of this
Agreement, including but not limited to the administrative fee, the computations
of net asset values, and the allocation of expenses, having a counterpart in or
otherwise derived from the terms and provisions of the Administration Agreement
or the Investment Company Act of 1940 (the "1940 Act"), shall have
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the same meaning as and be resolved by reference to such Administration
Agreement or the 0000 Xxx.
11. If any one or more of the provisions of this Agreement shall be held
to be invalid, illegal or unenforceable, the validity, legality or
enforceability of the remaining provisions shall not be affected thereby.
12. It is expressly agreed that the obligations of the Trust hereunder
shall not be binding upon any of the Trustees, shareholders, nominees, officers,
agents or employees of the Trust personally, but shall bind only the trust
property of the Trust relating to each Portfolio, individually and not jointly.
This Agreement has been signed and delivered by an officer of the Trust, acting
as such, and such execution and delivery by such officer shall not be deemed to
have been made by any Trustee or officer individually or to impose any liability
on any of them personally, but shall bind only the trust property of the Trust
relating to each Portfolio, individually and not jointly, as provided in the
Trust's Trust Instrument dated October 3, 1997, as amended from time to time.
If the foregoing correctly sets forth the agreement between the Trust and
the Administrator, please so indicate by signing and returning to the Trust the
enclosed copy hereof.
Very truly yours,
PIMCO VARIABLE INSURANCE TRUST
By: __________________________________
Title: Chairman
ACCEPTED:
PACIFIC INVESTMENT MANAGEMENT COMPANY
By: _________________________________
Title: Managing Director
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