SUBCONTRACT FOR FUND ADMINISTRATIVE SERVICES
SUBCONTRACT FOR FUND ADMINISTRATIVE SERVICES
This Subcontract, dated as of June 1, 2024, is between Xxxxxx Investment Management, LLC, a Delaware limited liability company (the “Investment Manager”), and Franklin Xxxxxxxxx Services, LLC (the “Administrator”).
WHEREAS, the Investment Manager and each trust identified on Schedule A to this Subcontract (each, a “Trust”) have entered into management contracts (each, a “Management Contract”); and
WHEREAS, pursuant to Section 1(f) of each Management Contract, a majority of the trustees of each Trust, including a majority of the trustees who are not “interested persons” of each Trust have approved the delegation of certain administrative and other services by the Investment Manager to the Administrator;
NOW THEREFORE, in consideration of the mutual agreements herein made, the parties hereby agree as follows:
Section 1. Prime Contract. This Subcontract is made in order to assist the Investment Manager in fulfilling certain of the Investment Manager’s obligations under each of the Management Contracts.
Section 2. Appointment. The Investment Manager hereby appoints the Administrator to provide or procure, as applicable, for each Trust or, in the case of a Trust that has divided its shares into separate series, for each series of the Trust identified on Schedule A to this Subcontract (each, a “Fund”),1 the administrative and other services described in Section 3 of this Subcontract for the period and on the terms set forth in this Subcontract, as may be supplemented from time to time. The Administrator accepts such appointment and agrees during such period to render or procure, as applicable, the services herein set forth for the compensation provided in Section 6 below.
Section 3. Services. The Administrator agrees, during the term of this Subcontract, to provide or procure, as applicable, at its own expense (unless otherwise agreed to by the parties), the following services to each Fund to the extent that any such services are not otherwise provided by the Investment Manager (including any subadviser) or any other service provider to the Fund:
(a) providing office space, telephone, office equipment and supplies for the Fund necessary or appropriate for the effective administration of the Fund as contemplated in this Subcontract;
(b) providing trading desk facilities for the Fund, unless these facilities are provided by the Investment Manager or any subadviser to the Fund;
1 Each reference to a Fund in this Subcontract shall be deemed to reference any Trust that has not divided its shares into separate series, as appropriate in the particular context.
(c) authorizing expenditures and approving bills for payment on behalf of the Fund;
(d) supervising preparation of periodic reports to Fund shareholders, notices of dividends, capital gains distributions and tax credits; and attending to routine correspondence and other communications with individual Fund shareholders when asked to do so by the Fund’s shareholder servicing agent or other agents of the Fund;
(e) coordinating and supervising the daily pricing and valuation of the Fund’s investment portfolio, including collecting quotations from pricing services engaged by the Fund, in accordance with the policies and procedures adopted from time to time by the Fund;
(f) providing fund accounting services, including preparing and supervising publication of daily net asset value quotations and other financial data;
(g) monitoring and coordinating, where appropriate, relationships with organizations serving the Fund, including custodians, public accounting firms, law firms, printers, pricing services and other unaffiliated service providers;
(h) supervising the Fund’s compliance with recordkeeping requirements under the federal securities laws, including the Investment Company Act of 1940, as amended (“1940 Act”), and the rules and regulations thereunder, supervising compliance with recordkeeping requirements imposed by state or foreign laws or regulations, and maintaining books and records for the Fund;
(i) preparing and filing of domestic and foreign tax reports, including the Fund’s income tax returns, and monitoring the Fund’s compliance with subchapter M of the Internal Revenue Code of 1986, as amended, and all other applicable tax laws and regulations;
(j) establishing, maintaining and monitoring the Fund’s compliance program with respect to: the 1940 Act and other federal securities laws, and rules and regulations thereunder; state and foreign laws and regulations applicable to the operation of investment companies; the Fund’s investment goals, policies and restrictions; and the Code of Ethics and other policies adopted by the Trust’s Board of Trustees (“Board”) or by the Investment Manager or any subadviser to the Fund and applicable to the Fund;
(k) preparing regulatory reports, including without limitation, N-SARs, N-CSRs, N-PXs, N-PORTs, proxy statements, information statements, and U.S. and foreign ownership reports;
(l) preparing and arranging for the filing of such registration statements and other documents with the U.S. Securities and Exchange Commission and other federal, state and foreign or other regulatory authorities as may be required to (i) register or otherwise qualify the shares of the Fund for sale and maintain any such registration or qualification; (ii) amend or otherwise update the Fund’s disclosures as required by applicable Federal securities laws and the rules and regulations of any applicable regulatory agency or stock exchange; (iii) qualify the Fund to do business; and (iv) maintain the Fund’s corporate existence, and as otherwise required by applicable law;
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(m) maintaining a review and certification program and internal controls and procedures in accordance with the relevant provisions of the Sarbanes Oxley Act of 2002 as applicable to registered investment companies; and
(n) providing executive, clerical, secretarial and other personnel needed to carry out the above responsibilities.
Nothing in this Subcontract shall obligate the Administrator to pay for the services of third parties, including attorneys, auditors, printers, pricing services or others, engaged directly by the Fund to perform services on behalf of the Fund.
Section 4. Delegation of Services. The Administrator may, at its expense, delegate to one or more entities some or all of the services for each Fund for which the Administrator is responsible under this Subcontract. The Administrator will be responsible for the compensation, if any, of any such entities for such services to the Fund, unless otherwise agreed to by the parties or with the Fund. Notwithstanding any delegation pursuant to this paragraph, the Administrator will continue to have responsibility and liability for all such services provided to the Fund under this Subcontract.
Section 5. Performance of Services in Accordance with Regulatory Requirements; Furnishing of Books and Records. In performing the services set forth in Section 3 of this Subcontract, the Administrator:
(a) shall conform with the 1940 Act and all rules and regulations thereunder, with all other applicable federal, state and foreign laws and regulations, with any applicable procedures adopted by each Trust’s Board, and with the provisions of the Trust’s Registration Statement filed with the Securities and Exchange Commission, as supplemented or amended from time to time;
(b) will make available to each Fund, promptly upon request, any of the Fund’s books and records as are maintained under this Subcontract, and will furnish to regulatory authorities having the requisite authority any such books and records and any information or reports in connection with the Administrator’s services under this Subcontract that may be requested in order to ascertain whether the operations of the Fund are being conducted in a manner consistent with applicable laws and regulations.
Section 6. Fees. The Investment Manager agrees to pay to the Administrator as compensation for such services a monthly fee equal on an annual basis to:
| (a) | With respect to the Funds on Schedule A that are exchange-traded funds (the “Xxxxxx ETFs”), 105% of the internal costs incurred by the Administrator for providing the services pursuant to this Agreement to the Xxxxxx ETFs; in addition, with respect to such Funds, the Investment Manager will also reimburse the Administrator for fees paid by the Administrator to any third-party service provider for sub-administration and other services for the Funds contemplated by this Agreement; |
| (b) | With respect to each of the Funds other than the Xxxxxx ETFs, an amount equal to an annual rate of: 0.150% of such Fund’s average daily net assets up to and including $200 |
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million; 0.135% of such Fund’s average daily net assets over $200 million, up to and including $700 million; 0.100% of such Fund’s average daily net assets over $700 million, up to and including $1.2 billion; and 0.075% of such Fund’s average daily net assets in excess of $1.2 billion.
From time to time, the Administrator may waive all or a portion of its fees provided for hereunder. The Administrator shall be contractually bound hereunder by the terms of any publicly announced waiver of its fee, or any limitation of a Fund’s expenses, as if such waiver or limitation were fully set forth herein.
Section 7. Term. Unless otherwise terminated, this Subcontract shall remain in full force and effect for a Fund so long as the Management Contract for the Fund remains in effect.
Section 8. Termination. This Subcontract will terminate as to a Fund immediately upon the termination of the Management Contract; applicable to the Fund and, in addition, may be terminated by either party at any time on sixty (60) days’ written notice without payment of penalty.
Section 9. Standard of Care. In the absence of willful misfeasance, bad faith or gross negligence on the part of the Administrator, or of reckless disregard of its duties and obligations hereunder, the Administrator shall not be subject to any liability for any act or omission in the course of, or connected with, rendering services hereunder.
Section 10. Severability. If any provision of this Subcontract shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of this Subcontract shall not be affected thereby.
Section 11. Governing Law. This Subcontract shall be governed by and construed in accordance with the laws of the State of California.
[Signature page follows.]
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IN WITNESS WHEREOF, the parties hereto have caused this Subcontract to be duly executed by their
duly authorized officers.
XXXXXX INVESTMENT MANAGEMENT, LLC
By: /s/ Xxxxxx X. Xxxxxxxx
Name: Xxxxxx X. Xxxxxxxx
Title: Chief Legal Officer
FRANKLIN XXXXXXXXX SERVICES, LLC
By: /s/ Xxxxxxx Xxxxxx
Name: Xxxxxxx Xxxxxx
Title: President
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Schedule A
Xxxxxx California Tax Exempt Income Fund
Xxxxxx Convertible Securities Fund
Xxxxxx Diversified Income Trust
Xxxxxx Asset Allocation Funds
-Xxxxxx Dynamic Asset Allocation Balanced Fund
-Xxxxxx Dynamic Asset Allocation Conservative Fund
-Xxxxxx Dynamic Asset Allocation Growth Fund
-Xxxxxx Multi-Asset Income Fund
Xxxxxx ETF Trust
-Xxxxxx BDC Income ETF
-Xxxxxx BioRevolution ETF
-Xxxxxx Emerging Markets ex-China ETF
-Xxxxxx ESG Core Bond ETF
-Xxxxxx ESG High Yield ETF
-Xxxxxx ESG Ultra Short ETF
-Xxxxxx Focused Large Cap Growth ETF
-Xxxxxx Focused Large Cap Value ETF
-Xxxxxx PanAgora ESG Emerging Markets Equity ETF
-Xxxxxx PanAgora ESG International Equity ETF
-Xxxxxx Sustainable Future ETF
-Xxxxxx Sustainable Leaders ETF
Xxxxxx Funds Trust
-Xxxxxx Core Bond Fund
-Xxxxxx Core Equity Fund
-Xxxxxx Dynamic Asset Allocation Equity Fund
-Xxxxxx Emerging Markets Equity Fund
-Xxxxxx Floating Rate Income Fund
-Xxxxxx Focused Equity Fund
-Xxxxxx Global Technology Fund
-Xxxxxx Intermediate-Term Municipal Income Fund
-Xxxxxx International Value Fund
-Xxxxxx Mortgage Opportunities Fund
-Xxxxxx Short Duration Bond Fund
-Xxxxxx Short Term Investment Fund
-Xxxxxx Short-Term Municipal Income Fund
-Xxxxxx Small Cap Growth Fund
-Xxxxxx Ultra Short Duration Income Fund
-Xxxxxx Ultra Short MAC Series
Xxxxxx Focused International Equity Fund
Xxxxxx Xxxxxx Balanced Fund
Xxxxxx Global Health Care Fund
Xxxxxx Global Income Trust
Xxxxxx High Yield Fund
Xxxxxx Income Fund
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Xxxxxx International Equity Fund
Xxxxxx Investment Funds
-Xxxxxx Government Money Market Fund
-Xxxxxx International Capital Opportunities Fund
-Xxxxxx Large Cap Growth Fund
-Xxxxxx Research Fund
-Xxxxxx Small Cap Value Fund
-Xxxxxx Sustainable Future Fund
Xxxxxx Large Cap Value Fund
Xxxxxx Managed Municipal Income Trust
Xxxxxx Massachusetts Tax Exempt Income Fund
Xxxxxx Master Intermediate Income Trust
Xxxxxx Minnesota Tax Exempt Income Fund
Xxxxxx Money Market Fund
Xxxxxx Mortgage Securities Fund
Xxxxxx Municipal Opportunities Trust
Xxxxxx New Jersey Tax Exempt Income Fund
Xxxxxx New York Tax Exempt Income Fund
Xxxxxx Ohio Tax Exempt Income Fund
Xxxxxx Pennsylvania Tax Exempt Income Fund
Xxxxxx Premier Income Trust
Xxxxxx Sustainable Leaders Fund
Xxxxxx Target Date Funds
-Xxxxxx Retirement Advantage Maturity Fund
-Xxxxxx Retirement Advantage 2065 Fund
-Xxxxxx Retirement Advantage 2060 Fund
-Xxxxxx Retirement Advantage 2055 Fund
-Xxxxxx Retirement Advantage 2050 Fund
-Xxxxxx Retirement Advantage 2045 Fund
-Xxxxxx Retirement Advantage 2040 Fund
-Xxxxxx Retirement Advantage 2035 Fund
-Xxxxxx Retirement Advantage 2030 Fund
-Xxxxxx Retirement Advantage 2025 Fund
-Xxxxxx Sustainable Retirement Maturity Fund
-Xxxxxx Sustainable Retirement 2065 Fund
-Xxxxxx Sustainable Retirement 2060 Fund
-Xxxxxx Sustainable Retirement 2055 Fund
-Xxxxxx Sustainable Retirement 2050 Fund
-Xxxxxx Sustainable Retirement 2045 Fund
-Xxxxxx Sustainable Retirement 2040 Fund
-Xxxxxx Sustainable Retirement 2035 Fund
-Xxxxxx Sustainable Retirement 2030 Fund
-Xxxxxx Sustainable Retirement 2025 Fund
Xxxxxx Tax Exempt Income Fund
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Xxxxxx Tax-Free Income Trust
-Xxxxxx Strategic Intermediate Municipal Fund
-Xxxxxx Tax-Free High Yield Fund
Xxxxxx Variable Trust
-Xxxxxx VT Core Equity Fund
-Xxxxxx VT Diversified Income Fund
-Xxxxxx VT Emerging Markets Equity Fund
-Xxxxxx VT Focused International Equity Fund
-Xxxxxx VT Xxxxxx Xxxxxx Balanced Fund
-Xxxxxx VT Global Asset Allocation Fund
-Xxxxxx VT Global Health Care Fund
-Xxxxxx VT Government Money Market Fund
-Xxxxxx VT High Yield Fund
-Xxxxxx VT Income Fund
-Xxxxxx VT International Equity Fund
-Xxxxxx VT International Value Fund
-Xxxxxx VT Large Cap Growth Fund
-Xxxxxx VT Large Cap Value Fund
-Xxxxxx VT Mortgage Securities Fund
-Xxxxxx VT Research Fund
-Xxxxxx VT Small Cap Growth Fund
-Xxxxxx VT Small Cap Value Fund
-Xxxxxx VT Sustainable Future Fund
-Xxxxxx VT Sustainable Leaders Fund
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