EXHIBIT g(3)
FOREIGN ASSETS
DELEGATION AGREEMENT
This FOREIGN ASSETS DELEGATION AGREEMENT (the "Agreement") is made
this 29th day of June, 2001 by and between A I M ADVISORS, INC., a Delaware
corporation ("AIM") and each registered investment company (the "Investment
Companies") and its respective portfolios as listed on Schedule A attached
hereto (the "Funds"), as the same may be amended from time to time.
WITNESSETH:
WHEREAS, AIM has agreed to accept responsibility for the selection of
foreign countries in which the Funds may invest; and
WHEREAS, AIM has agreed to accept responsibility for selecting eligible
foreign securities depositories in such countries;
NOW THEREFORE, AIM hereby agrees as follows:
1. DEFINITIONS.
A. "ELIGIBLE FOREIGN SECURITIES DEPOSITORY" means a foreign
Securities Depository that meets the eligibility requirements
of Paragraph 5 hereof.
B. "FOREIGN ASSETS" means any of a Fund's investments (including
foreign currencies) for which the primary market is outside
the United States, currency contracts that are settled outside
the United States, and such cash and cash equivalents as are
reasonably necessary to effect the Fund's transactions in such
investments.
C. "PREVAILING COUNTRY RISKS" means all factors reasonably
related to the systemic risk of holding Foreign Assets in a
particular country, including but not limited to, such
country's political environment; economic and financial
infrastructure (including any Eligible Foreign Securities
Depositories operating in the country); prevailing or
developing custody and settlement practices; laws and
regulations applicable to the safekeeping and recovery of
Foreign Assets held in custody in that country; and factors
compromising "prevailing country risk", including the effects
of foreign law on the safekeeping of Fund assets, the
likelihood of expropriation, nationalization, freezing or
confiscation of the Fund's assets and any reasonably
foreseeable difficulties in repatriating the Fund's assets.
D. "PRIMARY CUSTODIAN" means State Street Bank and Trust Company.
E. "SECURITIES DEPOSITORY" means a system for the central
handling of securities where all securities of any particular
class or series of any issuer deposited within the system are
treated as fungible and may be transferred or pledged by
bookkeeping entry without physical delivery of the securities.
A Securities Depository includes an Eligible Foreign
Securities Depository.
2. FOREIGN COUNTRY SELECTION. AIM shall select the foreign countries in
which a Fund invests. AIM may determine that an issuer is located in a
particular country based on various factors, including the following;
(i) the issuer is organized under the laws of and maintains a principal
office in that country; (ii) the issuer derives 50% or more of its
total revenues from business in that country; (iii) the primary market
for the issuer's securities is in that country. In addition, in
determining whether to maintain assets of Fund in a foreign country,
AIM shall consider Prevailing Country Risks. AIM may rely on
information provided by computerized information services, such as
Bloomberg terminals, in making the foregoing determinations. AIM may
also rely on information and opinions provided by the Foreign Custody
Manager in making such determinations. AIM may add or delete foreign
countries to or from the list of approved foreign countries from time
to time, as determined by the AIM employees who are portfolio managers
of the Funds.
3. ELIGIBLE FOREIGN SECURITIES DEPOSITORIES SELECTION. AIM shall select
Eligible Foreign Securities Depositories for the placement and
maintenance of Foreign Assets. AIM shall not make any such selection
unless and until is has determined that a Fund's custody arrangements
provide reasonable safeguards against the custody risks associated with
maintaining assets with the Eligible Foreign Securities Depository,
including:
A. Risk Analysis and Monitoring.
(1) The Fund and AIM have received from the Primary
Custodian (or its agent) an analysis of the custody
risks associated with maintaining assets with the
Eligible Foreign Securities Depository; and
(2) The contract between the Fund and the Primary
Custodian requires the Primary Custodian (or its
agent) to monitor the custody risks associated with
maintaining assets with the Eligible Foreign
Securities Depository on a continuing basis, and
promptly notify the Fund and AIM of any material
change in these risks.
B. Exercise of Care. The contract between the Fund and the
Primary Custodian states that the Primary Custodian will agree
to exercise reasonable care, prudence, and diligence in
performing the requirements of Paragraphs 3(A)(1) and (2)
above, or adhere to a higher standard of care.
4. WITHDRAWAL FROM FOREIGN SECURITIES DEPOSITORY. If a custody arrangement
with a foreign Securities Depository no longer meets the eligibility
requirements set forth Paragraph 5 below, AIM shall withdraw the Fund's
Foreign Assets from the Securities Depository as soon as reasonably
practicable.
5. DETERMINATION OF ELIGIBILITY. AIM shall determine a foreign Securities
Depository to be an Eligible Foreign Securities Depository if it:
A. Acts as or operates a system for the central handling of
securities or equivalent book-entries in the country where it
is incorporated, or a transnational system for the central
handling of securities or equivalent book-entries;
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B. Is regulated by a foreign financial regulatory authority as
defined under section 2(a)(50) of the Investment Company Act
of 1940, as amended (the 1940 Act);
C. Holds assets for the custodian that participates in the system
on behalf of the Fund under safekeeping conditions no less
favorable than the conditions that apply to other
participants;
D. Maintains records that identify the assets of each participant
and segregates the system's own assets from the assets of
participants;
E. Provides periodic reports to its participants with respect to
its safekeeping of assets, including notices of transfers to
or from any participant's account; and
F. Is subject to periodic examination by regulatory authorities
or independent accountants.
6. REPORTS AND OTHER INFORMATION.
A. QUARTERLY REPORTS. AIM will submit to the Boards of
Directors/Trustees a quarterly report listing all newly
approved countries and all countries in which a Fund invested
for the first time during the preceding quarter. Such report
shall include a revised Appendix 1 to the Foreign Custody and
Country Selection Procedures, if applicable, listing the
approved countries. AIM will submit to the Boards of
Directors/Trustees a quarterly report indicating changes to
Eligible Foreign Securities Depositories to the extent such
report is not provided by the Primary Custodian.
B. OTHER REPORTS. AIM will notify the Boards of
Directors/Trustees in writing of any material change in the
Eligible Foreign Securities Depositories for a Fund that has
not been reported by the Primary Custodian promptly after the
occurrence of the material change.
7. SUPERSEDES PRIOR AGREEMENT. This Agreement supersedes and replaces the
Foreign Country Selection and Mandatory Securities Depository
Responsibilities Delegation Agreement dated September 9, 1998, as
amended.
8. LIABILITY OF AIM AND THE FUNDS. In the absence of willful misfeasance,
bad faith, gross negligence or reckless disregard of obligations or
duties hereunder on the part of AIM or any of its officers, directors
or employees, AIM shall not be subject to liability to the Funds or to
any shareholder of the Funds for any act or omission in the course of,
or connected with, rendering services hereunder or for any losses that
may be sustained in connection with the responsibilities delegated
hereunder. Any liability of AIM to one Fund shall not automatically
impart liability on the part of AIM to any other Fund. No Fund shall be
liable for the obligations of any other Fund.
9. DELEGATION TO SUB-ADVISORS. AIM may delegate its duties under this
Agreement to the sub-advisors for certain Funds for which AIM serves as
investment adviser. Such sub-advisors shall have the same obligations
and shall be subject to the same standard of care as AIM is under this
Agreement.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers, as of the day and year first above
written.
On behalf of itself and on behalf of its Funds listed on Schedule A
hereto, as such Schedule may be amended from time to time:
AIM ADVISOR FUNDS
AIM EQUITY FUNDS
AIM FLOATING RATE FUND
AIM FUNDS GROUP
AIM GROWTH SERIES
AIM INTERNATIONAL FUNDS, INC.
AIM INVESTMENT FUNDS
AIM INVESTMENT SECURITIES FUNDS
AIM SERIES TRUST
AIM SPECIAL OPPORTUNITIES FUNDS
AIM SUMMIT FUND
AIM VARIABLE INSURANCE FUNDS
GLOBAL INVESTMENT PORTFOLIO
Attest: /s/ XXXXXX X. XXXX By: /s/ XXXXXX X. XXXXXX
--------------------------- -------------------------
Assistant Secretary Name: Xxxxxx X. Xxxxxx
Title: President
A I M ADVISORS, INC.
Attest: /s/ XXXXXX X. XXXX By: /s/ XXXXXX X. XXXXXX
--------------------------- -------------------------
Assistant Secretary Name: Xxxxxx X. Xxxxxx
Title: President
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SCHEDULE A
TO THE
FOREIGN ASSETS DELEGATION AGREEMENT
AIM ADVISOR FUNDS AIM INTERNATIONAL FUNDS, INC. AIM SPECIAL OPPORTUNITIES FUNDS
AIM Advisor Flex Fund AIM Asian Growth Fund AIM Large Cap Opportunities
AIM Advisor International Value AIM European Development Fund
Fund Fund AIM Mid Cap Opportunities Fund
AIM Advisor Real Estate Fund AIM International Equity Fund AIM Small Cap Opportunities
AIM Global Aggressive Growth Fund
AIM EQUITY FUNDS Fund
AIM Aggressive Growth Fund AIM Global Growth Fund AIM SUMMIT FUND
AIM Blue Chip Fund AIM Global Income Fund
AIM Capital Development Fund AIM VARIABLE INSURANCE FUNDS
AIM Charter Fund AIM INVESTMENT FUNDS AIM V.I. Aggressive Growth
AIM Constellation Fund AIM Developing Markets Fund Fund
AIM Dent Demographic Trends AIM Global Consumer Products AIM V.I. Balanced Fund
Fund and Services Fund AIM V.I. Blue Chip Fund
AIM Emerging Growth Fund AIM Global Financial Services AIM V.I. Capital Appreciation
AIM Large Cap Basic Value Fund Fund Fund
AIM Large Cap Growth Fund AIM Global Health Care Fund AIM V.I. Capital Development
AIM Mid Cap Growth Fund AIM Global Infrastructure Fund Fund
AIM Xxxxxxxxxx Fund AIM Global Resources Fund AIM V.I. Dent Demographic
AIM Global Telecommunications Trends Fund
AIM FLOATING RATE FUND and Technology Fund AIM V.I. Diversified Income Fund
AIM Latin American Growth Fund AIM V.I. Global Utilities Fund
AIM FUNDS GROUP AIM Strategic Income Fund AIM V.I. Government Securities
AIM Balanced Fund Fund
AIM European Small Company AIM INVESTMENT SECURITIES FUNDS AIM V.I. Growth Fund
Fund AIM High Yield Fund AIM V.I. Growth and Income
AIM Global Utilities Fund AIM High Yield Fund II Fund
AIM International Emerging Growth AIM Income Fund AIM V.I. High Yield Fund
Fund AIM V.I. International Equity
AIM New Technology Fund AIM SERIES TRUST Fund
AIM Select Growth Fund AIM Global Trends Fund AIM V.I. New Technology Fund
AIM Small Cap Equity Fund AIM V.I. Value Fund
AIM Value Fund
AIM Value II Fund GLOBAL INVESTMENT PORTFOLIO
AIM Worldwide Spectrum Fund Global Consumer Products and
Services Portfolio
AIM GROWTH SERIES Global Resources Portfolio
AIM Basic Value Fund
AIM Euroland Growth Fund
AIM Japan Growth Fund
AIM Mid Cap Equity Fund
AIM Small Cap Growth Fund
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