EXHIBIT (d)(a)(6)
STATE STREET RESEARCH AURORA SMALL CAP VALUE PORTFOLIO
INVESTMENT MANAGEMENT AGREEMENT
AGREEMENT made this 1st day of May, 2001, by and between Metropolitan Series
Fund, Inc., a Maryland corporation (the "Fund"), and MetLife Advisers, LLC, a
Delaware limited liability company (the "Investment Manager");
W I T N E S S E T H:
WHEREAS, the Fund is engaged in business as a diversified open-end management
investment company and is registered as such under the Investment Company Act of
1940 (the "Investment Company Act");
WHEREAS, the Fund, a series type of investment company, issues separate classes
(or series) of stock, each of which represents a separate portfolio of
investments;
WHEREAS, the Fund is currently comprised of various portfolios, each of which
pursues its investment objectives through separate investment policies, and the
Fund may add or delete portfolios from time to time;
WHEREAS, the Investment Manager is engaged principally in the business of
rendering advisory services and is registered as an investment adviser under the
Investment Advisers Act of 1940; and
WHEREAS, the Fund desires to enter into a separate investment management
agreement with respect to the State Street Research Aurora Small Cap Value
Portfolio of the Fund with the Investment Manager;
NOW THEREFORE, in consideration of the premises and the covenants hereinafter
contained, the Fund and the Investment Manager hereby agree as follows:
ARTICLE 1.
Duties of the Investment Manager.
The Fund hereby employs the Investment Manager to act as the investment adviser
to and investment manager of the State Street Research Aurora Small Cap Value
Portfolio (the "Portfolio") and to manage the investment and reinvestment of the
assets of the Portfolio and to administer its affairs, subject to the
supervision of the Board of Directors of the Fund, for the period and on the
terms and conditions set forth in this Agreement. The Investment Manager hereby
accepts such employment and agrees during such period, at its own expense, to
render the services and to assume the obligations herein set forth for the
compensation provided for herein. The Investment Manager shall for all purposes
herein be deemed to be an independent contractor and shall, unless otherwise
provided or authorized, have no authority to act for or represent the Fund in
any way or otherwise be deemed an agent of the Fund other than in furtherance of
its duties and responsibilities as set forth in this Agreement.
(a) Investment Management Services. In acting as investment manager to
the Portfolio, the Investment Manager shall regularly provide the
Portfolio with such investment research, advice and management as the
Fund may from time to time consider necessary for the proper management
of the Portfolio and shall furnish continuously an investment program and
shall determine which securities shall be purchased, sold or exchanged
and what portion of the assets of the Portfolio shall be held in the
various securities or other assets, subject always to any restrictions of
the Fund's Articles of Incorporation and By-Laws, as amended or
supplemented from time to time, the provisions of applicable laws and
regulations including the Investment Company Act, and the statements
relating to the Portfolio's investment objectives, policies and
restrictions as the same are set forth in the prospectus of the Fund
then-currently effective under the Securities Act of 1933 (the
"Prospectus"). Should the Board of Directors of the Fund at any time,
however, make any definite determination as to investment policy and
notify the Investment Manager thereof, the Investment Manager shall be
bound by such determination for the period, if any, specified in such
notice or until similarly notified that such determination has been
revoked. The Investment Manager shall take, on behalf of the Fund, all
actions which it deems necessary to implement the investment policies of
the Portfolio, determined as provided above, and in particular to place
all orders for the purchase or sale of portfolio securities for the
Portfolio with brokers or dealers selected by the Investment Manager. In
connection with the selection of such brokers or dealers and the placing
of such orders, the Investment Manager is directed at all times to follow
the policies of the Fund as set forth in the Prospectus. Nothing herein
shall preclude the "bunching" of orders for the sale or purchase of
portfolio securities with the other Portfolios or with other accounts
managed by the Investment Manager or the Investment Manager's general
account and separate accounts. The Investment Manager shall not favor any
account over any other and any purchase or sale orders executed
contemporaneously shall be allocated in a manner it deems equitable among
the accounts involved and at a price which is approximately averaged.
(b) Administrative Services. In addition to the performance of investment
advisory services, the Investment Manager shall perform administrative
services in connection with the management of the Portfolio. In this
connection, the Investment Manager agrees (i) to assist in managing all
aspects of the Fund's operations relating to the Portfolio, including the
coordination of all matters relating to the functions of the custodian,
transfer agent, other shareholder service agents, accountants, attorneys
and other parties performing services or operational functions for the
Fund, (ii) to provide the Fund, at the Investment Manager's expense, with
services of persons competent to perform such professional,
administrative and clerical functions as are necessary in order to
provide effective administration of the Portfolio, including duties in
connection with shareholder relations, reports, redemption requests and
account adjustments and the maintenance of the books and records required
of the Fund, and (iii) to provide the Fund, at the Investment Manager's
expense, with adequate office space and related services necessary for
its operations as contemplated in this Agreement. In performing such
administrative services, the Investment Manager shall comply with all
provisions of the Fund's Articles of Incorporation and By-Laws, with all
laws and regulations to which the Fund may be subject and with all
directions of the Fund's Board of Directors.
The Investment Manager shall supply the Board of Directors and officers
of the Fund with all statistical information regarding investments which
is reasonably required by them and reasonably available to the Investment
Manager.
(c) Sub-Investment Manager. Notwithstanding any other provision of this
Agreement, the Fund and the Investment Manager may agree to the
employment of a Sub-Investment Manager to the Fund for the purpose of
providing investment management services with respect to the Portfolio,
provided that the compensation to be paid to such Sub-Investment Manager
shall be the sole responsibility of the Investment Manager and the duties
and responsibilities of the Sub-Investment Manager shall be as set forth
in a sub-investment management agreement among the Investment Manager,
the Sub-Investment Manager and the Fund on behalf of the Portfolio.
ARTICLE 2.
Allocation of Charges and Expenses.
(a) The Investment Manager. In addition to the compensation paid to any
Sub-Investment Manager as set forth in Article 1 above, the Investment
Manager shall pay the organization costs of the Fund relating to the
Portfolio. The Investment Manager also assumes expenses of the Fund
relating to maintaining the staff and personnel, and providing the
equipment, office space and facilities, necessary to perform its
obligations under this Agreement.
(b) The Fund. The Fund assumes and shall pay (or cause to be paid) all
other Fund expenses, including but not limited to the following expenses:
the fee referred to in Article 3 below; interest and any other costs
related to borrowings by the Fund attributable to the Portfolio; taxes
payable by the Fund and attributable to the Portfolio; brokerage costs
and other direct costs of effecting portfolio transactions (including any
costs directly related to the acquisition, disposition, lending or
borrowing of portfolio investments) on behalf of the Portfolio; the
compensation of the directors and officers of the Fund who are not
actively employed by the Investment Manager; custodian, registration and
transfer agent fees; fees of outside counsel to and of independent
auditors of the Fund selected by the Board of Directors; expenses of
printing and mailing to existing shareholders of registration statements,
prospectuses, reports, notices and proxy solicitation materials of the
Fund; all other expenses incidental to holding meetings of the Fund's
shareholders; insurance premiums for fidelity coverage and errors and
omissions insurance; and extraordinary or non-recurring expenses (such as
legal claims and liabilities and litigation costs and any indemnification
related thereto) attributable to the Portfolio. The Fund shall allocate
the appropriate portion of the foregoing expenses to the Portfolio.
All expenses of any activity which is primarily intended to result in the
sale of the Fund's shares, and certain other expenses as detailed in the
Fund's Distribution Agreement with Metropolitan Life Insurance Company,
are assumed by the distributor of the Fund's shares.
ARTICLE 3.
Compensation of the Investment Manager.
For the services rendered, the facilities furnished and expenses assumed by the
Investment Manager, the Fund shall pay to the Investment Manager at the end of
each calendar month a fee which shall accrue daily at the annual rate specified
by the schedule of fees in the Appendix to this Agreement. The average daily
value of the net assets of the Portfolio shall be determined and computed in
accordance with the description of the method of determination of net asset
value contained in the Prospectus.
ARTICLE 4.
Limitation of Liability of the Investment Manager.
(a) In the performance of advisory services as provided in Article 1(a), the
Investment Manager shall not be liable for any error of judgment or mistake of
law or for any loss suffered by the Fund in connection with any investment
policy or the purchase, sale or redemption of any securities on the
recommendation of the Investment Manager. Nothing herein contained shall be
construed to protect the Investment Manager against any liability to the Fund or
its shareholders to which the Investment Manager shall otherwise be subject by
reason of willful misfeasance, bad faith, gross negligence in the performance of
its duties on behalf of the Fund, reckless disregard of the Investment Manager's
obligations and duties under this Agreement or the violation of any applicable
law.
(b) In the performance of administrative services as provided in Article 1(b)
and which the Investment Manager is obligated to perform hereunder, the
Investment Manager shall be liable to the Fund or its shareholders for any
willful or negligent act or omission in the performance of such administrative
services.
ARTICLE 5.
Activities of the Investment Manager.
The services of the Investment Manager under this Agreement are not to be deemed
exclusive, and the Investment Manager shall be free to render similar services
to others so long as its services hereunder are not impaired thereby. It is
understood that directors, officers, employees and shareholders of the Fund are
or may become interested in the Investment Manager, as directors, officers,
employees or policyholders or otherwise and that directors, officers, employees
or policyholders of the Investment Manager are or may become similarly
interested in the Fund, and that the Investment Manager is or may become
interested in the Fund as shareholder or otherwise.
ARTICLE 6.
Duration and Termination of this Agreement.
This Agreement shall become effective as of the date first above written and
shall remain in force until May 16, 2002 and thereafter shall continue in
effect, but only so long as such continuance is specifically approved at least
annually by (i) the Board of Directors of the Fund,
or by the vote of a majority of the outstanding shares of the Portfolio, and
(ii) a majority of those directors who are not parties to this Agreement or
interested persons of any such party cast in person at a meeting called for the
purpose of voting on such approval.
This Agreement may be terminated with respect to the Portfolio at any time,
without the payment of any penalty, by the Board of Directors of the Fund, or by
vote of a majority of the outstanding shares of the Portfolio, on sixty days'
written notice to the Investment Manager, or by the Investment Manager on sixty
days' written notice to the Fund. This Agreement shall automatically terminate
in the event of its assignment.
ARTICLE 7.
Definitions.
The terms "assignment," "interested person," and "majority of the outstanding
shares," when used in this Agreement, shall have the respective meanings
specified under the Investment Company Act.
ARTICLE 8.
Amendments of this Agreement.
This Agreement may be amended by the parties only if such amendment is
specifically approved by (i) the Board of Directors of the Fund, to the extent
permitted by the Investment Company Act, or by the vote of a majority of the
outstanding shares of the Portfolio, and (ii) by the vote of a majority of those
directors of the Fund who are not parties to this Agreement or interested
persons of any such party cast in person at a meeting called for the purpose of
voting on such approval.
ARTICLE 9.
Governing Law.
The provisions of this Agreement shall be construed and interpreted in
accordance with the laws of the State of New York as at the time in effect and
the applicable provisions of the Investment Company Act. To the extent that the
applicable law of the State of New York, or any of the provisions herein,
conflict with the applicable provisions of the Investment Company Act, the
latter shall control.
METROPOLITAN SERIES FUND, INC.
By: /s/ Xxxxxxxxxxx X. Xxxxxxxx
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Xxxxxxxxxxx X. Xxxxxxxx, President
Attest: /s/ Xxxxx X. Xxxxxxx
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Xxxxx X. Xxxxxxx, Secretary
METLIFE ADVISERS, LLC
By: /s/ Xxxx X. Xxxxxxx, Xx.
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Xxxx X. Xxxxxxx, Xx., Senior Vice-President
Attest: /s/ Xxxxxx X. Xxxx
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Name:
Title:
Appendix
Metropolitan Series Fund Fee Schedule
State Street Research Aurora Small Cap Value Portfolio
1st $500 Million 85%
next $500 Million 80%
above $1 Billion 75%
of the average daily value of the net assets of the Portfolio.
