Exhibit (d)
ADVISORY AGREEMENT
AGREEMENT made as of February 10, 1999 between PROVIDENT INSTITUTIONAL
FUNDS, a Delaware business trust (the "Trust"), and BLACKROCK INSTITUTIONAL
MANAGEMENT CORPORATION, a Delaware corporation (the "Investment Adviser"),
registered as an investment adviser under the Investment Advisers Act of 1940.
WHEREAS, the Trust is registered as an open-end management investment
company under the Investment Company Act of 1940 (the "1940 Act") and presently
offers shares representing interests in ten separate investment portfolios; and
WHEREAS, the Trust desires to retain the Investment Adviser to render
investment advisory services to the Trust, and the Investment Adviser is willing
to so render such services;
NOW, THEREFORE, this Agreement
WITNESSETH:
In consideration of the premises and mutual covenants herein contained,
it is agreed between the parties hereto as follows:
1. Appointment.
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(a) The Trust hereby appoints the Investment Adviser to act as
investment adviser to the following portfolios of the Trust: TempFund, TempCash,
FedFund, T-Fund, Federal Trust Fund, Treasury Trust Fund, MuniFund, MuniCash,
California Money Fund and New York Money Fund (each a "Portfolio," and
collectively, the "Portfolios") for the period and on the terms set forth in
this Agreement. The Investment Adviser accepts such appointment and agrees to
render the services herein set forth, for the compensation herein provided.
(b) In the event that the Trust establishes one or more portfolios
other than the Portfolios with respect to which it desires to retain the
Investment Adviser to act as investment adviser hereunder, the Trust shall
notify the Investment Adviser in writing. If the Investment Adviser is willing
to render such services it shall notify the Trust in writing whereupon, subject
to such shareholder approval as may be required pursuant to Paragraph 9 hereof,
such portfolio shall become a Portfolio hereunder and the compensation payable
by such new Portfolio to the Investment Adviser will be as agreed in writing at
the time.
2. Management. Subject to the supervision of the Board of Trustees of the
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Trust, the Investment Adviser will provide a continuous investment program for
each of the Portfolios, including investment research and management with
respect to all securities, investments, cash and cash equivalents in the
Portfolios. The Investment Adviser will determine from time to time what
securities and other investments will be purchased, retained or sold by the
Trust for each of its Portfolios. The Investment Adviser will provide the
services rendered by it hereunder in accordance with the investment objective
and policies of each of the Portfolios as stated in their respective
Prospectuses. The Investment Adviser further agrees that it:
(a) will conform with all applicable Rules and Regulations of the
Securities and Exchange Commission (herein called the "Rules"), and will in
addition conduct its activities under this Agreement in accordance with all
other applicable laws;
(b) will maintain all books and records with respect to the securities
transactions of the Portfolios, keep their respective books of account and will
render to the Trust's Board of Trustees such periodic and special reports as the
Board may request; and
(c) will treat confidentiality and as proprietary information of the
Trust all records and other information relative to the Trust and 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 shall not be unreasonably withheld and may not be withheld where the
Investment 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.
3. Services Not Exclusive. The investment management services rendered by
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the Investment Adviser hereunder are not to be deemed exclusive, and the
Investment Adviser shall be free to render similar services to others so long as
its services under this Agreement are not impaired thereby.
4. Sub-Adviser. It is understood that the Investment Adviser may, if it
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deems it desirable, from time to time employ such person or persons as the
Investment Adviser believes to be capable of assisting in the performance of its
obligations under this Agreement (each a "Sub-Adviser") and to terminate the
services of any such person; provided, however, that the compensation of such
person or persons shall be paid by the Investment Adviser and that the
Investment Adviser shall be as fully responsible to the Trust for the acts and
omissions of any
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such person as it is for its own acts and omissions; and provided further, that
the retention of any Sub-Adviser shall be approved by the trustees and
shareholders to the extent required by the 1940 Act.
5. Books and Records. In compliance with the requirements of Rule 31a-3
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of the Rules, the Investment Adviser hereby agrees that all records which it
maintains for each Portfolio are the property of the Trust and further agrees to
surrender promptly to the Trust any of such records upon the Trust's request.
The Investment Adviser further agrees to preserve for the periods prescribed by
Rule 31a-2 the records required to be maintained by Rule 31a-1 of the Rules.
6. Expenses. During the term of this Agreement, the Investment Adviser
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will pay all expenses incurred by it in connection with its activities under
this Agreement other than the cost of (including brokerage commissions, if any)
securities purchased for the Portfolios.
In addition, if the expenses borne by any Portfolio in any fiscal year
exceed the applicable expense limitations imposed by the securities regulations
of any state in which the Shares are registered or qualified for sale to the
public, the Investment Adviser shall reimburse such Portfolio for one-half of
any excess up to the amount of the fees payable by the particular Portfolio to
it during such fiscal year pursuant to Paragraph 7 hereof; provided, however,
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that notwithstanding the foregoing, the Investment Adviser shall reimburse such
Portfolio for one-half of such excess expenses regardless of the amount of such
fees payable to it during such fiscal year to the extent that the securities
regulations of any state in which the Shares are registered or qualified for
sale so require.
7. Compensation. For the services provided and the expenses assumed
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pursuant to this Agreement, the Trust, on behalf of each Portfolio, will pay the
Investment Adviser and the Investment Adviser will accept as full compensation
therefor a fee, computed daily and payable monthly, as described in the fee
schedule attached as Appendix A. The fee attributable to each Portfolio shall be
the several (and not joint or joint and several) obligation of each such
Portfolio.
8. Limitation of Liability of the Investment Adviser. The Investment
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Adviser shall not be liable for any error of judgment or mistake of law or for
any loss suffered by the Trust in connection with the matters to which this
Agreement relates, except a loss resulting from a breach of fiduciary duty with
respect to the receipt of compensation for services or a loss resulting from
willful misfeasance, bad faith or gross negligence on the part of the Investment
Adviser in the performance of its duties or from reckless disregard by it of its
obligations and duties under this Agreement.
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9. Duration and Termination. This Agreement shall become effective with
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respect to a Portfolio upon approval of this Agreement by vote of a majority of
the outstanding voting securities of such Portfolio and, unless sooner
terminated as provided herein, shall continue with respect to such Portfolio
until March 31, 2000. Thereafter, if not terminated, this Agreement shall
continue with respect to a Portfolio for successive annual periods ending on
March 31, provided such continuance is specifically approved at least annually
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(a) by the vote of a majority of those members of the Board of Trustees of the
Trust 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, and (b) by the Board of Trustees of the Trust or by vote of a majority
of the outstanding voting securities of such Portfolio; provided, however, that
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this Agreement may be terminated with respect to a Portfolio by the Trust at any
time, without the payment of any penalty, by the Board of Trustees of the Trust
or by vote of a majority of the outstanding voting securities of such Portfolio,
on 60 days' written notice to the Investment Adviser, or by the Investment
Adviser at any time, without payment of any penalty, on 90 days' written notice
to the Trust. This Agreement will immediately terminate in the event of its
assignment. (As used in this Agreement, the terms "majority of the outstanding
voting securities," "interested person" and "assignment" shall have the same
meaning as such terms have in the 1940 Act.)
10. Amendment of this Agreement. No provision of this Agreement may be
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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, and no amendment of this Agreement affecting a Portfolio
shall be effective until approved by vote of the holders of a majority of the
outstanding voting securities of such Portfolio.
11. Miscellaneous. The captions in this Agreement are included for
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convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. If any
provision of this Agreement shall be held or made invalid by a court decision,
statute, rule or otherwise, the remainder of this Agreement shall not be
affected thereby. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and shall be
governed by Delaware law.
12. Limitation of Liability. Reference is hereby made to the Declaration
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of Trust which contains certain provisions limiting the liability of the Board
of Trustees, shareholders, officers, employees and agents of the Trust. The
obligations of the Trust created hereunder are not personally binding upon, nor
shall resort be had to the property of, any of the Board of Trustees,
shareholders, officers, employees or agents of the
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Trust. In addition, only the Trust property included in the Portfolio which
incurs any liability shall be used to pay such liability.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to
be executed by their officers designated below as of the day and year first
above written.
PROVIDENT INSTITUTIONAL FUNDS
Attest:
/s/ Xxxxxx X. Xxxxxxx
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By: By:
Title: Title:
BLACKROCK INSTITUTIONAL
MANAGEMENT CORPORATION
Attest:
/s/ Illegible
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By: By:
Title: Title:
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APPENDIX A
FEE SCHEDULE
TempFund.
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For the services provided and the expenses assumed pursuant to this
Advisory Agreement with respect to TempFund, the Trust will pay the Investment
Adviser from the assets of TempFund and the Investment Adviser will accept as
full compensation therefor a fee, computed daily and payable monthly at the
following annual rate: .175% of the first $1 billion of TempFund's average net
assets, plus .15% of its next $1 billion of its average net assets, plus .125%
of its next $1 billion of its average net assets, plus .1% of its next $1
billion of average net assets, plus .095% of its next $1 billion of average its
average net assets, plus .09% of the next $1 billion of its average net assets,
plus .08% of its next $1 billion of its average net assets, plus .075% of the
next $1 billion of its average net assets, plus .07% of its average net assets
over $8 billion. The fee will be reduced by one-half of the amount necessary to
ensure that the ordinary operating expenses (excluding interest, taxes,
brokerage, payments to Service Organizations pursuant to Servicing Agreements
and extraordinary expenses) of TempFund do not exceed .45% of TempFund's average
net assets for any fiscal year.
TempCash and MuniCash.
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For the services provided and the expenses assumed pursuant to this
Advisory Agreement with respect to TempCash and MuniCash, the Trust will pay the
Investment Adviser from the assets belonging to either TempCash or MuniCash, as
applicable, and the Investment Adviser will accept as full compensation therefor
a fee, computed daily and payable monthly, at the following rate: .175% of the
first $1 billion of such Portfolio's average net assets, plus .15% of its next
$1 billion of average net assets, plus .125% of its next $1 billion of average
net assets, plus .1% of its next $1 billion of average net assets, plus .095% of
its next $1 billion of average net assets, plus .09% of its next $1 billion of
average net assets, plus .085% of its next $1 billion of average net assets,
plus .08% of its average net assets over $7 billion.
FedFund, T-Fund, Federal Trust Fund and Treasury Trust Fund.
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For the services provided and the expenses assumed pursuant to the
Advisory Agreement with respect to FedFund, T-Fund, Federal Trust Fund and
Treasury Trust Fund, the Trust will pay the Investment Adviser from the assets
belonging to FedFund, T-Fund, Federal Trust Fund and Treasury Trust Fund (in
proportion to each such Portfolio's average net assets) and the Investment
Adviser will accept as full compensation therefor a fee, computed
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daily and payable monthly, at the following annual rate: .175% of the first $1
billion of the combined average net assets of FedFund, T-Fund, Federal Trust
Fund and Treasury Trust Fund; plus .150% of its next $1 billion of their
combined average net assets, plus .125% of its next $1 billion of their combined
average net assets, plus .100% of the next $1 billion of their combined average
net assets, plus .095% of the next $1 billion of their combined average net
assets, plus .090% of the next $1 billion of their combined average net assets,
plus .085% of the next $1 billion of their combined average net assets, plus
.080% of their combined average net assets over $7 billion. The fee will be
reduced by one- half of the amount necessary to ensure that the ordinary
operating expenses (excluding interest, taxes, brokerage, payments to Service
Organizations pursuant to Servicing Agreements and extraordinary expenses) of
FedFund, T-Fund, Federal Trust Fund and Treasury Trust Fund do not exceed .45%
of each such Portfolio's average net assets for any fiscal year.
Muni Fund.
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For the services provided and the expenses assumed pursuant to this
Advisory Agreement with respect to MuniFund, the Trust will pay the Investment
Adviser from the assets belonging to MuniFund and the Investment Adviser will
accept as full compensation therefor a fee, computed daily and payable monthly,
at the following annual rate: .175% of the first $1 billion of MuniFund's
average net assets, plus .15% of its next $1 billion of average net assets, plus
.125% of its next $1 billion of average net assets, plus .1% of its next $1
billion of average net assets, plus .095% of its next $1 billion of average net
assets, plus .09% of its next $1 billion of average net assets, plus .085% of
its next $1 billion of average net assets, plus .08% of its average net assets
over $7 billion. The fee will be reduced by one-half of the amount necessary to
ensure that the ordinary operating expenses (excluding interest, taxes,
brokerage, payments to Service Organizations pursuant to Servicing Agreements
and extraordinary expenses) of MuniFund do not exceed .45% of MuniFund's average
net assets for any fiscal year.
California Money Fund and New York Money Fund.
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For the services provided and the expenses assumed pursuant to this
Advisory Agreement, California Money Fund and New York Money Fund, as
applicable, will pay the Investment Adviser and the Investment Adviser will
accept as full compensation therefor a fee, computed daily and payable monthly,
at an annual rate of .20% of such Portfolio's average net assets.
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