INVESTMENT SUBADVISORY AGREEMENT
This Investment Subadvisory Agreement is made as of February 4, 2014 (the “Effective Date”),
by and between Vantagepoint Investment Advisers, LLC, a Delaware limited liability company
(hereafter “Client”), and Oaktree Capital Management, L.P., a Delaware limited partnership
(hereafter “Subadviser”), and THE VANTAGEPOINT FUNDS, a Delaware statutory trust.
WHEREAS, The Vantagepoint Funds is a Delaware statutory trust registered as an open-end
management investment company under the Investment Company Act of 1940, as amended (the “1940
Act”);
WHEREAS, Client is party to certain Master Investment Advisory Agreements with The
Vantagepoint Funds (the “Master Agreements”) for management of the investment operations of The
Vantagepoint Funds including the establishment and operation of investment portfolios for The
Vantagepoint Funds (each a “Series”);
WHEREAS, subject to the receipt of such approvals by the Board of Directors of The
Vantagepoint Funds and its shareholders as may be required by law, the Master Agreements authorize
Client to enter into agreements on behalf of The Vantagepoint Funds with subadvisers under which
the subadvisers agree to perform all or any portion of the management and advisory duties with
respect to all or any portion of the Series of The Vantagepoint Funds;
WHEREAS, Client and Subadviser wish to enter into a subadvisory agreement pursuant to which
Subadviser will perform the following duties with respect to a portion of the assets of a Series of
The Vantagepoint Funds (the “Agreement”).
AGREEMENTS:
In consideration for the performance by Subadviser as investment subadviser of certain assets
held by The Vantagepoint Funds, Client authorizes Subadviser to manage certain of the securities
and other assets of The Vantagepoint Funds as follows:
1. ACCOUNT
The account with respect to which Subadviser shall perform its services shall consist of those
assets of the Vantagepoint Diversifying Strategies Fund (the “Fund”), a separate Series of The
Vantagepoint Funds, which Client determines to assign to an account with Subadviser, together with
all income earned by those assets and all realized and unrealized capital appreciation related to
those assets (hereafter “Account”). From time to time, Client may, upon notice to Subadviser, make
additions to the Account and may, upon notice to Subadviser, make withdrawals from the Account. To
the extent that such withdrawals shall reduce the assets of the Account to zero, Subadviser shall
not be entitled to any fees as set forth hereunder for the period of time
for which no assets are held in the Account, notwithstanding any termination provisions set forth
in this Agreement.
2. APPOINTMENT STATUS, POWERS OF CLIENT AND SUBADVISER
(a) Purchase and Sale. Client hereby appoints Subadviser to manage the Account on the terms
and conditions set forth in this Agreement. Subject to the restrictions set forth in this
Agreement, and acting always in conformity with investment guidelines provided by Client, and the
policies and written investment objectives, policies, procedures and restrictions of the Fund
described in Section 4 below, Client hereby grants Subadviser complete, unlimited and unrestricted
discretion and authority to supervise and direct the investment of the Account and to select
portfolio investments with respect to the Account including the power to acquire (by purchase,
exchange, subscription or otherwise), to hold and to dispose (by sale, exchange or otherwise).
Subadviser will review with Client, upon the request of Client, any transactions it makes with
respect to the management of the Account.
(b) Limitation on Authority. Except as expressly authorized herein or hereafter from time to
time, Subadviser shall for all purposes be deemed an independent contractor and shall have no
authority to act for or to represent Client or The Vantagepoint Funds in any way or otherwise to be
an agent of Client or the Fund. The activities of Client and Subadviser in managing the assets of
the Fund shall in all instances be conducted subject to the supervision and direction of the Board
of Directors of The Vantagepoint Funds and in compliance with Applicable Laws. “Applicable Laws”
means (i) the “federal securities laws” as defined in Rule 38a-1(e)(1) under the 1940 Act, as they
relate to the services provided by the Subadviser to the Fund and Client pursuant to this
Agreement, and (ii) any and all other laws, rules, and regulations, whether foreign or domestic, in
each case applicable at any time and from time to time to the operations of the Subadviser in
relation to the Account.
(c) Proxy Voting. Unless otherwise instructed by Client or The Vantagepoint Funds, Subadviser
shall have discretion to take any action or render any advice with respect to the voting of shares
or the execution of proxies solicited from time to time by, or with respect to, the issuers of
investments held in the Account in accordance with the Subadviser’s written proxy voting policies
and procedures as provided by the Subadviser to Client and the Board of Directors of The
Vantagepoint Funds from time to time. Subadviser will report quarterly to Client and the Fund
regarding such voting in a format reasonably requested by the Client. Subadviser represents that
it has adopted and implemented written policies and procedures that are reasonably designed to
ensure that the Subadviser votes proxies in the best interest of the Fund in compliance with the
requirements of Rule 206(4)-6 under the Investment Advisers Act of 1940 (“Advisers Act”). The
Subadviser shall promptly provide notice and copies of any material changes to its policies,
procedures or other guidelines for voting proxies to the Board of Directors of The Vantagepoint
Funds or the Client. Upon request, the Subadviser shall provide The Vantagepoint Funds with a
complete and current copy of its proxy voting policies, procedures and other guidelines or a
description of such policies, procedures and guidelines for the purpose of disclosing such
information in The Vantagepoint Funds’ prospectus or as otherwise required by the Securities Act of
1933 or 1940 Act and the rules thereunder.
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(d) Key Personnel. Subadviser agrees that the following key personnel will have primary
responsibility with respect to the investment management of the Account. If these individuals are
unable to devote sufficient time to maintain primary responsibility for the Account or for whatever
reason no longer have such responsibility, Subadviser must give Client written advance notice, or,
if Subadviser does not have advance knowledge of such inability, prompt written notice within five
(5) business days (or sooner if practicable) after Subadviser first learns of such inability, as
well as the name of the person(s), if any, designated by Subadviser to replace or supplement these
individuals. In addition, Subadviser shall give Client prompt written notice of any other employee
of Subadviser not listed below who will have direct supervisory responsibility for the key
personnel listed below or who will have responsibility for setting investment policy for the
Account during the term of the Agreement.
Key Personnel: | Xxxxx Xxxxx | ||
Xxxx-Xxxx Xxxxxxx | |||
Xxx Xxxx | |||
Xxxxxx Xxxxx |
3. ACCEPTANCE OF APPOINTMENT
Subadviser accepts the appointment as an investment subadviser of the Fund and agrees to act
in accordance with the standard of care in Section 9 and to use its professional judgment when
making investment decisions for the Account, and when providing the other services required or
requested of Subadviser under the provisions of this Agreement.
4. INVESTMENT POLICIES
(a) Investment Objectives and Restrictions. Subject to the supervision of The Vantagepoint
Funds’ Board of Directors and Client, Subadviser shall manage the assets and direct the investments
of the Fund held in the Account in accordance with: (i) Applicable Laws; (ii) The Vantagepoint
Funds’ prospectus and statement of additional information as it relates to the investment
objective, strategies, policies, procedures, restrictions and any other requirements of the Fund;
(iii) the written investment objectives, strategies, policies, procedures, guidelines, restrictions
and liquidity and other requirements of (A) The Vantagepoint Funds, as they relate to the Fund, (B)
the Fund and (C) the Account, in each case that Client or Fund communicates to Subadviser; (iv)
The Vantagepoint Funds’ written compliance policies, guidelines and procedures; as they relate to
the Fund that Client or Fund communicates to Subadviser; and (v) any additional written investment
guidelines and policies as they relate to the Fund that may be communicated, from time to time, by
the Client or Fund to the Subadviser, all of the documents or items referenced in (ii) through (v)
may be restated
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or modified from time to time by Client or The Vantagepoint Funds; provided that Subadviser
shall not be required to comply with any such restatements or modifications until communicated by
Client or Fund to Subadviser. Client retains the right, on written notice to Subadviser and
without amending this Agreement, to modify any such documents, objectives, policies, procedures,
guidelines, restrictions, or requirements in any manner and at any time as may be allowed pursuant
to the 1940 Act and consistent with the terms of the Master Agreements with The Vantagepoint Funds;
provided that Subadviser shall not be required to comply with any such amendments or modifications
until communicated by Client or Fund to Subadviser. In the event that Subadviser is unable to
adhere to such modifications, the Client and Subadviser will endeavor to reach a mutually agreeable
resolution that is in the best interests of the Fund and is consistent with Applicable Laws and the
Fund’s stated policies, which may include termination of the Agreement as provided in Section 15
below. Notwithstanding the foregoing, Subadviser shall not be responsible for providing tax advice
to Client and the Fund under this Agreement.
(b) Agreement and Registration Statement. Subadviser will adhere to all specific provisions
in this Agreement and in The Vantagepoint Funds’ current Registration Statement on Form N-1A as
they relate to the investment objective, strategies, policies, procedures, restrictions and any
other requirements of the Fund and as such provisions may be amended and updated from time to time
and filed with the Securities and Exchange Commission (“SEC”) on Form N-1A (“Registration
Statement” and together with the documents and items described in paragraph (a) of this Section 4,
“Fund Policies”)). The Registration Statement is hereby incorporated by reference and made a part
of this Agreement. Client agrees to provide Subadviser with copies of any amendments to the
Registration Statement that are applicable to the Account within five (5) business days after the
date on which such amendments or related filings are made with the SEC or other regulatory body.
For purposes of compliance with the Fund Policies, Subadviser shall be entitled to treat the
Account as though the Account constituted the entire Fund, and Subadviser shall not be responsible
in any way for the compliance of any assets of the Fund, other than the Account, with the Fund
Policies.
(c) Conflict in Policies. If a conflict in any of the Fund Policies occurs as they relate to
the Fund, the Registration Statement shall govern for purposes of this Agreement. Subadviser shall
promptly notify Client within one (1) business day of any actual or perceived conflict that it has
identified as they relate to the Fund in any of the Fund Policies.
5. CUSTODY, DELIVERY, RECEIPT OF SECURITIES
(a) Custody Responsibilities. Client shall identify to Subadviser one or more custodians (the
“Custodian”) to hold the Account assets. The Custodian, as identified by Client, will be
responsible for the custody, receipt and delivery of securities and other assets of The
Vantagepoint Funds (including the Account), and Subadviser shall have no authority, responsibility
or obligation with respect to the custody, receipt or delivery of securities or other assets of The
Vantagepoint Funds (including the
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Account). In the event that any cash, securities or other assets of The Vantagepoint Funds are
delivered to Subadviser, it will promptly deliver the same over to the Custodian, in the name of
The Vantagepoint Funds, as permitted by Applicable Laws. Client or the Fund shall be responsible
for all custodial arrangements, including the payment of all fees and charges to Custodian.
Subadviser shall not be responsible or liable for any act or omission of Custodian.
(b) Portfolio Transactions. Unless otherwise required by local custom, all portfolio
transactions for the Account will be consummated by payment to or delivery by The Vantagepoint
Funds of cash, securities or other assets due to or from the Account. Subadviser will make all
reasonable efforts to notify the Custodian of all orders to brokers, dealers or other market
intermediaries for the Account by 9:00 a.m. Eastern Time on the day following the trade date and
will affirm the trade before the close of business one (1) business day after the trade date (T+1).
6. RECORD KEEPING AND REPORTING
(a) Records. Subadviser will maintain proper and complete records relating to the furnishing
of services and its duties and obligations under this Agreement, including records with respect to
the acquisition, holding and disposition of securities or other assets for Client and the Fund in
accordance with Applicable Laws. All records maintained pursuant to this Agreement shall be
subject to examination by Fund, Client and by persons authorized by either of them during normal
business hours upon reasonable notice. Upon termination of this Agreement, Subadviser, at its
expense, shall promptly, upon demand, return to Client and the Fund all records that Client or the
Fund reasonably requests that are required to be maintained and preserved pursuant to Applicable
Laws and this Agreement. Subadviser shall be entitled to retain originals or copies of records
pursuant to the requirements of Applicable Laws.
(b) Quarterly Valuation Reports. Subadviser shall use its best efforts to provide to Client
within ten (10) business days after the end of each calendar quarter a statement of the market
value of the Account as of the close of such quarter together with an itemized list of the assets
in the Account, as that information is reported on Subadviser’s record keeping system.
(c) Reconciliations. On a daily basis, reports of the Account’s portfolio holdings and
prices from the Custodian’s records will be made available to Subadviser, and Subadviser shall
report as promptly as possible on the same business day or, if not commercially practicable, on the
next business day to the Custodian and to Client any discrepancies between the Custodian’s records
and those of the Subadviser, including differences between the prices assigned to the assets in the
Account and the prices that Subadviser believes should be assigned to them. On an ongoing basis,
Subadviser shall monitor market developments for significant events occurring after the close of
the primary markets for particular investments held in the Account that Subadviser reasonably
believes may materially affect their value, and shall promptly notify Client of any such event that
comes to Subadviser’s attention. In addition, Subadviser shall
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respond promptly to any reasonable request from Client for information needed to assist The
Vantagepoint Funds in the valuation of any Account investment, and to provide to Client such
information as is in Subadviser’s possession regarding the same. On a monthly basis, Subadviser
shall reconcile investment and cash positions, and market values to the Custodian’s records and
report any discrepancies to Client within ten (10) business days after the end of the month.
(d) Loss Reimbursement. Subadviser shall reimburse the Account for any material error to the
Fund’s net asset value, as described by The Vantagepoint Funds’ NAV Error Correction Policy in
effect at such time, caused by Subadviser.
(e) Reports. Subadviser shall furnish Client and the Board of Directors of The Vantagepoint
Funds such information as may reasonably be necessary to evaluate the terms of this Agreement.
Subadviser also shall furnish Client and the Board of Directors of The Vantagepoint Funds such
periodic and special reports or other information regarding Subadviser or its management of the
Account, as may be reasonably requested by Client or the Board of Directors of The Vantagepoint
Funds from time to time, including but not limited to: (i) a quarterly report and attestation to
the Board of Directors of The Vantagepoint Funds regarding activities and practices relating to
transactions entered into in accordance with Rules 10f-3, 17a-7, 17e-1 under the 1940 Act, the
purchase or holding of any potentially illiquid assets in the Account, any soft dollar transactions
entered into by the Subadviser, and whether, to the best of Subadviser’s knowledge, the Subadviser
violated any Fund Policies; (ii) information relating to the Subadviser’s use of broker-dealers and
counterparties; and (iii) information relating to regulatory and/or law enforcement inquiries or
actions.
(f) Other Reports and Information on Request. Subadviser shall provide to Client promptly upon
reasonable request other reports or information relating to the Account or Subadviser.
(g) Review of Materials. During the term of this Agreement, Client shall furnish to
Subadviser the portions of all prospectuses, statements of additional information, proxy statements
and information statements, which in any case refer to the Subadviser (except for materials that
solely reference Subadviser as a subadviser of the Fund) and are prepared by The Vantagepoint Funds
or by employees or agents of Client or its Affiliates, prior to their first use. Subadviser shall
submit to Client any reasonable changes to the information pertaining to the Subadviser and stated
in such materials within five (5) business days (or such other time as may be mutually agreed upon)
after receipt thereof.
(h) Use of Names. Subadviser agrees that neither it, nor any of its Affiliates, will in any
way refer directly or indirectly to The Vantagepoint Funds, the Fund, the Client, and their
officers, members or directors (in each case, in their capacities as such), in offering, marketing
or other promotional materials without the express written consent of The Vantagepoint Funds, the
Fund or Client, as applicable; provided that Subadviser may disclose the fact that it is a
subadviser of the Fund. Subadviser further agrees that The Vantagepoint Funds, the Fund and Client
(or its
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Affiliates) may refer to Subadviser in public documents as may be required by Applicable Laws, and
may use Subadviser’s name in Fund marketing or other promotional materials provided that any other
references to Subadviser in such materials shall have been derived from information previously
reviewed by Subadviser in accordance with the previous Section 6(g).
7. PURCHASE AND SALE OF INVESTMENTS
(a) Selection of Broker-Dealers and other Market Intermediaries. Except to the extent
otherwise instructed in writing by Client (it being understood that Client, acting on behalf of the
Fund, may, in its absolute discretion and consistent with the requirements of the 1940 Act and
other Applicable Laws, direct Fund portfolio transactions for which Subadviser is responsible to
any broker-dealer or market intermediary that Client may designate), Subadviser shall place all
orders for the purchase or sale of investments on behalf of the Account with broker-dealers or
other market intermediaries (i.e., foreign currency dealers and futures commission merchants)
selected by Subadviser, but not with a person affiliated with Subadviser, as the term “affiliated
person” is defined in the 1940 Act (hereinafter, an “Affiliate”), unless the transaction is in
compliance with Applicable Laws and with the Fund Policies, copies of which shall be provided to
Subadviser.
(b) Best Execution. In placing such orders, Subadviser will give primary consideration to
obtaining the most favorable price and efficient execution reasonably available under the
circumstances and in accordance with Applicable Laws. In evaluating the terms available for
executing particular transactions for the Account and in selecting broker-dealers to execute such
transactions, Subadviser may consider, in addition to commission cost and execution capabilities,
relevant factors, such as the financial stability and reputation of broker-dealers and the
brokerage and research services (as those terms are defined in Section 28(e) of the Securities
Exchange Act of 1934, as amended (the “1934 Act”)) provided by such broker-dealers. Subadviser is
authorized to pay a broker-dealer who provides such brokerage and research services a commission
for executing a transaction for the Account which is in excess of the amount of commission another
broker-dealer would have charged for effecting that transaction (“Soft Dollars”) if Subadviser
determines in good faith that such commission is reasonable in relation to the value of the
brokerage and research services provided by such broker-dealer in discharging responsibilities with
respect to the Account or to other client accounts as to which it exercises investment discretion.
Subadviser agrees that any and all Soft Dollar arrangements or usage relevant to the Account will
qualify for the safe harbor set out in Section 28(e) of the 1934 Act, including any interpretations
of such safe harbor by the SEC or its staff.
(c) Bunching Orders. Client agrees that Subadviser may aggregate sales or purchase orders for
the Account with similar orders being made simultaneously for other accounts managed by Subadviser,
if in Subadviser’s reasonable judgment such aggregation shall result in an overall economic benefit
or more efficient execution to the Account taking into consideration the advantageous selling or
purchase price, brokerage commission or other expenses. Client acknowledges that the
determination
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of such economic benefit to the Account by Subadviser represents Subadviser’s evaluation that the
Account is benefited by relatively better purchase or sales prices, lower commission or other
expenses and beneficial timing of transactions or a combination of these and other factors. In
such event, allocation of the investments so purchased or sold, as well as expenses incurred in the
transaction, will be made by Subadviser in a manner Subadviser considers to be most equitable and
consistent with its fiduciary obligations to the Fund and to its other clients.
(d) Cost Consideration. For the avoidance of doubt, this Agreement does not require
Subadviser to solicit competitive bids for each transaction or to seek the lowest available
commission cost so long as Subadviser seeks best execution for each transaction in accordance with
Section 7(b) above and Applicable Laws.
8. INVESTMENT FEES; EXPENSES
(a) Fee Schedule. The compensation of Subadviser for its services under this Agreement shall
be calculated in good faith by Client and paid from the assets of the Fund in accordance with
Schedule A hereto.
(b) For purposes of this section 8 and Schedule A, all payments due to Subadviser shall be
solely made from the assets of the Fund.
(c) Pro Rata Fee. If Subadviser should serve for less than the whole of any calendar quarter,
its compensation shall be determined as provided above on the basis of the average daily net asset
value of the Account for the period of that calendar quarter and shall be payable on a pro rata
basis for the period of the calendar quarter for which it has served as Subadviser hereunder. In
no event shall the Subadviser receive payment for any period of time during which there were no
assets in the Account.
(d) Subadviser shall furnish at its own expense all office facilities, equipment and supplies,
and shall bear all expenses incurred by it in connection with routine and recurring functions
necessary to render its services furnished to the Fund and Client under this Agreement, including
but not limited to administrative, bookkeeping and accounting, clerical, statistical and
correspondence functions. Unless otherwise agreed to, the Fund shall be responsible for its own
expenses. Subadviser shall not be responsible for the expenses associated with any of the
securities or other investment instruments (including taxes, brokerage commissions and other
transaction costs, if any) purchased or sold for the Fund, unless such costs relate to Subadviser’s
breach of this Agreement.
9. DUTY OF CARE; NON-EXCLUSIVITY OF SERVICES
The Subadviser shall discharge its duties under the Agreement using the care, skill, prudence
and diligence under the circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of an enterprise of a like
character and with like aims. The Subadviser shall
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also devote such time as it deems necessary to provide prompt and professional service to Client
and the Fund. The services of Subadviser to be provided hereunder are not to be deemed exclusive
and Subadviser shall be free to provide similar services for its own account or the accounts of
other persons and to receive compensation for such services. Client acknowledges that Subadviser
or its Affiliates or Subadviser’s other clients may at any time, have, acquire, increase, decrease
or dispose of positions in the same investments which are at the same time being held, acquired for
or disposed of under this Agreement for the Fund. Except as may otherwise be required under
Subadviser’s policies and procedures described in Section 11 below, Subadviser shall have no
obligation to acquire or dispose of a position in any investment pursuant to this Agreement solely
because Subadviser, its directors, members, Affiliates or employees invest in such a position for
its or their own accounts or for the account of another client.
10. COMPLIANCE POLICIES AND PROCEDURES
The Subadviser shall promptly provide The Vantagepoint Funds’ Chief Compliance Officer
(“CCO”), upon request, copies of its policies and procedures for compliance by the Subadviser and
the Fund with the Federal Securities Laws as defined in Rule 38a-1 under the 1940 Act and promptly
provide the CCO with copies of any material changes to those policies and procedures. The
Subadviser shall fully cooperate with the CCO as to facilitate the CCO’s performance of his/her
responsibilities under Rule 38a-1 to review, evaluate and report to The Vantagepoint Funds’ Board
of Directors on the operation of the Subadviser’s compliance policies and procedures and shall
promptly report to the CCO any “Material Compliance Matter” as defined by Rule 38a-1(e)(2). At
least annually, the Subadviser shall provide a certification to the CCO to the effect that the
Subadviser has in place and has implemented policies and procedures that are reasonably designed to
ensure compliance by the Fund and the Subadviser with the Federal Securities Laws.
11. XXXXXXX XXXXXXX POLICIES AND CODE OF ETHICS
Subadviser hereby represents that it has adopted policies and procedures and a code of ethics
that meet the requirements of Rule 17j-1 under the 1940 Act, Section 204A of the Advisers Act and
Rule 204A-1 under the Advisers Act. Copies of such policies and procedures and code of ethics and
any changes or supplements thereto shall be delivered to Client and The Vantagepoint Funds, and any
material violation of such policies by personnel of Subadviser and the sanctions imposed in
response thereto and any issues arising under such policies shall be reported to Client and The
Vantagepoint Funds as required by Rule 17j-1 under the 1940 Act.
12. INSURANCE
At all times during the term of this Agreement, Client and Subadviser shall each maintain, at
its own cost and expense, professional liability insurance for errors, omissions and negligent
acts, in an amount and with such terms as are standard in the financial services industry for an
investment adviser of an investment company
registered as such under the 1940 Act managing the amount of aggregate assets managed by Client and
Subadviser, respectively.
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13. LIABILITY
(a) In the absence of any willful misfeasance, bad faith, or gross negligence in the
performance of its duties or by reason of reckless disregard of its obligations and duties under
this Agreement, Subadviser shall not be liable to Client or The Vantagepoint Funds for honest
mistakes of judgment or for action or inaction taken in good faith and in accordance with the duty
of care standard in Section 9 for a purpose that Subadviser reasonably believes to be in the best
interests of the Fund. However, neither this provision nor any other provision of this Agreement
shall constitute a waiver or limitation of any rights which Client or The Vantagepoint Funds may
have under federal or state securities laws.
(b) Client shall indemnify and hold harmless Subadviser against any loss, liability, damages,
reasonable costs or expenses, including reasonable attorneys’ fees, caused by: (i) the willful
misfeasance, bad faith, fraud, or gross negligence of Client in the performance of its duties
hereunder or by reason of reckless disregard of its obligations and duties hereunder hereunder;
(ii) Client’s violation of applicable law; or (iii) Client’s breach of any term or provision in
this Agreement.
(c) Subadviser shall indemnify and hold harmless Client against any loss, liability, damages,
reasonable costs or expenses, including reasonable attorneys’ fees, caused by: (i) the willful
misfeasance, bad faith, fraud, or gross negligence of Subadviser in the performance of its duties
hereunder or by reason of reckless disregard of its obligations and duties hereunder; (ii)
Subadviser’s violation of Applicable Laws; or (iii) Subadviser’s breach of any term or provision in
this Agreement.
(d) Subadviser shall indemnify and hold harmless The Vantagepoint Funds against any loss,
liability, damages, reasonable costs or expenses, including reasonable attorneys’ fees caused by:
(i) the willful misfeasance, bad faith, fraud, or gross negligence of Subadviser in the performance
of its duties hereunder or by reason of reckless disregard of its obligations and duties hereunder;
(ii) Subadviser’s violation of Applicable Laws; or (iii) Subadviser’s breach of any term or
provision in this Agreement.
14. TERM
This Agreement shall be in effect for an initial term beginning on the Effective Date and
ending on February 28, 2015. This Agreement may be renewed thereafter for successive periods, the
length of which shall be determined by the Board of Directors of The Vantagepoint Funds, provided
that such renewal is specifically approved at least annually by the Board of Directors of The
Vantagepoint Funds, including a majority of those members of the Board of The Vantagepoint Funds
who are
not parties to the Agreement or “interested persons” of any party to the Agreement (as that term is
defined in the 1940 Act).
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15. TERMINATION
This Agreement may be terminated by Subadviser, without the payment of any penalty,
immediately upon notice to The Vantagepoint Funds and to Client in the event of a material breach
of any provision thereof by The Vantagepoint Funds or Client if such breach shall not have been
cured within a twenty (20) day period after the Fund or Client (as applicable) receives written
notice of such breach from Subadviser, or otherwise by Subadviser upon sixty (60) days written
notice to Client and The Vantagepoint Funds, or by Client or The Vantagepoint Funds for any reason
or no reason immediately upon written notice to Subadviser. This Agreement shall automatically
terminate (a) in the event of its assignment, as provided in Section 20, (b) upon the termination
of The Vantagepoint Funds, or (c) upon termination of Client’s Master Investment Advisory Agreement
with The Vantagepoint Funds. Any termination in accordance with the terms of this Agreement shall
not cause the payment of any penalty. Any such termination shall not affect the status, obligations
or liabilities of any party hereto to the other party or parties. To the extent that the assets of
the Account are zero, Subadviser shall not be entitled to any fees as set forth hereunder for the
period of time for which no assets are held in the Account.
16. REPRESENTATIONS
(a)(i) Subadviser hereby represents to Client and The Vantagepoint Funds that Subadviser is
registered as an investment adviser under the Advisers Act and will continue to be registered for
so long as this Agreement remains in effect, that it has full power and authority to enter into and
perform fully the terms of this Agreement and that the execution of this Agreement on behalf of
Subadviser has been duly authorized and, upon execution and delivery, this Agreement will be
binding upon Subadviser in accordance with its terms. Subadviser shall inform Client and the Fund
of any additions to or withdrawals of partners to Subadviser within a reasonable time after such
additions or withdrawals.
(ii) Subadviser further represents that: (a) it is not prohibited by the 1940 Act or the
Advisers Act from performing the services contemplated by this Agreement; (b) in all material
respects, it is in compliance with and will continue to be in compliance with all Applicable Laws;
(c) it will promptly notify Client and The Vantagepoint Funds of the actual or pending occurrence
of any event that would disqualify the Subadviser from serving as an investment adviser of an
investment company pursuant to Section 9(a) of the 1940 Act or otherwise; (d) it will notify Client
and The Vantagepoint Funds promptly upon becoming aware of any material fact respecting or relating
to Subadviser that Subadviser has reviewed or provided to Client for inclusion in the Registration
Statement that becomes untrue or inaccurate in any material respect, or omits to state a material
fact necessary in order to make such information not misleading; and (e) there is no pending, or to
the best of its knowledge,
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threatened or contemplated action, suit or proceeding before or by any court, governmental,
administrative or self-regulatory body or arbitration panel to which the Subadviser or any of its
officers, directors, employees or Affiliates is a party, or to which any of the assets of the
Subadviser is subject, which reasonably might be expected to (i) result in any material adverse
change in the Subadviser’s condition (financial or otherwise), business or prospects; (ii) affect
adversely in any material respect the Subadviser’s assets taken as a whole; (iii) materially impair
the Subadviser’s ability to discharge its obligations under this Agreement, and the Subadviser has
not received any notice of an investigation by the SEC or any state regarding U.S. federal or state
securities laws, regulations or rules.
(iii) Subadviser acknowledges that the foregoing representations in Sections 16(a)(i) and (ii)
above shall be continuing and be deemed repeated at and as of all times during the term of this
Agreement. Further, if at any time during the term of this Agreement, Subadviser discovers any
fact or omission, or any event or change of circumstances occurs or is pending, which would make
the Subadviser’s representations in this Agreement inaccurate or incomplete in any material
respect, or which might render the information Subadviser has reviewed or provided to Client for
inclusion in the Registration Statement untrue or misleading in any material respect, or having
omitted to state a material fact necessary in order to make such information not misleading, the
Subadviser will provide prompt written notification within five (5) business days (or sooner if
practicable) to The Vantagepoint Funds and Client of any such fact, omission, event or change of
circumstances, and the facts related thereto.
(b) Client hereby confirms to Subadviser that it is registered as an investment adviser under
the Advisers Act, that it has full power and authority to enter into this Agreement and that the
execution of this Agreement on behalf of Client has been fully authorized and, upon execution and
delivery, this Agreement will be binding upon Client in accordance with its terms.
(c) The Vantagepoint Funds hereby confirms to Subadviser, and Subadviser hereby acknowledges,
that The Vantagepoint Funds is registered as an open-end investment company under the 1940 Act and
intends to be subject to taxation as a regulated investment company under Subchapter M and the
regulations thereunder of the Internal Revenue Code.
17. NOTICES
Notices or other notifications given or sent under or pursuant to this Agreement shall be in
writing and be deemed to have been given or sent if delivered to a party at its address listed
below in person, by registered mail with return receipt requested, by recognized overnight delivery
service or by electronic means the receipt of which is confirmed by registered mail with return
receipt requested or by recognized overnight delivery service. The addresses of the parties are:
12
Client:
Vantagepoint Investment Advisers, LLC
Attention: Legal Department
c/o ICMA Retirement Corporation
000 Xxxxx Xxxxxxx Xxxxxx, XX, Xxxxx 000
Xxxxxxxxxx, X.X. 00000-0000
Fax: 000-000-0000
Attention: Legal Department
c/o ICMA Retirement Corporation
000 Xxxxx Xxxxxxx Xxxxxx, XX, Xxxxx 000
Xxxxxxxxxx, X.X. 00000-0000
Fax: 000-000-0000
Fund/The Vantagepoint Funds:
The Vantagepoint Funds
Attention: Xxxxxx Xxxxxx, Fund Secretary
c/o ICMA Retirement Corporation
000 Xxxxx Xxxxxxx Xxxxxx, XX, Xxxxx 000
Xxxxxxxxxx, X.X. 00000-0000
Fax: 000-000-0000
Attention: Xxxxxx Xxxxxx, Fund Secretary
c/o ICMA Retirement Corporation
000 Xxxxx Xxxxxxx Xxxxxx, XX, Xxxxx 000
Xxxxxxxxxx, X.X. 00000-0000
Fax: 000-000-0000
Subadviser:
Oaktree Capital Management, L.P.
000 X. Xxxxx Xxx., 00xx Xxxxx
Xxx Xxxxxxx, XX 00000
Attention: Xxxxx Xxxxx
Fax: 000-000-0000
000 X. Xxxxx Xxx., 00xx Xxxxx
Xxx Xxxxxxx, XX 00000
Attention: Xxxxx Xxxxx
Fax: 000-000-0000
Each party may change its address by giving notice as herein required.
18. SOLE INSTRUMENT
This Agreement, along with any and all attachments hereto, constitutes the sole and only
agreement of the parties to it relating to its object and correctly sets forth the rights, duties,
and obligations of each party to the other as of its date. Any prior agreements, promises,
negotiations or representations not expressly set forth in this Agreement are of no force or
effect.
19. WAIVER OR AMENDMENT
No waiver of or amendment to this Agreement shall be effective unless reduced to a written
document signed by the party to be charged. No failure to exercise and no delay in exercising, on
the part of any party hereto, of any right, remedy, power or privilege hereunder, shall operate as
a waiver thereof. It is understood that certain material amendments of this Agreement may require
approval of the Fund’s Board of Directors or shareholders.
13
20. ASSIGNMENT OR CHANGE OF CONTROL
This Agreement shall automatically terminate in the event of its “assignment” as defined under
the 1940 Act or the Advisers Act and the rules
thereunder as interpreted from time to time by the SEC or its staff (an “Assignment”). In
addition, Subadviser agrees to provide Client prompt written advance notice of any event(s),
transaction(s) or circumstance(s), whether actual, proposed or expected, that would result in an
“Assignment” of the Agreement. The Subadviser shall promptly reimburse the Fund for any and all
reasonable costs and expenses incurred by the Fund, or its officers, directors or employees, in
connection with any actual, proposed or expected “Assignment” of the Agreement (even if a proposed
or expected “Assignment” ultimately does not take place).
21. COUNTERPARTS
This Agreement may be executed in counterparts each of which shall be deemed to be an original
and all of which, taken together, shall be deemed to constitute one and the same instrument.
22. CHOICE OF LAW
This Agreement shall be governed by, and the rights of the parties arising hereunder construed
in accordance with, the laws of the State of Delaware without reference to principles of conflict
of laws. To the extent that the applicable laws of the State of Delaware conflict with the
applicable provisions of the 1940 Act, the latter shall control.
23. CONFIDENTIAL INFORMATION
Any information about a party hereto that such party, supplies to another party to
this Agreement, which is not otherwise in the public domain or previously known to the receiving
party on a non-confidential basis, shall be regarded as confidential and held in the strictest
confidence. Similarly, any information about a party hereto that is generated or recorded by
another party hereto pursuant to this Agreement, which is not otherwise in the public domain, also
shall be regarded as confidential and held in the strictest confidence (such information, together
with the information referenced in the previous sentence, collectively, “Confidential
Information”).
Confidential Information includes, but is not limited to: the records referenced in Section
6(a) hereof, and any other data, records or other information in any form regarding the securities
or other assets held or to be acquired by the Fund, the transactions in securities or other assets
effected or to be effected on behalf of the Fund, or financial information or any other information
relating to a party to this Agreement.
No party may use Confidential Information about another party, except solely: (i) for the
legitimate business purposes of the Fund for which the Confidential Information was provided,
generated or recorded; or (ii) as specifically agreed to in writing by the other party to which the
Confidential Information pertains.
14
No party may disclose to others Confidential Information about another party, except solely:
(i) as may be required by applicable law or compelled by judicial or regulatory authority having
competent jurisdiction over the party; (ii) to its respective attorneys, accountants, directors,
officers, advisory personnel, and board members, provided that such parties use and maintain the
Confidential Information in accordance with this Agreement; (iii) as specifically agreed to in
writing by the other party to which the Confidential Information pertains; or (iv) to trading
counterparties in connection with know your customer (KYC) requirements, tax withholding
requirements under Applicable Laws or other trade execution matters relating to Subadviser’s
transactions for the Fund provided that such parties use and maintain the Confidential Information
in accordance with this Agreement. Notwithstanding the foregoing, Client, The Vantagepoint Funds,
and the Fund may disclose Confidential Information regarding the Subadviser to each other or to the
Fund’s third party service providers for the legitimate business purposes of the Fund for which the
Confidential Information was provided, generated or recorded provided that such parties use and
maintain the Confidential Information in accordance with this Agreement.
Further, each party acknowledges that it is aware that the U.S. securities laws prohibit a
person from trading in any securities issued by another party while in possession of material
non-public information about that party or such securities.
Lastly, the Subadviser may not consult with any other subadvisers of The Vantagepoint Funds
about transactions in securities or other assets of the Fund, except for purposes of complying with
the 1940 Act or SEC rules or regulations applicable to the Fund.
Nothing in this Agreement shall be construed to prevent the Subadviser from lawfully giving
other persons investment advice about, or lawfully trading on their behalf in, the shares issued by
the Fund or securities or other assets held or to be acquired by the Fund.
15
IN WITNESS WHEREOF, THE PARTIES HERETO EXECUTE THIS AGREEMENT ON
_________________, 2014 and make it effective on the date first set forth at the beginning of this
Agreement.
Client
|
||
Subadviser | ||
Vantagepoint Investment Advisers, LLC
|
Oaktree Capital Management, L.P. | |
by:
|
by: | |
/s/ Xxxxxx Xxxxxx
|
/s/ Xxxxx X. Xxxxx | |
Xxxxxx Xxxxxx, Assistant Secretary
|
Xxxxx X. Xxxxx | |
Principal | ||
Approved by:
|
/s/ Xxxxx Xxxxxx
|
|||
Chief Investment Officer |
Fund
The Vantagepoint Funds, on behalf of the Vantagepoint Diversifying Strategies Fund
by: |
||
/s/ Xxxxxx Xxxxxx |
||
Approved by:
|
/s/ Xxxxx Xxxxxx
|
|||
Chief Investment Officer | ||||
Vantagepoint Investment Advisers, LLC |
16
Schedule A
VANTAGEPOINT INVESTMENT ADVISERS, LLC
THE VANTAGEPOINT FUNDS
Fee Schedule
For
For
Oaktree Capital Management, L.P.
Vantagepoint Diversifying Strategies Fund
Vantagepoint Diversifying Strategies Fund
The Subadviser’s quarterly fee shall be calculated based on the average daily net asset value of
the assets under the Subadviser’s management as provided in good faith by the Client or Custodian,
at Client’s discretion, based on the following annual rate.
0.50% per annum
To clarify Section 1 and Section 15 of the Agreement, the Subadviser shall still be entitled to a
fee for any period that the average daily net asset value of the assets of the Account is greater
than zero, even if the daily net asset value of the assets of the Account on one or more days
during the period is equal to zero.
17