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EXHIBIT 10.10(e)
MANAGEMENT AGREEMENT
BETWEEN
NUVEEN INVESTMENT TRUST III
AND
NUVEEN INSTITUTIONAL ADVISORY CORP.
NUVEEN INVESTMENT TRUST III, a Massachusetts business trust registered
under the Investment Company Act of 1940 ("1940 Act") as an open-end
diversified management series investment company ("Trust"), hereby appoints
NUVEEN INSTITUTIONAL ADVISORY CORP., a Delaware corporation registered under
the Investment Advisers Act of 1940 as an investment adviser, of Chicago,
Illinois ("Manager"), to furnish investment advisory and management services
and certain administrative services with respect to the portion of its assets
represented by the shares of beneficial interest issued in the series listed in
Schedule A hereto, as such schedule may be amended from time to time (each such
series hereinafter referred to as "Fund"). Trust and Manager hereby agree that:
1. Investment Management Services. Manager shall manage the investment
operations of Trust and each Fund, subject to the terms of this Agreement and
to the supervision and control of Trust's Board of Trustees ("Trustees").
Manager agrees to perform, or arrange for the performance of, the following
services with respect to each Fund:
(a) to obtain and evaluate such information relating to economies,
industries, businesses, securities and commodities markets, and individual
securities, commodities and indices as it may deem necessary or useful in
discharging its responsibilities hereunder;
(b) to formulate and maintain a continuous investment program in a
manner consistent with and subject to (i) Trust's agreement and declaration of
trust and by-laws; (ii) the Fund's investment objectives, policies, and
restrictions as set forth in written documents furnished by the Trust to
Manager; (iii) all securities, commodities, and tax laws and regulations
applicable to the
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(c) unless otherwise directed by the Trustees, to determine from time to
time securities, commodities, interests or other investments to be purchased,
sold, retained or lent by the Fund, and to implement those decisions, including
the selection of entities with or through which such purchases, sales or loans
are to be effected;
(d) to use reasonable efforts to manage the Fund so that it will qualify as
a regulated investment company under subchapter M of the Internal Revenue Code
of 1986, as amended;
(e) to make recommendations as to the manner in which voting rights, rights
to consent to Trust or Fund action, and any other rights pertaining to Trust or
the Fund shall be exercised;
(f) to make available to Trust promptly upon request all of the Fund's
records and ledgers and any reports or information reasonably requested by the
Trust; and
(g) to the extent required by law, to furnish to regulatory authorities any
information or reports relating to the services provided pursuant to this
Agreement.
Except as otherwise instructed from time to time by the Trustees, with
respect to execution of transactions for Trust on behalf of a Fund, Manager
shall place, or arrange for the placement of, all orders for purchases, sales,
or loans with issuers, brokers, dealers or other counterparts or agents selected
by Manager. In connection with the selection of all such parties for the
placement of all such orders, Manager shall attempt to obtain most favorable
execution and price, but may nevertheless in its sole discretion as a secondary
factor, purchase and sell portfolio securities from and to brokers and dealers
who provide Manager with statistical, research and other information, analysis,
advice, and similar services. In recognition of such services or brokerage
services provided by a broker or dealer, Manager is hereby authorized to pay
such broker or dealer a commission or spread in excess of that which might be
charged by another broker or dealer for the same transaction if the Manger
determines in good faith that the commission or spread is reasonable in relation
to the value of the services so provided.
Trust hereby authorizes any entity or person associated with Manager that
is a member of a national securities exchange to effect any transaction on the
exchange for the account of a Fund to the extent permitted by and in accordance
with Section 11(a)
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of the Securities Exchange Act or 1934 and Rule 11a2-2(T) thereunder. Trust
hereby consents to the retention by such entity or person of compensation for
such transactions in accordance with Rule 11a-2-2(T)(a)(iv).
Manager may, where it deems to be advisable, aggregate orders for its other
customers together with any securities of the same type to be sold or purchased
for Trust or one or more Funds in order to obtain best execution or lower
brokerage commissions. In such event, Manager shall allocate the shares so
purchased or sold, as well as the expenses incurred in the transaction, in a
manner it considers to be equitable and fair and consistent with its fiduciary
obligations to Trust, the Funds, and Manager's other customers.
Manager shall for all purposes be deemed to be an independent contractor
and not an agent of Trust and shall, unless otherwise expressly provided or
authorized, have no authority to act for or represent Trust in any way.
2. Administrative Services. Subject to the terms of this Agreement and
to the supervision and control of the Trustees, Manager shall provide to the
Trust facilities, equipment, statistical and research data, clerical,
accounting and bookkeeping services, internal auditing and legal services, and
personnel to carry out all management services required for operation of the
business and affairs of the Funds other than those services to be performed by
the Trust's Distributor pursuant to the Distribution Agreement, those services
to be performed by the Trust's Custodian pursuant to the Custody Agreement,
those services to be performed by the Trust's Transfer Agent pursuant to the
Transfer Agency Agreement, those services to be provided by the Trust's
Custodian pursuant to the Accounting Agreement and those services normally
performed by the Trust's counsel and auditors.
3. Use of Affiliated Companies and Subcontractors. In connection with
the services to be provided by Manager under this Agreement, Manager may, to
the extent it deems appropriate, and subject to compliance with the
requirements of applicable laws and regulations, make use of (i) its affiliated
companies and their directors, trustees, officers, and employees and (ii)
subcontractors selected by Manager, provided that Manager shall supervise and
remain fully responsible for the services of all such third parties in
accordance with and to the extent provided by this Agreement. All costs and
expenses associated with services provided by any such third parties shall be
borne by Manager or such parties.
4. Expenses Borne by Trust. Except to the extent expressly assumed by
Manager herein or under a separate agreement between Trust and Manager and
except
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to the extent required by law to be paid by Manager, Manager shall not be
obligated to pay any costs or expenses incidental to the organization,
operations or business of the Trust. Without limitation, such costs and
expenses shall include but not be limited to:
(a) all charges of depositories, custodians and other agencies for
the safekeeping and servicing of its cash, securities, and other property;
(b) all charges for equipment or services used for obtaining price
quotations or for communication between Manager or Trust and the custodian,
transfer agent or any other agent selected by Trust;
(c) all charges for and accounting services provided to Trust by
Manager, or any other provider of such services;
(d) all charges for services of Trust's independent auditors and for
services to Trust by legal counsel;
(e) all compensation of Trustees, other than those affiliated with
Manager, all expenses incurred in connection with their services to Trust,
and all expenses of meetings of the Trustees or committees thereof;
(f) all expenses incidental to holding meetings of holders of units
of interest in the Trust ("Shareholders"), including printing and of
supplying each record-date Shareholder with notice and proxy solicitation
material, and all other proxy solicitation expense;
(g) all expenses of printing of annual or more frequent revisions of
Trust prospectus(es) and of supplying each then-existing Shareholder with a
copy of a revised prospectus;
(h) all expenses related to preparing and transmitting certificates
representing Trust shares;
(i) all expenses of bond and insurance coverage required by law or
deemed advisable by the Board of Trustees;
(j) all brokers' commissions and other normal charges incident to the
purchase, sale, or lending of portfolio securities;
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(k) all taxes and governmental fees payable to Federal, state or
other governmental agencies, domestic or foreign, including all stamp or
other transfer taxes;
(l) all expenses of registering and maintaining the registration of
Trust under the 1940 Act and, to the extent no exemption is available,
expenses of registering Trust's shares under the 1933 Act, of qualifying
and maintaining qualification of Trust and of Trust's shares for sale
under securities laws of various states or other jurisdictions and of
registration and qualification of Trust under all other laws applicable to
Trust or its business activities;
(m) all interest on indebtedness, if any, incurred by Trust or a
Fund; and
(n) all fees, dues and other expenses incurred by Trust in
connection with membership of Trust in any trade association or other
investment company organization.
5. Allocation of Expenses Borne by Trust. Any expenses borne by Trust
that are attributable solely to the organization, operation or business of a
Fund shall be paid solely out of Fund assets. Any expense borne by Trust which
is not solely attributable to a Fund, nor solely to any other series of shares
of Trust, shall be apportioned in such manner as Manager determines is fair and
appropriate, or as otherwise specified by the Board of Trustees.
6. Expenses Borne by Manager. Manager at its own expense shall furnish
all executive and other personnel, office space, and office facilities required
to render the investment management and administrative services set forth in
this Agreement.
In the event that Manager pays or assumes any expenses of Trust or a Fund
not required to be paid or assumed by Manager under this Agreement, Manager
shall not be obligated hereby to pay or assume the same or similar expense in
the future; provided that nothing contained herein shall be deemed to relieve
Manager of any obligation to Trust or a Fund under any separate agreement or
arrangement between the parties.
7. Management Fee. For the services rendered, facilities provided, and
charges assumed and paid by Manager hereunder, Trust shall pay to Manager out
of the assets of each Fund fees at the annual rate for such Fund as set forth
in Schedule B to this Agreement. For each Fund, the management fee shall accrue
on each calendar
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day, and shall be payable monthly on the first business day of the next
succeeding calendar month. The daily fee accrual shall be computed by
multiplying the fraction of one divided by the number of days in the calendar
year by the applicable annual rate of fee, and multiplying this product by the
net assets of the Fund, determined in the manner established by the Board of
Trustees, as of the close of business on the last preceding business day on
which the Fund's net asset value was determined.
8. State Expense Limitation. If for any fiscal year of a Fund, its
aggregate operating expenses ("Aggregate Operating Expenses") exceed the
applicable percentage expense limit imposed under the securities law and
regulations of any state in which Shares of the Fund are qualified for sale (the
"State Expense Limit"), the Manager shall pay such Fund the amount of such
excess. For purposes of this State Expense Limit, Aggregate Operating Expenses
shall (a) include (i) any fees or expenses reimbursements payable to Manager
pursuant to this Agreement and (ii) to the extent the Fund invests all or a
portion of its assets in another investment company registered under the 1940
Act, the pro rata portion of that company's operating expenses allocated to the
Fund, and (iii) any compensation payable to Manager pursuant to any separate
agreement relating to the Fund's administration, but (b) exclude any interest,
taxes, brokerage commissions, and other normal charges incident to the purchase,
sale or loan of securities, commodity interests or other investments held by the
Fund, litigation and indemnification expense, and other extraordinary expenses
not incurred in the ordinary course of business. Except as otherwise agreed to
by the parties or unless otherwise required by the law or regulation of any
state, any reimbursement by Manager to a Fund under this section shall not
exceed the management fee payable to Manager by the Fund under this Agreement.
Any payment to a Fund by Manager hereunder shall be made monthly, by
annualizing the Aggregate Operating Expenses for each months as of the last day
of the month. An adjustment for payments made during any fiscal year of the Fund
shall be made on or before the last day of the first month following such fiscal
year of the Fund if the Annual Operating Expenses for such fiscal year (i) do
not exceed the State Expense Limitation or (ii) for such fiscal year there is no
applicable State Expense Limit.
9. Retention of Sub-Adviser. Subject to obtaining the initial and periodic
approvals required under Section 15 of the 1940 Act, Manager may retain one or
more sub-advisers at Manager's own cost and expense for the purpose of
furnishing one or more of the services described in Section 1 hereof with
respect to Trust or one or more Funds. Retention of a sub-adviser shall in no
way reduce the responsibilities or obligations of Manager under this Agreement,
and Manager shall be responsible to
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Trust and its Funds for all acts or omissions of any sub-adviser in connection
with the performance or Manager's duties hereunder.
10. Non-Exclusivity. The services of Manager to Trust hereunder are not to
be deemed exclusive and Manager shall be free to render similar services to
others.
11. Standard of Care. The Manager shall not be liable for any loss
sustained by reason of the purchase, sale or retention of any security, whether
or not such purchase, sale or retention shall have been based upon the
investigation and research made by any other individual, firm or corporation,
if such recommendation shall have been selected with due care and in good
faith, except loss resulting from willful misfeasance, bad faith, or gross
negligence on the part of the Manager in the performance of its obligations and
duties, or by reason of its reckless disregard of its obligations and duties
under this Agreement.
12. Amendment. This Agreement may not be amended as to the Trust or any
Fund without the affirmative votes (a) of a majority of the Board of Trustees,
including a majority of those Trustees who are not "interested persons" of
Trust or of Manager, voting in person at a meeting called for the purpose of
voting on such approval, and (b) of a "majority of the outstanding shares" of
Trust or, with respect to any amendment affecting an individual Fund, a
"majority of the outstanding shares" of the Fund. The terms "interested
persons" and "vote of a majority of the outstanding shares" shall be construed
in accordance with their respective definitions in the 1940 Act and, with
respect to the latter term, in accordance with Rule 18f-2 under the 1940 Act.
13. Effective Date and Termination. This Agreement shall become effective
as to any Fund as of the effective date for that Fund specified in Schedule A
hereto. This Agreement may be terminated at any time, without payment of any
penalty, as to any Fund by the Board of Trustees of Trust, or by a vote of a
majority of the outstanding shares of that fund, upon at least sixty (60) days'
written notice to Manager. This Agreement may be terminated by Manager at any
time upon at least sixty (60) days' written notice to Trust. This Agreement
shall terminate automatically in the event of its "assignment" (as defined in
the 1940 Act). Unless terminated as hereinbefore provided, this Agreement shall
continue in effect with respect to any Fund for an initial period of two (2)
years from the effective date applicable to that Fund specified in Schedule A
and thereafter from year to year only so long as such continuance is
specifically approved with respect to that Fund at least annually (a) by a
majority of those Trustees who are not interested persons of Trust or of
Manager, voting in person at a meeting called for the purpose of voting on such
approval, and
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(b) by either the Board of Trustees of Trust or by a "vote of a majority of the
outstanding shares" of the Fund.
14. Ownership of Records; Interparty Reporting. All records required to be
maintained and preserved by Trust pursuant to the provisions of rules or
regulations of the Securities and Exchange Commission under Section 31(a) of
the 1940 Act or other applicable laws or regulations which are maintained and
preserved by Manager on behalf of Trust and any other records the parties
mutually agree shall be maintained by Manager on behalf of Trust are the
property of Trust and shall be surrendered by Manager promptly on request by
Trust; provided that Manager may at its own expense make and retain copies of
any such records.
Trust shall furnish or otherwise make available to Manager such copies of
the financial statements, proxy statements, reports, and other information
relating to the business and affairs of each Shareholder in a Fund as Manager
may, at any time or from time to time, reasonably require in order to discharge
its obligations under this Agreement.
Manager shall prepare and furnish to Trust as to each Fund statistical
data and other information in such form and at such intervals as Trust may
reasonably request.
15. Non-Liability of Trustees and Shareholders. Any obligation of Trust
hereunder shall be binding only upon the assets of Trust (or the applicable
Fund thereof) and shall not be binding upon any Trustee, officer, employee,
agent or Shareholder of Trust. Neither the authorization of any action by the
Trustees or Shareholders of Trust nor the execution of this Agreement on behalf
of Trust shall impose any liability upon any Trustee or any Shareholder.
16. Use of Manager's Name. Trust may use the name "Nuveen Investment Trust
III" and the Fund names listed in Schedule A or any other name derived from the
name "Nuveen" only for so long at this Agreement or any extension, renewal, or
amendment hereof remains in effect, including any similar agreement with any
organization which shall have succeeded to the business of Manager as
investment adviser. At such time as this Agreement or any extension, renewal or
amendment hereof, or such other similar agreement shall no longer be in effect,
Trust will cease to use any name derived from the name "Nuveen" or otherwise
connected with Manager, or with any organization which shall have succeeded to
Manager's business as investment adviser.
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17. References and Headings. In this Agreement and in any such
amendment, references to this Agreement and all expressions such as
"herein," "hereof," and "hereunder" shall be deemed to refer to this
Agreement as amended or affected by any such amendments. Headings are
placed herein for convenience of reference only and shall not be taken as a
part hereof or control or affect the meaning, construction, or effect of
this Agreement. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original.
Dated: August 26, 1996
NUVEEN INVESTMENT TRUST III
ATTEST BY ______________________________
________________________________
NUVEEN INSTITUTIONAL ADVISORY
CORP.
ATTEST BY ________________________________
________________________________
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NUVEEN INVESTMENT TRUST III
MANAGEMENT AGREEMENT
SCHEDULE A
The Funds of the Trust currently subject to this Agreement and the
effective date of each are as follows:
FUND EFFECTIVE DATE INITIAL TERM
Nuveen Income Fund November 27, 1998 Until August 1, 2000
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NUVEEN INVESTMENT TRUST III
MANAGEMENT AGREEMENT
SCHEDULE B
Compensation pursuant to Section 7 of this Agreement shall be calculated
with respect to each Fund in accordance with the following schedule applicable
to the average daily net assets of the Fund:
NUVEEN INCOME FUND
AVERAGE DAILY NET ASSET VALUE FUND MANAGEMENT FEE
For the first $125 million .6000 of 1%
For the next $125 million .5875 of 1%
For the next $250 million .5750 of 1%
For the next $500 million .5625 of 1%
For the next $1 billion .5500 of 1%
For assets over $2 billion .5250 of 1%
