INVESTMENT ADVISORY AGREEMENT FOR SUBADVISER
INVESTMENT
ADVISORY AGREEMENT FOR SUBADVISER
AGREEMENT
made as of the __ day of ___,
2007 by and among Sun Capital Advisers LLC, a Delaware limited liability company
(the "Investment Adviser"), Sun Capital Advisers Trust, a Delaware statutory
trust (the "Trust"), on behalf of its series, SC PIMCO High Yield Fund (the
“Fund”), and Pacific Investment Management Company LLC, a Delaware limited
liability company (the “Subadviser").
To
carry out such determinations the
Subadviser will exercise full discretion, subject to the preceding paragraph,
and act for the Fund in the same manner and with the same force and effect
as
the Trust might or could do with respect to purchases, sales or other
transactions, as well as with respect to all other things necessary or
incidental to the furtherance or conduct of such purchases, sales or other
transactions. Subadviser is authorized on behalf of the Fund to enter
into agreements and execute any documents required to make investments pursuant
to the Prospectus and Statement of Additional Information or other investment
guidelines or policies established by the Board or Investment
Adviser. Notwithstanding the foregoing, the Subadviser shall, upon
written instructions from the Investment Adviser, effect such portfolio
transactions for the Fund as the Investment Adviser may from time to time
direct. Such instructions will be given in reasonable circumstances,
including, without limitation, any termination of this Agreement.
If
the
custodian enters into securities lending transactions on behalf of the Fund,
the
Fund or the custodian shall be responsible for ensuring that the securities
or
other assets in the Fund are available for sale at all times. The
Subadviser shall not be liable for any loss resulting from the Subadviser’s
inability to sell a security that is not available in the Fund for settlement
as
a result of such securities lending transactions
A
representative of the Subadviser will
meet with the officers of the Investment Adviser and the Trust’s officers and
Trustees at least quarterly on due notice to review the investments and
investment program of the Fund in the light of current and prospective economic
and market conditions. From time to time as the Board of Trustees of
the Trust or the Investment Adviser may reasonably request, the Subadviser
will
furnish to the Investment Adviser and Trust’s officers and to each of its
Trustees, at the Subadviser's expense, reports on portfolio transactions and
reports on issues of securities held by the Fund, all in such detail as the
Trust or the Investment Adviser may reasonably request. The
Subadviser will keep the Trust’s officers and the Investment Adviser informed of
developments materially affecting the Fund’s holdings, and will, on its own
initiative, furnish the Trust’s officers and the Investment Adviser from time to
time with such information. The Subadviser agrees to promptly notify
the Investment Adviser if the Subadviser believes that the market quotations
are
not readily available for any security held by the Fund or if the market price
does not reflect the security’s fair value. In such instances, the
Subadviser will provide assistance to the Investment Adviser, the Trust’s
valuation committee and the Fund’s pricing agent in making determinations of the
fair value of such portfolio securities in accordance with the Trust’s valuation
procedures.
In
addition, the Subadviser will
provide a quarterly certification, in the form provided by the Investment
Adviser from time to time, that the Subadviser has managed the Fund in
accordance with the provisions of this Agreement. The Subadviser
acknowledges and agrees that the Investment Adviser may, in its discretion,
provide such quarterly compliance certifications to the Board. The
Subadviser agrees to correct promptly any failure on its part and to take any
action that the Investment Adviser may reasonably request in connection with
any
breach of this Agreement. The Subadviser shall also provide the
officers of the Fund with supporting certifications in connection with such
certifications of the Fund’s financial statements and disclosure controls
pursuant to the Xxxxxxxx-Xxxxx Act.
The
Subadviser will cooperate with and
provide reasonable assistance to the Investment Adviser, the Fund’s custodian
and foreign custodians, transfer agent and all other agents and representatives
of the Trust and the Investment Adviser, keep all such persons fully informed
as
to such matters as they may reasonably deem necessary to the performance of
their obligations to the Trust, on behalf of the Fund, and the Investment
Adviser, provide prompt responses to reasonable requests made by such persons
and maintain any appropriate interaction with each to promote the exchange
of
information.
Unless
and until otherwise directed in
writing by the Investment Adviser or the Trust’s officers or Board, the
Subadviser will be responsible for voting all proxies, including taking action
with respect to corporate action elections for proxies and corporate actions
communicated by the Fund or its agents to the Subadviser, with respect to the
securities held by the Fund.
Unless
and until otherwise directed in
writing by the Investment Adviser or the Trust’s officers or Board, the
Subadviser shall prepare and file in consultation with the Investment Adviser
or
the Trust’s officers proofs of claim and other documentation on behalf of the
Fund as necessary to permit the Fund to participate in securities class action
suits relating to securities then held or previously held by the
Fund.
The
Subadviser shall maintain all books
and records required by Rule 31a-1 under the 1940 Act relating to its
responsibilities provided hereunder with respect to the Fund, and shall preserve
such records for the periods and in a manner prescribed by Rule 31a-2 under
the
1940 Act. The Subadviser shall permit the Investment Adviser, the
Fund's officers and its independent public accountants to inspect and audit
such
records at reasonable times during normal business hours upon due
notice.
If
any occasion should arise in which
the Subadviser gives any advice to its clients concerning the shares of the
Fund, the Subadviser will act solely as investment counsel for such clients
and
not in any way on behalf of the Fund. The Subadviser's services to
the Fund pursuant to this Agreement are not to be deemed to be exclusive, and
it
is understood that the Subadviser may render investment advice, management
and
other services to others.
The
Subadviser is prohibited from
consulting with any other subadviser to any other series of the Trust concerning
the Fund’s transactions in securities or other assets, except for the purpose of
complying with the conditions of Rule 12d3-1(a) and (b) under the 1940
Act.
ASSET
LEVEL FEE
RATE
All
assets 0.25%
For
any period less than a full fiscal
quarter during which this Agreement is in effect, the fee shall be prorated
according to the proportion which such period bears to a full fiscal
quarter. The Subadviser's fee shall be payable solely by the
Investment Adviser. The Fund shall have no responsibility for such
fee.
For
purposes hereof, the value of net
assets of the Fund shall be computed in the manner specified in the Fund’s
Prospectus and Statement of Additional Information for the computation of the
value of the net assets of the Fund in connection with the determination of
net
asset value of its shares. On any day that the net asset value
determination is suspended as specified in the Fund’s Prospectus, the net asset
value for purposes of calculating the advisory fee shall be calculated as of
the
date last determined.
a. The
Investment Adviser shall provide (or cause the Trust's custodian to provide)
timely information to the Subadviser regarding such matters as the composition
of assets in the Fund, cash requirements and cash available for investment
in
the Fund, and all other information as may be reasonably necessary for the
Subadviser to perform its responsibilities hereunder.
b. The
Investment Adviser has furnished the Subadviser a copy of the prospectus and
statement of additional information of the Fund and agrees during the
continuance of this Agreement to furnish the Subadviser copies of any revisions
or supplements thereto at, or, if practicable, before the time the revisions
or
supplements become effective. The Investment Adviser agrees to
furnish the Subadviser with copies of any financial statements or reports made
by the Fund to its shareholders, and any further materials or information which
the Subadviser may reasonably request to enable it to perform its functions
under this Agreement.
On
occasions when the Subadviser deems
the purchase or sale of a security to be in the best interests of the Fund
as
well as other clients of the Subadviser, the Subadviser, to the extent permitted
by applicable laws and regulations, may, but shall be under no obligation to,
aggregate the securities to be sold or purchased in order to obtain the most
favorable price or lower brokerage commissions and efficient
execution. In such event, allocation of securities so sold or
purchased, as well as the expenses incurred in the transaction, will be made
by
the Subadviser in the manner the Subadviser considers to be the most equitable
and consistent with its fiduciary obligations to the Fund and to such other
clients. The Subadviser will report on such allocations at the
request of the Investment Adviser, the Fund or the Trust’s Board of Trustees,
providing such information as the number of aggregated trades to which the
Fund
was a party, the broker(s) to whom such trades were directed and the basis
of
the allocation for the aggregated trades.
In
connection with purchases or sales
of portfolio securities for the account of the Fund, neither the Subadviser
nor
any of its affiliated persons, will act as a principal or agent or receive
directly or indirectly any compensation in connection with the purchase or
sale
of investment securities by the Fund, except as permitted by applicable law
and
with the express written consent of the Trust and the Investment
Adviser.
The
Subadviser will advise the Fund’s
custodian and the Investment Adviser on a prompt basis of each purchase and
sale
of a portfolio security, specifying the name of the issuer, the description
and
amount or number of shares of the security purchased or sold, the market price,
commission and gross or net price, trade date, settlement date and identity
of
the effecting broker or dealer, and such other information as may be reasonably
required.
The
Subadviser will indemnify and hold
harmless the Investment Adviser, its affiliated persons and the Fund
(collectively, the "Indemnified Persons") to the fullest extent permitted by
law
against any and all loss, damage, judgments, fines, amounts paid in settlement
and attorneys fees incurred by any Indemnified Person to the extent resulting,
in whole or in part, from any of the Subadviser’s acts or omissions specified in
(a), (b) or (c) above, any breach of any duty or warranty hereunder of the
Subadviser or any inaccuracy of any representation of the Subadviser made
hereunder, provided, however, that nothing herein contained will provide
indemnity to any Indemnified Person for liability resulting from its own willful
misfeasance, bad faith, or gross negligence in the performance of its duties
or
reckless disregard of such duties.
The
Investment Adviser shall indemnify
and hold harmless the Subadviser to the fullest extent permitted by law against
any and all loss, damage, judgments, fines, amounts paid in settlement and
attorneys fees incurred by the Subadviser to the extent resulting, in whole
or
in part, from (x) the Investment Adviser's willful misfeasance, bad faith or
gross negligence in the performance of its duties hereunder or its reckless
disregard of its obligations and duties under this Agreement and (y) any breach
of any duty or warranty hereunder of the Investment Adviser or any inaccuracy
of
any representation of the Investment Adviser made hereunder, provided, however,
that nothing herein contained will provide indemnity to the Subadviser for
liability resulting from its own willful misfeasance, bad faith, or gross
negligence in the performance of its duties or reckless disregard of such
duties.
Neither
the Investment Adviser nor the
Subadviser shall be obligated to make any indemnification payment in respect
of
any settlement as to which it has not been notified and consented, such consent
not to be unreasonably withheld.
(i) Each
of the parties hereto represents that the Agreement has been duly authorized,
executed and delivered by all required corporate action.
(ii) Each
of the Subadviser and the Investment Adviser represents and warrants that it
is
an investment adviser duly registered with the Securities and Exchange
Commission under the Advisers Act and a duly registered investment adviser
in
all jurisdictions in which it is required to be so registered, and will continue
to be so registered for so long as this Agreement remains in
effect.
(iii) The
Subadviser represents that it has adopted and implemented and shall maintain
written policies and procedures with respect to its services pursuant to this
Agreement that are reasonably designed to prevent violation of the Federal
Securities Laws (as defined in Rule 38a-1 under the 0000 Xxx) and the Advisers
Act and the rules thereunder as required by Rule 206(4)-7 under the Advisers
Act.
(iv) The
Subadviser represents that it has adopted a written code of ethics that complies
with the requirements of Rule 17j-1 under the 1940 Act and Rule 204A-1 under
the
Advisers Act, which it has provided to the Trust. The Subadviser
represents that it has policies and procedures regarding the detection and
prevention and the misuse of material, nonpublic information, whether concerning
the Fund or otherwise, by the Subadviser and its employees as required by the
Xxxxxxx Xxxxxxx and Securities Fraud Enforcement Act of 1988.
(v) The
Subadviser agrees to maintain for the term of this Agreement and provide
evidence thereof to the Fund or the Investment Adviser a blanket bond and
professional liability (error and omissions) insurance in an amount reasonably
acceptable to the Investment Adviser and the Board.
(vi) The
Subadviser agrees to comply with the requirements of the 1940 Act, the Advisers
Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the
Commodity Exchange Act and the respective rules and regulations thereunder,
as
applicable, as well as with respect to all other applicable federal and state
laws, rules, regulations and case law that relate to the services and
relationships described in this Agreement and to the conduct of its business
as
a registered investment adviser.
(vii) The
Subadviser agrees to notify promptly the Investment Adviser and the Trust in
writing of the occurrence of any event which could have a material impact on
the
performance of its duties under this Agreement, including but not limited to:
(a) the occurrence of any event that could disqualify the Subadviser from
serving as an investment adviser pursuant to Section 9 of the 1940 Act; (b)
any
material change to the Subadviser’s business activities that could have a
material impact on the performance of its duties under this Agreement; (c)
any
event that would constitute a change of control of the Subadviser; (d) any
change in the portfolio manager or portfolio management team; (e) the existence
of any pending or threatened audit, investigation, examination, complaint or
other inquiry (other than routine audits or regulatory examinations or
inspections) relating to the Subadviser’s services to the Fund; and (f) any
material violation of the Subadviser’s code of ethics.
(viii) Each
of the parties to this Agreement agrees to cooperate with each other party
to
the extent permitted by applicable laws, regulations or orders in connection
with any investigation or inquiry relating to this Agreement or the
Trust.
(ix) Concurrently
with the execution of this Agreement, the Subadviser is delivering to the
Adviser and the Board, on behalf of the Fund, a copy of Part II of its Form
ADV,
as revised, on file with the Securities and Exchange Commission. The
Adviser and the Fund acknowledge receipt of such copy. The Subadviser
has also delivered to the Adviser and the Board, on behalf of the Fund, a copy
of its Disclosure Document dated March 1, 2006, on file with the Commodity
Futures Trading Commission. The Adviser and the Fund hereby
acknowledge receipt of such copy.
12. Governing
Law. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts, except to the
extent in conflict with U.S. federal law, in which event U.S. federal law will
control.
If
to the Trust or Fund:
One
Sun Life Executive
Park
Wellesley,
MA 02481
Attn: President
If
to the Investment
Adviser:
Sun
Capital Advisers LLC
One
Sun Life Executive
Park
Xxxxxxxxx,
XX 00000
Attn: General
Counsel
::ODMA\PCDOCS\LEGALDOCS\82802\1
If
to the Subadviser:
Pacific
Investment Management Company
LLC
000
Xxxxxxx Xxxxxx Xxxxx
Xxxxxxx
Xxxxx,
XX 00000
Attn: Chief
Legal Officer
Copy
to: Xxxxx
X. Xxxxxx
If
delivered, such notices shall be deemed given upon receipt by the other party
or
parties. If mailed, such notices shall be deemed given seven (7) days
after being mailed.
By:
Xxxxx
M.
A. Xxxxxxxx
Its: President
SUN
CAPITAL ADVISERS LLC
By:
Xxxxx
M. A. Xxxxxxxx
Its: President
By:
Xxxxx
X. Xxxxx
Its: Managing
Director & Chief Financial Officer
Pacific
Investment Management Company LLC
By:
Its: Managing
Director
::ODMA\PCDOCS\LEGALDOCS\82802\1