CUSTODY AGREEMENT
This Agreement is made as of the 22nd day of December 1997, by and
between Investors Fiduciary Trust Company, a trust company chartered under the
laws of the State of Missouri, having its trust office located at 000
Xxxxxxxxxxxx, Xxxxxx Xxxx, Xxxxxxxx ("Custodian"), and PIMCO Variable Insurance
Trust, a Delaware business trust having its principal place of business at 000
Xxxxxxx Xxxxxx Xxxxx, Xxxxxxx Xxxxx, XX 00000 ( "PIVIT").
Witnesseth:
WHEREAS, PIVIT is a registered investment company with several series;
WHEREAS, Custodian acts as custodian for PIMCO Funds: Pacific
Investment Management Series ("PIMS") pursuant to a Custodian Agreement dated
April 1, 1989, as amended to date, between Custodian and PIMS (the "PIMS
Agreement");
WHEREAS, PIVIT desires to appoint Custodian as custodian for PIVIT's
newly created series; and
WHEREAS, Custodian is willing to accept such appointment;
NOW, THEREFORE, for and, in consideration of the mutual promises
herein contained and for other good and valuable consideration, the parties
hereto agree as follows:
1. Appointment. PIVIT hereby appoints Custodian as the custodian of
PIVIT to serve according to terms of the PIMS Agreement as if
PIVIT were the "Fund" as defined therein except that: (i) the
address for notice to PIVIT shall be as set forth on the first
page of this Agreement; (ii) the effective date of the appointment
provided for in this Section 1 shall be December 2, 1997 and
continuing to March 31, 1998; and (iii) the fees shall be as set
forth in the attached PIVIT fee schedule. Custodian accepts such
appointment on the terms specified above.
2. Authority. Notice is hereby given that this instrument is executed
on behalf of the Trustees of the Trust as Trustees and not
individually and that the obligations under this instrument are
not binding upon any of the holders of shares of beneficial
interest of any series of the Trust individually but are binding
only upon the respective assets and property of such series
covered by this instrument.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective authorized officers, as of
the date set forth above.
INVESTORS FIDUCIARY TRUST COMPANY
By: _____________________________
PIMCO VARIABLE INSURANCE TRUST
By: ______________________________
INVESTORS FIDUCIARY TRUST COMPANY
PIMCO VARIABLE INSURANCE TRUST
FEE SCHEDULE
I. U.S. Domestic Securities Processing, Trade Affirmations, Safekeeping,
Income Collection and Corporate Action Processing, Daily Pricing,
General Ledger Bookkeeping and All Reporting Services.
A. Monthly Base Fee Per Portfolio
$2,500
B. Asset Based Fee
1 basis point per annum on the aggregate net assets of the
PIMCO Variable Insurance Trust.
C. Securities Transaction Charges
DTC or Fed Book Entry - $8.00
* Domestic Physical and Cedel Settlements - $18.00
Mortgage Backed Securities Principal & Interest Paydown
- $10.00
Fedwire Charges and Bank Official Checks Request -$6.00
Worldwide Market Settlements as per the attached page-
$65.00
* Includes futures, options and Eurodollar CD settlements.
D. Non-U.S. Securities Processing Services
See Appendix I for basis points per annum on the aggregate
assets held in these markets.
E. Balance Credits
IFTC will offset fees with balance credits calculated at 75%
of the bank credit rate (see below) applied to average
custody collected cash balances for the month. Balance
credits can be used to offset fees. Any credits in excess of
fees will be carried forward from month to month through the
end of the calendar year. For calculation purposes, IFTC uses
an actual/actual basis.
Note: The bank credit rate is the equivalent to the lesser of:
o The average 91-day Treasury Xxxx discount rate for the month
or
o The average Federal Funds rate for the month less 50 basis
points
II. NOTES TO THE ABOVE FEE SCHEDULE
A. Asset based fees will be billed monthly at 1/12th of the
annual stated rate based on monthly average net assets.
B. There will be no additional out-of-pocket expenses associated
with our U.S. Domestic safekeeping services, including no
additional charges for usage of Bank systems and the
development of automated interfaces.
C. Fund Accounting related out-of-pocket charges include but are
not limited to costs incurred in obtaining prices for security
valuations, forms, postage, mailing services, magnetic tapes,
printing, proxy processing, microfilm/microfiche, FDIC
insurance on uninvested cash balances, back-up recovery, etc.
IFTC bills out-of-pocket expenses separately from service
fees.
D. Worldwide sub-custodian out-of-pocket charges typically
include, but are not limited to foreign registration, local
taxes, stamp duties, stock exchange fees, script fees, and
other unusual expenses unique to a country in which the PIMCO
Variable Insurance Trust has invested. IFTC bills
out-of-pocket expenses separately from service fees.
E. The fees stated above are exclusive of terminal equipment
required in the client's location(s) and communication line
costs.
F. Any fees or out-of-pocket expenses not paid within 30 days of
the date of the original invoice will be charged a late
payment fee of 1% per month until payment of the fees is
received by IFTC.
G. The above fee schedule is applicable for selections made and
communicated within 90 days of the date of this proposal. The
fees are guaranteed for not less than a three year period
commencing on the effective date of this fee schedule between
IFTC and the PIMCO Variable Insurance Trust. All changes to
the fee schedule will be communicated in writing at least 60
days prior to their effective date.
H. Overdrafts will be calculated at the monthly average Prime
rate (as published in the Wall Street Journal) and charged on
the monthly average overdraft balance.
__________________________________ ___12-22-97____
Investors Fiduciary Trust Company Date
__________________________________ ___12-22-97____
PIMCO Variable Insurance Trust Date
Appendix I
PIMCO VARIABLE INSURANCE TRUST
Global Custody Fees
I. Custody Based Charges:
---------------------------- ------------- --------- ----------------------------- -------------- --------------
Argentina 16.5 $65 Malaysia 9 $65
Australia 5 $65 Mexico 16.5 $65
Austria 5 $65 Morocco 16.5 $65
Bangladesh 16.5 $65 Netherlands 5 $65
Belgium 5 $65 New Zealand 5 $65
Botswana 16.5 $65 Norway 5 $65
Brazil 16.5 $65 Pakistan 16.5 $65
Canada 6 $65 Peru 16.5 $65
Cedel/Euroclear 2 $18 Philippines 16.5 $65
Chile 16.5 $65 Poland 16.5 $65
Colombia 16.5 $65 Portugal 16.5 $65
Xxxxx Xxxxxxxx 00.0 x00 Xxxxxxxx (Xxxxx) 16.5 $65
Denmark 5 $65 Shenzhen (China) 16.5 $65
Finland 9 $65 Singapore 9 $65
France 5 $65 South Africa 5 $65
Germany 5 $65 South Korea 16.5 $65
Greece 16.5 $65 Spain 5 $65
Hong Kong 5 $65 Sri Lanka 16.5 $65
Hungary 16.5 $65 Sweden 7 $65
India 16.5 $65 Switzerland 5 $65
Indonesia 9 $65 Taiwan 16.5 $65
Ireland 16.5 $65 Thailand 16.5 $65
Israel 16.5 $65 Turkey 16.5 $65
Italy 5 $65 United Kingdom 5 $65
Japan 5 $65 Uruguay 16.5 $65
Jordan 16.5 $65 Venezuela 16.5 $65
---------------------------- ------------- --------- ------------------------------ -------------- --------------
NOTE: Any country not listed above will be negotiated at time of investment.
Out of Pocket Expenses: As incurred (e.g., stamp taxes,
registration costs, script fees, special transportation
costs, etc.)
