AMENDED SUBADVISORY AGREEMENT
EX-28.d.3.a
THIS AGREEMENT is made and entered into as of the 1st day of May, 2007, as amended
June 16, 2010, by and among NATIONWIDE MUTUAL FUNDS (formerly Gartmore Mutual Funds) (the “Trust”),
a Delaware statutory trust, NATIONWIDE FUND ADVISORS (formerly Gartmore Mutual Fund Capital Trust)
(the “Adviser”) a Delaware business trust registered under the Investment Advisers Act of 1940, as
amended (the “Advisers Act”), and BLACKROCK INVESTMENT MANAGEMENT, LLC, a limited liability company
under the laws of the State of Delaware (the “Subadviser”), and also registered under the Advisers
Act.
W I T N E S S E T H :
WHEREAS, the Trust is registered with the U.S. Securities and Exchange Commission (the “SEC”)
as an open-end management investment company under the Investment Company Act of 1940, as amended
(the “1940 Act”);
WHEREAS, the Adviser has, pursuant to an Investment Advisory Agreement with the Trust dated as
of the 1st day of May, 2007 (the “Advisory Agreement”), been retained to act as
investment adviser for certain of the series of the Trust that are listed on Exhibit A to this
Agreement (each, a “Fund”);
WHEREAS, the Adviser represents that it is willing and possesses legal authority to render
such services subject to the terms and conditions set forth in this Agreement;
WHEREAS, the Trust and the Adviser each represent that the Advisory Agreement permits the
Adviser to delegate certain of its duties under the Advisory Agreement to other investment
advisers, subject to the requirements of the 1940 Act; and
WHEREAS, the Adviser desires to retain Subadviser to assist it in the provision of a
continuous investment program for that portion of the Fund’s assets that the Adviser will assign to
the Subadviser, and Subadviser is willing to render such services subject to the terms and
conditions set forth in this Agreement,
NOW, THEREFORE, the parties do mutually agree and promise as follows with respect to each
Fund:
1. Appointment as Subadviser. The Adviser hereby appoints the Subadviser to act as
investment adviser for and to manage that portion or all of the assets of the Fund that the Adviser
from time to time upon reasonable prior notice allocates to, and puts under the control of, the
Subadviser (the “Subadviser Assets”) subject to the supervision of the Adviser and the Board of
Trustees of the Trust and subject to the terms of this Agreement; and the Subadviser hereby accepts
such appointment. In such capacity, the Subadviser shall be responsible for the investment
management of the Subadviser Assets. It is recognized that the Subadviser and
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certain of its affiliates now act, and that from time to time hereafter may act, as investment
adviser to one or more other investment companies and to fiduciary or other managed accounts and
that the Adviser and the Trust cannot object to such activities.
2. Duties of Subadviser.
(a) Investments. The Subadviser is hereby authorized and directed and hereby agrees,
subject to the stated investment policies and restrictions of the Fund as set forth in the Fund’s
prospectus and statement of additional information as currently in effect and, as soon as practical
after the Trust, the Fund or the Adviser notifies the Subadviser thereof, as supplemented or
amended from time to time (collectively referred to hereinafter as the “Prospectus”) and subject to
the directions of the Adviser and the Trust’s Board of Trustees, to monitor on a continuous basis
the performance of the Subadviser Assets and to conduct a continuous program of investment,
evaluation and, if appropriate, sale and reinvestment of the Subadviser Assets. The Subadviser is
authorized, in its sole discretion and without prior consultation with the Adviser, to buy, sell,
lend and otherwise trade in any stocks, bonds and other securities and investment instruments on
behalf of the Subadviser Assets, in accordance with each Fund’s investment objective and policies.
The Adviser agrees to provide the Subadviser with such assistance as may be reasonably requested by
the Subadviser in connection with the Subadviser’s activities under this Agreement, including,
without limitation, providing information concerning the Fund, its funds available, or to become
available, for investment and generally as to the conditions of the Fund’s or the Trust’s affairs.
(b) Compliance with Applicable Laws and Governing Documents. In the performance of
its services under this Agreement, the Subadviser shall act in conformity with the Prospectus and
the Trust’s Agreement and Declaration of Trust and By-Laws as currently in effect and, as soon as
practical after the Trust, the Fund or the Adviser notifies the Subadviser thereof, as
supplemented, amended and/or restated from time to time (referred to hereinafter as the
“Declaration of Trust” and “By-Laws,” respectively) and with the instructions and directions
received in writing from the Adviser or the Trustees of the Trust and will conform to, and comply
with, the requirements of the 1940 Act, the Internal Revenue Code of 1986, as amended (the “Code”),
and all other applicable federal and state laws and regulations. Without limiting the preceding
sentence, the Adviser promptly shall notify the Subadviser as to any act or omission of the
Subadviser hereunder that the Adviser reasonably deems to constitute or to be the basis of any
noncompliance or nonconformance with any of the Trust’s Declaration of Trust and By-Laws and the
Prospectus, the instructions and directions received in writing from the Adviser or the Trustees of
the Trust or the 1940 Act, the Code, and all other applicable federal and state laws and
regulations. Notwithstanding the foregoing, the Adviser shall remain responsible for ensuring the
Fund’s and the Trust’s overall compliance with the 1940 Act, the Code and all other applicable
federal and state laws and regulations and the Subadviser is only obligated to comply with this
subsection (b) with respect to the Subadviser Assets. The Adviser timely will provide the
Subadviser with a copy of the minutes of the meetings of the Board of Trustees of the Trust to the
extent they may affect a Fund or the services of the Subadviser, copies of any financial statements
or reports made by a 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.
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The Adviser shall perform quarterly and annual tax compliance tests to ensure that the Fund
is in compliance with Subchapter M and Section 817(h) of the Code. In connection with such
compliance tests, the Adviser shall inform the Subadviser at least ten (10) business days prior to
a calendar quarter end if the Subadviser Assets are out of compliance with the diversification
requirements under either Subchapter M or Section 817(h). If the Adviser notifies the Subadviser
that the Subadviser Assets are not in compliance with such requirements noted above, the
Subadviser will take prompt action to bring the Subadviser Assets back into compliance within the
time permitted under the Code thereunder.
The Adviser will provide the Subadviser with reasonable advance notice of any change in a
Fund’s investment objectives, policies and restrictions as stated in the Prospectus, and the
Subadviser shall, in the performance of its duties and obligations under this Agreement, manage
the Subadviser Assets consistent with such changes, provided that the Subadviser has received
prompt notice of the effectiveness of such changes from the Trust or the Adviser. In addition to
such notice, the Adviser shall provide to the Subadviser a copy of a modified Prospectus
reflecting such changes. The Adviser acknowledges and will ensure that the Prospectus will at all
times be in compliance with all disclosure requirements under all applicable federal and state
laws and regulations relating to the Trust or the Fund, including, without limitation, the 1940
Act, and the rules and regulations thereunder, and that the Subadviser shall have no liability in
connection therewith, except as to the accuracy of material information furnished in writing by
the Subadviser to the Trust or to the Adviser specifically for inclusion in the Prospectus. The
Subadviser hereby agrees to provide to the Adviser in a timely manner such information relating to
the Subadviser and its relationship to, and actions for, the Trust as may be required to be
contained in the Prospectus or in the Trust’s Registration Statement on Form N-1A.
(c) Voting of Proxies. The Adviser hereby delegates to the Subadviser the Adviser’s
discretionary authority to exercise voting rights with respect to the securities and other
investments in the Subadviser Assets and authorizes the Subadviser to delegate further such
discretionary authority to a designee identified in a notice given to the Trust and the Adviser.
The Subadviser, including without limitation its designee, shall have the power to vote, either in
person or by proxy, all securities in which the Subadviser Assets may be invested from time to
time, and shall not be required to seek or take instructions from, the Adviser, the Fund or the
Trust or take any action with respect thereto. If both the Subadviser and another entity managing
assets of the Fund have invested the Fund’s assets in the same security, the Subadviser and such
other entity will each have the power to vote its pro rata share of the Fund’s security.
The Subadviser will establish a written procedure for proxy voting in compliance with current
applicable rules and regulations, including but not limited to Rule 30b1-4 under the 1940 Act.
The Subadviser will provide the Adviser or its designee, a copy of such procedure and establish a
process for the timely distribution of the Subadviser’s voting record with respect to the Fund’s
securities and other information necessary for the Fund to complete information required by Form
N-1A under the 1940 Act and the Securities Act of 1933, as amended (the “Securities Act”), Form
N-PX under the 1940 Act, and Form N-CSR under the Xxxxxxxx-Xxxxx Act of 2002, as amended,
respectively.
(d) Agent. Subject to any other written instructions of the Adviser or the Trust, the
Subadviser is hereby appointed the Adviser’s and the Trust’s agent and attorney-in-fact
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for the limited purposes of executing account documentation, agreements, contracts and other
documents as the Subadviser shall be requested by brokers, dealers, counterparties and other
persons in connection with its management of the Subadviser Assets. The Subadviser agrees to
provide the Adviser and the Trust with copies of any such agreements executed on behalf of the
Adviser or the Trust.
(e) Brokerage. The Subadviser is authorized, subject to the supervision of the
Adviser and the plenary authority of the Trust’s Board of Trustees, to establish and maintain
accounts on behalf of the Fund with, and place orders for the investment and reinvestment,
including without limitation purchase and sale of the Subadviser Assets with or through, such
persons, brokers (including, to the extent permitted by applicable law, any broker affiliated with
the Subadviser) or dealers (collectively “Brokers”) as Subadviser may elect and negotiate
commissions to be paid on such transactions. The Subadviser, however, is not required to obtain
the consent of the Adviser or the Trust’s Board of Trustees prior to establishing any such
brokerage account. The Subadviser shall place all orders for the purchase and sale of portfolio
investments for a Fund’s account with Brokers selected by the Subadviser. In the selection of such
Brokers and the placing of such orders, the Subadviser shall seek to obtain for the Fund the most
favorable price and execution available, except to the extent it may be permitted to pay higher
brokerage commissions for brokerage and research services, as provided below. In using its
reasonable efforts to obtain for a Fund the most favorable price and execution available, the
Subadviser, bearing in mind the best interests of each Fund at all times, shall consider all
factors it deems relevant, including price, the size of the transaction, the breadth and nature of
the market for the security, the difficulty of the execution, the amount of the commission, if any,
the timing of the transaction, market prices and trends, the reputation, experience and financial
stability of the Broker involved, and the quality of service rendered by the Broker in other
transactions. Notwithstanding the foregoing, neither the Trust, the Fund nor the Adviser shall
instruct the Subadviser to place orders with any particular Broker(s) with respect to the
Subadviser Assets. Subject to such policies as the Trustees may determine, or as may be mutually
agreed to by the Adviser and the Subadviser, the Subadviser is authorized but not obligated to
cause, and shall not be deemed to have acted unlawfully or to have breached any duty created by
this Agreement or otherwise solely by reason of its having caused, the Fund to pay a Broker that
provides brokerage and research services (within the meaning of Section 28(e) of the Securities
Exchange Act of 1934) to the Subadviser an amount of commission for effecting a Subadviser Assets
investment transaction that is in excess of the amount of commission that another Broker would have
charged for effecting that transaction if, but only if, the Subadviser determines in good faith
that such commission was reasonable in relation to the value of the brokerage and research services
provided by such Broker viewed in terms of either that particular transaction or the overall
responsibility of the Subadviser with respect to the accounts as to which it exercises investment
discretion.
It is recognized that the services provided by such Brokers may be useful to the Subadviser in
connection with the Subadviser’s services to other clients. On occasions when the Subadviser deems
the purchase or sale of a security to be in the best interests of the Fund with respect to the
Subadviser Assets 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
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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 each Fund and to such other
clients. It is recognized that in some cases, this procedure may adversely affect the price paid
or received by the Fund or the size of the position obtainable for, or disposed of by, the Fund
with respect to the Subadviser Assets.
(f) Securities Transactions. The Subadviser and any affiliated person of the
Subadviser will not purchase securities or other instruments from or sell securities or other
instruments to the Fund; provided, however, the Subadviser or any affiliated person of the
Subadviser may purchase securities or other instruments from or sell securities or other
instruments to the Fund if such transaction is permissible under applicable laws and regulations,
including, without limitation, the 1940 Act and the Advisers Act and the rules and regulations
promulgated thereunder.
The Subadviser, on its own behalf and with respect to its Access Persons (as defined in
subsection (e) of Rule 17j-1 under the 1940 Act), agrees to observe and comply with Rule 17j-1 and
its Code of Ethics (which shall comply in all material respects with Rule 17j-1), as the same may
be amended from time to time. On at least an annual basis, the Subadviser will comply with the
reporting requirements of Rule 17j-1, which may include either (i) certifying to the Adviser that
the Subadviser and its Access Persons have complied with the Subadviser’s Code of Ethics with
respect to the Subadviser Assets or (ii) identifying any violations which have occurred with
respect to the Subadviser Assets. The Subadviser will have also submitted its Code of Ethics for
its initial approval by the Board of Trustees no later than the date of execution of this agreement
and subsequently within six months of any material change thereto.
(g) Books and Records. The Subadviser shall maintain separate detailed records as are
required by applicable laws and regulations of all matters hereunder pertaining to the Subadviser
Assets (the “Fund’s Records”), including, without limitation, brokerage and other records of all
securities transactions. The Subadviser acknowledges that the Fund’s Records are property of the
Trust; except to the extent that the Subadviser is required to maintain the Fund’s Records under
the Advisers Act or other applicable law and except that the Subadviser, at its own expense, is
entitled to make and keep a copy of the Fund’s Records for its internal files. The Fund’s Records
shall be available to the Adviser or the Trust at any time upon reasonable request during normal
business hours and shall be available for telecopying promptly to the Adviser during any day that
the Fund is open for business as set forth in the Prospectus.
(h) Information Concerning Subadviser Assets and Subadviser. From time to time as the
Adviser or the Trust reasonably may request in good faith, the Subadviser will furnish the
requesting party reports on portfolio transactions and reports on the Subadviser Assets, all in
such reasonable detail as the parties may reasonably agree in good faith. The Subadviser will also
inform the Adviser in a timely manner of material changes in portfolio managers responsible for
Subadviser Assets, any changes in the ownership or management of the Subadviser, or of material
changes in the control of the Subadviser. Upon the Trust’s or the Adviser’s reasonable request,
the Subadviser will make available its officers and employees to meet with the Trust’s Board of
Trustees to review the Subadviser Assets via telephone on a quarterly basis and on a less frequent
basis as agreed upon by the parties in person.
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Subject to the other provisions of this Agreement, the Subadviser will also provide such
information or perform such additional acts with respect to the Subadviser Assets as are
reasonably required for the Trust or the Adviser to comply with their respective obligations under
applicable laws, including without limitation, the Code, the 1940 Act, the Advisers Act, and the
Securities Act, and any rule or regulation thereunder.
(i) Custody Arrangements. The Trust or the Adviser shall notify the Subadviser of the
identities of its custodian banks and the custody arrangements therewith with respect to the
Subadviser Assets and shall give the Subadviser written notice of any changes in such custodian
banks or custody arrangements. The Subadviser shall on each business day provide the Adviser and
the Trust’s custodian such information as the Adviser and the Trust’s custodian may reasonably
request in good faith relating to all transactions concerning the Subadviser Assets. The Trust
shall instruct its custodian banks to (A) carry out all investment instructions as may be directed
by the Subadviser with respect to the Subadviser Assets (which instructions may be orally given if
confirmed in writing); and (B) provide the Subadviser with all operational information necessary
for the Subadviser to trade the Subadviser Assets on behalf of the Fund. The Subadviser shall have
no liability for the acts or omissions of the authorized custodian(s), unless such act or omission
is required by and taken in reliance upon instructions given to the authorized custodian(s) by a
representative of the Subadviser properly authorized (pursuant to written instruction by the
Adviser) to give such instructions.
3. Independent Contractor. In the performance of its services hereunder, the
Subadviser is and shall be an independent contractor and unless otherwise expressly provided herein
or otherwise authorized in writing, shall have no authority to act for or represent the Fund, the
Trust or the Adviser in any way or otherwise be deemed an agent of the Fund, the Trust or the
Adviser.
4. Expenses. During the term of this Agreement, Subadviser will pay all expenses
incurred by it in connection with its activities under this Agreement. The Subadviser shall, at
its sole expense, employ or associate itself with such persons as it believes to be particularly
fitted to assist it in the execution of its duties under this Agreement. The Subadviser shall not
be responsible for the Trust’s, the Fund’s or Adviser’s expenses, which shall include, but not be
limited to, the cost of securities, commodities and other investments (including brokerage
commissions and other transaction charges, if any) purchased for a Fund and any losses incurred in
connection therewith, expenses of holding or carrying Subadviser Assets, including, without
limitation, expenses of dividends on stock borrowed to cover a short sale and interest, fees or
other charges incurred in connection with leverage and related borrowings with respect to the
Subadviser Assets, organizational and offering expenses (which include, but are not limited to,
out-of-pocket expenses, but not overhead or employee costs of the Subadviser); expenses for legal,
accounting and auditing services; taxes and governmental fees; dues and expenses incurred in
connection with membership in investment company organizations; costs of printing and distributing
shareholder reports, proxy materials, prospectuses, stock certificates and distribution of
dividends; charges of the Fund’s custodians and sub-custodians, administrators and
sub-administrators, registrars, transfer agents, dividend disbursing agents and dividend
reinvestment plan agents; payment for portfolio pricing services to a pricing agent, if any;
registration and filing fees of the SEC; expenses of registering or qualifying securities of the
Fund for sale in the various states; freight and other charges in connection with the shipment of
the Fund’s portfolio securities; fees and expenses of non-interested Trustees; salaries of
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shareholder relations personnel; costs of shareholders meetings; insurance; interest;
brokerage costs; and litigation and other extraordinary or non-recurring expenses. The Trust or
the Adviser, as the case may be, shall reimburse the Subadviser for any expenses of the Funds or
the Adviser as may be reasonably incurred by such Subadviser on behalf of the Fund or the Adviser.
The Subadviser shall keep and supply to the Trust and the Adviser reasonable records of all such
expenses.
5. Compensation. For the services provided pursuant to this Agreement, the Subadviser
is entitled to the fee listed for the Fund on Exhibit A hereto. Such fees will be computed daily
and paid no later than the seventh (7th) business day following the end of each month,
from the Adviser or the Trust, calculated at an annual rate based on the Subadviser Assets’ average
daily net assets.
The method of determining the net asset value of the Subadviser Assets for purposes hereof
shall be the same as the method of determining net asset value for purposes of establishing the
offering and redemption price of the shares of the Trust as described in the Fund’s Prospectus.
If this Agreement shall be effective for only a portion of a month with respect to the Fund, the
aforesaid fee shall be prorated for the portion of such month during which this Agreement is in
effect for the Fund.
6. Representations and Warranties of Subadviser. The Subadviser represents and
warrants to the Adviser and the Trust as follows:
(a) The Subadviser is registered as an investment adviser under the Advisers Act;
(b) The Subadviser is registered as a Commodity Trading Advisor under the Commodity Exchange
Act, as amended (the “CEA”), with the Commodity Futures Trading Commission (the “CFTC”), or is not
required to file such registration;
(c) The Subadviser is a limited liability company duly organized and properly registered and
operating under the laws of the State of Delaware with the power to own and possess its assets and
carry on its business as it is now being conducted and as proposed to be conducted hereunder;
(d) The execution, delivery and performance by the Subadviser of this Agreement are within the
Subadviser’s powers and have been duly authorized by all necessary actions of its directors or
shareholders, and no action by, or in respect of, or filing with, any governmental body, agency or
official is required on the part of the Subadviser for execution, delivery and performance by the
Subadviser of this Agreement, and the execution, delivery and performance by the Subadviser of this
Agreement do not contravene or constitute a violation of, or a material default under, (i) any
provision of applicable law, rule or regulation, (ii) the Subadviser’s governing instruments, or
(iii) any agreement, judgment, injunction, order, decree or other instrument binding upon the
Subadviser; and
(e) The Form ADV of the Subadviser provided to the Adviser and the Trust is a true and
complete copy of the form, including that part or parts of the Form ADV filed with the SEC, that
part or parts maintained in the records of the Adviser, and/or that part or parts provided or
offered to clients, in each case as required under the Advisers Act and rules
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thereunder, and the information contained therein is accurate and complete in all material
respects and does not omit to state any material fact necessary in order to make the statements
made, in light of the circumstances under which they were made, not misleading.
7. Representations and Warranties of Adviser. The Adviser represents and warrants to
the Subadviser as follows:
(a) The Adviser is registered as an investment adviser under the Advisers Act;
(b) The Adviser has filed a notice of exemption pursuant to Rule 4.14 under the CEA with the
CFTC and the National Futures Association or is not required to file such exemption;
(c) The Adviser is a business trust duly organized and validly existing under the laws of the
State of Delaware with the power to own and possess its assets and carry on its business as it is
now being conducted and as proposed to be conducted hereunder;
(d) The execution, delivery and performance by the Adviser of this Agreement are within the
Adviser’s powers and have been duly authorized by all necessary action on the part of its
directors, shareholders or managing unitholder, and no action by, or in respect of, or filing with,
any governmental body, agency or official is required on the part of the Adviser for the execution,
delivery and performance by the Adviser of this Agreement, and the execution, delivery and
performance by the Adviser of this Agreement do not contravene or constitute a violation of, or a
material default under, (i) any provision of applicable law, rule or regulation, (ii) the Adviser’s
governing instruments, or (iii) any agreement, judgment, injunction, order, decree or other
instrument binding upon the Adviser;
(e) The Form ADV of the Adviser provided to the Subadviser and the Trust is a true and
complete copy of the form, including that part or parts of the Form ADV filed with the SEC, that
part or parts maintained in the records of the Adviser, and/or that part or parts provided or
offered to clients, in each case as required under the Advisers Act and rules thereunder, and the
information contained therein is accurate and complete in all material respects and does not omit
to state any material fact necessary in order to make the statements made, in light of the
circumstances under which they were made, not misleading;
(f) The Adviser acknowledges that it received a copy of the Subadviser’s Form ADV prior to the
execution of this Agreement; and
(g) The Adviser and the Trust have duly entered into the Advisory Agreement pursuant to which
the Trust authorized the Adviser to delegate certain of its duties under the Advisory Agreement to
other investment advisers, including without limitation, the appointment of a subadviser with
respect to assets of each of the Trust’s mutual fund series, including without limitation the
Adviser’s entering into and performing this Agreement.
8. Representations and Warranties of the Trust. The Trust represents and warrants to
the Adviser and the Subadviser as follows:
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(a) The Trust is a statutory trust duly formed and validly existing under the laws of the
State of Delaware with the power to own and possess its assets and carry on its business as it is
now being conducted and as proposed to be conducted hereunder;
(b) The Trust is registered as an investment company under the 1940 Act and has elected to
qualify and has qualified, together with the Fund, as a regulated investment company under the
Code, and the Fund’s shares are registered under the Securities Act;
(c) The execution, delivery and performance by the Trust of this Agreement are within the
Trust’s powers and have been duly authorized by all necessary action on the part of the Trust and
its Board of Trustees, and no action by, or in respect of, or filing with, any governmental body,
agency or official is required on the part of the Trust for the execution, delivery and performance
by the Adviser of this Agreement, and the execution, delivery and performance by the Trust of this
Agreement do not contravene or constitute a default under (i) any provision of applicable law, rule
or regulation, (ii) the Trust’s governing instruments, or (iii) any agreement, judgment,
injunction, order, decree or other instrument binding upon the Trust; and
(d) The Trust acknowledges that it received a copy of the Subadviser’s Form ADV prior to the
execution of this Agreement.
9. Survival of Representations and Warranties; Duty to Update Information. All
representations and warranties made by the Subadviser, the Adviser and the Trust pursuant to the
recitals above and Sections 6, 7 and 8, respectively, shall survive for the duration of this
Agreement and the parties hereto shall promptly notify each other in writing upon becoming aware
that any of the foregoing representations and warranties are no longer true or accurate in all
material effects.
10. Liability and Indemnification.
(a) Liability. The Subadviser shall exercise its best judgment in rendering its
services in accordance with the terms of this Agreement, but otherwise, in the absence of willful
misfeasance, bad faith or gross negligence on the part of the Subadviser or a reckless disregard of
its duties hereunder, the Subadviser, each of its affiliates and all respective partners, officers,
directors and employees (“Affiliates”) and each person, if any, who within the meaning of the
Securities Act controls the Subadviser (“Controlling Persons”), if any, shall not be subject to any
expenses or liability to the Adviser, any other subadviser to a Fund, the Trust or a Fund or any of
a Fund’s shareholders, in connection with the matters to which this Agreement relates, including
without limitation for any losses that may be sustained in the purchase, holding or sale of
Subadviser Assets. The Adviser shall exercise its best judgment in rendering its obligations in
accordance with the terms of this Agreement, but otherwise (except as set forth in Section 10(c)
below), in the absence of willful misfeasance, bad faith or gross negligence on the part of the
Adviser or a reckless disregard of its duties hereunder, the Adviser, any of its Affiliates and
each of the Adviser’s Controlling Persons, if any, shall not be subject to any liability to the
Subadviser, for any act or omission in the case of, or connected with, rendering services hereunder
or for any losses that may be sustained in the purchase, holding or sale of Subadviser Assets.
Notwithstanding the foregoing, nothing herein shall relieve the Adviser and the
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Subadviser from any of their obligations under applicable law, including, without limitation,
the federal and state securities laws and the CEA.
(b) Indemnification. The Subadviser shall indemnify the Adviser, the Trust and the
Fund, and their respective Affiliates and Controlling Persons for any liability and expenses,
including without limitation reasonable attorneys’ fees and expenses, which the Adviser, the Trust
and/or the Fund and their respective Affiliates and Controlling Persons may sustain as a result of
the Subadviser’s willful misfeasance, bad faith, gross negligence, reckless disregard of its duties
hereunder or violation of applicable law, including, without limitation, the federal and state
securities laws or the CEA. The Adviser shall indemnify the Subadviser, its Affiliates and its
Controlling Persons, for any liability and expenses, including without limitation reasonable
attorneys’ fees and expenses, which may be sustained as a result of the Adviser’s willful
misfeasance, bad faith, gross negligence, reckless disregard of its duties hereunder or violation
of applicable law, including, without limitation, the federal and state securities laws or the CEA.
The Trust shall indemnify the Subadviser, its Affiliates and its Controlling Persons, for any
liability and expenses, including without limitation reasonable attorneys’ fees and expenses, which
may be sustained as a result of the Trust’s willful misfeasance, bad faith, gross negligence,
reckless disregard of its duties hereunder or violation of applicable law, including, without
limitation, the federal and state securities laws or the CEA.
(c) The Subadviser shall not be liable to the Adviser for (i) any acts of the Adviser or any
other subadviser to a Fund with respect to the portion of the assets of that Fund not managed by
Subadviser, or (ii) acts of the Subadviser which result from acts of the Adviser, including, but
not limited to, a failure of the Adviser to provide accurate and current information with respect
to any records maintained by the Adviser or any other subadviser to a Fund, which records are not
also maintained by or otherwise available to the Subadviser upon reasonable request. The Adviser
agrees that Subadviser shall manage the Subadviser Assets as if they were a separate operating Fund
as set forth in Section 2(b) of this Agreement. The Adviser shall indemnify the Subadviser, its
Affiliates and Controlling Persons from any liability arising from the conduct of the Adviser and
any other subadviser with respect to the portion of the Fund’s assets not allocated to the
Subadviser.
11. Duration and Termination.
(a) Duration. Unless sooner terminated, this Agreement shall continue until May 1,
2011, with respect to any Fund covered by this Agreement initially and, for any Fund subsequently
added to this Agreement, an initial period of no more than two years that terminates on the second
May 1st that occurs following the effective date of this Agreement with respect to such
Fund, and thereafter shall continue automatically for successive annual periods with respect to
each of the Funds, provided such continuance is specifically approved at least annually by the
Trust’s Board of Trustees or vote of the lesser of (a) 67% of the shares of the Fund represented at
a meeting if holders of more than 50% of the outstanding shares of the Fund are present in person
or by proxy or (b) more than 50% of the outstanding shares of the Fund; provided that in either
event its continuance also is approved by a majority of the Trust’s Trustees who are not
“interested persons” (as defined in the 0000 Xxx) of any party to this Agreement, by vote cast in
person at a meeting called for the purpose of voting on such approval.
- 10 -
(b) Termination. Notwithstanding whatever may be provided herein to the contrary,
this Agreement may be terminated at any time with respect to the Fund, without payment of any
penalty:
(i) By vote of a majority of the Trust’s Board of Trustees, or by “vote of a majority of the
outstanding voting securities” of the Fund (as defined in the 1940 Act), or by the Adviser, in each
case, upon not more than 60 days’ written notice to the Subadviser;
(ii) By any party hereto immediately upon written notice to the other parties in the event of
a breach of any provision of this Agreement by either of the other parties; or
(iii) By the Subadviser upon not more than 60 days’ written notice to the Adviser and the
Trust.
This Agreement shall not be assigned (as such term is defined in the 0000 Xxx) and shall
terminate automatically in the event of its assignment or upon the termination of the Advisory
Agreement.
12. Duties of the Adviser. The Adviser shall continue to have responsibility for all
services to be provided to the Fund pursuant to the Advisory Agreement and shall oversee and review
the Subadviser’s performance of its duties under this Agreement. Nothing contained in this
Agreement shall obligate the Adviser to provide any funding or other support for the purpose of
directly or indirectly promoting investments in the Fund.
13. Reference to Adviser and Subadviser.
(a) Neither the Adviser nor any Affiliate or agent of the Subadviser shall make reference to
or use the name of Subadviser or any of its Affiliates, or any of their clients, except references
concerning the identity of and services provided by the Subadviser to a Fund, which references
shall not differ in substance from those included in the Prospectus and this Agreement, in any
advertising or promotional materials without the prior approval of Subadviser, which approval shall
not be unreasonably withheld or delayed. The Adviser hereby agrees to make all reasonable efforts
to cause the Fund and any Affiliate thereof to satisfy the foregoing obligation.
(b) Neither the Subadviser nor any Affiliate or agent of Subadviser shall make reference to or
use the name of the Adviser or any of its Affiliates, or any of their clients, except references
concerning the identity of and services provided by the Adviser to a Fund or to the Subadviser,
which references shall not differ in substance from those included in the Prospectus and this
Agreement, in any advertising or promotional materials without the prior approval of Adviser, which
approval shall not be unreasonably withheld or delayed. The Subadviser hereby agrees to make all
reasonable efforts to cause any Affiliate of the Subadviser to satisfy the foregoing obligation.
14. Amendment. This Agreement may be amended by mutual consent of the parties,
provided that the terms of any material amendment shall be approved by: (a) the Trust’s Board of
Trustees or by a vote of a majority of the outstanding voting securities of the Funds (as required
by the 1940 Act), and (b) the vote of a majority of those Trustees of the Trust who are
- 11 -
not “interested persons” of any party to this Agreement cast in person at a meeting called for
the purpose of voting on such approval, if such approval is required by applicable law.
15. Confidentiality. Subject to the duties of the Adviser, the Trust and the
Subadviser to comply with applicable law, including any demand of any regulatory or taxing
authority having jurisdiction, the parties hereto shall treat as confidential and shall not
disclose any and all information pertaining to the Fund and the actions of the Subadviser, the
Adviser and the Fund in respect thereof; except to the extent:
(a) Authorized. The Adviser or the Trust has authorized such disclosure;
(b) Court or Regulatory Authority. Disclosure of such information is expressly
required or requested by a court or other tribunal of competent jurisdiction or applicable federal
or state regulatory authorities;
(c) Publicly Known Without Breach. Such information becomes known to the general
public without a breach of this Agreement or a similar confidential disclosure agreement regarding
such information;
(d) Already Known. Such information already was known by the party prior to the date
hereof;
(e) Received From Third Party. Such information was or is hereafter rightfully
received by the party from a third party (expressly excluding the Fund’s custodian, prime broker
and administrator) without restriction on its disclosure and without breach of this Agreement or of
a similar confidential disclosure agreement regarding them; or
(f) Independently Developed. The party independently developed such information.
16. Notice. Any notice that is required to be given by the parties to each other
under the terms of this Agreement shall be in writing, delivered, or mailed postpaid to the other
parties, or transmitted by facsimile with acknowledgment of receipt, to the parties at the
following addresses or facsimile numbers, which may from time to time be changed by the parties by
notice to the other party:
| (a) | If to the Subadviser: | ||
| BlackRock Investment Management, LLC Office of General Counsel 000 Xxxxxxxx Xxxx Xxxx Xxxxxxxxxx, XX 00000 |
|||
| (b) | If to the Adviser: | ||
| Nationwide Fund Advisors 0000 Xxxxxxxxxxx Xxxxx, Xxxxx 000 Xxxx xx Xxxxxxx, XX 00000 Attention: Legal Department |
|||
| Facsimile: (000) 000-0000 |
- 12 -
| (c) | If to the Trust: | ||
| Nationwide Mutual Funds 0000 Xxxxxxxxxxx Xxxxx, Xxxxx 000 Xxxx xx Xxxxxxx, XX 00000 Attention: Legal Department Facsimile: (000) 000-0000 |
17. Jurisdiction. This Agreement shall be governed by and construed in accordance
with substantive laws of the State of Delaware without reference to choice of law principles
thereof and in accordance with the 1940 Act. In the case of any conflict, the 1940 Act shall
control.
18. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, all of which shall together constitute one and the same
instrument.
19. Certain Definitions. For the purposes of this Agreement and except as otherwise
provided herein, “interested person,” “affiliated person,” and “assignment”
shall have their respective meanings as set forth in the 1940 Act, subject, however, to such
exemptions as may be granted by the SEC.
20. Captions. The captions herein are included for convenience of reference only and
shall be ignored in the construction or interpretation hereof.
21. Severability. If any provision of this Agreement shall be held or made invalid by
a court decision or applicable law, the remainder of the Agreement shall not be affected adversely
and shall remain in full force and effect.
22. Entire Agreement. This Agreement, together with all exhibits, attachments and
appendices, contains the entire understanding and agreement of the parties with respect to the
subject matter hereof.
23. Nationwide Mutual Funds and its Trustees. The terms “Nationwide Mutual Funds” and
the “Trustees of Nationwide Mutual Funds” refer respectively to the Trust created and the
Trustees, as trustees but not individually or personally, acting from time to time under the
Amended and Restated Declaration of Trust dated as of September 30, 2004, as has been or may be
amended and/or restated from time to time, and to which reference is hereby made.
24. Multi-Manager Funds. In connection with securities transactions for the Fund, the
Subadviser that is (or whose affiliated person is) entering into the transaction, and any other
investment manager that is advising an affiliate of the Fund (or portion of the Fund)
(collectively, the “Managers” for the purposes of this section) entering into the transaction are
prohibited from consulting with each other concerning transactions for the Fund in securities or
other assets and,
- 13 -
if both Managers are responsible for providing investment advice to the Fund, the Manager’s
responsibility in providing advice is expressly limited to a discrete portion of the Fund’s
portfolio that it manages.
This prohibition does not apply to communications by the Adviser in connection with the
Adviser’s (i) overall supervisory responsibility for the general management and investment of the
Fund’s assets; (ii) determination of the allocation of assets among the Manager(s), if any; and
(iii) investment discretion with respect to the investment of Fund assets not otherwise assigned to
a Manager.
[The remainder of this page is intentionally left blank.]
- 14 -
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
written above.
| TRUST | ||||||
| NATIONWIDE MUTUAL FUNDS | ||||||
| By: | /s/Xxxxxxx X. Xxxxxxxx
|
|||||
| Name: | Xxxxxxx X. Xxxxxxxx | |||||
| Title: | President | |||||
| ADVISER | ||||||
| NATIONWIDE FUND ADVISORS | ||||||
| By: | /s/Xxxxxxx X. Xxxxxxxx
|
|||||
| Name: | Xxxxxxx X. Xxxxxxxx | |||||
| Title: | President | |||||
| SUBADVISER | ||||||
| BLACKROCK INVESTMENT MANAGEMENT, LLC | ||||||
| By: | /s/Xxxxx Xxxxxxxx
|
|||||
| Name: | Xxxxx Xxxxxxxx | |||||
| Title: | Managing Director | |||||
- 15 -
EXHIBIT A
AMENDED SUBADVISORY AGREEMENT
BETWEEN
NATIONWIDE FUND ADVISORS
NATIONWIDE MUTUAL FUNDS
AND BLACKROCK INVESTMENT MANAGEMENT, LLC
AMENDED SUBADVISORY AGREEMENT
BETWEEN
NATIONWIDE FUND ADVISORS
NATIONWIDE MUTUAL FUNDS
AND BLACKROCK INVESTMENT MANAGEMENT, LLC
Effective May 1, 2007
(as amended June 16, 2010)*
(as amended June 16, 2010)*
| Funds of the Trust | Advisory Fees | |
Nationwide S&P 500 Index Fund
|
0.015% on Aggregate Subadviser Assets† up to $1 billion; 0.01% on Aggregate Subadviser Assets† of $1 billion and more but less than $2 billion; and 0.0075% on Aggregate Subadviser Assets† of $2 billion and more. |
|
Nationwide Small Cap Index
Fund
|
0.05% on Aggregate Subadviser Assets† up to $500 million; 0.04% on Aggregate Subadviser Assets† of $500 million and more but less than $1 billion; and 0.03% on Aggregate Subadviser Assets† of $1 billion and more. |
|
Nationwide Mid Cap Market
Index Fund
|
0.06% on Aggregate Subadviser Assets† up to $500 million; 0.05% on Aggregate Subadviser Assets† of $500 million and more but less than $1 billion; and 0.03% on Aggregate Subadviser Assets† of $1 billion and more. |
|
Nationwide International
Index Fund
|
0.07% on Aggregate Subadviser Assets† up to $1 billion; 0.065% on Aggregate Subadviser Assets† of $1 billion and more but less than $2 billion; and 0.04% on Aggregate Subadviser Assets† of $2 billion and more. |
|
Nationwide Bond Index Fund
|
0.04% on Aggregate Subadviser Assets† up to $1 billion; 0.03% on Aggregate Subadviser Assets† of $1 billion and more but less than $2 billion; and 0.02% on Aggregate Subadviser Assets† of $2 billion and more. |
| * | As approved at the Board of Trustees Meeting held on June 16, 2010. | |
| † | Reference is hereby made to a Subadvisory Agreement between Nationwide Fund Advisors, Nationwide Variable Insurance Trust and BlackRock Investment Management, LLC dated May 1, 2007, as amended June 16, 2010 (the “NVIT Subadvisory Agreement”). |
For purposes of the Nationwide S&P 500 Index Fund, the term “Aggregate Subadviser Assets” shall
mean the aggregate amount resulting from the combination of Subadviser Assets of the Nationwide S&P
500 Index Fund and the Subadviser Assets (as defined in the NVIT Subadvisory Agreement) of the NVIT
S&P 500 Index Fund.
For purposes of the Nationwide Small Cap Index Fund, the term “Aggregate Subadviser Assets” shall
mean the aggregate amount resulting from the combination of Subadviser Assets of the Nationwide
Small Cap Index Fund and the Subadviser Assets (as defined in the NVIT Subadvisory Agreement) of the NVIT Small Cap
Index Fund.
For purposes of the Nationwide Mid Cap Market Index Fund, the term “Aggregate Subadviser Assets”
shall mean the aggregate amount resulting from the combination of Subadviser Assets of the
Nationwide Mid Cap Market Index Fund and the Subadviser Assets (as defined in the NVIT Subadvisory
Agreement) of the NVIT Mid Cap Index Fund.
For purposes of the Nationwide International Index Fund, the term “Aggregate Subadviser Assets”
shall mean the aggregate amount resulting from the combination of Subadviser Assets of the
Nationwide International Index Fund and the Subadviser Assets (as defined in the NVIT Subadvisory
Agreement) of the NVIT International Index Fund.
For purposes of the Nationwide Bond Index Fund, the term “Aggregate Subadviser Assets” shall mean
the aggregate amount resulting from the combination of Subadviser Assets of the Nationwide Bond
Index Fund and the Subadviser Assets (as defined in the NVIT Subadvisory Agreement) of the NVIT
Bond Index Fund.
| TRUST | ||||||
| NATIONWIDE MUTUAL FUNDS | ||||||
| By: | /s/Xxxxxxx X. Xxxxxxxx
|
|||||
| Name: | Xxxxxxx X. Xxxxxxxx | |||||
| Title: | President | |||||
| ADVISER | ||||||
| NATIONWIDE FUND ADVISORS | ||||||
| By: | /s/Xxxxxxx X. Xxxxxxxx
|
|||||
| Name: | Xxxxxxx X. Xxxxxxxx | |||||
| Title: | President | |||||
| SUBADVISER | ||||||
| BLACKROCK INVESTMENT MANAGEMENT, LLC | ||||||
| By: | /s/Xxxxx Xxxxxxxx
|
|||||
| Name: | Xxxxx Xxxxxxxx | |||||
| Title: | Managing Director | |||||
