Exhibit 99.(d)(2)
INVESTMENT ADVISORY AGREEMENT
THIS AGREEMENT, made this 20th day of August 2003, by and between
Advantus Horizon Fund, Inc., a Minnesota corporation (the "Fund") and Xxxxxxx &
Xxxx Xxx Investment Company, a Delaware corporation ("Management").
WITNESSETH:
1. INVESTMENT ADVISORY AND MANAGEMENT SERVICES.
The Fund hereby engages Management, and Management hereby agrees to
act, as investment advisor for, and to manage the affairs, business, and the
investment of the assets of the Fund.
The investment of the assets of the Fund shall at all times be subject
to the applicable provisions of the Articles of Incorporation, the Bylaws, the
Registration Statement, the current Prospectus and the Statement of Additional
Information, if any, of the Fund and shall conform to the investment objective
and policies of the Fund as set forth in such documents and as interpreted from
time to time by the Board of Directors of the Fund. Within the framework of the
objective and investment policies and restrictions of the Fund, Management shall
have the sole and exclusive responsibility for the management of the Fund's
portfolio and the making and execution of all investment decisions for the Fund.
Management shall report to the Board of Directors regularly at such times and in
such detail as the Board may from time to time determine to be appropriate, in
order to permit the Board to determine the adherence of Management to the
investment policies of the Fund.
Management shall, at its own expense, furnish the Fund office space and
all necessary office facilities, equipment, and personnel for servicing the
investments of the Fund. Management shall arrange for officers or employees of
Management to serve without compensation from the Fund as directors, officers,
or employees of the Fund if duly elected to such positions by the shareholders
or directors of the Fund.
Management hereby acknowledges that all records necessary in the
operation of the Fund, including records pertaining to its shareholders and
investments, are the property of the Fund, and in the event that a transfer of
management or investment advisory services to someone other than Management
should ever occur, Management will promptly, and at its own cost, take all steps
necessary to segregate such records and deliver them to the Fund.
In providing the services and assuming the obligations set forth
herein, Management may at its expense employ one or more Sub-Advisors, or may
enter into such service agreements as Management deems appropriate in connection
with the performance of its duties and obligations hereunder. Reference herein
to the duties and responsibilities of Management shall include any Sub-Advisor
employed by Management to the extent Management shall delegate such duties and
responsibilities to the Sub-Advisor. Any agreement between Management and any
Sub-Advisor shall be subject to the approval of the Fund, its Board of
Directors, and Shareholders as required by the Investment Company Act of 1940
(the "Investment Company Act"), as amended, and such Sub-Advisor shall at all
times be subject to the direction of the Board of Directors of the Fund and any
duly constituted committee thereof or any officer of the Fund acting pursuant to
like authority.
2. COMPENSATION FOR SERVICES.
In payment for the investment advisory and other services to be
rendered by Management hereunder, the Fund shall pay to Management a monthly
fee, which fee shall be paid to Management not later than the fifth business day
following the end of each calendar month in which said services were rendered.
Said monthly fee shall be based on the average of the net asset values of all of
the issued and outstanding shares of the Fund as determined as of the close of
each business day of the month pursuant to the Articles of Incorporation, Bylaws
and currently effective Prospectus and Statement of Additional Information, if
any, of the Fund. The amount of such fee as applied to the average daily value
of the net assets of the Fund on an annual rate, shall be as described in the
schedule below:
ADVISORY FEE AS PERCENTAGE
ASSETS OF AVERAGE NET ASSETS
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On the first $1 billion in assets .70%
On the next $1 billion in assets .65%
On all assets in excess of $2 billion .60%
The fee shall be pro rated for any fraction of a month at the commencement or
termination of this Agreement.
3. ALLOCATION OF EXPENSES.
(a) In addition to the fee described in Section 2 hereof, the Fund shall
pay all its costs and expenses which are not assumed by Management. The Fund
expenses include, by way of example, but not by way of limitation, all expenses
incurred in the operation of the Fund and any public offering of its shares,
including, among others, interest, taxes, brokerage fees and commissions, fees
of the directors who are not employees of Management or any of its affiliates,
expenses of directors' and shareholders' meetings, including the cost of
printing and mailing proxies, expenses of insurance premiums for fidelity and
other coverage, expenses of redemption of shares, expenses of issue and sale of
shares (to the extent not borne by the principal underwriter of the Fund's
shares under its agreement with the Fund), expenses of printing and mailing
stock certificates representing shares of the Fund, association membership dues,
charges of custodians, expenses for services of a transfer agent, dividend
disbursing (including reinvestment) agent and redemption agent, and bookkeeping,
auditing, and legal expenses. The Fund will also pay the fees and bear the
expense of registering and maintaining the registration of the Fund and its
shares with the Securities and Exchange Commission and registering or qualifying
its shares under state or other securities laws and the expense of preparing and
mailing Prospectuses and reports to shareholders.
(b) The principal underwriter of the Fund's shares shall bear all
advertising and promotional expenses in connection with the distribution of the
Fund's shares, including paying for Prospectuses and Statements of Additional
Information (if any) for new shareholders, shareholder reports for new
shareholders, and the costs of sales literature.
4. FREEDOM TO DEAL WITH THIRD PARTIES.
Management shall be free to render services to others similar to those
rendered under this Agreement or of a different nature except as such services
may conflict with the services to be rendered or the duties to be assumed
hereunder.
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5. EFFECTIVE DATE, DURATION AND TERMINATION OF AGREEMENT.
This Agreement shall become effective on the date of its execution
first written above.
Unless sooner terminated as hereinafter provided, this Agreement shall
continue in effect for a period of more than two years from the date of its
execution only so long as such continuance is specifically approved at least
annually by the Board of Directors of the Fund, or by the vote of a majority of
the outstanding voting securities of the Fund, provided that in either event
such continuance shall also be approved by the vote of a majority of the
directors who are not interested persons of Management or the Fund, cast in
person at a meeting called for the purpose of voting on such approval.
This Agreement may be terminated at any time, without the payment of
any penalty, by the Directors of the Fund or by the vote of a majority of the
outstanding voting securities of the Fund, or by Management, upon 60 days'
written notice to the other party. This Agreement will automatically terminate,
without the payment of any penalty, in the event of its assignment (as defined
in the Investment Company Act).
Wherever referred to in this Agreement, the vote or approval of the
holders of a majority of the outstanding voting securities of the Fund shall
mean the vote of 67% or more of such securities if the holders of more than 50%
of such securities are present in person or by proxy or the vote of more than
50% of such securities, whichever is the lesser.
6. AMENDMENTS TO AGREEMENT.
This Agreement may be amended by the parties only if such amendment is
specifically approved by the vote of a majority of the outstanding voting
securities of the Fund and by the vote of a majority of the directors of the
Fund who are not interested persons of any party to this Agreement cast in
person at a meeting called for the purpose of voting on such approval.
Notwithstanding the foregoing, this Agreement may be amended without Shareholder
approval to the extent such is permitted under then-current regulatory
interpretations of the Investment Company Act.
7. NOTICES.
Any notice under this Agreement shall be in writing, addressed,
delivered or mailed, postage prepaid, to the other party at such address as such
other party may designate in writing for receipt of such notice.
IN WITNESS WHEREOF, The Fund and Management have caused this Agreement
to be executed by their duly authorized officers as of the day and year first
above written.
Advantus Horizon Fund, Inc.
By____________________________________
Xxxxxx X. Xxxxxxx
Its President
Xxxxxxx & Xxxx Xxx Investment Company
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By____________________________________
_________________________
Its _____________________
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