Exhibit h(vii)
SUB-ACCOUNTING SERVICES AGREEMENT
FOR
THE PREMIER CLASS AND RETAIL CLASS
OF
CIGNA FUNDS GROUP
AGREEMENT made as of April 1, 2004 between CIGNA Funds Group (the "Trust"),
a Massachusetts business trust engaged in business as an open-end management
investment company registered under the Investment Company Act of 1940, as
amended (the "Act") on behalf of the series listed on Schedule A attached hereto
and made a part of this agreement (the "Funds") and Prudential Retirement
Brokerage Services, Inc., a Delaware corporation ("PRBS");
WHEREAS, shares of the Funds are or may be issued in various classes,
designated the institutional class, the premier class and the retail class;
WHEREAS, the Trust, on behalf of the Funds, desires to appoint PRBS to
provide sub-accounting services to holders of the premier class and the retail
class shares of the Funds under the terms and conditions described herein:
NOW, THEREFORE, the Trust hereby adopts this Sub-Accounting Services
Agreement (the "Agreement") for holders of the premier class and the retail
class shares of the Funds and PRBS hereby agrees to provide or cause to be
provided the shareholder sub-accounting services described herein, subject to
the following terms and conditions:
1. PRBS shall provide or shall arrange to be provided shareholder
sub-accounting services to the premier class and the retail class of the Funds.
The sub-accounting services shall include the following:
a. Maintaining books and records with respect to each beneficial owner of
premier class and retail class shares of the Funds;
b. Preparing and mailing summary monthly statements (or quarterly
statements if no activity occurs in the premier class or retail class
shares of the Funds during any month covered by the statement) to
every beneficial owner;
c. Generating and mailing confirmations of each purchase or sale of
premier class and retail class shares of the Funds for each beneficial
owner; and
d. Such other services normally and customarily provided by shareholder
sub-accounting service providers on behalf of mutual funds as may be
agreed upon by the Funds and PRBS.
2. As full compensation for services provided under this Agreement, the
premier class and the retail class of the Funds shall pay PRBS, on a quarterly
basis, in arrears, a periodic fee computed at an annual rate as set forth on
Schedule A attached hereto of the applicable percentage of average daily net
assets during each fiscal year.
Exhibit h(vii)
3. This Agreement shall not take effect until it has been approved by
votes of a majority of both (a) the Trustees of the Trust, and (b) those
Trustees of the Trust who are not "interested persons" of the Trust (as defined
in the Act) and who have no direct or indirect financial interest in the
operation of the Agreement (the "Independent Trustees").
4. This Agreement shall continue in full force and effect for so long as
such continuance is specifically approved at least annually in the manner
provided for approval of the Agreement in Paragraph 3.
5. This Agreement may be terminated at any time, without payment of any
penalty, by vote of a majority of the independent Trustees or by a vote of a
majority of the outstanding voting securities of the affected class of a Fund on
not more than 30 days' written notice to PRBS, or by PRBS on 30 day's notice to
the Trust.
6. The Trust shall preserve copies of this Agreement and any related
agreements, for a period of not less than six years from the date of this
Agreement, the first two years of which shall be in an easily accessible place.
7. This Agreement may be amended at any time provided that no material
amendment to the Agreement shall be made unless approved in the manner provided
for approval in Paragraph 3 hereof.
8. Copies of the Master Trust Agreement establishing the Trust are on
file with the Secretary of the Commonwealth of Massachusetts, and notice is
hereby given that this document is executed on behalf of the Trust by an officer
of the Trust and not individually and that any obligations of or arising out of
this document are not binding upon any of the Trustees, officers, shareholders,
employees or agents of the Trust individually, but are binding only upon the
assets and property of the Trust.
IN WITNESS WHEREOF, the Trust, on behalf of the Funds, and PRBS have
executed this Sub-Accounting Services Agreement as of the date first above
written.
CIGNA FUNDS GROUP
By: /s/ Xxxxxxx X. Xxxxx
--------------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Vice President and Secretary
PRUDENTIAL RETIREMENT BROKERAGE SERVICES, INC.
By: /s/ Xxxx X. Xxx
--------------------------------------
Name: Xxxx X. Xxx
Title: President
-2-
Exhibit h(vii)
SCHEDULE A TO SUB-ACCOUNTING SERVICES AGREEMENT
Balanced Fund (Sub-Advised by Wellington Management) 0.20
TimesSquare Core Plus Bond Fund 0.25
International Blend\Bank of Ireland Fund 0.25*
Large Cap Growth\Xxxxxx Xxxxxxx Fund 0.20
Large Cap Value\Xxxx X. Xxxxx & Co. Fund 0.20
S&P 500 Index Fund 0.20**
Money Market Fund 0.25
Small Cap Growth\TimesSquare Fund 0.20
Small Cap Value\Perkins, Wolf, XxXxxxxxx Fund 0.20
* subject to reduction to 0.20 to maintain compliance with applicable Fund
operating expense limitation.
** subject to reduction to 0.10 to maintain compliance with applicable Fund
operating expense limitation.
