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Exhibit (d)(1)
INVESTMENT ADVISORY AGREEMENT
AGREEMENT made as of May 12, 2001 between AMSOUTH FUNDS, a
Massachusetts business trust (herein called the "Trust"), and AMSOUTH INVESTMENT
MANAGEMENT COMPANY, an Alabama corporation, (herein called the "Investment
Advisor").
WHEREAS, the Trust is registered as an open-end, diversified,
management investment company under the Investment Company Act of 1940, as
amended ("1940 Act"); and
WHEREAS, the Trust desires to retain the Investment Advisor to furnish
investment advisory services to certain investment portfolios of the Trust (the
"Funds") and the Investment Advisor represents that it is willing and possesses
legal authority to so furnish such services;
NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, it is agreed between the parties hereto as follows:
1. APPOINTMENT. The Trust hereby appoints the Investment Advisor
to act as investment advisor to the Funds identified on Schedule A hereto for
the period and on the terms set forth in this Agreement. The Investment Advisor
accepts such appointment and agrees to furnish the services herein set forth for
the compensation herein provided.
2. DELIVERY OF DOCUMENTS. The Trust has furnished the Investment
Advisor with copies properly certified or authenticated of each of the
following:
(a) the Trust's Declaration of Trust, as executed on October
1, 1987 and as filed with the Secretary of State of The Commonwealth of
Massachusetts on October 2, 1987, and all amendments thereto or restatements
thereof (such Declaration, as presently in effect and as it shall from time to
time be amended or restated, is herein called the "Declaration of Trust");
(b) the Trust's By-laws and amendments thereto;
(c) resolutions of the Trust's Board of Trustees authorizing
the appointment of the Investment Advisor and approving this Agreement;
(d) the Trust's Notification of Registration on Form N-8A
under the 1940 Act as filed with the Securities and Exchange Commission on May
4, 1988 and all amendments thereto;
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(e) the Trust's Registration Statement on Form N-lA under the
Securities Act of 1933, as amended ("1933 Act"), (File No. 33-21660) and under
the 1940 Act as filed with the Securities and Exchange Commission and all
amendments thereto; and
(f) the Funds' most recent prospectuses and Statement of
Additional Information (such prospectus and Statement of Additional Information,
as presently in effect, and all amendments and supplements thereto are herein
collectively called the "Prospectus").
The Trust will furnish the Investment Advisor from time to
time with copies of all amendments of or supplements to the foregoing.
3. MANAGEMENT. Subject to the supervision of the Trust's Board of
Trustees, the Investment Advisor will provide a continuous investment program
for each Fund, including investment research and management with respect to all
securities and investments and cash equivalents in said Funds. The Investment
Advisor will determine from time to time what securities and other investments
will be purchased, retained or sold by the Trust with respect to the Funds. The
Investment Advisor will provide the services under this Agreement in accordance
with each Fund's investment objective, policies, and restrictions as stated in
the Prospectus and resolutions of the Trust's Board of Trustees. The Investment
Advisor further agrees that it:
(a) will use the same skill and care in providing such
services as it uses in providing services to fiduciary accounts for
which it has investment responsibilities;
(b) will conform with all applicable Rules and Regulations of
the Securities and Exchange Commission and in addition will conduct its
activities under this Agreement in accordance with any applicable regulations of
any governmental authority pertaining to the investment advisory activities of
the Investment Advisor;
(c) will not make loans to any person to purchase or carry
units of beneficial interest in the Trust or make loans to the Trust;
(d) will place orders pursuant to its investment
determinations for the Trust either directly with the issuer or with any broker
or dealer. In placing orders with brokers and dealers, the Investment Advisor
will attempt to obtain prompt execution of orders in an effective manner at the
most favorable price. Consistent with this obligation, when the execution and
price offered by two or more brokers or dealers are comparable, the Investment
Advisor may, in its discretion, purchase and sell portfolio securities to and
from brokers and dealers who provide the Investment Advisor with research advice
and other services. In no instance will portfolio securities be purchased from
or sold to BISYS
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Fund Services, Inc., AmSouth Investment Management Company, or any affiliated
person of either the Trust, BISYS Fund Services, Inc. or AmSouth Investment
Management Company;
(e) will maintain all books and records with respect to the
Trust's securities transactions and will furnish the Trust's Board of Trustees
such periodic and special reports as the Board may request;
(f) will treat confidentially and as proprietary information
of the Trust all records and other information relative to the Trust and prior,
present, or potential interestholders, and will not use such records and
information for any purpose other than performance of its responsibilities and
duties hereunder, except after prior notification to and approval in writing by
the Trust, which approval shall not be unreasonably withheld and may not be
withheld where the Investment Advisor may be exposed to civil or criminal
contempt proceedings for failure to comply, when requested to divulge such
information by duly constituted authorities, or when so requested by the Trust;
and
(g) will maintain its policy and practice of conducting its
fiduciary functions independently. In making investment recommendations for the
Trust, the Investment Advisor's personnel will not inquire or take into
consideration whether the issuers of securities proposed for purchase or sale
for the Trust's account are customers of the Investment Advisor or of its parent
or its subsidiaries or affiliates. In dealing with such customers, the
Investment Advisor and its parent, subsidiaries, and affiliates will not inquire
or take into consideration whether securities of those customers are held by the
Trust.
4. SERVICES NOT EXCLUSIVE. The investment management services furnished
by the Investment Advisor hereunder are not to be deemed exclusive, and the
Investment Advisor shall be free to furnish similar services to others so long
as its services under this Agreement are not impaired thereby.
5. BOOKS AND RECORDS. In compliance with the requirements of Rule 31a-3
under the 1940 Act, the Investment Advisor hereby agrees that all records which
it maintains for the Trust are the property of the Trust and further agrees to
surrender promptly to the Trust any of such records upon the Trust's request.
The Investment Advisor further agrees to preserve for the periods prescribed by
Rule 31a-2 under the 1940 Act the records required to be maintained by Rule
31a-1 under the 1940 Act.
6. EXPENSES. During the term of this Agreement, the Investment Advisor
will pay all expenses incurred by it in connection with its activities under
this Agreement other than the cost of securities (including brokerage
commissions, if any) purchased for the Trust.
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7. COMPENSATION. For the services provided and the expenses assumed
pursuant to this Agreement, each of the Funds will pay the Investment Advisor
and the Investment Advisor will accept as full compensation therefor a fee
computed daily and paid monthly at the applicable annual rate set forth on
Schedule A hereto. Each Fund's obligation to pay the above-described fee to the
Investment Advisor will begin as of the date of the initial public sale of
shares in that Fund.
If in any fiscal year the aggregate expenses of any of the
Funds (as defined under the securities regulations of any state having
jurisdiction over the Trust) exceed the expense limitations of any such state,
the Investment Advisor will reimburse the Fund for a portion of such excess
expenses equal to such excess times the ratio of the fees otherwise payable by
the Fund to the Investment Advisor hereunder to the aggregate fees otherwise
payable by the Fund to the Investment Advisor hereunder and to BISYS Fund
Services, Inc. under the Administration Agreement between BISYS Fund Services,
Inc. and the Trust. The obligation of the Investment Advisor to reimburse the
Funds hereunder is limited in any fiscal year to the amount of its fee hereunder
for such fiscal year, PROVIDED, HOWEVER, that notwithstanding the foregoing, the
Investment Advisor shall reimburse the Funds for such proportion of such excess
expenses regardless of the amount of fees paid to it during such fiscal year to
the extent that the securities regulations of any state having jurisdiction over
the Trust so require. Such expense reimbursement, if any, will be estimated
daily and reconciled and paid on a monthly basis.
8. LIMITATION OF LIABILITY. The Investment Advisor shall not be liable
for any error of judgment or mistake of law or for any loss suffered by the
Funds in connection with the performance of this Agreement, except a loss
resulting from a breach of fiduciary duty with respect to the receipt of
compensation for services or a loss resulting from willful misfeasance, bad
faith or gross negligence on the part of the Investment Advisor in the
performance of its duties or from reckless disregard by it of its obligations
and duties under this Agreement.
9. DURATION AND TERMINATION. This Agreement will become effective as to
a particular Fund as of the date first written above, provided that it shall
have been approved by vote of a majority of the outstanding voting securities of
such Fund, in accordance with the requirements under the 1940 Act. Unless sooner
terminated, this Agreement shall continue in effect until January 31, 2002 and
thereafter shall continue in effect for successive periods of one year each
ending on January 31st of each year, PROVIDED such continuance is specifically
approved at least annually (a) by the vote of a majority of those members of the
Trust's Board of Trustees who are not parties to this Agreement or interested
persons of any party to this Agreement, cast in person at a meeting called for
the purpose of voting on such approval, and (b) by the vote of a majority of the
Trust's Board of Trustees or by the vote of a majority of all votes attributable
to the outstanding Shares of
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such Fund. Notwithstanding the foregoing, this Agreement may be terminated at
any time on sixty days' written notice, without the payment of any penalty, by
the Trust (by vote of the Trust's Board of Trustees or by vote of a majority of
the outstanding voting securities of such Fund) or by the Investment Advisor.
This Agreement will immediately terminate in the event of its assignment. (As
used in this Agreement, the terms "majority of the outstanding voting
securities," "interested persons" and "assignment" shall have the same meaning
of such terms in the 1940 Act.)
10. AMENDMENT OF THIS AGREEMENT. No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against which enforcement of the change, waiver,
discharge or termination is sought.
11. MISCELLANEOUS. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. If any
provision of this Agreement shall be held or made invalid by a court decision,
statute, rule or otherwise, the remainder of this Agreement shall not be
affected thereby. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and shall be
governed by the law of The Commonwealth of Massachusetts.
The names "AmSouth Funds" and "Trustees of AmSouth Funds "
refer respectively to the Trust created and the Trustees, as trustees but not
individually or personally, acting from time to time under a Declaration of
Trust dated as of October 1, 1987 to which reference is hereby made and a copy
of which is on file at the office of the Secretary of State of The Commonwealth
of Massachusetts and elsewhere as required by law, and to any and all amendments
thereto so filed or hereafter filed. The obligations of "AmSouth Funds" entered
into in the name or on behalf thereof by any of the Trustees, representatives or
agents are made not individually, but in such capacities, and are not binding
upon any of the Trustees, interestholders or representatives of the Trust
personally, but bind only the assets of the Trust, and all persons dealing with
any Fund must look solely to the assets of the Trust belonging to such Fund for
the enforcement of any claims against the Trust.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to
be executed by their officers designated below as of the day and year first
above written.
AMSOUTH FUNDS
Seal By: _________________________
Name: ________________________
Title: _________________________
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AMSOUTH INVESTMENT
MANAGEMENTCOMPANY
Seal
By: _________________________
Name: ________________________
Title: _________________________
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SCHEDULE A
TO THE INVESTMENT ADVISORY AGREEMENT
DATED AS OF MAY 12, 2001 BETWEEN
AMSOUTH FUNDS
AND
AMSOUTH INVESTMENT MANAGEMENT COMPANY
NAME OF FUND
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AmSouth Funds Annual rate of forty one-hundredths of one percent (.40%) of AmSouth
Prime Money Market Fund Funds Prime Money Market Fund's average daily net assets.
AmSouth Funds Annual rate of eighty one-hundredths of one percent (.80%) of AmSouth
Value Fund Funds Value Fund's average daily net assets.
AmSouth Funds Annual rate of forty one-hundredths of one percent (.40%) of AmSouth
U.S. Treasury Money Market Fund Funds U.S. Treasury Fund's average daily net assets.
AmSouth Funds Annual rate of twenty one-hundredths of one percent (.20%) of AmSouth
Tax-Exempt Money Market Fund Funds Tax-Exempt Money Market Fund's average daily net assets.
AmSouth Funds Annual rate of fifty one-hundredths of one percent (.50%) of AmSouth
Bond Fund Funds Bond Fund's average daily net assets.
AmSouth Funds Annual rate of eighty one-hundredths of one percent (.80%) of AmSouth
Balanced Fund Funds Balanced Fund's average daily net assets.
AmSouth Funds Annual rate of forty one-hundredths of one percent (.40%) of AmSouth
Municipal Bond Fund Funds Municipal Bond Fund's average daily net assets.
AmSouth Funds Annual rate of thirty one-hundredths of one percent (.30%) of AmSouth
Government Income Fund Funds Government Income Fund's average daily net assets.
AmSouth Funds Annual rate of thirty one-hundredths of one percent (.30%) of AmSouth
Florida Tax-Exempt Fund Funds Florida Tax-Exempt Fund's average daily net assets.
AmSouth Funds Annual rate of eighty one-hundredths of one percent (.80%) of AmSouth
Growth Fund Funds Growth Fund average daily net assets
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AmSouth Funds Annual rate of one hundred twenty one-hundredths of one percent (1.20%)
Small Cap Fund of AmSouth Funds Small Cap Fund's average daily net assets.
AmSouth Funds Annual rate of eighty one-hundredths of one percent (.80%) of AmSouth
Equity Income Fund Funds Equity Income Fund's average daily net assets.
AmSouth Funds Institutional Annual rate of twenty one-hundredths of one percent (.20%) of the
Prime Obligations Fund Obligations Fund AmSouth Funds Institutional Prime
AmSouth Funds Institutional Annual rate of twenty one-hundredths of one percent (.20%) of the
U.S. Treasury Money Market Fund AmSouth Funds Institutional U.S. Treasury Money Market Fund
AmSouth Funds Annual rate of forty-five one-hundredths of one percent (.45%) of
Enhanced Market Fund AmSouth Funds Enhanced Market Fund's average daily net assets.
AmSouth Funds Annual rate of eighty one-hundredths of one percent (.80%) of AmSouth
Select Equity Fund Funds Select Equity Fund's average daily net assets.
AmSouth Funds Annual rate of one hundred twenty-five one-hundredths of one percent
International Equity Fund (1.25%) of AmSouth Funds International Equity Fund's average daily net
assets.
AmSouth Funds Annual rate of one hundred one-hundredths of one percent (1.00%) of
Mid Cap Fund AmSouth Funds Mid-Cap Equity Fund's average daily net assets.
AmSouth Funds Annual rate of eighty one-hundredths of one percent (.80%) of AmSouth
Capital Growth Fund Funds Capital Growth Fund's average daily net assets.
AmSouth Funds Annual rate of eighty one-hundredths of one percent (.80%) of AmSouth
Large Cap Funds Large Cap Fund's average daily net assets.
AmSouth Funds Annual rate of sixty-five one-hundredths of one percent (.65%) of
Limited Term AmSouth Funds Limited Term U.S. Government Fund's average daily net
U.S. Government Fund assets.
AmSouth Funds Annual rate of sixty-five one-hundredths of one percent (.65%) of
Tennessee Tax-Exempt Fund AmSouth Funds Tennessee Tax-Exempt Fund's average daily net assets.
AmSouth Funds Annual rate of sixty-five one-hundredths of one percent (.65%)
Limited Term Bond Fund of AmSouth Funds Limited Term Bond Fund's average daily net assets.
AmSouth Funds Annual rate of sixty-five one-hundredths of one percent (.65%) of AmSouth Funds
Limited Term Limited Term Tennessee Tax-Exempt Fund's average daily net assets.
Tennessee Tax-Exempt Fund
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AmSouth FundsTreasury Reserve Money Annual rate of forty one-hundredths of one percent (.40%) of AmSouth Funds
Market Fund U.S. Treasury Money Market Fund's average daily net assets.
AmSouth Funds Annual rate of twenty one-hundredths of one percent (.20%) of AmSouth
Strategic Portfolios: Aggressive Funds Strategic Portfolios: Aggressive Growth Portfolio's average daily
Growth Portfolio net assets.
AmSouth Funds Annual rate of twenty one-hundredths of one percent (.20%) of AmSouth
Strategic Portfolios: Growth Portfolio Funds Strategic Portfolios: Growth Portfolio's average daily net assets.
AmSouth Funds Annual rate of twenty one-hundredths of one percent (.20%) of AmSouth
Strategic Portfolios: Growth and Funds Strategic Portfolios: Growth and Income Portfolio's average daily
Income Portfolio net assets.
AmSouth Funds Annual rate of twenty one-hundredths of one percent (.20%) of AmSouth
Strategic Portfolios: Moderate Growth Funds Strategic Portfolios: Moderate Growth and Income Portfolio's
and Income Portfolio average daily net assets.
AMSOUTH INVESTMENT AMSOUTH FUNDS
MANAGEMENT COMPANY
By:____________________________ By:____________________________
Name:__________________________ Name:_________________________
Title:___________________________ Name:_________________________
