EX-99 (d)(6)
QUAKER INVESTMENT TRUST
SUB-INVESTMENT ADVISORY AGREEMENT
THIS AGREEMENT is made as of the 1st day of May, 2002, between Quaker
Investment Trust (the "Trust"), Quaker Funds, Inc. a registered investment
adviser and Fund manager to the Trust ("Fund Manager") and Xxxxx Capital
Management, a partnership organized and operating under the laws of the state of
Pennsylvania (the "Sub-Adviser").
RECITALS
WHEREAS, the Trust is organized under the laws of the state of
Massachusetts as an unincorporated business trust operating and registered as an
open-end management investment company of the series type under the Investment
Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, the Trust is authorized by its Amended and Restated Declaration of
Trust and by-laws to issue separate Portfolios of shares representing interests
in separate investment portfolios (the "Portfolios"), and
WHEREAS, The Trust has authorized the issuance of shares of beneficial
interest in, among others, a Portfolio known as the Quaker Opportunities Fund
(the "Fund"), and;
WHEREAS, the Trust desires to retain Sub-Adviser to furnish day-to-day
investment advisory services to the Fund pursuant to the terms and conditions of
this Agreement, and Sub-Adviser is willing to so furnish such services
NOW THEREFORE, in consideration of the foregoing and the agreements and
covenants herein contained, the parties hereto, intending to be legally bound,
agree as follows:
1. APPOINTMENT
The Trust hereby appoints the Sub-Adviser to provide day-to-day investment
advisory services to the Fund for the periods and on the terms set forth in this
Agreement. Sub-Adviser accepts the appointment and agrees to furnish the
services herein set forth for the compensation herein provided.
2. DELIVERY OF DOCUMENTS
The Trust has furnished Sub-Adviser with properly certified or
authenticated copies of each of the following:
a. The Trust's Amended and Restated Declaration of Trust as filed with
the Commonwealth of Massachusetts;
b. The Trust's Amended and Restated By-Laws;
c. Resolutions of the Trust's Board of Trustees authorizing the
appointment of Sub-Adviser and approving this Agreement;
d. The Trust's most current Registration Statement on form N-1A
promulgated under the 1940 Act and under the Securities Act of 1933,
as amended (the "1933 Act");
e. The Trust's current Prospectus and Statement of Additional Information
(together called the "Prospectus")
The Trust will furnish Sub-Adviser from time to time with properly
certified or authenticated copies of all amendments of or supplements to the
foregoing at the same time as such documents are required to be filed with the
SEC and/or state authorities.
3. MANAGEMENT
Subject to the supervision of the Trust's Board of Trustees and Quaker
Funds, Inc., Fund Manager to each series of the Trust, Sub-Adviser will provide
a continuous investment program for the Fund, including investment research and
management with respect to all securities, investments, cash and cash
equivalents in the Fund. Sub-Adviser will determine from time to time what
securities and other investments will be purchased, retained or sold by the
Fund. Sub-Adviser will provide the services under this Agreement in accordance
with the Funds investment objectives, policies and restrictions as such are set
forth in the prospectus from time to time. Sub-Adviser further agrees that it:
(a) Will conform its activities to all applicable rules and Regulations of
the SEC and will, in addition, conduct its activities under this
agreement in accordance with the regulations of any other Federal and
State agencies which may now or in the future have jurisdiction over
its activities under this Agreement;
(b) Will place orders pursuant to its investment determinations for the
Fund either directly with the respective issuers or with any broker or
dealer. In placing orders with brokers or dealers, Sub-Adviser will
attempt to obtain the best net price and the most favorable execution
of its orders. Consistent with this obligation, when Sub-Adviser
believes two or more brokers or dealers are comparable in price and
execution, Sub-Adviser may prefer: (I) brokers and dealers who provide
the Fund with research advice and other services, or who recommend or
sell Trust shares, and (II) brokers who are affiliated with the Fund,
Adviser, and/or Sub-Adviser; provided, however, that in no instance
will portfolio securities be purchased from or sold to Sub-Adviser in
principal transactions; and
(c) Will provide, at its own cost, all office space, facilities and
equipment necessary for the conduct of its advisory activities on
behalf of the Fund.
4. SERVICES NOT EXCLUSIVE
The advisory services to be furnished by Sub-Adviser hereunder are not to
be considered exclusive, and Sub-Adviser shall be free to furnish similar
services to others so long as its services under this Agreement are not impaired
thereby; provided, however, that without the written consent of the Trustees of
the Trust, Sub-Adviser will not serve as an investment advisor to any other
investment company having a similar investment objective to that of the fund.
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5. BOOKS AND RECORDS
In compliance with Rule 31a-3 promulgated under the 1940 Act, Sub-Adviser
hereby agrees that all records which it maintains for the benefit of the Fund
are the property of the Fund and further agrees to surrender promptly to the
Fund any of such records upon the Fund's request. Sub-Adviser further agrees to
preserve for the periods prescribed by Rule 31a-2 promulgated under the 1940
Act, the records required to be maintained by it pursuant to Rule 31a-1
promulgated under the 1940 Act that are not maintained by others on behalf of
the Fund.
6. EXPENSES
During the term of this Agreement, Sub-Adviser will pay all expenses
incurred by it in connection with its investment advisory services furnished to
the Fund other than the costs of securities and other investments (including
brokerage commissions and other transaction charges) purchased or sold for the
Fund.
7. COMPENSATION
The Fund Manager will pay to Sub-Adviser, and Sub-Adviser will accept as
full compensation for its services rendered hereunder, an investment advisory
fee, computed at the end of each month and payable within five (5) business days
thereafter, equal to a base annual fee of 0.75%, calculated daily and paid
monthly, based on the average daily net assets of the Fund. This fee is adjusted
monthly based on the Fund's performance vs. the S&P 500 Index, a widely
recognized index of the approximately 500 largest companies in the United
States, as measured by market capitalization. The table below reflects the
monthly adjustments to the advisory fee:
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If the Fund's Cumulative Running 12 month Then the Adviser's
total return is: Performance Adjusted fee is:
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Less than +1.00% greater than the Index Base Fee X 0.4555
Between +1.00% and +1.50% greater than the Index Base Fee X 0.6667
Between +1.50% and +2.00% greater than the Index Base Fee X 0.8555
Between +2.00% and +2.50% greater than the Index Base Fee X 1.0000
Between +2.50% and +3.00% greater than the Index Base Fee X 1.1750
Between +3.00% and +3.50% greater than the Index Base Fee X 1.3455
Between +3.50% and +4.00% greater than the Index Base Fee X 1.5155
More than +4.00 greater than the Index Base Fee X 1.6667
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8. LIMITATION OF LIABILITY
Sub-Adviser shall not be liable for any error of judgment, mistake of law
or for any other loss suffered by the Fund 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 malfeasance, bad faith or gross negligence on its part in the
performance of its duties or from reckless disregard by it of its obligations or
duties under this Agreement.
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9. DURATION AND TERMINATION
This Agreement shall become effective as of the date first written above
and, unless sooner terminated as provided herein, shall continue in effect for
two years. Thereafter, this Agreement shall be renewable for successive periods
of one year each, provided such continuance is specifically approved annually:
(a) By the vote of a majority of those members of the Board of Trustees
who are not parties to the Agreement or interested persons of any such
party (as that term is defined in the 1940 Act), cast in person at a
meeting called for the purpose of voting on such approval; and
(b) By vote of either the Board of Trustees or a majority (as that term is
defined in the 0000 Xxx) of the outstanding voting securities of the
Fund.
Notwithstanding the foregoing, this Agreement may be terminated by the
Trust or by Adviser or by Sub-Adviser at any time upon sixty (60) days written
notice, without payment of any penalty. Any such termination by the Trust must
be authorized by vote of the Board of Trustees or by vote of a majority of the
outstanding voting securities of the Fund. This Agreement will automatically
terminate in the event of its assignment (as that term is defined 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 a written instrument signed by the party against
which enforcement of the change, waiver, discharge or termination is sought. No
material amendment of this Agreement shall be effective until approved by vote
of the holders of a majority of the Fund's outstanding voting securities (as
defined in the 1940 Act).
11. MISCELLANEOUS
The captions in this Agreement are included for convenience of reference
only and in no way define or limit 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 the Agreement shall not be affected thereby. This Agreement shall
be binding on, and shall inure to the benefit of, the parties hereto and their
respective successors.
12. COUNTERPARTS
This Agreement may be executed in counterparts by the parties hereto, each
of which shall constitute an original, and all of which, together, shall
constitute one Agreement.
13. GOVERNING LAW
This Agreement shall be construed in accordance with, and governed by, the
laws of the Commonwealth of Pennsylvania.
14. NOTICES
Except as otherwise provided in this Agreement, any notice or other
communication required by or permitted to be given in connection with this
Agreement will be in writing and will be delivered in
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person or sent by first class mail, postage prepaid or by prepaid overnight
delivery service to the respective parties as follows:
IF TO THE TRUST: IF TO THE SUB-ADVISER:
---------------- ----------------------
Quaker Investment Trust Xxxxx Capital Management
0000 Xxxxxx Xxxxx Xxxx, Xxxxx 00 0000 Xxxx Xxxxxxx Xxxx, Xxxxx 000
X.X. Xxx 000 X.X. Xxx 000
Xxxxxx Xxxxx, XX 00000 Xxxx Xxxxxxx, XX 00000
Attn: Xxxxxx X. Xxxx Attn: Xxxxxxx Xxxxx
Chairman Title: President
IF TO THE FUND MANAGER:
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Quaker Funds, Inc.
0000 Xxxxxx Xxxxx Xxxx, Xxxxx 00
X.X. Xxx 000 Xxxxxx Xxxxx, XX 00000
Attn: Xxxxx X. Xxxxxx
President
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their officers designated below as of the day and year first written above.
Attest: QUAKER INVESTMENT TRUST
/s/ Xxxxxx Xxxxx /s/ Xxxxxx X. Xxxx
---------------------------- -------------------------------
By: Xxxxxx Xxxxx By: Xxxxxx X. Xxxx, Xx.
Title: Secretary Title: Chairman
Attest: QUAKER FUNDS, INC.
/s/ Xxxxxxx Xxxxxx /s/ Xxxxx X. Xxxxxx
---------------------------- -------------------------------
By: Xxxxxxx Xxxxxx By: Xxxxx X. Xxxxxx
Title: Compliance Officer Title: President
Attest: XXXXX CAPITAL MANAGEMENT
/s/ Xxxxxxx Xxxxx
-------------------------------
By: Xxxxxxx Xxxxx
Title: President
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