EXHIBIT 10.11
MANAGEMENT AGREEMENT
BETWEEN
NUVEEN INVESTMENT TRUST
AND
NUVEEN INSTITUTIONAL ADVISORY CORP.
NUVEEN INVESTMENT TRUST, a Massachusetts business trust registered under
the Investment Company Act of 1940 ("1940 Act") as an open-end diversified
management series investment company ("Trust"), hereby appoints NUVEEN
INSTITUTIONAL ADVISORY CORP., a Delaware corporation registered under the
Investment Advisers Act of 1940 as an investment adviser, of Chicago, Illinois
("Manager"), to furnish investment advisory and management services and certain
administrative services with respect to the portion of its assets represented by
the shares of beneficial interest issued in each series listed in Schedule A
hereto, as such schedule may be amended from time to time (each such series
hereinafter referred to as "Fund"). Trust and Manager hereby agree that:
1. Investment Management Services. Manager shall manage the
investment operations of Trust and each Fund, subject to the terms of this
Agreement and to the supervision and control of Trust's Board of Trustees
("Trustees"). Manager agrees to perform, or arrange for the performance
of, the following services with respect to each Fund:
(a) to obtain and evaluate such information relating to
economies, industries, businesses, securities and commodities
markets, and individual securities, commodities and indices as it
may deem necessary or useful in discharging its responsibilities
hereunder;
(b) to formulate and maintain a continuous investment program
in a manner consistent with and subject to (i) Trust's agreement and
declaration of trust and by-laws; (ii) the Fund's investment
objectives, policies, and restrictions as set forth in written
documents furnished by the Trust to Manager; (iii) all securities,
commodities, and tax laws and regulations applicable to the Fund and
Trust; and (iv) any other written limits or directions furnished by
the Trustees to Manager;
(c) unless otherwise directed by the Trustees, to determine
from time to time securities, commodities, interests or other
investments to be purchased, sold, retained or lent by the Fund, and
to implement those decisions, including the selection of entities
with or through which such purchases, sales or loans are to be
effected;
(d) to use reasonable efforts to manage the Fund so that it
will qualify as a regulated investment company under subchapter M of
the Internal Revenue Code of 1986, as amended;
(e) to make recommendations as to the manner in which voting
rights, rights to consent to Trust or Fund action, and any other
rights pertaining to Trust or the Fund shall be exercised;
(f) to make available to Trust promptly upon request all of
the Fund's records and ledgers and any reports or information
reasonably requested by the Trust; and
(g) to the extent required by law, to furnish to regulatory
authorities any information or reports relating to the services
provided pursuant to this Agreement.
Except as otherwise instructed from time to time by the Trustees,
with respect to execution of transactions for Trust on behalf of a Fund,
Manager shall place, or arrange for the placement of, all orders for
purchases, sales, or loans with issuers, brokers, dealers or other
counterparts or agents selected by Manager. In connection with the
selection of all such parties for the placement of all such orders,
Manager shall attempt to obtain most favorable execution and price, but
may nevertheless in its sole discretion as a secondary factor, purchase
and sell portfolio securities from and to brokers and dealers who provide
Manager with statistical, research and other information, analysis,
advice, and similar services. In recognition of such services or brokerage
services provided by a broker or dealer, Manager is hereby authorized to
pay such broker or dealer a commission or spread in excess of that which
might be charged by another broker or dealer for the same transaction if
the Manager determines in good faith that the commission or spread is
reasonable in relation to the value of the services so provided.
Trust hereby authorizes any entity or person associated with Manager
that is a member of a national securities exchange to effect any
transaction on the exchange for the account of a Fund to the extent
permitted by and in accordance with Section 11(a) of the Securities
Exchange Act or 1934 and Rule 11a2-2(T) thereunder. Trust hereby consents
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to the retention by such entity or person of compensation for such
transactions in accordance with Rule 11a-2-2(T)(a)(iv).
Manager may, where it deems to be advisable, aggregate orders for
its other customers together with any securities of the same type to be
sold or purchased for Trust or one or more Funds in order to obtain best
execution or lower brokerage commissions. In such event, Manager shall
allocate the shares so purchased or sold, as well as the expenses incurred
in the transaction, in a manner it considers to be equitable and fair and
consistent with its fiduciary obligations to Trust, the Funds, and
Manager's other customers.
Manager shall for all purposes be deemed to be an independent
contractor and not an agent of Trust and shall, unless otherwise expressly
provided or authorized, have no authority to act for or represent Trust in
any way.
2. Administrative Services. Subject to the terms of this Agreement
and to the supervision and control of the Trustees, Manager shall provide
to the Trust facilities, equipment, statistical and research data,
clerical, accounting and bookkeeping services, internal auditing and legal
services, and personnel to carry out all management services required for
operation of the business and affairs of the Funds other than those
services to be performed by the Trust's Distributor pursuant to the
Distribution Agreement, those services to be performed by the Trust's
Custodian pursuant to the Custody Agreement, those services to be
performed by the Trust's Transfer Agent pursuant to the Transfer Agency
Agreement, those services to be provided by the Trust's Custodian pursuant
to the Accounting Agreement and those services normally performed by the
Trust's counsel and auditors.
3. Use of Affiliated Companies and Subcontractors. In connection
with the services to be provided by Manager under this Agreement, Manager
may, to the extent it deems appropriate, and subject to compliance with
the requirements of applicable laws and regulations, make use of (i) its
affiliated companies and their directors, trustees, officers, and
employees and (ii) subcontractors selected by Manager, provided that
Manager shall supervise and remain fully responsible for the services of
all such third parties in accordance with and to the extent provided by
this Agreement. All costs and expenses associated with services provided
by any such third parties shall be borne by Manager or such parties.
4. Expenses Borne by Trust. Except to the extent expressly assumed
by Manager herein or under a separate agreement between Trust and Manager
and except to the extent required by law to be paid by Manager, Manager
shall not be obligated to pay
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any costs or expenses incidental to the organization, operations or
business of the Trust. Without limitation, such costs and expenses shall
include but not be limited to:
(a) all charges of depositories, custodians and other agencies
for the safekeeping and servicing of its cash, securities, and other
property;
(b) all charges for equipment or services used for obtaining
price quotations or for communication between Manager or Trust and
the custodian, transfer agent or any other agent selected by Trust;
(c) all charges for and accounting services provided to Trust
by Manager, or any other provider of such services;
(d) all charges for services of Trust's independent auditors
and for services to Trust by legal counsel;
(e) all compensation of Trustees, other than those affiliated
with Manager, all expenses incurred in connection with their
services to Trust, and all expenses of meetings of the Trustees or
committees thereof;
(f) all expenses incidental to holding meetings of holders of
units of interest in the Trust ("Shareholders"), including printing
and of supplying each record-date Shareholder with notice and proxy
solicitation material, and all other proxy solicitation expense;
(g) all expenses of printing of annual or more frequent
revisions of Trust prospectus(es) and of supplying each
then-existing Shareholder with a copy of a revised prospectus;
(h) all expenses related to preparing and transmitting
certificates representing Trust shares;
(i) all expenses of bond and insurance coverage required by
law or deemed advisable by the Board of Trustees;
(j) all brokers' commissions and other normal charges incident
to the purchase, sale, or lending of portfolio securities;
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(k) all taxes and governmental fees payable to Federal, state
or other governmental agencies, domestic or foreign, including all
stamp or other transfer taxes;
(l) all expenses of registering and maintaining the
registration of Trust under the 1940 Act and, to the extent no
exemption is available, expenses of registering Trust's shares under
the 1933 Act, of qualifying and maintaining qualification of Trust
and of Trust's shares for sale under securities laws of various
states or other jurisdictions and of registration and qualification
of Trust under all other laws applicable to Trust or its business
activities;
(m) all interest on indebtedness, if any, incurred by Trust or
a Fund; and
(n) all fees, dues and other expenses incurred by Trust in
connection with membership of Trust in any trade association or
other investment company organization.
5. Allocation of Expenses Borne by Trust. Any expenses borne by
Trust that are attributable solely to the organization, operation or
business of a Fund shall be paid solely out of Fund assets. Any expense
borne by Trust which is not solely attributable to a Fund, nor solely to
any other series of shares of Trust, shall be apportioned in such manner
as Manager determines is fair and appropriate, or as otherwise specified
by the Board of Trustees.
6. Expenses Borne by Manager. Manager at its own expense shall
furnish all executive and other personnel, office space, and office
facilities required to render the investment management and administrative
services set forth in this Agreement.
In the event that Manager pays or assumes any expenses of Trust or a
Fund not required to be paid or assumed by Manager under this Agreement,
Manager shall not be obligated hereby to pay or assume the same or similar
expense in the future; provided that nothing contained herein shall be
deemed to relieve Manager of any obligation to Trust or a Fund under any
separate agreement or arrangement between the parties.
7. Management Fee. For the services rendered, facilities provided,
and charges assumed and paid by Manager hereunder, Trust shall pay to
Manager out of the assets of each Fund fees at the annual rate for such
Fund as set forth in Schedule B to this Agreement. For each Fund, the
management fee shall accrue on each calendar day, and shall be payable
monthly on the first business day of the next succeeding calendar month.
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The daily fee accrual shall be computed by multiplying the fraction of one
divided by the number of days in the calendar year by the applicable
annual rate of fee, and multiplying this product by the net assets of the
Fund, determined in the manner established by the Board of Trustees, as of
the close of business on the last preceding business day on which the
Fund's net asset value was determined.
8. State Expense Limitation. If for any fiscal year of a Fund, its
aggregate operating expenses ("Aggregate Operating Expenses") exceed the
applicable percentage expense limit imposed under the securities law and
regulations of any state in which Shares of the Fund are qualified for
sale (the "State Expense Limit"), the Manager shall pay such Fund the
amount of such excess. For purposes of this State Expense Limit, Aggregate
Operating Expenses shall (a) include (i) any fees or expenses
reimbursements payable to Manager pursuant to this Agreement and (ii) to
the extent the Fund invests all or a portion of its assets in another
investment company registered under the 1940 Act, the pro rata portion of
that company's operating expenses allocated to the Fund, and (iii) any
compensation payable to Manager pursuant to any separate agreement
relating to the Fund's administration, but (b) exclude any interest,
taxes, brokerage commissions, and other normal charges incident to the
purchase, sale or loan of securities, commodity interests or other
investments held by the Fund, litigation and indemnification expense, and
other extraordinary expenses not incurred in the ordinary course of
business. Except as otherwise agreed to by the parties or unless otherwise
required by the law or regulation of any state, any reimbursement by
Manager to a Fund under this section shall not exceed the management fee
payable to Manager by the Fund under this Agreement.
Any payment to a Fund by Manager hereunder shall be made monthly, by
annualizing the Aggregate Operating Expenses for each month as of the last
day of the month. An adjustment for payments made during any fiscal year
of the Fund shall be made on or before the last day of the first month
following such fiscal year of the Fund if the Annual Operating Expenses
for such fiscal year (i) do not exceed the State Expense Limitation or
(ii) for such fiscal year there is no applicable State Expense Limit.
9. Retention of Sub-Adviser. Subject to obtaining the initial and
periodic approvals required under Section 15 of the 1940 Act, Manager may
retain one or more sub-advisers at Manager's own cost and expense for the
purpose of furnishing one or more of the services described in Section 1
hereof with respect to Trust or one or more Funds. Retention of a
sub-adviser shall in no way reduce the responsibilities or obligations of
Manager under this Agreement, and Manager shall be responsible to Trust
and its Funds for all acts or omissions of any sub-adviser in connection
with the performance or Manager's duties hereunder.
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10. Non-Exclusivity. The services of Manager to Trust hereunder are
not to be deemed exclusive and Manager shall be free to render similar
services to others.
11. Standard of Care. The Manager shall not be liable for any loss
sustained by reason of the purchase, sale or retention of any security,
whether or not such purchase, sale or retention shall have been based upon
the investigation and research made by any other individual, firm or
corporation, if such recommendation shall have been selected with due care
and in good faith, except loss resulting from willful misfeasance, bad
faith, or gross negligence on the part of the Manager in the performance
of its obligations and duties, or by reason of its reckless disregard of
its obligations and duties under this Agreement.
12. Amendment. This Agreement may not be amended as to Trust or any
Fund without the affirmative votes (a) of a majority of the Board of
Trustees, including a majority of those Trustees who are not "interested
persons" of Trust or of Manager, voting in person at a meeting called for
the purpose of voting on such approval, and (b) of a "majority of the
outstanding shares" of Trust or, with respect to any amendment affecting
an individual Fund, a "majority of the outstanding shares" of that Fund.
The terms "interested persons" and "vote of a majority of the outstanding
shares" shall be construed in accordance with their respective definitions
in the 1940 Act and, with respect to the latter term, in accordance with
Rule 18f-2 under the 1940 Act.
13. Effective Date and Termination. This Agreement shall become
effective as to any Fund as of the effective date for that Fund specified
in Schedule A hereto. This Agreement may be terminated at any time,
without payment of any penalty, as to any Fund by the Board of Trustees of
Trust, or by a vote of a majority of the outstanding shares of that fund,
upon at least sixty (60) days' written notice to Manager. This Agreement
may be terminated by Manager at any time upon at least sixty (60) days'
written notice to Trust. This Agreement shall terminate automatically in
the event of its "assignment" (as defined in the 1940 Act). Unless
terminated as hereinbefore provided, this Agreement shall continue in
effect with respect to any Fund until the end of the initial term
applicable to that Fund specified in Schedule A and thereafter from year
to year only so long as such continuance is specifically approved with
respect to that Fund at least annually (a) by a majority of those Trustees
who are not interested persons of Trust or of Manager, voting in person at
a meeting called for the purpose of voting on such approval, and (b) by
either the Board of Trustees of Trust or by a "vote of a majority of the
outstanding shares" of the Fund.
14. Ownership of Records; Interparty Reporting. All records required
to be maintained and preserved by Trust pursuant to the provisions of
rules or regulations of
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the Securities and Exchange Commission under Section 31(a) of the 1940 Act
or other applicable laws or regulations which are maintained and preserved
by Manager on behalf of Trust and any other records the parties mutually
agree shall be maintained by Manager on behalf of Trust are the property
of Trust and shall be surrendered by Manager promptly on request by Trust;
provided that Manager may at its own expense make and retain copies of any
such records.
Trust shall furnish or otherwise make available to Manager such
copies of the financial statements, proxy statements, reports, and other
information relating to the business and affairs of each Shareholder in a
Fund as Manager may, at any time or from time to time, reasonably require
in order to discharge its obligations under this Agreement.
Manager shall prepare and furnish to Trust as to each Fund
statistical data and other information in such form and at such intervals
as Trust may reasonably request.
15. Non-Liability of Trustees and Shareholders. Any obligation of
Trust hereunder shall be binding only upon the assets of Trust (or the
applicable Fund thereof) and shall not be binding upon any Trustee,
officer, employee, agent or Shareholder of Trust. Neither the
authorization of any action by the Trustees or Shareholders of Trust nor
the execution of this Agreement on behalf of Trust shall impose any
liability upon any Trustee or any Shareholder.
16. Use of Manager's Name. Trust may use the name "Nuveen Investment
Trust" and the Fund names listed in Schedule A or any other name derived
from the name "Nuveen" only for so long as this Agreement or any
extension, renewal, or amendment hereof remains in effect, including any
similar agreement with any organization which shall have succeeded to the
business of Manager as investment adviser. At such time as this Agreement
or any extension, renewal or amendment hereof, or such other similar
agreement shall no longer be in effect, Trust will cease to use any name
derived from the name "Nuveen" or otherwise connected with Manager, or
with any organization which shall have succeeded to Manager's business as
investment adviser.
17. References and Headings. In this Agreement and in any such
amendment, references to this Agreement and all expressions such as
"herein," "hereof," and "hereunder'" shall be deemed to refer to this
Agreement as amended or affected by any such amendments. Headings are
placed herein for convenience of reference only and shall not be taken as
a part hereof or control or affect the meaning, construction, or effect of
this Agreement. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original.
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Dated: July 29, 1996
NUVEEN INVESTMENT TRUST
ATTEST BY______________________________________
________________________________
NUVEEN INSTITUTIONAL ADVISORY CORP.
ATTEST BY______________________________________
________________________________
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NUVEEN INVESTMENT TRUST
MANAGEMENT AGREEMENT
SCHEDULE A
The Funds of the Trust currently subject to this Agreement and the
original effective date of each are as follows:
FUND EFFECTIVE DATE
Nuveen Growth and Income Stock Fund July 29, 1996
Nuveen Balanced Stock and Bond Fund July 29, 1996
Nuveen Balanced Municipal and Stock Fund July 29, 1996
Nuveen European Value Fund May 29, 1998
Nuveen Balanced (State) Municipal and Stock Fund(s) _____________
Amended: May 16, 1998
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NUVEEN INVESTMENT TRUST
MANAGEMENT AGREEMENT
SCHEDULE B
Compensation pursuant to Section 7 of this Agreement shall be calculated
with respect to each Fund in accordance with the following schedule applicable
to the average daily net assets of the Fund:
NUVEEN GROWTH AND INCOME STOCK FUND
AVERAGE DAILY NET ASSET VALUE FUND MANAGEMENT FEE
For the first $125 million .8500 of 1%
For the next $125 million .8375 of 1%
For the next $250 million .8250 of 1%
For the next $500 million .8125 of 1%
For the next $1 billion .8000 of 1%
For assets over $2 billion .7750 of 1%
NUVEEN BALANCED STOCK AND BOND FUND
AVERAGE DAILY NET ASSET VALUE FUND MANAGEMENT FEE
For the first $125 million .7500 of 1%
For the next $125 million .7375 of 1%
For the next $250 million .7250 of 1%
For the next $500 million .7125 of 1%
For the next $1 billion .7000 of 1%
For assets over $2 billion .6750 of 1%
NUVEEN BALANCED MUNICIPAL AND STOCK FUND
NUVEEN BALANCED (STATE) MUNICIPAL AND STOCK FUND(S)
AVERAGE DAILY NET ASSET VALUE FUND MANAGEMENT FEE
For the first $125 million .7500 of 1%
For the next $125 million .7375 of 1%
For the next $250 million .7250 of 1%
For the next $500 million .7125 of 1%
For the next $1 billion .7000 of 1%
For assets over $2 billion .6750 of 1%
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NUVEEN EUROPEAN VALUE FUND
AVERAGE DAILY NET ASSET VALUE FUND MANAGEMENT FEE
For the first $125 million .9500 of 1%
For the next $125 million .9375 of 1%
For the next $250 million .9250 of 1%
For the next $500 million .9125 of 1%
For the next $1 billion .9000 of 1%
For assets over $2 billion .8750 of 1%
Amended: May 16, 1998
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