MEMORANDUM OF AGREEMENT (Advisory Fee Waivers)
MEMORANDUM OF AGREEMENT
(Advisory Fee Waivers)
(Advisory Fee Waivers)
This Memorandum of Agreement is entered into as of the effective date on the attached Exhibit
A and B (each an “Exhibit” or, collectively the “Exhibits”), between AIM Counselor Series Trust,
AIM Equity Funds, AIM Funds Group, AIM Growth Series, AIM International Mutual Funds, AIM
Investment Funds, AIM Investment Securities Funds, AIM Sector Funds, AIM Tax-Exempt Funds, AIM
Treasurer’s Series Trust, AIM Variable Insurance Funds and Short-Term Investments Trust (each a
“Trust” or, collectively, the “Trusts”), on behalf of the funds listed on the Exhibits to this
Memorandum of Agreement (the “Funds”), and Invesco Aim Advisors, Inc. (“Invesco Aim”). Invesco Aim
shall and hereby agrees to waive fees of the Funds, on behalf of their respective classes as
applicable, severally and not jointly, as indicated in the Exhibits.
For and in consideration of the mutual terms and agreements set forth herein and other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Trusts
and Invesco Aim agree that until at least the expiration date set forth on Exhibit A (the
“Expiration Date”) and with respect to those Funds listed on the Exhibit, Invesco Aim will waive
its advisory fees at the rate set forth on the Exhibit.
For and in consideration of the mutual terms and agreements set forth herein and other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Trusts
and Invesco Aim agree as follows:
| 1. | Each Trust, for itself and its Funds, and Invesco Aim agree that until the expiration date, if any, of the commitment set forth on the attached Exhibit B occurs, as such Exhibit B is amended from time to time, Invesco Aim will waive advisory fees payable by an Investing Trust in an amount equal to 100% of the net advisory fee Invesco Aim receives on the Uninvested Cash (defined below) from the Affiliated Money Market Fund (defined below) in which the Investing Trust invests (the “Waiver”). |
| i. | Invesco Aim’s Fund Accounting Group will calculate, and apply, the Waiver monthly, based upon the average investment of Uninvested Cash made by the Investing Trust during the previous month in an Affiliated Money Market Fund. | ||
| ii. | The Waiver will not apply to those investing Trusts that do not charge an advisory fee, either due to the terms of their advisory agreement, or as a result of contractual or voluntary fee waivers. | ||
| iii. | The Waiver will not apply to cash collateral for securities lending. |
For purposes of the paragraph above, the following terms shall have the following
meanings:
(a) “Affiliated Money Market Fund” — any existing or future Trust that holds itself
out as a money market fund and complies with Rule 2a-7 under the Investment Company
Act of 1940, as amended; and
(b) “Uninvested Cash” — cash available and uninvested by a Trust that may result
from a variety of sources, including dividends or interest received on portfolio
securities, unsettled securities transactions, strategic reserves, matured
investments, proceeds from liquidation of investment securities, dividend payments,
or new investor capital.
| 2. | Neither a Trust nor Invesco Aim may remove or amend the Waiver to a Trust’s detriment prior to requesting and receiving the approval of the Portfolio’s Board of Trustee to |
1
| remove or amend such Waiver. Invesco Aim will not have any right to reimbursement of any amount so waived. |
The Boards of Trustees and Invesco Aim may terminate or modify this Memorandum of Agreement
prior to the Expiration Date only by mutual written consent. Invesco Aim will not have any right
to reimbursement of any amount so waived or reimbursed.
Subject to the foregoing paragraphs, each of the Trusts and Invesco Aim agree to review the
then-current waivers for each class of the Funds listed on the Exhibits on a date prior to the
Expiration Date to determine whether such waivers should be amended, continued or terminated. The
waivers will expire upon the Expiration Date unless the Trusts and Invesco Aim have agreed to
continue them. The Exhibits will be amended to reflect any such agreement.
It is expressly agreed that the obligations of the Trusts hereunder shall not be binding upon
any of the Trustees, shareholders, nominees, officers, agents or employees of the Trusts
personally, but shall only bind the assets and property of the Funds, as provided in each Trust’s
Agreement and Declaration of Trust. The execution and delivery of this Memorandum of Agreement
have been authorized by the Trustees of each Trust, and this Memorandum of Agreement has been
executed and delivered by an authorized officer of each Trust acting as such; neither such
authorization by such Trustees nor such execution and delivery by such officer shall be deemed to
have been made by any of them individually or to impose any liability on any of them personally,
but shall bind only the assets and property of the Funds, as provided in each Trust’s Agreement and
Declaration of Trust.
IN WITNESS WHEREOF, each of the Trusts, on behalf of itself and its Funds listed in Exhibit A
and B to this Memorandum of Agreement, and Invesco Aim have entered into this Memorandum of
Agreement as of the Effective Date on the attached Exhibits.
| AIM COUNSELOR SERIES TRUST AIM EQUITY FUNDS AIM FUNDS GROUP AIM GROWTH SERIES AIM INTERNATIONAL MUTUAL FUNDS AIM INVESTMENT FUNDS AIM INVESTMENT SECURITIES FUNDS AIM SECTOR FUNDS AIM TAX-EXEMPT FUNDS AIM TREASURER’S SERIES TRUST AIM VARIABLE INSURANCE FUNDS SHORT-TERM INVESTMENTS TRUST on behalf of the Funds listed in the Exhibit to this Memorandum of Agreement |
||||
| By: | /s/ Xxxx X. Xxxx | |||
| Title: Senior Vice President | ||||
| INVESCO AIM ADVISORS, INC. |
||||
| By: | /s/ Xxxx X. Xxxx | |||
| Title: Senior Vice President | ||||
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Exhibit A to Advisory Fee MOA
| Waiver Description | Effective Date | Expiration Date |
||||
AIM Charter Fund
|
Invesco Aim will waive advisory fees to the extent necessary so that advisory fees Invesco Aim receives do not exceed the annualized rates listed below. | 1/1/2005 | 12/31/2012 | |||
| 0.75% of the first $150M | ||||||
| 0.615% of the next $4.85B | ||||||
| 0.57% of the next $2.5B | ||||||
| 0.545% of the next $2.5B | ||||||
| 0.52% of the excess over $10B | ||||||
AIM Constellation Fund |
Invesco Aim will waive advisory fees to the extent necessary so that advisory fees Invesco Aim receives do not exceed the annualized rates listed below. | 3/27/2006 | 12/31/2012 | |||
| 0.695% of the first $250M | ||||||
| 0.615% of the next $4B | ||||||
| 0.595% of the next $750M | ||||||
| 0.57% of the next $2.5B | ||||||
| 0.545% of the next $2.5B | ||||||
| 0.52% of the excess over $10B | ||||||
AIM Funds Group
|
Waiver Description | Effective Date | Expiration Date |
|||
AIM Basic Balanced Fund |
Invesco Aim will waive advisory fees to the extent necessary so that advisory fees Invesco Aim receives do not exceed the annualized rates listed below. | 1/1/2005 | 12/31/2012 | |||
| 0.62% of the first $250M | ||||||
| 0.605% of the next $250M | ||||||
| 0.59% of the next $500M | ||||||
| 0.575% of the next $1.5B | ||||||
| 0.56% of the next $2.5B | ||||||
| 0.545% of the next $2.5B | ||||||
| 0.53% of the next $2.5B | ||||||
| 0.515% of the excess over $10B |
3
AIM Sector Funds
|
Waiver Description | Effective Date | Expiration Date |
|||
AIM Gold & Precious Metals Fund |
Invesco Aim will waive advisory fees to the extent necessary so that advisory fees Invesco Aim receives do not exceed the annualized rates listed below. | 1/1/2005 | 6/30/2010 | |||
| 0.75% of the first $250M | ||||||
| 0.74% of the next $250M | ||||||
| 0.73% of the next $500M | ||||||
| 0.72% of the next $1.5B | ||||||
| 0.71% of the next $2.5B | ||||||
| 0.70% of the next $2.5B | ||||||
| 0.69% of the next $2.5B | ||||||
| 0.68% of the excess over $10B | ||||||
AIM Treasurer’s Series Trust |
Waiver Description | Effective Date | Expiration Date |
|||
Premier Portfolio
|
Invesco Aim will waive advisory fees in the amount of 0.03% of the Fund’s average daily net assets | 2/25/2005 | 6/30/2010 | |||
Premier U.S.
Government Money
Portfolio
|
Invesco Aim will waive advisory fees in the amount of 0.03% of the Fund’s average daily net assets | 2/25/2005 | 6/30/2010 | |||
AIM Variable Insurance Funds |
Waiver Description | Effective Date | Expiration Date |
|||
AIM V. I. Basic
Balanced Fund
|
Invesco Aim will waive advisory fees to the extent necessary so that advisory fees Invesco Aim receives do not exceed the annualized rates listed below. | 1/1/2010 | 04/30/2011 | |||
| 0.62% of the first $250M
0.605% of the next $250M |
||||||
| 0.59% of the next $500M | ||||||
| 0.575% of the next $1.5B | ||||||
| 0.56% of the next $2.5B | ||||||
| 0.545% of the next $2.5B | ||||||
| 0.53% of the next $2.5B | ||||||
| 0.515% of the excess over $10B | ||||||
AIM V. I. Capital
Development Fund
|
Invesco Aim will waive advisory fees to the extent necessary so that advisory fees Invesco Aim receives do not exceed the annualized rates listed below. | 1/1/2005 | 4/30/2011 | |||
| 0.745% of the first $250M | ||||||
| 0.73% of the next $250M | ||||||
| 0.715% of the next $500M | ||||||
| 0.70% of the next $1.5B | ||||||
| 0.685% of the next $2.5B | ||||||
| 0.67% of the next $2.5B | ||||||
| 0.655% of the next $2.5B | ||||||
| 0.64% of the excess over $10B |
4
EXHIBIT B
AIM COUNSELOR SERIES TRUST
| PORTFOLIO | EFFECTIVE DATE | COMMITTED UNTIL | ||
AIM Core Plus Bond Fund
|
June 2, 2009 | June 30, 2010 | ||
AIM Floating Rate Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Multi-Sector Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Select Real Estate Income Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Structured Core Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Structured Growth Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Structured Value Fund
|
July 1, 2007 | June 30, 2010 |
| PORTFOLIO | EFFECTIVE DATE | COMMITTED UNTIL | ||
AIM Capital Development Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Charter Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Constellation Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Disciplined Equity Fund
|
July 14, 2009 | June 30, 2010 | ||
AIM Diversified Dividend Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Large Cap Basic Value Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Large Cap Growth Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Summit Fund
|
July 1, 2007 | June 30, 2010 |
AIM FUNDS GROUP
| FUND | EFFECTIVE DATE | COMMITTED UNTIL | ||
AIM Basic Balanced Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM European Small Company Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Global Core Equity Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM International Small Company Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Mid Cap Basic Value Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Select Equity Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Small Cap Equity Fund
|
July 1, 2007 | June 30, 2010 |
AIM GROWTH SERIES
| FUND | EFFECTIVE DATE | COMMITTED UNTIL | ||
AIM Basic Value Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Global Equity Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Mid Cap Core Equity Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Small Cap Growth Fund
|
July 1, 2007 | June 30, 2010 |
5
AIM INTERNATIONAL MUTUAL FUNDS
| FUND | EFFECTIVE DATE | COMMITTED UNTIL | ||
AIM Asia Pacific Growth Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM European Growth Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Global Growth Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Global Small & Mid Cap Growth Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM International Core Equity Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM International Growth Fund
|
July 1, 2007 | June 30, 2010 |
AIM INVESTMENT FUNDS
| FUND | EFFECTIVE DATE | COMMITTED UNTIL | ||
AIM Balanced-Risk Allocation Fund*
|
May 29, 2009 | Xxxx 00, 0000 | ||
XXX Xxxxx Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Developing Markets Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Global Health Care Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM International Total Return Fund
|
July 1, 2007 | Xxxx 00, 0000 | ||
XXX Xxxxx Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM LIBOR Alpha Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Trimark Endeavor Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Trimark Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Trimark Small Companies Fund
|
July 1, 2007 | June 30, 2010 |
| * | Advisory fees to be waived by Invesco Aim for AIM Balanced-Risk Allocation Fund also include advisory fees that Invesco Aim receives on the Uninvested Cash from the Affiliated Money Market Fund in which Invesco Aim Cayman Commodity Fund I, Ltd. invests. |
AIM INVESTMENT SECURITIES FUNDS
| FUND | EFFECTIVE DATE | COMMITTED UNTIL | ||
AIM Core Bond Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Dynamics Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Global Real Estate Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM High Yield Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Income Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Limited Maturity Treasury Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Money Market Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Municipal Bond Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Real Estate Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Short Term Bond Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM U.S. Government Fund
|
July 1, 2007 | June 30, 2010 |
AIM SECTOR FUNDS
| FUND | EFFECTIVE DATE | COMMITTED UNTIL | ||
AIM Energy Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Financial Services Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Gold & Precious Metals Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Leisure Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Technology Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Utilities Fund
|
July 1, 2007 | June 30, 2010 |
AIM TAX-EXEMPT FUNDS
| FUND | EFFECTIVE DATE | COMMITTED UNTIL | ||
AIM High Income Municipal Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Tax-Exempt Cash Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM Tax-Free Intermediate Fund
|
July 1, 2007 | June 30, 2010 |
AIM VARIABLE INSURANCE FUNDS
| FUND | EFFECTIVE DATE | COMMITTED UNTIL | ||
AIM V.I. Basic Balanced Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Basic Value Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Capital Appreciation Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Capital Development Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Core Equity Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Diversified Income Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Dynamics Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Financial Services Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Global Health Care Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Global Real Estate Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Government Securities Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. High Yield Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. International Growth Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Large Cap Growth Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Leisure Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Mid Cap Core Equity Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Money Market Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. PowerShares ETF Allocation Fund
|
October 22, 2008 | June 30, 2010 | ||
AIM V.I. Small Cap Equity Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Technology Fund
|
July 1, 2007 | June 30, 2010 | ||
AIM V.I. Utilities Fund
|
July 1, 2007 | June 30, 2010 |
SHORT-TERM INVESTMENTS TRUST
| FUND | EFFECTIVE DATE | COMMITTED UNTIL | ||
Government TaxAdvantage Portfolio
|
July 1, 2007 | June 30, 2010 | ||
STIC Prime Portfolio
|
July 1, 2007 | June 30, 2010 | ||
Treasury Portfolio
|
July 1, 2007 | June 30, 2010 |
