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EXHIBIT 10.10(B)
INVESTMENT SUB-ADVISORY AGREEMENT
AGREEMENT made this 16th day of May, by and between Nuveen Institutional
Advisory Corp., a Delaware corporation and registered investment adviser
("Manager"), and Institutional Capital Corporation, a Delaware corporation and
registered investment adviser ("Sub-Adviser").
WHEREAS, Manager expects to be the investment manager for the Nuveen
Investment Trust (the "Fund"), an open-end diversified, management investment
company registered under the Investment Company Act of 1940, as amended ("1940
Act"), currently consisting of three separate series or portfolios including
the Nuveen Growth and Income Stock Fund, the Nuveen Balanced Stock and Bond
Fund and the Nuveen Balanced Municipal and Stock Fund (the "Initial
Portfolios"); and
WHEREAS, Manager desires to retain Sub-Adviser as its agent to furnish
investment advisory services for the Initial Portfolios, upon the terms and
conditions hereafter set forth;
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:
1. Appointment. Manager hereby appoints Sub-Adviser to provide
certain sub-investment advisory services to the Initial Portfolios for
the period and on the terms set forth in this Agreement. Sub-Adviser
accepts such appointments and agrees to furnish the services herein set
forth for the compensation herein provided.
2. Additional Portfolios. In the event that the Fund establishes
one or more portfolios other than the Initial Portfolios, with respect to
which the Manager desires to engage the Sub-Adviser to render investment
advisory services hereunder, the Manager shall notify the Sub-Adviser of
such desire. If the Sub-Adviser is willing to render such services, it
shall notify the Manager in writing whereupon such portfolio or
portfolios shall become a Portfolio or Portfolios hereunder.
3. Services to be Performed. Subject always to the supervision of
Fund's Board of Trustees and the Manager, Sub-Adviser will furnish an
investment program in respect of, make investment decisions for, and
place all orders for the purchase and sale of securities for, the assets
designated in Schedule A hereto, as such schedule may be amended from
time to time, of the Initial Portfolios and other Portfolios hereunder,
all on behalf of such Portfolios. In the performance of its duties,
Sub-Adviser will satisfy its fiduciary duties to the Fund (as set forth
in Section 7, below), and will monitor the Portfolios' investments, and
will comply with the provisions of Fund's Declaration of Trust and
By-laws, as amended from time to time, and the stated investment
objectives, policies and restrictions of the Portfolios. Manager will
provide Sub-Adviser with current copies of the Fund's Declaration of
Trust, By-laws, prospectus and any amendments thereto, and any
objectives, policies or limitations not appearing therein as they may be
relevant to Sub-Adviser's performance under this Agreement. Sub-Adviser
and Manager will each make its officers and employees available to the
other from time to time at reasonable times to review investment policies
of the Portfolios and to consult with each other regarding the investment
affairs of the Portfolios. Sub-Adviser will report to the Board of
Trustees and to Manager with respect to the implementation of such
program.
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Sub-Adviser further agrees that it:
(a) will use the same degree of 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 to all applicable Rules and Regulations of the
Securities and Exchange Commission in all material respects and in
addition will conduct its activities under this Agreement in accordance
with any applicable regulations of any governmental authority pertaining
to its investment advisory activities;
(c) Sub-Adviser is authorized to select the brokers or dealers that
will execute the purchases and sales of portfolio securities for the
Portfolios and is directed to use its best efforts to obtain best
execution, which includes most favorable net results and execution of the
Fund's orders, taking into account all appropriate factors, including
price, dealer spread or commission, size and difficulty of the
transaction and research or other services provided. It is understood
that the Sub-Adviser will not be deemed to have acted unlawfully, or to
have breached a fiduciary duty to the Fund or in respect of any
Portfolio, or be in breach of any obligation owing to the Fund or in
respect of any Portfolio under this Agreement, or otherwise, solely by
reason of its having caused the Fund to pay a member of a securities
exchange, a broker or a dealer a commission for effecting a securities
transaction for the Fund in excess of the amount of commission another
member of an exchange, broker or dealer would have charged if the
Sub-Adviser determined in good faith that the commission paid was
reasonable in relation to the brokerage or research services provided by
such member, broker or dealer, viewed in terms of that particular
transaction or the Sub-Adviser's overall responsibilities with respect to
its accounts, including the Fund, as to which it exercises investment
discretion. In addition, if in the judgment of the Sub-Adviser, the Fund
would be benefited by supplemental services, the Sub-Adviser is
authorized to pay spreads or commissions to brokers or dealers furnishing
such services in excess of spreads or commissions which another broker or
dealer may charge for the same transaction, provided that the Sub-Adviser
determined in good faith that the commission or spread paid was
reasonable in relation to the services provided. The Sub-Adviser will
properly communicate to the officers and trustees of the Fund such
information relating to transactions for any Portfolio as they may
reasonably request. In no instance will portfolio securities be
purchased from or sold to the Manager, Sub-Adviser or any affiliated
person of either the Fund, Manager, or Sub-Adviser, except as may be
permitted under the 1940 Act;
(d) will report regularly to Manager and to the Board of Trustees
and will make appropriate persons available for the purpose of reviewing
with representatives of Manager and the Board of Trustees on a regular
basis at reasonable times the management of the Portfolios, including,
without limitation, review of the general investment strategies of the
Portfolios, the performance of the Portfolios in relation to standard
industry indices, interest rate considerations and general conditions
affecting the marketplace and will provide various other reports from
time to time as reasonably requested by Manager; and
(e) will prepare such books and records with respect to the
Portfolios' securities transactions as requested by the Manager and will
furnish Manager and Fund's Board of Trustees such periodic and special
reports as the Board or Manager may reasonably request.
4. Expenses. During the term of this Agreement, Sub-Adviser will
pay all expenses incurred by it in connection with its activities under
this Agreement other than the cost of securities (including brokerage
commission, if any) purchased for the Fund.
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5. Compensation. For the services provided and the expenses assumed
pursuant to this Agreement, Manager will pay the Sub-Adviser, and the
Sub-Adviser agrees to accept as full compensation therefor, at the end of
each calendar month, an equity or fixed income portfolio management fee
on the specified proportion of each Portfolio's average daily net asset
value set forth in Schedule A hereto, as such schedule may be amended
from time to time, at an annual rate as set forth below, which rate is
determined by reference to the average daily market value of the equity
and fixed income assets, respectively, of all Nuveen-sponsored investment
products for which Institutional Capital serves as portfolio manager,
applying the same proportions as set forth in Schedule A.
EQUITY ASSETS OF NUVEEN-SPONSORED
INVESTMENT PRODUCTS MANAGED BY
INSTITUTIONAL CAPITAL EQUITY MANAGEMENT FEE
For the first $500 million .35 of 1%
For the next $500 million .30 of 1%
For assets over $1 billion .25 of 1%
FIXED-INCOME ASSETS OF NUVEEN-SPONSORED
INVESTMENT PRODUCTS MANAGED BY
INSTITUTIONAL CAPITAL FIXED INCOME MANAGEMENT FEE
For the first $500 million .20 of 1%
For the next $500 million .15 of 1%
For assets over $1 billion .12 of 1%
For the month and year in which this Agreement becomes effective or
terminates, there shall be an appropriate proration on the basis of the
number of days that the Agreement is in effect during the month and year,
respectively.
6. Services to Others. Manager understands, and has advised Fund's
Board of Trustees, that Sub-Adviser now acts, or may in the future act,
as an investment adviser to fiduciary and other managed accounts, and as
investment adviser or sub-investment adviser to other investment
companies, provided that the Sub-Adviser conforms to the provisions of
the Joint Business Initiative Agreement, and further provided that
whenever the Fund and one or more other investment advisory clients of
Sub-Adviser have available funds for investment, investments suitable and
appropriate for each will be allocated in a manner believed by
Sub-Adviser to be equitable to each. Manager recognizes, and has advised
Fund's Board of Trustees, that in some cases this procedure may adversely
affect the size of the position that a Portfolio may obtain in a
particular security. It is further agreed that, on occasions when the
Sub-Adviser deems the purchase or sale of a security to be in the best
interests of the Fund as well as other accounts, it may, to the extent
permitted by applicable law, but will not be obligated to, aggregate the
securities to be so sold or purchased for the Fund with those to be sold
or purchased for other accounts in order to obtain favorable execution
and lower brokerage commissions. In addition, Manager understands, and
has advised Fund's Board of Trustees, that the persons employed by
Sub-Adviser to assist in Sub-Adviser's duties under this Agreement will
not devote their full time to such service and nothing contained in this
Agreement will be deemed to limit or restrict the right of Sub-Adviser or
any of its affiliates to engage in and devote time and attention to other
businesses or to render services of whatever kind or nature. It is also
agreed that the Sub-Adviser may use any supplemental research obtained
for the benefit
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of the Fund in providing investment advice to its other investment
advisory accounts or for managing its own accounts.
7. Limitation of Liability. Manager will not take any action against
Sub-Adviser to hold Sub-Adviser liable for any error of judgment or
mistake of law or for any loss suffered by the Fund in connection with
the performance of Sub-Adviser's duties under this Agreement, except for
a loss resulting from Sub-Adviser's willful misfeasance, bad faith, or
gross negligence in the performance of its duties or by reason of its
reckless disregard of its obligations and duties under this Agreement.
8. Cross-Indemnification. Each party to this Agreement
("Indemnitor") shall indemnify and hold the other party and its officers,
directors, employees, representatives, agents, and affiliates
(collectively, "Indemnitee") harmless as follows:
a. Duty to Indemnify. Each Indemnitee shall be indemnified
against any and all losses, liabilities, damages, expenses and
other costs (including, without limitation, Indemnitee's own
attorneys' and paralegals' fees and other litigation expenses)
suffered or incurred by Indemnitee arising out of or in connection
with any breach or violation of this Agreement, federal or state
statutes, rules or regulations, exchange or self-regulatory agency
rules and regulations, or common law that is attributable in whole
or, to the extent responsible, in part to Indemnitor's actions or
the actions of any person whom Indemnitor may supervise or
control, in any civil, criminal, administrative, arbitration,
mediation or other proceeding.
b. Notice of Claims. An Indemnitee asserting an indemnity
claim shall promptly notify Indemnitor in writing of the amount
and nature of the claim. Upon receipt of an indemnity claim, the
Indemnitor shall, within 30 days, fulfill any part of its
obligation then due under this Section or give Indemnitee a
written explanation for its denial of the claim. If any indemnity
claim is not denied, Indemnitor shall continue to fulfill its
indemnity obligations as and when they come due. The Indemnitee
shall be entitled at its expense to participate in the defense of
any claim, lawsuit, or proceedings. No claim asserted by a third
party for which indemnification from Indemnitor is sought shall be
settled without first obtaining the written consent of Indemnitor,
which consent shall not be unreasonably withheld.
9. Term; Termination; Amendment. This Agreement shall become
effective with respect to the Initial Portfolios on the same date as the
Management Agreement between the Fund and the Manager becomes effective;
provided that it has been approved by a vote of a majority of the
outstanding voting securities of each Portfolio in accordance with the
requirements of the 1940 Act and shall remain in full force for a period
ending two (2) years from such date unless sooner terminated as
hereinafter provided. This Agreement shall continue in force from year
to year thereafter with respect to each Portfolio, but only as long as
such continuance is specifically approved for each Portfolio at least
annually in the manner required by the 1940 Act and the rules and
regulations thereunder; provided, however, that if the continuation of
this Agreement is not approved for a Portfolio, the Sub-Adviser may
continue to serve in such capacity for such Portfolio in the manner and
to the extent permitted by the 1940 Act and the rules and regulations
thereunder.
This Agreement shall automatically terminate in the event of its
assignment and may be terminated at any time without the payment of any
penalty by the Manager on sixty (60) days' written notice to the
Sub-Adviser. This Agreement may also be terminated by the Fund with
respect to any Portfolio by action of the Board of Trustees or by a vote
of a majority of the
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outstanding voting securities of such Portfolio on sixty (60) days'
written notice to the Sub-Adviser by the Fund.
This Agreement may be terminated with respect to any Portfolio at
any time without the payment of any penalty by the Manager, the Board of
Trustees or by vote of a majority of the outstanding voting securities of
such Portfolio in the event that it shall have been established by a
court of competent jurisdiction that the Sub-Adviser or any officer or
director of the Sub-Adviser has taken any action which results in a
breach of the covenants of the Sub-Adviser set forth herein.
The terms "assignment" and "vote of a majority of the outstanding
voting securities" shall have the meanings set forth in the 1940 Act and
the rules and regulations thereunder.
Termination of this Agreement shall not affect the right of the
Sub-Adviser to receive payments on any unpaid balance of the compensation
described in Section 5 earned prior to such termination.
This Agreement shall automatically terminate in the event the
Investment Management Agreement between the Manager and the Fund is
terminated, assigned or not renewed.
10. Notice. Any notice under this Agreement shall be in writing,
addressed and delivered or mailed, postage prepaid, to the other party at
such address as such other party may designate for the receipt of such
notice.
11. Limitations on Liability. All parties hereto are expressly put
on notice of the Fund's Agreement and Declaration of Trust and all
amendments thereto, all of which are on file with the Secretary of
Massachusetts, and the limitation of shareholder and trustee liability
contained therein. The obligations of the Fund entered in the name or on
behalf thereof by any of the Trustees, representatives or agents are made
not individually but only in such capacities and are not binding upon any
of the Trustees, officers, or shareholders of the Fund individually but
are binding upon only the assets and property of the Fund, and persons
dealing with the Fund must look solely to the assets of the Fund and
those assets belonging to the subject Portfolio, for the enforcement of
any claims.
12. 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 is held or made invalid by a court
decision, statute, rule or otherwise, the remainder of this Agreement
will not be affected thereby. This Agreement will be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors.
13. Applicable Law. This Agreement shall be construed in accordance
with applicable federal law and (except as to Section 11 hereof which
shall be construed in accordance with the laws of Massachusetts) the laws
of the State of Illinois.
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IN WITNESS WHEREOF, the Manager and the Sub-Adviser have caused this
Agreement to be executed as of the day and year first above written.
NUVEEN INSTITUTIONAL ADVISORY
CORP., a Delaware corporation
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇▇
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Title: Executive Vice President
ATTEST:
/S/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
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Title: Secretary
INSTITUTIONAL CAPITAL CORPORATION,
a Delaware corporation
By: /S/ ▇▇▇▇▇▇ ▇. ▇▇▇▇
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Title: President
ATTEST:
/S/ ▇▇▇▇ ▇. ▇▇▇▇
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Title: Secretary
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INVESTMENT SUB-ADVISORY AGREEMENT
Schedule A
Nuveen Growth and Income Stock Fund
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Assets for which Services are to be rendered pursuant to Section 3: All
Proportions applied under fee schedule pursuant to Section 5: 100% of all assets
under Equity
Management Fee
Nuveen Balanced Stock and Bond Fund
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Assets for which Services are to be rendered pursuant to Section 3: All
Proportions applied under fee schedule pursuant to Section 5: The percentage of
the Target
Investment mix
allocated by the
Fund Board of
Directors from time
to time to Equity
Securities under
Equity Management
Fee
All remaining assets
under Fixed Income
Management Fee
Nuveen Balanced Municipal Stock Fund
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Assets for which Services are to be rendered pursuant to Section 3: All Equity Securities
Proportions applied under fee schedule pursuant to Section 5: 40% of all assets
under Equity
Management Fee