Exhibit (h)(2)
OPERATIONAL SUPPORT SERVICES AGREEMENT
HSBC Investor Funds
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Amended and Restated June 16, 2003
THIS OPERATIONAL SUPPORT SERVICES AGREEMENT ("Agreement") is made between
HSBC Asset Management (Americas), Inc. ("Adviser") and HSBC Investor Funds
("Trust") on behalf of its series, HSBC Investor Money Market Fund, HSBC
Investor U.S. Government Money Market Fund, HSBC Investor U.S. Treasury Money
Market Fund, HSBC Investor New York Tax-Free Money Market Fund, HSBC Investor
California Tax-Free Money Market Fund and HSBC Investor Cash Management Fund
(each, a "Fund" and collectively, the "Funds").
WHEREAS, the Trust is a registered open-end investment company organized
as a Massachusetts business trust and currently consists of multiple separate
series;
WHEREAS, the Adviser has entered into an investment advisory contract with
the Trust to provide advisory services to the Funds (the "Advisory Agreement");
WHEREAS, the Adviser has agreed to provide in addition to the purely
investment advisory services provided pursuant to the Advisory Agreement,
certain administrative and operational support services in connection with the
operation of the Funds;
NOW, THEREFORE, in consideration of the mutual promises herein made, the
parties hereby agree as follows:
1. The Adviser agrees to provide the following operational support services
to the Funds:
(i) manage and coordinate the Funds' operations, including the
development of new product features and benefits;
(ii) compile statistical and research data required for the preparation
of reports and statements which are periodically distributed to
the Funds' officers and Trustees;
(iii) handle general inquiries from account representatives, such as
advice as to the status of shareholder accounts, the current yield
and dividends declared to date and provide assistance with other
questions related to shareholder accounts;
(iv) provide support to account representatives regarding Fund benefits
and features;
(v) provide operational assistance to account representatives
regarding opening new accounts, closing accounts and making
changes to the set-up of existing accounts;
(vi) provide marketing and promotional support to the account
representatives, including the development, production and
distribution of materials that promote the Funds, their features
and benefits;
(vii) assist in the development and ongoing operation of "sweep"
accounts utilizing the Funds;
(viii) compile information required in connection with the Funds' filings
with the Securities and Exchange Commission; and
(ix) provide such other services as agreed upon by both parities.
2. For its services, the Adviser shall be entitled to a fee (the "Operational
Support Fee") from each Fund's Class A, Class B, Class C, Class D and
Class Y shares, computed daily and paid monthly, equal on an annual basis
to the percentage of each Fund's average daily net assets set forth on
Schedule A, as in effect from time to time. The Adviser, in its sole
discretion, may waive all or any part the Operational Support Fee for any
class of shares of a Fund.
3. This Agreement shall remain in full force and effect through December 31,
2003, and thereafter from year to year to the extent continuance is
approved annually by the Board of Trustees of the Trust.
4. This Agreement may be amended or modified from time to time by both
parties in writing.
5. This Agreement may be terminated by the Trust at any time on sixty (60)
days' written notice without payment of penalty, provided that such
termination by the Trust shall be directed or approved by the vote of a
majority of the Trustees of the Trust in office at the time or by the vote
of a majority of the outstanding voting securities of the Trust as defined
by the Investment Company Act of 1940 Act ("1940 Act"); and shall
automatically and immediately terminate in the event of its assignment as
defined by the 1940 Act.
6. In the absence of willful misfeasance, bad faith or gross negligence on
the part of the Adviser, or of reckless disregard of its duties and
obligations hereunder, the Adviser shall not be subject to liability for
any act or omission in the course of, or connected with, rendering
services hereunder.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their duly authorized officers, and their respective corporate
seals to be hereunto duly affixed and attested.
HSBC INVESTOR FUNDS
By: ____________________
Name:
Title:
HSBC ASSET MANAGEMENT (AMERICAS), INC.
By: _____________________
Name:
Title:
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SCHEDULE A
to OPERATIONAL SUPPORT SERVICES AGREEMENT
dated as of June 16, 2003
Fund Operational Support Fee
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Money Market Fund 0.10%
U.S. Government Money Market Fund 0.10%
U.S. Treasury Money Market Fund 0.10%
New York Tax-Free Money Market Fund 0.05%
Cash Management Fund 0.10%
California Tax-Free Money Market Fund 0.10%
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