Exhibit No. 4
INVESTMENT ADVISORY AND ADMINISTRATION CONTRACT
Contract made as of_________, 1998 between ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ INSTITUTIONAL
SERIES, a Delaware business trust ("Trust"), and ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ASSET
MANAGEMENT INC. ("▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇"), a Delaware corporation registered as a
broker-dealer under the Securities Exchange Act of 1934, as amended ("1934
Act"), and as an investment adviser under the Investment Advisers Act of 1940,
as amended.
WHEREAS the Trust is registered under the Investment Company Act of 1940,
as amended ("1940 Act"), as an open-end management investment company, and
intends to offer for public sale distinct series of shares of beneficial
interest ("Series"), each corresponding to a distinct portfolio; and
WHEREAS the Trust desires to retain ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ as investment adviser
and administrator to furnish certain administrative, investment advisory and
portfolio management services to the Trust and each Series as now exists and as
hereafter may be established (provided that the Board of Trustees ("Board")
approves the applicability of this Contract to such subsequent Series), and
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ is willing to furnish such services;
NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, it is agreed between the parties hereto as follows:
1. Appointment. The Trust hereby appoints ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ as investment
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adviser and administrator of the Trust and each Series for the period and on the
terms set forth in this Contract. ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ accepts such appointment
and agrees to render the services herein set forth, for the compensation herein
provided.
2. Duties as Investment Adviser.
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(a) Subject to the supervision of the Board, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ will provide
a continuous investment program for each Series, including investment research
and management with respect to all securities and investments and cash
equivalents in each Series. ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ will determine from time to time
what securities and other investments will be purchased, retained or sold by
each Series.
(b) ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ agrees that in placing orders with brokers, it will
attempt to obtain the best net result in terms of price and execution; provided
that, on behalf of any Series, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ may, in its discretion, use
brokers who provide the Series with research, analysis, advice and similar
services to execute portfolio transactions on behalf of the Series, and ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ may pay to those brokers in return for brokerage and research services
a higher commission than may be charged by other brokers, subject to ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇' determining in good faith that such commission is reasonable in terms
either of the particular transaction or of the
overall responsibility of ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ to such Series and its other clients
and that the total commissions paid by such Series will be reasonable in
relation to the benefits to the Series over the long term. In no instance will
portfolio securities be purchased from or sold to ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, or any
affiliated person thereof, except in accordance with the federal securities laws
and the rules and regulations thereunder. Whenever ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
simultaneously places orders to purchase or sell the same security on behalf of
a Series and one or more other accounts advised by ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, such
orders will be allocated as to price and amount among all such accounts in a
manner believed to be equitable to each account. The Trust recognizes that in
some cases this procedure may adversely affect the results obtained for the
Series.
(c) ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ will oversee the maintenance of all books and records
with respect to the securities transactions of each Series, and will furnish the
Board with such periodic and special reports as the Board reasonably may
request. In compliance with the requirements of Rule 31a-3 under the 1940 Act,
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ hereby agrees that all records which it maintains for the
Trust are the property of the Trust, agrees to preserve for the periods
prescribed by Rule 31a-2 under the 1940 Act any records which it maintains for
the Trust and which are required to be maintained by Rule 31a-1 under the 1940
Act and further agrees to surrender promptly to the Trust any records which it
maintains for the Trust upon request by the Trust.
(d) ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ will oversee the computation of the net asset value
and the net income of each Series as described in the currently effective
registration statement of the Trust under the Securities Act of 1933, as
amended, and the 1940 Act and any supplements thereto ("Registration Statement")
or as more frequently requested by the Board.
(e) The Trust hereby authorizes ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ and any entity or person
associated with ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ which is a member of a national securities
exchange to effect any transaction on such exchange for the account of any
Series, which transaction is permitted by Section 11(a) of the 1934 Act, and the
Trust hereby consents to the retention of compensation by ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ or
any person or entity associated with ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇.
3. Duties as Administrator. ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ will administer the affairs
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of the Trust and each Series subject to the supervision of the Board and the
following understandings:
(a) ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ will supervise all aspects of the operations of the
Trust and each Series, including oversight of transfer agency, custodial and
accounting services, except as hereinafter set forth; provided, however, that
nothing herein contained shall be deemed to relieve or deprive the Board of its
responsibility for and control of the conduct of the affairs of the Trust and
each Series.
(b) ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ will provide the Trust and each Series with such
corporate, administrative and clerical personnel (including officers of the
Trust) and services as are reasonably deemed necessary or advisable by the
Board, including the maintenance of certain books and records of the Trust and
each Series.
(c) ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ will arrange for the periodic preparation, updating,
filing and dissemination (as applicable) of the Trust's Registration Statement,
proxy material, tax returns and
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required reports to each Series' shareholders and the Securities and Exchange
Commission and other appropriate federal or state regulatory authorities.
(d) ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ will provide the Trust and each Series with, or
obtain for it, adequate office space and all necessary office equipment and
services, including telephone service, heat, utilities, stationery supplies and
similar items.
(e) ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ will provide the Board on a regular basis with
economic and investment analyses and reports and make available to the Board
upon request any economic, statistical and investment services normally
available to institutional or other customers of ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇.
4. Further Duties. In all matters relating to the performance of this
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Contract, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ will act in conformity with the Trust Instrument,
By-Laws and Registration Statement of the Trust and with the instructions and
directions of the Board and will comply with the requirements of the 1940 Act,
the rules thereunder, and all other applicable federal and state laws and
regulations.
5. Delegation of ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇' Duties as Investment Adviser and
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Administrator. With respect to any or all Series, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ may enter
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into one or more contracts ("Sub-Advisory or Sub-Administration Contract") with
a sub-adviser or sub-administrator in which ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ delegates to such
sub-adviser or sub-administrator any or all its duties specified in Paragraphs 2
and 3 of this Contract, provided that each Sub-Advisory or Sub-Administration
Contract imposes on the sub-adviser or sub-administrator bound thereby all
applicable duties and conditions to which ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ is subject by
Paragraphs 2, 3 and 4 of this Contract, and further provided that each Sub-
Advisory or Sub-Administration Contract meets all requirements of the 1940 Act
and rules thereunder.
6. Services Not Exclusive. The services furnished by ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
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hereunder are not to be deemed exclusive and ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ shall be free to
furnish similar services to others so long as its services under this Contract
are not impaired thereby. Nothing in this Contract shall limit or restrict the
right of any director, officer or employee of ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, who may also be
a Trustee, officer or employee of the Trust, to engage in any other business or
to devote his or her time and attention in part to the management or other
aspects of any other business, whether of a similar nature or a dissimilar
nature.
7. Expenses.
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(a) ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ will bear all expenses incurred in the operation of
each Series to which this Contract is applicable, including the Series'
allocable share of the expenses of the Trust, other than (i) the investment and
advisory fee payable under this Contract, (ii) the fees payable pursuant to any
Shareholder Service Plan adopted by the Trust with respect to the Series or a
class of shares of the Series, (iii) fees and expenses of the Independent
Trustees (defined in paragraph 10(a) below), including counsel fees of the
Independent Trustees, (iv) interest, taxes and the cost (including brokerage
commissions and other transaction costs, if any) of securities purchased or sold
by the Series and any losses incurred in connection therewith and (v)
extraordinary expenses
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(such as costs of litigation to which the Trust or a Series is a party and of
indemnifying officers and Trustees of the Trust), which will be borne by the
Trust or Series, as applicable.
(b) The expenses to be borne by ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ include the following (or
each Series' proportionate share of the following): (i) expenses of organizing
the Trust and the Series; (ii) filing fees and expenses relating to the
registration and qualification of the Series' shares and the Trust under federal
and/or state securities laws and maintaining such registration and
qualifications; (iii) fees and salaries payable to the Trust's Trustees and
officers; (iv) all expenses incurred in connection with the services of Trustees
other than the Independent Trustees, including travel expenses; (v) costs of any
liability, uncollectible items of deposit and other insurance and fidelity
bonds; (vi) legal, accounting and auditing expenses, other than the legal fees
of special counsel for the Independent Trustees; (vii) charges of custodians,
transfer agents and other agents (including any lending agent); (viii) costs of
preparing share certificates; (ix) expenses of setting in type and printing
prospectuses and supplements thereto, statements of additional information and
supplements thereto, reports and proxy materials for existing shareholders; (x)
costs of mailing prospectuses and supplements thereto, statements of additional
information and supplements thereto, reports and proxy materials to existing
shareholders; (xi) fees, voluntary assessments and other expenses incurred in
connection with membership in investment company organizations; (xii) the cost
of mailing and tabulating proxies and costs of meetings of shareholders, the
Board and any committees thereof; (xii) the cost of investment company
literature and other publications provided by the Trust to its Trustees and
officers; (xiii) costs of mailing, stationery and communications equipment;
(xiv) expenses incident to any dividend, withdrawal or redemption options; (xv)
charges and expenses of any outside pricing service used to value portfolio
securities; and (xvi) interest on borrowings of the Fund.
(c) The payment or assumption by ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ of any expenses of the
Trust or a Series that ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ is not required by this Contract to pay
or assume shall not obligate ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ to pay or assume the same or any
similar expense of the Trust or a Series on any subsequent occasion.
8. Compensation.
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(a) For the services provided and the expenses assumed pursuant to this
Contract, with respect to the Trust's existing Series, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Institutional Money Fund, the Trust will pay to ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ a fee,
computed daily and paid monthly, at an annual rate of 0.18% of such Series'
average daily net assets less that Series' allocable share of the accrued fees
and expenses of the Independent Trustees (including counsel fees of the
Independent Trustees).
(b) For the services provided and the expenses assumed pursuant to this
Contract with respect to any Series hereafter established and for which the
Board approves the applicability of this Contract, the Trust will pay to
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ from the assets of such Series a fee in an amount to be agreed
upon in a written fee agreement ("Fee Agreement") executed by the Trust on
behalf of such Series and by ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇. All such Fee Agreements shall
provide that they are subject to all terms and conditions of this Contract.
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(c) The fee shall be computed daily and paid monthly to ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
on or before the first business day of the next succeeding calendar month.
(d) If this Contract becomes effective or terminates before the end of any
month, the fee for the period from the effective day to the end of the month or
from the beginning of such month to the date of termination, as the case may be,
shall be prorated according to the proportion which such period bears to the
full month in which such effectiveness or termination occurs.
9. Limitation of Liability of ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇. ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ and
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its delegates, including any Sub-Adviser or Sub-Administrator to any Series or
the Trust, shall not be liable for any error of judgment or mistake of law or
for any loss suffered by any Series, the Trust or any of its shareholders, in
connection with the matters to which this Contract relates, except to the extent
that such a loss results from willful misfeasance, bad faith or gross negligence
on its part in the performance of its duties or from reckless disregard by it of
its obligations and duties under this Contract. Any person, even though also an
officer, director, employee, or agent of ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, who may be or become
an officer, Trustee, employee or agent of the Trust shall be deemed, when
rendering services to any Series or the Trust or acting with respect to any
business of such Series or the Trust, to be rendering such service to or acting
solely for the Series or the Trust and not as an officer, director, employee, or
agent or one under the control or direction of ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ even though
paid by it.
10. Duration and Termination.
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(a) This Contract shall become effective upon the date hereabove written
provided that, with respect to any Series, this Contract shall not take effect
unless it has first been approved (i) by a vote of a majority of those Trustees
of the Trust who are not parties to this Contract or interested persons of any
such party ("Independent Trustees") cast in person at a meeting called for the
purpose of voting on such approval, and (ii) by vote of a majority of that
Series' outstanding voting securities.
(b) Unless sooner terminated as provided herein, this Contract shall
continue in effect for two years from the above written date. Thereafter, if
not terminated, this Contract shall continue automatically for successive
periods of twelve months each, provided that such continuance is specifically
approved at least annually (i) by a vote of a majority of the Independent
Trustees, cast in person at a meeting called for the purpose of voting on such
approval, and (ii) by the Board or, with respect to any given Series, by vote of
a majority of the outstanding voting securities of such Series.
(c) Notwithstanding the foregoing, with respect to any Series this Contract
may be terminated at any time, without the payment of any penalty, by vote of
the board or by a vote of a majority of the outstanding voting securities of
such Series on sixty days' written notice to ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ or by ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ at any time, without the payment of any penalty, on sixty days' written
notice to the Trust. Termination of this Contract with respect to any given
Series shall in no way affect the continued validity of this Contract or the
performance thereunder with respect to any other Series. This Contract will
automatically terminate in the event of its assignment.
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11. Limitation of Liability of the Trustees and Shareholders of the Trust.
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The Trustees of the Trust and the shareholders of any Series shall not be liable
for any obligations of any Series or the Trust under this Contract, and ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ agrees that, in asserting any rights or claims under this Contract, it
shall look only to the assets and property of the Trust in settlement of such
right or claim, and not to such Trustees or shareholders.
12. Amendment of this Contract. No provision of this Contract may be
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changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against which enforcement of the change, waiver,
discharge or termination is sought, and no amendment of this Contract as to any
given Series shall be effective until approved by vote of a majority of such
Series' outstanding voting securities.
13. Governing Law. This Contract shall be construed in accordance with
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the laws of the State of Delaware, without giving effect to the conflicts of
laws principles thereof, and in accordance with the 1940 Act. To the extent
that the applicable laws of the State of Delaware conflict with the applicable
provisions of the 1940 Act, the latter shall control.
14. Miscellaneous. The captions in this Contract are included for
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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 Contract shall be held or made invalid by a court decision,
statute, rule or otherwise, the remainder of this Contract shall not be affected
thereby. This Contract shall be binding upon and shall inure to the benefit of
the parties hereto and their respective successors. As used in this Contract,
the terms "majority of the outstanding voting securities", "affiliated person",
"interested person", "assignment", "broker", "investment adviser", "national
securities exchange", "net assets", "prospectus", "sale", "sell" and "security"
shall have the same meaning as such terms have in the 1940 Act and the rules and
regulations thereunder, subject to such exemptions as may be granted by the
Securities and Exchange Commission. Where the effect of a requirement of the
1940 Act reflected in any provision of this Contract is relaxed by a rule,
regulation, order or other action of the Securities and Exchange Commission,
whether of special or general application, such provision shall be deemed to
incorporate the effect of such rule, regulation, order or other action.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their officers and delivered as of the day and year first above
written.
Attest: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ASSET MANAGEMENT INC.
By
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Attest: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ INSTITUTIONAL SERIES
By
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