Exhibit d.6
SUBADVISORY AGREEMENT
SUBADVISORY AGREEMENT
THIS AGREEMENT is made by and among AELTUS INVESTMENT MANAGEMENT, INC., a
Connecticut corporation (the "Adviser"), AETNA SERIES FUND, INC., a Maryland
Corporation (the "Fund"), on behalf of its AETNA TECHNOLOGY FUND (the "Series")
and ▇▇▇▇▇▇ Asset Management, LLC, a Delaware limited liability corporation (the
"Subadviser"), as of the date set forth below.
W I T N E S S E T H
WHEREAS, the Fund is registered with the Securities and Exchange Commission (the
"Commission") as an open-end, diversified, management investment company
consisting of multiple investment portfolios, under the Investment Company Act
of 1940, as amended (the "1940 Act"); and
WHEREAS, pursuant to authority granted by the Fund's Articles of Incorporation,
the Fund has established the Series as a separate investment portfolio; and
WHEREAS, both the Adviser and the Subadviser are registered with the Commission
as investment advisers under the Investment Advisers Act of 1940, as amended
(the "Advisers Act") and both are in the business of acting as investment
advisers; and
WHEREAS, the Adviser has entered into an Investment Advisory Agreement with the
Fund, on behalf of the Series (the "Investment Advisory Agreement"), which
appoints the Adviser as the investment adviser for the Series; and
WHEREAS, the Investment Advisory Agreement authorizes the Adviser to delegate
all or a portion of its obligations under the Investment Advisory Agreement to a
subadviser;
NOW THEREFORE, the parties agree as follows:
I. APPOINTMENT AND OBLIGATIONS OF THE ADVISER
Subject to the terms and conditions of this Agreement, the Adviser and the Fund,
on behalf of the Series, hereby appoint the Subadviser to manage the assets of
the Series as set forth below in Section II, under the supervision of the
Adviser and subject to the approval and direction of the Fund's Board of
Directors (the "Board"). The Subadviser hereby accepts such appointment and
agrees that it shall, for all purposes herein, undertake such obligations as an
independent contractor and not as an agent of the Adviser. The Subadviser agrees
that except as required to carry out its duties under this Agreement or as
otherwise expressly authorized, it has no authority to act for or represent the
Series, the Fund or the Adviser in any way. The Subadviser agrees that the
Adviser shall have the right at all times upon reasonable notice to inspect the
offices and the records of the Subadviser that relate to the Subadviser's
performance of this Agreement.
II. DUTIES OF THE SUBADVISER AND THE ADVISER
A. DUTIES OF THE SUBADVISER
The Subadviser shall regularly provide investment advice with respect
to the assets held by the Series and shall continuously supervise the
investment and reinvestment of securities, instruments or other
property (excluding cash and cash instruments) comprising the assets of
the Series. In carrying out these duties, the Subadviser shall:
1. select the securities (other than cash instruments) to be
purchased, sold or exchanged by the Series or otherwise
represented in the Series' investment portfolio and
regularly report thereon to the Adviser and, at the request
of the Adviser, to the Board;
2. place trade orders with broker-dealers. The Subadviser
shall use its best efforts to seek to execute portfolio
transactions at prices that are advantageous to the Series
giving consideration to the services and research provided
and at commission rates that are reasonable in relation to
the benefits received;
3. formulate and implement continuing programs for the
purchase and sale of securities (other than cash
instruments) and regularly report thereon to the Adviser
and, at the request of the Adviser or the Series, to the
Board;
4. inform the Adviser on a daily basis of the amount of Series
assets that will need to be invested or reinvested in cash
and cash instruments; and
5. establish and maintain appropriate policies and procedures
including, but not limited to, a code of ethics, which are
designed to ensure that the management of the Series is
implemented in compliance with the 1940 Act, the Advisers
Act, and the rules thereunder.
B. DUTIES OF THE ADVISER
The Adviser shall retain responsibility for oversight of all activities
of the Subadviser and for monitoring its activities on behalf of the
Series. The Adviser also is responsible for the investment and
reinvestment of cash and cash instruments maintained by the Series. In
carrying out its obligations under this Agreement and the Investment
Advisory Agreement, the Adviser shall:
1. monitor the investment program maintained by the Subadviser
for the Series and the Subadviser's compliance program to
ensure that the Series' assets are invested in compliance
with the Subadvisory Agreement and the Series' investment
objectives and policies as adopted by the Board and
described in the most current effective amendment of the
registration statement for the Fund, as filed with the
Commission under the Securities Act of 1933, as amended
(the "1933 Act"), and the 1940 Act ("Registration
Statement");
2. formulate and implement continuing programs for the
purchase and sale of cash and cash instruments;
3. file all periodic reports pertaining to the Series required
to be filed with the applicable regulatory authorities;
4. review and deliver to the Board all financial, performance
and other reports prepared by the Subadviser and/or Adviser
under the provisions of this Agreement or as requested by
the Board;
5. maintain contact with and enter into arrangements with
the custodian, transfer agent, auditors, outside counsel,
and other third parties providing services to the Series;
and
6. give instructions to the custodian and/or sub-custodian of
the Series, concerning deliveries of securities and
payments of cash for the Series, as required to carry out
the investment activities of the Series as contemplated by
this Agreement.
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To the extent that the Series incurs a loss as a result of the
Adviser's failure to adequately fulfill its duties hereunder, and not
as a result of the Subadviser's negligence, the Adviser agrees that it
shall be solely responsible to make the Series whole.
III. REPRESENTATIONS AND WARRANTIES
A. REPRESENTATIONS AND WARRANTIES OF THE SUBADVISER
The Subadviser hereby represents and warrants to the Fund and Adviser
as follows:
1. DUE ORGANIZATION AND AUTHORIZATION. The Subadviser is duly
organized and is in good standing under the laws of the
State of Delaware and is fully authorized to enter into
this Agreement and carry out its duties and obligations
hereunder.
2. REGISTRATION. The Subadviser is registered as an investment
adviser with the Commission under the Advisers Act. The
Subadviser shall maintain such registration in effect at
all times during the term of this Agreement.
3. REGULATORY ORDERS. The Subadviser is not subject to any
stop orders, injunctions or other orders of any regulatory
authority affecting its ability to carry out the terms of
this Agreement. The Subadviser will notify the Adviser and
the Series immediately if any such order is issued or if
any proceeding is commenced that could result in such an
order.
4. COMPLIANCE. The Subadviser has in place compliance systems
and procedures designed to meet the requirements of the
Advisers Act and the 1940 Act and it shall at all times
assure that its activities in connection with managing the
Series follow these procedures.
B. REPRESENTATIONS AND WARRANTIES OF THE ADVISER
The Adviser hereby represents and warrants to the Subadviser as
follows:
1. DUE ORGANIZATION AND AUTHORIZATION. The Adviser is duly
organized and is in good standing under the laws of the
State of Connecticut and is fully authorized to enter into
this Agreement and carry out its duties and obligations
hereunder.
2. REGISTRATION. The Adviser is registered as an investment
adviser with the Commission under the Advisers Act. The
Adviser shall maintain such registration or license in
effect at all times during the term of this Agreement.
3. REGULATORY ORDERS. The Adviser is not subject to any stop
orders, injunctions or other orders of any regulatory
authority affecting its ability to carry out the terms of
this Agreement. The Adviser will notify the Subadviser and
the Series immediately if any such order is issued or if
any proceeding is commenced that could result in such an
order.
4. COMPLIANCE. The Adviser has in place compliance systems and
procedures designed to meet the requirements of the
Advisers Act and the 1940 Act and it shall at all times
assure that its activities in connection with managing the
Series follow these procedures.
C. REPRESENTATIONS AND WARRANTIES OF THE FUND
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The Fund hereby represents and warrants to the Adviser and Subadviser
as follows:
1. DUE ORGANIZATION AND AUTHORIZATION. The Fund has been duly
incorporated as a Corporation under the laws of the State
of Maryland and it is authorized to enter into this
Agreement and carry out its obligations hereunder.
2. REGISTRATION. The Fund is registered as an investment
company with the Commission under the 1940 Act and shares
of the Fund are registered or qualified for offer and sale
to the public under the 1933 Act and all applicable state
securities laws. Such registrations or qualifications will
be kept in effect during the term of this Agreement.
IV. BROKER-DEALER RELATIONSHIPS
In selecting broker-dealers qualified to execute a particular equity
transaction, brokers or dealers may be selected who also provide brokerage or
research services (as those terms are defined in Section 28(e) of the Securities
Exchange Act of 1934) to the Subadviser and/or the other accounts over which the
Subadviser or its affiliates exercise investment discretion. The Subadviser is
authorized to pay a broker or dealer that provides such brokerage or research
services a commission for executing a portfolio transaction for the Series that
is in excess of the amount of commission another broker or dealer would have
charged for effecting that transaction if the Subadviser determines in good
faith that such amount of commission is reasonable in relation to the value of
the brokerage or research services provided by such broker or dealer and is paid
in compliance with Section 28(e). This determination may be viewed in terms of
either that particular transaction or the overall responsibilities that the
Subadviser and its affiliates have with respect to accounts over which they
exercise investment discretion. The Subadviser may consider the sale of shares
of the Series and of other investment companies advised by the Adviser as a
factor in the selection of brokers or dealers to effect transactions for the
Series, subject to the Subadviser's duty to seek best execution. The Subadviser
may also select brokers or dealers to effect transactions for the Series that
provide payment for expenses of the Series. The Board shall periodically review
the commissions paid by the Series to determine if the commissions paid over
representative periods of time were reasonable in relation to the benefits
received.
V. CONTROL BY THE BOARD OF DIRECTORS
Any investment program undertaken by the Subadviser pursuant to this Agreement,
as well as any other activities undertaken by the Subadviser at the direction of
the Adviser on behalf of the Series, shall at all times be subject to any
directives of the Board.
VI. COMPLIANCE WITH APPLICABLE REQUIREMENTS
In carrying out its obligations under this Agreement, the Adviser and Subadviser
shall at all times conform to:
1. all applicable provisions of the 1940 Act, the Advisers Act
and any rules and regulations adopted thereunder;
2. all policies and procedures of the Series as adopted by the
Board and as described in the Registration Statement;
3. the provisions of the Articles of Incorporation of the
Fund, as amended from time to time;
4. the provisions of the Bylaws of the Fund, as amended from
time to time; and
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5. any other applicable provisions of state or federal law.
VII. COMPENSATION
The Adviser shall pay the Subadviser, as compensation for services rendered
hereunder, from its own assets, an annual fee equal to 0.50% of the average
daily net assets in the Series. The fee shall be payable monthly. Except as
hereinafter set forth, compensation under this Agreement shall be calculated and
accrued daily at the rate of 1/365 of the annual fee applied to the daily net
assets of the Series. If this Agreement becomes effective subsequent to the
first day of a month or shall terminate prior to the last day of a month,
compensation for that part of the month this Agreement is in effect shall be
prorated in a manner consistent with the calculation of the fees set forth
above.
VIII. ALLOCATION OF EXPENSES
The Subadviser shall pay the salaries, employment benefits and other related
costs of those of its personnel engaged in providing investment advice to the
Series hereunder, including, but not limited to, office space, office equipment,
telephone and postage costs. The Subadviser shall not be responsible for any
other expenses related to the operation of the Fund.
IX. NONEXCLUSIVITY
The services of the Subadviser with respect to the Series are not to be deemed
to be exclusive, and the Subadviser shall be free to render investment advisory
and administrative or other services to others (including other investment
companies) and to engage in other activities. It is understood that officers or
directors of the Subadviser are not prohibited from engaging in any other
business activity or from rendering services to any other person, or from
serving as partners, officers, directors or trustees of any other firm or trust,
including other investment advisory companies.
X. TERM
This Agreement shall become effective at the close of business on the date
hereof and shall remain in force and effect through December 31, 2001, unless
earlier terminated under the provisions of Article XI. Following the expiration
of its initial term, the Agreement shall continue in force and effect for one
year periods, provided such continuance is specifically approved at least
annually:
1. (a) by the Board or (b) by the vote of a majority of the
Series' outstanding voting securities (as defined in
Section 2(a)(42) of the 1940 Act), and
2. by the affirmative vote of a majority of the directors who
are not parties to this Agreement or interested persons of
a party to this Agreement (other than as a director of the
Fund), by votes cast in person at a meeting specifically
called for such purpose.
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XI. TERMINATION
This Agreement may be terminated:
1. at any time, without the payment of any penalty, by vote of
the Board, including a majority of its disinterested
directors, or by vote of a majority of the outstanding
voting securities of the Series; or
2. by the Subadviser on sixty (60) days' written notice to
both the Adviser and the Fund, unless written notice is
waived by the party(ies) required to be notified; or
3. automatically in the event there is an "assignment" of this
Agreement, as defined in the 1940 Act.
XII. LIABILITY
The Subadviser shall be liable to the Series and the Subadviser and shall
indemnify the Series and the Adviser for any losses incurred by the Series or
the Adviser whether in the purchase, holding, or sale of any security or
otherwise, to the extent that such losses resulted from an act or omission on
the part of the Subadviser or its officers, directors or employees, that is
found to involve willful misfeasance, bad faith or negligence, or reckless
disregard by the Subadviser of its duties under this Agreement, in connection
with the services rendered by the Subadviser hereunder.
The Adviser shall be liable to the Series and the Subadviser and shall indemnify
the Series and the Subadviser for any losses incurred by the Series or the
Subadviser whether in the purchase, holding, or sale of any security or
otherwise, to the extent that such losses resulted from an act or omission on
the part of the Adviser or its officers, directors or employees, that is found
to involve willful misfeasance, bad faith or negligence, or reckless disregard
by the Adviser of its duties under this Agreement, in connection with the
services rendered by the Adviser hereunder.
Nothing herein shall relieve the Adviser of its responsibilities to the Fund, as
set forth in the Investment Advisory Agreement.
XIII. NOTICES
Any notices under this Agreement shall be in writing, addressed and delivered,
mailed postage paid, or sent by other delivery service, or by facsimile
transmission to each party at such address as each party may designate for the
receipt of notice. Until further notice, such address shall be:
IF TO THE FUND, ON BEHALF OF THE SERIES OR THE ADVISER:
▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Fax number: 860/▇▇▇-▇▇▇▇
Attn: Secretary
IF TO THE SUBADVISER:
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Fax number: 415/▇▇▇-▇▇▇▇
Attention: Chief Executive Officer
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XIV. QUESTIONS OF INTERPRETATION
This Agreement shall be governed by the laws of the State of Connecticut. Either
party shall have the right to require that any dispute arising under the
Agreement be submitted to binding arbitration at the American Arbitration
Association ("AAA") located in New York, New York, in accordance with the AAA's
applicable rules and procedures for dispute resolution.
XV. SALES PROMOTION
The Subadviser may not use any sales literature, advertising material (including
material disseminated through radio, television, or other electronic media) or
other communications concerning Series shares or that include the name of the
Series or the Adviser without obtaining the Adviser's prior written approval.
Notwithstanding the foregoing, nothing herein shall prohibit the Subadviser or
any of its principals from using the name of the Fund, the Series or the Adviser
in a biographical description of the Subadviser or its principals or prohibit
the use of the performance of the Fund or the Series (to the extent permissible
under the U.S. federal and state securities laws) in sales literature,
advertising material or other communications of the Subadviser that describes
the composite performance record of the Subadviser or its principals.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
in duplicate by their respective officers on the 19th day of January, 2000.
AELTUS INVESTMENT MANAGEMENT, INC.
ATTEST:
By /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ By /s/ ▇▇▇ ▇. Doberman
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Name ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ Name ▇▇▇ ▇. Doberman
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Title Assistant Secretary Title Vice President &
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General Counsel
▇▇▇▇▇▇ ASSET MANAGEMENT, LLC
ATTEST:
By /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇ By /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name ▇▇▇▇▇▇▇ ▇. ▇▇▇▇ Name ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Title C.O.O. Title CEO
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AETNA SERIES FUND, INC.
on behalf of Aetna Technology Fund
ATTEST:
By /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ By /s/ J. ▇▇▇▇▇ ▇▇▇
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Name ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Name J. ▇▇▇▇▇ ▇▇▇
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Title Assistant Secretary Title President
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