EXHIBIT 99.(d)(1)(C)
MANAGEMENT AGREEMENT
AGREEMENT made this 25th day of February 2004 between ING Investors Trust,
a Massachusetts business trust (the "Trust"), and ING Investments, LLC, an
Arizona limited liability company (the "Manager").
WHEREAS, the Trust is an open-end management investment company registered
under the Investment Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, the Trust is authorized to issue shares of beneficial interest in
separate series with each such series representing interests in a separate
portfolio of securities and other assets; and
WHEREAS, the Trust may offer shares of additional series in the future, and
currently intends to offer shares of additional series in the future; and
WHEREAS, the Trust desires to avail itself of the services of the Manager
for the provision of advisory and management services for the Trust; and
WHEREAS, the Manager is willing to render such services to the Trust.
NOW, THEREFORE, in consideration of the premises, the promises and mutual
covenants herein contained, it is agreed between the parties as follows:
1. APPOINTMENT. The Trust hereby appoints the Manager, subject to the
direction of the Board of Trustees, for the period and on the terms set forth in
this Agreement, to provide advisory, management, and other services, as
described herein, with respect to each series of the Trust set forth in SCHEDULE
A hereto (individually and collectively referred to herein as "Series"), as such
schedule may be amended from time to time. The Manager accepts such appointment
and agrees to render the services herein set forth for the compensation herein
provided.
In the event the Trust establishes and designates additional series with
respect to which it desires to retain the Manager to render advisory services
hereunder, it shall notify the Manager in writing. If the Manager is willing to
render such services, it shall notify the Trust in writing, whereupon such
additional series shall become a Series hereunder.
2. SERVICES OF THE MANAGER. The Manager represents and warrants that it is
registered as an investment adviser under the Investment Advisers Act of 1940
and will maintain such registration for so long as required by applicable law.
Subject to the general supervision of the Board of Trustees of the Trust, the
Manager shall provide the following advisory, management and other services with
respect to the Series:
(a) Provide general, overall advice and guidance with respect to the Series
and provide advice and guidance to the Trust's Trustees, and oversee the
management of the investments of the Series and the composition of each Series'
portfolio of securities and investments, including cash, and the purchase,
retention and disposition thereof, in accordance with each Series' investment
objective or objectives and policies as stated in the Trust's current
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registration statement, which management may be provided by others selected by
the Manager and approved by the Board of Trustees as provided below or directly
by the Manager as provided in Section 3 of this Agreement;
(b) In the event that the Manager wishes to select others to render
investment management services, the Manager shall analyze, select and recommend
for consideration and approval by the Trust's Board of Trustees investment
advisory firms (however organized) to provide investment advice to one or more
of the Series, and, at the expense of the Manager, engage (which engagement may
also be by the Trust) such investment advisory firms to render investment advice
and manage the investments of such Series and the composition of each such
Series' portfolio of securities and investments, including cash, and the
purchase, retention and disposition thereof, in accordance with the Series'
investment objective or objectives and policies as stated in the Trust's current
registration statement (any such firms approved by the Board of Trustees and
engaged by the Trust or the Manager are referred to herein as "Sub-Advisers");
(c) Periodically monitor and evaluate the performance of the Sub-Advisers
with respect to the investment objectives and policies of the Series;
(d) Monitor the Sub-Advisers for compliance with the investment objective
or objectives, policies and restrictions of each Series, the 1940 Act,
Subchapter M of the Internal Revenue Code, Section 817(h) of the Internal
Revenue Code to the extent applicable, and if applicable, regulations under such
provisions, and other applicable law;
(e) If appropriate, analyze and recommend for consideration by the Trust's
Board of Trustees termination of a contract with a Sub-Adviser under which the
Sub-Adviser provides investment advisory services to one or more of the Series;
(f) Supervise Sub-Advisers with respect to the services that such
Sub-Advisers provide under respective sub-advisory agreements ("Sub-Advisory
Agreements");
(g) Render to the Board of Trustees of the Trust such periodic and special
reports as the Board may reasonably request; and
(h) Make available its officers and employees to the Board of Trustees and
officers of the Trust for consultation and discussions regarding the
administration and management of the Series and services provided to the Trust
under this Agreement.
3. INVESTMENT MANAGEMENT AUTHORITY. In the event the Manager wishes to
render investment management services directly to a Series, then with respect to
any such Series, the Manager, subject to the supervision of the Trust's Board of
Trustees, will provide a continuous investment program for the Series' portfolio
and determine the composition of the assets of such Series' portfolio, including
determination of the purchase, retention, or sale of the securities, cash, and
other investments contained in the portfolio. The Manager will provide
investment research and conduct a continuous program of evaluation, investment,
sales, and reinvestment of the Series' assets by determining the securities and
other investments that shall be purchased, entered into, sold, closed, or
exchanged for the Series, when these transactions should be executed, and what
portion of the assets of the Series should be held in the various securities and
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other investments in which it may invest, and the Manager is hereby authorized
to execute and perform such services on behalf of the Series. To the extent
permitted by the investment policies of the Series, the Manager shall make
decisions for the Series as to foreign currency matters and make determinations
as to, and execute and perform, foreign currency exchange contracts on behalf of
such Series. The Manager will provide the services under this Agreement in
accordance with the Series' investment objective or objectives, policies, and
restrictions as stated in the Trust's Registration Statement filed with the
Securities and Exchange Commission (the "SEC"), as amended. Furthermore:
(a) The Manager will manage the Series so that each will qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code and
Section 817(h) of the Internal Revenue Code to the extent applicable, and if
applicable, regulations under such provisions. In managing the Series in
accordance with these requirements, the Manager shall be entitled to receive and
act upon advice of counsel to the Series or counsel to the Manager;
(b) The Manager will conform with the 1940 Act and all rules and
regulations thereunder, all other applicable federal and state laws and
regulations, with any applicable procedures adopted by the Trust's Board of
Trustees, and the provisions of the Registration Statement of the Trust under
the Securities Act of 1933 and the 1940 Act, as supplemented or amended;
(c) On occasions when the Manager deems the purchase or sale of a security
to be in the best interest of the Series as well as any other investment
advisory clients, the Manager may, to the extent permitted by applicable laws
and regulations and any applicable procedures adopted by the Trust's Board of
Trustees, but shall not be obligated to, aggregate the securities to be so sold
or purchased with those of its other clients where such aggregation is not
inconsistent with the policies set forth in the Registration Statement. In such
event, allocation of the securities so purchased or sold, as well as the
expenses incurred in the transaction, will be made by the Manager in a manner
that is fair and equitable in the judgment of the Manager in the exercise of its
fiduciary obligations to the Trust on behalf of the Series and to such other
clients;
(d) In connection with the purchase and sale of securities of a Series, the
Manager will arrange for the transmission to the custodian for the Series on a
daily basis, of such confirmation, trade tickets, and other documents and
information, including, but not limited to, Cusip, Cedel, or other numbers that
identify securities to be purchased or sold on behalf of a Series, as may be
reasonably necessary to enable the custodian to perform its administrative and
recordkeeping responsibilities with respect to a Series. With respect to
portfolio securities to be purchased or sold through the Depository Trust
Company, the Manager will arrange for the prompt transmission of the
confirmation of such trades to the Series custodian;
(e) The Manager will assist the custodian or portfolio accounting agent for
the Series in determining, consistent with the procedures and policies stated in
the Registration Statement for the Trust, the value of any portfolio securities
or other assets of the Series for which the custodian or portfolio accounting
agent seeks assistance or review from the Manager;
(f) The Manager will make available to the Trust, promptly upon request,
any of the Series' investment records and ledgers as are necessary to assist the
Series to comply with
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requirements of the 1940 Act, as well as other applicable laws. The Manager will
furnish to regulatory authorities having the requisite authority any information
or reports in connection with its services which may be requested in order to
ascertain whether the operations of the Series are being conducted in a manner
consistent with applicable laws and regulations;
(g) The Manager will regularly report to the Trust's Board of Trustees on
the investment program for the Series and the issuers and securities represented
in such Series' portfolio, and will furnish the Trust's Board of Trustees with
respect to the Series such periodic and special reports as the Trustees may
reasonably request; and
(h) In connection with its responsibilities under this Section 3, the
Manager is responsible for decisions to buy and sell securities and other
investments for the Series' portfolio, broker-dealer selection and negotiation
of brokerage commission rates. The Manager's primary consideration in effecting
a security transaction will be to obtain the best execution for the Series,
taking into account the factors specified in the Prospectus or Statement of
Additional Information for the Trust, which include price (including the
applicable brokerage commission or dollar spread), the size of the order, the
nature of the market for the security, the timing of the transaction, the
reputation, experience and financial stability of the broker-dealer involved,
the quality of the service, the difficulty of execution, execution capabilities
and operational facilities of the firms involved, and the firm's risk in
positioning a block of securities. Accordingly, the price to the Series in any
transaction may be less favorable than that available from another broker-dealer
if the difference is reasonably justified, in the judgment of the Manager in the
exercise of its fiduciary obligations to the Trust on behalf of the Series, by
other aspects of the portfolio execution services offered. Subject to such
policies as the Board of Trustees may determine and consistent with Section
28(e) of the Securities Exchange Act of 1934, as amended, the Manager shall not
be deemed to have acted unlawfully or to have breached any duty created by this
Agreement or otherwise solely by reason of its having caused the Series to pay a
broker-dealer for effecting a portfolio investment transaction in excess of the
amount of commission another broker-dealer would have charged for effecting that
transaction, if the Manager determines in good faith that such amount of
commission was reasonable in relation to the value of the brokerage and research
services provided by such broker-dealer, viewed in terms of either that
particular transaction or the Manager's overall responsibilities with respect to
the Series and to its other clients as to which it exercises investment
discretion. To the extent consistent with these standards and in accordance with
Section 11(a) of the Securities Exchange Act of 1934 and Rule 11a2-2(T)
thereunder, the Manager is further authorized to allocate the orders placed by
it on behalf of the Series to the Manager if it is registered as a broker-dealer
with the SEC, to an affiliated broker-dealer, or to such brokers and dealers who
also provide research or statistical material or other services to the Series,
the Manager or an affiliate of the Manager. Such allocation shall be in such
amounts and proportions as the Manager shall determine consistent with the above
standards, and the Manager will report on said allocation regularly to the Board
of Trustees of the Trust indicating the broker-dealers to which such allocations
have been made and the basis therefor.
4. CONFORMITY WITH APPLICABLE LAW. The Manager, in the performance of its
duties and obligations under this Agreement, shall act in conformity with the
Registration Statement of the Trust and with the instructions and directions of
the Board of Trustees of the Trust and will
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conform to, and comply with, the requirements of the 1940 Act and all other
applicable federal and state laws and regulations.
5. EXCLUSIVITY. The services of the Manager to the Series under this
Agreement are not to be deemed exclusive, and the Manager, or any affiliate
thereof, shall be free to render similar services to other investment companies
and other clients (whether or not their investment objectives and policies are
similar to those of any of the Series) and to engage in other activities, so
long as its services hereunder are not impaired thereby.
6. DOCUMENTS. The Trust has delivered properly certified or authenticated
copies of each of the following documents to the Manager and will deliver to it
all future amendments and supplements thereto, if any:
(a) certified resolution of the Board of Trustees of the Trust authorizing
the appointment of the Manager and approving the form of this Agreement;
(b) the Registration Statement as filed with the SEC and any amendments
thereto; and
(c) exhibits, powers of attorney, certificates and any and all other
documents relating to or filed in connection with the Registration Statement
described above.
7. RECORDS. The Manager agrees to assist the Trust so that the Trust can
maintain and preserve for the periods prescribed under the 1940 Act any such
records as are required to be maintained by the Trust at the Trust's expense
with respect to a Series by the 1940 Act. The Manager further agrees that all
records which it maintains for each Series are the property of the Trust and it
will promptly surrender any of such records upon request.
8. EXPENSES. During the term of this Agreement, the Manager will pay
all expenses incurred by it in connection with its activities under this
Agreement, except such expenses as are assumed by the Trust under this Agreement
and such expenses as are assumed by a Sub-Adviser under its Sub-Advisory
Agreement. The Manager further agrees to pay all fees payable to the
Sub-Advisers, and executive salaries and expenses of the Trustees of the Trust
who are employees of the Manager or its affiliates. The Trust shall be
responsible for all of the other expenses of its operations, including, without
limitation, the management fee payable hereunder; brokerage commissions;
interest; legal fees and expenses of attorneys; fees of auditors, transfer
agents and dividend disbursing agents, custodians and shareholder servicing
agents; the expense of obtaining quotations for calculating each Series' net
asset value; taxes, if any, and the preparation of the Series' tax returns; cost
of stock certificates and any other expenses (including clerical expenses) of
issue, sale, repurchase or redemption of shares; expenses of registering and
qualifying shares of the Series under federal and state laws and regulations
(including the salary of employees of the Manager engaged in the registering and
qualifying of shares of the Series under federal and state laws and regulations
or a pro-rata portion of the salary of employees to the extent so engaged);
salaries of personnel involved in placing orders for the execution of the
Series' portfolio transactions; expenses of printing and distributing reports,
notices and proxy materials to existing shareholders; expenses of printing and
filing reports and other documents filed with governmental agencies; expenses in
connection with shareholder and trustee meetings; expenses of printing and
distributing prospectuses and statements of additional information to
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existing shareholders; fees and expenses of Trustees of the Trust who are not
employees of the Manager or any Sub-Adviser, or their affiliates; trade
association dues; insurance premiums; and extraordinary expenses such as
litigation expenses. To the extent the Manager incurs any costs or performs any
services which are an obligation of the Trust, as set forth herein, the Trust
shall promptly reimburse the Manager for such costs and expenses. To the extent
the services for which the Trust is obligated to pay are performed by the
Manager, the Manager shall be entitled to recover from the Trust only to the
extent of its costs for such services.
9. COMPENSATION. For the services provided by the Manager to a Series
pursuant to this Agreement, the Trust will pay to the Manager an annual fee
equal to the amount specified for such Series in SCHEDULE A hereto, payable
monthly in arrears. Payment of the above fees shall be in addition to any amount
paid to the Manager for the salary of its employees for performing services
which are an obligation of the Trust as provided in Section 8. The fee will be
appropriately pro-rated to reflect any portion of a calendar month that this
Agreement is not in effect between the Manager and the Trust.
10. LIABILITY OF THE MANAGER. The Manager may rely on information
reasonably believed by it to be accurate and reliable. Except as may otherwise
be required by the 1940 Act or the rules thereunder, neither the Manager nor its
stockholders, officers, trustees, employees, or agents shall be subject to, and
the Trust will indemnify such persons from and against, any liability for, or
any damages, expenses, or losses incurred in connection with, any act or
omission connected with or arising out of any services rendered under this
Agreement, except by reason of willful misfeasance, bad faith, or negligence in
the performance of the Manager's duties, or by reason of reckless disregard of
the Manager's obligations and duties under this Agreement. Except as may
otherwise be required by the 1940 Act or the rules thereunder, neither the
Manager nor its stockholders, officers, trustees, employees, or agents shall be
subject to, and the Trust will indemnify such persons from and against, any
liability for, or any damages, expenses, or losses incurred in connection with,
any act or omission by a Sub-Adviser or any of the Sub-Adviser's stockholders or
partners, officers, trustees, employees, or agents connected with or arising out
of any services rendered under a Sub-Advisory Agreement, except by reason of
willful misfeasance, bad faith, or negligence in the performance of the
Manager's duties under this Agreement, or by reason of reckless disregard of the
Manager's obligations and duties under this Agreement. No trustee, officer,
employee or agent of the Trust shall be subject to any personal liability
whatsoever, in his or her official capacity, to any person, including the
Sub-Adviser, other than to the Trust or its shareholders, in connection with
Trust property or the affairs of the Trust, save only that arising from his or
her bad faith, willful misfeasance, negligence or reckless disregard of his or
her duty to such person; and all such persons shall look solely to the Trust
property for satisfaction of claims of any nature against a trustee, officer,
employee or agent of the Trust arising in connection with the affairs of the
Trust. Moreover, the debts, liabilities, obligations and expenses incurred,
contracted for or otherwise existing with respect to a Series shall be
enforceable against the assets and property of that Series only, and not against
the assets or property of any other series of the Trust
11. CONTINUATION AND TERMINATION. This Agreement shall become effective on
the date first written above, subject to the condition that the Trust's Board of
Trustees, including a majority of those Trustees who are not interested persons
(as such term is defined in the 1940
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Act) of the Manager, and the shareholders of each Series, shall have approved
this Agreement. Unless terminated as provided herein, the Agreement shall
continue in full force and effect with respect to each Series until SEPTEMBER 1,
2005, and shall continue from year to year thereafter with respect to each
Series so long as such continuance is specifically approved at least annually
(i) by the vote of a majority of the Board of Trustees of the Trust, including a
majority of those Trustees who are not interested persons (as such term is
defined in the ▇▇▇▇ ▇▇▇) of the Trust, or (ii) by vote of a majority of the
outstanding voting securities of such Series (as defined in the 1940 Act), cast
in person at a meeting called for the purpose of voting on such approval and
provided continuance is also approved by the vote of a majority of the Board of
Trustees of the Trust who are not parties to this Agreement or "interested
persons" (as defined in the ▇▇▇▇ ▇▇▇) of the Trust or the Manager, cast in
person at a meeting called for the purpose of voting on such approval. This
Agreement may not be amended in any material respect without a majority vote of
the outstanding voting shares (as defined in the 1940 Act).
However, any approval of this Agreement by the holders of a majority of the
outstanding voting securities (as defined in the ▇▇▇▇ ▇▇▇) of a Series shall be
effective to continue this Agreement with respect to such Series notwithstanding
(i) that this Agreement has not been approved by the holders of a majority of
the outstanding voting securities of any other Series, or (ii) that this
Agreement has not been approved by the vote of a majority of the outstanding
voting securities of the Trust, unless such approval shall be required by any
other applicable law or otherwise.
This Agreement may be terminated as to a particular Series at any time on
sixty (60) days' written notice, without the payment of any penalty, by the
Trust (by vote of a majority of the Board of Trustees of the Trust or by a vote
of a majority of the outstanding voting securities of such Series) or by the
Manager. This Agreement will automatically and immediately terminate in the
event of its "assignment" (as described in the 1940 Act and the rules and
interpretations thereunder).
12. USE OF NAME. It is understood that the names "ING" or "ING Investments,
LLC" or any derivative thereof or logo associated with those names are the
valuable property of the Manager and its affiliates, and that the Trust or the
Series have the right to use such names (or derivative or logo) only so long as
this Agreement shall continue with respect to such Trust or Series. Upon
termination of this Agreement, the Trust (or Series) shall forthwith cease to
use such names (or derivative or logo) and, in the case of the Trust, shall
promptly amend its Amended and Restated Agreement and Declaration of Trust to
change its name (if such names are included therein).
13. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original.
14. APPLICABLE LAW.
(a) This Agreement shall be governed by the laws of the Commonwealth of
Massachusetts, provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act, the Investment Advisers Act of 1940, or any
rules or order of the SEC thereunder.
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(b) If any provision of this Agreement shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of this Agreement
shall not be affected thereby and, to this extent, the provisions of this
Agreement shall be deemed to be severable.
(c) The captions of this Agreement are included for convenience only and in
no way define or limit any of the provisions hereof or otherwise affect their
construction or effect.
15. AMENDED AND RESTATED AGREEMENT AND DECLARATION OF TRUST. A copy of the
Amended and Restated Agreement and Declaration of Trust for the Trust is on file
with the Secretary of the Commonwealth of Massachusetts. The Amended and
Restated Agreement and Declaration of Trust has been executed on behalf of the
Trust by Trustees of the Trust in their capacity as Trustees of the Trust and
not individually. The obligations of this Agreement shall be binding upon the
assets and property of the Trust and shall not be binding upon any Trustee,
officer or shareholder of the Trust individually. In addition, the Manager
agrees that the obligations assumed by the Trust on behalf of the Series
pursuant to this Agreement shall be limited in all cases to the applicable
Series and its assets, and the Manager shall not seek satisfaction of any such
obligation from any other Series of the Trust. The Manager understands that the
assets and liabilities, and the rights and obligations associated therewith of
each Series under the Amended and Restated Agreement and Declaration of Trust
are separate and distinct from those of any and all other Series.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their officers designated below as of the day and year first above
written.
ING INVESTORS TRUST
By: /s/ ▇▇▇▇▇▇ ▇. Naka
▇▇▇▇▇▇ ▇. Naka
Senior Vice President
ING INVESTMENTS, LLC
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Executive Vice President
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SCHEDULE A
WITH RESPECT TO THE
MANAGEMENT AGREEMENT
BETWEEN
ING INVESTORS TRUST
AND
ING INVESTMENTS, LLC
ANNUAL INVESTMENT
SERIES MANAGEMENT FEE
------ ---------------------------------------------
(as a percentage of average daily net assets)
ING Lifestyle Aggressive Growth Portfolio 0.14%
ING Lifestyle Growth Portfolio 0.14%
ING Lifestyle Moderate Growth Portfolio 0.14%
ING Lifestyle Moderate Portfolio 0.14%
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