Exhibit (g)(2)
DELEGATION AGREEMENT
AGREEMENT, dated as of May 1, 2002 by and between INVESTORS BANK & TRUST
COMPANY, a Massachusetts trust company (the "Delegate"), and CDC NVEST FUNDS
TRUST II, a Massachusetts business trust (the "Fund").
WHEREAS, pursuant to the provisions of Rule 17f-5 under the Investment
Company Act of 1940, as amended (the "1940 Act"), and subject to the terms and
conditions set forth herein, the Board of Trustees of the Fund desires to
delegate to the Delegate certain responsibilities concerning Foreign Assets (as
defined below), and the Delegate hereby agrees to retain such delegation, as
described herein; and
WHEREAS, pursuant to the provisions of Rule 17f-7 under the 1940 Act, and
subject to the terms and conditions set forth herein, the Board of Trustees of
the Fund desires to retain the Delegate to provide certain services concerning
Foreign Assets, and the Delegate hereby agrees to provide such services, as
described herein;
NOW THEREFORE, in consideration of the premises and of the mutual
agreements contained herein, the parties hereto agree as follows:
1. DEFINITIONS
Capitalized terms in this Agreement have the following meanings:
a. AUTHORIZED REPRESENTATIVE
Authorized Representative means any one of the persons who are
empowered, on behalf of the parties to this Agreement, to receive
notices from the other party and to send notices to the other party.
b. BOARD
Board means the Board of Trustees of Fund.
c. COUNTRY RISK
Country Risk means all factors reasonably related to the systemic
risk of holding Foreign Assets in a particular country including, but
not limited to, such country's financial infrastructure (including any
Securities Depositories operating in such country); prevailing custody
and settlement practices; and laws applicable to the safekeeping and
recovery of Foreign Assets held in custody.
d. ELIGIBLE FOREIGN CUSTODIAN
Eligible Foreign Custodian has the meaning set forth in Rule
17f-5(a)(1), but also includes, for purposes of this Agreement,
foreign branches of U.S. Banks (as the term "U.S. Bank" is defined in
Rule 17f-5(a)(7)).
1
e. FOREIGN ASSETS
Foreign Assets has the meaning set forth in Rule 17f-5(a)(2)
f. FOREIGN CUSTODY MANAGER
Foreign Custody Manager has the meaning set forth in
Rule 17f-5(a)(3).
g. SECURITIES DEPOSITORY
Securities Depository has the meaning set forth in Rule
17f-4(a).
h. MONITOR
Monitor means to re-assess or re-evaluate, at reasonable
intervals or when otherwise reasonably necessary, a decision,
determination or analysis previously made, and shall be construed as
such term may be construed pursuant to relevant positions publicly
articulated by the Securities and Exchange Commission or its staff.
2. REPRESENTATIONS
a. DELEGATE'S REPRESENTATIONS
Delegate represents that it is a trust company chartered under
the laws of the Commonwealth of Massachusetts and is a U.S. Bank as
defined in Rule 17f-5(a)(7). Delegate further represents that the
persons executing this Agreement and any amendment or appendix hereto
on its behalf are duly authorized to so bind the Delegate with respect
to the subject matter of this Agreement.
b. FUND'S REPRESENTATIONS
Fund represents that the Board has determined that it is
reasonable to rely on Delegate to perform the responsibilities
described in this Agreement. Fund further represents that the persons
executing this Agreement and any amendment or appendix hereto on its
behalf are duly authorized to so bind the Fund with respect to the
subject matter of this Agreement.
3. JURISDICTIONS AND DEPOSITORIES COVERED
a. INITIAL JURISDICTIONS AND DEPOSITORIES
The authority delegated by this Agreement in connection with Rule
17f-5 applies only with respect to Foreign Assets held in the
jurisdictions listed in APPENDIX A1. Delegate's responsibilities under
this Agreement in connection with Rule 17f-7 apply only with respect
to the Securities Depositories listed in APPENDIX A2. Upon the
creation of a new Securities Depository in any of the jurisdictions
listed in APPENDIX A1 at the time of such creation, such Securities
Depository will automatically be deemed to be listed in APPENDIX A2
and will be covered by the terms of this Agreement.
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b. ADDED JURISDICTIONS AND DEPOSITORIES
Jurisdictions and related Securities Depositories may be added to
APPENDIX A1 and APPENDIX A2, respectively, by written agreement in the
form of APPENDIX B. Delegate's responsibility and authority with
respect to any jurisdiction or Securities Depository, respectively, so
added will commence at the later of (i) the time that Delegate's
Authorized Representative and Board's Authorized Representative have
both executed a copy of APPENDIX B listing such jurisdiction and/or
Securities Depository, or (ii) the time that Delegate's Authorized
Representative receives a copy of such fully executed APPENDIX B,
provided that, with respect to the addition of any Securities
Depository to Appendix A2 pursuant to this Section 3(b), such addition
shall be effective only if Delegate has delivered to the Fund or its
investment adviser the information specified in Section 6(c) of this
Agreement relating to the Securities Depository's qualification as an
Eligible Securities Depository and a risk analysis for such Securities
Depository in accordance with Rule 17f-7(a)(1)(i)(A).
c. WITHDRAWN JURISDICTIONS
Board may withdraw its (i) delegation to Delegate with respect to
any jurisdiction or (ii) retention of Delegate with respect to any
Securities Depository, upon written notice to Delegate. Delegate may
withdraw its (i) acceptance of delegation with respect to any
jurisdiction or (ii) retention with respect to any Securities
Depository, upon written notice to Board. Sixty days (or such longer
period as to which the parties agree in such event) after receipt of
any such notice by the Authorized Representative of the party other
than the party giving notice, Delegate shall have no further
responsibility or authority under this Agreement with respect to the
jurisdiction(s) or Securities Depository as to which delegation is
withdrawn.
4. DELEGATION OF AUTHORITY TO ACT AS FOREIGN CUSTODY MANAGER
a. SELECTION OF ELIGIBLE FOREIGN CUSTODIANS
Subject to the provisions of this Agreement and the requirements
of Rule 17f-5 (and any other applicable law), Delegate is authorized
and directed to place and maintain Foreign Assets (but no other
assets) in the care of any Eligible Foreign Custodian(s) selected by
Delegate in each jurisdiction to which this Agreement applies, except
that Delegate does not accept such authorization and direction with
regard to Securities Depositories.
b. CONTRACTS WITH ELIGIBLE FOREIGN CUSTODIANS
Subject to the provisions of this Agreement and the requirements
of Rule 17f-5 (and any other applicable law), Delegate is authorized
to, and shall, enter into, on behalf of Fund, such written contracts
governing Fund's foreign custody arrangements with such Eligible
Foreign Custodians as Delegate deems appropriate. Each such contract
will satisfy the requirements of Rule 17f-5(c )(2). All arrangements
between Delegate and the Eligible Foreign Custodians will be governed
by a written contract that Delegate has determined will provide
reasonable care for Fund's Foreign Assets.
5. MONITORING OF ELIGIBLE FOREIGN CUSTODIANS AND CONTRACTS
3
In each case in which Delegate has exercised the authority
delegated under this Agreement to place Foreign Assets with an
Eligible Foreign Custodian, Delegate is authorized to, and shall, on
behalf of Fund, establish a system to Monitor the appropriateness of
maintaining Foreign Assets with such Eligible Foreign Custodian under
Rule 17f-5(c )(1). In each case in which Delegate has exercised the
authority delegated under this Agreement to enter into a written
contract governing Fund's foreign custody arrangements, Delegate is
authorized to, and shall, on behalf of Fund, establish a system to
Monitor the appropriateness and performance of such contract. In the
event Delegate determines that the custody arrangement with an
Eligible Foreign Custodian are no longer appropriate, Delegate shall
notify the Fund and the investment adviser of Fund.
6. SECURITIES DEPOSITORIES
a. In accordance with the requirements of Rule 17f-7, Delegate
shall, concurrent with the execution of this Agreement and annually
thereafter, provide the Fund or its investment adviser with an
analysis of the custody risks associated with maintaining assets with
each Securities Depository listed on APPENDIX A2 hereto as amended
from time to time.
b. In accordance with the requirements of Rule 17f-7, Delegate
shall Monitor the custody risks associated with maintaining assets
with each Securities Depository listed on APPENDIX A2 hereto on a
continuing basis, and shall promptly notify the Fund or its investment
adviser of any material change in such risks.
c. Delegate shall, concurrent with the execution of this
Agreement (or an amendment to Appendix A2, as the case may be),
provide each Fund or its investment adviser with information which
will enable such Fund or its investment adviser to determine whether
each Securities Depository listed in Appendix A2 is an Eligible
Securities Depository as defined in Rule 17f-7(b)(1). Delegate shall
notify each Fund or its investment adviser of any material change in
any information provided by Delegate regarding whether a Securities
Depository meets the definition of Eligible Securities Depository
promptly after becoming aware of any such change.
7. GUIDELINES AND PROCEDURES FOR THE EXERCISE OF DELEGATED AUTHORITY
a. BOARD'S CONCLUSIVE DETERMINATION REGARDING COUNTRY RISK
In exercising its delegated authority under this Agreement,
Delegate may assume, for all purposes, that Board (or Fund's
investment adviser, pursuant to authority delegated by Board) has
considered, and pursuant to its fiduciary duties to Fund and Fund's
shareholders, determined to accept, such Country Risk as is incurred
by placing and maintaining Foreign Assets in the jurisdictions to
which this Agreement applies. In exercising its delegated authority
under this Agreement, Delegate may also assume that Board (or Fund's
investment adviser, pursuant to authority delegated by Board) has
Monitored, and will continue to Monitor, such Country Risk to the
extent Board (or such investment adviser) deems necessary or
appropriate.
Except as specifically described herein, nothing in this
Agreement shall require Delegate to make any selection or to engage in
any Monitoring on behalf of Fund that would entail consideration of
Country Risk.
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b. SELECTION OF ELIGIBLE FOREIGN CUSTODIANS
In exercising the authority delegated under this Agreement to
place Foreign Assets with an Eligible Foreign Custodian, Delegate
shall determine that Foreign Assets will be subject to reasonable
care, based on the standards applicable to custodians in the market in
which the Foreign Assets will be held, after considering all factors
relevant to the safekeeping of such Foreign Assets, including, without
limitation:
i. The Eligible Foreign Custodian's practices, procedures, and
internal controls, including, but not limited to, the
physical protections available for certificated securities
(if applicable), the method of keeping custodial records,
and the security and data protection practices;
ii. Whether the Eligible Foreign Custodian has the financial
strength to provide reasonable care for Foreign Assets and
to fulfill its indemnification obligations;
iii. The Eligible Foreign Custodian's general reputation and
standing;
iv. Whether Fund will have jurisdiction over and be able to
enforce judgments against the Eligible Foreign Custodian,
such as by virtue of the existence of any offices of the
Eligible Foreign Custodian in the United States or the
Eligible Foreign Custodian's consent to service of process
in the United States;
v. Whether the contract with the Eligible Foreign Custodian
contains indemnification rights that match the
indemnification rights of the Fund hereunder; and
vi. In the case of an Eligible Foreign Custodian that is a
banking institution or trust company, any additional factors
and criteria set forth in APPENDIX C to this Agreement.
c. EVALUATION OF WRITTEN CONTRACTS
In exercising the authority delegated under this Agreement to
enter into written contracts governing Fund's foreign custody
arrangements with an Eligible Foreign Custodian, Delegate shall
determine that such contracts provide reasonable care for Foreign
Assets based on the standards described in Section 7(b) above. In
making this determination, Delegate shall ensure that the terms of
such contracts comply with the provisions of Rule 17f-5(c)(2). The
Delegate shall use its best efforts to ensure that each contract with
an Eligible Foreign Custodian shall provide indemnification rights
that match the indemnification rights of the Fund hereunder, including
indemnification for any Claim (as defined below) arising from the
negligence, willful misfeasance or bad faith of the Eligible Foreign
Custodian. The Delegate shall provide Fund a list of each of the
Fund's foreign custody arrangements with an Eligible Foreign Custodian
that does not provide for indemnification for Claims arising from the
negligence of the Eligible Foreign Custodian. The Delegate agrees to
promptly notify Fund of any change in any of the Fund's foreign
custody arrangement such that the list so provided (or any amended
list) is no longer accurate or complete by delivering to Fund an
amended list and shall, upon request, provide a summary of the
5
indemnification clauses in the contracts governing the Fund's foreign
custodial arrangements.
d. MONITORING OF ELIGIBLE FOREIGN CUSTODIANS
In exercising the authority delegated under this Agreement,
Delegate will establish a system to Monitor the appropriateness of
maintaining Foreign Assets with an Eligible Foreign Custodian and the
appropriateness and performance of a written contract governing Fund's
foreign custody arrangements. In doing so, Delegate shall consider any
relevant factors and criteria, including those set forth in APPENDIX D
to this Agreement. If, as a result of its Monitoring of Eligible
Foreign Custodian relationships hereunder or otherwise, the Delegate
determines in its reasonable discretion that it is in the best
interest of the safekeeping of the Foreign Assets to move such Foreign
Assets to a different Eligible Foreign Custodian, the Fund shall bear
any expense related to such relocation of Foreign Assets.
8. STANDARD OF CARE
a. In exercising the authority delegated under this Agreement
with regard to its duties as a Foreign Custody Manager, Delegate
agrees to exercise reasonable care, prudence and diligence such as a
person having responsibility for the safekeeping of Foreign Assets of
an investment company registered under the 1940 Act would exercise.
b. In carrying out its responsibilities under this Agreement with
regard to the placement of the Fund's assets with a Securities
Depository, Delegate agrees to exercise reasonable care, prudence and
diligence.
9. REPORTING REQUIREMENTS
Delegate agrees to provide written reports notifying Board of the
placement and withdrawal of Foreign Assets with a particular Eligible
Foreign Custodian and any revisions to APPENDIX A2 quarterly for
consideration at the next regularly scheduled meeting of the Board or
earlier if (i) deemed necessary or advisable by the Delegate in its
reasonable discretion or (ii) requested by the Board. Delegate agrees
to provide written reports notifying the Board of any other material
change in the foreign custody arrangement of the Fund promptly after
the occurrence of such material change.
10. PROVISION OF INFORMATION REGARDING COUNTRY RISK
With respect to the jurisdictions listed in APPENDIX A1, or added
thereto pursuant to Article 3, Delegate agrees to provide the Board
and the Fund's investment adviser with access to Eyes to the WorldTM,
a service available through the Delegate's Web Site at xxx.xxxxx.xxx,
containing information relating to Country Risk, if available, as is
specified in APPENDIX E to this Agreement. Such information relating
to Country Risk shall be updated from time to time as the Delegate
deems necessary. In addition, the Delegate shall offer to the Fund
such additional information relating to Country Risk and upon the same
terms as the Delegate makes available to other registered investment
companies for which it serves as Foreign Custody Manager.
11. LIMITATION OF LIABILITY.
6
a. Notwithstanding anything in this Agreement to the contrary, in
no event shall the Delegate or any of its officers, directors,
employees or agents (collectively, the "Indemnified Parties") be
liable to the Fund or any third party, and the Fund shall indemnify
and hold the Delegate and the Indemnified Parties harmless from and
against any and all loss, damage, liability, actions, suits, claims,
costs and expenses, including legal fees, (a "Claim") arising as a
result of any act or omission of the Delegate or any Indemnified Party
under this Agreement, except for any Claim arising from the
negligence, willful misfeasance or bad faith of the Delegate or any
Indemnified Party or breach of the standard of care set forth in
Section 8. Without limiting the foregoing, (i) except as may arise
from the Delegate's or any Indemnified Party's own negligence, willful
misfeasance, or bad faith, neither the Delegate nor the Indemnified
Parties shall be liable for, and the Delegate and the Indemnified
Parties shall be indemnified against, any Claim arising as a result of
any act or omission by the Delegate or any Indemnified Party in
reasonable good faith reliance upon the terms of this Agreement, any
resolution of the Board, telegram, telecopy, notice, request,
certificate or other instrument reasonably believed by the Delegate to
be genuine; and (ii) except as may arise from the Delegate's or any
Indemnified Party's own gross negligence, willful misfeasance, or bad
faith, neither the Delegate nor the Indemnified Parties shall be
liable for, and the Delegate and the Indemnified Parties shall be
indemnified against, any claim arising as a result of any information
which the Delegate provides or does not provide under Section 10
hereof.
b. Notwithstanding anything to the contrary in this Agreement, in
no event shall a party to this Agreement be liable to another party or
any third party for (i) lost profits or lost revenues or any special,
consequential, punitive or incidental damages of any kind whatsoever
in connection with this Agreement or any activities hereunder or (ii)
any acts of God, earthquakes, fires, floods, storms or other
disturbances of nature, epidemics, strikes, riots, nationalization,
expropriation, currency restrictions, acts of war, civil war or
terrorism, insurrection, nuclear fusion, fission or radiation, the
interruption, loss or malfunction of utilities, or transportation, the
unavailability of energy sources and other similar happenings or
events. This paragraph shall not relieve the Bank from its
responsibility to provide and maintain appropriate backup and disaster
recovery facilities and shall not limit the liability of the Bank if
the Bank, its agents or any subcustodian has failed to provide and
maintain appropriate backup and disaster recovery facilities. This
paragraph shall not relieve the Fund from its responsibility to
provide and maintain appropriate backup and disaster recovery
facilities, or appropriately delegate any obligation to provide and
maintain such facilities, and shall not limit the liability of the
Fund if the Fund or its agents (other than the Bank, its affiliates or
any subcustodian) has failed to provide and maintain appropriate
backup and disaster recovery facilities.
c. The Delegate will indemnify and hold harmless the Fund, its
officers, trustees, employees, and agents (collectively, the "Fund
Indemnified Parties") and hold each of them harmless from any losses,
claims, damages, liabilities, or actions in respect thereof (including
reasonable legal expenses) to which the Fund or any Fund Indemnified
Party may become subject, insofar as such losses, claims, damages,
liabilities or actions in respect thereof arise from the failure of
Delegate to comply with the terms of this Agreement or the negligence,
willful misfeasance or bad faith of the Delegate or any Indemnified
Party or breach of the standard of care set forth in Section 8,
provided that the Delegate's indemnification obligation with respect
to the acts or omissions of its subcustodians hereunder shall not
exceed the indemnification that the Delegate may obtain from the
applicable subcustodian by the law of the governing jurisdiction.
7
d. At the Fund's election, the Fund shall be subrogated to the
rights of the Delegate with respect to any claims against an Eligible
Foreign Custodian relating to the Fund's assets as a consequence of
any loss, damage, cost, expense, liability or claim arising out of or
in connection with such Foreign Eligible Custodian's performance of
obligations under contracts with the Delegate governing the Fund's
foreign custody arrangements, if and to the extent that the Fund (or
any of its series) has not been made whole for any such loss, damage,
cost, expense, liability or claim.
e. The obligations set forth in this Section 11 shall survive the
termination of this Agreement.
12. EFFECTIVENESS AND TERMINATION OF AGREEMENT
This Agreement shall be effective as of the later of the date of
execution on behalf of Board or Delegate and shall remain in effect
until terminated as provided herein. This Agreement may be terminated
at any time, without penalty, by written notice from the terminating
party to the non-terminating party. Termination by the Fund will
become effective 90 days after receipt by the Bank of such notice; and
termination by the Bank will become effective 180 days after receipt
by the Fund of such notice.
13. AUTHORIZED REPRESENTATIVES AND NOTICES
The respective Authorized Representatives of Fund and Board, and
the addresses to which notices and other documents under this
Agreement are to be sent to each, are as set forth in APPENDIX F. Any
Authorized Representative of a party may add or delete persons from
that party's list of Authorized Representatives by written notice to
an Authorized Representative of the other party.
14. GOVERNING LAW
This Agreement shall be constructed in accordance with the laws
of the Commonwealth of Massachusetts without regard to principles of
choice of law.
15. PORTFOLIOS
This Agreement is an agreement entered into between the Delegate
and the Fund with respect to each series or portfolios of the Fund
(the "Portfolios") set forth on APPENDIX G. With respect to any
obligation of the Fund on behalf of any Portfolio arising out of this
Agreement, the Delegate shall look for payment or satisfaction of such
obligation solely to the assets of the Portfolio to which such
obligation relates as though the Delegate had separately contracted
with the Fund by separate written instrument with respect to each
Portfolio. Furthermore, unless the context otherwise requires, any
reference in this Agreement to any actions to be taken by the Fund
shall be deemed to refer to the Fund acting on behalf of one or more
of its Portfolios, any reference to the assets or Foreign Assets of
the Fund, including any Foreign Assets, shall be deemed to refer only
to assets of the applicable Portfolio, and any duty or obligation of
the Delegate hereunder to the Fund shall be deemed to refer to duties
and obligations with respect to such individual Portfolios. In the
event that the Fund establishes one or more additional Portfolios with
respect to which the Fund wishes to employ the Delegate to act as
delegate hereunder, the Fund shall notify the Delegate in writing.
Upon written acceptance by the Delegate, such Portfolio shall become
subject to the provisions of this Agreement to the same extent as the
8
existing Portfolios, except to the extent that such provisions
(including those relating to the compensation and expenses payable by
the Fund and its Portfolios) may be modified with respect to each
additional Portfolio in writing by the Fund and the Delegate at the
time of the addition of the Portfolio.
16. TRUST NOTICE
A copy of the Agreement and Declaration of Trust establishing the
Fund is on file with the Secretary of State of The Commonwealth of
Massachusetts, and notice is hereby given that this Agreement is
executed on behalf of the Fund by the officers of the Fund as officers
and not individually and that the obligations of or arising out of
this Agreement are not binding upon any of the trustees, officers or
shareholders individually but are binding only upon the assets and
property belonging respectively to each Portfolio.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed by their duly authorized representatives as of the date
first written above.
Investors Bank & Trust Company
By: /S/ XXXXXX X. XXXXXXX
Name: Xxxxxx X. Xxxxxxx
Title: Senior Vice President
CDC NVEST FUNDS TRUST II
By: /S/ XXXX XXXXXX
Name: Xxxx Xxxxxx
Title: President
10
LIST OF APPENDICES
A1 -- Jurisdictions Covered
A2 - Securities Depositories Covered
B -- Additional Jurisdictions/Securities Depositories Covered
C -- Additional Factors and Criteria To Be Applied in the Selection of
Eligible Foreign Custodians That Are Banking Institutions or Trust Companies
D -- Factors and Criteria To Be Applied in Establishing Systems For the
Monitoring of Foreign Custody Arrangements and Contracts
E -- Information Regarding Country Risk
F -- Authorized Representatives
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A1-1
APPENDIX A1
JURISDICTIONS COVERED
[delete those countries which are not delegated]
Argentina Kenya
Austria Korea
Australia Latvia
Bahrain Lebanon
Bangladesh Lithuania
Belgium Luxembourg
Bermuda Malaysia
Bolivia Mauritius
Botswana Mexico
Brazil Morocco
Bulgaria Namibia
Canada Netherlands
Chile New Zealand
China Norway
Clearstream (Cedel) Oman
Colombia Pakistan
Costa Rica Panama
Croatia Papau New Guinea
Cyprus Peru
Czech Republic Philippines
Denmark Poland
Ecuador Portugal
Egypt Romania
Estonia Russia
Euroclear Singapore
Finland Slovak Republic
France Slovenia
Germany South Africa
Ghana Spain
Greece Sri Lanka
Hong Kong Swaziland
Hungary Sweden
Iceland Switzerland
India Taiwan
Indonesia Thailand
Ireland Turkey
Israel Ukraine
Italy United Kingdom
Ivory Coast Uruguay
Japan Venezuela
Jordan Zambia
Kazakhstan Zimbabwe
A1-1
A2-4
APPENDIX A2
SECURITIES DEPOSITORIES COVERED
------------------------------------------------------- -----------------------------------------------------
Argentina CDV Philippines PCD
XXXX XxXX
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Australia Austraclear Ltd. Poland CRBS
CHESS NDS
RITS
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Austria OeKB AG Portugal Central de Valores
Mobiliarios
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Bahrain None Romania NBR
SNCDD
Stock Exchange
Registry, Clearing &
Settlement
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Bangladesh None Russia DCC
NDC
VTB
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Belgium BKB Singapore CDP
CIK MAS
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Bermuda None Slovak Republic NBS
SCP
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Botswana None Slovenia KDD
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Brazil CBLC South Africa STRATE
CETIP The Central Depository
SELIC (Pty) Ltd.
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Bulgaria The Bulgarian National Spain Banco de Espana
Bank SCLV
The Central Depository
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Canada Bank of Canada Sri Lanka CDS
CDS
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Chile DCV Sweden VPC AB
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
China SSCC Switzerland SIS SegaIntersettle AG
SSCCRC
------------------------------------------------------- -----------------------------------------------------
A2-1
------------------------------------------------------- -----------------------------------------------------
Clearstream Taiwan TSCD
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Colombia DCV Thailand TSD
DECEVAL
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Costa Rica CEVAL Turkey CBT
Takasbank
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Croatia CNB Ukraine Depository of the
Ministry of Finance National Bank of
SDA Ukraine
MFS Depository
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Czech Republic SCP Uruguay None
TKD
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Denmark VP United Kingdom CMO
CREST
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Ecuador DECEVALE, S.A. Venezuela BCV
CVV
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Egypt Misr for Clearing, Zambia Bank of Zambia
Settlement & Dep. XxXX CSD
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Estonia ECDSL Zimbabwe None
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Euroclear
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Finland APK
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
France Sicovam SA
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Germany Clearstream
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Ghana None
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Greece Bank of Greece
CSD
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Hong Kong CCASS
CMU
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Hungary Keler Ltd.
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
India CDSL
NSDL
------------------------------------------------------- -----------------------------------------------------
A2-2
------------------------------------------------------- -----------------------------------------------------
Indonesia Bank Indonesia
PT.KSEI
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Ireland CREST
Gilt Settlement Office
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Israel TASE Clearing
House Ltd.
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Italy Banca d-Italia
Monte Titoli
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Ivory Coast* Depositaire Central/
Banque de Reglement
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Japan Bank of Japan
JASDEC
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Jordan SDC
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Kazakhstan Kazakhstan Central
Securities Depository
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Kenya Central Bank of Kenya
Central Depository
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Korea KSD
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Latvia Bank of Latvia
LCD
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Lebanon Banque de Liban
MIDCLEAR
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Lithuania CSDL
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Luxembourg Clearstream
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Malaysia BNM (SSTS)
MCD
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Mauritius CDS
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Mexico S.D. Indeval
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Morocco Maroclear S.A.
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Netherlands NECIGEF
------------------------------------------------------- -----------------------------------------------------
A2-3
------------------------------------------------------- -----------------------------------------------------
New Zealand New Zealand Central
Securities Depository
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Norway VPS
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Oman MDSRC
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Pakistan Central Depository Co.
of Pakistan Limited
State Bank of Pakistan
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
Peru CAVALI
------------------------------------------------------- -----------------------------------------------------
------------------------------------------------------- -----------------------------------------------------
* Benin, Burkina-Faso, Guinea Bissau, Mali, Nigeria, Senegal, and Togo are
available through the Xxxxx Xxxxx
X0-0
X-0
APPENDIX B
ADDITIONAL JURISDICTIONS COVERED
Pursuant to Article 3 of this Agreement, Delegate and Board agree that the
following jurisdictions shall be added to Appendix A1:
[insert additional countries/depositories]
Investors Bank & Trust Company
By: ___________________________________
Name:
Title:
CDC NVEST FUNDS TRUST II
By:____________________________________
Name:
Title:
DATE: ______________________________
B-1
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APPENDIX C
ADDITIONAL FACTORS AND CRITERIA TO BE APPLIED
IN THE SELECTION OF ELIGIBLE FOREIGN CUSTODIANS
THAT ARE BANKING INSTITUTIONS OR TRUST COMPANIES
In addition to the factors set forth in Rule 17f-5(c)(1), in selecting
Eligible Foreign Custodians that are banking institutions or trust companies,
Delegate shall consider the following factors, if such information is available
(check all that apply):
_________ None
_________ Other (list below):
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APPENDIX D
FACTORS AND CRITERIA TO BE APPLIED
IN THE ESTABLISHING SYSTEMS FOR THE MONITORING OF
FOREIGN CUSTODY ARRANGEMENTS AND CONTRACTS
In establishing systems for the Monitoring of foreign custody arrangements
and contracts with Eligible Foreign Custodians, Delegate shall consider the
following factors, if such information is available:
1. Operating performance
2. Established practices and procedures
3. Relationship with market regulators
4. Contingency planning
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APPENDIX E
INFORMATION REGARDING COUNTRY RISK
To aid the Board in its determinations regarding Country Risk, Delegate
will furnish Board annually with respect to the jurisdictions specified in
Article 3, the following information:
1. Copy of Addenda or Side Letters to Subcustodian Agreements
2. Legal Opinion, if available, with regard to:
a) Access to books and records by the Fund's accountants
b) Ability to recover assets in the event of bankruptcy of a
custodian
c) Ability to recover assets in the event of a loss
d) Likelihood of expropriation or nationalization, if available
e) Ability to repatriate or convert cash or cash equivalents
3. Audit Report
4. Copy of Balance Sheet from Annual Report
5. Country Profile Matrix containing market practice for:
a) Delivery versus payment
b) Settlement method
c) Currency restrictions
d) Buy-in practice
e) Foreign ownership limits
f) Unique market arrangements
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APPENDIX F
AUTHORIZED REPRESENTATIVES
The names and addresses of each party's authorized representatives are set forth
below:
A. BOARD
Board of Trustees
CDC Nvest Funds
000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000
With a copy to:
CDC Nvest Funds
000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000
Attention: General Counsel
B. DELEGATE
Investors Bank & Trust Company
000 Xxxxxxxxx Xxxxxx
X.X. Xxx 0000
Xxxxxx, XX 00000-0000
Attention: Xxxxxxxx X'Xxxxxxx, Senior Director,
Client Management
Fax: (000) 000-0000
With a copy to:
Investors Bank & Trust Company
000 Xxxxxxxxx Xxxxxx
X.X. Xxx 0000
Xxxxxx, XX 00000-0000
Attention: Xxxxxx X. Xxxxx, Assistant General Counsel
Fax: (000) 000-0000
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APPENDIX G
PORTFOLIOS
SERIES OF CDC NVEST FUNDS TRUST II
CDC Nvest Growth and Income Fund
CDC Nvest High Income Fund
CDC Nvest Limited Term U.S. Government Fund
CDC Nvest Massachusetts Tax Free Income Fund
CDC Nvest Short Term Bond Fund
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