PRUDENTIAL WORLD FUND, INC.
PRUDENTIAL INTERNATIONAL VALUE FUND
AMENDED AND RESTATED MANAGEMENT AGREEMENT
Agreement made the 18th day of September, 1996, as amended and restated
this 28th day of March, 2001, between Prudential World Fund, Inc., a Maryland
corporation (the Fund), on behalf of its series, Prudential International Value
Fund, and Prudential Investments Fund Management LLC, a New York limited
liability company (the Manager).
W I T N E S S E T H
WHEREAS, the Fund is a diversified, open-end management investment
company registered under the Investment Company Act of 1940, as amended (the
1940 Act); and
WHEREAS, the Fund desires to retain the Manager to render or contract to
obtain as hereinafter provided investment advisory services to the Fund and the
Fund also desires to avail itself of the facilities available to the Manager
with respect to the administration of its day-to-day business affairs, and the
Manager is willing to render such investment advisory and administrative
services;
NOW, THEREFORE, the parties agree as follows:
1. The Fund hereby appoints the Manager to act as
manager of the Fund and each series thereof, if any (each a Portfolio) and as
administrator of its business affairs for the period and on the terms set forth
in this Agreement. The Manager accepts such appointment and agrees to render the
services herein described, for the compensation herein provided. Subject to the
approval of the Board of Directors of the Fund, the Manager is authorized to
enter into a subadvisory agreement with Prudential Investment Management, Inc.,
Xxxxxxxx Associates LLC, or any other subadviser, whether or not affiliated with
the Manager (each, a Subadviser), pursuant to which such Subadviser shall
furnish to the Fund the investment advisory services in connection with the
management of the Fund (each, a Subadvisory Agreement). Subject to the approval
of the Board of Directors of the Fund, the Manager is authorized to retain more
than one Subadviser for the Fund, and if the Fund has more than one Subadviser,
the Manager is authorized to allocate the Fund's assets among the Subadvisers.
The Manager will continue to have responsibility for all investment advisory
services furnished pursuant to any Subadvisory Agreement. The Fund and Manager
understand and agree that the Manager may manage the Fund in a
"manager-of-managers" style with either a single or multiple subadvisers, which
contemplates that the Manager will, among other things and pursuant to an Order
issued by the Securities and Exchange Commission (SEC): (i) continually evaluate
the performance of the Subadviser to the Fund, if applicable, through
quantitative and qualitative analysis and consultations with such Subadviser;
(ii) periodically make recommendations to the Fund's Board as to whether the
contract with one or more Subadvisers should be renewed, modified, or
terminated; and (iii) periodically report to the Fund's Board regarding the
results of its evaluation and monitoring functions. The Fund recognizes that a
Subadviser's services may be terminated or modified pursuant to the
"manager-of-managers" process, and that the Manager may appoint a new Subadviser
for a Subadviser that is so removed.
2. Subject to the supervision of the Board of Directors of the
Fund, the Manager
shall administer the Fund's business affairs and, in connection therewith, shall
furnish the Fund with office facilities and with clerical, bookkeeping and
recordkeeping services at such office facilities and, subject to Section 1
hereof and any Subadvisory Agreement, the Manager shall manage the investment
operations of the Fund and the composition of the Fund's portfolio, including
the purchase, retention and disposition thereof, in accordance with the Fund's
investment objectives, policies and restrictions as stated in the Fund's SEC
registration statement, and subject to the following understandings:
(a) The Manager (or a Subadviser under the Manager's
supervision) shall provide supervision of the Fund's investments, and
shall determine from time to time what investments or securities will be
purchased, retained, sold or loaned by the Fund, and what portion of the
assets will be invested or held uninvested as cash.
(b) The Manager, in the performance of its duties and
obligations under this Agreement, shall act in conformity with the
Articles of Incorporation of the Fund and the Fund's SEC registration
statement and with the instructions and directions of the Board of
Directors of the Fund, and will conform to and comply with the
requirements of the 1940 Act and all other applicable federal and state
laws and regulations. In connection therewith, the Manager shall, among
other things, prepare and file (or cause to be prepared and filed) such
reports as are, or may in the future be, required by the SEC.
(c) The Manager (or the Subadviser under the Manager's
supervision) shall determine the securities and futures contracts to be
purchased or sold by the Fund and will place orders pursuant to its
determinations with or through such persons, brokers, dealers or futures
commission merchants (including but not limited to Prudential Securities
Incorporated) in conformity with the policy with respect to brokerage as
set forth in the Fund's Registration Statement or as the Board of
Directors may direct from time to time. In providing the Fund with
investment supervision, it is recognized that the Manager (or the
Subadviser under the Manager's supervision) will give primary
consideration to securing the most favorable price and efficient
execution. Consistent with this policy, the Manager (or Subadviser under
the Manager's supervision) may consider the financial responsibility,
research and investment information and other services provided by
brokers, dealers or futures commission merchants who may effect or be a
party to any such transaction or other transactions to which other
clients of the Manager (or Subadviser) may be a party. It is understood
that Prudential Securities Incorporated (or a broker-dealer affiliated
with a Subadviser) may be used as principal broker for securities
transactions, but that no formula has been adopted for allocation of the
Fund's investment transaction business. It is also understood that it is
desirable for the Fund that the Manager (or Subadviser) have access to
supplemental investment and market research and security and economic
analysis provided by brokers or futures commission merchants, and that
such brokers or futures commission merchants may execute brokerage
transactions at a higher cost to the Fund than may result when allocating
brokerage to other brokers or futures commission merchants on the basis
of seeking the most favorable price and efficient execution. Therefore,
the Manager (or the Subadviser under the Manager's supervision) is
authorized to pay higher brokerage commissions for the purchase and sale
of securities and futures contracts for the Fund to
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brokers or futures commission merchants who provide such research and
analysis, subject to review by the Fund's Board of Directors from time to
time with respect to the extent and continuation of this practice. It is
understood that the services provided by such broker or futures
commission merchant may be useful to the Manager (or the Subadviser) in
connection with its services to other clients.
On occasions when the Manager (or a Subadviser under the Manager's
supervision) deems the purchase or sale of a security or a futures
contract to be in the best interest of the Fund as well as other clients
of the Manager (or the Subadviser), the Manager (or Subadviser), to the
extent permitted by applicable laws and regulations, may, but shall be
under no obligation to, aggregate the securities or futures contracts to
be so sold or purchased in order to obtain the most favorable price or
lower brokerage commissions and efficient execution. In such event,
allocation of the securities or futures contracts so purchased or sold,
as well as the expenses incurred in the transaction, will be made by the
Manager (or the Subadviser) in the manner it considers to be the most
equitable and consistent with its fiduciary obligations to the Fund and
to such other clients.
(d) The Manager (or the Subadviser under the Manager's
supervision) shall maintain all books and records with respect to the
Fund's portfolio transactions and shall render to the Fund's Board of
Directors such periodic and special reports as the Board may reasonably
request.
(e) The Manager (or the Subadviser under the Manager's
supervision) shall be responsible for the financial and accounting
records to be maintained by the Fund (including those being maintained by
the Fund's Custodian).
(f) The Manager (or the Subadviser under the Manager's
supervision) shall provide the Fund's Custodian on each business day
information relating to all transactions concerning the Fund's assets.
(g) The investment management services of the Manager to the
Fund under this Agreement are not to be deemed exclusive, and the Manager
shall be free to render similar services to others.
(h) The Manager shall make reasonably available its employees
and officers for consultation with any of the Directors or officers or
employees of the Fund with respect to any matter discussed herein,
including, without limitation, the valuation of the Fund's securities.
3. The Fund has delivered to the Manager copies of each of the
following documents and will deliver to it all future amendments and
supplements, if any:
(a) Articles of Incorporation or Declaration of Trust;
(b) By-Laws of the Fund (such By-Laws, as in effect on the date
hereof and as amended from time to time, are herein called the
"By-Laws");
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(c) Certified resolutions of the Board of Directors of the Fund
authorizing the appointment of the Manager and approving the form of this
agreement;
(d) Registration Statement under the 1940 Act and the
Securities Act of 1933, as amended, on Form N-1A (the Registration
Statement), as filed with the SEC relating to the Fund and its shares of
common stock and all amendments thereto; and
(e) Prospectus and Statement of Additional Information of the
Fund.
4. The Manager shall authorize and permit any of its officers
and employees who may be elected as Directors or officers of the Fund to
serve in the capacities in which they are elected. All services to be
furnished by the Manager under this Agreement may be furnished through
the medium of any such officers or employees of the Manager.
5. The Manager shall keep the Fund's books and records
required to be maintained by it pursuant to Paragraph 2 hereof. The
Manager agrees that all records which it maintains for the Fund are the
property of the Fund, and it will surrender promptly to the Fund any such
records upon the Fund's request, provided however that the Manager may
retain a copy of such records. The Manager further agrees to preserve for
the periods prescribed by Rule 31a-2 under the 1940 Act any such records
as are required to be maintained by the Manager pursuant to Paragraph 2
hereof.
6. During the term of this Agreement, the Manager shall pay
the following expenses:
(i) the salaries and expenses of all employees of the
Fund and the Manager, except the fees and expenses of Directors
who are not affiliated persons of the Manager or any Subadviser,
(ii) all expenses incurred by the Manager in
connection with managing the ordinary course of the Fund's
business, other than those assumed by the Fund herein, and
(iii) the fees, costs and expenses payable to a
Subadviser pursuant to a Subadvisory Agreement.
The Fund assumes and will pay the expenses described below:
(a) the fees and expenses incurred by the Fund in
connection with the management of the investment and
reinvestment of the Fund's assets,
(b) the fees and expenses of Fund Directors who are
not "interested persons" of the Fund within the meaning of the
1940 Act,
(c) the fees and expenses of the Custodian that
relate to (i) the custodial function and the recordkeeping
connected therewith, (ii) preparing and maintaining the general
accounting records of the Fund and the provision of any such
records to the Manager
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useful to the Manager in connection with the Manager's
responsibility for the accounting records of the Fund pursuant
to Section 31 of the 1940 Act and the rules promulgated
thereunder, (iii) the pricing or valuation of the shares of the
Fund, including the cost of any pricing or valuation service or
services which may be retained pursuant to the authorization of
the Board of Directors of the Fund, and (iv) for both mail and
wire orders, the cashiering function in connection with the
issuance and redemption of the Fund's securities,
(d) the fees and expenses of the Fund's Transfer and
Dividend Disbursing Agent that relate to the maintenance of
each shareholder account,
(e) the charges and expenses of legal counsel and
independent accountants for the Fund,
(f) brokers' commissions and any issue or transfer
taxes chargeable to the Fund in connection with its securities
and futures transactions,
(g) all taxes and corporate fees payable by the Fund
to federal, state or other governmental agencies,
(h) the fees of any trade associations of which the
Fund may be a member,
(i) the cost of share certificates representing,
and/or non-negotiable share deposit receipts evidencing, shares
of the Fund,
(j) the cost of fidelity, directors' and officers'
and errors and omissions insurance,
(k) the fees and expenses involved in registering and
maintaining registration of the Fund and of its shares with the
Securities and Exchange Commission, and paying notice filing
fees under state securities laws, including the preparation and
printing of the Fund's registration statement and the Fund's
prospectuses and statements of additional information for
filing under federal and state securities laws for such
purposes,
(l) allocable communications expenses with respect to
investor services and all expenses of shareholders' and
Directors' meetings and of preparing, printing and mailing
reports and notices to shareholders in the amount necessary for
distribution to the shareholders,
(m) litigation and indemnification expenses and other
extraordinary expenses not incurred in the ordinary course of
the Fund's business, and
(n) any expenses assumed by the Fund pursuant to a
Distribution and Service Plan adopted in a manner that is
consistent with Rule 12b-1 under the 1940 Act.
7. For the services provided and the expenses
assumed pursuant to this
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Agreement, the Fund will pay to the Manager as full compensation therefor
a fee at the annual rate(s) as described on the attached Schedule A with
respect to the average daily net assets of the Fund. This fee will be
computed daily, and will be paid to the Manager monthly.
8. The Manager shall not be liable for any error of judgment
or for any loss suffered by the Fund in connection with the matters to
which this Agreement relates, except a loss resulting from a breach of
fiduciary duty with respect to the receipt of compensation for services
(in which case any award of damages shall be limited to the period and
the amount set forth in Section 36(b)(3) of the 0000 Xxx) or loss
resulting 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 Agreement.
9. This Agreement shall continue in effect for a period of
more than two years from the date hereof only so long as such continuance
is specifically approved at least annually in conformity with the
requirements of the 1940 Act; provided, however, that this Agreement may
be terminated with respect to the Fund at any time, without the payment
of any penalty, by the Board of Directors of the Fund or by vote of a
majority of the outstanding voting securities (as defined in the 0000
Xxx) of the Fund, or by the Manager at any time, without the payment of
any penalty, on not more than 60 days' nor less than 30 days' written
notice to the other party. This Agreement shall terminate automatically
in the event of its assignment (as defined in the 1940 Act).
10. Nothing in this Agreement shall limit or restrict the right
of any officer or employee of the Manager who may also be a Director,
officer or employee of the Fund 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 business, whether of a similar or dissimilar nature, nor
limit or restrict the right of the Manager to engage in any other
business or to render services of any kind to any other corporation,
firm, individual or association.
11. Except as otherwise provided herein or authorized by the
Board of Directors of the Fund from time to time, the Manager shall for
all purposes herein be deemed to be an independent contractor, and shall
have no authority to act for or represent the Fund in any way or
otherwise be deemed an agent of the Fund.
12. During the term of this Agreement, the Fund agrees to
furnish the Manager at its principal office all prospectuses, proxy
statements, reports to shareholders, sales literature, or other material
prepared for distribution to shareholders of the Fund or the public,
which refer in any way to the Manager, prior to use thereof and not to
use such material if the Manager reasonably objects in writing within
five business days (or such other time as may be mutually agreed) after
receipt thereof. In the event of termination of this Agreement, the Fund
will continue to furnish to the Manager copies of any of the above-
mentioned materials which refer in any way to the Manager. Sales
literature may be furnished to the Manager hereunder by first-class or
overnight mail, facsimile transmission equipment or hand delivery. The
Fund shall furnish or otherwise make available to the Manager such other
information relating to the business affairs of the Fund as the Manager
at any time, or from time to time, reasonably requests in order to
discharge its obligations hereunder.
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13. This Agreement may be amended by mutual consent, but the
consent of the Fund must be obtained in conformity with the requirements
of the 1940 Act.
14. Any notice or other communication required to be given
pursuant to this Agreement shall be deemed duly given if delivered or
mailed by registered mail, postage prepaid, (1) to the Manager at Gateway
Center Three, 000 Xxxxxxxx Xxxxxx, 0xx Xxxxx, Xxxxxx, XX 00000-0000,
Attention: Secretary; or (2) to the Fund at Gateway Center Three, 000
Xxxxxxxx Xxxxxx, Xxxxxx, XX 00000-0000, Attention: President.
15. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.
16. The Fund may use the name "Prudential World Fund, Inc. -
Prudential International Value Fund" or any name including the word
"Prudential" only for so long as this Agreement or any extension, renewal
or amendment hereof remains in effect, including any similar agreement
with any organization which shall have succeeded to the Manager's
business as Manager or any extension, renewal or amendment thereof remain
in effect. At such time as such an agreement shall no longer be in
effect, the Fund will (to the extent that it lawfully can) cease to use
such a name or any other name indicating that it is advised by, managed
by or otherwise connected with the Manager, or any organization which
shall have so succeeded to such businesses. In no event shall the Fund
use the name "Prudential World Fund, Inc. - Prudential International
Value Fund" or any name including the word "Prudential" if the Manager's
function is transferred or assigned to a company of which The Prudential
Insurance Company of America does not have control.
IN WITNESS WHEREOF, the parties hereto have caused this instrument
to be executed by their officers designated below as of the day and year
above written.
PRUDENTIAL WORLD FUND, INC.
PRUDENTIAL INTERNATIONAL VALUE FUND
By: /s/ Xxxxx X. Xxxxxxx, Xx.
-------------------------
Xxxxx X. Xxxxxxx, Xx.
President
PRUDENTIAL INVESTMENTS FUND
MANAGEMENT LLC
By: /s/ Xxxxxx X. Xxxxx
-------------------
Xxxxxx X. Xxxxx
Executive Vice President
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SCHEDULE A
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Prudential World Fund, Inc.
Prudential International Value Fund 1.00% to $300 million
0.95% thereafter
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Schedule dated March 28, 2001
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