EXHIBIT 23D
INVESTMENT ADVISORY AGREEMENT
BRASS FUNDS, INC.
This Agreement is made and entered into as of the 15TH day of February,
2001, by and between BRASS Funds, Inc., a Maryland corporation (the "Fund"), and
BRASS Management & Research, LTD., a Texas limited Partnership ("Adviser").
WHEREAS, the Fund is an open-end management investment company, registered
under the Investment Company Act of 1940, as amended (the "Act"), and is
authorized to issue shares representing interests in the following series:
The BRASS Tax Advantaged Fund (the "Portfolio"); and
WHEREAS, the Fund Manager has previously entered into a Management Services
Agreement with the Company; and
WHEREAS, Adviser is registered as an investment adviser under the
Investment Advisers Act of 1940, as amended ( "Advisors Act"); and
WHEREAS, the Fund Manager wishes to retain Adviser to render investment
advisory services to the Fund, and Adviser is willing to furnish such services
to the Fund;
NOW THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:
1. OBLIGATIONS OF ADVISER
(A) SERVICES. Adviser agrees to perform the following services (the "Services")
for the Portfolio(s) of the Fund listed above, and such other Portfolios as may
be added by the Fund from time to time and agreed by the parties hereto:
(1) manage the investment and reinvestment of the Portfolio's assets;
(2) continuously review, supervise, and administer the investment
program of the Portfolio;
(3) determine, in its discretion, the securities to be purchased,
retained or sold (and implement those decisions);
(4) provide the Fund Manager with records concerning Adviser's
activities which the Fund is required to maintain; and
(5) render regular reports to the Fund Manager and if requested, to
the Fund's officers and directors concerning Adviser's discharge
of the foregoing responsibilities.
Adviser shall discharge the foregoing responsibilities subject to the general
supervision and control of the Fund Manager, the officers and the directors of
the Fund, in compliance with such policies as the directors may from time to
time establish, and in compliance with the objectives, policies, and limitations
of the Portfolio set forth in the Fund's prospectus and statement of additional
information, as amended from time to time, and with all applicable laws and
regulations. All Services to be furnished by Adviser under this Agreement may be
furnished through the medium of any directors, officers or employees of Adviser
or through such other parties as Adviser may determine from time to time.
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Adviser agrees, at its own expense or at the expense of one or more of its
affiliates, to render the Services and to provide the office space, furnishings,
equipment and personnel as may be reasonably required in the judgment of the
Board of Directors of the Fund to perform the Services on the terms and for the
compensation provided herein. Adviser shall authorize and permit any of its
officers, directors and employees, who may be elected as directors or officers
of the Fund, to serve in the capacities in which they are elected.
Except to the extent expressly assumed by Adviser herein and except to the
extent required by law to be paid by Adviser, the Fund shall pay all costs and
expenses in connection with its operation and organization.
(B) BOOKS AND RECORDS. All books and records prepared and maintained by
Adviser for the Fund under this Agreement shall be the property of the Fund and,
upon request therefor, Adviser shall surrender to the Fund such of the books and
records so requested.
2. PORTFOLIO TRANSACTIONS. Adviser is authorized to select the brokers or
dealers that will execute the purchases and sales of portfolio securities for
the Portfolio and is directed to use its best efforts to obtain the best net
results as described in the Fund's prospectus from time to time. Adviser may, in
its discretion, purchase and sell portfolio securities from and to brokers and
dealers who provide the Portfolio with research, analysis, advice and similar
services, and Adviser may pay to these brokers and dealers, in return for
research and analysis, a higher commission or spread than may be charged by
other brokers and dealers, provided that Adviser determines in good faith that
such commission is reasonable in terms either of that particular transaction or
of the overall responsibility of Adviser to the Fund and its other clients and
that the total commission paid by the Fund will be reasonable in relation to the
benefits to the Portfolio over the long-term. Adviser will promptly communicate
to the officers and the directors of the Fund such information relating to
portfolio transactions as they may reasonably request.
3. COMPENSATION OF ADVISER. The Fund will pay to Adviser on the last day
of each month a fee at an annual rate equal to 0.50% of the daily average net
asset value of the Portfolio, such fee to be computed daily based upon the net
asset value of the Portfolio as determined by a valuation made in accordance
with the Fund's procedures for calculating Portfolio net asset value as
described in the Fund's Prospectus and/or Statement of Additional Information.
During any period when the determination of a Portfolio's net asset value is
suspended by the directors of the Fund, the net asset value of a share of the
Portfolio as of the last business day prior to such suspension shall, for the
purpose of this Paragraph 3, be deemed to be net asset value at the close of
each succeeding business day until it is again determined.
4. STATUS OF INVESTMENT ADVISER. The services of Adviser to the Fund are
not to be deemed exclusive, and Adviser shall be free to render similar services
to others so long as its services to the Fund are not impaired thereby. Adviser
shall be deemed to be an independent contractor and shall, unless otherwise
expressly provided or authorized, have no authority to act for or represent the
Fund in any way or otherwise be deemed an agent of the Fund. Nothing in this
Agreement shall limit or restrict the right of any director, officer or employee
of Adviser, 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 other business, whether of a similar
nature or a dissimilar nature.
5. PERMISSIBLE INTERESTS. Directors, agents, and stockholders of the Fund
are or may be interested in Adviser (or any successor thereof) as directors,
partners, officers, or stockholders, or otherwise, and directors, partners,
officers, agents, and stockholders of Adviser are or may be interested in the
Fund as directors, stockholders or otherwise; and Adviser (or any successor) is
or may be interested in the Fund as a stockholder or otherwise.
6. LIABILITY OF INVESTMENT ADVISER. Adviser assumes no responsibility
under this Agreement other than to render the services called for hereunder in
good faith. Adviser 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
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
Investment Company Act of 1940 or a loss resulting from willful misfeasance, bad
faith or gross negligence on its part in the performance of, or from reckless
disregard by it of its obligations and duties under, this Agreement.
7. TERM. This Agreement shall remain in effect until February 15, 2003,
and from year to year thereafter provided such continuance is approved at least
annually by (1) the vote of a majority of the Board of Directors of the Fund or
(2) a vote of a "majority" (as that term is defined in the Investment Company
Act of 1940) of the Fund's outstanding securities, provided that in either event
the continuance is also approved by the vote of a majority of the directors of
the Fund who are not parties to this Agreement or "interested persons" (as
defined in the Act) of any such party, which vote must be cast in person at
meeting called for the purpose of voting on such approval; PROVIDED, HOWEVER,
that;
(a) the Fund or Fund manager may, at any time and without the payment
of any penalty, terminate this Agreement upon 60 days written
notice to Adviser;
(b) the Agreement shall immediately terminate in the event of its
assignment (within the meaning of the Act and the Rules
thereunder); and
(c) Adviser may terminate this Agreement without payment of penalty
on 60 days written notice to the Fund; and
(d) the terms of paragraph 6 of this Agreement shall survive the
termination of this Agreement.
8. NOTICES. Except as otherwise provided in this Agreement, any notice or
other communication required by or permitted to be given in connection with this
Agreement will be in writing and will be delivered in person or sent by first
class mail, postage prepaid or by prepaid overnight delivery service to the
respective parties as follows:
If to the Fund: If to the Adviser:
--------------- ------------------
BRASS Funds, Inc. BRASS Management & Research, LTD.
00000 Xxxxx Xxxxxx, Xxxxx 000, 00000 Xxxxx Xxxxxx, Xxxxx 000
Xxx Xxxxxxx, XX 00000 Xxx Xxxxxxx, XX 00000
J. Xxxx Xxxxxxxxx J. Xxxx Xxxxxxxxx
President President
9. AMENDMENTS. No provision of this Agreement may be changed, waived,
discharged or terminated orally, but only by an instrument in writing signed by
the party against which enforcement of the change, waiver, discharge or
termination is sought, and no amendment of this Agreement shall be effective
until approved by vote of the holders of a majority of the Fund's outstanding
voting securities.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and the year first written above.
BRASS FUNDS, INC. ATTEST:
______________________________ ______________________________
By: J. Xxxx Xxxxxxxxx By: _________________________
President Its: Secretary
[Corporate Seal]
BRASS MANAGEMENT &
RESEARCH, LTD. ATTEST:
______________________________ ______________________________
By: J. Xxxx Xxxxxxxxx By: _________________________
President Its: Secretary
[Corporate Seal]
