EXHIBIT (d)(4)
INVESTMENT MANAGEMENT AGREEMENT
AGREEMENT made this 23rd day of September, 2002 between ING Equity
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 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, 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
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securities and 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. 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, 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 requirements of the 1940 Act, as well as other
applicable laws. The Manager will furnish to
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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.
(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
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Trust and will 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 maintain and to
preserve for the periods prescribed under the 1940 Act any such records as are
required to be maintained by the Trust 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, executive salaries and expenses of the Trustees of the Trust
who are employees of the Manager or its affiliates, and office rent of the
Trust. 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
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with shareholder and trustee meetings; expenses of printing and distributing
prospectuses and statements of additional information to 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 us.
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 gross
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 gross 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, gross 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.
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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 0000 Xxx) 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 the Reapproval Date set forth for such
Series on Schedule A to this Agreement, 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, or (ii) by vote of a majority of the outstanding
voting shares of such Series (as defined in the 1940 Act), 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 0000 Xxx) 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 shares (as defined in the 0000 Xxx) 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 shares of any other Series or (ii) that this
Agreement has not been approved by the vote of a majority of the outstanding
shares of the Trust, unless such approval shall be required by any other
applicable law or otherwise. This Agreement may be terminated by the Trust at
any time, without the payment of any penalty, by vote of a majority of the Board
of Trustees of the Trust or by a vote of a majority of the outstanding voting
shares of the Trust, or with respect to a Series, by vote of a majority of the
outstanding voting shares of such Series, on sixty (60) days' written notice to
the Manager, or by the Manager at any time, without the payment of any penalty,
on sixty (60) days' written notice to the Trust. This Agreement will
automatically and immediately terminate in the event of its "assignment" (as
described in the 1940 Act).
12. Use of Name. It is understood that the name "ING
Investments, LLC" or any derivative thereof (including the name "ING ") or logo
associated with that name is the valuable property of the Manager and its
affiliates, and that the Trust or the Series have the right to use such name (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 name (or derivative or logo) and, in
the case of the Trust, shall promptly amend its Declaration of Trust to change
its name (if such name is 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.
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 EQUITY TRUST
BY: -s- Xxxxxx X. Naka
-----------------------------
Xxxxxx X. Naka
Senior Vice President
ING INVESTMENTS, LLC
BY: -s- Xxxxxxx X. Xxxxxx
-----------------------------
Xxxxxxx X. Xxxxxx
Executive Vice President
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SCHEDULE A
WITH RESPECT TO THE
INVESTMENT MANAGEMENT AGREEMENT
BETWEEN
ING EQUITY TRUST
AND
ING INVESTMENTS, LLC
EFFECTIVE SEPTEMBER 23, 2002
ANNUAL INVESTMENT
MANAGEMENT FEE LAST CONTINUED/
SERIES (AS a percentage of average daily net assets) APPROVED BY BOARD REAPPROVAL DATE
-------------------- --------------------------------------------- ----------------- -----------------
ING LargeCap Growth 0.75% of the first $500 million of assets August 20, 2002 September 1, 2003
Fund 0.675% of the next $500 million of assets
0.65% of the assets in excess of $1 billion
ING Convertible Fund 0.75% of the first $500 million of assets August 20, 2002 September 1, 2003
0.675% of the next $500 million of assets
0.65% of the assets in excess of $1 billion
ING Equity and Bond 0.75% of the first $500 million of assets August 20, 2002 September 1, 2003
Fund 0.675% of the next $500 million of assets
0.65% of the assets in excess of $1 billion
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