Sub-Item 77Q1(e)
INVESTMENT ADVISORY AGREEMENT
THIS AGREEMENT is made this 15th day of October, 2012, by and between
Invesco Value Municipal Securities, a Delaware statutory trust (the "Trust"),
and Invesco Advisers, Inc., a Delaware corporation (the "Adviser").
RECITALS
WHEREAS, the Trust is registered under the Investment Company Act of 1940,
as amended (the "1940 Act"), as a closed-end management investment company;
WHEREAS, the Adviser is registered under the Investment Advisers Act of
1940, as amended (the "Advisers Act"), as an investment adviser and engages in
the business of acting as an investment adviser;
WHEREAS, the Trust and the Adviser desire to enter into an agreement to
provide for investment advisory services to the Trust upon the terms and
conditions hereinafter set forth;
NOW THEREFORE, in consideration of the mutual covenants herein contained and
other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:
1. ADVISORY SERVICES. The Adviser shall act as investment adviser for the
Trust and shall, in such capacity, supervise all aspects of the Trust's
operations, including the investment and reinvestment of cash, securities or
other properties comprising the Trust's assets, subject at all times to the
policies and control of the Board of Trustees. The Adviser shall give the
Trust the benefit of its best judgment, efforts and facilities in rendering
its services as investment adviser.
2. INVESTMENT ANALYSIS AND IMPLEMENTATION. In carrying out its
obligations under Section 1 hereof, the Adviser shall:
(a) supervise all aspects of the operations of the Trust;
(b) obtain and evaluate pertinent information about significant
developments and economic, statistical and financial data, domestic,
foreign or otherwise, whether affecting the economy generally or the
Trust, and whether concerning the individual issuers whose securities
are included in the assets of the Trust or the activities in which such
issuers engage, or with respect to securities which the Adviser
considers desirable for inclusion in the Trust's assets;
(c) determine which issuers and securities shall be represented in
the Trust's investment portfolios and regularly report thereon to the
Board of Trustees;
(d) formulate and implement continuing programs for the purchases and
sales of the securities of such issuers and regularly report thereon to
the Board of Trustees; and
(e) take, on behalf of the Trust, all actions which appear to the
Trust necessary to carry into effect such purchase and sale programs and
supervisory functions as aforesaid, including but not limited to the
placing of orders for the purchase and sale of securities for the Trust.
3. SECURITIES LENDING DUTIES AND FEES. The Adviser agrees to provide the
following services in connection with the securities lending activities of
the Trust: (a) oversee participation in the securities lending program to
ensure compliance with all applicable regulatory and investment guidelines;
(b) assist the securities lending agent or principal (the "Agent") in
determining which specific securities are available for loan; (c) monitor
the Agent to ensure that securities loans are effected in accordance with
the Adviser's instructions and with procedures adopted by the Board of
Trustees; (d) prepare appropriate periodic reports for, and seek appropriate
approvals from, the Board of Trustees with respect to securities lending
activities; (e) respond to Agent inquiries; and (f) perform such other
duties as necessary.
As compensation for such services provided by the Adviser in connection
with securities lending activities, the Trust shall pay the Adviser a fee
equal to 25% of the net monthly interest or fee income retained or paid to
the Trust from such activities.
4. DELEGATION OF RESPONSIBILITIES. The Adviser is authorized to delegate
any or all of its rights, duties and obligations under this Agreement to one
or more sub-advisors, and may enter into agreements with sub-advisers, and
may replace any such sub-advisors from time to time in its discretion, in
accordance with the 1940 Act, the Advisers Act, and rules and regulations
thereunder, as such statutes, rules and regulations are amended from time to
time or are interpreted from time to time by the staff of the Securities and
Exchange Commission ("SEC"), and if applicable, exemptive orders or similar
relief granted by the SEC and upon receipt of approval of such sub-advisors
by the Board of Trustees and by shareholders (unless any such approval is
not required by such statutes, rules, regulations, interpretations, orders
or similar relief).
5. INDEPENDENT CONTRACTORS. The Adviser and any sub-advisors shall for
all purposes herein be deemed to be independent contractors and shall,
unless otherwise expressly provided or authorized, have no authority to act
for or represent the Trust in any way or otherwise be deemed to be an agent
of the Trust.
6. CONTROL BY BOARD OF TRUSTEES. Any investment program undertaken by the
Adviser pursuant to this Agreement, as well as any other activities
undertaken by the Adviser on behalf of the Trust, shall at all times be
subject to any directives of the Board of Trustees.
7. COMPLIANCE WITH APPLICABLE REQUIREMENTS. In carrying out its
obligations under this Agreement, the Advisor shall at all times conform to:
(a) all applicable provisions of the 1940 Act and the Advisers Act
and any rules and regulations adopted thereunder;
(b) the provisions of the registration statement of the Trust, as the
same may be amended from time to time under the Securities Act of 1933
and the 1940 Act;
(c) the provisions of the Trust's Declaration of Trust, as the same
may be amended from time to time;
(d) the provisions of the by-laws of the Trust, as the same may be
amended from time to time; and
(e) any other applicable provisions of state, federal or foreign law.
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8. BROKER-DEALER RELATIONSHIPS. The Adviser is responsible for decisions
to buy and sell securities for the Funds, broker-dealer selection, and
negotiation of brokerage commission rates.
(a) The Adviser's primary consideration in effecting a security
transaction will be to obtain the best execution.
(b) In selecting a broker-dealer to execute each particular
transaction, the Adviser will take the following into consideration: the
best net price available; the reliability, integrity and financial
condition of the broker-dealer; the size of and the difficulty in
executing the order; and the value of the expected contribution of the
broker-dealer to the investment performance of the Trust on a continuing
basis. Accordingly, the price to the Trust in any transaction may be
less favorable than that available from another broker-dealer if the
difference is reasonably justified by other aspects of the fund
execution services offered.
(c) Subject to such policies as the Board of Trustees may from time
to time determine, the Adviser 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 Trust to pay a
broker or dealer that provides brokerage and research services to the
Adviser an amount of commission for effecting a fund investment
transaction in excess of the amount of commission another broker or
dealer would have charged for effecting that transaction, if the Adviser
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 or dealer, viewed in terms of either that particular
transaction or the Adviser's overall responsibilities with respect to
the Trust and to other clients of the Adviser as to which the Adviser
exercises investment discretion. The Adviser is further authorized to
allocate the orders placed by it on behalf of the Trust to such brokers
and dealers who also provide research or statistical material, or other
services to the Trust, to the Adviser, or to any sub-advisor. Such
allocation shall be in such amounts and proportions as the Adviser shall
determine and the Adviser will report on said allocations regularly to
the Board of Trustees indicating the brokers to whom such allocations
have been made and the basis therefor.
(d) With respect to the Trust, to the extent the Adviser does not
delegate trading responsibility to one or more sub-advisors, in making
decisions regarding broker-dealer relationships, the Adviser may take
into consideration the recommendations of any sub-advisor appointed to
provide investment research or advisory services in connection with the
Trust, and may take into consideration any research services provided to
such sub-advisor by broker-dealers.
(e) Subject to the other provisions of this Section 8, the 1940 Act,
the Securities Exchange Act of 1934, and rules and regulations
thereunder, as such statutes, rules and regulations are amended from
time to time or are interpreted from time to time by the staff of the
SEC, any exemptive orders issued by the SEC, and any other applicable
provisions of law, the Adviser may select brokers or dealers with which
it or the Trust are affiliated.
9. COMPENSATION. The compensation that the Trust shall pay the Adviser is
set forth in Appendix I attached hereto.
10. EXPENSES OF THE TRUST. All of the ordinary business expenses incurred
in the operations of the Trust and the offering of their shares shall be
borne by the Trust
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unless specifically provided otherwise in this Agreement. These expenses
borne by the Trust include but are not limited to brokerage commissions,
taxes, legal, accounting, auditing, or governmental fees, the cost of
preparing share certificates, custodian, transfer and shareholder service
agent costs, expenses of issue, sale, redemption and repurchase of shares,
expenses of registering and qualifying shares for sale, expenses relating to
trustees and shareholder meetings, the cost of preparing and distributing
reports and notices to shareholders, the fees and other expenses incurred by
the Funds in connection with membership in investment company organizations
and the cost of printing copies of prospectuses and statements of additional
information distributed to the Trust's shareholders.
11. SERVICES TO OTHER COMPANIES OR ACCOUNTS. The Trust understands that
the Adviser now acts, will continue to act and may act in the future as
investment manager or adviser to fiduciary and other managed accounts, and
as investment manager or adviser to other investment companies, including
any offshore entities, or accounts, and the Trust has no objection to the
Adviser so acting, provided that whenever the Trust and one or more other
investment companies or accounts managed or advised by the Adviser have
available funds for investment, investments suitable and appropriate for
each will be allocated in accordance with a formula believed to be equitable
to each company and account. The Trust recognizes that in some cases this
procedure may adversely affect the size of the positions obtainable and the
prices realized for the Funds.
12. NON-EXCLUSIVITY. The Trust understands that the persons employed by
the Adviser to assist in the performance of the Adviser's duties under this
Agreement will not devote their full time to such service and nothing
contained in this Agreement shall be deemed to limit or restrict the right
of the Adviser or any affiliate of the Adviser to engage in and devote time
and attention to other businesses or to render services of whatever kind or
nature. The Trust further understands and agrees that officers or directors
of the Adviser may serve as officers or trustees of the Trust, and that
officers or trustees of the Trust may serve as officers or directors of the
Adviser to the extent permitted by law; and that the officers and directors
of the Adviser are not prohibited from engaging in any other business
activity or from rendering services to any other person, or from serving as
partners, officers, directors or trustees of any other firm or trust,
including other investment advisory companies.
13. EFFECTIVE DATE, TERM AND APPROVAL. This Agreement shall become
effective with respect to the Trust, if approved by the shareholders of the
Trust, on the date indicated above. If so approved, this Agreement shall
thereafter continue in force and effect until two years after the date
indicated above, and may be continued from year to year thereafter, provided
that the continuation of the Agreement is specifically approved at least
annually:
(a) (i) by the Board of Trustees or (ii) by the vote of "a majority
of the outstanding voting securities" of the Trust (as defined in
Section 2(a)(42) of the 0000 Xxx); and
(b) by the affirmative vote of a majority of the trustees who are not
parties to this Agreement or "interested persons" (as defined in the
0000 Xxx) of a party to this Agreement (other than as trustees of the
Trust), by votes cast in person at a meeting specifically called for
such purpose.
14. TERMINATION. This Agreement may be terminated as to the Trust at any
time, without the payment of any penalty, by vote of the Board of Trustees
or by vote of a
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majority of the outstanding voting securities of the Trust, or by the
Adviser, on sixty (60) days' written notice to the other party. The notice
provided for herein may be waived by the party entitled to receipt thereof.
This Agreement shall automatically terminate in the event of its assignment,
the term "assignment" for purposes of this paragraph having the meaning
defined in Section 2(a)(4) of the 1940 Act.
15. AMENDMENT. No amendment of this Agreement shall be effective unless
it is in writing and signed by the party against which enforcement of the
amendment is sought.
16. LIABILITY OF ADVISER AND TRUST. In the absence of willful
misfeasance, bad faith, gross negligence or reckless disregard of
obligations or duties hereunder on the part of the Adviser or any of its
officers, directors or employees, the Adviser shall not be subject to
liability to the Trust or to any shareholder of the Trust for any act or
omission in the course of, or connected with, rendering services hereunder
or for any losses that may be sustained in the purchase, holding or sale of
any security.
17. LIABILITY OF SHAREHOLDERS. Notice is hereby given that, as provided
by applicable law, the obligations of or arising out of this Agreement are
not binding upon any of the shareholders of the Trust individually but are
binding only upon the assets and property of the Trust and that the
shareholders shall be entitled, to the fullest extent permitted by
applicable law, to the same limitation on personal liability as shareholders
of private corporations for profit.
18. NOTICES. Any notices under this Agreement shall be in writing,
addressed and delivered, telecopied or mailed postage paid, to the other
party entitled to receipt thereof at such address as such party may
designate for the receipt of such notice. Until further notice to the other
party, it is agreed that the address of the Trust and that of the Adviser
shall be 0000 Xxxxxxxxx Xxxxxx, X.X., Xxxxxxx, Xxxxxxx 00000.
19. QUESTIONS OF INTERPRETATION. Any question of interpretation of any
term or provision of this Agreement having a counterpart in or otherwise
derived from a term or provision of the 1940 Act or the Advisers Act shall
be resolved by reference to such term or provision of the 1940 Act or the
Advisers Act and to interpretations thereof, if any, by the United States
Courts or in the absence of any controlling decision of any such court, by
rules, regulations or orders of the SEC issued pursuant to said Acts. In
addition, where the effect of a requirement of the 1940 Act or the Advisers
Act reflected in any provision of the Agreement is revised by rule,
regulation or order of the SEC, such provision shall be deemed to
incorporate the effect of such rule, regulation or order. Subject to the
foregoing, this Agreement shall be governed by and construed in accordance
with the laws (without reference to conflicts of law provisions) of the
State of Texas.
20. LICENSE AGREEMENT. The Trust shall have the non-exclusive right to
use the name "Invesco" to designate any current or future series of shares
only so long as Invesco Advisers, Inc. serves as investment manager or
adviser to the Trust with respect to such series of shares.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate by their respective officers on the day and year first
written above.
INVESCO VALUE MUNICIPAL SECURITIES
Attest:
/s/ Xxxxx X. Xxxxxxxx By: /s/ Xxxx X. Xxxx
------------------------------------- -------------------------------------
ASSISTANT SECRETARY Name: Xxxx X. Xxxx
(SEAL) Title: Senior Vice President
Attest: INVESCO ADVISERS, INC.
/s/ Xxxxx X. Xxxxxxxx By: /s/ Xxxx X. Xxxx
------------------------------------- -------------------------------------
ASSISTANT SECRETARY Name: Xxxx X. Xxxx
(SEAL) Title: Senior Vice President
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APPENDIX I
COMPENSATION TO THE ADVISER
The Trust shall pay the Adviser, out of its assets, as full compensation for
all services rendered, an advisory fee for the Trust set forth below.
FUND ANNUAL RATE
---- -------------------------------------
Invesco Value Municipal Securities 0.27% as a percentage of average
weekly net assets
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SUB-ITEM 77Q1(e)
AMENDMENT NO. 2
TO
INVESTMENT ADVISORY AGREEMENT
THIS Amendment dated September 25, 2012, amends the Investment Advisory
Agreement (the "Agreement") dated June 1, 2010, by and between the registered
investment companies as set forth on Appendix I (each, a "Fund" and
collectively, the "Funds"), as the same may be amended from time to time, and
Invesco Advisers, Inc., a Delaware corporation (the "Adviser").
RECITALS
WHEREAS, the parties agree to amend the Agreement to (i) remove Invesco
California Municipal Income Trust, Invesco California Municipal Securities,
Invesco California Quality Municipal Securities, Invesco Municipal Income
Opportunities Trust, Invesco Municipal Income Opportunities Trust II, Invesco
Municipal Income Opportunities Trust III and Invesco New York Quality Municipal
Securities, all of which were redomesticated in the State of Delaware on
August 27, 2012; and (ii) increase the advisory fee payable by Invesco Quality
Municipal Income Trust and Invesco Value Municipal Income Trust, as approved by
shareholders on September 25, 2012;
NOW THEREFORE, the parties agree as follows:
1. Appendix I and II are deleted in their entirety and replaced with the
following:
"APPENDIX I
FUNDS AND EFFECTIVE DATES
ALL OF THE FUNDS REFERENCED BELOW ARE ORGANIZED AS MASSACHUSETTS BUSINESS
TRUSTS.
NAME OF FUND EFFECTIVE DATE OF ADVISORY AGREEMENT
------------ ------------------------------------
Invesco Value Municipal Bond Trust June 1, 2010
Invesco Value Municipal Income Trust June 1, 2010
Invesco Value Municipal Securities June 1, 2010
Invesco Value Municipal Trust June 1, 2010
Invesco Municipal Premium Income Trust June 1, 2010
Invesco Quality Municipal Income Trust June 1, 2010
Invesco Quality Municipal Investment Trust June 1, 2010
Invesco Quality Municipal Securities June 1, 2010
APPENDIX II
COMPENSATION TO THE ADVISER
EACH FUND SHALL PAY THE ADVISER, OUT OF THE ASSETS OF THE FUND, AS FULL
COMPENSATION FOR ALL SERVICES RENDERED, AN ADVISORY FEE FOR SUCH FUND SET
FORTH BELOW.
FUND ANNUAL RATE
---- -----------------------------------------------------
Invesco Value Municipal Bond Trust 0.27% as a percentage of average weekly net assets*
Invesco Value Municipal Income Trust 0.55% as a percentage of average weekly net assets**
Invesco Value Municipal Securities 0.27% as a percentage of average weekly net assets
Invesco Value Municipal Trust 0.27% as a percentage of average weekly net assets*
Invesco Municipal Premium Income Trust 0.40% as a percentage of average weekly net assets*
Invesco Quality Municipal Income Trust 0.55% as a percentage of average weekly net assets**
Invesco Quality Municipal Investment Trust 0.27% as a percentage of average weekly net assets*
Invesco Quality Municipal Securities 0.27% as a percentage of average weekly net assets*"
--------
* For the purpose of calculating the advisory fee, the liquidation preference
of any Preferred Shares issued by the Fund will not be deducted from the
Fund's total assets. In addition, an amount up to the aggregate amount of
any other borrowings may be included in the Fund's advisory fee calculation.
** Each of the Funds calculates its advisory fee as a percentage of its managed
assets, which for this purpose means the Trust's net assets, plus assets
attributable to outstanding preferred shares and the amount of any
borrowings incurred for the purpose of leverage (whether or not such
borrowed amounts are reflected in the Fund's financial statements for
purposes of generally accepted accounting principles)."
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate by their respective officers on the day and year first
written above.
ON BEHALF OF EACH FUND LISTED IN APPENDIX I
Attest:
/s/ Xxxxx Xxxxxxxx By: /s/ Xxxx X. Xxxx
------------------------------------- -----------------------------------------
ASSISTANT SECRETARY Name: Xxxx X. Xxxx
(SEAL) Title: Senior Vice President
Attest: INVESCO ADVISERS, INC.
/s/ Xxxxx Xxxxxxxx By: /s/ Xxxx X. Xxxx
------------------------------------- -----------------------------------------
ASSISTANT SECRETARY Name: Xxxx X. Xxxx
(SEAL) Title: Senior Vice President
3
Sub-Item 77Q1(e)
MASTER INTERGROUP SUB-ADVISORY CONTRACT
This contract is made as of October 15, 2012, by and among Invesco Advisers,
Inc. (the "Adviser") and each of Invesco Canada Ltd.; Invesco Asset Management
Deutschland GmbH; Invesco Asset Management Limited; Invesco Asset Management
(Japan) Limited; Invesco Australia Limited; Invesco Hong Kong Limited; Invesco
Senior Secured Management, Inc., (each a "Sub-Adviser" and, collectively, the
"Sub-Advisers").
WHEREAS:
A) The Adviser has entered into an investment advisory agreement with
Invesco Value Municipal Securities (the "Trust"), a closed-end management
investment company registered under the Investment Company Act of 1940, as
amended (the "1940 Act");
B) The Adviser is authorized to delegate certain, any or all of its
rights, duties and obligations under investment advisory agreements to
sub-advisers, including sub-advisers that are affiliated with the Adviser;
C) Each Sub-Adviser represents that it is registered with the
U.S. Securities and Exchange Commission ("SEC") as an investment adviser
under the Investment Advisers Act of 1940 ("Advisers Act"), or will be so
registered prior to providing any services to any of the Funds under this
Contract, and engages in the business of acting as an investment adviser; and
D) The Sub-Advisers and their affiliates have personnel in various
locations throughout the world and have been formed in part for the purpose
of researching and compiling information and recommendations on the
economies of various countries and securities of issuers located in such
countries or on various types of investments and investment techniques, and
providing investment advisory services in connection therewith.
NOW THEREFORE, in consideration of the promises and the mutual covenants
herein contained, it is agreed between the parties hereto as follows:
1. APPOINTMENT. The Adviser hereby appoints each Sub-Adviser as a
sub-adviser of the Trust for the period and on the terms set forth herein.
Each Sub-Adviser accepts such appointment and agrees to render the services
herein set forth, for the compensation herein provided.
2. DUTIES AS SUB-ADVISER. Subject to paragraph 7 below, the Adviser may,
in its discretion, appoint each Sub-Adviser to perform one or more of the
following services with respect to all or a portion of the investments of
the Trust. The services and the portion of the investments of the Trust to
be advised or managed by each Sub-Adviser shall be as agreed upon from time
to time by the Adviser and the Sub-Advisers. Each Sub-Adviser shall pay the
salaries and fees of all personnel of such Sub-Adviser performing services
for the Trust related to research, statistical and investment activities.
(a) INVESTMENT ADVICE. If and to the extent requested by the Adviser,
each Sub-Adviser shall provide investment advice to the Trust and the
Adviser with respect to all or a portion of the investments of the Trust or
with respect to various investment techniques, and in connection with such
advice shall furnish the Trust and the Adviser with such factual
information, research reports and investment recommendations as the Adviser
may reasonably require.
(b) ORDER EXECUTION. If and to the extent requested by the Adviser, each
Sub-Adviser shall place orders for the purchase and sale of portfolio
securities or other investments for the Trust. In so doing, each Sub-Adviser
agrees that it shall comply with paragraph 3 below.
(c) DISCRETIONARY INVESTMENT MANAGEMENT. If and to the extent requested
by the Adviser, each Sub-Adviser shall, subject to the supervision of the
Trust's Board of Trustees (the "Board") and the Adviser, manage all or a
portion of the investments of the Trust in accordance with the investment
objectives, policies and limitations provided in the Trust's Registration
Statement and such other limitations as the Trust or the Adviser may impose
with respect to the Trust by notice to the applicable Sub-Adviser(s) and
otherwise in accordance with paragraph 5 below. With respect to the portion
of the investments of the Trust under its management, each Sub-Adviser is
authorized to: (i) make investment decisions on behalf of the Trust with
regard to any stock, bond, other security or investment instrument,
including but not limited to foreign currencies, futures, options and other
derivatives, and with regard to borrowing money; (ii) place orders for the
purchase and sale of securities or other investment instruments with such
brokers and dealers as the Sub-Adviser may select; and (iii) upon the
request of the Adviser, provide additional investment management services to
the Trust, including but not limited to managing the Trust's cash and cash
equivalents and lending securities on behalf of the Trust. In selecting
brokers or dealers to execute trades for the Trust, each Sub-Adviser will
comply with its written policies and procedures regarding brokerage and
trading, which policies and procedures shall have been approved by the
Board. All discretionary investment management and any other activities of
each Sub-Adviser shall at all times be subject to the control and direction
of the Adviser and the Board.
3. BROKER-DEALER RELATIONSHIPS. Each Sub-Adviser agrees that, in placing
orders with brokers and dealers, it will attempt to obtain the best net
result in terms of price and execution. Consistent with this obligation,
each Sub-Adviser may, in its discretion, purchase and sell portfolio
securities from and to brokers and dealers who sell shares of the Trust or
provide the Trust, the Adviser's other clients, or a Sub-Adviser's other
clients with research, analysis, advice and similar services. Each
Sub-Adviser may pay to brokers and dealers, in return for such research and
analysis, a higher commission or spread than may be charged by other brokers
and dealers, subject to such Sub-Adviser determining in good faith that such
commission or spread is reasonable in terms either of the particular
transaction or of the overall responsibility of the Adviser and such
Sub-Adviser to the Trust and their other clients and that the total
commissions or spreads paid by the Trust will be reasonable in relation to
the benefits to the Trust over the long term. In no instance will portfolio
securities be purchased from or sold to a Sub-Adviser, or any affiliated
person thereof, except in accordance with the applicable securities laws and
the rules and regulations thereunder and any exemptive orders currently in
effect. Whenever a Sub-Adviser simultaneously places orders to purchase or
sell the same security on behalf of the Trust and one or more other accounts
advised by such Sub-Adviser, such orders will be allocated as to price and
amount among all such accounts in a manner believed to be equitable to each
account.
4. BOOKS AND RECORDS. Each Sub-Adviser will maintain all required books
and records with respect to the securities transactions of the Trust, and
will furnish the Board and the Adviser with such periodic and special
reports as the Board or the Adviser reasonably may request. Each Sub-Adviser
hereby agrees that all records which it maintains for the Adviser are the
property of the Adviser, and agrees to preserve for the periods prescribed
by applicable law any records which it maintains for the Adviser and which
are required
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to be maintained, and further agrees to surrender promptly to the Adviser
any records which it maintains for the Adviser upon request by the Adviser.
5. FURTHER DUTIES.
(a) In all matters relating to the performance of this Contract, each
Sub-Adviser will act in conformity with the Agreement and Declaration of
Trust, By-Laws and Registration Statement of the Trust and with the
instructions and directions of the Adviser and the Board and will comply
with the requirements of the 1940 Act, the rules, regulations, exemptive
orders and no-action positions thereunder, and all other applicable laws and
regulations.
(b) Each Sub-Adviser shall maintain compliance procedures for the Trust
that it and the Adviser reasonably believe are adequate to ensure compliance
with the federal securities laws (as defined in Rule 38a-1 under the 0000
Xxx) and the investment objective(s) and policies as stated in the Trust's
prospectuses and statements of additional information. Each Sub-Adviser at
its expense will provide the Adviser or the Fund's Chief Compliance Officer
with such compliance reports relating to its duties under this Contract as
may be requested from time to time. Notwithstanding the foregoing, each
Sub-Adviser will promptly report to the Adviser any material violations of
the federal securities laws (as defined in Rule 38a-1 under the 0000 Xxx)
that it is or should be aware of or of any material violation of the
Sub-Adviser's compliance policies and procedures that pertain to the Trust.
(c) Each Sub-Adviser at its expense will make available to the Board and
the Adviser at reasonable times its portfolio managers and other appropriate
personnel, either in person or, at the mutual convenience of the Adviser and
the Sub-Adviser, by telephone, in order to review the investment policies,
performance and other investment related information regarding the Trust and
to consult with the Board and the Adviser regarding the Trust's investment
affairs, including economic, statistical and investment matters related to
the Sub-Adviser's duties hereunder, and will provide periodic reports to the
Adviser relating to the investment strategies it employs. Each Sub-Adviser
and its personnel shall also cooperate fully with counsel and auditors for,
and the Chief Compliance Officer of, the Adviser and the Trust.
(d) Each Sub-Adviser will assist in the fair valuation of portfolio
securities held by the Trust. The Sub-Adviser will use its reasonable
efforts to provide, based upon its own expertise, and to arrange with
parties independent of the Sub-Adviser such as broker-dealers for the
provision of, valuation information or prices for securities for which
prices are deemed by the Adviser or the Trust's administrator not to be
readily available in the ordinary course of business from an automated
pricing service. In addition, each Sub-Adviser will assist the Trust and its
agents in determining whether prices obtained for valuation purposes
accurately reflect market price information relating to the assets of the
Trust at such times as the Adviser shall reasonably request, including but
not limited to, the hours after the close of a securities market and prior
to the daily determination of the Trust's net asset value per share.
(e) Each Sub-Adviser represents and warrants that it has adopted a code
of ethics meeting the requirements of Rule 17j-1 under the 1940 Act and the
requirements of Rule 204A-1 under the Advisers Act and has provided the
Adviser and the Board a copy of such code of ethics, together with evidence
of its adoption, and will promptly provide copies of any changes thereto,
together with evidence of their adoption. Upon request of the Adviser, but
in any event no less frequently than annually, each Sub-Adviser will supply
the Adviser a written report that (A) describes any issues arising under the
code
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of ethics or procedures since the Sub-Adviser's last report, including but
not limited to material violations of the code of ethics or procedures and
sanctions imposed in response to the material violations; and (B) certifies
that the procedures contained in the Sub-Adviser's code of ethics are
reasonably designed to prevent "access persons" from violating the code of
ethics.
(f) Upon request of the Adviser, each Sub-Adviser will review draft
reports to shareholders and other documents provided or available to it and
provide comments on a timely basis. In addition, each Sub-Adviser and each
officer and portfolio manager thereof designated by the Adviser will provide
on a timely basis such certifications or sub-certifications as the Adviser
may reasonably request in order to support and facilitate certifications
required to be provided by the Trust's Principal Executive Officer and
Principal Financial Officer and will adopt such disclosure controls and
procedures in support of the disclosure controls and procedures adopted by
the Trust as the Adviser, deems are reasonably necessary.
(g) Unless otherwise directed by the Adviser or the Board, each
Sub-Adviser will vote all proxies received in accordance with the Adviser's
proxy voting policy or, if the Sub-Adviser has a proxy voting policy
approved by the Board, the Sub-Adviser's proxy voting policy. Each
Sub-Adviser shall maintain and shall forward to the Trust or its designated
agent such proxy voting information as is necessary for the Trust to timely
file proxy voting results in accordance with Rule 30b1-4 under the 1940 Act.
(h) Each Sub-Adviser shall provide the Trust's custodian on each business
day with information relating to all transactions concerning the assets of
the Trust and shall provide the Adviser with such information upon request
of the Adviser.
6. SERVICES NOT EXCLUSIVE. The services furnished by each Sub-Adviser
hereunder are not to be deemed exclusive and such Sub-Adviser shall be free
to furnish similar services to others so long as its services under this
Contract are not impaired thereby. Nothing in this Contract shall limit or
restrict the right of any director, officer or employee of a Sub-Adviser,
who may also be a Trustee, officer or employee of the Trust, 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.
7. USE OF SUBSIDIARIES AND AFFILIATES. Each Sub-Adviser may perform any
or all of the services contemplated hereunder, including but not limited to
providing investment advice to the Trust pursuant to paragraph 2(a) above
and placing orders for the purchase and sale of portfolio securities or
other investments for the Trust pursuant to paragraph 2(b) above, directly
or through such of its subsidiaries or other affiliates, including each of
the other Sub-Advisers, as such Sub-Adviser shall determine; provided,
however, that performance of such services through such subsidiaries or
other affiliates shall have been approved, when required by the 1940 Act, by
(i) a vote of a majority of the independent Trustees who are not parties to
this Contract or "interested persons" (as defined in the 0000 Xxx) of a
party to this Contract, other than as Board members ("Independent
Trustees"), cast in person at a meeting called for the purpose of voting on
such approval, and/or (ii) a vote of a majority of that Trust's outstanding
voting securities.
8. COMPENSATION.
(a) The only fees payable to the Sub-Advisers under this Contract are for
providing discretionary investment management services pursuant to
paragraph 2(c) above. For such services, the Adviser will pay each
Sub-Adviser a fee, computed daily and paid monthly, equal to (i) 40% of the
monthly compensation that the Adviser receives from the Trust pursuant to
its advisory agreement with the Trust, multiplied by (ii) the fraction
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equal to the net assets of the Trust as to which the Sub-Adviser shall have
provided discretionary investment management services pursuant to
paragraph 2(c) above for that month divided by the net assets of the Trust
for that month. This fee shall be payable on or before the last business day
of the next succeeding calendar month. This fee shall be reduced to reflect
contractual or voluntary fee waivers or expense limitations by the Adviser,
if any, in effect from time to time as set forth in paragraph 9 below. In no
event shall the aggregate monthly fees paid to the Sub-Advisers under this
Contract exceed 40% of the monthly compensation that the Adviser receives
from the Trust pursuant to its advisory agreement with the Trust, as reduced
to reflect contractual or voluntary fee waivers or expense limitations by
the Adviser, if any.
(b) If this Contract becomes effective or terminates before the end of
any month, the fees for the period from the effective date to the end of the
month or from the beginning of such month to the date of termination, as the
case may be, shall be prorated according to the proportion which such period
bears to the full month in which such effectiveness or termination occurs.
(c) If a Sub-Adviser provides the services under paragraph 2(c) above to
the Trust for a period that is less than a full month, the fees for such
period shall be prorated according to the proportion which such period bears
to the applicable full month.
9. FEE WAIVERS AND EXPENSE LIMITATIONS. If, for any fiscal year of the
Trust, the amount of the advisory fee which such Trust would otherwise be
obligated to pay to the Adviser is reduced because of contractual or
voluntary fee waivers or expense limitations by the Adviser, the fee payable
to each Sub-Adviser pursuant to paragraph 8 above shall be reduced
proportionately; and to the extent that the Adviser reimburses the Trust as
a result of such expense limitations, such Sub-Adviser shall reimburse the
Adviser that proportion of such reimbursement payments which the fee payable
to each Sub-Adviser pursuant to paragraph 8 above bears to the advisory fee
payable to the Adviser pursuant to its advisory agreement with the Trust.
10. LIMITATION OF LIABILITY OF SUB-ADVISER AND INDEMNIFICATION. No
Sub-Adviser shall be liable for any costs or liabilities arising from any
error of judgment or mistake of law or any loss suffered by the Trust in
connection with the matters to which this Contract relates except a loss
resulting from willful misfeasance, bad faith or gross negligence on the
part of such Sub-Adviser in the performance by such Sub-Adviser of its
duties or from reckless disregard by such Sub-Adviser of its obligations and
duties under this Contract. Any person, even though also an officer,
partner, employee, or agent of a Sub-Adviser, who may be or become a
Trustee, officer, employee or agent of the Trust, shall be deemed, when
rendering services to the Trust or acting with respect to any business of
the Trust, to be rendering such service to or acting solely for the Trust
and not as an officer, partner, employee, or agent or one under the control
or direction of such Sub-Adviser even though paid by it.
11. DURATION AND TERMINATION.
(a) This Contract shall become effective with respect to each Sub-Adviser
upon the later of the date hereabove written and the date that such
Sub-Adviser is registered with the SEC as an investment adviser under the
Advisers Act, if a Sub-Adviser is not so registered as of the date hereabove
written; provided, however, that this Contract shall not take effect with
respect to the Trust unless it has first been approved (i) by a vote of a
majority of the Independent Trustees, cast in person at a meeting called for
the
5
purpose of voting on such approval, and (ii) by vote of a majority of the
Trust's outstanding voting securities, when required by the 0000 Xxx.
(b) Unless sooner terminated as provided herein, this Contract shall
continue in force and effect until two years after its effective date
determined in 11(a). Thereafter, if not terminated, this Contract shall
continue automatically for successive periods not to exceed twelve months
each, provided that such continuance is specifically approved at least
annually (i) by a vote of a majority of the Trust's Independent Trustees,
cast in person at a meeting called for the purpose of voting on such
approval, and (ii) by the Board or by vote of a majority of the outstanding
voting securities of the Trust.
(c) Notwithstanding the foregoing, with respect to the Trust or any
Sub-Adviser(s), this Contract may be terminated at any time, without the
payment of any penalty, (i) by vote of the Fund's Board or by a vote of a
majority of the outstanding voting securities of the Trust on sixty days'
written notice to such Sub-Adviser(s); or (ii) by the Adviser on sixty days'
written notice to such Sub-Adviser(s); or (iii) by a Sub-Adviser on sixty
days' written notice to the Trust. Should this Contract be terminated with
respect to a Sub-Adviser, the Adviser shall assume the duties and
responsibilities of such Sub-Adviser unless and until the Adviser appoints
another Sub-Adviser to perform such duties and responsibilities. Termination
of this Contract with respect to one or more Sub-Adviser(s) shall not affect
the continued effectiveness of this Contract with respect to any remaining
Sub-Adviser(s). This Contract will automatically terminate in the event of
its assignment.
12. AMENDMENT. No provision of this Contract 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, when required by the 1940 Act, no amendment of
this Contract shall be effective until approved by vote of a majority of the
Trust's outstanding voting securities.
13. NOTICES. Any notices under this Contract shall be in writing,
addressed and delivered, telecopied or mailed postage paid, to the other
party entitled to receipt thereof at such address as such party may
designate for the receipt of such notice. Until further notice to the other
party, it is agreed that the address of the Trust and that of the Adviser
shall be 0000 Xxxxxxxxx Xxxxxx, X.X., Xxxxxxx, Xxxxxxx 00000. Until further
notice to the other party, it is agreed that the address of each Sub-Adviser
shall be set forth in Exhibit I attached hereto.
14. GOVERNING LAW. This Contract shall be construed in accordance with
the laws of the State of Texas and the 1940 Act. To the extent that the
applicable laws of the State of Texas conflict with the applicable
provisions of the 1940 Act, the latter shall control.
15. MULTIPLE SUB-ADVISORY AGREEMENTS. This Contract has been signed by
multiple parties; namely the Adviser, on one hand, and each Sub-Adviser, on
the other. The parties have signed one document for administrative
convenience to avoid a multiplicity of documents. It is understood and
agreed that this document shall constitute a separate sub-advisory agreement
between the Adviser and each Sub-Adviser with respect to the Trust, as if
the Adviser and such Sub-Adviser had executed a separate sub-advisory
agreement naming such Sub-Adviser as a sub-adviser to the Trust. With
respect to any one Sub-Adviser, (i) references in this Contract to "a
Sub-Adviser" or to "each Sub-Adviser" shall be deemed to refer only to such
Sub-Adviser, and (ii) the term "this Contract" shall be construed according
to the foregoing provisions.
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16. MISCELLANEOUS. The captions in this Contract are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. If any
provision of this Contract shall be held or made invalid by a court
decision, statute, rule or otherwise, the remainder of this Contract shall
not be affected thereby. This Contract shall be binding upon and shall inure
to the benefit of the parties hereto and their respective successors. Any
question of interpretation of any term or provision of this Contract having
a counterpart in or otherwise derived from a term or provision of the 1940
Act or the Advisers Act shall be resolved by reference to such term or
provision of the 1940 Act or the Advisers Act and to interpretations
thereof, if any, by the United States Courts or in the absence of any
controlling decision of any such court, by rules, regulations or orders of
the SEC issued pursuant to said Acts. In addition, where the effect of a
requirement of the 1940 Act or the Advisers Act reflected in any provision
of the Contract is revised by rule, regulation or order of the SEC, such
provision shall be deemed to incorporate the effect of such rule, regulation
or order.
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IN WITNESS WHEREOF, the parties hereto have caused this Contract to be
executed by their officers designated as of the day and year first above
written.
INVESCO ADVISERS, INC.
Adviser
BY: /s/ Xxxx X. Xxxx
------------------------------
NAME: Xxxx X. Xxxx
TITLE: Senior Vice President
8
INVESCO ASSET MANAGEMENT DEUTSCHLAND GMBH INVESCO ASSET MANAGEMENT LIMITED
Sub-Adviser Sub-Adviser
By: /s/ Xxxxxxxxx Xxxxxxxxx /s/ Jens Langewand By: /s/ X. X. Xxxxxxxxx
--------------------------------------------- ------------------------------------------
Name: Xxxxxxxxx Xxxxxxxxx Jens Langewand Name: X. X. Xxxxxxxxx
Title: Managing Director Managing Director Title: Director
INVESCO ASSET MANAGEMENT (JAPAN) LIMITED INVESCO AUSTRALIA LIMITED
Sub-Adviser Sub-Adviser
By: /s/ Xxxxxxxx Xxxxxxxx By: /s/ Xxxx Xxxxxxx /s/ Xxxx X'Xxxxx
--------------------------------------------- ------------------------------------------
Name: Xxxxxxxx Xxxxxxxx Name: Xxxx Xxxxxxx Xxxx X'Xxxxx
Title: Managing Director Title: Co Secretary Chief Executive Officer
INVESCO HONG KONG LIMITED INVESCO SENIOR SECURED MANAGEMENT, INC.
Sub-Adviser Sub-Adviser
By: /s/ Xxxxx Xxx /s/ Xxxxxx Xxx By: /s/ Xxxxxxx X. Xxxxx
--------------------------------------------- ------------------------------------------
Name: Xxxxx Xxx Xxxxxx Xxx Name: Xxxxxxx X. Xxxxx
Title: Director Director Title: Secretary & General Counsel
INVESCO CANADA LTD.
Sub-Adviser
By: /s/ Xxxx Xxxxxxx
---------------------------------------------
Name: Xxxx Xxxxxxx
Title: Senior Vice President; Head of Legal-Canada;
CCO; and Secretary
9
EXHIBIT I
ADDRESSES OF SUB-ADVISERS
Invesco Asset Management Deutschland GmbH
Xx xxx Xxxxx 0, 0xx Xxxxx
Xxxxxxxxx, Xxxxxxx 00000
Invesco Asset Management Limited
00 Xxxxxxxx Xxxxxx
Xxxxxx, Xxxxxx Xxxxxxx
XX0X 0XX
ENGLAND
Invesco Asset Management (Japan) Limited
Roppongi Hills Mori Tower 14F
0-00-0 Xxxxxxxx, Xxxxxx-xx, Xxxxx 000-0000
Invesco Australia Limited
000 Xxxxxxx Xxxxxx, Xxxxx 00
Xxxxxxxxx Xxxxxxxx 0000, Xxxxxxxxx
Invesco Hong Kong Limited
32nd Floor
Three Pacific Place
0 Xxxxx'x Xxxx Xxxx
Xxxx Xxxx
Invesco Senior Secured Management, Inc.
1166 Avenue of the Americas, 00xx Xxxxx
Xxx Xxxx, XX 00000
XXX
Xxxxxxx Xxxxxx Ltd.
0000 Xxxxx Xxxxxx
Xxxxx 000
Xxxxxxx, XX, X0X 0X0
10
