EXHIBIT NO. EX-99.d.1.n
DFA INVESTMENT DIMENSIONS GROUP INC.
DFA SHORT-TERM MUNICIPAL BOND PORTFOLIO
INVESTMENT ADVISORY AGREEMENT
AGREEMENT made this 30th day of July, 2002, by and between DFA INVESTMENT
DIMENSIONS GROUP INC., a Maryland corporation (the "Fund") and DIMENSIONAL FUND
ADVISORS INC., a Delaware corporation (the "Advisor").
1. DUTIES OF ADVISOR. The Fund hereby employs the Advisor to manage the
investment and reinvestment of the assets of:
DFA SHORT-TERM MUNICIPAL BOND PORTFOLIO
(the "Portfolio"), to continuously review, supervise and administer the
Portfolio's investment program, to determine in its discretion the securities to
be purchased or sold and the portion of the Portfolio's assets to be uninvested,
to provide the Fund with records concerning the Advisor's activities which the
Fund is required to maintain, and to render regular reports to the Fund's
officers and the Board of Directors of the Fund, all in compliance with the
objectives, policies and limitations set forth in the Portfolio's prospectus and
applicable laws and regulations. The Advisor accepts such employment and agrees
to provide, at its own expense, the office space, furnishings and equipment and
the personnel required by it to perform the services described herein on the
terms and for the compensation provided herein.
2. PORTFOLIO TRANSACTIONS. The Advisor 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 effort to obtain
the best available prices and most favorable executions, except as prescribed
herein. It is understood that the Advisor will not be deemed to have acted
unlawfully, or to have breached a fiduciary duty to the Fund or to the
Portfolio, or be in breach of any obligation owing to the Fund or to the
Portfolio under this Agreement, or otherwise, solely by reason of its having
caused the Portfolio to pay a member of a securities exchange, a broker or a
dealer a commission for effecting a securities transaction for the Portfolio in
excess of the amount of commission another member of an exchange, broker or
dealer would have charged if the Advisor determines in good faith that the
commission paid was reasonable in relation to the brokerage or research services
provided by such member, broker or dealer, viewed in terms of that particular
transaction or the Advisor's overall responsibilities with respect to its
accounts, including the Fund, as to which it exercises investment discretion.
The Advisor will promptly communicate to the officers and directors of the Fund
such information relating to transactions for the Portfolio as they may
reasonably request.
3. COMPENSATION OF THE ADVISOR. For the services to be rendered by the
Advisor as provided in Section 1 of this Agreement, the Fund shall pay to the
Advisor, at the end of each month, a fee equal to one-twelfth of 0.20% of the
Portfolio's net assets. In the event that this Agreement is terminated at other
than a month-end, the fee for such month shall be prorated, as applicable.
4. OTHER SERVICES. At the request of the Fund, the Advisor, in its
discretion, may make available to the Fund office facilities, equipment,
personnel and other services. Such office facilities, equipment, personnel and
services shall be provided for or rendered by the Advisor and billed to the Fund
at the Advisor's cost and, where applicable, the cost thereof shall be
apportioned among the several Portfolios of the Fund proportionate to their
respective utilization thereof.
5. REPORTS. The Fund and the Advisor agree to furnish to each other
information with regard to their respective affairs as each may reasonably
request.
6. STATUS OF THE ADVISOR. The services of the Advisor to the Fund or with
respect to the Portfolio, are not to be deemed exclusive, and the Advisor shall
be free to render similar services to others as long as its services to the Fund
or to the Portfolio, are not impaired thereby. The Advisor 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.
7. LIABILITY OF ADVISOR. No provision of this Agreement shall be deemed
to protect the Advisor against any liability to the Fund or the shareholders of
the Portfolio to which it might otherwise be subject by reason of willful
misfeasance, bad faith or gross negligence in the performance of its duties or
the reckless disregard of its obligations under this Agreement.
8. PERMISSIBLE INTERESTS. Subject to and in accordance with the charters
of the Fund and the Advisor, respectively, directors, officers, and shareholders
of the Fund are or may be interested in the Advisor (or any successor thereof)
as directors, officers or shareholders, or otherwise; directors, officers,
agents and shareholders of the Advisor are or may be interested in the Fund as
directors, officers, shareholders or otherwise; and the Advisor (or any
successor) is or may be interested in the Fund as a shareholder or otherwise and
the effect of any such interrelationships shall be governed by said charters and
the provisions of the Investment Company Act of 1940, as amended (the "1940
Act").
9. DURATION AND TERMINATION. This Agreement shall become effective on
July 30, 2002 (the "Effective Date") and shall continue in effect until July 30,
2004, and thereafter, only if such continuance is approved at least annually by
a vote of the Fund's Board of Directors, including the vote of a majority of the
directors who are not parties to this Agreement or interested persons of any
such party, cast in person, at a meeting called for the purpose of voting such
approval. In addition, the question of continuance of this
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Agreement may be presented to the shareholders of the Fund; in such event, such
continuance shall be effected only if approved by the affirmative vote of the
holders of a majority of the respective outstanding voting securities of the
Portfolio.
This Agreement may at any time be terminated without payment of any penalty
either by vote of the Board of Directors of the Fund or by vote of the holders
of a majority of the respective outstanding voting securities of the Portfolio,
on sixty days written notice to the Advisor.
This Agreement shall automatically terminate in the event of its
assignment.
This Agreement may be terminated by the Advisor after ninety days written
notice to the Fund.
Any notice under this Agreement shall be given in writing, addressed and
delivered, or mailed postpaid, to the other party at any office of such party.
As used in this section, the terms "assignment," "interested persons," and
a "vote of the holders of majority of the outstanding securities" shall have the
respective meanings set forth in Section 2(a)(4), Section 2(a)(19), Section
2(a)(42) of the 1940 Act and Rule 18f-2 thereunder.
10. SEVERABILITY. 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.
IN WITNESS WHEREOF, the parties hereby have caused this Agreement to be
executed this 30th day of July, 2002.
DIMENSIONAL FUND DFA INVESTMENT
ADVISORS INC. DIMENSIONS GROUP INC.
By: /s/ Xxxxxxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxxxx X. Xxxxxx Xxxxxxx X. Xxxxxxxx
Vice President and Secretary Vice President, Chief
Financial Officer and Treasurer
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