ISLAMIA GROUP OF FUNDS
N-1A/A, EX-99.D, 2000-06-21
Previous: ISLAMIA GROUP OF FUNDS, N-1A/A, EX-99.B, 2000-06-21
Next: ISLAMIA GROUP OF FUNDS, N-1A/A, EX-99.E.1, 2000-06-21




                                                                     EXHIBIT (D)
                              MANAGEMENT AGREEMENT


                                     BETWEEN


                             ISLAMIA GROUP OF FUNDS


                                       AND


                             INCOME ACHIEVERS, INC.

         ISLAMIA GROUP OF FUNDS, a Massachusetts business trust registered under
the Investment Company Act of 1940 (the"1940 ACT") as an open-end diversified
management series investment company (the "TRUST"), hereby appoints INCOME
ACHIEVERS, INC., an Illinois corporation registered under the Investment
Advisers Act of 1940 as an investment adviser (the"MANAGER"), to furnish
investment advisory and management services and certain administrative services
with respect to the assets represented by the shares of beneficial interest
issued in each series listed in Schedule A hereto, as such schedule may be
amended from time to time (each such series hereinafter referred to as
the"FUND"). The Trust and the Manager hereby agree that:

                    1. INVESTMENT MANAGEMENT SERVICES. The Manager shall manage
         the investment operations of the Trust and each Fund, subject to the
         terms of this Agreement and to the supervision and control of the
         Trust's Board of Trustees (the"TRUSTEES"). The Manager agrees to
         perform, or arrange for the performance of, the following services with
         respect to each Fund:

                            (a) to obtain and evaluate such information relating
                  to economies, industries, businesses, securities and
                  commodities markets, and individual securities, commodities
                  and indices as it may deem necessary or useful in discharging
                  its responsibilities hereunder;

                            (b) to formulate and maintain a continuous
                  investment program in a manner consistent with and subject to
                  (i) the Trust's Declaration of Trust and By-laws; (ii) the
                  Fund's investment objectives, policies, and restrictions as
                  set forth in written documents furnished by the Trust to the
                  Manager; (iii) all securities, commodities, and tax laws and
                  regulations applicable to the Fund and Trust; and (iv) any
                  other written limits or directions furnished by the Trustees
                  to the Manager;

                            (c) unless otherwise directed by the Trustees, to
                  determine from time to time securities, commodities, interests
                  or other investments to be purchased, sold, retained or lent
                  by the Fund, and to implement those decisions, including the
                  selection of entities with or through which such purchases,
                  sales or loans are to be effected;


<PAGE>


                            (d) to determine if the securities purchased for a
                  Fund are consistent with Islamic principles as applicable
                  pursuant to the Fund's investment objectives, policies and
                  restrictions. In making such a determination, the Manager
                  shall make a good faith effort, using the best publicly
                  available information obtainable by it, to identify those
                  companies and other issuers of securities whose products,
                  services and/or activities are substantially consistent with
                  core Islamic teachings;

                            (e) to use reasonable efforts to manage the Fund so
                  that it will qualify as a regulated investment company under
                  subchapter M of the Internal Revenue Code of 1986, as amended;

                            (f) to make the recommendations as to the manner in
                  which voting rights, rights to consent to the Trust or the
                  Fund, and any other rights pertaining to the Trust or the Fund
                  shall be exercised;

                            (g) to make available to the Trust promptly upon
                  request all of the Fund's records and ledgers and any reports
                  or information reasonably requested by the Trust; and

                            (h) to the extent required by law, to furnish to
                  regulatory authorities any information or reports relating to
                  the services provided pursuant to this Agreement.

                  Except as otherwise instructed from time to time by the
         Trustees, with respect to execution of transactions for the Trust on
         behalf of a Fund, the Manager shall place, or arrange for the placement
         of, all orders for purchases, sales, or loans with issuers, brokers,
         dealers or other counterparts or agents selected by the Manager. In
         connection with the selection of all such parties for the placement of
         all such orders, the Manager shall attempt to obtain most favorable
         execution and price, but may nevertheless in its sole discretion as a
         secondary factor, purchase and sell portfolio securities from and to
         brokers and dealers who provide the Manager with statistical, research
         and other information, analysis, advice, and similar services. In
         recognition of such services or brokerage services provided by a broker
         or dealer, the Manager is hereby authorized to pay such broker or
         dealer a commission or spread in excess of that which might be charged
         by another broker or dealer for the same transaction if the Manager
         determines in good faith that the commission or spread is reasonable in
         relation to the value of the services so provided. The Manager may also
         act as broker to execute trades on behalf of a Fund subject to the
         above policies and applicable federal and state securities laws.

                  The Trust hereby authorizes any entity or person associated
         with the Manager that is a member of a national securities exchange to
         effect any transaction on the exchange for the account of a Fund to the
         extent permitted by and in accordance with Section 11(a) of the
         Securities Exchange Act of 1934 and Rule 11a2-2(T) thereunder. The
         Trust hereby consents to the retention by such entity or person of
         compensation for such transactions in accordance with Rule
         11a-2-2(T)(a)(iv).




                                      -2-
<PAGE>


                  Transactions for each Fund managed by the Manager generally
         will be effected independently. The Manager, however, may, where it
         deems to be advisable, aggregate orders for its other customers
         together with any securities of the same type to be sold or purchased
         for the Trust or one or more Funds in order to obtain best execution or
         lower brokerage commissions. In such event, the Manager shall allocate
         the shares so purchased or sold, as well as the expenses incurred in
         the transaction, in a manner it considers to be equitable and fair and
         consistent with its fiduciary obligations to the Trust, the Funds, and
         the Manager's other customers.

                  The Manager shall for all purposes be deemed to be an
         independent contractor and not an agent of the Trust and shall, unless
         otherwise expressly provided or authorized, have no authority to act
         for or represent the Trust in any way.

                    2. ADMINISTRATIVE SERVICES. Subject to the terms of this
         Agreement and to the supervision and control of the Trustees, the
         Manager shall provide to the Trust facilities, equipment, statistical
         and research data, clerical, accounting and bookkeeping services,
         internal auditing and legal services, and personnel to carry out all
         management services required for operation of the business and affairs
         of the Funds other than those services to be performed by the Trust's
         Distributor pursuant to the Distribution Agreement, those services to
         be performed by the Trust's Custodian pursuant to the Custody
         Agreement, those services to be performed by the Trust's Transfer Agent
         pursuant to the Transfer Agency Agreement, those services to be
         provided by the Trust's administrator pursuant to the Administration
         and Accounting Agreement and those services normally performed by the
         Trust's counsel and auditors.

                    3. USE OF AFFILIATED COMPANIES AND SUBCONTRACTORS. In
         connection with the services to be provided by the Manager under this
         Agreement, the Manager may, to the extent it deems appropriate, and
         subject to compliance with the requirements of applicable laws and
         regulations, make use of (i) its affiliated companies and their
         directors, trustees, officers, and employees and (ii) subcontractors
         selected by the Manager, PROVIDED that the Manager shall supervise and
         remain fully responsible for the services of all such third parties in
         accordance with and to the extent provided by this Agreement. All costs
         and expenses associated with services provided by any such third
         parties shall be borne by the Manager of such parties.

                    4. EXPENSES BORNE BY THE TRUST. Except to the extent
         expressly assumed by the Manager herein or under a separate agreement
         between the Trust and the Manager and except to the extent required by
         law to be paid by the Manager, the Manager shall not be obligated to
         pay any costs or expenses incidental to the organization, operations or
         business of the Trust. Without limitation, such costs and expenses
         shall include but not be limited to:

                            (a) all charges of depositories, custodians and
                  other agencies for the safekeeping and servicing of its cash,
                  securities, and other property;



                                      -3-
<PAGE>


                            (b) all charges for equipment or services used for
                  obtaining price quotations or for communication between the
                  Manager or the Trust and the custodian, transfer agent, any
                  administrator or any other agent selected by the Trust;

                            (c) all charges for and accounting services provided
                  to the Trust by the Manager, or any other provider of such
                  services;

                            (d) all charges for services of the Trust's
                  independent auditors and for services to the Trust by legal
                  counsel;

                            (e) all compensation of the Trustees, other than
                  those affiliated with the Manager, all expenses incurred in
                  connection with their services to the Trust, and all expenses
                  of meetings of the Trustees or committees thereof;

                            (f) all expenses incidental to holding meetings of
                  holders of shares of interest in the Trust ("SHAREHOLDERS"),
                  including printing and of supplying each record-date
                  Shareholder with notice and proxy solicitation material, and
                  all other proxy solicitation expenses;

                            (g) all expenses of printing of annual or more
                  frequent revisions of the Trust prospectus(es) and of
                  supplying each then-existing Shareholder with a copy of a
                  revised prospectus;

                            (h) all expenses related to preparing and
                  transmitting certificates (if any) representing the Trust
                  shares;

                            (i) all expenses of bond and insurance coverage
                  required by law or deemed advisable by the Board of Trustees;

                            (j) all brokers' commissions and other normal
                  charges incident to the purchase, sale, or lending of
                  portfolio securities;

                            (k) all taxes and governmental fees payable to
                  Federal, state or other governmental agencies, domestic or
                  foreign, including all stamp or other transfer taxes;

                            (l) all expenses of registering and maintaining the
                  registration of the Trust under the 1940 Act and, to the
                  extent no exemption is available, expenses of registering the
                  Trust's shares under the Securities Act of 1933, of qualifying
                  and maintaining qualification of the Trust and of the Trust's
                  shares for sale under securities laws of various states or
                  other jurisdictions and of registration and qualification of
                  the Trust under all other laws applicable to the Trust or its
                  business activities;



                                      -4-
<PAGE>


                            (m) all interest on indebtedness, if any, incurred
                  by the Trust or a Fund; and

                            (n) all fees, dues and other expenses incurred by
                  the Trust in connection with membership of the Trust in any
                  trade association or other investment company organization.

                    5. ALLOCATION OF EXPENSES BORNE BY THE TRUST. Any expenses
         borne by the Trust that are attributable solely to the organization,
         operation or business of a Fund shall be paid solely out of Fund
         assets. Any expense borne by the Trust which is not solely attributable
         to a Fund, nor solely to any other series of shares of the Trust, shall
         be apportioned in such manner as the Manager determines is fair and
         appropriate, or as otherwise specified by the Board of Trustees.

                    6. EXPENSES BORNE BY THE MANAGER. The Manager at its own
         expense shall furnish all executive and other personnel, office space,
         and office facilities required to render the investment management and
         administrative services set forth in this Agreement.

                  In the event that the Manager pays or assumes any expenses of
         the Trust or a Fund not required to be paid or assumed by the Manager
         under this Agreement, the Manager shall not be obligated hereby to pay
         or assume the same or similar expense in the future; PROVIDED that
         nothing contained herein shall be deemed to relieve the Manager of any
         obligation to the Trust or a Fund under any separate agreement or
         arrangement between the parties.

                    7. MANAGEMENT FEE. For the services rendered, facilities
         provided, and charges assumed and paid by the Manager hereunder, the
         Trust shall pay to the Manager out of the assets of each Fund fees at
         the annual rate for such Fund as set forth in Schedule B to this
         Agreement. For each Fund, the management fee shall accrue on each
         calendar day, and shall be payable monthly on the first business day of
         the next succeeding calendar month. The daily fee accrual shall be
         computed by multiplying the fraction of one divided by the number of
         days in the calendar year by the applicable annual rate of fee, and
         multiplying this product by the net assets of the Fund, determined in
         the manner established by the Board of Trustees, as of the close of
         business on the last preceding business day on which the Fund's net
         asset value was determined.

                    8. RETENTION OF SUB-ADVISER. Subject to obtaining the
         initial and periodic approvals required under Section 15 of the 1940
         Act, the Manager may retain one or more sub-advisers at the Manager's
         own cost and expense for the purpose of furnishing one or more of the
         services described in Section 1 hereof with respect to the Trust or one
         or more Funds. Retention of a sub-adviser shall in no way reduce the
         responsibilities or obligations of the Manager under this Agreement,
         and the Manager shall be responsible to the Trust and its Funds for all
         acts or omissions of any sub-adviser in connection with the performance
         of the Manager's duties hereunder.



                                      -5-
<PAGE>


                    9. NON-EXCLUSIVITY. The services of the Manager to the Trust
         hereunder are not to be deemed exclusive and the Manager shall be free
         to render similar services to others.

                   10. STANDARD OF CARE. The Manager shall not be liable for any
         loss sustained by reason of the purchase, sale or retention of any
         security, whether or not such purchase, sale or retention shall have
         been based upon the investigation and research made by any other
         individual, firm or corporation, if such recommendation shall have been
         selected with due care and in good faith, except loss resulting from
         willful misfeasance, bad faith, or gross negligence on the part of the
         Manager in the performance of its obligations and duties, or by reason
         of its reckless disregard of its obligations and duties under this
         Agreement.

                   11. AMENDMENT. Except to add or delete Funds from Schedule A,
         this Agreement may not be amended as to the Trust or any Fund without
         the affirmative votes (a) of a majority of the Board of Trustees,
         including a majority of those Trustees who are not "interested persons"
         of the Trust or of the Manager, voting in person at a meeting called
         for the purpose of voting on such approval, and (b) of a "majority of
         the outstanding shares" of the Trust or, with respect to any amendment
         affecting an individual Fund, a "majority of the outstanding shares" of
         that Fund. The terms "interested persons" and "vote of a majority of
         the outstanding shares" shall be construed in accordance with their
         respective definitions in the 1940 Act and, with respect to the latter
         term, in accordance with Rule 18f-2 under the 1940 Act.

                   12. EFFECTIVE DATE AND TERMINATION. This Agreement shall
         become effective as to any Fund as of the effective date for that Fund
         specified in Schedule A hereto. This Agreement may be terminated at any
         time, without payment of any penalty, as to any Fund by the Board of
         Trustees of the Trust, or by a vote of a majority of the outstanding
         shares of that Fund, upon at least sixty (60) days' written notice to
         the Manager. This Agreement may be terminated by the Manager at any
         time upon at least sixty (60) days' written notice to the Trust. This
         Agreement shall terminate automatically in the event of its
         "assignment" (as defined in the 1940 Act). Unless terminated as
         provided above, this Agreement shall continue in effect with respect to
         any Fund until the end of the initial term applicable to that Fund
         specified in Schedule A and thereafter from year to year only so long
         as such continuance is specifically approved with respect to that Fund
         at least annually (a) by a majority of those Trustees who are not
         interested persons of the Trust or of the Manager, voting in person at
         a meeting called for the purpose of voting on such approval, and (b) by
         either the Board of Trustees of the Trust or by a "vote of a majority
         of the outstanding shares" of the Fund.

                   13. OWNERSHIP OF RECORDS; INTERPARTY REPORTING. All records
         required to be maintained and preserved by the Trust pursuant to the
         provisions of rules or regulations of the Securities and Exchange
         Commission under Section 31(a) of the 1940 Act or other applicable laws
         or regulations which are maintained and preserved by the Manager on
         behalf of the Trust and any other records the parties mutually agree
         shall be maintained by the Manager on behalf of the Trust, are the
         property of the Trust and shall be surrendered by the Manager promptly
         on request by the Trust; PROVIDED that the Manager may at its own
         expense make and retain copies of any such records.



                                      -6-
<PAGE>


                  The Trust shall furnish or otherwise make available to the
         Manager such copies of the financial statements, proxy statements,
         reports, and other information relating to the business and affairs of
         each Fund as the Manager may, at any time or from time to time,
         reasonably require in order to discharge its obligations under this
         Agreement.

                  The Manager shall prepare and furnish to the Trust as to each
         Fund statistical data and other information in such form and at such
         intervals as the Trust may reasonably request.

                   14. NON-LIABILITY OF TRUSTEES AND SHAREHOLDERS. Any
         obligation of the Trust hereunder shall be binding only upon the assets
         of the Trust (or the applicable Fund thereof) and shall not be binding
         upon any Trustee, officer, employee, agent or shareholder of the Trust.
         Neither the authorization of any action by the Trustees or shareholders
         of the Trust nor the execution of this Agreement on behalf of the Trust
         shall impose any liability upon any Trustee or any shareholder. The
         Trust's Declaration of Trust is on file with the State of Masachusetts.

                   15. REFERENCES AND HEADINGS. In this Agreement and in any
         such amendment, references to this Agreement and all expressions such
         as "herein," "hereof," and "hereunder'" shall be deemed to refer to
         this Agreement as amended or affected by any such amendments. Headings
         are placed herein for convenience of reference only and shall not be
         taken as a part hereof or control or affect the meaning, construction,
         or effect of this Agreement. This Agreement may be executed in any
         number of counterparts, each of which shall be deemed an original.



                                      -7-
<PAGE>


Dated: June 1, 2000

                                                   ISLAMIA GROUP OF FUNDS





                                                   By  /S/ Q.A. KHAN
                                                       -------------
ATTEST



By  /S/ SABINA ABDUL QADIR
    ----------------------

                                                   INCOME ACHIEVERS, INC.



                                                   By  /S/ Q.A. KHAN
                                                       -------------

ATTEST



By  /S/ SABINA ABDUL QADIR
    ----------------------





                                      -8-
<PAGE>



[GRAPHIC OMITTED]

                             ISLAMIA GROUP OF FUNDS


                                   SCHEDULE A

         The Funds of the Trust currently subject to this Agreement and the
effective date of each are as follows:

        FUND                   EFFECTIVE DATE              INITIAL TERM

Islamia Income Fund             June 1, 2000              June 1, 2000 to
                                                          June 1, 2002








                                      -9-
<PAGE>




                             ISLAMIA GROUP OF FUNDS

                              MANAGEMENT AGREEMENT


                                   SCHEDULE B

         Compensation pursuant to Section 7 of this Agreement shall be
calculated with respect to each Fund in accordance with the following rate: .80
of 1% of the average daily net assets of the Fund annually.








                                      -10-
<PAGE>


© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission