File No. 2-84012
811-3752
Rule 14(c)-5
July 6, 1998
VIA EDGAR
Filing Desk Stop 1-4
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, DC 20549-1004
Re: The Managers Funds
(File Nos. 2-84012 and 811-3752)
Preliminary Information Statement
---------------------------------------
Commissioners:
On behalf of The Managers Funds, a Massachusetts business
trust (the "Trust") registered as an open-end management
investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"), enclosed for filing in accordance with
Rule 14(c)-5 under the Securities Exchange Act of 1934, as
amended (the "1934 Act"), is a preliminary information statement
prepared for Managers Emerging Markets Equity Fund (the "Fund"),
a series of the Trust. This information statement has been
prepared in accordance with a Securities and Exchange Commission
exemptive order received by the Trust (Investment Company Release
No. 21412, Oct. 11, 1995) which permits the Trust's manager to
hire new sub-advisers or to make changes to existing sub-advisory
agreements with the approval of the Trustees of the Trust, but
without shareholder approval. Enclosed please find an
information statement and cover letter for the Fund.
The information statement describes a new sub-advisory
agreement between The Managers Funds, L.P., the investment
manager for the Trust, and one of the sub-advisers for the Fund.
The new agreement was necessary due to a material change in the
Fund's sub-adviser which resulted in an "assignment" of the
previous agreement.
No filing fees are included in connection with this filing.
The Trust intends to mail definitive copies of this
information statement on or about July 16, 1998. Please direct
questions or comments regarding this filing to Judith L.
Shandling, Esquire of Shereff, Friedman, Hoffman & Goodman, LLP
at (212) 891-9459.
Sincerely,
/s/Donald S. Rumery
Donald S. Rumery
Secretary
cc: Judith L. Shandling, Esq.
<PAGE>
SCHEDULE 14C INFORMATION
Information Statement Pursuant to Section 14(c) of the Securities
Exchange Act of 1934
(Amendment No. )
Check the appropriate box:
[ X ] Preliminary Information Statement
[ ] Confidential, for Use of the Commission Only (as
permitted by Rule 14c-5(d)(2))
[ ] Definitive Information Statement
_____________The Managers Funds_________________
(Name of Registrant as Specified In Its Charter)
Payment of Filing Fee (Check the appropriate box):
[ X ] No Fee Required.
[ ] Fee computed on table below per Exchange Act
Rules 14c-5(g) and 0-11.
1) Title of each class of securities to which
transaction applies:
___________________________________________________
2) Aggregate number of securities to which transaction
applies:
___________________________________________________
3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (Set
forth the amount on which the filing fee is calculated
and state how it was determined):
___________________________________________________
4) Proposed maximum aggregate value of transaction:
___________________________________________________
5) Total fee paid:
___________________________________________________
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for which
the offsetting fee was paid previously. Identify the previous
filing by registration statement number, or the Form or Schedule
and the date of its filing.
1) Amount Previously Paid:
___________________________________________________
2) Form, Schedule or Registration Statement No.:
___________________________________________________
3) Filing Party:
___________________________________________________
4) Date Filed:
___________________________________________________
<PAGE>
July, 1998
Dear Shareholder of Managers Emerging Markets Equity Fund:
The enclosed information statement details a recent change in one
of the sub-advisers of Managers Emerging Markets Equity Fund. On
May 5, 1998, King Street Advisers, Limited was granted SEC
registration. The existing Sub-Advisory Agreement with State
Street Global Advisor, United Kingdom, Limited was "canceled" as
a result of this approval and a new Agreement had to be effected
with the new entity, King Street Advisors, Limited. Under
federal securities regulations, this transaction represents a
"change in control" requiring the approval of the new sub-
advisory agreement by the Trustees of The Managers Funds. The
Board of Trustees approved the new agreement at a meeting on June
8, 1998.
This change in the sub-advisor is not expected to impact either
the investment process or the day-to-day operations of King
Street Advisors, Limited. Furthermore, there have been no
changes in the senior investment personnel responsible for
managing Managers Emerging Markets Equity Fund as a result, as
they have transferred from State Street Global Advisors, United
Kingdom, Limited.
As a matter of regulatory compliance, we send you this
information statement which describes the management structure of
the Fund, and the details of the new entity, King Street
Advisors, Limited, as well as the terms of the sub-advisory
agreement which your Trustees have approved.
Please feel free to call us at (800) 835-3879 should you have any
questions on the enclosed information statement. We thank you
for your continued interest in The Managers Funds.
Sincerely,
/s/Robert P. Watson
Robert P. Watson
President
<PAGE>
PRELIMINARY COPY
THE MANAGERS FUNDS
MANAGERS EMERGING MARKETS EQUITY FUND
40 RICHARDS AVENUE
NORWALK, CONNECTICUT 06854
____________________________
INFORMATION STATEMENT
____________________________
This information statement is being provided to the
shareholders of Managers Emerging Markets Equity Fund in lieu of
a proxy statement, pursuant to the terms of an exemptive order
the Trust has received from the Securities and Exchange
Commission which permits the Trust's manager to hire new sub-
advisers and to make changes to existing sub-advisory contracts
with the approval of the Trustees, but without obtaining
shareholder approval. WE ARE NOT ASKING YOU FOR A PROXY AND YOU
ARE REQUESTED NOT TO SEND US A PROXY.
King Street Advisors, Limited, the current sub-adviser of
Managers Emerging Markets Equity Fund, has agreed to bear the
costs associated with preparing and distributing this information
statement, which will be mailed on or about July 16, 1998.
THE TRUST
Managers Emerging Markets Equity Fund (the "Emerging Markets
Equity Fund") is an investment portfolio of The Managers Funds, a
Massachusetts business trust (the "Trust"). The Trust has
entered into an investment management agreement with The Managers
Funds, L.P. (the "Manager"), dated August 17, 1990 (the
"Management Agreement"). Under the Management Agreement, it is
the responsibility of the Manager to select, subject to review
and approval by the Trustees, one or more sub-advisers (the "Sub-
Advisers") to manage the portfolio of each investment portfolio
of the Trust (each a "Fund"), to review and monitor the
performance of these Sub-Advisers on an ongoing basis, and to
recommend changes in the roster of Sub-Advisers to the Trustees
as appropriate. The Manager is responsible for allocating the
Fund's assets among the Sub-Advisers for each Fund that has more
than one Sub-Adviser. The portion of a Fund's assets managed by
a Sub-Adviser may be adjusted from time to time in the sole
discretion of the Manager, and it is possible that an approved
Sub-Adviser may not manage any portion of the Fund's assets. The
Manager is also responsible for conducting all business
operations of the Trust, except those operations contracted to
the custodian or transfer agent. As compensation for its
services, the Manager receives a fee from each Fund, out of which
the Manager renders all fees payable to the Sub-Advisers of that
Fund. The Funds, therefore, pay no fees to the Sub-Advisers.
The Manager recommends Sub-Advisers for the Funds to the
Trustees based upon its continuing quantitative and qualitative
evaluation of the Sub-Advisers' skills in managing assets
pursuant to specific investment styles and strategies. Short-
term investment performance, by itself, is not a significant
factor in selecting or terminating a Sub-Adviser, and the Manager
does not expect to recommend frequent changes of Sub-Advisers.
The Sub-Advisers do not provide any services to the Funds
except portfolio investment management and related record-keeping
services. However, in accordance with procedures adopted by the
Trustees, a Sub-Adviser, or its affiliated broker-dealer, may
execute portfolio transactions for a Fund and receive brokerage
commissions in connection therewith as permitted by Section 17(e)
of the Investment Company Act of 1940, as amended (the "1940
Act"), and the rules thereunder.
THE SUB-ADVISORY AGREEMENT
State Street Global Advisors, United Kingdom, Limited
("SSGA") has served as Sub-Adviser to the Emerging Markets Equity
Fund since its inception, pursuant to a Sub-Advisory Agreement
dated February 9, 1998 (the "Previous Agreement"). Montgomery
Asset Management LLC is also a Sub-Adviser to a portion of the
Emerging Markets Equity Fund. The Previous Agreement provides
for automatic termination of the Agreement in the event of its
"assignment", as defined in the 1940 Act. Upon the inception of
the Emerging Markets Equity Fund (i.e., February 9, 1998), it was
the original intention of the Trust to enter into a Sub-Advisory
Agreement with King Street Advisors, Limited ("King Street").
However, at such time, King Street did not have the necessary
authorizations from the Securities and Exchange Commission (the
"SEC") to enter into such an Agreement. Consequently, on
February 9, 1998, the Trust entered into a Sub-Advisory Agreement
with SSGA, which was to be a "temporary arrangement" until the
SEC approval of King Street. As a result, the Emerging Markets
Equity Fund was advised by a team of employees of SSGA who
would, upon SEC approval, ultimately become employees of King
Street. On May 5, 1998, King Street was granted SEC
registration. Prior to SEC approval, King Street received
approval from the United Kingdom regulators , and subsequently
King Street was capitalized and became 75% owned by, ultimately
State Street Corporation, and 25% owned by the employees of King
Street. Upon SEC approval, the Previous Agreement was "canceled"
by SSGA, and a new Sub-Advisory Agreement was formed with King
Street (the "Transaction"). As required, the employees of SSGA
who advised the Emerging Markets Equity Fund under the Previous
Agreement are currently advising the Emerging Markets Equity Fund
under the new Agreement with King Street. This Transaction
represents a change which is a legal "assignment", and, as such,
had the effect of terminating the Previous Agreement. At a
meeting held on June 8, 1998, the Trustees, including a majority
of the non-interested Trustees (those Trustees who are not
parties to the new agreement or interested persons of such
parties), approved a new Sub-Advisory Agreement with King Street
for the Emerging Markets Equity Fund (the "New Agreement").
Under the Management Agreement, the Emerging Markets Equity
Fund pays the Manager a fee equal to 1.15% of the Emerging
Markets Equity Fund's average daily net assets. From this amount,
the Manager has paid SSGA (under the Previous Agreement) and will
continue to pay King Street (under the New Agreement) a fee of
0.75% of the average daily net assets under management for the
Emerging Markets Equity Fund. For the period ended May 31, 1998,
the Manager and SSGA did not receive any fee from the Emerging
Markets Equity Fund.
Apart from a change in the date and in the name of the new
entity, the terms of the New Agreement are identical to those of
the Previous Agreement. The New Agreement is attached to this
information statement as Exhibit A.
INFORMATION ON KING STREET
Following is a description of King Street, which is based on
information provided by King Street. King Street is not
affiliated with the Manager.
KING STREET ADVISORS, LIMITED
Almack House, 28 King Street
London, England SW1Y 6QW
State Street Global Advisors, United Kingdom, Limited was
formed in 1990 and was set up as a part of the investment
management operation of State Street Corporation. SSGA is 100%
owned, ultimately, by State Street Corporation. King Street
Advisors, Limited was formed in 1997, as part of the State Street
Global Alliance, a new initiative within State Street
Corporation. On May 5, 1998, King Street received the approval
of the SEC, and thereby was able to enter into any Advisory
Contracts as King Street Advisers, Limited. King Street is owned
75% by, ultimately, State Street Corporation and 25% owned by the
employees of King Street.
The name and principal occupation of the directors and
principal executive officers of King Street are set forth below.
The address of each is that of King Street.
NAME POSITION
Kenneth King Managing Director, Chief Investment
Officer and Portfolio Manager
Murray Davey Director and Portfolio Manager
Christopher James Director and Senior Asian Fund Manager
Gavin MacLachlan Business Manager
Christopher Vale Director
Derek Satterthwaite Director
King Street acts as an investment adviser to another investment
company which has similar objectives to the Emerging Markets
Equity Fund, as follows:
Net Assets of Other Annual
Other Funds Fund, as of 6/30/98 Fee Rate
- ---------- ------------------- --------
State Street Active Emerging $10 million
Markets Securities Lending
Common Trust Fund
BOARD OF TRUSTEES' RECOMMENDATION
In connection with the Transaction, King Street has advised
the Trust that the Transaction is not expected to result in any
material change in the portfolio management of the Emerging
Markets Equity Fund by King Street. Since the same team is
currently advising the Emerging Markets Equity Fund as that under
the Previous Agreement with SSGA, the Transaction is not expected
to result in any changes from the past investment approaches or
styles of SSGA.
In approving the New Agreement, the Trustees, at an in-
person meeting held on June 8, 1998, considered a number of
factors, including (i) the nature and quality of the services
expected to be rendered by King Street to the Fund; (ii) the
representations by King Street to the Trustees regarding the
terms of the Transaction, including that King Street expects that
it will continue to operate with substantially similar senior
investment personnel, and that the same persons who had
historically been responsible for these investment policies of
SSGA will continue to direct the investment policies of King
Street, and there will be no dilution in the scope and quality of
the advisory services which have been provided to the Fund as a
result of the Transaction; (iii) that the fees payable by the
Fund will not change as a result of the New Agreement; and (iv)
the commitment of King Street to pay or reimburse the Fund for
the expenses incurred in connection with the preparation and
distribution of this information statement.
ADDITIONAL INFORMATION
OTHER MATTERS
The Manager, located at 40 Richards Avenue, Norwalk,
Connecticut 06854, serves as investment manager, principal
underwriter and Administrator of the Trust.
To the knowledge of the Trust, as of June 29, 1998, no
person beneficially owned more than 5% of the Fund's outstanding
shares. As of June 29, 1998, the directors and officers of the
Fund owned less than 1% of the Fund's outstanding shares.
As of December 31, 1997, SSGA had no affiliated brokers to
which it paid a commission, and it is not anticipated that King
Street will pay any such commissions in 1998.
The Trust is not required to hold annual meetings of
shareholders and, therefore, it cannot be determined when the
next meeting of shareholders will be held. Shareholder proposals
to be considered for inclusion in the proxy statement for the
next meeting of shareholders must be submitted a reasonable time
before the proxy statement is mailed. Whether a proposal
submitted will be included in the proxy statement will be
determined in accordance with applicable state and federal law.
Copies of the most recent annual and semi-annual reports are
available without charge. To obtain a copy, call or write the
Manager, at 40 Richards Avenue, Norwalk, CT 06854, (800) 835-
3879.
By Order of the Trustees,
/s/Donald S. Rumery
DONALD S. RUMERY
Secretary
Dated: July 6, 1998
SUB-ADVISORY AGREEMENT
Attention: Peter Bright, Compliance Manager
King Street Advisors, Limited
RE: Sub-Advisory Agreement
To whom it may concern:
The Managers Emerging Markets Equity Fund (the "Fund") is a
series of a Massachusetts business trust (the "Trust") that is
registered as an investment company under the Investment Company
Act of 1940, as amended, (the "Act"), and subject to the rules
and regulations promulgated thereunder.
The Managers Funds, L.P. (the "Manager") acts as the manager and
administrator of the Trust pursuant to the terms of a Management
Agreement with the Trust. The Manager is responsible for the day-
to-day management and administration of the Fund and the
coordination of investment of the Fund's assets. However,
pursuant to the terms of the Management Agreement, specific
portfolio purchases and sales for the Fund's investment
portfolios or a portion thereof, are to be made by advisory
organizations recommended by the Manager and approved by the
Trustees of the Trust.
1. Appointment as a Sub-Advisor. The Manager, being duly
authorized, hereby appoints and employs King Street Advisors,
Limited ("Sub-Advisor") as a discretionary asset manager, on the
terms and conditions set forth herein, of those assets of the
Fund which the Manager determines to allocate to the Sub-Advisor
(those assets being referred to as the "Fund Account"). The
Manager may, from time to time, with the consent of the Sub-
Advisor, make additions to the Fund Account and may, from time to
time, make withdrawals of any or all of the assets in the Fund
Account.
2. Portfolio Management Duties.
(a) Subject to the supervision of the Manager and of
the Trustees of the Trust, the Sub-Advisor shall manage
the composition of the Fund Account, including the
purchase, retention and disposition thereof, in
accordance with the Fund's investment objectives,
policies and restrictions as stated in the Fund's
Prospectus and Statement of Additional Information
(such Prospectus and Statement of Additional
Information for the Fund as currently in effect and as
amended or supplemented in writing from time to time,
being herein called the "Prospectus").
(b) The Sub-Advisor shall maintain such books and
records pursuant to Rule 31a-1 under the Act and Rule
204-2 under the Investment Advisers Act of 1940, as
amended (the "Advisers Act"), with respect to the Fund
Account as shall be specified by the Manager from time
to time, and shall maintain such books and records for
the periods specified in the rules under the Act or the
Advisers Act. In accordance with Rule 31a-3 under the
Act, the Sub-Advisor agrees that all records under the
Act shall be the property of the Trust.
(c) The Sub-Advisor shall provide the Trust's
Custodian, and the Manager on each business day with
information relating to all transactions concerning the
Fund Account. In addition, the Sub-Advisor shall be
responsive to requests from the Manager or the Trust's
Custodian for assistance in obtaining price sources for
securities held in the Fund Account, as well as for
periodically reviewing the prices of the securities
assigned by the Manager or the Trust's Custodian for
reasonableness and advising the Manager should any such
prices appear to be incorrect.
(d) The Sub-Advisor agrees to maintain adequate
compliance procedures to ensure its compliance with the
1940 Act, the Advisers Act and other applicable federal
and state regulations, and review information provided
by the Manager to assist the Manager in its compliance
review program.
(e) The Sub-Advisor agrees to maintain an appropriate
level of errors and omissions or professional liability
insurance coverage.
3. Allocation of Brokerage. The Sub-Advisor shall have
authority and discretion to select brokers, dealers and futures
commission merchants to execute portfolio transactions initiated
by the Sub-Advisor, and for the selection of the markets on or in
which the transactions will be executed.
(a) In doing so, the Sub-Advisor's primary
responsibility shall be to obtain the best net price
and execution for the Fund. However, this
responsibility shall not be deemed to obligate the Sub-
Advisor to solicit competitive bids for each
transaction, and the Sub-Advisor shall have no
obligation to seek the lowest available commission cost
to the Fund, so long as the Sub-Advisor determines that
the broker, dealer or futures commission merchant is
able to obtain the best net price and execution for the
particular transaction taking into account all factors
the Sub-Advisor deems relevant, including, but not
limited to, the breadth of the market in the security
or commodity, the price, the financial condition and
execution capability of the broker, dealer or futures
commission merchant and the reasonableness of any
commission for the specific transaction and on a
continuing basis. The Sub-Advisor may consider the
brokerage and research services (as defined in Section
28(e) of the Securities Exchange Act of 1934, as
amended) made available by the broker to the Sub-
Advisor viewed in terms of either that particular
transaction or of the Sub-Advisor's overall
responsibilities with respect to its clients, including
the Fund, as to which the Sub-Advisor exercises
investment discretion, notwithstanding that the Fund
may not be the direct or exclusive beneficiary of any
such services or that another broker may be willing to
charge the Fund a lower commission on the particular
transaction.
(b) The Manager shall have the right to request that
specified transactions giving rise to brokerage
commissions, in an amount to be agreed upon by the
Manager and the Sub-Advisor, shall be executed by
brokers and dealers that provide brokerage or research
services to the Fund or the Manager, or as to which an
on-going relationship will be of value to the Fund in
the management of its assets, which services and
relationship may, but need not, be of direct benefit to
the Fund Account, so long as (i) the Manager determines
that the broker or dealer is able to obtain the best
net price and execution on a particular transaction and
(ii) the Manager determines that the commission cost is
reasonable in relation to the total quality and
reliability of the brokerage and research services made
available to the Fund or to the Manager for the benefit
of its clients for which it exercises investment
discretion, notwithstanding that the Fund Account may
not be the direct or exclusive beneficiary of any such
service or that another broker may be willing to charge
the Fund a lower commission on the particular
transaction.
(c) The Sub-Advisor agrees that it will not execute
any portfolio transactions with a broker, dealer or
futures commission merchant which is an "affiliated
person" (as defined in the Act) of the Trust or of the
Manager or of any Sub-Advisor for the Trust except in
accordance with procedures adopted by the Trustees.
The Manager agrees that it will provide the Sub-Advisor
with a list of brokers and dealers which are
"affiliated persons" of the Trust, the Manager or the
Trust's Sub-Advisors.
4. Information Provided to the Manager and the Trust and to the
Sub-Advisor
(a) The Sub-Advisor agrees that it will make available
to the Manager and the Trust promptly upon their
request copies of all of its investment records and
ledgers with respect to the Fund Account to assist the
Manager and the Trust in monitoring compliance with the
Act, the Advisers Act, and other applicable laws. The
Sub-Advisor will furnish the Trust's Board of Trustees
with such periodic and special reports with respect to
the Fund Account as the Manager or the Board of
Trustees may reasonably request.
(b) The Sub-Advisor agrees that it will notify the
Manager and the Trust in the event that the Sub-Advisor
or any of its affiliates: (i) becomes subject to a
statutory disqualification that prevents the Sub-
Advisor from serving as investment adviser pursuant to
this Agreement; or (ii) is or expects to become the
subject of an administrative proceeding or enforcement
action by the Securities and Exchange Commission or
other regulatory authority. Notification of an event
within (i) shall be given immediately; notification of
an event within (ii) shall be given promptly. The Sub-
Advisor has provided the information about itself set
forth in the Registration Statement and has reviewed
the description of its operations, duties and
responsibilities as stated therein and acknowledges
that they are true and correct in all material respects
and contain no material misstatement or omission, and
it further agrees to notify the Manager immediately of
any fact known to the Sub-Advisor respecting or
relating to the Sub-Advisor that causes any statement
in the Prospectus to become untrue or misleading in any
material respect or that causes the Prospectus to omit
to state a material fact.
(c) The Sub-Advisor represents that it is an
investment adviser registered under the Advisers Act
and other applicable laws and that the statements
contained in the Sub-Advisor's registration under the
Advisers Act on Form ADV as of the date hereof, are
true and correct and do not omit to state any material
fact required to be stated therein or necessary in
order to make the statements therein not misleading.
The Sub-Advisor agrees to maintain the completeness and
accuracy in all material respects of its registration
on Form ADV in accordance with all legal requirements
relating to that Form. The Sub-Advisor acknowledges
that it is an "investment adviser" to the Fund within
the meaning of the Act and the Advisers Act.
5. Compensation. The compensation of the Sub-Advisor for its
services under this Agreement shall be calculated and paid by the
Manager in accordance with the attached Schedule A. Pursuant to
the provisions of the Management Agreement between the Trust and
the Manager, the Manager is solely responsible for the payment of
fees to the Sub-Advisor, and the Sub-Advisor agrees to seek
payment of its fees solely from the Manager and not from the
Trust or the Fund.
6. Other Investment Activities of the Sub-Advisor. The Manager
acknowledges that the Sub-Advisor or one or more of its
affiliates may have investment responsibilities or render
investment advice to or perform other investment advisory
services for other individuals or entities ("Affiliated
Accounts"). The Manager agrees that the Sub-Advisor or its
affiliates may give advice or exercise investment responsibility
and take such other action with respect to other Affiliated
Accounts which may differ from the advice given or the timing or
nature of action taken with respect to the Fund Account, provided
that the Sub-Advisor acts in good faith and provided further,
that it is the Sub-Advisor's policy to allocate, within its
reasonable discretion, investment opportunities to the Fund
Account over a period of time on a fair and equitable basis
relative to the Affiliated Accounts, taking into account the
investment objectives and policies of the Fund and any specific
investment restrictions applicable thereto. The Manager
acknowledges that one or more of the Affiliated Accounts may at
any time hold, acquire, increase, decrease, dispose or otherwise
deal with positions in investments in which the Fund Account may
have an interest from time to time, whether in transactions which
involve the Fund Account or otherwise. The Sub-Advisor shall
have no obligation to acquire for the Fund Account a position in
any investment which any Affiliated Account may acquire, and the
Fund shall have no first refusal, co-investment or other rights
in respect of any such investment, either for the Fund Account or
otherwise.
7. Standard of Care. The Sub-Advisor shall exercise its best
judgment in rendering the services provided by it under this
Agreement. The Sub-Advisor shall not be liable for any act or
omission, error of judgment or mistake of law or for any loss
suffered by the Manager or the Trust in connection with the
matters to which this Agreement relates, provided that nothing in
this Agreement shall be deemed to protect or purport to protect
the Sub-Advisor against any liability to the Manager or the Trust
or to holders of the Trust's shares representing interests in the
Fund to which the Sub-Advisor would otherwise be subject by
reason of willful malfeasance, bad faith or gross negligence on
its part in the performance of its duties or by reason of the Sub-
Advisor's reckless disregard of its obligations and duties under
this Agreement.
8. Assignment. This Agreement shall terminate automatically in
the event of its assignment (as defined in the Act and in the
rules adopted under the Act). The Sub-Advisor shall notify the
Trust in writing sufficiently in advance of any proposed change
of control, as defined in Section 2(a)(9) of the Act, as will
enable the Trust to consider whether an assignment under the Act
will occur, and to take the steps necessary to enter into a new
contract with the Sub-Advisor or such other steps as the Board of
Trustees may deem appropriate.
9. Amendment. This Agreement may be amended at any time, but
only by written agreement between the Sub-Advisor and the
Manager, which amendment is subject to the approval of the
Trustees and the shareholders of the Trust in the manner required
by the Act.
10. Effective Date; Term. This Agreement shall become effective
on June 8, 1998 and shall continue in effect for a term of two
years from that date. Thereafter, the Agreement shall continue
in effect only so long as its continuance has been specifically
approved at least annually by the Trustees, or the shareholders
of the Fund in the manner required by the Act. The aforesaid
requirement shall be construed in a manner consistent with the
Act and the rules and regulations thereunder.
11. Termination. This Agreement may be terminated by (i) the
Manager at anytime without penalty, upon notice to the Sub-
Advisor and the Trust, (ii) at any time without penalty by the
Trust or by vote of a majority of the outstanding voting
securities of the Fund (as defined in the Act) on notice to the
Sub-Advisor or (iii) by the Sub-Advisor at any time without
penalty, upon thirty (30) days' written notice to the Manager and
the Trust.
12. 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 but shall continue in full force and effect.
13. Applicable Law. The provisions of this Agreement shall be
construed in a manner consistent with the requirements of the Act
and the rules and regulations thereunder. To the extent that
state law is not preempted by the provisions of any law of the
United States heretofore or hereafter enacted, as the same may be
amended from time to time, this Agreement shall be administered,
construed, and enforced according to the laws of the State of
Connecticut.
THE MANAGERS FUNDS, L.P.
BY: EAIMC HOLDINGS CORP.
General Partner
BY:
Its:
DATE:
ACCEPTED:
BY:
Its:
DATE:
Acknowledged:
The Managers Funds
BY:
Its:
DATE:
SCHEDULES: A. Fee Schedule.
SCHEDULE A
SUB-ADVISOR FEE
For services provided to the Fund Account, The Managers Funds,
L.P. will pay a base quarterly fee for each calendar quarter at
an annual rate of 0.75% of average daily net assets in the Fund
Account during the quarter. Average assets shall be determined
using the average daily assets in the Fund Account during the
calendar quarter. The fee shall be pro-rated for any calendar
quarter during which the contract is in effect for only a portion
of the quarter.
