<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A INFORMATION
(Rule 14a-101)
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934
Filed by the Registrant [X]
Filed by a Party other than the Registrant [_]
Check the appropriate box:
[X] Preliminary Proxy Statement [_] CONFIDENTIAL, FOR USE OF THE
COMMISSION ONLY (AS PERMITTED BY
RULE 14A-6(E)(2))
[_] Definitive Proxy Statement
[_] Definitive Additional Materials
[_] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12
THE RBB FUND, INC.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required
[_] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) 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:
-------------------------------------------------------------------------
<PAGE>
(5) Total fee paid:
-------------------------------------------------------------------------
[_] Fee paid previously with preliminary materials.
[_] Check box if any part of the fee is 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>
THE RBB FUND, INC.
Bellevue Park Corporate Center
400 Bellevue Parkway, 3/rd/ Floor
Wilmington, Delaware 19809
____________
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
____________
October ___, 1999
A Special Meeting of Shareholders (the "Meeting") of n/i numeric investors
Micro Cap Fund ("Micro Cap Fund"), n/i numeric investors Growth Fund ("Growth
Fund"), n/i numeric investors Growth & Value Fund ("Growth & Value Fund"), n/i
numeric investors Larger Cap Value Fund ("Larger Cap Value Fund") and n/i
numeric investors Small Cap Value Fund ("Small Cap Value Fund") (each a "Fund,"
and collectively, the "Numeric Funds"), each a series of The RBB Fund, Inc. (the
"RBB Fund" or the "Company"), will be held at the offices of the RBB Fund,
Bellevue Park Corporate Center, 400 Bellevue Parkway, 3/rd/ Floor, Wilmington,
Delaware 19809 on November 22, 1999, at 10:00 a.m. for the following purposes:
(1) The approval or disapproval of an amendment to the investment
advisory agreement between the Company and Numeric Investors L.P. with
respect to each Fund; and
(2) The transaction of such other business as may properly come before
the meeting or any adjournment thereof.
The proposals referred to above are discussed in the Proxy Statement
attached to this Notice. Each shareholder is invited to attend the Special
Meeting of Shareholders in person. Shareholders of record at the close of
business on September 30, 1999 have the right to vote at the meeting. If you
cannot be present at the meeting, we urge you to fill in, sign and promptly
return the enclosed proxy in order that the meeting can be held and a maximum
number of shares may be voted.
THE BOARD OF DIRECTORS OF THE RBB FUND UNANIMOUSLY RECOMMENDS THAT
SHAREHOLDERS OF EACH NUMERIC FUND VOTE TO APPROVE THE AMENDMENTS TO EACH
RESPECTIVE ADVISORY AGREEMENT.
IT IS IMPORTANT THAT PROXIES BE RETURNED PROMPTLY.
SHAREHOLDERS WHO DO NOT EXPECT TO ATTEND THE SPECIAL MEETING ARE URGED TO
SIGN AND RETURN WITHOUT DELAY THE ENCLOSED PROXY CARD(S) IN THE ENCLOSED
ENVELOPE, WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES, SO THAT
THEIR SHARES MAY BE REPRESENTED AT THE MEETING. INSTRUCTIONS FOR THE PROPER
EXECUTION OF PROXY CARDS ARE SET FORTH ON THE FOLLOWING PAGE.
<PAGE>
PROXIES MAY BE REVOKED AT ANY TIME BEFORE THEY ARE EXERCISED BY THE SUBSEQUENT
EXECUTION AND SUBMISSION OF A REVISED PROXY, BY GIVING WRITTEN NOTICE OF
REVOCATION TO THE RBB FUND AT ANY TIME BEFORE THE PROXY IS EXERCISED OR BY
VOTING IN PERSON AT THE MEETING.
By Order of the Board of Directors
Morgan R. Jones
October ___, 1999 Secretary
WE NEED YOUR PROXY VOTE IMMEDIATELY
YOUR PROMPT ATTENTION TO THE ENCLOSED PROXY WILL HELP TO AVOID THE EXPENSE
OF FURTHER SOLICITATION.
<PAGE>
THE RBB FUND, INC.
Bellevue Park Corporate Center
400 Bellevue Parkway, 3/rd/ Floor
Wilmington, Delaware 19809
PRELIMINARY
PROXY STATEMENT
This Proxy Statement is furnished in connection with the solicitation of
proxies by the Board of Directors of The RBB Fund, Inc. (the "Company") for use
at a Special Meeting of Shareholders of each of the n/i numeric investors Micro
Cap Fund ("Micro Cap Fund"), n/i numeric investors Growth Fund ("Growth Fund"),
n/i numeric investors Growth & Value Fund ("Growth & Value Fund"), n/i numeric
investors Larger Cap Value Fund ("Larger Cap Value Fund") and n/i numeric
investors Small Cap Value Fund ("Small Cap Value Fund") to be held at the
Company's offices located at Bellevue Park Corporate Center, 400 Bellevue
Parkway, Wilmington, Delaware 19809 on November 22, 1999, at 10:00 a.m. Eastern
Time. As used in this Proxy Statement, the meeting and any adjournment thereof
is referred to as the "Meeting"; the n/i numeric investors family of funds are
referred to individually as a "Fund" and collectively as the "Funds"; and the
Funds' shares are referred to as "Shares."
Proxy solicitations will be made primarily by mail, but solicitations may
also be made by telephone, telegraph or personal interview conducted by officers
or employees of the Company, Numeric Investors L.P., Bear Stearns Fund
Management Inc., the co-administrator to each Fund, or Shareholder
Communications Corporation ("SCC"), a proxy solicitation firm that has been
retained by the Company. All costs of the solicitation, including (a) printing
and mailing of this Proxy Statement and accompanying materials, (b) the
reimbursement of brokerage firms and others for their expenses in forwarding
solicitation materials to the beneficial owners of the shares, (c) payment of
SCC for its services in soliciting proxies and (d) supplementary solicitations
to submit Proxies, will be borne by each Fund. This Proxy Statement and the
enclosed proxy are expected to be distributed to shareholders on or about
October ___, 1999.
The following table summarizes the proposal to be voted on at the Meeting
and indicates those shareholders who are being solicited with respect to the
proposal:
<TABLE>
<CAPTION>
PROPOSAL SHAREHOLDERS SOLICITED
-------- ----------------------
<S> <C>
The approval or disapproval of an amendment to the Shareholders of each Fund voting
investment advisory agreement between the Company separately on a Fund-by-Fund basis.
and Numeric Investors L.P. with respect to each
Fund.
</TABLE>
<PAGE>
A proxy is enclosed with respect to the Shares you own in the Company. If
the proxy is executed properly and returned, the Shares represented by it will
be voted at the Meeting in accordance with the instructions thereon. Each full
Share is entitled to one vote and each fractional Share to a proportionate
fractional vote. If you do not expect to be present at the Meeting and wish
your Shares to be voted, please complete the enclosed proxy and mail it in the
enclosed reply envelope.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE APPROVAL OF EACH PROPOSAL
DESCRIBED IN THIS PROXY STATEMENT.
<PAGE>
PROPOSAL 1
INTRODUCTION. Following a review of each of the Company's current
investment advisory agreements (each a "Current Agreement" and collectively, the
"Current Agreements") with Numeric Investors L.P. ("Numeric"), and based on
Numeric's recommendation, the Board of Directors approved a new performance fee
structure known as a "fulcrum fee" arrangement. A fulcrum fee arrangement
compensates an investment adviser on the basis of a fund's performance relative
to a benchmark. Before the proposed fulcrum fee arrangement can be implemented,
however, the shareholders must approve an amendment to the Current Agreements
permitting such an arrangement. At the Meeting, shareholders of each Fund will
be asked to approve such an amendment to its Current Agreement (each an "Amended
Agreement" and collectively, the "Amended Agreements") with Numeric. Numeric
currently serves as investment adviser to the Company pursuant to five separate
investment advisory agreements. The terms and conditions of the Amended
Agreements are identical to those of the Current Agreements except for
provisions relating to the method of calculating the compensation paid to
Numeric.
Significant provisions of the Amended Agreements are summarized below.
However, this summary is qualified in its entirety by reference to the Amended
Agreements. A copy of one Amended Agreement is attached as Exhibit A to this
Proxy Statement. The four other Amended Agreements are identical to Exhibit A,
except for the Fund they cover and the Fund's benchmark index used in
calculating the advisory fees paid to Numeric.
TERMS AND CONDITIONS OF THE AMENDED AGREEMENTS. In the Amended Agreements,
Numeric agrees, subject to the supervision of the Company's Board of Directors,
to be responsible for the management of, and to provide a continuous investment
program for, each Fund's portfolio in accordance with such Fund's investment
objective, policies and limitations, and to make decisions with respect to and
place orders for all purchases and sales of portfolio securities for the
respective Funds. Numeric's responsibilities as investment adviser include
providing investment research and management with respect to all securities,
investments, cash and cash equivalents in the Funds and maintaining books and
records with respect to each Fund's securities transactions.
Under the proposed Amended Agreements, until January 1, 2001, Numeric would
continue to be entitled to its current fee of 0.75% of each Fund's average daily
net assets before fee waivers and expense reimbursements, if any. Effective
January 1, 2001, the fulcrum fee would apply. Under the fulcrum fee, the
advisory fee would be less than the current fee of 0.75% if a Fund's performance
does not exceed its benchmark by 3.00% in a given 12 month period, and would
only be more than the current fee if a Fund's performance exceeds its benchmark
by more than 4.00% in a given 12 month period. The performance fee adjustment
would be calculated at the end of each month using a basic fee of 0.85% of
average daily net assets, and a performance fee adjustment based upon each
Fund's performance during the last rolling 12-month period. Each Fund's net
performance would be compared with the performance of its benchmark index during
that same rolling 12-month period. When a Fund's performance is at least 5.00%
better than its benchmark, it would pay Numeric more than the basic fee. If a
Fund did not perform at least 4.00% better than its benchmark, Numeric would be
paid less than the basic fee. Each 1.00% of the difference in performance
between a Fund and its benchmark plus 4.00% during the performance period would
result in a 0.10% adjustment to the basic fee. If Numeric did not perform as
well as a Fund's benchmark index plus 4.00%, Numeric would be paid less than
0.85%. The benchmark index for each of
<PAGE>
the Micro Cap, Growth, Growth & Value, Larger Cap Value and Small Cap Value
Funds' would be the Russell 2000 Growth Index, Russell 2500 Growth Index, S&P
Midcap 400 Index, Russell 1000 Value Index and Russell 2000 Value Index,
respectively. These benchmark indices are the same respective indices that each
Fund has used as a benchmark to compare its performance in the past.
The maximum annualized performance adjustment rate would be + or - 0.50% of
average net assets which would be added to or deducted from the investment
advisory fee if a Fund outperformed its benchmark index by 9.00% or more or if
it underperformed its benchmark index over a rolling twelve month period. Under
the performance fee, the investment advisory fee would never be greater than
1.35% nor less than 0.35% of a Fund's average daily net assets for the preceding
month. The table below details the new fee arrangements:
<TABLE>
<CAPTION>
PERCENTAGE DIFFERENCE BETWEEN
FUND PERFORMANCE (NET OF
EXPENSES INCLUDING ADVISORY
FEES) AND PERCENTAGE CHANGE IN PERFORMANCE TOTAL
BENCHMARK INDEX BASIC FEE ADJUSTMENT RATE ADVISORY FEE
--------------- --------- --------------- ----------------
<S> <C> <C> <C>
+9% or more...................... .85% .50% 1.35%
+8% or more but less than +9%.... .85% .40% 1.25%
+7% or more but less than +8%.... .85% .30% 1.15%
+6% or more but less than +7%.... .85% .20% 1.05%
+5% or more but less than +6%.... .85% .10% 0.95%
+4% or more but less than +5%.... .85% None 0.85%
+3% or more but less than +4%.... .85% -.10% 0.75%
+2% or more but less than +3%.... .85% -.20% 0.65%
+1% or more but less than +2%.... .85% -.30% 0.55%
+0% or more but less than +1%.... .85% -.40% 0.45%
Less than 0%..................... .85% -.50% 0.35%
</TABLE>
<PAGE>
Numeric has also agreed that if the Amended Agreements are approved prior to
when the performance based fee becomes effective (January 1, 2001), Numeric will
waive fees and/or reimburse expenses to the extent necessary to prevent a Fund's
expenses from exceeding 1.00% of its average daily net assets. Thereafter,
until at least __________, Numeric will waive fees and/or reimburse expenses to
the extent necessary to prevent a Fund's expenses, other than management fees,
from exceeding 0.50% of its average daily net assets. This voluntary fee waiver
and/or expense reimbursement may be terminated by Numeric in its sole
discretion at any time.
During the fiscal year ended August 31, 1999, the Micro Cap, Growth, Growth
& Value, Larger Cap Value and Small Cap Value Funds each paid Numeric an
investment advisory fee at the effective annual rate of ____%, ____%, ____%,
____% and ____%, respectively, of such Funds' average daily net assets. The
table below compares the aggregate amount of fees paid during the last fiscal
year to the aggregate amount of fees that would have been paid by each Fund had
the proposed fulcrum fee been in effect:
<TABLE>
<CAPTION>
PERCENTAGE
1999 ADVISER'S PROPOSED FULCRUM VARIATION BETWEEN
FEES* FEES** FEE ARRANGEMENTS
----- ------ ----------------
<S> <C> <C> <C>
Micro Cap
Growth
Growth & Value
Larger Cap Value
Small Cap Value
</TABLE>
* These amounts reflect the fees waived by Numeric to the extent necessary to
prevent a Fund's expenses from exceeding 1.00% of its average daily net
assets. The advisory fees after these waivers were _____, _____, _____, _____
and _____ for the Micro Cap, Growth, Growth & Value, Larger Cap Value and
Small Cap Value Funds, respectively. The fee waivers have been agreed to by
Numeric until at least __________________.
** These amounts reflect voluntary fee waivers and/or expense reimbursements by
Numeric to the extent necessary to prevent its expenses, other than
management fees, from exceeding 0.50% of its average daily net assets. This
voluntary fee waiver and/or expense reimbursement may be terminated by
Numeric in its sole discretion at any time.
<PAGE>
The following table shows the total operating expenses paid by the Funds based
on the last fiscal year. Figures shown reflect expenses under the current
advisory fees and pro forma expenses that would have been incurred if the
performance based fees had been in effect during that period, and in each case
are based on each Fund's asset levels as of August 31, 1999.
Annual operating expenses
(as a percentage of average net assets)
<TABLE>
<CAPTION>
TOTAL ANNUAL
RULE FUND
MANAGEMENT 12b-1 OTHER OPERATING
FEES FEES EXPENSES EXPENSES FEE WAIVERS NET EXPENSES
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Micro Cap
Current*
Pro Forma
Growth
Current*
Pro Forma
Growth & Value
Current*
Pro Forma
Larger Cap Value
Current*
Pro Forma
Small Cap Value
Current*
Pro Forma
</TABLE>
* These amounts reflect the effective annual rate paid for advisory fees
after Numeric waived fees to the extent necessary to prevent a Fund's expenses
from exceeding 1.00% of average daily net assets. The fee waivers and expense
reimbursements have been agreed to by Numeric until at least December 31, 2000.
<PAGE>
EXAMPLE. The purpose of this example is to assist investors in comparing the
cost of investing in a Fund with the cost of investing in other mutual funds.
Your actual costs may be higher or lower. A shareholder would pay the following
expenses on a $10,000 investment, assuming (1) 5% annual return, (2) the
advisory fees in the above chart, and (3) redemption at the end of each time
period.
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
(CURRENT/PRO (CURRENT/PRO (CURRENT/PRO (CURRENT/PRO
FORMA) FORMA) FORMA) FORMA)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Micro Cap
Growth
Growth & Value
Larger Cap Value
Small Cap Value
</TABLE>
The advisory fees payable by each Fund under its Amended Agreement are the
separate obligation of that Fund (and not the joint obligation of all Funds).
Numeric may from time to time voluntarily waive all or a portion of its advisory
fees and reimburse expenses in order to assist a Fund in maintaining a
competitive expense ratio.
The Amended Agreements provide that Numeric will pay all expenses incurred
by it in connection with its activities under the Amended Agreements other than
the expenses to be borne by the Funds. Expenses to be borne by the Funds
include, without limitation, brokerage fees, commissions and other transaction
costs, outside auditing and legal expenses, Securities and Exchange Commission
("SEC") fees, costs of shareholders' reports and meetings, costs of proxy
statements and prospectuses, and extraordinary expenses.
The Amended Agreements also provide that Numeric may place orders for
portfolio securities with any broker or dealer selected by Numeric. In
executing portfolio transactions and selecting brokers or dealers, the Amended
Agreements require Numeric to use its reasonable best efforts to seek the most
favorable execution of orders. Consistent with this obligation, Numeric may
purchase and sell portfolio securities from and to brokers and dealers who
provide brokerage and research services to or for the benefit of the Funds
directly or indirectly. Numeric is authorized to cause the Funds to pay to a
broker or dealer who provides such brokerage and research services a commission
for executing a portfolio transaction for any Fund which is in excess of the
amount of commission another broker or dealer would have charged for effecting
that transaction if Numeric determines in good faith that the amount of each
such commission was reasonable in relation to the value of brokerage and
research services provided by such broker or dealer, viewed in terms of either
that particular transaction to which the commission relates or Numeric's overall
responsibilities with respect to accounts as to which it exercises investment
discretion. In no instance will portfolio securities be purchased from or sold
to Numeric or the Funds' principal underwriter, Provident Distributors, Inc., or
any affiliated person of either of them, except as permitted by the SEC.
The Amended Agreements also provide that Numeric shall not be liable for
any error of judgment or mistake of law or for any loss suffered by a Fund,
except a loss resulting from a
<PAGE>
breach of fiduciary duty with respect to the receipt of compensation for
services or a loss resulting from willful misfeasance, bad faith or gross
negligence by Numeric in the performance of its duties or from reckless
disregard by it of its obligations and duties under the Amended Agreements
("disabling conduct"). Each Fund has agreed to indemnify and hold harmless
Numeric against all losses, claims, damages, liabilities or expenses (including
reasonable counsel fees and expenses) resulting from any claim, demand, action
or suit not resulting from disabling conduct by Numeric.
If approved by a majority of the outstanding Shares of each Fund (as
defined below) and not sooner terminated, each Amended Agreement will continue
in effect with respect to each such Fund until August 16, 2000 and thereafter
from year to year, provided that such continuance is approved at least annually
(i) by the vote of a majority of those members of the Board of Directors who are
not parties to the Amended Agreements or "interested persons" (as defined in the
Investment Company Act of 1940, as amended (the "1940 Act")) of any such party,
and (ii) by the Board of Directors or by vote of a majority of the outstanding
Shares of each such Fund.
The Amended Agreements provide that it will terminate automatically in the
event of its "assignment" (as defined in the 1940 Act), and that it is
terminable with respect to one or more Funds by Numeric, by the Board of
Directors of the Company, or by vote of a majority of the outstanding Shares of
such Fund or Funds, without penalty, on 60 days' written notice.
EVALUATION BY THE BOARD OF DIRECTORS. The Company's Board of Directors has
determined that approving the Amended Agreements with Numeric on behalf of the
Funds will provide appropriate incentives for Numeric in making portfolio
investments through the performance fee adjustment. To mitigate concern that
Numeric might be encouraged to take undue risks under the performance fee
arrangement, the Board has instructed Numeric to manage the Funds' assets in the
same manner that it manages accounts without performance fees. In addition, the
Board has limited the performance fee adjustment to a particular range. The
Board believes that the Amended Agreements will enable the Funds to obtain high
quality services at costs deemed appropriate, reasonable and in the best
interests of the Funds and their shareholders.
Among other things, the Board considered that (i) the selection of these
benchmark indices under the Amended Agreements is appropriate; (ii) Numeric's
investment performance would be measured with respect to 12 month periods and on
a "rolling basis," thus making it less likely advisory fee payments will be
affected by short-term or "random" fluctuations in a respective Fund's
performance than might be the case if a short measuring period were used in the
performance formula; (iii) Numeric has demonstrated its abilities as an
investment adviser to the Funds; (iv) the terms of the Current Agreements and
the Amended Agreements were identical except for the fees payable to Numeric;
(v) the formula for determining the performance fee would result in significant
fee adjustments only in response to significant performance differences; and
(vi) there would be no change in personnel at Numeric providing advisory
services to the Funds as a result of the Amended Agreements.
Based upon its review, the Board concluded that the Amended Agreements with
Numeric are reasonable, fair and in the best interests of the Funds and their
shareholders, and that the fees provided therein are fair and reasonable. In
the Board's view, retaining Numeric to serve as the Funds' investment adviser,
under the terms of the Amended Agreements, is desirable and in the
<PAGE>
best interests of the Funds and their shareholders. Accordingly, after
consideration of the above factors, and such other facts and information as it
deemed relevant, the Board, including a majority of those members of the Board
who are not "interested persons" (as defined in the 1940 Act) of any party to
the Amended Agreements, approved the Amended Agreements with Numeric on July 28,
1999 and voted to recommend their approval by the shareholders of the Funds.
INFORMATION CONCERNING THE CURRENT AGREEMENTS. The Current Agreements
relating to each of the Funds are dated, and were approved by each Fund's sole
shareholder prior to its initial public offering, as of April 24, 1996, except
for the Larger Cap Value Fund which is dated, and was approved by the Fund's
sole shareholder prior to its initial public offering, December 1, 1997, and the
Small Cap Value Fund, which is dated, and was approved by the Fund's sole
shareholder prior to its initial public offering, November 30, 1998. The Board
of Directors last approved the Funds' Current Agreements on July 28, 1999.
Pursuant to the Current Agreements, Numeric is entitled to receive advisory fees
at a rate of 0.75% of each Fund's average daily net assets.
REQUIRED VOTE. The approval of the Amended Agreements requires the
affirmative vote of the holders of a "majority of the outstanding shares" of
each Fund (as defined in the 1940 Act), which means the lesser of (a) the
holders of 67% or more of the Shares of the Fund present at the Meeting if the
holders of more than 50% of the outstanding Shares of such Fund are present in
person or by proxy, or (b) more than 50% of the outstanding Shares of the Fund.
THE BOARD OF DIRECTORS RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" THE AMENDED
AGREEMENTS.
VOTING INFORMATION
GENERAL INFORMATION. This proxy is being furnished in connection with the
solicitation of proxies for the Meeting. It is expected that the solicitation
of proxies will be primarily by mail. OFFICERS AND SERVICE CONTRACTORS OF THE
COMPANY MAY ALSO SOLICIT PROXIES BY TELEPHONE OR OTHERWISE. In this connection,
the Company has retained SCC to assist in the solicitation of proxies.
Shareholders may vote by mail, by marking, signing, dating and returning the
enclosed Proxy Card in the enclosed postage-paid envelope. Any shareholder
giving a proxy may revoke it at any time before it is exercised by submitting to
the Company a written notice of revocation or a subsequently executed proxy or
by attending the Meeting and voting in person.
<PAGE>
Record Date. Only shareholders of record at the close of business on
September 30, 1999 will be entitled to vote at the Meeting. On that date, the
outstanding Shares were as follows:
<TABLE>
<CAPTION>
NUMBER OF
FUND SHARES OUTSTANDING
- ---- ------------------
<S> <C>
Micro Cap Fund................................
Growth Fund...................................
Growth & Value Fund...........................
Larger Cap Value Fund.........................
Small Cap Value Fund..........................
</TABLE>
QUORUM. A quorum is constituted with respect to the Company or a Fund by
the presence in person or by proxy of the holders of at least a majority of all
of the outstanding Shares of the Company or a Fund entitled to vote at the
Meeting. For purposes of determining the presence of a quorum for transacting
business at the Meeting, abstentions will be treated as Shares that are present
at the Meeting but which have not been voted. Abstentions will have the effect
of a "no" vote for purposes of obtaining the requisite approval of the proposal.
Broker "non-votes" (that is, proxies from brokers or nominees indicating that
such persons have not received instructions from the beneficial owners or other
persons entitled to vote Shares on a particular matter with respect to which the
brokers or nominees do not have discretionary power) will be treated the same as
abstentions.
In the event that a quorum is not present at the Meeting or at any
adjournment thereof, or in the event that a quorum is present at the Meeting but
sufficient votes to approve the proposal are not received by the Company or by
one or more of the Funds, one or more adjournment(s) may be proposed to permit
further solicitations of proxies. Any adjourned session or sessions may be held
after the date set for the original Meeting without notice except announcement
at the Meeting. Any such adjournment(s) will require the affirmative vote of a
majority of those Shares affected by the adjournment(s) that are represented at
the Meeting in person or by proxy. If a quorum is present, the persons named as
proxies will vote those proxies which they are entitled to vote FOR the proposal
in favor of such adjournment(s), and will vote those proxies required to be
voted AGAINST the proposal against any such adjournment(s). A shareholder vote
may be taken with respect to one or more of the Funds on some or all matters
before any such adjournment(s) if a quorum is present and sufficient votes have
been received for approval with respect to such Fund or Funds.
OTHER SHAREHOLDER INFORMATION. The name, address and share ownership of
each other person who may have possessed sole or shared voting or investment
power with respect to more than 5% of the Company's outstanding Shares as of the
record date were:
<PAGE>
<TABLE>
<CAPTION>
PERCENTAGE OF
AMOUNT OF FUND FUND SHARES
NAME AND ADDRESS SHARES OWNED OWNED
---------------- -------------- -----------------
<S> <C> <C> <C>
Micro Cap Fund
Growth Fund
Growth & Value Fund
Larger Cap Value Fund
Small Cap Value Fund
</TABLE>
<PAGE>
ADDITIONAL INFORMATION
INFORMATION ABOUT NUMERIC. Numeric's principal offices are located at One
Memorial Drive, Cambridge, MA 02142. Numeric specializes in the active
management of U.S. and international equity portfolios using internally
developed quantitative stock selection and portfolio risk-control techniques,
and currently has over $5 billion in assets under management for individual,
limited partnership, mutual fund, offshore fund, pension plan and endowment
accounts.
The name, address and principal occupation of each general partner of
Numeric as of _______________ were as follows:
<TABLE>
<CAPTION>
Principal
Position with Occupation and
Name Numeric Address
---- ------- --------------
<S> <C> <C>
</TABLE>
Principal Underwriter and Administrators. Provident Distributors, Inc.
which is located at Four Falls Corporate Center, 6/th/ Floor, West Conshohocken,
PA 19428 serves as the exclusive underwriter for shares of the Funds. The
Company's administrators are: PFPC Inc., 400 Bellevue Parkway, Wilmington, DE
19809 and Bear Stearns Funds Management Inc., 575 Lexington Avenue, 9/th/ Floor,
New York, NY 10022.
<PAGE>
OTHER MATTERS
The Company does not intend to hold Annual Meetings of Shareholders except
to the extent that such meetings may be required under the 1940 Act or state
law. Shareholders who wish to submit proposals for inclusion in the Proxy
Statement for a subsequent shareholder meeting should send their written
proposals to the Company at its principal office within a reasonable time before
such meeting.
No business other than the matters described above is expected to come
before the Meeting, but should any other matter requiring a vote of shareholders
arise, including any question as to an adjournment of the Meeting, the persons
named in the enclosed Proxy will vote thereon according to their best judgment
in the interests of the Company.
Dated: October ___, 1999
SHAREHOLDERS WHO DO NOT EXPECT TO BE PRESENT AT THE MEETING AND WHO WISH TO
HAVE THEIR SHARES VOTED ARE REQUESTED TO COMPLETE THE ENCLOSED PROXY CARD(S) AND
RETURN IT IN THE ENCLOSED ENVELOPE. NO POSTAGE IS REQUIRED IF MAILED IN THE
UNITED STATES.
THE COMPANY WILL FURNISH, WITHOUT CHARGE, COPIES OF THE COMPANY'S ANNUAL
AND SEMI-ANNUAL REPORTS TO SHAREHOLDERS DATED ____________ AND
_________________, RESPECTIVELY, TO ANY SHAREHOLDER UPON REQUEST. THE COMPANY'S
ANNUAL AND SEMI-ANNUAL REPORTS TO SHAREHOLDERS MAY BE OBTAINED FROM THE COMPANY
BY CALLING THE COMPANY AT (800)__________.
<PAGE>
INSTRUCTIONS FOR SIGNING PROXY CARDS
The following general rules for signing proxy cards may be of assistance to
you and avoid the time and expense involved in validating your vote if you fail
to sign your proxy card properly.
1. Individual Accounts: Sign your name exactly as it appears in the
registration on the proxy card.
2. Joint Accounts: Either party may sign, but the name of the party
signing should conform exactly to the name shown in the registration
on the proxy card.
3. All Other Accounts: The capacity of the individual signing the proxy
card should be indicated unless it is reflected in the form of
registration. For example:
<TABLE>
<CAPTION>
REGISTRATION VALID SIGNATURES
- ------------ ----------------
CORPORATE ACCOUNTS
<S> <C>
(1) ABC Corp.............................. ABC Corp.
(2) ABC Corp.............................. John Doe , Treasurer
(3) ABC Corp.
c/o John Doe, Treasurer............... John Doe
(4) ABC Corp. Profit Sharing Plan......... John Doe, Treasurer
TRUST ACCOUNTS
(1) ABC Trust............................. Jane B. Doe, Trustee
(2) Jane B. Doe, Trustee
u/t/d 12/28/78....................... Jane B. Doe
CUSTODIAL OR ESTATE ACCOUNTS
(1) John B. Smith, Cust.
f/b/o John B. Smith, Jr. UGMA........ John B. Smith
(2) John B. Smith......................... John B. Smith, Jr., Executor
</TABLE>
<PAGE>
Proxy
THE RBB FUND, INC.
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS OF THE RBB FUND, INC. (THE
"COMPANY") FOR USE AT A SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON NOVEMBER
22, 1999, AT 10:00 A.M. EASTERN TIME, OR ANY ADJOURNMENTS OR POSTPONEMENTS
THEREOF, AT THE COMPANY'S OFFICES LOCATED AT 400 BELLEVUE PARKWAY, WILMINGTON,
DELAWARE 19809.
THE UNDERSIGNED HEREBY APPOINTS ____________________________ AND
_____________________, AND EACH OF THEM, WITH FULL POWER OF SUBSTITUTION, AS
PROXIES OF THE UNDERSIGNED TO VOTE AT THE ABOVE-STATED SPECIAL MEETING, AND AT
ALL ADJOURNMENTS OR POSTPONEMENTS THEREOF, ALL SHARES OF COMMON STOCK
REPRESENTING INTERESTS IN THE COMPANY'S N/I NUMERIC INVESTORS SMALL CAP VALUE
FUND (THE "FUND") HELD OF RECORD BY THE UNDERSIGNED ON SEPTEMBER 30, 1999, THE
RECORD DATE FOR THE MEETING, UPON THE FOLLOWING MATTERS AND UPON ANY OTHER
MATTER THAT MAY COME BEFORE THE MEETING, IN THEIR DISCRETION:
(1) Proposal to approve an amendment to the Advisory Agreement between the
Company and Numeric Investors L.P. with respect to the Fund.
[_] For [_] Against [_] Abstain
(2) In their discretion, the proxies are authorized to vote upon such other
business as may properly come before the Meeting.
PROMPTLY COMPLETE AND RETURN THE
PROXY/VOTING INSTRUCTION FORM BELOW
IN THE ENVELOPE PROVIDED
PLEASE SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED
ENVELOPE. EVERY PROPERLY SIGNED PROXY WILL BE VOTED IN THE MANNER SPECIFIED
HEREON AND, IN THE ABSENCE OF SPECIFICATION, WILL BE TREATED AS GRANTING
AUTHORITY TO VOTE "FOR" THE PROPOSALS.
PLEASE SIGN EXACTLY AS NAME APPEARS HEREON. WHEN SHARES ARE HELD BY JOINT
TENANTS, BOTH SHOULD SIGN. WHEN SIGNING AS ATTORNEY OR EXECUTOR, ADMINISTRATOR,
TRUSTEE OR GUARDIAN, PLEASE GIVE FULL TITLE AS SUCH. IF A CORPORATION, PLEASE
SIGN IN FULL CORPORATE NAME BY PRESIDENT OR OTHER AUTHORIZED OFFICER. IF A
PARTNERSHIP, PLEASE SIGN IN PARTNERSHIP NAME BY AUTHORIZED PERSON.
________________ _________________ ___________________________ ____________
SIGNATURE DATE SIGNATURE (JOINT OWNERS) (DATE)
<PAGE>
Proxy
THE RBB FUND, INC.
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS OF THE RBB FUND, INC. (THE
"COMPANY") FOR USE AT A SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON NOVEMBER
22, 1999, AT 10:00 A.M. EASTERN TIME, OR ANY ADJOURNMENTS OR POSTPONEMENTS
THEREOF, AT THE COMPANY'S OFFICES LOCATED AT 400 BELLEVUE PARKWAY, WILMINGTON,
DELAWARE 19809.
THE UNDERSIGNED HEREBY APPOINTS ____________________________ AND
_____________________, AND EACH OF THEM, WITH FULL POWER OF SUBSTITUTION, AS
PROXIES OF THE UNDERSIGNED TO VOTE AT THE ABOVE-STATED SPECIAL MEETING, AND AT
ALL ADJOURNMENTS OR POSTPONEMENTS THEREOF, ALL SHARES OF COMMON STOCK
REPRESENTING INTERESTS IN THE COMPANY'S N/I NUMERIC INVESTORS SMALL CAP VALUE
FUND (THE "FUND") HELD OF RECORD BY THE UNDERSIGNED ON SEPTEMBER 30, 1999, THE
RECORD DATE FOR THE MEETING, UPON THE FOLLOWING MATTERS AND UPON ANY OTHER
MATTER THAT MAY COME BEFORE THE MEETING, IN THEIR DISCRETION:
(1) Proposal to approve an amendment to the Advisory Agreement between the
Company and Numeric Investors L.P. with respect to the Fund.
[_] For [_] Against [_] Abstain
(2) In their discretion, the proxies are authorized to vote upon such other
business as may properly come before the Meeting.
PROMPTLY COMPLETE AND RETURN THE
PROXY/VOTING INSTRUCTION FORM BELOW
IN THE ENVELOPE PROVIDED
PLEASE SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED
ENVELOPE. EVERY PROPERLY SIGNED PROXY WILL BE VOTED IN THE MANNER SPECIFIED
HEREON AND, IN THE ABSENCE OF SPECIFICATION, WILL BE TREATED AS GRANTING
AUTHORITY TO VOTE "FOR" THE PROPOSALS.
PLEASE SIGN EXACTLY AS NAME APPEARS HEREON. WHEN SHARES ARE HELD BY JOINT
TENANTS, BOTH SHOULD SIGN. WHEN SIGNING AS ATTORNEY OR EXECUTOR, ADMINISTRATOR,
TRUSTEE OR GUARDIAN, PLEASE GIVE FULL TITLE AS SUCH. IF A CORPORATION, PLEASE
SIGN IN FULL CORPORATE NAME BY PRESIDENT OR OTHER AUTHORIZED OFFICER. IF A
PARTNERSHIP, PLEASE SIGN IN PARTNERSHIP NAME BY AUTHORIZED PERSON.
________________ _________________ ___________________________ ____________
SIGNATURE DATE SIGNATURE (JOINT OWNERS) (DATE)
<PAGE>
Proxy
THE RBB FUND, INC.
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS OF THE RBB FUND, INC. (THE
"COMPANY") FOR USE AT A SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON NOVEMBER
22, 1999 AT 10:00 A.M. EASTERN TIME, OR ANY ADJOURNMENTS OR POSTPONEMENTS
THEREOF, AT THE COMPANY'S OFFICES LOCATED AT 400 BELLEVUE PARKWAY, WILMINGTON,
DELAWARE 19809.
THE UNDERSIGNED HEREBY APPOINTS ____________________________ AND
____________________, AND EACH OF THEM, WITH FULL POWER OF SUBSTITUTION, AS
PROXIES OF THE UNDERSIGNED TO VOTE AT THE ABOVE-STATED SPECIAL MEETING, AND AT
ALL ADJOURNMENTS OR POSTPONEMENTS THEREOF, ALL SHARES OF COMMON STOCK
REPRESENTING INTERESTS IN THE COMPANY'S N/I NUMERIC INVESTORS GROWTH & VALUE
FUND (THE "FUND") HELD OF RECORD BY THE UNDERSIGNED ON SEPTEMBER 30, 1999, THE
RECORD DATE FOR THE MEETING, UPON THE FOLLOWING MATTERS AND UPON ANY OTHER
MATTER THAT MAY COME BEFORE THE MEETING, IN THEIR DISCRETION:
(1) Proposal to approve an amendment to the Advisory Agreement between the
Company and Numeric Investors L.P. with respect to the Fund.
[_] For [_] Against [_] Abstain
(2) In their discretion, the proxies are authorized to vote upon such other
business as may properly come before the Meeting.
PROMPTLY COMPLETE AND RETURN THE
PROXY/VOTING INSTRUCTION FORM BELOW
IN THE ENVELOPE PROVIDED
PLEASE SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED
ENVELOPE. EVERY PROPERLY SIGNED PROXY WILL BE VOTED IN THE MANNER SPECIFIED
HEREON AND, IN THE ABSENCE OF SPECIFICATION, WILL BE TREATED AS GRANTING
AUTHORITY TO VOTE "FOR" THE PROPOSALS.
PLEASE SIGN EXACTLY AS NAME APPEARS HEREON. WHEN SHARES ARE HELD BY JOINT
TENANTS, BOTH SHOULD SIGN. WHEN SIGNING AS ATTORNEY OR EXECUTOR, ADMINISTRATOR,
TRUSTEE OR GUARDIAN, PLEASE GIVE FULL TITLE AS SUCH. IF A CORPORATION, PLEASE
SIGN IN FULL CORPORATE NAME BY PRESIDENT OR OTHER AUTHORIZED OFFICER. IF A
PARTNERSHIP, PLEASE SIGN IN PARTNERSHIP NAME BY AUTHORIZED PERSON.
___________ ______________________ _____________________________ ___________
SIGNATURE DATE SIGNATURE (JOINT OWNERS) (DATE)
<PAGE>
Proxy
THE RBB FUND, INC.
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS OF THE RBB FUND, INC. (THE
"COMPANY") FOR USE AT A SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON NOVEMBER
22, 1999, AT 10:00 A.M. EASTERN TIME, OR ANY ADJOURNMENTS OR POSTPONEMENTS
THEREOF, AT THE COMPANY'S OFFICES LOCATED AT 400 BELLEVUE PARKWAY, WILMINGTON,
DELAWARE 19809.
THE UNDERSIGNED HEREBY APPOINTS _____________________________ AND
__________________, AND EACH OF THEM, WITH FULL POWER OF SUBSTITUTION, AS
PROXIES OF THE UNDERSIGNED TO VOTE AT THE ABOVE-STATED SPECIAL MEETING, AND AT
ALL ADJOURNMENTS OR POSTPONEMENTS THEREOF, ALL SHARES OF COMMON STOCK
REPRESENTING INTERESTS IN THE COMPANY'S N/I NUMERIC INVESTORS LARGER CAP VALUE
FUND (THE "FUND") HELD OF RECORD BY THE UNDERSIGNED ON SEPTEMBER 30, 1999, THE
RECORD DATE FOR THE MEETING, UPON THE FOLLOWING MATTERS AND UPON ANY OTHER
MATTER THAT MAY COME BEFORE THE MEETING, IN THEIR DISCRETION:
(1) Proposal to approve an amendment to the Advisory Agreement between the
Company and Numeric Investors L.P. with respect to the Fund.
[_] For [_] Against [_] Abstain
(2) In their discretion, the proxies are authorized to vote upon such other
business as may properly come before the Meeting.
PROMPTLY COMPLETE AND RETURN THE
PROXY/VOTING INSTRUCTION FORM BELOW
IN THE ENVELOPE PROVIDED
PLEASE SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED
ENVELOPE. EVERY PROPERLY SIGNED PROXY WILL BE VOTED IN THE MANNER SPECIFIED
HEREON AND, IN THE ABSENCE OF SPECIFICATION, WILL BE TREATED AS GRANTING
AUTHORITY TO VOTE "FOR" THE PROPOSALS.
PLEASE SIGN EXACTLY AS NAME APPEARS HEREON. WHEN SHARES ARE HELD BY JOINT
TENANTS, BOTH SHOULD SIGN. WHEN SIGNING AS ATTORNEY OR EXECUTOR, ADMINISTRATOR,
TRUSTEE OR GUARDIAN, PLEASE GIVE FULL TITLE AS SUCH. IF A CORPORATION, PLEASE
SIGN IN FULL CORPORATE NAME BY PRESIDENT OR OTHER AUTHORIZED OFFICER. IF A
PARTNERSHIP, PLEASE SIGN IN PARTNERSHIP NAME BY AUTHORIZED PERSON.
_______________ ___________________ _____________________________ __________
SIGNATURE DATE SIGNATURE (JOINT OWNERS) (DATE)
<PAGE>
Proxy
THE RBB FUND, INC.
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS OF THE RBB FUND, INC. (THE
"COMPANY") FOR USE AT A SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON NOVEMBER
22, 1999, AT 10:00 A.M. EASTERN TIME, OR ANY ADJOURNMENTS OR POSTPONEMENTS
THEREOF, AT THE COMPANY'S OFFICES LOCATED AT 400 BELLEVUE PARKWAY, WILMINGTON,
DELAWARE 19809.
THE UNDERSIGNED HEREBY APPOINTS ____________________________ AND
____________________, AND EACH OF THEM, WITH FULL POWER OF SUBSTITUTION, AS
PROXIES OF THE UNDERSIGNED TO VOTE AT THE ABOVE-STATED SPECIAL MEETING, AND AT
ALL ADJOURNMENTS OR POSTPONEMENTS THEREOF, ALL SHARES OF COMMON STOCK
REPRESENTING INTERESTS IN THE COMPANY'S N/I NUMERIC INVESTORS GROWTH FUND (THE
"FUND") HELD OF RECORD BY THE UNDERSIGNED ON SEPTEMBER 30, 1999, THE RECORD DATE
FOR THE MEETING, UPON THE FOLLOWING MATTERS AND UPON ANY OTHER MATTER THAT MAY
COME BEFORE THE MEETING, IN THEIR DISCRETION:
(1) Proposal to approve an amendment to the Advisory Agreement between the
Company and Numeric Investors L.P. with respect to the Fund.
[_] For [_] Against [_] Abstain
(2) In their discretion, the proxies are authorized to vote upon such other
business as may properly come before the Meeting.
PROMPTLY COMPLETE AND RETURN THE
PROXY/VOTING INSTRUCTION FORM BELOW
IN THE ENVELOPE PROVIDED
PLEASE SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED
ENVELOPE. EVERY PROPERLY SIGNED PROXY WILL BE VOTED IN THE MANNER SPECIFIED
HEREON AND, IN THE ABSENCE OF SPECIFICATION, WILL BE TREATED AS GRANTING
AUTHORITY TO VOTE "FOR" THE PROPOSALS.
PLEASE SIGN EXACTLY AS NAME APPEARS HEREON. WHEN SHARES ARE HELD BY JOINT
TENANTS, BOTH SHOULD SIGN. WHEN SIGNING AS ATTORNEY OR EXECUTOR, ADMINISTRATOR,
TRUSTEE OR GUARDIAN, PLEASE GIVE FULL TITLE AS SUCH. IF A CORPORATION, PLEASE
SIGN IN FULL CORPORATE NAME BY PRESIDENT OR OTHER AUTHORIZED OFFICER. IF A
PARTNERSHIP, PLEASE SIGN IN PARTNERSHIP NAME BY AUTHORIZED PERSON.
______________ __________________ _______________________________ __________
SIGNATURE DATE SIGNATURE (JOINT OWNERS) (DATE)
<PAGE>
EXHIBIT A
<PAGE>
INVESTMENT ADVISORY AGREEMENT
-----------------------------
n/i Small Cap Value Fund
AGREEMENT made as of November 30, 1998 between THE RBB FUND, INC., a
Maryland corporation (herein called the "Fund"), and Numeric Investors L.P.
(herein called the "Investment Adviser").
WHEREAS, the Fund is registered as an open-end, management investment
company under the Investment Company Act of 1940 (the "1940 Act") and currently
offers or proposes to offer shares representing interests in twenty-five
separate investment portfolios; and
WHEREAS, the Fund desires to retain the Investment Adviser to render
certain investment advisory services to the Fund with respect to the Fund's n/i
Small Cap Value Fund (the "Portfolio"), and the Investment Adviser is willing to
so render such services.
NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, and intending to be legally bound hereby, it is agreed between
the parties hereto as follows:
1. Appointment. The Fund hereby appoints the Investment Adviser to
-----------
act as investment adviser for the Portfolio for the period and on the terms set
forth in this Agreement. The Investment Adviser accepts such appointment and
agrees to render the services herein set forth, for the compensation herein
provided.
2. Delivery of Documents. The Fund has furnished the Investment
---------------------
Adviser with copies properly certified or authenticated of each of the
following:
(a) Resolutions of the Board of Directors of the Fund authorizing the
appointment of the Investment Adviser and the execution and delivery of this
Agreement;
(b) Each prospectus and statement of additional information relating
to any class of Shares representing interests in the Portfolio of the Fund in
effect under the 1933 Act (such prospectus and statement of additional
information, as presently in effect and as they shall from time to time be
amended and supplemented, are herein collectively called the "Prospectus" and
"Statement of Additional Information," respectively).
The Fund will promptly furnish the Investment Adviser
<PAGE>
from time to time with copies, properly certified or authenticated, of all
amendments of or supplements to the foregoing, if any.
In addition to the foregoing, the Fund will also provide the
Investment Adviser with copies of the Fund's Charter and By-laws, and any
registration statement or service contracts related to the Portfolio, and will
promptly furnish the Investment Adviser with any amendments of or supplements to
such documents.
3. Management of the Portfolio. Subject to the supervision of the
---------------------------
Board of Directors of the Fund, the Investment Adviser will provide for the
overall management of the Portfolio including (i) the provision of a continuous
investment program for the Portfolio, including investment research and
management with respect to all securities, investments, cash and cash
equivalents in the Portfolio, (ii) the determination from time to time of what
securities and other investments will be purchased, retained, or sold by the
Fund for the Portfolio, and (iii) the placement from time to time of orders for
all purchases and sales made for the Portfolio. The Investment Adviser will
provide the services rendered by it hereunder in accordance with the Portfolio's
investment objectives, restrictions and policies as stated in the applicable
Prospectus and the Statement of Additional Information, provided that the
Investment Adviser has actual or constructive notice or knowledge of any changes
by the Board of Directors to such investment objectives, restrictions or
policies. The Investment Adviser further agrees that it will render to the
Fund's Board of Directors such periodic and special reports regarding the
performance of its duties under this Agreement as the Board may reasonably
request. The Investment Adviser agrees to provide to the Fund (or its agents
and service providers) prompt and accurate data with respect to the Portfolio's
transactions and, where not otherwise available, the daily valuation of
securities in the Portfolio.
4. Brokerage. Subject to the Investment Adviser's obligation to
---------
obtain best price and execution, the Investment Adviser shall have full
discretion to select brokers or dealers to effect the purchase and sale of
securities. When the Investment Adviser places orders for the purchase or sale
of securities for the Portfolio, in selecting brokers or dealers to execute such
orders, the Investment Adviser is expressly authorized to consider the fact that
a broker or dealer has furnished statistical, research or other information or
services for the benefit of the Portfolio directly or indirectly. Without
limiting the generality of the foregoing, the Investment Adviser is authorized
to cause the Portfolio to pay brokerage commissions which may be in excess of
the lowest rates available to brokers who execute transactions for the Portfolio
or who otherwise provide brokerage and research services utilized by the
<PAGE>
Investment Adviser, provided that the Investment Adviser determines in good
faith that the amount of each such commission paid to a broker is reasonable in
relation to the value of the brokerage and research services provided by such
broker viewed in terms of either the particular transaction to which the
commission relates or the Investment Adviser's overall responsibilities with
respect to accounts as to which the Investment Adviser exercises investment
discretion. The Investment Adviser may aggregate securities orders so long as
the Investment Adviser adheres to a policy of allocating investment
opportunities to the Portfolio over a period of time on a fair and equitable
basis relative to other clients. In no instance will the Portfolio's securities
be purchased from or sold to the Fund's principal underwriter, the Investment
Adviser, or any affiliated person thereof, except to the extent permitted by SEC
exemptive order or by applicable law.
The Investment Adviser shall report to the Board of Directors of the
Fund at least quarterly with respect to brokerage transactions that were entered
into by the Investment Adviser, pursuant to the foregoing paragraph, and shall
certify to the Board that the commissions paid were reasonable in terms either
of that transaction or the overall responsibilities of the Adviser to the Fund
and the Investment Adviser's other clients, that the total commissions paid by
the Fund were reasonable in relation to the benefits to the Fund over the long
term, and that such commissions were paid in compliance with Section 28(e) of
the Securities Exchange Act of 1934.
5. Conformity with Law; Confidentiality. The Investment Adviser
------------------------------------
further agrees that it will comply with all applicable rules and regulations of
all federal regulatory agencies having jurisdiction over the Investment Adviser
in the performance of its duties hereunder. The Investment Adviser will treat
confidentially and as proprietary information of the Fund all records and other
information relating to the Fund and prior, present or potential shareholders
(except clients of the Investment Adviser and its affiliates), and will not use
such records and information for any purpose other than performance of its
responsibilities and duties hereunder, except after prior notification to and
approval in writing by the Fund, which approval shall not be unreasonably
withheld and may not be withheld where the Investment Adviser may be exposed to
civil or criminal contempt proceedings for failure to comply, when requested to
divulge such information by duly constituted authorities, or when so requested
by the Fund.
6. Services Not Exclusive. The Investment Adviser and its officers
----------------------
may act and continue to act as investment managers for others, and nothing in
this Agreement shall in any way be deemed to restrict the right of the
Investment Adviser to perform investment management or other services for any
other
<PAGE>
person or entity, and the performance of such services for others shall not be
deemed to violate or give rise to any duty or obligation to the Portfolio or the
Fund.
Nothing in this Agreement shall limit or restrict the Investment
Adviser or any of its partners, officers, affiliates or employees from buying,
selling or trading in any securities for its or their own account. The Fund
acknowledges that the Investment Adviser and its partners, officers, affiliates,
employees and other clients may, at any time, have, acquire, increase, decrease,
or dispose of positions in investments which are at the same time being acquired
or disposed of for the Portfolio. The Investment Adviser shall have no
obligation to acquire for the Portfolio a position in any investment which the
Investment Adviser, its partners, officers, affiliates or employees may acquire
for its or their own accounts or for the account of another client, so long as
it continues to be the policy and practice of the Investment Adviser not to
favor or disfavor consistently or consciously any client or class of clients in
the allocation of investment opportunities so that, to the extent practical,
such opportunities will be allocated among clients over a period of time on a
fair and equitable basis.
The Investment Adviser agrees that this Paragraph 6 does not
constitute a waiver by the Fund of the obligations imposed upon the Investment
Adviser to comply with Sections 17(d) and 17(j) of the 1940 Act, and the rules
thereunder, nor constitute a waiver by the Fund of the obligations imposed upon
the Investment Adviser under Section 206 of the Investment Advisers Act of 1940
and the rules thereunder. Further, the Investment Adviser agrees that this
Paragraph 6 does not constitute a waiver by the Fund of the fiduciary obligation
of the Investment Adviser arising under federal or state law, including Section
36 of the 1940 Act. The Investment Adviser agrees that this Paragraph 6 shall
be interpreted consistent with the provisions of Section 17(i) of the 1940 Act.
7. Books and Records. In compliance with the requirements of Rule
-----------------
31a-3 under the 1940 Act, the Investment Adviser hereby agrees that all records
which it maintains for the Portfolio are the property of the Fund and further
agrees to surrender promptly to the Fund any of such records upon the Fund's
request. The Investment Adviser further agrees to preserve for the periods
prescribed by Rule 31a-2 under the 1940 Act the records required to be
maintained by Rule 31a-1 under the 1940 Act.
8. Expenses. During the term of this Agreement, the Investment
--------
Adviser will pay all expenses incurred by it in connection with its activities
under this Agreement. The Portfolio shall bear all of its own expenses not
specifically assumed by the Investment Adviser. General expenses of the Fund
<PAGE>
not readily identifiable as belonging to a portfolio of the Fund shall be
allocated among all investment portfolios by or under the direction of the
Fund's Board of Directors in such manner as the Board determines to be fair and
equitable. Expenses borne by the Portfolio shall include, but are not limited
to, the following (or the portfolio's share of the following): (a) the cost
(including brokerage commissions) of securities purchased or sold by the
Portfolio and any losses incurred in connection therewith; (b) fees payable to
and expenses incurred on behalf of the Portfolio by the Investment Adviser; (c)
filing fees and expenses relating to the registration and qualification of the
Fund and the Portfolio's shares under Federal and/or state securities laws and
maintaining such registrations and qualifications; (d) fees and salaries payable
to the Fund's directors and officers; (e) taxes (including any income or
franchise taxes) and governmental fees; (f) costs of any liability and other
insurance or fidelity bonds; (g) any costs, expenses or losses arising out a
liability of or claim for damages or other relief asserted against the Fund or
the Portfolio for violation of any law; (h) legal, accounting and auditing
expenses, including legal fees of special counsel for the independent directors;
(i) charges of custodians and other agents; (j) expenses of setting in type and
printing prospectuses, statements of additional information and supplements
thereto for existing shareholders, reports, statements, and confirmations to
shareholders and proxy material that are not attributable to a class; (k) costs
of mailing prospectuses, statements of additional information and supplements
thereto to existing shareholders, as well as reports to shareholders and proxy
material that are not attributable to a class; (1) any extraordinary expenses;
(m) fees, voluntary assessments and other expenses incurred in connection with
membership in investment company organizations; (n) costs of mailing and
tabulating proxies and costs of shareholders' and directors' meetings; (o) costs
of independent pricing services to value a portfolio's securities; and (p) the
costs of investment company literature and other publications provided by the
Fund to its directors and officers. Distribution expenses, transfer agency
expenses, expenses of preparation, printing and mailing, prospectuses,
statements of additional information, proxy statements and reports to
shareholders, and organizational expenses and registration fees, identified as
belonging to a particular class of the Fund are allocated to such class.
If the expenses borne by the Portfolio in any fiscal year exceed the
most restrictive applicable expense limitations imposed by the securities
regulations of any state in which the Shares of the Portfolio are registered or
qualified for sale to the public, the Investment Adviser shall reimburse the
Portfolio for any excess up to the amount of the fees payable by the Portfolio
to it during such fiscal year pursuant to Paragraph 9 hereof in the same
proportion that its fees bear to the total
<PAGE>
fees paid by the Fund for investment advisory services in respect of the
Portfolio; provided, however, that notwithstanding the foregoing, the Investment
-------- -------
Adviser shall reimburse the Portfolio for such excess expenses regardless of the
amount of such fees payable to it during such fiscal year to the extent that the
securities regulations of any state in which the Shares are registered or
qualified for sale so require.
9. Voting. The Investment Adviser shall have the authority to vote
------
as agent for the Fund, either in person or by proxy, tender and take all actions
incident to the ownership of all securities in which Portfolio's assets may be
invested from time to time, subject to such policies and procedures as the Board
of Directors of the Fund may adopt from time to time.
10. Reservation of Name. The Investment Adviser shall at all times
-------------------
have all rights in and to the Portfolio's name and all investment models used by
or on behalf of the Portfolio. The Investment Adviser may use the Portfolio's
name or any portion thereof in connection with any other mutual fund or business
activity without the consent of any shareholder and the Fund shall execute and
deliver any and all documents required to indicate the consent of the Fund to
such use.
No public reference to, or description of, the Investment Adviser or
its methodology or work shall be made by the Fund, whether in the Prospectus,
Statement of Additional Information or otherwise, without the prior written
consent of the Investment Adviser, which consent shall not be unreasonably
withheld. In each case, the Fund shall provide the Investment Adviser a
reasonable opportunity to review any such reference or description before being
asked for such consent.
11. Discontinuation of Public Offering. Subject to the prior
----------------------------------
approval of the Fund's Board of Directors, the Investment Adviser may instruct
the Fund's distributor to cease sales of shares of the Portfolio to new
investors due to concerns that an increase in the size of the Portfolio may
adversely effect the implementation of the Portfolio's investment strategy.
Subject to prior Board approval, the Investment Adviser may subsequently
instruct the Fund's distributor to recommence the sale of shares of the
Portfolio.
12. Compensation.
------------
(a) For the services provided and the expenses assumed pursuant
to this Agreement with respect to the Portfolio, the Fund will pay the
Investment Adviser from the assets of the Portfolio and the Investment Adviser
will accept as full compensation therefor a fee, computed daily and payable
monthly, at the annual rate of .75% of the Portfolio's average daily net assets.
<PAGE>
(b) The fee attributable to the Portfolio shall be satisfied only
against assets of the Portfolio and not against the assets of any other
investment portfolio of the Fund.
13. Limitation of Liability of the Investment Adviser. The
-------------------------------------------------
Investment Adviser shall not be liable for any error of judgment or mistake of
law or for any loss suffered by the Fund in connection with the matters to which
this Agreement relates, except a loss resulting from a breach of fiduciary duty
with respect to the receipt of compensation for services or a loss resulting
from willful misfeasance, bad faith or gross negligence on the part of the
Investment Adviser in the performance of its duties or from reckless disregard
by it of its obligations and duties under this Agreement ("disabling conduct").
The Portfolio will indemnify the Investment Adviser against and hold it harmless
from any and all losses, claims, damages, liabilities or expenses (including
reasonable counsel fees and expenses) resulting from any claim, demand, action
or suit not resulting from disabling conduct by the Investment Adviser.
Indemnification shall be made only following: (i) a final decision on the merits
by a court or other body before whom the proceeding was brought that the
Investment Adviser was not liable by reason of disabling conduct or (ii) in the
absence of such a decision, a reasonable determination, based upon a review of
the facts, that the Investment Adviser was not liable by reason of disabling
conduct by (a) the vote of a majority of a quorum of directors of the Portfolio
who are neither "interested persons" of the Portfolio nor parties to the
proceeding ("disinterested non-party directors") or (b) an independent legal
counsel in a written opinion. The Investment Adviser shall be entitled to
advances from the Portfolio for payment of the reasonable expenses incurred by
it in connection with the matter as to which it is seeking indemnification in
the manner and to the fullest extent permissible under the Maryland General
Corporation Law. The Investment Adviser shall provide to the Portfolio a
written affirmation of its good faith belief that the standard of conduct
necessary for indemnification by the Portfolio has been met and a written
undertaking to repay any such advance if it should ultimately be determined that
the standard of conduct has not been met. In addition, at least one of the
following additional conditions shall be met: (a) the Investment Adviser shall
provide a security in form and amount acceptable to the Portfolio for its
undertaking; (b) the Portfolio is insured against losses arising by reason of
the advance; or (c) a majority of a quorum of disinterested non-party directors,
or independent legal counsel, in a written opinion, shall have determined, based
upon a review of facts readily available to the Portfolio at the time the
advance is proposed to be made, that there is reason to believe that the
Investment Adviser will ultimately be found to be entitled to indemnification.
Any amounts payable by the Portfolio under this Section shall be satisfied only
against the
<PAGE>
assets of the Portfolio and not against the assets of any other investment
portfolio of the Fund.
14. Duration and Termination. This Agreement shall become effective
------------------------
with respect to the Portfolio upon approval of this Agreement by vote of a
majority of the outstanding voting securities of the Portfolio and unless sooner
terminated as provided herein, shall continue with respect to the Portfolio
until August 16, 1999. Thereafter, if not terminated, this Agreement shall
continue with respect to the Portfolio for successive annual periods ending on
August 16, provided such continuance is specifically approved at least annually
--------
(a) by the vote of a majority of those members of the Board of Directors of the
Fund 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 on such
approval, and (b) by the Board of Directors of the Fund or by vote of a majority
of the outstanding voting securities of the Portfolio; provided, however, that
-------- -------
this Agreement may be terminated with respect to the Portfolio by the Fund at
any time, without the payment of any penalty, by the Board of Directors of the
Fund or by vote of a majority of the outstanding voting securities of the
Portfolio, on 60 days' prior written notice to the Investment Adviser, or by the
Investment Adviser at any time, without payment of any penalty, on 60 days'
prior written notice to the Fund. This Agreement will immediately terminate in
the event of its assignment. (As used in this Agreement, the terms "majority of
the outstanding voting securities," "interested person" and "assignment" shall
have the same meaning as such terms have in the 1940 Act).
15. Amendment of this Agreement. No provision of this Agreement may
---------------------------
be changed, discharged or terminated orally, except by an instrument in writing
signed by the party against which enforcement of the change, discharge or
termination is sought, and no amendment of this Agreement affecting the
Portfolio shall be effective until approved by vote of the holders of a majority
of the outstanding voting securities of the Portfolio.
16. Miscellaneous. The captions in this Agreement 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 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. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and shall be
governed by Delaware law.
17. Change in Membership. The Investment Adviser shall notify the
--------------------
Fund of any change in its membership within a reasonable time after such change.
<PAGE>
18. Counterparts. This agreement may be executed in two or more
------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
19. Governing Law. This Agreement shall be governed by and construed
-------------
and enforced in accordance with the laws of the state of Delaware without giving
effect to the conflicts of laws principles thereof.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to
be executed by their officers designated below as of the day and year first
above written.
THE RBB FUND, INC.
By: /s/ Edward J. Roach
--------------------
NUMERIC INVESTORS L.P.
By: /s/ Langdon B. Wheeler
----------------------
Langdon B. Wheeler
President, WBE & Associates, LLC
General Partner of
Numeric Investors L.P.
<PAGE>
THE RBB FUND, INC.
AMENDMENT NO. 1
TO
INVESTMENT ADVISORY AGREEMENT
WHEREAS, The RBB Fund, Inc. (the "Fund") and Numeric Investors L.P.
(the "Investment Advisor") desire to amend the Investment Advisory Agreement
("the Agreement") for the n/i numeric investors Small Cap Value Fund (the
"Portfolio") dated April 24, 1996 by and among them under which the Investment
Adviser renders investment advisory services to the Fund with respect to the
Portfolio; and
WHEREAS, the Investment Adviser continues to be willing to render
such services to the Fund with respect to the Portfolio;
The parties hereto, intending to be legally bound hereby, agree that
the Agreement is amended by substituting the following for Section 12 of the
Agreement as follows:
12. Compensation.
------------
(a) For the services provided and the expenses assumed pursuant
to the Agreement with respect to the Portfolio, until January 1, 2001, the Fund
will pay the Investment Adviser from the assets of the Portfolio and the
Investment Adviser will accept as full compensation therefor a fee, computed
daily and payable monthly, at the annual rate of 0.75% of the Portfolio's
average daily net assets.
(b) After January 1, 2001, the Portfolio will pay the Investment
Adviser from the assets of the Portfolio and the Investment Adviser will accept
as full compensation therefor fees calculated as follows:
(i) There shall be a fee, computed daily and payable
monthly, at the annual rate of 0.85% of the Portfolio's average daily net assets
(the "Base Fee"), provided, however, that if subparagraph (ii) below is
--------
applicable, the fee shall be calculated pursuant to subparagraph (iii) below.
(ii) After each calendar month, it shall be determined
whether the investment performance of the Portfolio (calculated in accordance
with subparagraph (v) below) has exceeded or lagged the Target (as hereinafter
defined) within the parameters of one of subparagraphs (A) through (E) during
the immediately preceding twelve months:
(A) the investment performance of the Portfolio was
equal to or lagged the Target;
(B) the investment performance of the Portfolio
exceeded the Target by more than 0 but not more than 100 basis points;
<PAGE>
(C) the investment performance of the Portfolio
exceeded the Target by more than 100 but not more than 200 basis points;
(D) the investment performance of the Portfolio
exceeded the Target by more than 200 but not more than 300 basis points;
(E) the investment performance of the Portfolio
exceeded the Target by more than 300 but not more than 400 basis points;
(F) the investment performance of the Portfolio
exceeded the Target by more than 400 but not more than 500 basis points;
(G) the investment performance of the Portfolio
exceeded the Target by more than 500 but not more than 600 basis points;
(H) the investment performance of the Portfolio
exceeded the Target by more than 600 but not more than 700 basis points;
(I) the investment performance of the Portfolio
exceeded the Target by more than 700 but not more than 800 basis points;
(J) the investment performance of the Portfolio
exceeded the Target by more than 800 but not more than 900 basis points; or
(K) the investment performance of the Portfolio
exceeded the Target by 900 basis points or more;
(iii) If subparagraph (ii) applies, the rate of the Base
Fee for such calendar month should be adjusted as follows:
(A) If subparagraph (ii)(A) applies, the annual rate of
the Base Fee shall be 0.35%;
(B) If subparagraph (ii)(B) applies, the annual rate of
the Base Fee shall be 0.45%;
(C) If subparagraph (ii)(C) applies, the annual rate of
the Base Fee shall be 0.55%;
(D) If subparagraph (ii)(D) applies, the annual rate of
the Base Fee shall be 0.65%;
(E) If subparagraph (ii)(E) applies, the annual rate of
the Base Fee shall be 0.75%;
<PAGE>
(F) If subparagraph (ii)(F) applies, the annual rate of
the Base Fee shall be 0.85%;
(G) If subparagraph (ii)(G) applies, the annual rate of
the Base Fee shall be 0.95%;
(H) If subparagraph (ii)(H) applies, the annual rate of
the Base Fee shall be 1.05%;
(I) If subparagraph (ii)(I) applies, the annual rate of
the Base Fee shall be 1.15%;
(J) If subparagraph (ii)(J) applies, the annual rate of
the Base Fee shall be 1.25%; or
(K) If subparagraph (ii)(K) applies, the annual rate of
the Base Fee shall be 1.35%.
(iv) The "Target" means the investment record of the Russell
2000 Value Index.
(v) The investment record of the Russell 2000 Value Index
shall be calculated in accordance with Rule 205-1(b) under the Investment
Advisers Act of 1940, as amended (the "Advisers Act") as such Rule shall be
amended from time to time or any successor regulation. The investment
performance of the Fund shall be calculated in accordance with Rule 205-1(a)
under the Advisers Act as such Rule shall be amended from time to time or any
successor regulation.
(c) The fee attributable to the Fund shall be satisfied only
against assets of the Portfolio and not against the assets of any other
investment portfolio of the Company.
IN WITNESS WHEREOF, intending to be legally bound hereby, the parties
hereto have caused this instrument to be executed by their officers designated
below as of ___________, 1999.
THE RBB FUND, INC.
By: ____________________
Its: ____________________
NUMERIC INVESTORS L.P.
By: ___________________
Its: ___________________
