EX-99.(K)(4) 9 d663859dex99k4.htm AMENDMENT NO. 3 TO THE FUND ACCOUNTING SERVICES AGREEMENT Amendment No. 3 to the Fund Accounting Services Agreement

Exhibit (k)(4)

Amendment No. 3

To

Fund Accounting Services Agreement

This Amendment No. 3 To Fund Accounting Services Agreement (“Amendment No. 3”), dated as of May 23, 2019 (“Effective Date”), is being entered into by and between The Bank of New York Mellon (“Fund Accounting Agent”) and each Fund identified on Exhibit A to this Amendment No. 3 on behalf of each of its Portfolios identified on Exhibit A. Capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the Original Agreement (as defined below).

Background

Fund Accounting Agent and certain of the Funds on behalf of certain of the Portfolios previously entered into the Fund Accounting Services Agreement made as of January 1, 2018, as amended (“Original Agreement”). The parties wish to amend the Original Agreement as set forth in this Amendment No. 3.

Terms

NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree to all statements made above and as follows:

1.    Modifications to Original Agreement.

(a)    Exhibit D. The Original Agreement is hereby amended to add a new Exhibit D - Additional Services attached to this Amendment No. 3.

(b)    Section 18(a)(1) Services.

(i)    Fund Accounting Agent shall provide for each Portfolio identified on Exhibit A as a recipient of Section 18(a)(1) Services and the Agreement is hereby amended to include the services more fully set forth under the subheading “Section 18(a)(1) Services” (“Section 18(a)(1) Services”) on Exhibit D.

(ii)    In carrying out the Section 18(a)(1) Services, Fund Accounting Agent shall not be responsible for: (a) inaccuracies of, errors in or omissions of, any data, procedures or methodologies required for the Section 18(a)(1) Services which are provided to it by a Portfolio, a Portfolio’s Manager or other entities unaffiliated with Fund Accounting Agent (collectively, for purposes of this Section 1(b), “Third Parties”) or (b) review of such data, procedures or methodologies provided to it by any Third Party.

(c)    Compliance Services.

(i)    Fund Accounting Agent shall provide for each Portfolio identified on Exhibit A as a recipient of Compliance Services and the Agreement is hereby amended to include the services more fully set forth under the subheading “Compliance Services” (“Compliance Services”) on Exhibit D.

(ii)    The precise compliance review and testing services to be provided shall be as directed by the applicable Portfolio and as mutually agreed between Fund Accounting Agent and such Portfolio, and the results of Fund Accounting Agent’s Compliance Services shall be detailed in a compliance summary report (the “Compliance Summary Report”) prepared on a periodic basis as mutually agreed. Each Compliance Summary Report shall be subject to review and approval by the applicable Portfolio. Fund Accounting Agent shall have no responsibility or obligation to provide Compliance Services other than those services specifically listed in Exhibit D.

 

1

(iii)    A Portfolio will examine each Compliance Summary Report delivered to it by Fund Accounting Agent and notify Fund Accounting Agent of any error, omission or discrepancy within ten (10) days of its receipt. Each Portfolio agrees to notify Fund Accounting Agent promptly in writing if it fails to receive any such Compliance Summary Report. Each Portfolio further acknowledges that unless it notifies Fund Accounting Agent of any error, omission or discrepancy within ten (10) days, such Compliance Summary Report shall be deemed final and shall not be reissued. In addition, if a Portfolio learns of any out-of-compliance condition before receiving a Compliance Summary Report reflecting such condition, the Portfolio will notify Fund Accounting Agent of such condition within one (1) business day after discovery thereof.

(iv)    Fund Accounting Agent will endeavor to identify out-of-compliance conditions with respect to the specific tests agreed between Fund Accounting Agent and the applicable Portfolio. A Fund’s sole and exclusive remedy with respect to errors or omissions in the performance of Compliance Services, absent willful misfeasance, bad faith or gross negligence, shall be limited to re-performance by Fund Accounting Agent of the Compliance Services affected and in connection therewith the correction of any error or omission, if practicable, and the preparation of a corrected report, at no cost to the Fund.

(d)    Exhibit A. The Original Agreement is hereby amended by deleting Exhibit A in its entirety and replacing it with the Exhibit A attached to this Amendment No. 3.

2.    Adoption of Amended Agreement by New Funds and New Portfolios. Each Fund and each Portfolio of a Fund that has been added to Exhibit A by virtue of this Amendment No. 3 acknowledges and agrees that (i) by virtue of its execution of this Amendment No. 3 it becomes and is a party to the Original Agreement as amended by this Amendment No. 3 (“Amended Agreement”) as of the Effective Date, or if Fund Accounting Agent commenced providing services to the Fund or Portfolio, respectively, prior to the Effective Date, as of the date Fund Accounting Agent first provided services to such Fund or Portfolio, respectively, (ii) it is bound by all terms and conditions of the Amended Agreement as of such date and (iii) the duly authorized officer of the Fund or Portfolio identified on the signature page annexed hereto has full power and authority to enter into this Amendment No. 3 on behalf of such Fund or Portfolio.

3.    Remainder of Original Agreement. Except as specifically modified by this Amendment No. 3, all terms and conditions of the Original Agreement shall remain in full force and effect.

4.    Governing Law. The governing law of the Original Agreement shall be the governing law of this Amendment No. 3.

5.    Entire Agreement. This Amendment No. 3 constitutes a complete, exclusive and fully integrated record of the agreement of the parties with respect to the subject matter herein and the amendment of the Original Agreement with respect to such subject matter.

6.    Facsimile Signatures; Counterparts. This Amendment No. 3 may be executed in one or more counterparts; such execution of counterparts may occur by manual signature, facsimile signature, manual signature transmitted by means of facsimile transmission or manual signature contained in an imaged document attached to an email transmission; and each such counterpart executed in accordance with the foregoing shall be deemed an original, with all such counterparts together constituting one and the same instrument. The exchange of executed copies of this Amendment No. 3 or of executed signature pages to this Amendment No. 3 by facsimile transmission or as an imaged document attached to an email transmission shall constitute effective execution and delivery hereof and may be used for all purposes in lieu of a manually executed copy of this Amendment No. 3.

 

2

IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 3 to be executed by their duly authorized officers, as of the Effective Date.

 

EACH FUND ON BEHALF OF EACH OF ITS PORTFOLIOS IDENTIFIED ON EXHIBIT A ANNEXED HERETO
By:  

         

Name:  

 

Title:  

 

THE BANK OF NEW YORK MELLON
By:  

         

Name:  

 

Title:  

 

 

3

EXHIBIT A1

(Dated: May 23, 2019)

This Exhibit A, amended and restated effective as of May 23, 2019, is Exhibit A to the Original Agreement, as amended through the Effective Date.

 

Funds/Portfolios

    Custodian      Manager/
Investment Advisor		  

Open-End Funds

      
Legg Mason Global Asset Management Trust      
BrandywineGLOBAL – Alternative Credit Fund      BNYM        Brandywine  
BrandywineGLOBAL – Diversified US Large Cap Value Fund      BNYM        Brandywine  
BrandywineGLOBAL – Dynamic US Large Cap Value Fund      BNYM        Brandywine  
BrandywineGLOBAL – Global Flexible Income Fund      BNYM        Brandywine  
BrandywineGLOBAL – Global High Yield Fund      BNYM        Brandywine  
BrandywineGLOBAL – Global Opportunities Bond Fund      BNYM        Brandywine  
Brandywine GLOBAL – Global Opportunities Bond Fund (USD Hedged)      BNYM        Brandywine  
BrandywineGLOBAL – Global Unconstrained Bond Fund      BNYM        Brandywine  
BrandywineGLOBAL – International Opportunities Bond Fund      BNYM        Brandywine  
ClearBridge International Growth Fund      BNYM        Clearbridge  
ClearBridge Small Cap Fund      BNYM        Clearbridge  
ClearBridge Value Trust      BNYM        Clearbridge  
Martin Currie Emerging Markets Fund      BNYM        Martin Currie  
Martin Currie International Unconstrained Equity Fund      BNYM        Martin Currie  
Martin Currie SMASh Series EM Fund      BNYM        Martin Currie  
QS Global Market Neutral Fund      BNYM        QS Investors  
QS International Equity Fund      BNYM        QS Investors  
QS Strategic Real Return Fund      BNYM        QS Investors  
QS U.S. Small Capitalization Equity Fund      BNYM        QS Investors  
RARE Global Infrastructure Value Fund      BNYM        RARE  
Legg Mason Partners Equity Trust      
ClearBridge Aggressive Growth Fund      BNYM        Clearbridge  
ClearBridge All Cap Value Fund      BNYM        Clearbridge  
ClearBridge Appreciation Fund      BNYM        Clearbridge  
ClearBridge Dividend Strategy Fund      BNYM        Clearbridge  
ClearBridge Energy MLP & Infrastructure Fund      BNYM        Clearbridge  
ClearBridge International Small Cap Fund      BNYM        Clearbridge  
ClearBridge International Value Fund      BNYM        Clearbridge  
ClearBridge Large Cap Growth Fund      BNYM        Clearbridge  
ClearBridge Large Cap Value Fund      BNYM        Clearbridge  
ClearBridge Mid Cap Fund      BNYM        Clearbridge  
ClearBridge Mid Cap Growth Fund      BNYM        Clearbridge  

 

1 

Note that open-end Funds, closed-end Funds and Cayman Islands Funds should be identified as such in Exhibit A.

 

4

ClearBridge Select Fund    BNYM    Clearbridge
ClearBridge Small Cap Growth Fund    BNYM    Clearbridge
ClearBridge Small Cap Value Fund    BNYM    Clearbridge
ClearBridge Sustainability Leaders Fund    BNYM    Clearbridge
ClearBridge Tactical Dividend Income Fund    BNYM    Clearbridge
EnTrustPermal Alternative Core Fund    BNYM    EntrustPermal
Legg Mason Adaptive Growth Fund    BNYM    QS Investors
Legg Mason Defensive Fund    BNYM    QS Investors
Legg Mason High Growth Fund    BNYM    QS Investors
Legg Mason Income Fund    BNYM    QS Investors
Legg Mason Low Volatility Fund    BNYM    QS Investors
QS Conservative Growth Fund    BNYM    QS Investors
QS Defensive Growth Fund    BNYM    QS Investors
QS Global Dividend Fund    BNYM    QS Investors
QS Global Equity Fund    BNYM    QS Investors
QS Growth Fund    BNYM    QS Investors
QS Moderate Growth Fund    BNYM    QS Investors
QS S&P 500 Index Fund    BNYM    QS Investors
QS U.S. Large Cap Equity Fund    BNYM    QS Investors
QS SMASh Series ID Fund    BNYM    QS Investors
Legg Mason Partners Income Trust      
Western Asset Adjustable Rate Income Fund    BNYM    Western Asset
Western Asset California Municipals Fund    BNYM    Western Asset
Western Asset Corporate Bond Fund    BNYM    Western Asset
Western Asset Emerging Markets Debt Fund    BNYM    Western Asset
Western Asset Global High Yield Bond Fund    BNYM    Western Asset
Western Asset Income Fund    BNYM    Western Asset
Western Asset Intermediate Maturity California Municipals Fund    BNYM    Western Asset
Western Asset Intermediate Maturity New York Municipals Fund    BNYM    Western Asset
Western Asset Intermediate-Term Municipals Fund    BNYM    Western Asset
Western Asset Managed Municipals Fund    BNYM    Western Asset
Western Asset Massachusetts Municipals Fund    BNYM    Western Asset
Western Asset Mortgage Backed Securities Fund    BNYM    Western Asset
Western Asset Municipal High Income Fund    BNYM    Western Asset
Western Asset New Jersey Municipals Fund    BNYM    Western Asset
Western Asset New York Municipals Fund    BNYM    Western Asset
Western Asset Oregon Municipals Fund    BNYM    Western Asset
Western Asset Pennsylvania Municipals Fund    BNYM    Western Asset
Western Asset Short Duration High Income Fund    BNYM    Western Asset
Western Asset Short Duration Municipal Income Fund    BNYM    Western Asset
Western Asset Short Term Yield Fund    BNYM    Western Asset
Western Asset Short-Term Bond Fund    BNYM    Western Asset
Legg Mason Partners Institutional Trust      
Western Asset Institutional Government Reserves    BNYM    Western Asset
Western Asset Institutional Liquid Reserves    BNYM    Western Asset
Western Asset Institutional U.S. Treasury Obligations Money Market Fund    BNYM    Western Asset
Western Asset Institutional U.S. Treasury Reserves    BNYM    Western Asset
Western Asset Select Tax Free Reserves    BNYM    Western Asset

 

5

Western Asset SMASh Series C Fund    BNYM    Western Asset
Western Asset SMASh Series EC Fund    BNYM    Western Asset
Western Asset SMASh Series M Fund    BNYM    Western Asset
Western Asset SMASh Series TF Fund    BNYM    Western Asset
Legg Mason Partners Money Market Trust      
Western Asset Government Reserves    BNYM    Western Asset
Western Asset New York Tax Free Money Market Fund    BNYM    Western Asset
Western Asset Prime Obligations Money Market Fund    BNYM    Western Asset
Western Asset Tax Free Reserves    BNYM    Western Asset
Western Asset U.S. Treasury Reserves    BNYM    Western Asset
Legg Mason Partners Premium Money Market Trust      
Western Asset Premium Liquid Reserves    BNYM    Western Asset
Western Asset Premium U.S. Treasury Reserves    BNYM    Western Asset
Legg Mason Partners Variable Equity Trust      
ClearBridge Variable Aggressive Growth Portfolio    BNYM    Western Asset
ClearBridge Variable Appreciation Portfolio    BNYM    Western Asset
ClearBridge Variable Dividend Strategy Portfolio    BNYM    Western Asset
ClearBridge Variable Large Cap Growth Portfolio    BNYM    Western Asset
ClearBridge Variable Large Cap Value Portfolio    BNYM    Western Asset
ClearBridge Variable Mid Cap Portfolio    BNYM    Western Asset
ClearBridge Variable Small Cap Growth Portfolio    BNYM    Western Asset
QS Legg Mason Dynamic Multi-Strategy VIT Portfolio    BNYM    Western Asset
QS Variable Conservative Growth    BNYM    Western Asset
QS Variable Growth    BNYM    Western Asset
QS Variable Moderate Growth    BNYM    Western Asset
Legg Mason Partners Variable Income Trust      
Western Asset Core Plus VIT Portfolio    BNYM    Western Asset
Western Asset Variable Global High Yield Bond Portfolio    BNYM    Western Asset
Master Portfolio Trust      
Government Portfolio    BNYM    Western Asset
Liquid Reserves Portfolio    BNYM    Western Asset
Short Term Yield Portfolio    BNYM    Western Asset
Tax Free Reserves Portfolio    BNYM    Western Asset
U.S. Treasury Obligations Portfolio    BNYM    Western Asset
U.S. Treasury Reserves Portfolio    BNYM    Western Asset
Western Asset Funds, Inc.      
Western Asset Core Bond Fund    BNYM    Western Asset
Western Asset Core Plus Bond Fund    BNYM    Western Asset
Western Asset High Yield Fund    BNYM    Western Asset
Western Asset Inflation Indexed Plus Bond Fund    BNYM    Western Asset
Western Asset Intermediate Bond Fund    BNYM    Western Asset
Western Asset Macro Opportunities Fund    BNYM    Western Asset
Western Asset Total Return Unconstrained Fund    BNYM    Western Asset

 

6

Open-End Funds (ETFs)

      
Legg Mason ETF Investment Trust      
BrandywineGLOBAL - Global Total Return ETF      BNYM        Brandywine  
ClearBridge All Cap Growth ETF      BNYM        Clearbridge  
ClearBridge Dividend Strategy ESG ETF      BNYM        Clearbridge  
ClearBridge Large Cap Growth ESG ETF      BNYM        Clearbridge  
Legg Mason Developed ex-US Diversified Core ETF      BNYM        QS Investors  
Legg Mason Emerging Markets Diversified Core ETF      BNYM        QS Investors  
Legg Mason Emerging Markets Low Volatility High Dividend ETF      BNYM        QS Investors  
Legg Mason Global Infrastructure ETF      BNYM        RARE  
Legg Mason International Low Volatility High Dividend ETF      BNYM        QS Investors  
Legg Mason Low Volatility High Dividend ETF      BNYM        QS Investors  
Legg Mason Small-Cap Quality Value ETF      BNYM        Royce & Associates  
Legg Mason US Diversified Core ETF      BNYM        QS Investors  
Western Asset Short Duration Income ETF      BNYM        Western Asset  
Western Asset Total Return ETF      BNYM        Western Asset  

Closed-End Funds

      
Clarion Partners Real Estate Income Fund Inc.*+#      BNYM        Clarion Partners  
ClearBridge MLP and Midstream Fund Inc.      BNYM        Clearbridge  
ClearBridge Energy Midstream Opportunity Fund Inc.      BNYM        Clearbridge  
ClearBridge Energy MLP and Midstream Total Return Fund Inc.      BNYM        Clearbridge  
BrandywineGLOBAL-Global Income Opportunities Fund Inc.      BNYM        Brandywine  
LMP Capital and Income Fund Inc.      BNYM        Clearbridge  
Western Asset Corporate Loan Fund Inc.      BNYM        Western Asset  
Western Asset Emerging Markets Debt Fund Inc.      BNYM        Western Asset  
Western Asset Global Corporate Defined Opportunity Fund Inc.      BNYM        Western Asset  
Western Asset Global High Income Fund Inc.      BNYM        Western Asset  
Western Asset High Income Fund II Inc.      BNYM        Western Asset  
Western Asset High Income Opportunity Fund Inc.      BNYM        Western Asset  
Western Asset High Yield Defined Opportunity Fund Inc.      BNYM        Western Asset  
Western Asset Intermediate Muni Fund Inc.      BNYM        Western Asset  

 

7

Western Asset Investment Grade Defined Opportunity Trust Inc.      BNYM        Western Asset  
Western Asset Investment Grade Income Fund Inc.      BNYM        Western Asset  
Western Asset Managed Municipals Fund Inc.      BNYM        Western Asset  
Western Asset Middle Market Debt Fund Inc.      BNYM        Western Asset  
Western Asset Middle Market Income Fund Inc.      BNYM        Western Asset  
Western Asset Mortgage Defined Opportunity Fund Inc.      BNYM        Western Asset  
Western Asset Municipal Defined Opportunity Trust Inc.      BNYM        Western Asset  
Western Asset Municipal High Income Fund Inc.      BNYM        Western Asset  
Western Asset Municipal Partners Fund Inc.      BNYM        Western Asset  
Western Asset Premier Bond Fund      BNYM        Western Asset  
Western Asset Variable Rate Strategic Fund Inc.      BNYM        Western Asset  
Western Asset Inflation-Linked Opportunities & Income Fund      BNYM        Western Asset  
Western Asset Inflation-Linked Income Fund      BNYM        Western Asset  

Cayman Island Funds

      
Western Asset Government Money Market Fund, Ltd.      BNYM        Western Asset  
Western Asset Institutional Cash Reserves, Ltd.      BNYM        Western Asset  
Western Asset Institutional Liquid Reserves, Ltd.      BNYM        Western Asset  
Western Asset Short Term Yield Fund, Ltd.      BNYM        Western Asset  
Western Asset U.S. Treasury Obligations Money Market Fund, Ltd.      BNYM        Western Asset  
Western Asset U.S. Treasury Reserves, Ltd.      BNYM        Western Asset  

Cayman Island Funds (CFCs)

      
Alternative Core Fund, Ltd.      
Permal Hedge Strategies Fund Ltd.      
Real Return Fund, Ltd.      
Western Asset Inflation-Linked Opportunities & Income Fund      BNYM        Western Asset  

 

*

Added to Exhibit as of the Effective Date

+

Recipient of Section 18(a)(1) Services

#

Recipient of Compliance Services

 

8

EXHIBIT D

ADDITIONAL SERVICES

Section 18(a)(1) Services.

A.    Based upon a Portfolio’s directed procedures and methodologies, Fund Accounting Agent shall calculate the leverage amount of exposure as such calculation is set forth and further described at Section 18 of the 1940 Act.

B.    As a Portfolio is limited in the amount of transactions that create leverage it can participate in, the amount calculated by Fund Accounting Agent in Section A above is for the particular Portfolio’s use in comparing to the unencumbered liquid asset amount for the Portfolio.

C.    It is understood that the calculation procedures and methodologies will be at the particular Portfolio’s direction and will be communicated to Fund Accounting Agent reasonably in advance of any calculation performed by Fund Accounting Agent. The Funds acknowledge that Fund Accounting Agent will not offer any default procedures or methodologies for this service.

Compliance Services.

In accordance with Proper Instructions received from a Portfolio, and subject to portfolio limitations as provided by such Portfolio to Fund Accounting Agent in writing from time to time, monitor such Portfolio’s compliance, on a post-trade basis, with such portfolio limitations, provided that Fund Accounting Agent maintains in the normal course of its business all data necessary to measure such compliance.

 

9