EX-99.(G)(2) 4 d661623dex99g2.htm SECOND AMENDMENT TO THE AMENDED AND RESTATED CUSTODY AGREEMENT Second Amendment to the Amended and Restated Custody Agreement

DOUBLELINE FUNDS TRUST

SECOND AMENDMENT TO THE

AMENDED AND RESTATED CUSTODY AGREEMENT

THIS SECOND AMENDMENT, dated as of November 20, 2013, to the Amended and Restated Custody Agreement dated as of January 29, 2013, as amended August 21, 2013 (the “Agreement”), is entered into by and between DOUBLELINE FUNDS TRUST, a Delaware statutory trust, (the “Trust”) and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America (the “Custodian”).

RECITALS

WHEREAS, the parties have entered into the Agreement; and

WHEREAS, the parties desire to amend the term of the Agreement and to amend the fees of the Agreement; and

WHEREAS, Article XV, Section 15.02 of the Agreement allows for its amendment by a written instrument executed by both parties and authorized or approved by the Board of Trustees.

NOW, THEREFORE, the parties agree as follows:

Article XIII, Section 13.01, Effective Period is superseded and replaced with the following:

13.01 Effective Period. This Agreement shall become effective as of the date first written above and will continue in effect through December 31, 2014.

Exhibit D of the Agreement is hereby superseded and replaced with Amended Exhibit D attached hereto.

Except to the extent amended hereby, the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be executed by a duly authorized officer on one or more counterparts as of the date and year first written above.

 

DOUBLELINE FUNDS TRUST

    

U.S. BANK NATIONAL ASSOCIATION

By:  

  /s/ Ronald R. Redell

     By:  

  /s/ Michael R. McVoy

Name: Ronald R. Redell     Name: Michael R. McVoy
Title: President     Title: Senior Vice President

 

 

11/2013    1   

Amended Exhibit D - Amended and Restated Custody Agreement DoubleLine Funds Trust

 

FUND ACCOUNTING, ADMINISTRATION SERVICES AND DOMESTIC CUSTODY FEE SCHEDULE

effective January 1, 2014

Annual Fee Based Upon Market Value of the Fund Complex:

2.50 basis points on the first $3 billion

2.00 basis points on the next $5 billion

1.50 basis points on the next $25 billion

1.5 1.00 basis points on the balance

Included in Annual Complex Fee:

¡ Advisor Information Source Web Portal access and reports
¡ Daily compliance testing (Charles River Investment Management)
¡ Start up legal administration services
¡ Daily performance reporting
¡ Legal administration for annual updates
¡ 15c-3 Reporting
¡ Chief Compliance Officer support

Portfolio Transaction Fees

$4.00 per book entry DTC transaction/Federal Reserve transaction/principal paydown

$6.00 per short sale

$7.00 per U.S. Bank repurchase agreement transaction

$8.00 per option/future contract written, exercised or expired

$15.00 per mutual fund trade/Fed wire/margin variation Fed wire

$25.00 per physical security transaction

$150.00 per segregated account per year

¡ A transaction is a purchase/sale of a security, free receipt/free delivery, maturity, tender or exchange.
¡ No charge for the initial conversion free receipt.
¡ Overdrafts – charged to the account at prime interest rate plus 2.

Out-Of-Pocket Expenses

Including but not limited to postage, stationery, programming, special reports, systems expenses, proxies, insurance, legal administration projects, EDGAR filing, retention of records, federal and state regulatory filing fees, certain insurance premiums, expenses from Board of directors meetings, third party auditing and legal expenses, pricing services, fair value pricing services, factor services, customized reporting, expenses incurred in the transfer fees, safekeeping, delivery and receipt of securities, shipping, and conversion expenses (if necessary).

¡ Pricing Services (Prices below are based on U.S Bancorp’s primary pricing service which may vary by security type and are subject to change. Use of alternative and/or additional sources may result in additional fees)
  – $0.07 Domestic and Canadian Equities/Options
  – $0.45 Corp/Gov/Agency Bonds/International Equities/Futures
  – $0.70 CMOs/Municipal Bonds/Money Market Instruments/International Bonds/Asset-Backed/Mortgage-Backed/High Yield Bonds
  – $1.00 /Fund per Day - Bank Loans
  – $2.25 /Fund per Day - Credit Default Swaps
  – $2.15 /Fund per Day - Basic Interest Rate Swaps
  – $125 /Fund per Month - Mutual Fund Pricing
  – $125 /Month Manual Security Pricing (>10/day)
  – No Charge – Corporate Action Services

 

 

11/2013    2   

Amended Exhibit D (continued) to the Amended and Restated Custody Agreement

DoubleLine Funds Trust

 

FUND ACCOUNTING, ADMINISTRATION SERVICES, AND DOMESTIC CUSTODY FEE SCHEDULE

at January 1, 2014

 

¡ Factor Services (BondBuyer)
  – $1.50 /CMO/Month
  – $0.25 /Mortgage Backed/Month
  – $300 /Month Minimum/Fund Group
¡ Fair Value Services (FT Interactive)
  – $0.60 on the First 100 Securities/Day
  – $0.44 on the Balance of Securities/Day

NOTE: Prices above are based on using IDC as the primary pricing service. Alternative source costs may vary. All schedules subject to change depending upon the use of derivatives – options, futures, short sales, etc.

Electronic Board Book Portal – Document Mall

$4,800/year (includes 10 “external” users) - waived

 

 

11/2013    3   

Amended Exhibit D (continued)

to the Amended and Restated Custody Agreement – DoubleLine Funds

 

GLOBAL SUB-CUSTODIAL SERVICES

ANNUAL FEE SCHEDULE at January 1, 2014

  
Country   Instrument  

Safekeeping

(BPS)

  

Transaction

Fee

            Country   Instrument  

Safekeeping

(BPS)

    

Transaction

Fee

  

Argentina

   All   12.00       $32            Lebanon   All     20.00        $72   

Australia

   All   1.00       $15            Lithuania   All     16.00        $40   

Austria

   All   1.70       $17            Luxembourg   All     3.20        $25   

Bahrain

   All   40.00       $112            Malaysia   All     2.90        $39   

Bangladesh

   All   32.00       $120            Mali*   All     32.00        $124   

Belgium

   All   1.20       $22            Malta   All     17.60        $60   

Benin*

   All   32.00       $124            Mauritius   All     24.00        $80   

Bermuda

   All   12.00       $48            Mexico   All     1.50        $10   

Botswana

   All   20.00       $40            Morocco   All     28.00        $80   

Brazil

   All   7.20       $17            Namibia   All     24.00        $40   

Bulgaria

   All   32.00       $64            Netherlands   All     1.50        $12   

Burkina Faso*

   All   32.00       $124            New Zealand   All     2.00        $26   

Canada

   All   1.00       $6            Niger*   All     32.00        $124   

Cayman Islands*

   All   0.80       $8            Nigeria   All     24.00        $40   

Channel Islands*

   All   1.20       $20            Norway   All     1.50        $22   

Chile

   All   16.00       $48            Oman   All     40.00        $112   

China“A” Shares

   All   9.60       $42            Pakistan   All     24.00        $80   

China“B” Shares

   All   9.60       $42            Peru   All     35.00        $85   

Columbia

   All   32.00       $80            Philippines   All     3.90        $36   

Costa Rica

   All   12.00       $48            Poland   All     12.00        $24   

Croatia

   All   28.00       $52            Portugal   All     4.80        $39   

Cyprus*

   All   12.00       $45            Qatar   All     36.00        $112   

Czech Republic

   All   9.60       $24            Romania   All     28.00        $80   

Denmark

   All   1.50       $24            Russia     Equities/Bonds       30.00        $165   

Ecuador

   All   28.00       $52            Russia   MINFINs     12.00        $40   

Egypt

   All   25.60       $64            Senegal*   All     32.00        $124   

Estonia

   All   5.60       $20            Singapore   All     1.50        $20   

Euromarkets(3)

   All   1.00       $4            Slovak Republic   All     20.00        $88   

Finland

   All   2.40       $22            Slovenia   All     20.00        $88   

France

   All   1.00       $15            South Africa   All     1.50        $8   

Germany

   All   1.00       $15            South Korea   All     4.80        $10   

Ghana

   All   20.00       $40            Spain   All     1.00        $15   

Greece

   All   7.20       $33            Sri Lanka   All     12.00        $48   

Guinea Bissau*

   All   40.00       $124            Swaziland   All     24.00        $40   

Hong Kong

   All   2.00       $25            Sweden   All     1.00        $22   

Hungary

   All   20.00       $60            Switzerland   All     1.00        $24   

Iceland

   All   12.00       $45            Taiwan   All     12.00        $64   

India

   All   8.00       $84            Thailand   All     2.90        $22   

Indonesia

   All   5.80       $68            Togo*   All     32.00        $124   

Ireland

   All   1.50       $15            Trinidad & Tobago*   All     24.00        $52   

Israel

   All   9.60       $29            Tunisia   All     32.00        $36   

Italy

   All   1.50       $24            Turkey   All     9.60        $10   

Ivory Coast

   All   32.00       $124            UAE   All     36.00        $104   

Jamaica*

   All   28.00       $40            United Kingdom   All     1.00        $5   

Japan

   All   1.00       $8            Ukraine   All     19.20        $29   

Jordan

   All   32.00       $100            Uruguay   All     40.00        $52   

Kazakhstan

   All   48.00       $120            Venezuela   All     32.00        $100   

Kenya

   All   24.00       $40            Vietnam*   All     32.00        $104   

Latvia

   Equities   12.00       $60            Zambia   All     24.00        $40   

Latvia

   Bonds   20.00       $72                                 

* Additional customer documentation and indemnification will be required prior to establishing accounts in these markets.

 

 

11/2013    4   

Amended Exhibit D (continued)

to the Amended and Restated Custody Agreement – DoubleLine Funds

 

Base Fee - A monthly base charge of $1,500 per account (fund) will apply.

¡ Euroclear – Eurobonds only. Eurobonds are held in Euroclear at a standard rate, but other types of securities (including but not limited to equities, domestic market debt and mutual funds) will be subject to a surcharge. In addition, certain transactions that are delivered within Euroclear or from a Euroclear account to a third party depository or settlement system, will be subject to a surcharge (surcharge schedule available upon request).
¡ For all other markets specified above, surcharges may apply if a security is held outside of the local market.

Straight Through Processing – fees waived.

Cash Transactions:

¡ 3rd Party Foreign Exchange – a Foreign Exchange transaction undertaken through a 3rd party will be charged $50.

Tax Reclamation Services: May be subject to additional charges depending upon the service level agreed. Tax reclaims that have been outstanding for more than 6 (six) months with the client will be charged $50 per claim.

Out of Pocket Expenses

¡ Charges incurred by U.S. Bank, N.A. for local taxes, stamp duties or other local duties and assessments, stock exchange fees, postage and insurance for shipping, facsimile reporting, extraordinary telecommunications fees, proxy services and other shareholder communications or other expenses which are unique to a country in which the client or its clients is investing will be passed along as incurred.
¡ A surcharge may be added to certain out-of-pocket expenses listed herein to cover handling, servicing and other administrative costs associated with the activities giving rise to such expenses. Also, certain expenses are charged at a predetermined flat rate.
¡ SWIFT reporting and message fees.

Fees are billed monthly

 

 

11/2013    5   

Amended Exhibit D (continued) to the Amended and Restated Custody Agreement

 

Schedule of Fees at January 1, 2014

for Services as

 

Bank Loan Custodian - DoubleLine Floating Rate Fund

 

Initial Acceptance Fee per Custodial Account:

Covers the complete review of all the transaction Agreements, establishment of the collateral database and report development. Payable at closing.

        $1,000.00   

 

Annual Administration Fee:

Compensation for the duties of custodian, collateral administrator and all other administrative and reporting functions under the documents. The fee is based on the quoted basis points times the simple average of the par value of the Collateral on the first and the last day of the Period. This schedule assumes that the custodial accounts will be invested in a U.S. Bank offered permitted investment as defined within the documents. Fee to be paid quarterly in arrears based on the actual number of days in the Period.

 

This schedule assumes a minimum annual administration fee of $5,000.

     

 

 

 

2.00 Basis Points

 

  

 

Loan Pricing:

Compensation for monthly pricing of loan positions. Fee payable monthly.

 

     

 

 

 

 

 

 

$14.00 per loan

 

(Monthly)

 

 

  

 

  

 

Out-of-Pocket Expenses:

Includes all related expenses, including but not limited to: postage, travel, counsel fees and disbursements. Payable at closing.

        AT COST   

Extraordinary fees are payable to the Trustee or Agent for duties or responsibilities not expected to be incurred at the outset of the transaction, not routine or customary, and not incurred in the ordinary course of Business. Payment of extraordinary fees is appropriate where particular inquiries, events or developments are unexpected, even if the possibility of such things could have been identified at the inception of the transaction.

 

 

11/2013    6   

Exhibit D (continued) to the Amended and Restated Custody Agreement

 

DoubleLine Funds Trust

Schedule of Fees

DoubleLine Floating Rate Fund

Loan Closing Services at January 1, 2014

Loan Closing and Settlement:

  Ø Primary, Secondary and Distressed
  ¡ Par and near par trade settlement
  ¡ Distressed loan settlement coordinated through legal counsel

 

  Ø Assignments, Participations and Nettings
  ¡ Trade settlement facilitated through LSTA and LMA documents and guidelines

 

  Ø Direct and Third-Party Settlement
  ¡ Follow-Up with Agent Banks on trade settlement
  ¡ Trade closing coordinated with Third-Party settlement agents

 

  Ø Reporting and Data Management
  ¡ Loan settlement daily pending trades
  ¡ Agreed Upon customized reports

 

Loan Trade Settlement Fees:

 

                  
                   ClearPar/TSI                             Paper   

Par / Near Par / Distressed

 

      $300         $350   

Allocations Included

 

      5         5   

Each Additional Allocation

 

      $50         $50   

Netting Trades

 

      $400         $400   

Extraordinary fees are payable to the Trustee or Agent for duties or responsibilities not expected to be incurred at the outset of the transaction, not routine or customary, and not incurred in the ordinary course of Business. Payment of extraordinary fees is appropriate where particular inquiries, events or developments are unexpected, even if the possibility of such things could have been identified at the inception of the transaction

 

 

11/2013    7   

Amended Exhibit D to the Amended and Restated Custody Agreement

 

U.S. BANK NATIONAL ASSOCIATION

Schedule of Fees at January 1, 2014

for Document Custodial Services for DoubleLine Floating Rate Fund

Acceptance Fee:

  ¡ U.S. Bank will charge an acceptance fee of $1,000.00 for the review and execution of the Custodial Agreement and initiating the procedures/controls.

File Receipt and Setup:

  — U.S. Bank will charge a file receipt and setup fee of $10.00 per document.

File Maintenance/Storage Fee:

  ¡ U.S. Bank will charge a file storage fee of $5.00 per file per month to store collateral files. The fee will be billed based on the number of collateral files held in the account at month-end.

Insert Fee :

  — U.S. Bank will charge an insert fee of $5.00 per document for inserting document files.

Release Fee:

  ¡ U.S. Bank will charge a processing fee of $10.00 for each individual file/document released.
  ¡ U.S. Bank will charge a rejected release request fee of $2.00. This fee applies to all release requests that cannot be processed due to incorrect information provided on the form by the servicer (i.e. wrong loan number, pool number, etc.) or for release requests for which the collateral file has already been released.
  ¡     

Transfer Fee:

  — U.S. Bank will charge a transfer fee of $5.00 per file per occurrence

File Reinstatement Fee:

  ¡ U. S. Bank will charge a reinstatement fee of $5.00 for each file/document reinstatement transaction processed. This includes re-review of the file to ensure appropriate documents returned.

Photocopies:

  ¡ U.S. Bank will charge $1.00 per page for copies initiated upon customer request.

Facsimiles:

  ¡ U.S. Bank will charge $1.00 per page for facsimiles initiated upon customer request.

Audit/Due Diligence:

  ¡ U.S. Bank will charge a fee of $350.00 per day when files need to be reviewed in connection with an audit or due diligence examination initiated by the customer.

Research Fee:

  ¡ U.S. Bank will charge a fee of $10.00 per file for research initiated by the customer.

Out-of-Pocket Expenses:

  All reasonable out-of-pocket expenses including shipping and counsel fees, if any, will be billed to the customer at cost.

 

 

11/2013    8