POLICYHOLDER NOTICE
Thank you for purchasing insurance from a member company of American
International Group, Inc. (AIG). The AIG member companies generally pay
compensation to brokers and independent agents, and may have paid compensation
in connection with your policy. You can review and obtain information about the
nature and range of compensation paid by AIG member companies to brokers and
independent agents in the United States by visiting our website at
www.aigproducercompensation.com or by calling AIG at 1-800-706-3102.
NATIONAL UNION FIRE INSURANCE COMPANY
OF PITTSBURGH, PA.
(A Stock Insurance Company, herein called the Underwriter)
175 Water Street
New York, NY 10038
INVESTMENT COMPANY BLANKET BOND
Bond No.: 965-95-57
DECLARATIONS
-------------------------------------------------------------------------------
Item 1. Name of Insured (herein called IXIS ADVISOR FUNDS (Formerly CDC
Insured): NVEST FUNDS)
399 BOYLSTON STREET
Principal Address BOSTON, MA 02116
-------------------------------------------------------------------------------
Item 2. Bond Period: from 12:01 a.m. December 15, 2006 to December 15, 2007
the effective date of the termination or cancellation of this bond,
standard time at the Principal Address as to each of said dates.
-------------------------------------------------------------------------------
Item 3. Limit of Liability--Subject to Sections 9, 10 and 12 hereof,
Limit of
Amount applicable to Liability Deductible
-------------------- ----------- ----------
Insuring Agreement (A)-FIDELITY $12,000,000 $25,000
Insuring Agreement (B)-AUDIT EXPENSE $ 250,000 $25,000
Insuring Agreement (C)-ON PREMISES $12,000,000 $25,000
Insuring Agreement (D)-IN TRANSIT $12,000,000 $25,000
Insuring Agreement (E)-FORGERY OR ALTERATION $12,000,000 $25,000
Insuring Agreement (F)-SECURITIES $12,000,000 $25,000
Insuring Agreement (G)-COUNTERFEIT CURRENCY $12,000,000 $25,000
Insuring Agreement (H)-STOP PAYMENT $ 500,000 $25,000
Insuring Agreement (I)-UNCOLLECTIBLE ITEMS OF DEPOSIT $12,000,000 $25,000
If "Not Covered" is inserted above opposite any specified Insuring
Agreement or Coverage, such Insuring Agreement or Coverage and any
other reference thereto in this bond shall be deemed to be deleted
therefrom.
-------------------------------------------------------------------------------
Item 4. Offices or Premises Covered--Offices acquired or established
subsequent to the effective date of this bond are covered according to
the terms of General Agreement A. All the Insured's offices or
premises in existence at the time this bond becomes effective are
covered under this bond except the offices or premises located as
follows: No Exceptions.
-------------------------------------------------------------------------------
Item 5. The liability of the Underwriter is subject to the terms of the
following riders attached hereto: Endorsements No.: 1, 2, 3, 4, 5, 6,
7, 8, 9, 10
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Item 6. The Insured by the acceptance of this bond gives to the Underwriter
terminating or cancelling prior bond(s) or policy(ies) No.(s)
625-17-52 such termination or cancellation to be effective as of the
time this bond becomes effective.
-------------------------------------------------------------------------------
Premium:$39,872
/s/ Elizabeth M. Tuck /s/ John Doyle
------------------------ ------------------------
SECRETARY PRESIDENT
/s/ John Doyle
-------------------------
AUTHORIZED REPRESENTATIVE
-------------------------- --------------------------
COUNTERSIGNATURE DATE COUNTERSIGNED AT
MARSH RISK AND INSURANCE SERVICES
200 CLARENDON STREET
BOSTON, MA 02116-1304
INVESTMENT COMPANY BLANKET BOND
The Underwriter, in consideration of an agreed premium, and subject to the
Declarations made a part hereof, the General Agreements, Conditions and
Limitations and other terms of this bond, agrees with the Insured, in
accordance with the Insuring Agreements hereof to which an amount of insurance
is applicable as set forth in Item 3 of the Declarations and with respect to
loss sustained by the Insured at any time but discovered during the Bond
Period, to indemnify and hold harmless the Insured for:
INSURING AGREEMENTS
(A)FIDELITY
Loss resulting from any dishonest or fraudulent act(s), including Larceny or
Embezzlement committed by an Employee, committed anywhere and whether committed
alone or in collusion with others, including loss of Property resulting from
such acts of an Employee, which Property is held by the Insured for any purpose
or in any capacity and whether so held gratuitously or not and whether or not
the Insured is liable therefor.
Dishonest or fraudulent act(s) as used in this Insuring Agreement shall mean
only dishonest or fraudulent act(s) committed by such Employee with the
manifest intent:
(a)to cause the Insured to sustain such loss; and
(b)to obtain financial benefit for the Employee, or for any other person or
organization intended by the Employee to receive such benefit, other
than salaries, commissions, fees, bonuses, promotions, awards, profit
sharing, pensions or other employee benefits earned in the normal course
of employment.
(B)AUDIT EXPENSE
Expense incurred by the Insured for that part of the costs of audits or
examinations required by any governmental regulatory authority to be conducted
either by such authority or by an independent accountant by reason of the
discovery of loss sustained by the Insured through any dishonest or fraudulent
act(s), including Larceny or Embezzlement of any of the Employees. The total
liability of the Underwriter for such expense by reason of such acts of any
Employee or in which such Employee is concerned or implicated or with respect
to any one audit or examination is limited to the amount stated opposite Audit
Expense in Item 3 of the Declarations; it being understood, however, that such
expense shall be deemed to be a loss sustained by the Insured through any
dishonest or fraudulent act(s), including Larceny or Embezzlement of one or
more of the Employees and the liability under this paragraph shall be in
addition to the Limit of liability stated in Insuring Agreement (A) in Item 3
of the Declarations.
(C)ON PREMISES
Loss of Property (occurring with or without negligence or violence) through
robbery, burglary, Larceny, theft, holdup, or other fraudulent means,
misplacement, mysterious unexplainable disappearance, damage thereto or
destruction thereof, abstraction or removal from the possession, custody or
control of the Insured, and loss of subscription, conversion, redemption or
deposit privileges through the misplacement or loss of Property, while the
Property is (or is supposed or believed by the Insured to be) lodged or
deposited within any offices or premises located anywhere, except in an office
listed in Item 4 of the Declarations or amendment thereof or in the mail or
with a carrier for hire other than an armored motor vehicle company, for the
purpose of transportation.
Offices and Equipment
(1)Loss of or damage to, furnishings, fixtures, stationery, supplies or
equipment, within any of the Insured's offices covered under this bond
caused by Larceny or theft in, or by burglary, robbery or holdup of such
office, or attempt thereat, or by vandalism or malicious mischief; or
1
(2)loss through damage to any such office by Larceny or theft in, or by
burglary, robbery or holdup of such office or attempt thereat, or to the
interior of any such office by vandalism or malicious mischief provided, in
any event, that the Insured is the owner of such offices, furnishings,
fixtures, stationery, supplies or equipment or is legally liable for such
loss or damage, always excepting, however, all loss or damage through fire.
(D)IN TRANSIT
Loss of Property (occurring with or without negligence or violence) through
robbery, Larceny, theft, holdup, misplacement, mysterious unexplainable
disappearance, being lost or otherwise made away with, damage thereto or
destruction thereof, and loss of subscription, conversion, redemption or
deposit privileges through the misplacement or loss of Property, while the
Property is in transit anywhere in the custody of any person or persons acting
as messenger, except while in the mail or with a carrier for hire, other than
an armored motor vehicle company, for the purpose of transportation, such
transit to begin immediately upon receipt of such Property by the transporting
person or persons, and to end immediately upon delivery thereof at destination.
(E)FORGERY OR ALTERATION
Loss through FORGERY or ALTERATION of, on or in any bills of exchange,
checks, drafts, acceptances, certificates of deposit, promissory notes, or
other written promises, orders or directions to pay sums certain in money, due
bills, money orders, warrants, orders upon public treasuries, letters of
credit, written instructions, advices or applications directed to the Insured,
authorizing or acknowledging the transfer, payment, delivery or receipt of
funds or Property, which instructions or advices or applications purport to
have been signed or endorsed by any customer of the Insured, shareholder or
subscriber to shares, whether certificated or uncertificated, of any Investment
Company or by any financial or banking institution or stockbroker but which
instructions, advices or applications either bear the forged signature or
endorsement or have been altered without the knowledge and consent of such
customer, shareholder or subscriber to shares, whether certificated or
uncertificated, of an Investment Company, financial or banking institution or
stockbroker, withdrawal orders or receipts for the withdrawal of funds or
Property, or receipts or certificates of deposit for Property and bearing the
name of the Insured as issuer, or of another Investment Company for which the
Insured acts as agent, excluding, however, any loss covered under Insuring
Agreement (F) hereof whether or not coverage for Insuring Agreement (F) is
provided for in the Declarations of this bond.
Any check or draft (a) made payable to a fictitious payee and endorsed in
the name of such fictitious payee or (b) procured in a transaction with the
maker or drawer thereof or with one acting as an agent of such maker or drawer
or anyone impersonating another and made or drawn payable to the one so
impersonated and endorsed by anyone other than the one impersonated, shall be
deemed to be forged as to such endorsement.
Mechanically reproduced facsimile signatures are treated the same as
handwritten signatures.
(F)SECURITIES
Loss sustained by the Insured, including loss sustained by reason of a
violation of the constitution, by-laws, rules or regulations of any Self
Regulatory Organization of which the Insured is a member or which would have
been imposed upon the Insured by the constitution, by-laws, rules or
regulations of any Self Regulatory Organization if the Insured had been a
member thereof,
2
(1)through the Insured's having, in good faith and in the course of business,
whether for its own account or for the account of others, in any
representative, fiduciary, agency or any other capacity, either gratuitously
or otherwise, purchased or otherwise acquired, accepted or received, or sold
or delivered, or given any value, extended any credit or assumed any
liability, on the faith of, or otherwise acted upon, any securities,
documents or other written instruments which prove to have been
(a) counterfeited, or
(b) forged as to the signature of any maker, drawer, issuer, endorser,
assignor, lessee, transfer agent or registrar, acceptor, surety or guarantor
or as to the signature of any person signing in any other capacity, or
(c) raised or otherwise altered, or lost, or stolen, or
(2)through the Insured's having, in good faith and in the course of business,
guaranteed in writing or witnessed any signatures whether for valuable
consideration or not and whether or not such guaranteeing or witnessing is
ultra vires the Insured, upon any transfers, assignments, bills of sale,
powers of attorney, guarantees, endorsements or other obligations upon or in
connection with any securities, documents or other written instruments and
which pass or purport to pass title to such securities, documents or other
written instruments; EXCLUDING, losses caused by FORGERY or ALTERATION of,
on or in those instruments covered under Insuring Agreement (E) hereof.
Securities, documents or other written instruments shall be deemed to mean
original (including original counterparts) negotiable or non-negotiable
agreements which in and of themselves represent an equitable interest,
ownership, or debt, including an assignment thereof which instruments are in
the ordinary course of business, transferable by delivery of such agreements
with any necessary endorsement or assignment.
The word "counterfeited" as used in this Insuring Agreement shall be deemed
to mean any security, document or other written instrument which is intended
to deceive and to be taken for an original.
Mechanically produced facsimile signatures are treated the same as
handwritten signatures.
(G)COUNTERFEIT CURRENCY
Loss through the receipt by the Insured, in good faith, of any counterfeited
money orders or altered paper currencies or coin of the United States of
America or Canada issued or purporting to have been issued by the United States
of America or Canada or issued pursuant to a United States of America or
Canadian statute for use as currency.
(H)STOP PAYMENT
Loss against any and all sums which the Insured shall become obligated to
pay by reason of the Liability imposed upon the Insured by law for damages:
For having either complied with or failed to comply with any written notice
of any customer, shareholder or subscriber of the Insured or any Authorized
Representative of such customer, shareholder or subscriber to stop payment
of any check or draft made or drawn by such customer, shareholder or
subscriber or any Authorized Representative of such customer, shareholder or
subscriber, or
3
For having refused to pay any check or draft made or drawn by any customer,
shareholder or subscriber of the Insured or any Authorized Representative of
such customer, shareholder or subscriber.
(I)UNCOLLECTIBLE ITEMS OF DEPOSIT
Loss resulting from payments of dividends or fund shares, or withdrawals
permitted from any customer's, shareholder's or subscriber's account based upon
Uncollectible Items of Deposit of a customer, shareholder or subscriber
credited by the Insured or the Insured's agent to such customer's,
shareholder's or subscriber's Mutual Fund Account; or
loss resulting from any Item of Deposit processed through an Automated
Clearing House which is reversed by the customer, shareholder or subscriber and
deemed uncollectible by the Insured.
Loss includes dividends and interest accrued not to exceed 15% of the
Uncollectible Items which are deposited.
This Insuring Agreement applies to all Mutual Funds with "exchange
privileges" if all Fund(s) in the exchange program are insured by a National
Union Fire Insurance Company of Pittsburgh, PA for Uncollectible Items of
Deposit. Regardless of the number of transactions between Fund(s), the minimum
number of days of deposit within the Fund(s) before withdrawal as declared in
the Fund(s) prospectus shall begin from the date a deposit was first credited
to any Insured Fund(s).
GENERAL AGREEMENTS
A. ADDITIONAL OFFICES OR EMPLOYEES-CONSOLIDATION OR MERGER-NOTICE
1. If the Insured shall, while this bond is in force, establish any
additional office or offices, such office or offices shall be
automatically covered hereunder from the dates of their establishment,
respectively. No notice to the Underwriter of an increase during any
premium period in the number of offices or in the number of Employees at
any of the offices covered hereunder need be given and no additional
premium need be paid for the remainder of such premium period.
2. If an Investment Company, named as Insured herein, shall, while this
bond is in force, merge or consolidate with, or purchase the assets of
another institution, coverage for such acquisition shall apply
automatically from the date of acquisition. The Insured shall notify the
Underwriter of such acquisition within 60 days of said date, and an
additional premium shall be computed only if such acquisition involves
additional offices or employees.
B. WARRANTY
No statement made by or on behalf of the Insured, whether contained in the
application or otherwise, shall be deemed to be a warranty of anything except
that it is true to the best of the knowledge and belief of the person making
the statement.
C. COURT COSTS AND ATTORNEYS' FEES (Applicable to all Insuring Agreements or
Coverages now or hereafter forming part of this bond)
The Underwriter will indemnify the Insured against court costs and
reasonable attorneys' fees incurred and paid by the Insured in defense, whether
or not successful, whether or not fully litigated on the merits and whether or
not settled of any suit or legal proceeding brought against the Insured to
enforce the Insured's
4
liability or alleged liability on account of any loss, claim or damage which,
if established against the Insured, would constitute a loss sustained by the
Insured covered under the terms of this bond provided, however, that with
respect to Insuring Agreement (A) this indemnity shall apply only in the event
that
(1)an Employee admits to being guilty of any dishonest or fraudulent
act(s), including Larceny or Embezzlement; or
(2)an Employee is adjudicated to be guilty of any dishonest or fraudulent
act(s), including Larceny or Embezzlement;
(3)in the absence of (1) or (2) above an arbitration panel agrees, after a
review of an agreed statement of facts, that an Employee would be found
guilty of dishonesty if such Employee were prosecuted.
The Insured shall promptly give notice to the Underwriter of any such suit
or legal proceeding and at the request of the Underwriter shall furnish it with
copies of all pleadings and other papers therein. At the Underwriter's election
the Insured shall permit the Underwriter to conduct the defense of such suit or
legal proceeding, in the Insured's name, through attorneys of the Underwriter's
selection. In such event, the Insured shall give all reasonable information and
assistance which the Underwriter shall deem necessary to the proper defense of
such suit or legal proceeding.
If the amount of the Insured's liability or alleged liability is greater
than the amount recoverable under this bond, or if a Deductible Amount is
applicable, or both, the liability of the Underwriter under this General
Agreement is limited to the proportion of court costs and attorneys' fees
incurred and paid by the Insured or by the Underwriter that the amount
recoverable under this bond bears to the total of such amount plus the amount
which is not so recoverable. Such indemnity shall be in addition to the Limit
of Liability for the applicable Insuring Agreement or Coverage.
D. FORMER EMPLOYEE
Acts of an Employee, as defined in this bond, are covered under Insuring
Agreement (A) only while the Employee is in the Insured's employ. Should loss
involving a former Employee of the Insured be discovered subsequent to the
termination of employment, coverage would still apply under insuring Agreement
(A) if the direct proximate cause of the loss occurred while the former
Employee performed duties within the scope of his/her employment.
THE FOREGOING INSURING AGREEMENTS AND
GENERAL AGREEMENTS ARE SUBJECT TO
THE FOLLOWING CONDITIONS
AND LIMITATIONS:
SECTION 1. DEFINITIONS
The following terms, as used in this bond, shall have the respective
meanings stated in this Section:
(a)"Employee" means:
(1)any of the Insured's officers, partners, or employees, and
(2)any of the officers or employees of any predecessor of the
Insured whose principal assets are acquired by the Insured by
consolidation or merger with, or purchase of assets or capita!
stock of such predecessor, and
(3)attorneys retained by the Insured to perform legal services for
the Insured and the employees of such attorneys while such
attorneys or the employees of such attorneys are performing such
services for the Insured, and
5
(4)guest students pursuing their studies or duties in any of the
Insured's offices, and
(5)directors or trustees of the Insured, the investment advisor,
underwriter (distributor), transfer agent, or shareholder
accounting record keeper, or administrator authorized by written
agreement to keep financial and/or other required records, but
only while performing acts coming within the scope of the usual
duties of an officer or employee or while acting as a member of
any committee duly elected or appointed to examine or audit or
have custody of or access to the Property of the Insured, and
(6}any individual or individuals assigned to perform the usual
duties of an employee within the premises of the Insured, by
contract, or by any agency furnishing temporary personnel on a
contingent or part-time basis, and
(7)each natural person, partnership or corporation authorized by
written agreement with the Insured to perform services as
electronic data processor of checks or other accounting records
of the Insured, but excluding any such processor who acts as
transfer agent or in any other agency capacity in issuing checks,
drafts or securities for the Insured, unless included under
Sub-section (9) hereof, and
(8)those persons so designated in Section 15, Central Handling of
Securities, and
(9)any officer, partner or Employee of
a) an investment advisor,
b) an underwriter (distributor),
c) a transfer agent or shareholder accounting record-keeper, or
d) an administrator authorized by written agreement to keep
financial and/or other required records,
for an Investment Company named as Insured while performing acts
coming within the scope of the usual duties of an officer or
Employee of any Investment Company named as Insured herein, or
while acting as a member of any committee duly elected or
appointed to examine or audit or have custody of or access to the
Property of any such Investment Company, provided that only
Employees or partners of a transfer agent, shareholder accounting
record-keeper or administrator which is an affiliated person as
defined in the Investment Company Act of 1940, of an Investment
Company named as Insured or is an affiliated person of the
adviser, underwriter or administrator of such Investment Company,
and which is not a bank, shall be included within the definition
of Employee.
Each employer of temporary personnel or processors as set forth
in Sub-Sections (6) and of Section 1 (a) and their partners,
officers and employees shall collectively be deemed to be one
person for all the purposes of this bond, excepting, however, the
last paragraph of Section 13. Brokers, or other agents under
contract or representatives of the same general character shall
not be considered Employees.
6
(b)"Property" means money (i.e., currency, coin, bank notes, Federal
Reserve notes), postage and revenue stamps, U.S. Savings Stamps,
bullion, precious metals of all kinds and in any form and articles
made therefrom, jewelry, watches, necklaces, bracelets, gems,
precious and semi-precious stones, bonds, securities, evidences of
debts, debentures, scrip, certificates, interim receipts, warrants,
rights, puts, calls, straddles, spreads, transfers, coupons, drafts,
bills of exchange, acceptances, notes, checks, withdrawal orders,
money orders, warehouse receipts, bills of lading, conditional sales
contracts, abstracts of title, insurance policies, deeds, mortgages
under real estate and/or chattels and upon interests therein, and
assignments of such policies, mortgages and instruments, and other
valuable papers, including books of account and other records used by
the Insured in the conduct of its business, and all other instruments
similar to or in the nature of the foregoing including Electronic
Representations of such instruments enumerated above (but excluding
all data processing records) in which the Insured has an interest or
in which the Insured acquired or should have acquired an interest by
reason of a predecessor's declared financial condition at the time of
the Insured's consolidation or merger with, or purchase of the
principal assets of, such predecessor or which are held by the
Insured for any purpose or in any capacity and whether so held by the
Insured for any purpose or in any capacity and whether so held
gratuitously or not and whether or not the Insured is liable therefor.
(c)"Forgery" means the signing of the name of another with intent to
deceive; it does not include the signing of one's own name with or
without authority, in any capacity, for any purpose.
(d)"Larceny and Embezzlement" as it applies to any named Insured means
those acts as set forth in Section 37 of the Investment Company Act
of 1940.
(e)"Items of Deposit" means any one or more checks and drafts. Items of
Deposit shall not be deemed uncollectible until the Insured's
collection procedures have failed.
SECTION 2. EXCLUSIONS
THIS BOND DOES NOT COVER:
(a)loss effected directly or indirectly by means of forgery or
alteration of, on or in any instrument, except when covered by
Insuring Agreement (A), (E), (F) or (G).
(b)loss due to riot or civil commotion outside the United States of
America and Canada; or loss due to military, naval or usurped power,
war or insurrection unless such loss occurs in transit in the
circumstances recited in Insuring Agreement (D), and unless, when
such transit was initiated, there was no knowledge of such riot,
civil commotion, military, naval or usurped power, war or
insurrection on the part of any person acting for the Insured in
initiating such transit.
(c)loss, in time of peace or war, directly or indirectly caused by or
resulting from the effects of
7
nuclear fission or fusion or radioactivity; provided, however, that
this paragraph shall not apply to loss resulting from industrial uses
of nuclear energy.
(d)loss resulting from any wrongful act or acts of any person who is a
member of the Board of Directors of the Insured or a member of any
equivalent body by whatsoever name known unless such person is also
an Employee or an elected official, partial owner or partner of the
Insured in some other capacity, nor, in any event, loss resulting
from the act or acts of any person while acting in the capacity of a
member of such Board or equivalent body.
(e)loss resulting from the complete or partial non-payment of, or
default upon, any loan or transaction in the nature of, or amounting
to, a loan made by or obtained from the Insured or any of its
partners, directors or Employees, whether authorized or unauthorized
and whether procured in good faith or through trick, artifice, fraud
or false pretenses, unless such loss is covered under Insuring
Agreement (A), (E) or (F).
(f)loss resulting from any violation by the Insured or by any Employee
(1)of law regulating (a) the issuance, purchase or sale of
securities, (b) securities transactions upon Security Exchanges
or over the counter market, (c) Investment Companies, or
(d) Investment Advisors, or
(2)of any rule or regulation made pursuant to any such law, unless
such loss, in the absence of such laws, rules or regulations,
would be covered under Insuring Agreements (A) or (E).
(g)loss of Property or loss of privileges through the misplacement or
loss of Property as set forth in insuring Agreement (C) or (D) while
the Property is in the custody of any armored motor vehicle company,
unless such loss shall be in excess of the amount recovered or
received by the Insured under (a) the Insured's contract with said
armored motor vehicle company, (b) insurance carried by said armored
motor vehicle company for the benefit of users of its service, and
(c) all other insurance and indemnity in force in whatsoever form
carried by or for the benefit of users of said armored motor vehicle
company's service, and then this bond shall cover only such excess.
(h)potential income, including but not limited to interest and
dividends, not realized by the Insured because of a loss covered
under this bond, except as included under Insuring Agreement (I).
(i)all damages of any type for which the Insured is legally liable,
except direct compensatory damages arising from a loss covered under
this bond.
(j)loss through the surrender of Property away from an office of the
Insured as a result of a threat
(1)to do bodily harm to any person, except loss of Property in
transit in the custody of any person acting as messenger provided
that when such transit was initiated there was no knowledge by
the Insured of any such threat, or
(2)to do damage to the premises or Property of the Insured, except
when covered under Insuring Agreement (A).
8
(k)ail costs, fees and other expenses incurred by the Insured in
establishing the existence of or amount of loss covered under this
bond unless such indemnity is provided for under Insuring Agreement
(B).
(I)loss resulting from payments made or withdrawals from the account of
a customer of the Insured, shareholder or subscriber to shares
involving funds erroneously credited to such account, unless such
payments are made to or withdrawn by such depositor or representative
of such person, who is within the premises of the drawee bank of the
Insured or within the office of the Insured at the time of such
payment or withdrawal or unless such payment is covered under
Insuring Agreement (A).
(m)any loss resulting from Uncollectible Items of Deposit which are
drawn from a financial institution outside the fifty states of the
United States of America, District of Columbia, and territories and
possessions of the United States of America, and Canada.
SECTION 3. ASSIGNMENT OF RIGHTS
This bond does not afford coverage in favor of any Employers of temporary
personnel or of processors as set forth in sub-sections (6) and (7) of
Section 1(a) of this bond, as aforesaid, and upon payment to the Insured by
the Underwriter on account of any loss through dishonest or fraudulent
act(s) including Larceny or Embezzlement committed by any of the partners,
officers or employees of such Employers, whether acting alone or in
collusion with others, an assignment of such of the Insured's rights and
causes of action as it may have against such Employers by reason of such
acts so committed shall, to the extent of such payment, be given by the
Insured to the Underwriter, and the Insured shall execute alt papers
necessary to secure to the Underwriter the rights herein provided for.
SECTION 4. LOSS -NOTICE -PROOF-LEGAL PROCEEDINGS
This bond is for the use and benefit only of the Insured named in the
Declarations and the Underwriter shall not be liable hereunder for loss
sustained by anyone other than the Insured unless the Insured, in its sole
discretion and at its option, shall include such loss in the Insured's proof
of loss. At the earliest practicable moment after discovery of any loss
hereunder the Insured shall give the Underwriter written notice thereof and
shall also within six months after such discovery furnish to the Underwriter
affirmative proof of loss with full particulars. If claim is made under this
bond for loss of securities or shares, the Underwriter shall not be liable
unless each of such securities or shares is identified in such proof of loss
by a certificate or bond number or, where such securities or shares are
uncertificated, by such identification means as agreed to by the
Underwriter. The Underwriter shall have thirty days after notice and proof
of loss within which to investigate the claim, but where the loss is clear
and undisputed, settlement shall be made within forty-eight hours; and this
shall apply notwithstanding the loss is made up wholly or in part of
securities of which duplicates may be obtained. Legal proceedings for
recovery of any loss hereunder shall not be brought prior to the expiration
of sixty days after such proof of loss is filed with the Underwriter nor
after the expiration of twenty-four months from the discovery of such loss,
except that any action or proceeding to recover hereunder on account of any
judgment against the Insured in any suit mentioned in General Agreement C or
to recover attorneys' fees
9
paid in any such suit, shall be begun within twenty-four months from the
date upon which the judgment in such suit shall become final. If any
limitation embodied in this bond is prohibited by any law controlling the
construction hereof, such limitation shall be deemed to be amended so as to
be equal to the minimum period of limitation permitted by such law.
Discovery occurs when the Insured
(a)becomes aware of facts, or
(b)receives written notice of an actual or potential claim by a third
party which alleges that the Insured is liable under circumstance
which would cause a reasonable person to assume that a loss covered
by the bond has been or will be incurred even though the exact amount
or details of loss may not be then known.
SECTION 5. VALUATION OF PROPERTY
The value of any Property, except books of accounts or other records used
by the Insured in the conduct of its business, for the loss of which a claim
shall be made hereunder, shall be determined by the average market value of
such Property on the business day next preceding the discovery of such loss;
provided, however, that the value of any Property replaced by the Insured
prior to the payment of claim therefor shall be the actual market value at
the time of replacement; and further provided that in case of a loss or
misplacement of interim certificates, warrants, rights, or other securities,
the production which is necessary to the exercise of subscription,
conversion, redemption or deposit privileges, the value thereof shall be the
market value of such privileges immediately preceding the expiration thereof
if said loss or misplacement is not discovered until after their expiration.
If no market price is quoted for such Property or for such privileges, the
value shall be fixed by agreement between the parties or by arbitration.
In case of any loss or damage to Property consisting of books of accounts
or other records used by the Insured in the conduct of its business, the
Underwriter shall be liable under this bond only if such books or records
are actually reproduced and then for not more than the cost of blank books,
blank pages or other materials plus the cost of labor for the actual
transcription or copying of data which shall have been furnished by the
Insured in order to reproduce such books and other records.
SECTION 6. VALUATION OF PREMISES AND FURNISHINGS
In case of damage to any office of the Insured, or loss of or damage to
the furnishings, fixtures, stationery, supplies, equipment, safes or vaults
therein, the Underwriter shall not be liable for more than the actual cash
value thereof, or for more than the actual cost of their replacement or
repair. The Underwriter may, at its election, pay such actual cash value or
make such replacement or repair. If the Underwriter and the Insured cannot
agree upon such cash value or such cost of replacement or repair, such shall
be determined by arbitration.
SECTION 7. LOST SECURITIES
If the Insured shall sustain a loss of securities the total value of
which is in excess of the limit stated in Item 3 of the Declarations of this
bond, the liability of the Underwriter shall be limited to payment for, or
duplication of, securities having value equal to the limit stated in Item 3
of the Declarations of this bond.
If the Underwriter shall make payment to the Insured for any loss of
securities, the Insured shall thereupon assign to the Underwriter all of the
Insured's rights, title and interests in and to said securities.
With respect to securities the value of which do not exceed the
Deductible Amount (at the time of the discovery of the loss) and for which
the Underwriter
10
may at its sole discretion and option and at the request of the Insured
issue a Lost Instrument Bond or Bonds to effect replacement thereof, the
Insured will pay the usual premium charged therefor and will indemnify the
Underwriter against all loss or expense that the Underwriter may sustain
because of the issuance of such Lost Instrument Bond or Bonds.
With respect to securities the value of which exceeds the Deductible
Amount (at the time of discovery of the loss) and for which the Underwriter
may issue or arrange for the issuance of a Lost Instrument Bond or Bonds to
effect replacement thereof, the Insured agrees that it will pay as premium
therefor a proportion of the usual premium charged therefor, said proportion
being equal to the percentage that the Deductible Amount bears to the value
of the securities upon discovery of the loss, and that it will indemnify the
issuer of said Lost Instrument Bond or Bonds against all loss and expense
that is not recoverable from the Underwriter under the terms and conditions
of this INVESTMENT COMPANY BLANKET BOND subject to the Limit of Liability
hereunder.
SECTION 8. SALVAGE
In case of recovery, whether made by the Insured or by the Underwriter,
on account of any loss in excess of the Limit of Liability hereunder plus
the Deductible Amount applicable to such loss from any source other than
suretyship, insurance, reinsurance, security or indemnity taken by or for
the benefit of the Underwriter, the net amount of such recovery, less the
actual costs and expenses of making same, shall be applied to reimburse the
Insured in full for the excess portion of such loss, and the remainder, if
any, shall be paid first in reimbursement of the Underwriter and thereafter
in reimbursement of the Insured for that part of such loss within the
Deductible Amount. The Insured shall execute all necessary papers to secure
to the Underwriter the rights provided for herein.
SECTION 9. NON-REDUCTION AND NON- ACCUMULATION OF LIABILITY AND TOTAL
LIABILITY
At all times prior to termination hereof this bond shall continue in
force for the limit stated in the applicable sections of Item 3 of the
Declarations of this bond notwithstanding any previous loss for which the
Underwriter may have paid or be liable to pay hereunder; PROVIDED, however,
that regardless of the number of years this bond shall continue in force and
the number of premiums which shall be payable or paid, the liability of the
Underwriter under this bond with respect to all loss resulting from
(a)any one act of burglary, robbery or holdup, or attempt thereat, in
which no Partner or Employee is concerned or implicated shall be
deemed to be one loss, or
(b)any one unintentional or negligent act on the part of any one person
resulting in damage to or destruction or misplacement of Property,
shall be deemed to be one loss, or
(c)all wrongful acts, other than those specified in (a) above, of any
one person shall be deemed to be one loss, or
(d)all wrongful acts, other than those specified in (a) above, of one or
more persons (which dishonest act(s) or act(s) of Larceny or
Embezzlement include, but are not limited to, the failure of an
Employee to report such acts of others) whose dishonest act or acts
intentionally or unintentionally, knowingly or unknowingly, directly
or indirectly, aid or aids in any way, or permits the continuation
of, the dishonest act or acts of any other person or persons shall be
deemed to be one loss with the act or acts of the persons aided, or
11
(e)any one casualty or event other than those specified in (a), (b),
(c) or (d) preceding, shall be deemed to be one loss, and
shall be limited to the applicable Limit of Liability stated in Item 3 of
the Declarations of this bond irrespective of the total amount of such loss
or losses and shall not be cumulative in amounts from year to year or from
period to period.
Sub-section (c) is not applicable to any situation to which the language
of sub-section (d) applies.
SECTION 10. LIMIT OF LIABILITY
With respect to any loss set forth in the PROVIDED clause of Section 9 of
this bond which is recoverable or recovered in whole or in part under any
other bonds or policies issued by the Underwriter to the Insured or to any
predecessor in interest of the Insured and terminated or cancelled or
allowed to expire and in which the period for discovery has not expired at
the time any such loss thereunder is discovered, the total liability of the
Underwriter under this bond and under other bonds or policies shall not
exceed, in the aggregate, the amount carried hereunder on such loss or the
amount available to the Insured under such other bonds or policies, as
limited by the terms and conditions thereof, for any such loss if the latter
amount be the larger.
SECTION 11. OTHER INSURANCE
If the Insured shall hold, as indemnity against any loss covered
hereunder, any valid and enforceable insurance or suretyship, the
Underwriter shall be liable hereunder only for such amount of such loss
which is in excess of the amount of such other insurance or suretyship, not
exceeding, however, the Limit of Liability of this bond applicable to such
loss.
SECTION 12. DEDUCTIBLE
The Underwriter shall not be liable under any of the Insuring Agreements
of this bond on account of loss as specified, respectively, in sub-sections
(a), (b), (c), (d) and (e) of Section 9, NON-REDUCTION AND NON- ACCUMULATION
OF LIABILITY AND TOTAL LIABILITY, unless the amount of such loss, after
deducting the net amount of all reimbursement and/or recovery obtained or
made by the Insured, other than from any bond or policy of insurance issued
by an insurance company and covering such loss, or by the Underwriter on
account thereof prior to payment by the Underwriter of such loss, shall
exceed the Deductible Amount set forth in Item 3 of the Declarations hereof
(herein called Deductible Amount) and then for such excess only, but in no
event for more than the applicable Limit of Liability stated in Item 3 of
the Declarations.
The Insured will bear, in addition to the Deductible Amount, premiums on
Lost Instrument Bonds as set forth in Section 7.
There shall be no deductible applicable to any loss under Insuring
Agreement A sustained by any Investment Company named as Insured herein.
SECTION 13. TERMINATION
The Underwriter may terminate this bond as an entirety by furnishing
written notice specifying the termination date which cannot be prior to 60
days after the receipt of such written notice by each Investment Company
named as Insured and the Securities and Exchange Commission, Washington,
D.C. The Insured may terminate this bond as an entirety by furnishing
written notice to the Underwriter. When the Insured cancels, the Insured
shall furnish written notice to the Securities and Exchange Commission,
Washington. D.C. prior to 60 days before the effective date of the
termination. The Underwriter shall notify all other Investment Companies
named as Insured of the receipt of such termination notice and the
termination cannot be effective prior to 60 days after receipt of written
notice by all other Investment Companies. Premiums are earned until the
termination date as set forth herein.
12
This Bond will terminate as to any one Insured immediately upon taking
over of such Insured by a receiver or other liquidator or by State or
Federal officials, or immediately upon the filing of a petition under any
State or Federal statute relative to bankruptcy or reorganization of the
Insured, or assignment for the benefit of creditors of the Insured, or
immediately upon such Insured ceasing to exist, whether through merger into
another entity, or by disposition of all of its assets.
The Underwriter shall refund the unearned premium computed at short rates
in accordance with the standard short rate cancellation tables if terminated
by the Insured or pro rata if terminated for any other reason.
This Bond shall terminate
(a)as to any Employee as soon as any partner, officer or supervisory
Employee of the Insured, who is not in collusion with such Employee,
shall learn of any dishonest or fraudulent act(s), including Larceny
or Embezzlement on the part of such Employee without prejudice to the
loss of any Property then in transit in the custody of such Employee
(See Section 16[d]), or
(b)as to any Employee 60 days after receipt by each Insured and by the
Securities and Exchange Commission of a written notice from the
Underwriter of its desire to terminate this bond as to such Employee,
or
(c)as to any person, who is a partner, officer or employee of any
Electronic Data Processor covered under this bond, from and after the
time that the Insured or any partner or officer thereof not in
collusion with such person shall have knowledge or information that
such person has committed any dishonest or fraudulent act(s),
including Larceny or Embezzlement in the service of the Insured or
otherwise, whether such act be committed before or after the time
this bond is effective.
SECTION 14. RIGHTS AFTER TERMINATION OR CANCELLATION
At any time prior to the termination or cancellation of this bond as an
entirety, whether by the Insured or the Underwriter, the Insured may give to
the Underwriter notice that it desires under this bond an additional period
of 12 months within which to discover loss sustained by the Insured prior to
the effective date of such termination or cancellation and shall pay an
additional premium therefor.
Upon receipt of such notice from the Insured, the Underwriter shall give
its written consent thereto; provided, however, that such additional period
of time shall terminate immediately;
(a)on the effective date of any other insurance obtained by the Insured,
its successor in business or any other party, replacing in whole or
in part the insurance afforded by this bond, whether or not such
other insurance provides coverage for loss sustained prior to its
effective date, or
(b)upon takeover of the Insured's business by any State or Federal
official or agency, or by any receiver or liquidator, acting or
appointed for this purpose
without the necessity of the Underwriter giving notice of such termination.
In the event that such additional period of time is terminated, as provided
above, the Underwriter shall refund any unearned premium.
The right to purchase such additional period for the discovery of loss
may not be exercised by any State or Federal official or agency, or by any
receiver or liquidator, acting or appointed to take over the insured's
business for the operation or for the liquidation thereof or for any other
purpose.
13
SECTION 15. CENTRAL HANDLING OF SECURITIES
Securities included in the systems for the central handling of securities
established and maintained by Depository Trust Company, Midwest Depository
Trust Company, Pacific Securities Depository Trust Company, and Philadelphia
Depository Trust Company, hereinafter called Corporations, to the extent of
the Insured's interest therein as effective by the making of appropriate
entries on the books and records of such Corporations shall be deemed to be
Property.
The words "Employee" and "Employees" shall be deemed to include the
officers, partners, clerks and other employees of the New York Stock
Exchange, Boston Stock Exchange, Midwest Stock Exchange, Pacific Stock
Exchange and Philadelphia Stock Exchange, hereinafter called Exchanges, and
of the above named Corporations, and of any nominee in whose name is
registered any security included within the systems for the central handling
of securities established and maintained by such Corporations, and any
employee of any recognized service company, while such officers, partners,
clerks and other employees and employees of service companies perform
services for such Corporations in the operation of such systems. For the
purpose of the above definition a recognized service company shall be any
company providing clerks or other personnel to said Exchanges or Corporation
on a contract basis.
The Underwriter shall not be liable on account of any loss(es) in
connection with the central handling of securities within the systems
established and maintained by such Corporations, unless such loss(es) shall
be in excess of the amount(s) recoverable or recovered under any bond or
policy of insurance indemnifying such Corporations, against such loss(es),
and then the Underwriter shall be liable hereunder only for the Insured's
share of such excess loss(es), but in no event for more than the Limit of
Liability applicable hereunder.
For the purpose of determining the Insured's share of excess loss(es) it
shall be deemed that the Insured has an interest in any certificate
representing any security included within such systems equivalent to the
interest the Insured then has in all certificates representing the same
security included within such systems and that such Corporations shall use
their best judgement in apportioning the amount(s) recoverable or recovered
under any bond or policy of insurance indemnifying such Corporations against
such loss(es) in connection with the central handling of securities within
such systems among all those having an interest as recorded by appropriate
entries in the books and records of such Corporations in Property involved
in such loss(es) on the basis that each such interest shall share in the
amount(s) so recoverable or recovered in the ratio that the value of each
such interest bears to the total value of all such interests and that the
Insured's share of such excess loss(es) shall be the amount of the Insured's
interest in such Property in excess of the amount(s) so apportioned to the
Insured by such Corporations.
This bond does not afford coverage in favor of such Corporations or
Exchanges or any nominee in whose name is registered any security included
within the systems for the central handling of securities established and
maintained by such Corporations, and upon payment to the Insured by the
Underwriter on account of any loss(es) within the systems, an assignment of
such of the Insured's rights and causes of action as it may have against
such Corporations or Exchanges shall to the extent of such payment, be given
by the Insured to the Underwriter, and the Insured shall execute all papers
necessary to secure to the Underwriter the rights provided for herein,
14
SECTION 16. ADDITIONAL COMPANIES INCLUDED AS INSURED
If more than one corporation, copartnership or person or any combination
of them be included as the Insured herein:
(a)the total liability of the Underwriter hereunder for loss or losses
sustained by any one or more or all of them shall not exceed the
limit for which the Underwriter would be liable hereunder if all such
loss were sustained by any one of them,
(b)the one first named herein shall be deemed authorized to make, adjust
and receive and enforce payment of all claims hereunder and shall be
deemed to be the agent of the others for such purposes and for the
giving or receiving of any notice required or permitted to be given
by the terms hereof, provided that the Underwriter shall furnish each
named Investment Company with a copy of the bond and with any
amendment thereto, together with a copy of each formal filing of the
settlement of each such claim prior to the execution of such
settlement,
(c)the Underwriter shall not be responsible for the proper application
of any payment made hereunder to said first named Insured,
(d)knowledge possessed or discovery made by any partner, officer or
supervisory Employee of any Insured shall for the purposes of Section
4 and Section 13 of this bond constitute knowledge or discovery by
all the Insured, and
(e)if the first named Insured ceases for any reason to be covered under
this bond, then the insured next named shall thereafter be considered
as the first named Insured for the purposes of this bond.
SECTION 17. NOTICE AND CHANGE OF CONTROL
Upon the Insured's obtaining knowledge of a transfer of its outstanding
voting securities which results in a change in control (as set forth in
Section --(a) (9) of the Investment Company Act of 1940) of the Insured, the
Insured shall within thirty (30) days of such knowledge give written notice
to the Underwriter setting forth:
(a)the names of the transferors and transferees (or the names of the
beneficial owners if the voting securities are requested in another
name), and
(b)the total number of voting securities owned by the transferors and
the transferees (or the beneficial owners), both immediately before
and after the transfer, and
(c)the total number of outstanding voting securities.
As used in this section, control means the power to exercise a
controlling influence over the management or policies of the Insured.
Failure to give the required notice shall result in termination of
coverage of this bond, effective upon the date of stock transfer for any
loss in which any transferee is concerned or implicated.
Such notice is not required to be given in the case of an Insured which is
an Investment Company.
SECTION 18. CHANGE OR MODIFICATION
This bond or any instrument amending or effecting same may not be changed
or modified orally. No changes in or modification thereof shall be effective
unless made by written endorsement issued to form a part hereof over the
signature of the Underwriter's Authorized Representative. When a bond covers
only one Investment Company no change or
15
modification which would adversely affect the rights of the Investment
Company shall be effective prior to 60 days after written notification has
been furnished to the Securities and Exchange Commission, Washington, D.C.
by the Insured or by the Underwriter. If more than one Investment Company is
named as the Insured herein, the Underwriter shall give written notice to
each Investment Company and to the Securities and Exchange Commission,
Washington, D.C. not less than 60 days prior to the effective date of any
change or modification which would adversely affect the rights of such
Investment Company.
IN WITNESS WHEREOF, the Underwriter has caused this bond to be executed
on the Declarations Page.
16
ENDORSEMENT# 1
This endorsement, effective 12:01 AM December 15, 2006 forms a part of policy
number 965-95-57
issued to IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, Pa.
AMENDED ADDITIONAL OFFICES OR EMPLOYEES-CONSOLIDATION OR MERGER
It is agreed that this Bond is amended as follows:
1. General Agreements, Section B. ADDITIONAL OFFICES OR
EMPLOYEES-CONSOLIDATION, MERGER OR PURCHASE OF ASSETS -NOTICE, is amended by
adding the following:
If an Insured creates, other than by acquisition, a new registered
management investment company for which an increase in the bonding limit
of liability for the coverage provided hereunder is required by Rule
17G-I of the Investment Company Act of 1940, that registered management
investment company will be automatically insured hereunder, to the
extent that the required total combined Limit of Liability shall be
increased to the minimum required limit of liability for all Insured's
(including the newly created registered management investment
company)covered hereunder, as required by Rule 17G-I of the investment
Company Act of 1940, provided that the Limit of Liability does not then
exceed $12,000,000. if the Limit of Liability required for all Insured's
covered hereunder including the newly created registered management
investment company will exceed $12, 000,000, no coverage will be
provided for the newly created registered management investment company
without the advance written consent of the Underwriter.
If an increase in bonding limits is required according to Rule 17G-I of
the Investment Company Act of 1940 due to an increase in managed asset
size, whether by growth of registered management investment companies
insured under this Bond or by the addition of new registered management
investment companies, the minimum required increase in limits shall take
place automatically and will be covered until the next Quarterly Period
without payment of additional premium, provided that the total combined
Limit of Liability for all Insured's under this Bond, as required by
with Rule 17G-I of the Investment Company Act of 1940, does not exceed
$12,000,000, after including the increase in limits needed due to the
increase in managed assets. If the increased limit needed as a result of
the increase in managed assets will exceed $12,000,000,-. then the
increase in limits will not occur unless advance written consent of the
Underwriter is obtained.
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
END 1
ENDORSEMENTS# 2
This endorsement, effective 12:01 AM December 15, 2006 forms a part of policy
number 965-95-57
issued to IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS)
by National Union Fife Insurance Company of Pittsburgh, Pa.
NAMED INSURED
1. In consideration of the premium charged, it is hereby understood and agreed
that Item 1 of the Declarations page, Name of insured (herein called
Insured), is amended to include the following:
AEW Real Estate Income Fund
IXIS Advisor Funds Trust I
CGM Advisor Targeted Equity Fund
Hansberger International Fund
IXIS U.S. Diversified Portfolio
IXIS Value Fund
Loomis Sayles Core Plus Bond Fund
Vaughan Nelson Small Cap Value Fund
Westpeak Capital Growth Fund
IXIS Income Diversified Portfolio
IXIS Advisor Funds Trust II
Harris Associates Large Cap Value Fund
Loomis Sayles Massachusetts Tax Free Income Fund
IXIS Advisor Funds Trust III
Harris Associates Focused Value Fund
IXIS Equity Diversified Portfolio
IXIS Moderate Diversified Portfolio
IXIS Advisor Funds Trust IV
AEW Real Estate Fund
IXIS Advisor Cash Management Trust
IXIS Cash Management Trust - Money Market Series
2. Nothing contained herein shall be held to vary, alter, waive, or extend any
of the terms, limitations, conditions or agreements of the attached policy
other than as above stated.
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
END 2
ENDORSEMENTS# 3
This endorsement, effective 12:01 AM December 15, 2006 forms a part of policy
number 965-95-57
issued to IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, Pa.
AMEND DEFINITON OF EMPLOYEE
It is agreed that:
1. SECTION 1 DEFINITIONS (a) Employee is amended to include Sub-Transfer Agents
and Sub-advisors.
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
END 3
ENDORSEMENTS# 4
This endorsement, effective 12:01 AM December 15, 2006 forms a part of policy
number 965-95-57
issued to IXIS ADVISOR FUNDS {Formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, Pa.
AMENDED DISCOVERY
It is agreed that:
1. Section 3, DISCOVERY, is hereby deleted in its entirety and replaced with
the following:
This Policy applies only to loss first discovered by the Chief Financial
Officer, Compliance Officer, Treasurer or General Counsel of the Insured
during the Policy period. Discovery occurs at the earlier of such
individuals being aware of:
a. facts which may subsequently result in a loss of a type covered by this
Policy, or
b. an actual or potential claim in which it is alleged that the Insured is
liable to a third party,
regardless of when the act or acts causing or contributing to such loss
occurred, even though the amount of loss does not exceed the applicable
DEDUCTIBLE AMOUNT, or the exact amount or details of loss may not then be
known.
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
END 4
ENDORSEMENTS# 5
This endorsement, effective 12:01 AM December 15, 2006 forms a part of policy
number 965-95-57
issued to IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, Pa.
EMPLOYEE DISHONESTY
It is agreed that this Bond is amended by adding a fourth paragraph of Section
12., TERMINATION OR CANCELLATION:
"If any member of the Risk Management Department, internal Audit Department,
or General Counsel not acting in collusion with an Employee learns of any
dishonest act committed by such Employee at any time, whether in the
employment of the Insured or otherwise, whether or not such act is of the
type covered under this Bond, and whether against the Insured or any other
person or entity, the Insured:
a. shall immediately remove such Employee from a position that would enable
such Employee to cause the Insured to suffer a loss covered by this Bond;
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
END 5
ENDORSEMENT# 6
This endorsement, effective 12:01 AM December 15, 2006 forms a part of policy
number 965-95-57
issued to IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, Pa.
AMENDED FIDELITY
In consideration of the premium charged, it is hereby understood and agreed
that:
1. Insuring Agreement (A) FIDELITY is hereby deleted in its entirety and
replaced with the following:
(A)Loss resulting directly from dishonest or fraudulent acts committed
by an Employee acting alone or in collusion with others.
Such dishonest or fraudulent acts must be committed by the Employee
with the intent:
(a)to cause the Insured to sustain such loss; or
(b)to obtain financial benefit for the Employee or another person or
entity.
Notwithstanding the foregoing, however, it is agreed that with regard
to Loans and/or Trading this bond covers only loss resulting directly
from dishonest or fraudulent acts committed by an Employee with the
intent to cause the Insured to sustain such loss and which results in
a financial benefit for the Employee; or results in an improper
financial benefit for another person or entity with whom the Employee
committing the dishonest or fraudulent act was in collusion, provided
that the Insured establishes that the Employee intended to
participate in the financial benefit.
The word "Loan" as used in this insuring Agreement means all
extension of credit by the insured and all transactions creating a
creditor relationship in favor of the Insured and all transactions by
which the Insured assumes an existing creditor relationship.
The word "Trading" as used in this Insuring Agreement means trading
or other dealings in securities, commodities, futures, options,
foreign or Federal Funds, currencies, foreign exchange and the like.
As used in this Insuring Agreement, financial benefit does not
include any salaries, commissions, fees, bonuses, promotions, awards,
profit sharing, pensions, or other employee benefits earned in the
normal course of business.
END 6
ENDORSEMENT# 7
This endorsement, effective 12:01 AM December 15, 2006 forms a part of policy
number 965-95-57
issued to IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, Pa.
AMENDED NOTICE PROOF
It is agreed that:
1. Section 4., Loss-Notice-Proof-Legal Proceedings, is amended to read the
following:
(a)At the earliest practicable moment, after discovery of loss, the Insured
shall give the Underwriter notice thereof.
2. Nothing herein contained shall be held to vary, alter, waive, or extend any
of the terms, limitations, conditions, or provisions of the attached bond
other than above stated.
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
END 7
ENDORSEMENTS# 8
This endorsement, effective 12:01 AM December 15, 2006 forms a part of policy
number 965-95-57 issued to IXIS ADVISOR FUNDS (formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, Pa.
AMENDED VALUATION
It is agreed that:
1. Section 5 Valuation of Property is hereby amended by deleting the words
"actual market value" and replace with "replacement costs".
2. Nothing herein contained shall be held to vary, alter, waive or extend any
of the terms, limitations conditions or agreements of the attached policy
other than as above stated.
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
END 8
ENDORSEMENT# 9
This endorsement, effective 12:01 AM December 15, 2006 forms a part of policy
number 965-95-57 issued to IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS I)
by National Union Fire Insurance Company of Pittsburgh, Pa.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
COVERAGE TERRITORY ENDORSEMENT
Payment of loss under this policy shall only be made in full compliance with
all United States of America economic or trade sanction laws or regulations,
including, but not limited to, sanctions, laws and regulations administered and
enforced by the U.S. Treasury Department's Office of Foreign Assets Control
("OFAC").
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
END 009
Page 1 of 1
ENDORSEMENT# 10
This endorsement effective 12:01 AM December 15, 2006 forms a part of policy
number 965-95-57 issued to IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, Pa.
FORMS INDEX ENDORSEMENT
The contents of the Policy is comprised of the following forms:
FORM NUMBER EDITION DATE FORM TITLE
----------- ------------ -----------------------------------------
Mnscpt Investment Company Blanket Bond-NU DEC
41206 09/84 Investment Company Blanket Bond-NU Guts
Mnscpt Amended additional Officers or Employees-
Consolidation or Merger
Mnscpt Named Insureds
Mnscpt Amend Definition of Employee
Mnscpt Amend Discovery
Mnscpt Employee Dishonesty
Mnscpt Amended Fidelity
Mnscpt Amended Notice Proof
Mnscpt Amended Valuation
87435 07/05 Coverage Territory Endorsement (OFAC)
Mnscpt Forms Index Endorsement
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
END 010
Page 1 of 1
Electronic and Computer Crime Policy
(Edition of December, 1993)
Policy No. 965-95-57A
NATIONAL UNION FIRE INSURANCE COMPANY
OF PITTSBURGH, PA.
A Capital Stock Company
ADMINISTRATIVE OFFICES
175 WATER STREET, NEW YORK, NY 10038
(Herein Called the Underwriter)
DECLARATIONS
Item 1. Name of Insured: IXIS ADVISOR FUNDS
(Formerly CDC NVEST FUNDS)
Principal Address: 399 BOYLSTON STREET
BOSTON, MA 02116
Item 2. Policy Period: from 12:01 a.m. on
December 15, 2006 to 12:01 a.m. on
December 15, 2007
Item 3. The Aggregate Limit of Liability of
the Company during the Policy Period
shall be Not Applicable- See
Endorsement #1
Item 4. Subject to Sections 4 and 10 hereof,
the Single Loss Limit of Liabiiity
and Single Loss Deductible applicable
to individual Insuring Agreements are
as follows:
Single Loss Limit Single Loss
Insuring Agreements Of Liability Deductible
------------------- ----------------- -----------
1. Computer Systems Fraud $12,000,000 $25,000
2. Data Processing Service Operations $12,000,000 $25,000
3. Voice Initiated Transfer Fraud $12,000,000 $25,000
4. Telefacsimile Transfer Fraud $12,000,000 $25,000
5. Destruction of Data or Program by Hacker $12,000,000 $25,000
6. Destruction of Data or Program by Virus $12,000,000 $25,000
7. Voice Computer Systems Fraud $12,000,000 $25,000
Insuring Agreement 1 is Mandatory; all others are optional. If "not covered"
is inserted above opposite any specified optional Insuring Agreement, such
Insuring Agreement and any other reference thereto in this policy shall be
deemed to be deleted therefrom.
Item 5. Voice Initiated Transfer Fraud
Under the terms of the Voice
Initiated Transfer Fraud Insuring
Agreement, the Insured must place
verification call-back for each
transfer in excess of $25,000
Telefacsimile Transfer Fraud
Under the terms of the Telefacsimile
Transfer Fraud Insuring Agreement,
the Insured must place a Verification
call-back for each transfer in excess
of $25,000.
Item 6. The liability of the Company is
subject to the terms of the following
endorsements attached hereto:
Endorsements: #1, #2, #3, #4, #5,
Item 7. The insured by the acceptance of this policy gives notice to the
Company terminating or canceling prior policy(ies) No.(s) 625-17-52A
such termination or cancellation to be effective as of the time this
policy becomes effective.
Premium: Premium included in the premium shown for Bond # 965-95-57
/s/ Elizabeth M. Tuck /s/ John Doyle
------------------------ ------------------------
SECRETARY PRESIDENT
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
------------------------ ------------------------
COUNTERSIGNATURE DATE COUNTERSIGNED AT
MARSH RISK AND INSURANCE SERVICES
200 CLARENDON STREET
BOSTON, MA 02116-1304
The Company, in consideration of an agreed premium, and in reliance upon all
statements made and information furnished to the Company by the Insured in
applying for this policy, and subject to the Declarations, Insuring Agreements,
General Agreements, Conditions and Limitations and other terms hereof, agrees
to indemnify the Insured for
INSURING AGREEMENTS
1. COMPUTER SYSTEMS FRAUD
Loss resulting directly from a fraudulent
1. entry of Electronic Data or Computer Program into, or
2. change of Electronic Data or Computer Program within
any Computer System operated by the Insured, whether owned or leased; or
any Computer System identified in the application for this policy; or a
Computer System first used by the Insured during the policy period, as
provided by General Agreement A;
provided the entry or change causes
i. property to be transferred, paid or delivered,
ii.an account of the Insured, or of its customer, to be added, deleted,
debited or credited, or
iii.an unauthorized account or a fictitious account to be debited or
credited.
In this Insuring Agreement, fraudulent entry or change shall include
such entry or change made by an employee of the Insured acting in
good faith
a) on an instruction from a software contractor who has a written
agreement with the insured to design, implement, or service programs
for a Computer System covered by this Insuring Agreement, or
b) on an instruction transmitted by Tested telex or similar means of
Tested communication identified in the application for this policy
purportedly sent by a customer, financial institution, or automated
clearing house.
2. DATA PROCESSING SERVICE OPERATIONS
Loss sustained by a Client of the Insured resulting directly from a
fraudulent
1) entry of Electronic Data or a Computer Program into, or
2) change of Electronic Data or a Computer Program within
a Computer System covered under the terms of Insuring Agreement 1, or
3) entry or change of Electronic Data during electronic transmission or
physical transit from the Insured to its Client,
provided that the entry or change causes
i. property to be transferred, paid or delivered,
ii.an account of the Client, or a customer of the Client, to be added,
deleted, debited or credited, or
iii.an unauthorized account or a fictitious account to be debited or
credited,
and for which loss the Insured if legally liable to the Client as a
provider of data processing services for such Client.
In this Insuring Agreement, fraudulent entry or change shall include
such entry or change made by an employee of the Insured acting in
good faith
a) on an instruction from a software contractor who has a written
agreement with the Insured to design, implement or service
programs for a Computer System covered by this Insuring
Agreement, or
b) on an instruction transmitted by Tested telex or similar means of
Tested communication identified in the application for this
policy purportedly sent by a customer, financial institution, or
automated clearing house.
In this Insuring Agreement, Client means an entity for whom the Insured
serves as data processor under the terms of a written agreement
3. VOICE INITIATED TRANSFER FRAUD
Loss resulting directly from the Insured having, in good faith, transferred
Funds from a Customer's account through a Computer System covered under the
terms of Insuring Agreement 1 in reliance upon a fraudulent voice
instruction transmitted by telephone which was purported to be from
1) an officer, director, partner or employee of a Customer of the Insured
who was authorized by the Customer to instruct the Insured to make such
transfer,
2) an individual person who is a Customer of the Insured, or
3) an employee of the Insured in another office of the Insured who was
authorized by the Insured to instruct other employees of the Insured to
transfer Funds,
and was received by an employees of the Insured specifically designated
to receive and act upon such instructions, but the voice instruction was
not from a person described in (1), (2), or (3) above,
provided that
i. such voice instruction was electronically recorded by the Insured
and required password(s) or code word(s) given; and
ii.if the transfer was in excess of the amount shown on the
Declarations Page as the verification call-back amount for this
Insuring Agreement, the voice instruction was verified by a
call-back according to a prearranged procedure.
As used in this Insuring Agreement, Customer means an entity or
individual which has a written agreement with the Insured authorizing
the Insured to rely on voice instructions to initiate transfers and
had provided the Insured with the names of persons authorized to
initiate such transfers, and with which the Insured has established
an instruction verification mechanism.
4. TELEFACSIMILE TRANSFER FRAUD
Loss resulting directly from the Insured having, in good faith, transferred
or delivered Funds, Certificated Securities or Uncertificated Securities
through a Computer System covered under the terms of Insuring Agreement 1 in
reliance upon a fraudulent instruction received though a Telefacsimile
Device, and which instruction
1) purports and reasonably appears to have originated from
a) a Customer of the Insured,
b) another financial institution, or
c) another office of the Insured
but, in fact, was not originated by the Customer or entity whose
identification it bears and
2) contains a valid test code which proves to have been used by a person
who was not authorized to make use of it, and
3) contains the name of a person authorized to initiate such transfer;
provided that, if the transfer was in excess of the amount shown on the
Declarations Page as the verification call-back amount for this Insuring
Agreement, the instruction was verified by a call-back according to a
prearranged procedure.
As used in this Insuring Agreement, Customer means an entity or individual
which has a written agreement with the Insured authorizing the Insured to
rely on Telefacsimile Device instruction to initiate transfers and had
provided the Insured with the names of persons authorized to initiate such
transfers, and with which the Insured has established an instruction
verification mechanism.
5. DESTRUCTION OF DATA OR PROGRAMS BY HACKER
Loss resulting directly from the malicious destruction of, or damage to,
Electronic Data or Computer Programs owned by the Insured or for which the
Insured is legally liable while stored within a Computer System covered
under the terms of Insuring Agreement 1.
The liability of the Company shall be limited to the cost of duplication of
such Electronic Data or Computer Programs from other Electronic Data or
Computer Programs which shall have been furnished by the insured.
In the event, however, that destroyed or damaged Computer Programs cannot be
duplicated from other Computer Programs, the Company will pay the cost
incurred for computer time, computer programmers, consultants or other
technical specialists as is reasonably necessary to restore the Computer
Programs to substantially the previous level of operational capability.
6. DESTRUCTION OF DATA OR PROGRAMS BY VIRUS
Loss resulting directly from the malicious destruction of, or damage to,
Electronic Data or Computer Programs owned by the Insured or for which the
Insured is legally liable while stored within a Computer System covered
under the terms of Insuring Agreement 1 if such destruction or damage was
caused by a computer program or similar instruction which was written or
altered to incorporate a hidden instruction designed to destroy or damage
Electronic Data or Computer Programs in the Computer System in which the
computer program or instruction so written or so altered is used.
The liability of the Company shall be limited to the cost of duplication of
such Electronic Data or Computer Programs from other Electronic Data or
Computer Programs which shall have been furnished by the Insured.
In the event, however, that destroyed or damaged Computer Programs cannot be
duplicated from other Computer Programs, the Company will pay the cost
incurred for computer time, computer programmers, consultants, or other
technical specialists as is reasonably necessary to restore the Computer
Programs to substantially the previous level of operational capability.
Special Condition:
Under this Insuring Agreement, "Single Loss" means all covered costs
incurred by the Insured between the time destruction or damage is discovered
and the time the Computer System is restored to substantially the previous
level of operational capability. Recurrence of destruction or damage after
the Computer System is restored shall constitute a separate "Single Loss".
7. VOICE COMPUTER SYSTEM FRAUD
Loss resulting directly from charges for voice telephone long-distance toll
calls which were incurred due to the fraudulent use or fraudulent
manipulation of an Account Code or System Password required to obtain access
to a Voice Computer System owned or leased by the Insured, installed on the
Insured's premises, whose System Administration is performed and controlled
by the Insured; provided, however, that the unauthorized access was not made
possible by
1) failure to incorporate a System Password feature or failure to change
the System Password at least once every 30 days thereafter, or
2) failure to have a call-disconnect feature in operation to automatically
terminate a caller's access to the Voice Computer System after not more
than three unsuccessful attempts to input an Account Code.
Special Condition:
Under the Insuring Agreement, "Single Loss" means loss resulting from toll
call charges made only on telephone lines directly controlled by one Voice
Computer System and only toll call charges occurring for a period of not
more than 30 days inclusive of the date on which the first such toll call
charge was made.
GENERAL AGREEMENTS
A. CONSOLIDATION, MERGER, OR PURCHASE OF ASSETS OR COMPUTER SYSTEMS OR ANOTHER
INSTITUTION--NOTICE
If the insured consolidates or merges with another institution, or purchases
or acquires the assets, liabilities or Computer System(s) of another
institution, the Insured shall not have the coverage provided by this policy
unless the Insured
i) gives the Company written notice of the proposed consolidation, merger,
purchase or acquisition prior to the proposed effective date of such
action, and
ii)obtains the written consent of the Company to extend the coverage
provided by this policy, and
iii)pays to the Company any additional premium which may be due.
B. REPRESENTATION OF INSURED
The Insured represents that the information furnished in the application for
this policy is complete, true and correct. Such application constitutes part
of this policy. Any misrepresentation, omission, concealment or incorrect
statement of a material fact, in the application or otherwise, shall be
grounds for the rescission of this policy.
C. JOINT INSURED
If two or more Insureds are covered under this policy, the first named
Insured shall act for all Insureds. Payment by the Company to the first
named Insured for loss sustained by any Insured shall fully release the
Company on account of such loss. If the first named insured ceases to be
covered under this policy, the Insured next named shall thereafter be
considered as the first named Insured. Knowledge possessed or discovery made
by any Insured shall constitute knowledge or discovery by all Insured for
all purposes of this policy. The liability of the Company for loss or losses
sustained by all Insureds shall not exceed the amount for which the Company
would have been liable had all such loss or losses been sustained by one
Insured.
D. NOTICE OF LEGAL PROCEEDINGS AGAINST INSURED--ELECTION TO DEFEND
The Insured shall notify the Company at the earliest practicable moment, not
to exceed 30 days after notice thereof, of any legal proceeding brought to
determine the Insured's liability for any loss, claim or damage, which, if
established, would constitute a collectible loss under this policy.
Concurrently, the Insured shall furnish copies of all pleadings and
pertinent papers to the Company.
The Company at its sole option, may elect to conduct the defense of such
legal proceeding, in whole or in part. The defense by the Company shall be
in the Insured's name through attorneys selected by the Company. The Insured
shall provide all reasonable information and assistance required by the
Company for such defense.
If the Company elects to defend the Insured, in whole or in part, any
judgment against the Insured on those counts or causes of action which the
Company defends on behalf of the Insured or any settlement in which the
Company participates and all attorneys' fees, costs and expenses incurred by
the Company in the defense of the litigation shall be a loss covered by this
policy.
If the Insured does not give the notices required in subsection (a) of
Section 5 of this policy and in the first paragraph of this General
Agreement, of if the Company elects not to defend any causes of action,
neither a judgment against the Insured, nor a settlement of any legal
proceeding by the Insured, shall determine the existence, extent or amount
of coverage under this policy for loss sustained by the Insured, and the
Company shall not be liable for any attorneys' fees, costs and expenses
incurred by the Insured.
With respect to this General Agreement, subsections (b) and (g) of Section 5
of this policy apply upon the entry of such judgment or the occurrence of
such settlement instead of upon the discovery of such loss. In addition, the
Insured must notify the Company within 30 days after such judgment is
entered against it or after the Insured settles such legal proceeding, and,
subject to subsection (h) of Section 5, the Insured may not bring legal
proceedings for the recovery of such loss after the expiration of 24 months
from the date of such final judgment or settlement.
CONDITIONS AND LIMITATIONS
SECTION 1.
DEFINITIONS
As used in this policy:
a) Account Code means a confidential and protected string of characters which
identifies or authenticates a person and permits that person to gain access
to a Voice Computer System for the purposes of making toll calls or
utilizing voice mail box messaging capabilities or other similar functional
features of the System;
b) Certificated Security means a share, participation or other interest in the
property of, or an enterprise of, the issuer or an obligation of the issuer,
which is:
1) represented by an instrument issued in bearer or registered form;
2) of a type commonly dealt in on securities exchanges or markets or
commonly recognized in any area in which it is issued or dealt in as a
medium for investment, and
3) either one of a class or series or by its terms divisible into a class
or series of shares, participations, interests or obligations;
c) Computer Program means a set of related electronic instructions which direct
the operations and functions of a computer or devices connected to it which
enable the computer or devices to receive, process, store or send Electronic
Data;
d) Computer System means
1) computers with related peripheral components, including storage
components wherever located,
2) systems and applications software,
3) terminal devices, and
4) related communication networks
by which Electronic Data are electronically collected, transmitted,
processed, stored, and retrieved;
e) Electronic Data means facts or information converted to a form usable in
a Computer System by Computer Programs and which is stored on magnetic
tapes or disks, or optical storage disks or other bulk media;
f) Funds means Money on deposit in an account;
g) Money means a medium of exchange in current use authorized or adopted by
a domestic or foreign government as a part of its currency;
h) System Administration means the performance of security functions
including but not limited to defining authorized persons to access a
Voice Computer System and adding, changing and deleting Account Codes or
passwords in connection therewith; and invoking or revoking a System
option which directs telephone call routing or which adds, moves or
drops telephone lines or which performs any other similar activity
allowed by a hardware or software-based System option that has been
incorporated by a manufacturer or vendor into a System or any component
thereof provided said System option is not intended for the sole use of
such manufacturer or vendor;
i) System Maintenance means the performance of hardware and software
installation, diagnostics and corrections and similar activities that
are performed in the usual custom and practice by a manufacturer or
vendor to establish or maintain the basic operational functionality of a
Voice Computer System or any component thereof;
j) System Password means a confidential and protected string of characters
which identifies or authenticates a person and permits that person to
gain access to a Voice Computer System or any portion thereof for the
purpose of performing System Administration of System Maintenance
activities;
k) Telefacsimile device means a machine capable of sending or receiving a
duplicate image of a document by means of electronic impulses
transmitted through a telephone line and which reproduces the duplicate
image on paper;
l) Tested means a method of authenticating the contents of a communication
by placing a valid test key on it which has been agreed upon by the
Insured and a customer, automated clearing house, or another financial
institution for the purpose of protecting the integrity of the
communication in the ordinary course of business;
m) Uncertificated Security means a share, participation or other interest
in property of, or an enterprise of, the issuer or an obligation of the
issuer, which is;
1) not represented by an instrument and the transfer of which is
registered upon books maintained for that purpose by or on behalf of
the issuer,
2) of a type commonly dealt in securities, exchanges or markets, and
3) either one of a class or series or by its terms divisible into a
class or series of shares, participations, interests or obligations;
n) Voice Computer System means a Computer System installed in one location
which functions as a private branch exchange (PBX), voice mail
processor, automated call attendant or provides a similar capability
used for the direction or routing of telephone calls in a voice
communications network.
EXCLUSIONS
Section 2.
This policy does not cover:
a) any losses of the type or kind covered by the Insured's financial
institution bond, regardless of any deductible amount or limit of liability;
b) loss caused by a director or employee of the Insured or by a person in
collusion with any director or employee of the Insured; (Collusion shall
include the willful withholding of knowledge from the Insured by any
director or employee that a fraudulent act by a person not an employee has
been or will be perpetrated against the Insured.);
c) loss resulting directly or indirectly from entry or change of Electronic
Data or Computer Programs in a Computer System, unless covered under
Insuring Agreement 1 or 2;
d) loss resulting directly or indirectly from the Insured having transferred
Funds in reliance on the validity of a voice instruction, unless covered
under Insuring Agreement 1 or 3;
e) loss resulting directly or indirectly by the Insured having transferred or
delivered Funds, Certificated Securities or Uncertificated Securities in
reliance on an instruction received through a Telefacsimile Device, unless
covered under insuring Agreement 4;
f) loss resulting directly or indirectly from theft of confidential information;
g) loss resulting directly or indirectly from payments made or withdrawals from
a depositor's account involving items of deposit which are not finally paid
for any reason;
h) potential income, including but not limited to interest and dividends;
i) damages of any type for which the Insured is legally liable, except
compensatory damages, but not multiples thereof, arising directly from a
loss covered under this policy;
j) loss resulting directly or indirectly from the assumption of liability by
the Insured by contract unless the liability arises from a loss covered by
this policy and would be imposed on the Insured regardless of the existence
of the contract;
k) any fees, costs and expenses incurred by the Insured
1) in establishing the existence of or amount of loss covered under this
policy, or
2) as a party to any legal proceeding whether or not such legal proceeding
exposes the Insured to loss covered by this policy;
l) indirect or consequential loss of any nature;
m) the cost of duplication of Electronic Data or Computer Programs, unless
covered by under Insuring Agreement 5 or 6;
n) loss involving a Voice Computer System, unless covered under Insuring
Agreement 7;
o) loss involving automated mechanical devices which on behalf of the Insured,
disburse money, accept deposits, cash checks, drafts or similar written
instruments, or make credit card loans;
p) loss resulting directly or indirectly from
1) written instructions or advices, or
2) telegraphic or cable instructions or advices;
unless the instructions or advices are Tested and the loss is covered under
Insuring Agreement 1 or 2;
q) loss resulting directly or indirectly from negotiable instruments,
securities, documents or other written instruments which bear a forged
signature, or are counterfeit, altered or otherwise fraudulent and which are
used as source documentation in the preparation of Electronic Data or
manually keyed into a data terminal;
r) loss resulting directly or indirectly from the fraudulent preparation, or
fraudulent modification of Computer Programs unless covered under insuring
Agreement 1 or 2;
s) loss resulting directly or indirectly from
1) mechanical failure, faulty construction, error in design, latent defect,
fire, wear or tear, gradual deterioration, electrical disturbance or
electrical surge which affects a Computer System, or
2) failure or breakdown of electronic data processing media, or
3) error or omission in programming or processing;
t) loss due to riot or civil commotion or loss due to military, naval or
usurped power, war or insurrection;
u) loss resulting directly or indirectly from the effects of nuclear fission or
fusion or radioactivity; provided, however, that this exclusion shall not
apply to loss resulting from industrial uses of nuclear energy;
v) loss as a result of a threat
1) to do bodily harm to any person, or
2) to do damage to the premises or property of the Insured, or
3) to Computer Systems operations;
w) loss resulting directly or indirectly from the use of a telephone credit,
debit, charge, identification or similar card to gain access to the
Insured's Voice Computer System;
x) loss resulting directly or indirectly from the use or purported use of
credit, debit, charge, access, convenience, customer identification or other
cards;
y) loss resulting directly or indirectly from the input of Electronic Data into
a Computer System terminal device either on the premises of a customer of
the Insured or under the control of such customer by a person who had
authorized access to the customer's authentication mechanism.
DISCOVERY
Section 3.
This policy applies to loss discovered by the Insured during the Policy Period.
Discovery occurs when the Insured first becomes aware of facts which would
cause a reasonable person to assume that a loss of a type covered by this
policy has been or will be incurred, regardless of when the act or acts causing
or contributing to such loss occurred, even though the exact amount or details
of loss may not be then be known.
Discovery also occurs when the Insured receives notice of an actual or
potential claim in which it is alleged that the Insured is liable to a third
party under circumstances which, if true, would constitute a loss under this
policy.
LIMIT OF LIABILITY
Section 4.
Aggregate Limit of Liability
The Company's total liability for all losses discovered during the Policy
Period shown in Item 2 of the Declarations shall not exceed the Aggregate Limit
of Liability shown in Item 3 of the Declarations. The Aggregate Limit of
Liability shall be reduced by the amount of any payment made under the terms of
this policy.
Upon exhaustion of the Aggregate Limit by such payments:
a) The Company shall have no further liability for loss or losses regardless of
when discovered and whether or not previously reported to the Company; and
b) The Company shall have no obligation under the General Agreement D to
continue the defense of the Insured, and upon notice by the Company to the
Insured that the Aggregate Limit of Liability has been exhausted, the
Insured shall assume all responsibility for its defense at its own cost.
The Aggregate Limit of Liability shall not be increased or reinstated by any
recovery made and applied in accordance with subsections (a), (b) and (c) of
Section 7. In the event that a loss is settled by the Company through the use
of a lost instrument bond, such loss shall not reduce the Aggregate Limit of
Liability.
Single Loss Limit of Liability
Subject to the Aggregate Limit of Liability, the Company's liability for each
Single Loss shall not exceed the applicable Single Loss Limit of Liability
shown in Item 4 of the Declarations. If a Single Loss is covered under more
than one Insuring Agreement, the maximum payable shall not exceed the largest
applicable Single Loss Limit of Liability,
All loss or series of losses involving the fraudulent or destructive acts of
one individual, or involving fraudulent or destructive acts in which one
individual is implicated, whether or not that individual is specifically
identified, shall be treated as a Single Loss and subject to the Single Loss
Limit of Liability.
A series of losses involving unidentified individuals but arising from the same
method of operation shall be deemed to involve the same individual and in that
event shall be treated as a Single Loss and subject to the Single Loss Limit of
Liability.
NOTICE/PROOF--LEGAL PROCEEDINGS AGAINST COMPANY
Section 5.
a) At the earliest practicable moment, not to exceed 30 days, after discovery
of loss, the Insured shall give the Company notice thereof.
b) Within 6 months after such discovery, the Insured shall furnish to the
Company proof of loss, duly sworn to, with full particulars.
c) This policy affords coverage only in favor of the Insured. No suit, action
or legal proceedings shall be brought hereunder by any one other than the
named Insured.
d) Proof of loss for claim under the Voice Initiated Transfer Fraud Insuring
Agreement must include electronic recordings of such voice instructions and
the verification call-back, if such call-back was required.
e) Proof of loss for claim under the Telefacsimile Transfer Fraud Insuring
Agreement must include a copy of the document reproduced by the
Telefacsimile Device.
f) Certificated Securities listed in a proof of loss shall be identified by
certificate or bond numbers of such securities were issued therewith.
g) Legal proceedings for the recovery of any loss hereunder shall not be
brought prior to the expiration of 60 days after the original proof of loss
is filed with the Company or after the expiration of 24 months from the
discovery of such loss.
h) If any limitation embodied in this policy is prohibited by any law
controlling the construction hereof, such limitation shall be deemed to be
amended so as to equal the minimum period of limitation provided by such law.
VALUATION
Section 6.
Any loss of Money, or loss payable in Money, shall be paid, at the option of
the Insured, in the Money of the country in which the loss was sustained or in
the United States of America dollar equivalent thereof determined at the rate
of exchange at the time of payment of such loss.
Securities
The Company shall settle in kind its liability under this policy on account of
any securities or, at the option of the Insured, shall pay to the Insured the
cost of replacing such securities, determined by the market value thereof at
the time of such settlement. In the case of loss of subscription, conversion or
redemption privileges though the loss of securities, the amount of such loss of
shall be the value of such privileges immediately preceding the expiration
thereof. If such securities cannot be replaced of have no quoted market value,
or if such privileges have no quoted market value, their value shall be
determined by agreement or arbitration.
If the applicable coverage of this policy is subject to a Deductible Amount
and/or is not sufficient in amount to indemnify the Insured in full for the
loss of securities for which claim is made hereunder, the liability of the
Company under this policy is limited to the payment for, or the duplication of,
so much of such securities as has a value equal to the amount of such
applicable coverage.
ASSIGNMENT--SUBROGATION--RECOVERY--COOPERATION
Section 7.
a) In the event of payment under this policy, the Insured shall deliver, if so
requested by the Company, an assignment of such of the Insured's rights,
title and interest and causes of action as it has against any person or
entity to the extent of the loss payment.
b) In the event of payment under this policy, the Company shall be subrogated
to all of the Insured's rights of recovery therefor against any person or
entity to the extent of such payment.
c) Recoveries, whether effected by the Company or by the Insured, shall be
applied net of the expense of recovery:
- first to the satisfaction of the Insured's loss which would otherwise
have been paid but for the fact that it is in excess of either the
Single or Aggregate Limit of Liability,
- second, to the Company as reimbursement of amounts paid in settlement of
the Insured's claim, and,
- third, to the Insured in satisfaction of any Deductible Amount.
Recovery from reinsurance and/or indemnity of the Company shall not be
deemed a recovery as used herein.
d) Upon the Company's request and at reasonable times and places designated by
the Company the Insured shall
1) submit to examination by the Company and subscribe to the same under
oath, and
2} produce for the Company's examination all pertinent records, and
3) cooperate with the Company in all matters pertaining to the loss.
e) The Insured shall execute all papers and render assistance to secure to the
Company the rights and causes of action provided for herein. The Insured
shall do nothing after discovery of loss to prejudice such rights or causes
of action.
OTHER INSURANCE OR INDEMNITY
Section 8.
Coverage afforded hereunder shall apply only as excess over any valid and
collectible insurance or indemnity obtained by the Insured, or by one other
that the Insured. However, this policy does not provide excess indemnity for
losses covered by the Insured's financial institution bond.
OWNERSHIP
Section 9.
This policy shall apply to loss of Money, Certificated and Uncertificated
Securities, Electronic Data, Computer Programs and other property
1) owned by the Insured
2) held by the Insured in any capacity, or
3) for which the Insured is legally liable because of a loss covered by this
policy.
This policy shall be for the sole use and benefit of the Insured named in the
Declarations.
DEDUCTIBLE AMOUNT
Section 10.
The Company shall be liable hereunder only in the event a Single Loss, as
described in Section 4, exceeds the Single Loss Deductible amount for the
Insuring Agreement applicable to such loss, subject to the Aggregate Limit of
Liability and the applicable Single Loss Limit of Liability.
TERMINATION OR CANCELLATION
Section 11.
This policy terminates as an entirety upon occurrence of any of the following:
a) 60 days after the receipt by the Insured of a written notice from the
Company of its desire to cancel this policy, or
b) immediately upon the receipt by the Company of a written notice from the
Insured of its desire to cancel this policy, or
c) immediately upon the taking over of the Insured by a receiver or other
liquidator or by State or Federal officials, or
d) immediately upon the taking over of the Insured by an institution, or
e) immediately upon exhaustion of the Aggregate Limit of Liability, or
f) immediately upon expiration of the Policy Period as set forth in Item 2 of
the Declarations.
Termination of the policy as to any Insured terminated liability for any
loss sustained by such Insured which is discovered after the effective date
of such termination.
In witness whereof, the Company has caused this policy to be executed on the
Declarations page
ENDORSEMENT # 1
This rider, effective 12:01 AM December 15, 2006 forms a part of policy number
965-95-79A issued to: IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, PA
AGGREGATE ENDORSEMENT
It is agreed that:
1. Section 4-Limit of Liability, Aggregate Limit of Liability is hereby deleted
in it's entirety.
2. Nothing herein contained shall be held to vary, alter, waive or extend any
of the terms, limitations, conditions or agreements of the attached policy
other than as above stated.
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
ENDORSEMENT # 2
This rider, effective 12:01 AM December 15, 2006 forms a part of policy number
965-95-79A issued to: IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, PA
NAMED INSURED ENDORSEMENT
1. In consideration of the premium charged, it is hereby understood and agreed
that Item 1 of the Declarations page, Name of Insured (herein called
Insured), is amended to include the following:
AEW Real Estate Income Fund
IXIS Advisor Funds Trust 1
CGM Advisor Targeted Equity Fund
Hansberger International Fund
IXIS U.S. Diversified Portfolio
IXIS Value Fund
Loomis Sayles Core Plus Bond Fund
Vaughan Nelson Small Cap Value Fund
Westpeak Capital Growth Fund
IXIS Income Diversified Portfolio
IXIS Advisor Funds Trust II
Harris Associates Large Cap Value Fund
Loomis Sayles Massachusetts Tax Free Income Fund
IXIS Advisor Funds Trust III
Harris Associates Focused Value Fund
IXIS Equity Diversified Portfolio
IXIS Moderate Diversified Portfolio
IXIS Advisor Funds Trust IV
AEW Real Estate Fund
IXIS Advisor Cash Management Trust
IXIS Cash Management Trust--Money Market Series
ENDORSEMENT # 2 (Continued)
2. Nothing contained herein shall be held to vary, alter, waive, or extend any
of the terms, limitations, conditions or agreements of the attached policy
other than as above stated.
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
ENDORSEMENT # 3
This rider, effective 12:01 AM December 15, 2006 forms a part of policy number
965-95-79A issued to: IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, PA
AMEND DISCOVERY
It is agreed that:
1. Section 3, DISCOVERY, is hereby deleted in its entirety and replaced with
the following:
This policy applies only to loss first discovered by the Chief Financial
Officer, Compliance Officer, Treasure or General Counsel of the Insured
during the Policy Period. Discovery occurs at the earlier of such
individuals being aware of:
(a)facts which may subsequently result in a loss of a type covered by this
Policy, or
(b)an actual or potential claim in which it is alleged that the Insured is
liable to a third party, regardless of when the act or acts causing or
contributing to such loss occurred, even though the amount of loss does
not exceed the applicable DEDUCTIBLE AMOUNT, or the exact amount or
details of loss may not then be known.
2. Nothing herein contained shall be held to vary, alter, waive or extend any
of the terms, limitations, conditions or agreements of the attached policy
other than as above stated.
/s/ John Doyle
-----------------------------
AUTHORIZED REPRESENTATIVE
ENDORSEMENT # 4
This rider, effective 12:01 AM December 15, 2006 forms a part of policy number
965-95-79A issued to: IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, PA
AMEND VALUATION & SECURITIES
It is agreed that:
1. Valuation, Section 6. The first paragraph is hereby amended by deleting the
words "at the time of payment of such loss" and replacing with "on the
business day next preceding the discovery of such loss."
2. Nothing herein contained shall be held to vary, alter, waive or extend any
of the terms, limitations, conditions, or agreements of the attached policy
other than as above stated.
/s/ John Doyle
----------------------------
AUTHORIZED REPRESENTATIVE
ENDORSEMENT # 5
This rider, effective 12:01 AM December 15, 2006 forms a part of
policy number 965-95-79A
issued to: IXIS ADVISOR FUNDS (Formerly CDC NVEST FUNDS)
by National Union Fire Insurance Company of Pittsburgh, PA
AMENDED CONSOLIDATION, MERGER, OR PURCHASE OF ASSETS OR COMPUTER
SYSTEMS OR ANOTHER INSTITUTION--NOTICE
It is agreed that this Bond is amended as follows:
1. General Agreements, Section A. AMENDED CONSOLIDATION, MERGER, OR
PURCHASE OF ASSETS OR COMPUTER SYSTEMS OR ANOTHER INSTITUTION, is hereby
deleted and replaced with the following:
If an Insured creates, other than by acquisition, a new registered
management investment company for which an increase in the bonding limit
of liability for the coverage provided hereunder is required by Rule
17G--I of the Investment Company Act of 1940, that registered management
investment company will be automatically insured hereunder, to the
extent that the required total combined Limit of Liability shall be
increased to the minimum required limit of liability for all Insured's
(including the newly created registered management investment company)
covered hereunder, as required by Rule 17 G--I of the Investment Company
Act of 1940, provided that the Limit of Liability does not then exceed
$12,000,000. If the Limit of Liability required for all Insured's
covered hereunder including the newly created registered management
investment company will exceed $12,000,000, no coverage will be provided
for the newly created registered management investment company without
the advance written consent of the Underwriter.
If an increase in bonding limits is required according to Rule 17 G--I
of the Investment Company Act of 1940 due to an increase in managed
asset size, whether by growth of registered management investment
companies insured under this Bond or by the addition of new registered
management investment companies, the minimum required increase in limits
shall take place automatically and will be covered until the next
Quarterly Period without payment of additional premium, provided that
the total combined Limit of Liability for all Insured's under this Bond,
as required by with Rule 17G--I of the Investment Company Act of 1940,
does not exceed $12,000,000 after including the increase in limits
needed due to the increase in managed assets. If the increased limit
needed as a result of the increase in managed assets will exceed
$12,000,000, then the increase in limits will not occur unless advance
written consent of the Underwriter is obtained.
ENDORSEMENT # 5 (Continued)
2. Nothing herein contained shall be held to vary, alter, waive or extend any
of the terms, limitations, conditions or agreements of the attached policy
other than as above stated.
/s/ John Doyle
----------------------------
AUTHORIZED REPRESENTATIVE