December 11, 2015
U.S. Securities and Exchange Commission
100 F Street N.E.
Washington, DC 20549
Re: | Stone Harbor Emerging Markets Total Income Fund |
Rule 17g-1(g) of the Investment Company Act of 1940 |
Bonding of Officers and Employees |
(Stone Harbor Emerging Markets Total Income Fund File No. 811-22716) |
Dear Sir or Madam:
Pursuant to Rule 17g-1(g)(1) under the Investment Company Act of 1940, as amended (1940 Act), attached please find a copy of the financial institution bond (the Bond) in favor of Stone Harbor Emerging Markets Total Income Fund, a management investment company registered under the 1940 Act, and resolutions relating to the Bond.
The term of the Bond is November 1, 2015 through November 1, 2016, and the premium for the Bond has been paid through November 1, 2016.
Note this is a joint policy with the Stone Harbor Emerging Markets Income Fund and Stone Harbor Investment Funds. If the Fund were to maintain its own single insured bond instead of being a named insured in the joint bond, the limit of liability of such bond would have to be at least $600,000.
Please call me at (303) 623-2577 if you have any questions.
Sincerely,
/s/ Vilma V. DeVooght
Vilma V. DeVooght
Assistant Secretary
Stone Harbor Emerging Markets Total Income Fund
Attachments
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.aig.com/producercompensation or by calling 1-800-706-3102.
91222 (4/13)
National Union Fire Insurance Company of Pittsburgh, Pa.
A capital stock company
POLICY NUMBER: 02-271-68-22 |
REPLACEMENT OF POLICY NUMBER: 01-771-85-10 |
INVESTMENT COMPANY BLANKET BOND
DECLARATIONS:
ITEM 1. | Name of Insured (herein called Insured): |
STONE HARBOR INVESTMENT FUNDS
Principal Address:
1290 BROADWAY, SUITE 1100
DENVER, CO 80203
ITEM 2. | Bond Period: from 12:01 a.m. November 01, 2015 to November 01, 2016 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, |
Insuring Agreement | Single Loss Limit of Liability |
Single Loss Deductible | ||
Insuring Agreement (A) Fidelity |
$4,000,000 | N/A | ||
Insuring Agreement (B) Audit Expense |
$4,000,000 | $50,000 | ||
Insuring Agreement (C) On Premises |
$4,000,000 | $50,000 | ||
Insuring Agreement (D) In Transit |
$4,000,000 | $50,000 | ||
Insuring Agreement (E) Forgery or Alteration |
$4,000,000 | $50,000 | ||
Insuring Agreement (F) Securities |
$4,000,000 | $50,000 | ||
Insuring Agreement (G) Counterfeit Currency |
$4,000,000 | $50,000 | ||
Insuring Agreement (H) Stop Payment |
$4,000,000 | $50,000 | ||
Insuring Agreement (I) Uncollectible Items of Deposit | $4,000,000 | $50,000 | ||
Additional Coverages: |
||||
Insuring Agreement (J) Computer Systems |
$4,000,000 | $50,000 | ||
Insuring Agreement (K) Telefacsimile Transfer |
$4,000,000 | $50,000 | ||
Insuring Agreement (L) Unauthorized Signatures |
$4,000,000 | $50,000 | ||
Insuring Agreement (M) Voice Initiated Transfer Fraud | $4,000,000 | $50,000 |
41205 (04/95) |
1 |
© All rights reserved.
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 Insureds 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 thereto: Endorsements #1,#2, #3, #4, #5, #6 |
ITEM 6. | The Insured by the acceptance of this bond gives to the Underwriter terminating or canceling prior bond(s) or policy(ies) No.(s) 01-584-10-40 such termination or cancellation to be effective as of the time this bond becomes effective. |
PREMIUM: $6,362
41205 (04/95) |
2
© All rights reserved. |
IN WITNESS WHEREOF, the Insurer has caused this Policy to be signed by its President, Secretary and Authorized Representative. This Policy shall not be valid unless signed below at the time of issuance by an authorized representative of the insurer.
|
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|||||
PRESIDENT | SECRETARY | |||||
National Union Fire Insurance Company of Pittsburgh, Pa. |
National Union Fire Insurance Company of Pittsburgh, Pa. |
|
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AUTHORIZED REPRESENTATIVE |
COUNTERSIGNED AT |
DATE |
COUNTERSIGNATURE |
AON RISK INSURANCE SERVICES WEST, INC.
1900 16TH STREET
SUITE 1000
DENVER, CO 80202
1438146
41205 (04/95) |
3
© All rights reserved. |
National Union Fire Insurance Company of Pittsburgh, Pa. ®
A capital stock company
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
41206 (9/84) |
1 | © All rights reserved. |
41206 (9/84) |
2 | © All rights reserved. |
41206 (9/84) |
3 | © All rights reserved. |
GENERAL AGREEMENTS
41206 (9/84) |
4 | © All rights reserved. |
THE FOREGOING INSURING AGREEMENTS AND
GENERAL AGREEMENTS ARE SUBJECT TO
THE FOLLOWING CONDITIONS
AND LIMITATIONS:
41206 (9/84) |
5 | © All rights reserved. |
41206 (9/84) |
6 | © All rights reserved. |
41206 (9/84) |
7 | © All rights reserved. |
41206 (9/84) |
8 | © All rights reserved. |
41206 (9/84) |
9 | © All rights reserved. |
41206 (9/84) |
10 | © All rights reserved. |
41206 (9/84) |
11 | © All rights reserved. |
41206 (9/84) |
12 | © All rights reserved. |
41206 (9/84) |
13 | © All rights reserved. |
ENDORSEMENT# 1
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
COLORADO
AMENDATORY ENDORSEMENT
Wherever used in this endorsement: 1) we, us, our, and Insurer mean the insurance company which issued this policy; and 2) you, your, named Insured, First Named Insured, and Insured mean the Named Corporation, Named Organization, Named Sponsor, Named Insured, or Insured stated in the declarations page; and 3) Other Insured(s) means all other persons or entities afforded coverage under the policy.
In consideration of the premium charged, it is hereby understood and agreed that the cancellation clause is replaced with the following:
A) | CANCELLATION |
1. | This policy may be cancelled by the Insured by surrender of this policy to the Insurer or by giving written notice of cancellation. |
2. | If this policy has been in effect for sixty (60) days or more, or if this is a renewal of a policy the Insurer issued, the Insurer may cancel this policy for one or more of the following reasons: |
a) | nonpayment of premium; |
b) | a false statement knowingly made by the Insured or Other Insured(s) on the application for insurance; or |
c) | a substantial change in the exposure or risk, other than that indicated on the application and underwritten as of the effective date of the policy unless the Insured has notified the Insurer of the change and the Insurer has accepted such change. |
3. | The Insurer will give the named Insured written notice of cancellation at least: |
a) | 10 days prior to the effective date if cancellation is for nonpayment of premium; or |
b) | 45 days prior to the cancellation date if for any of the other reasons listed above. |
B) | NONRENEWAL, INCREASE IN PREMIUM, REDUCTION IN COVERAGE ON RENEWAL: |
If the Insurer decides not to renew, increase the premium or reduce the coverage on renewal, the Insurer shall mail or deliver to the named Insured written advance notice at least 45 days prior to the effective date of such decision. This provision will not apply, where:
1) | the Insured fails to pay any premium deposit required by the Insurer for renewal; or |
2) | the policy is in effect less than 60 days, unless it is a renewal policy. |
All notices will be delivered or mailed by first class mail to the named Insured at the last known address as shown in the Insurers records.
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
END 001
52134 (10/91) |
Page 1 of 1 |
ENDORSEMENT# 2
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
NOTICE OF CLAIM
(REPORTING BY E- MAIL)
In consideration of the premium charged, it is hereby understood and agreed as follows:
1. | Email Reporting of Claims: In addition to the postal address set forth for any Notice of Claim Reporting under this policy, such notice may also be given in writing pursuant to the policys other terms and conditions to the Insurer by email at the following email address: |
c- claim@AIG.com
Your email must reference the policy number for this policy. The date of the Insurers receipt of the emailed notice shall constitute the date of notice.
In addition to Notice of Claim Reporting via email, notice may also be given to the Insurer by mailing such notice to: AIG, Financial Lines Claims, P.O. Box 25947, Shawnee Mission, KS 66225 or faxing such notice to (866) 227- 1750.
2. | Definitions: For this endorsement only, the following definitions shall apply: |
(a) | Insurer means the Insurer, Underwriter or Company or other name specifically ascribed in this policy as the insurance company or underwriter for this policy. |
(b) | Notice of Claim Reporting means notice of claim/circumstance, notice of loss or other reference in the policy designated for reporting of claims, loss or occurrences or situations that may give rise or result in loss under this policy. |
(c) | Policy means the policy, bond or other insurance product to which this endorsement is attached. |
3. | This endorsement does not apply to any Kidnap & Ransom/Extortion Coverage Section, if any, provided by this policy. |
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
END 002
99758 (8/08) |
Page 1 of 1 |
ENDORSEMENT# 3
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
ADDITIONAL INSUREDS RIDER
It is agreed that:
1. | Item 1 of the Declarations, Name of Insured (herein called Insured), is amended to include the following listed entities as additional Insureds under the attached bond: |
Stone Harbor Emerging Markets Fund
Stone Harbor High Yield Bond Fund
Stone Harbor Local Markets Fund
Stone Harbor Emerging Markets Corporate Debt Fund
Stone Harbor Investment Grade Fund
Stone Harbor Strategic Income Fund
Stone Harbor Emerging Markets Debt Allocation Fund
Stone Harbor Emerging Markets Debt Blend Fund
Stone Harbor Emerging Markets Income Fund
Stone Harbor Emerging Markets Total Income Fund
2. | Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above stated. |
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
END 3
113015 (10/12) |
ENDORSEMENT# 4
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
INSURING AGREEMENT (A) FIDELITY AMENDED RIDER
(and to or except FOR Loans AND/or Trading)
It is agreed that:
1. | Insuring Agreement (A) FIDELITY of the INSURING AGREEMENTS Clause is deleted in its entirety and replaced with the following: |
FIDELITY
(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 manifest 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 the Insured establishes that the Employee intended to participate in the financial benefit.
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 employment.
2. | Solely for the purpose of Insuring Agreement (A) FIDELITY (as amended by this rider), the following definitions are added to the attached bond: |
Loans means all extensions 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.
MNSCPT |
END 4 |
ENDORSEMENT# 4 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
Trading means trading or other dealings in securities, commodities, futures, options, swaps, foreign or federal funds, currencies, foreign exchange and the like. |
3. | Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above stated. |
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
MNSCPT |
END 4 |
ENDORSEMENT# 5
This endorsement, effective at 12:01 am Policy number 02-271-68-22 |
November 1, 2015 forms a part of |
Issued to: STONE HARBOR INVESTMENT FUNDS
By: National Union Fire Insurance Company of Pittsburgh, Pa.
CANCELLATION AMENDATORY
(RETURN PRO RATA)
Wherever used herein: (1) Policy means the policy or bond to which this endorsement or rider is made part of; (2) Insurer means the Insurer, Underwriter, Company or other name specifically ascribed in this Policy as the insurance company or underwriter for this Policy; (3) Named Entity means the Named Entity, Named Corporation, Named Organization, Named Sponsor, Named Insured, First Named Insured, Insureds Representative, Policyholder or equivalent term stated in Item 1 of the Declarations; and (4) Period means the Policy Period, Bond Period or equivalent term stated in the Declarations.
In consideration of the premium charged, it is hereby understood and agreed that notwithstanding anything to the contrary in any CANCELLATION or TERMINATION clause of this Policy (and any endorsement or rider amending such cancellation or termination clause, including but not limited to any state cancellation/non- renewal amendatory attached to this policy), if this Policy shall be canceled by the Named Entity, the Insurer shall return to the Named Entity the unearned pro rata proportion of the premium as of the effective date of cancellation.
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
END 005
101036 (4/09) |
Page 1 of 1 |
ENDORSEMENT# 6
This endorsement, effective 12:01 am |
November 1, 2015 forms a part of | |||
policy number 02-271-68-22 |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
COMPUTER CRIME COVERAGE RIDER
In consideration of the premium charged, it is hereby understood and agreed that bond is hereby amended as follows:
1. | All the terms and conditions of bond form 41206 (9/84) shall apply to coverage as is afforded by this endorsement unless specifically stated otherwise herein or in any endorsement attached hereto. |
2. | Items 3 of the Declarations is hereby amended by adding the following under Optional Insuring Agreements and Coverages: |
Single Loss Limit of_Liability |
Single Loss Deductible | |||
Computer Systems Fraud |
$4,000,000 | $50,000 | ||
Data Processing Service Operations |
$4,000,000 | $50,000 | ||
Voice Initiated Transfer Fraud |
$4,000,000 | $50,000 | ||
Telefacsimile Transfer Fraud |
$4,000,000 | $50,000 | ||
Destruction of Data or Programs by Hacker |
$4,000,000 | $50,000 | ||
Destruction of Data or Programs by Virus |
$4,000,000 | $50,000 | ||
Voice Computer Systems Fraud |
$4,000,000 | $50,000 |
3. | The Declarations page is hereby amended by adding the following paragraph to the end thereof: |
Item 7.
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.
MNSCPT |
END 6 |
ENDORSEMENT# 6 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
4. | The Insuring Agreements are hereby amended by adding the following Insuring Agreements to the Bond: |
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 bond; or a Computer System first used by the Insured during the bond period; as provided by General Agreement B; 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 bond purportedly sent by a customer, financial institution or automated clearing house. |
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 |
MNSCPT |
END 6 |
ENDORSEMENT# 6 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
a Computer System covered under the terms of the COMPUTER SYSTEMS FRAUD Insuring Agreement, 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 is 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 bond purportedly sent by a customer, financial institution or automated clearing house. |
In this Insuring Agreement, Client means an entity for which the Insured serves as data processor under the terms of a written agreement.
VOICE INITIATED TRANSFER FRAUD
Loss resulting directly from the Insured having, in good faith, transferred Funds from a Customers account through a Computer System covered under the terms of the COMPUTER SYSTEMS FRAUD Insuring Agreement in reliance upon a fraudulent voice instruction transmitted by telephone which was purported to be from:
MNSCPT |
END 6 |
ENDORSEMENT# 6 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
(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 Employee 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 has provided the Insured with the names of persons authorized to initiate such transfers, and with which the Insured has established an instruction verification mechanism.
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 the COMPUTER SYSTEMS FRAUD Insuring Agreement in reliance upon a fraudulent instruction received through a Telefacsimile Device, and which instruction:
(1) | purports and reasonably appears to have originated from: |
MNSCPT |
END 6 |
ENDORSEMENT# 6 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
(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 as the verification call-back amount for this Insuring Agreement, the instructions 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 instructions to initiate transfers and has provided the Insured with the names of persons authorized to initiate such transfers, and with which the Insured has established an instruction verification mechanism.
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 the COMPUTER SYSTEMS FRAUD Insuring Agreement.
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 reasonable necessary to restore the Computer Programs to substantially the previous level of operational capability.
MNSCPT |
END 6 |
ENDORSEMENT# 6 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
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 the COMPUTER SYSTEMS FRAUD Insuring Agreement 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.
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 Insureds premises, whose System Administration is performed and controlled by the Insured; provided, however, that the unauthorized access was not made possible by
MNSCPT |
END 6 |
ENDORSEMENT# 6 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
(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 callers access to the Voice Computer System after not more than three unsuccessful attempts to input an Account Code. |
Special Condition: Under this 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.
5. | GENERAL AGREEMENTS A. ADDITIONAL OFFICES OR EMPLOYEES-CONSOLIDATION, MERGER OR PURCHASE OF ASSETS-NOTICE is hereby deleted in its entirety and is replaced with the following: |
ADDITIONAL OFFICES OR EMPLOYEES OR COMPUTER SYSTEMSCONSOLIDATION, MERGER OR PURCHASE OF ASSETS OR COMPUTER SYSTEMS
A. | If the Insured shall, while this bond is in force, establish any additional offices, other than by consolidation or merger with, or purchase or acquisition of assets or liabilities or computer systems of, another institution, such offices and computer systems shall be automatically covered hereunder from the date of such establishment without the requirement of notice to the Underwriter or the payment of additional premium for the remainder of the premium period. |
If the Insured shall, while this bond is in force, consolidate or merge with, or purchase or acquire assets or liabilities or computer systems of, another institution, the Insured shall not have such coverage as is afforded under this bond for loss which:
(a) has occurred or will occur in offices or premises or computer systems, or
(b) has been caused or will be caused by an employee or employees of such institution, or
MNSCPT |
END 6 |
ENDORSEMENT# 6 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
(c) | has arisen or will arise out of the assets or liabilities or computer systems acquired by the Insured as a result of such consolidation, merger or purchase of assets or liabilities or computer systems unless the Insured shall: |
(i) | give the Underwriter written notice of the proposed consolidation, merger or purchase of assets or liabilities or computer systems prior to the proposed effective date of such action; and |
(ii) | obtain the written consent of the Underwriter to extend the coverage provided by this bond to such additional offices or premises or computer systems, Employees and other exposures; and |
(iii) | upon obtaining such consent, pay to the Underwriter an additional premium. |
6. | Solely for the coverage provided by this rider, Section 1. DEFINITIONS (b) Property is hereby amended to include Electronic Data and Computer Programs. |
7. | Solely for the coverage provided by this rider, Section 1. DEFINITIONS is hereby amended by adding the following definitions to the end thereof: |
(i) | 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 purpose of making toll calls or utilizing voice mail box messaging capabilities or other similar functional features of the System; |
(ii) | 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; |
(iii) | 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, including the internet |
MNSCPT |
END 6 |
ENDORSEMENT# 6 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
by which Electronic Data are electronically collected, transmitted, processed, stored and retrieved; |
(iv) | 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; |
(v) | Funds means Money on deposit in an account; |
(vi) | 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; |
(vii) | 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; |
(viii) | 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 or System Maintenance activities; |
(ix) | 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; |
MNSCPT |
END 6 |
ENDORSEMENT# 6 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
(x) | 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; |
(xi) | 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; |
(xii) | 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. |
8. | Solely for the coverage provided by this rider, Section 2. EXCLUSIONS is hereby amended by adding the following definitions to the end thereof: |
(i) | any loss of the type or kind covered by any other Insuring Agreement provided in this financial institution bond, regardless of any deductible amount or limit of liability; |
(ii) | 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.); |
MNSCPT |
END 6 |
ENDORSEMENT# 6 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
(iii) | loss resulting directly or indirectly from entry or change of Electronic Data or Computer Programs in a Computer System, unless covered under the COMPUTER SYSTEMS FRAUD or DATA PROCESSING SERVICE OPERATIONS Insuring Agreements; |
(iv) | loss resulting directly or indirectly from the Insured having transferred Funds in reliance on the validity of a voice instruction, unless covered under the COMPUTER SYSTEMS FRAUD or VOICE INITIATED TRANSFER FRAUD Insuring Agreements; |
(v) | 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 the TELEFACSIMILE TRANSFER FRAUD Insuring Agreement; |
(vi) | loss resulting directly or indirectly from theft of confidential information; |
(vii) | 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 rider and would be imposed on the Insured regardless of the existence of the contract; |
(viii) | the cost of duplication of Electronic Data or Computer Programs, unless covered under the DESTRUCTION OF DATA OR PROGRAMS BY HACKER or DESTRUCTION OF DATA OR PROGRAMS BY VIRUS Insuring Agreements; |
(ix) | loss involving a Voice Computer System, unless covered under the VOICE COMPUTER SYSTEM FRAUD Insuring Agreement; |
(x) | 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 the COMPUTER SYSTEMS FRAUD or DATA PROCESSING SERVICE OPERATIONS Insuring Agreements;
MNSCPT |
END 6 |
ENDORSEMENT# 6 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
(xi) | 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; |
(xii) | loss resulting directly or indirectly from the fraudulent preparation, or fraudulent modification of Computer Programs unless covered under the COMPUTER SYSTEMS FRAUD or DATA PROCESSING SERVICE OPERATIONS Insuring Agreements; |
(xiii) | loss resulting directly or indirectly from: |
a. | 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 |
b. | failure or breakdown of electronic data processing media; or |
c. | error or omission in programming or processing; |
(xiv) | loss as a result of a threat to Computer System operations; |
(xv) | loss resulting directly or indirectly from the use of a telephone credit, debit, charge, identification or similar card to gain access to the Insureds Voice Computer System; |
(xvi) | 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 customers authentication mechanism. |
(xvii) | loss resulting directly or indirectly from payments made or withdrawals from a depositors account involving items of deposit which are not finally paid for any reason; |
(xviii) | loss of potential income, including but not limited to interest and dividends; |
MNSCPT |
END 6 |
ENDORSEMENT# 6 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
(xix) | loss 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; |
(xx) | any fees, costs and expenses incurred by the Insured; |
(xxi) | indirect or consequential loss of any nature; |
(xxii) | 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; |
(xxiii) | loss due to riot or civil commotion or loss due to military, naval or usurped power, war or insurrection; |
(xxiv) | 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; and |
(xxv) | loss as a result of a threat |
1) | to do bodily harm to any person; |
2) | to do damage to the premises or property of the Insured; or |
3) | to Computer Systems operations; |
9. | Solely for the coverage provided by this rider, Section 4. LOSS-NOTICE-PROOF-LEGAL PROCEEDINGS is hereby amended by adding the following section to the end thereof: |
(a) | 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. |
(b) | Proof of loss for claim under the Telefacsimile Transfer Fraud Insuring Agreement must include a copy of the document reproduced by the Telefacsimile Device. |
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
MNSCPT |
END 6 |
ENDORSEMENT# 7
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
CLAIMS EXPENSE RIDER
It is agreed that:
1. | The attached bond is amended by adding an Insuring Agreement (O) as follows: |
CLAIMS EXPENSE
Reasonable expenses necessarily incurred and paid by the Insured in preparing any valid claim for loss under any of the Insuring Agreements of this Bond, which loss exceeds the Single Loss Deductible Amount of $2,500. The Underwriters limit of liability for such expenses paid by the Insured in preparing any one such claim is $25,000 as shown on the Declaration Page of this Bond.
For the purposes of this Insuring Agreement, Exclusion (k) is amended by deleting the period at the end of this Exclusion and adding the following words; or Insuring Agreement (O).
2. | Nothing herein contained shall be held to vary, alter, waive or extend any of the terms, limitations, conditions or agreements of the attached bond other than as above stated. |
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
MNSCPT |
END 7 |
ENDORSEMENT# 8
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
LOSS- NOTICE- PROOF- LEGAL PROCEEDINGS AMENDED RIDER
It is agreed that:
1. | SECTION 4. LOSS-NOTICE-PROOF-LEGAL PROCEEDINGS of the CONDITIONS AND LIMITATIONS Clause is deleted in its entirety and replaced with the following: |
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 Insureds 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 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 CEO, CFO or COO of the Insured
MNSCPT |
END 8 |
ENDORSEMENT# 8 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
(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
2. | Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above stated. |
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
MNSCPT |
END 8 |
ENDORSEMENT# 9
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
CENTRAL HANDLING OF SECURITIES RIDER
It is agreed that:
1. | Those premises of Depositories listed in the following Schedule shall be deemed to be premises of the Insured, but only as respects coverage on Certificated Securities. |
SCHEDULED DEPOSITORY LOCATION COVERED
*ALL DEPOSITORIES USED BY THE INSURED*
2. | Certificated Securities held by such Depository shall be deemed to be Property as defined in the attached bond to the extent of the Insureds interest therein as effected by the making of appropriate entries on the books and records of such Depository. |
3. | The attached bond does not afford coverage in favor of any Depository listed in the Schedule above. When the Underwriter indemnifies the Insured for a loss covered hereunder, the Insured will assign the rights and causes of action to the extent of the claim payment against the Depository, or any other entity or person against whom it has a cause of action, to the Underwriter. |
4. | If the rules of the Depository named in the Schedule above provide that the Insured shall be assessed for a portion of the judgment (or agreed settlement) taken by the Underwriter based upon the assignment set forth in paragraph 3 above, and the Insured actually pays such assessment, then the Underwriter will reimburse the Insured for the amount of the assessment but not exceeding the amount of the loss payment by the Underwriter. |
5. | Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above stated. |
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
MNSCPT |
END 9 |
ENDORSEMENT# 10
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
STATE AMENDATORY INCONSISTENT
In consideration of the premium charged, it is hereby understood and agreed as follows:
1. | In the event that there is an inconsistency between any: (a) state amendatory attached to this policy, or any other wording attached to this policy to comply with applicable law; and (b) any other term, condition or limitation of this policy; then, to the extent permitted by law, subject to the limitations below, the Insurer will resolve the inconsistency by applying the terms, conditions or limitations that are more favorable to the policyholder. |
2. | This endorsement shall not apply to the extent that: (a) any state amendatory or other wording expressly limits coverage in order to comply with applicable law, or (b) any such amendatory or other compliance wording amends language applicable to premium. In such events, the state amendatory or other compliance wording will govern over any other term, condition or limitation of the policy. |
3. | Policyholder means the first Named Entity, Named Organization, Named Corporation, Named Sponsor, Named Insured or other policyholder designated in Item 1 of the Declarations of this policy. |
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
94039 (05/07) |
END 10 |
ENDORSEMENT# 11
This endorsement, effective at 12:01 am policy No. 02-271-68-22 |
November 1, 2015 forms a part of |
issued to: STONE HARBOR INVESTMENT FUNDS
By: National Union Fire Insurance Company of Pittsburgh, Pa.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ECONOMIC SANCTIONS ENDORSEMENT
This endorsement modifies insurance provided under the following:
The Insurer shall not be deemed to provide cover and the Insurer shall not be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose the Insurer, its parent company or its ultimate controlling entity to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union or the United States of America.
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
END 011
89644 (6/13) |
Page 1 of 1 |
ENDORSEMENT# 12
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
TERRORISM EXCLUSION
This insurance does not apply to loss, injury, damage, claim or suit, arising directly or indirectly as a result of, in connection with, or relating to terrorism including but not limited to:
1. | Any action taken in hindering or defending against an actual or expected incident of terrorism regardless of any other cause or event that contributes concurrently or in any sequence to the injury or damage; and |
2. | Any contemporaneous or ensuing loss caused by explosion, fire, heat, vandalism, looting, theft, civil commotion, rebellion or insurrection. |
However, this exclusion only applies if one or more of the following are attributable to an incident of terrorism:
1. | The total of damages and/or loss to all types of property exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will include the replacement cost, without deduction for depreciation, for all damage sustained by any property affected by the terrorism and business interruption losses sustained by owners or occupants of damaged property; or |
2. | The terrorism involves the actual, alleged or threatened use, release, escape, dispersal, application and or existence of: |
a. | Any nuclear reaction; |
b. | Radioactive materials or nuclear materials in any form and from any source; |
c. | Radionuclides; |
d. | Radiation emitted from any radioactive source whether natural or manmade; and/or |
e. | Electromagnetic pulses; or |
3. | The terrorism involves the actual, alleged or threatened use, release, escape, dispersal and/or application of pathogenic or poisonous chemical or biological materials, whether natural, manmade, living or dead. |
Multiple incidents of terrorism that occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership will be considered to be one incident.
DEFINITIONS - The following definitions shall apply:
82346 (01/05) |
END 12 |
ENDORSEMENT# 12 (Continued)
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT FUNDS
by National Union Fire Insurance Company of Pittsburgh, Pa.
1. | Terrorism means the use or threatened use of force or violence against person or property, or commission of an act dangerous to human life or property, or commission of an act that interferes with or disrupts an electronic or communication system, undertaken by any person or group, whether or not acting on behalf of or in any connection with any organization, government, power, authority or military force, when the effect is to intimidate, coerce or harm: |
a. | A government; |
b. | The civilian population of a country, state or community; or |
c. | To disrupt the economy of a country, state or community. |
2. | Nuclear materials means source material, special nuclear material or by-product material. Source material, special nuclear material, and by-product material have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof. |
3. | Biological materials includes all microorganisms, viruses, rickettsia, prions, nucleic acids, toxins, toxin-producing agents, and poisons produced by biological organisms. |
ALL OTHER TERMS AND CONDITIONS OF THE POLICY ARE THE SAME.
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
82346 (01/05) |
END 12 |
ENDORSEMENT# 13
This endorsement, effective 12:01 am policy number 02-271-68-22 |
November 1, 2015 forms a part of |
issued to STONE HARBOR INVESTMENT 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 | ||
41205 |
04/95 | INVESTMENT COMPANY BLANKET BOND | ||
41206 |
09/84 | Investment Company Blanket Bond guts | ||
52134 |
10/91 | COLORADO AMENDATORY - CANCELLATION/NONRENEWAL | ||
99758 |
08/08 | NOTICE OF CLAIM (REPORTING BY E-MAIL) | ||
113015 |
10/12 | ADDITIONAL INSUREDS RIDER | ||
MNSCPT |
INSURING AGREEMENT (A) FIDELITY AMENDED RIDER | |||
101036 |
04/09 | CANCELLATION AMENDATORY (RETURN PRO RATA) | ||
MNSCPT |
COMPUTER CRIME COVERAGE RIDER | |||
MNSCPT |
CLAIMS EXPENSE RIDER | |||
MNSCPT |
LOSS-NOTICE-PROOF-LEGAL PROCEEDINGS AMENDED RIDER | |||
MNSCPT |
CENTRAL HANDLING OF SECURITIES RIDER | |||
94039 |
05/07 | STATE AMENDATORY INCONSISTENT | ||
89644 |
06/13 | ECONOMIC SANCTIONS ENDORSEMENT | ||
82346 |
01/05 | TERRORISM EXCLUSION | ||
78859 |
10/01 | FORMS INDEX ENDORSEMENT | ||
11/01 | COLORADO CERTIFICATION - EXEMPT COMMERCIAL POLICYHOLDERS |
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
AUTHORIZED REPRESENTATIVE |
© All rights reserved.
END 013
78859 (10/01) |
Page 1 of 1 |
COLORADO CERTIFICATION
Exempt Commercial Policyholders
Colorado Regulation 5- 1- 13
Name of Insured:
|
STONE HARBOR INVESTMENT FUNDS | |
Address: |
1290 BROADWAY, SUITE 1100 DENVER, CO 80203
| |
Name of Insurer: |
National Union Fire Insurance Company of Pittsburgh, Pa. | |
Address: |
175 Water Street New York, NY 10038-4969
| |
Name of Broker: |
AON RISK INSURANCE SERVICES WEST, INC. | |
Address: |
1900 16TH STREET SUITE 1000 DENVER, CO 80202 | |
Policy Number: |
02-271-68-22 | |
Policy Effective Date: |
November 1, 2015 | |
Brief Description of Policy: |
zMIP0406 |
This hereby certifies that STONE HARBOR INVESTMENT FUNDS (Insureds Name) is an Exempt Commercial Policyholder that:
1. | has a risk manager to negotiate insurance coverage. The risk manager is either: i) an employee of the exempt commercial policyholder or ii) a third party consultant retained by the policyholder, |
Employee |
¨ |
Retained Third Party Consultant |
¨ |
who provides skilled services in loss prevention, loss reduction, or risk and insurance coverage analysis, and the purchase of insurance, and who possesses at least one of the following credentials:
A bachelors or higher degree in risk management issued by an accredited college or university |
¨ | |
A designation as a Chartered Property and Casualty Underwriter (CPCU) issued by the AICPCU/IIA |
¨ | |
A designation as an Associate in Risk Management (ARM) issued by the AICPCU/IIA |
¨ | |
A designation as a Certified Risk Manager (CRM) issued by the National Alliance for Insurance Education & Research |
¨ | |
A designation as a Fellow in Risk Management (FRM) issued by the Global Risk Management Institute/Risk and Insurance Management |
¨ | |
At least seven (7) years of experience in property and casualty: 1) risk financing, 2) claims administration, 3) loss prevention, or 4) risk and insurance coverage analysis |
¨ |
CO Exempt Commercial Policyholder Certification Form Revised 11/2001 |
Page 1 of 2 |
2. | meets one (1) of the following criteria: |
Has a total premium of $50,000 or more for all Property and Casualty (defined as fire, casualty, inland marine, medical malpractice, credit, employers liability) |
¨ | |
Possesses a Net Worth of $10M or more |
¨ | |
Has net revenues or sales exceeding $10M |
¨ | |
Has at least 25 full- time employees per individual company or affiliated group |
¨ | |
Is a not for profit organization that has an annual operating budget of at least $2.5M |
¨ | |
Is a public entity that has an operating budget of at least $10M |
¨ | |
Is a municipality with a population of over twenty thousand (20,000) inhabitants |
¨ |
3. | qualifies as an exempt commercial policyholder as defined pursuant to Colorado Regulation 5- 1- 13 (outlined in items 1 and 2 above); |
Senior Officer or Manager of the Insureds Signature: |
||
Name and Position of Senior Authorized Representative above: |
||
Date: |
||
Insureds Risk Managers Signature: |
||
Name of Risk Manager: |
||
Date: |
CO Exempt Commercial Policyholder Certification Form Revised 11/2001 |
Page 2 of 2 |
CLAIM REPORTING FORM
Issuing Company: National Union Fire Insurance Company of Pittsburgh, Pa.
Reported under Policy/Bond Number: 02-271-68-22 Date:
Type of Coverage: D&O E&O Fidelity (complete the Fidelity Supplemental on the next page)
Insureds Name, as given on Policy Declarations (Face Page):
STONE HARBOR INVESTMENT FUNDS |
||||
|
||||
|
Contact Person: |
|
Title: |
|
Phone: | ( ) - Ext |
eMail: |
|
@ |
|
|
Case or Claimant Name: |
|
|||||
|
If the party involved is different from Insured Name (as given on Policy Declarations) state relationship:
|
Insurance Broker/Agent: | AON RISK INSURANCE SERVICES WEST, INC. |
Address: | 1900 16TH STREET, SUITE 1000 |
Address: | DENVER, CO 80202 |
Contact: | KEVIN POMEROY |
Phone: |
|
eMail: | kevin.pomeroy@aon.com |
|
Send Notice of Claims to: |
AIG | Phone: | (888) 602- 5246 | |||
Financial Lines Claims | Fax: | (866) 227- 1750 | ||||
P.O. Box 25947 | Email: | c- Claim@AIG.com | ||||
Shawnee Mission, KS 66225 |
CLAIM REPORTING FORM
FIDELITY SUPPLEMENTAL
(Only complete this supplemental if the Claim is being reported under Fidelity Coverage)
Issuing Company: National Union Fire Insurance Company of Pittsburgh, Pa.
Reported under Policy/Bond Number: 02-271-68-22
|
Date of Discovery: |
|
Estimated Amount of loss: |
|
Cause of Loss: |
Employee Dishonesty |
|
Computer Fraud |
|
||||||||
Funds Transfer |
|
Robbery/Burglary |
|
|||||||||
ID Theft |
|
Forgery |
|
|||||||||
Client Property |
|
In Transit |
|
|||||||||
ERISA |
|
Credit Card Forgery |
|
|||||||||
Other |
|
if Other, describe: |
|
|
Send Notice Of Claims To: |
AIG | Phone: | (888) 602- 5246 | |||
Financial Lines Claims | Fax: | (866) 227- 1750 | ||||
P.O. Box 25947 | Email: | c- Claim@AIG.com | ||||
Shawnee Mission, KS 66225 |
centralized Customer Link and Information Management
Stone Harbor Investment Funds (Stone Harbor Funds)
Stone Harbor Emerging Markets Income Fund (Stone Harbor EDF Fund)
Stone Harbor Emerging Markets Total Income Fund (Stone Harbor EDI Fund)
(each a Fund, and collectively, the Funds)
Proposed Resolutions
Approval of Fidelity Bond and Mutual Fund D&O/E&O Insurance Policies
RESOLVED, that, after due consideration of all relevant factors, including, but not limited to, the value of the aggregate assets of each of Stone Harbor Funds, the Stone Harbor EDF Fund and the Stone Harbor EDI Fund to which any covered person may have access, the type and terms of the arrangements made for the custody and safekeeping of such assets, the number of series of each Fund, as applicable, named as insureds, the sizes and nature of the businesses of each Fund, and the nature of the portfolio securities of each Fund, it is hereby determined that the form of joint investment company blanket bond issued by National Union Fire Insurance Company (AIG) providing fidelity bond protection of $4,000,000 for a one-year period, and the allocation of premiums to each Fund, are in the best interests of the Funds, are fair and reasonable to the Funds, and are hereby approved;
FURTHER RESOLVED, that the Assistant Secretary of the Funds be, and is hereby designated as the officer responsible for making the necessary filings and giving the notices with respect to such fidelity bond required by paragraph (g) of Rule 17g-1 under the Investment Company Act of 1940, as amended (the 1940 Act);
FURTHER RESOLVED, that the allocation of payment of premiums for the fidelity bond by each Fund on the basis of each Funds relative net assets be, and hereby is, approved; and
FINALLY RESOLVED, that the proper officers of the Funds be, and each of them hereby is, authorized to make any and all payments, and to do any and all other acts, in the name of the Funds and on their behalf, as they, or any of them, may determine to be necessary or desirable and proper with the advice of counsel in connection with or in furtherance of the foregoing resolutions.
Approval of Joint Insured Agreements
RESOLVED, that the Agreement Among Joint Insureds among the Funds as insureds under a joint investment company blanket bond by National
Union Fire Insurance Company (AIG), substantially in the form presented to the Boards at this Meeting, be, and it hereby is, approved.
AGREEMENT AMONG JOINT INSUREDS
THIS AGREEMENT made as of November 1, 2015 among Stone Harbor Investment Funds, Stone Harbor Emerging Markets Income Fund and Stone Harbor Emerging Markets Total Income Fund (each, a Fund and together, the Funds).
WHEREAS, Stone Harbor Investment Partners LP (Stone Harbor) serves as the investment adviser for the Funds (Stone Harbor and any other advisory firm that is an affiliate of Stone Harbor, an Affiliated Manager);
WHEREAS, the Funds are named as insureds under a joint Investment Company Blanket Bond (the Bond) issued by Federal Insurance Company (the Insurer);
WHEREAS, the Funds desire to establish (i) the basis on which additional investment companies for which an Affiliated Manager may hereafter act as investment adviser may be added as named insureds under the Bond, and (ii) the criteria by which recoveries under the Bond shall be allocated among the parties;
NOW, THEREFORE, it is agreed as follows:
1. If the Insurer is willing without additional premium to add, as an insured under the Bond, any investment company not listed at the head of this agreement for which an Affiliated Manager hereafter is investment adviser, which may be included in the Bond pursuant to Rule 17g-1(b) under the Investment Company Act of 1940, as amended, and the rules and regulations thereunder (the Act), the Funds agree (a) that such addition may be made, provided that a majority of those Trustees of each Fund who are not interested persons of such Fund shall approve such addition, and (b) that such investment company may become a party to this agreement and be included within the terms Trust, Fund, or party, provided that in each case such investment company shall have executed and delivered to the Funds its written agreement to become a party hereto and to be bound by the terms of this Agreement.
2. In the event that the claims of loss of two or more insureds under the Bond are so related that the Insurer is entitled to assert that the claims must be aggregated, each Fund shall receive an equitable and proportionate share of the recovery, but at least equal to the amount it would have received had it provided and maintained a single insured bond with the minimum coverage required under Rule 17g-1 under the Act.
3. A copy of the Agreement and Declaration of Trust or Trust Instrument of each Fund is on file with the Secretary of State of the state or commonwealth in which such Fund was organized, and notice is hereby given that this instrument is executed on behalf of the Trustees of each Fund as Trustees and not individually and that the obligations under this instrument are not binding upon any of the Trustees or holders of shares of beneficial interest of any Fund individually but are binding only upon the respective assets and property of each Fund.
4. This Agreement may be executed in two or more counterparts, all of which taken together shall be deemed one and the same instrument.
IN WITNESS WHEREOF the parties have caused these presents to be executed by their officers hereunto duly authorized all as of the day and year first above written.
STONE HARBOR INVESTMENT FUNDS | ||
By: | /s/ Thomas M. Reynolds | |
Name: Thomas M. Reynolds | ||
Title: Principal Financial and Accounting Officer | ||
STONE HARBOR EMERGING MARKETS INCOME FUND | ||
By: | /s/ Jeffrey S. Scott | |
Name: Jeffrey S. Scott | ||
Title: Chief Compliance Officer | ||
STONE HARBOR EMERGING MARKETS TOTAL INCOME FUND | ||
By: | /s/ Adam J. Shapiro | |
Name: Adam J. Shapiro | ||
Title: Secretary |