Discretionary Investment Management Agreement Template

As an investor, it’s important to ensure that your hard-earned money is being managed in a way that meets your financial goals. One way to do this is to sign a discretionary investment management agreement with a professional investment manager.

A discretionary investment management agreement outlines the terms and conditions under which an investor entrusts their assets to a professional to manage on their behalf. The agreement sets out the investment objectives, the investment strategy, and the fees charged for the services provided.

A well-drafted discretionary investment management agreement template is critical for any investor. It should be customized to meet the specific needs of the investor and should take into account the investor’s risk tolerance, financial goals, and investment preferences.

The agreement should address the following key areas:

Investment Objectives: The agreement should clearly state the objectives of the investment and how they align with the investor’s long-term financial goals. This can include the target rate of return, risk tolerance, and any specific investment restrictions.

Investment Strategy: The agreement should also outline the investment strategy that the investment manager will follow in managing the investor’s assets. This can include the types of securities and instruments that will be invested in, such as bonds, stocks, mutual funds, or exchange-traded funds.

Fees: The agreement should clearly state the fees that the investor will be charged for the investment manager’s services. This can include management fees, performance fees, and any additional fees or expenses that may be incurred.

Reporting: The agreement should also outline the regular reporting that the investor will receive from the investment manager. This can include periodic portfolio reports, performance updates, and any risk management information.

Termination: The agreement should include a termination provision that outlines the circumstances under which the agreement can be terminated by either party. This can include a defined notice period and any applicable fees or penalties.

Overall, a well-drafted discretionary investment management agreement template is a critical component of any investor’s financial plan. It ensures that the investor’s assets are being managed in a way that aligns with their financial goals and risk tolerance, and it provides a clear understanding of the fees and reporting that they can expect from their investment manager.