An investment association investment management agreement is a legal document that outlines the roles and responsibilities of a specific investment association and the investment manager hired to handle its investments. The agreement is designed to ensure that the investment manager adheres to the investment objectives and policies set forth by the investment association.
Investment associations are typically organizations created by a group of investors who pool their money together to make collective investments. These associations may be created for a variety of reasons, such as to provide access to specific investment opportunities or to achieve economies of scale through collective bargaining power.
When an investment association hires an investment manager, it is important to have a legally binding investment management agreement in place. This agreement is essential for ensuring that the investment manager understands the investment goals and objectives of the association, and is in compliance with applicable laws and regulations.
The investment management agreement typically specifies the scope of the investment manager`s authority and responsibilities. This includes the types of investments that the manager is authorized to make on behalf of the investment association, as well as any specific investment restrictions that may be in place.
The agreement may also outline the fees and compensation that the investment manager will receive for managing the association`s investments. This typically includes a base fee, as well as a percentage of the returns earned on the investments.
In addition, the investment management agreement may include provisions for termination of the agreement. This may include specific circumstances under which the investment association can terminate the agreement, as well as any penalties or fees associated with early termination.
Overall, an investment association investment management agreement is an essential tool for ensuring that the investment manager is held accountable for meeting the investment objectives of the association. By outlining the roles and responsibilities of the investment manager in a legally binding agreement, the association can ensure that its investments are managed in a responsible and transparent manner.