A sample investment management agreement non discretionary is a legal document that outlines the terms and conditions of an investment management relationship between an investor and a professional investment advisor. This type of agreement is typically used when the investor wants to delegate investment decisions to the advisor. In this article, we will explore the key elements of a sample investment management agreement non discretionary, and how it can benefit investors.
Key Elements of a Sample Investment Management Agreement Non Discretionary
1. Parties: The agreement should clearly state the names and addresses of both the investor and the investment advisor. It should also include the legal entity under which the advisor is operating, such as a registered investment advisor or a broker-dealer.
2. Services: The agreement should outline the specific investment management services that the advisor will provide, such as asset allocation, portfolio management, and investment research.
3. Fees: The agreement should specify the fees that the investor will be charged for the investment management services. This may include an asset-based fee, a flat fee, or a performance-based fee.
4. Investment Objectives: The agreement should outline the investor`s investment objectives, such as growth, income, or capital preservation. It should also specify any restrictions or preferences the investor may have, such as avoiding certain types of investments or sectors.
5. Investment Guidelines: The agreement should establish investment guidelines that the advisor must follow when managing the investor`s assets. This may include restrictions on the types of investments that can be made, or the percentage of assets that can be allocated to certain asset classes.
6. Reporting: The agreement should specify the frequency and format of investment performance reporting that the advisor will provide to the investor.
Benefits of Using a Sample Investment Management Agreement Non Discretionary
1. Professional Expertise: By delegating investment decisions to a professional investment advisor, investors can benefit from the expertise and experience of a seasoned professional.
2. Customized Service: A non-discretionary investment management agreement can be tailored to the specific investment objectives and preferences of the individual investor.
3. Transparency: By establishing clear investment guidelines and reporting requirements, the agreement provides transparency and accountability for investment decisions.
4. Risk Management: The agreement can help manage investment risk by setting limits on the types of investments that can be made and the allocation of assets to certain sectors.
Conclusion
A sample investment management agreement non discretionary is an important legal document that can help investors delegate investment decisions to a professional investment advisor. The agreement outlines the specific investment management services that the advisor will provide, the fees that will be charged, investment objectives, investment guidelines, and reporting requirements. By using a non-discretionary investment management agreement, investors can benefit from professional expertise, customized service, transparency, and risk management.