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Investment Management Agreement Def

Investment management agreement def

An investment management agreement (IMA) is a contract between an investor and a professional investment manager. The agreement outlines the terms and conditions of the relationship between the parties. It includes details on the investment strategy, the investment objectives, and the services to be provided by the investment manager.

The investment management agreement is a legal document that governs the relationship between the investor and the investment manager. It outlines the rights and responsibilities of both parties and helps to ensure that the investment manager acts in the best interests of the investor.

The investment management agreement typically includes the following:

Investment Strategy

The investment strategy outlines how the investment manager will invest the investor`s assets. It includes details on the types of investments that will be made, the asset allocation strategy, and any other investment guidelines that the investment manager will follow.

Investment Objectives

The investment objectives outline the goals that the investor wants to achieve through their investments. These goals could be long-term wealth accumulation, income generation, or capital preservation.

Services to be Provided

The investment management agreement also outlines the specific services that the investment manager will provide. These services could include investment research and analysis, portfolio management, and performance reporting.

Compensation

The investment management agreement also outlines how the investment manager will be compensated for their services. This could be a flat fee, a percentage of assets under management, or a combination of both.

Termination

The investment management agreement also includes details on how the relationship between the investor and investment manager can be terminated. This could be due to poor performance, changes in investment objectives, or other reasons.

In conclusion, an investment management agreement is a critical document that governs the relationship between an investor and an investment manager. It outlines the investment strategy, investment objectives, and services to be provided by the investment manager, as well as compensation and termination details. By having a clear and comprehensive investment management agreement in place, investors can have greater confidence in their investments and ensure that their objectives are being met.

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