Investment Management Agreements (IMAs) are legal documents that outline the terms and conditions governing the relationship between an investment manager or advisor and their clients. The purpose of an IMA is to establish a framework for managing the assets of the client, including strategies for investment, risk management, and reporting.
Most IMAs are comprehensive documents that cover a range of topics, including the services to be provided by the investment manager, the compensation structure, the roles and responsibilities of all parties involved, and the procedures for resolving disputes. They may also include specific provisions related to performance benchmarks and investment guidelines.
While IMAs can be customized to fit the unique needs of each client and investment manager, there are some common elements that are typically included in every agreement. These include:
• Scope – This section outlines the scope of the services that the investment manager will provide to the client. It may include information on investment objectives, policies, and strategies, as well as the investment vehicles that will be used.
• Compensation – This section establishes the compensation structure for the investment manager. It may include fees that are based on a percentage of assets under management, flat fees, or a combination of both.
• Reporting – This section outlines the reporting requirements for the investment manager. It may include details on how often reports will be provided, what information will be included, and how the information will be presented.
• Termination – This section outlines the terms and conditions under which either party may terminate the agreement. It may include provisions related to notice requirements, fees, and the disposition of assets.
One useful resource for learning more about IMAs is the Investment Management Agreement Wiki. This online platform provides a wealth of information on the legal and practical aspects of IMAs, including sample agreements, best practices, and case studies.
The Wiki is a collaborative effort, meaning that it is constantly evolving with new contributions from experts in the field. This makes it an invaluable resource for anyone involved in investment management, whether you are an investment manager, a lawyer, or a client seeking to understand the terms of an IMA.
In conclusion, Investment Management Agreements are critical documents for establishing the terms and conditions of the relationship between an investment manager and their clients. While each IMA is different, they typically cover common topics related to investment objectives, compensation, reporting, and termination. The Investment Management Agreement Wiki is a useful resource for anyone seeking to learn more about IMAs and best practices for their use.