IM, prospectus & fund documentation
Fund documentation forms the legal and operational framework of a fund. WeManage coordinates the drafting, updating and maintaining of Investment Management agreements, prospectuses and all related documentation.
What do IM, prospectus & fund documentation involve?
Fund documentation encompasses all formal documents that form the legal and operational framework of the fund. The most important of these are the Investment Management Agreement (IM) and the prospectus, supplemented by fund terms, risk descriptions and related documents.
What is an Investment Management Agreement?
The Investment Management Agreement (IM) is the agreement between the fund and the manager. It governs the investment strategy, the manager’s authority, the fee structure, reporting obligations and the responsibilities of both parties. The IM is the operational contract that drives the day-to-day management of the fund.
What is a prospectus?
The prospectus is the document provided to (potential) investors with information about the fund. It contains information about the investment strategy, risks, costs, participation terms and the manner of management. The prospectus is the most important information document for the investor.
Together, these documents form the legal and operational framework of the fund. The quality and currency of the documentation is closely linked to the regulatory obligations of the fund.
Why is solid fund documentation important?
Fund documentation is the foundation on which the entire fund rests. It determines what the fund may do, how it is managed and what rights investors have.
- Fund documentation determines what the fund may do, how it is managed and what rights and obligations investors have.
- A clear IM prevents misunderstandings between manager and fund about authority, costs and responsibilities.
- A good prospectus gives investors the information they need to make an informed decision.
- Up-to-date documentation is essential during supervision, audit and any disputes.
- Failing to update documentation can lead to compliance risks.
What WeManage handles
Investment Management Agreement
Drafting and maintaining the agreement between fund and manager.
Prospectus
Drafting the information document for (potential) investors.
Fund terms
Establishing the terms for participation, management and amendments.
Investment strategy
Description of the investment strategy and its boundaries.
Risk factors
Description of the key risks associated with participation in the fund.
Updates
Periodic and event-driven updates of the full fund documentation.
How does it work?
Inventory
Inventory of required documentation based on structure and regulation.
Drafting
Coordinating the drafting of IM, prospectus and related documents.
Alignment
Aligning the content with strategy, fee structure and regulation.
Approval
Approval of the documentation by the authorized bodies.
Updates
Periodic and event-driven updates of the documentation.
Frequently asked questions
An Investment Management Agreement (IM) is the agreement between the fund and the manager. It governs the investment strategy, the manager’s authority, the fee structure, reporting obligations and the responsibilities of both parties.
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