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Investment Advisory Agreement

This template is for an Investment Advisory Agreement outlining the terms and conditions between an investment advisor and a client. It should be used when an individual or entity seeks professional advice and management for their investment portfolio.

Updated 16d ago
investmentadvisoryagreementfinanceportfolio managementwealth management

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

INVESTMENT ADVISORY AGREEMENT

This Investment Advisory Agreement (the 'Agreement') is made and entered into as of {{effective_date}} (the 'Effective Date'), by and between:

{{client_name}}, residing at {{client_address}} (the 'Client'), and

{{advisor_company_name}}, a company duly incorporated under the laws of {{country}}, with its registered office at {{advisor_company_address}} (the 'Advisor').

WHEREAS, the Client desires to retain the Advisor to provide investment advisory services; and

WHEREAS, the Advisor is duly licensed and qualified to provide such services and is willing to accept such engagement on the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties agree as follows:

1. APPOINTMENT AND SERVICES

1.1. The Client hereby appoints the Advisor to act as its exclusive investment advisor, and the Advisor hereby accepts such appointment, to provide non-discretionary/discretionary (delete as applicable) investment advisory services to the Client.

1.2. The services to be provided by the Advisor shall include, but not be limited to, the following:

(a) Developing and reviewing investment objectives and strategies in consultation with the Client.

(b) Monitoring the Client's investment portfolio and providing recommendations for buying, selling, or holding securities.

(c) Providing regular performance reports and statements.

(d) Assisting the Client with asset allocation and risk management.

(e) Other related services as mutually agreed upon from time to time.

2. COMPENSATION

2.1. In consideration for the services rendered by the Advisor, the Client shall pay the Advisor a fee as follows:

(a) A percentage of assets under management (AUM): {{aum_percentage}}% per annum, calculated quarterly/monthly (delete as applicable) based on the average market value of the assets managed by the Advisor.

(b) A fixed fee of {{fixed_fee_amount}} {{currency}} per quarter/month (delete as applicable).

(c) A performance-based fee as described in Appendix A (if applicable).

2.2. All fees are exclusive of any applicable taxes, which shall be borne by the Client.

2.3. Invoices for fees will be issued {{invoice_frequency}} and are payable within {{payment_due_days}} days of the invoice date.

3. CLIENT'S RESPONSIBILITIES

3.1. The Client agrees to provide the Advisor with accurate and complete information regarding their financial situation, investment objectives, risk tolerance, and any changes thereto.

3.2. The Client acknowledges that investment decisions are ultimately their responsibility and that the Advisor will provide recommendations based on the information provided.

3.3. The Client shall promptly inform the Advisor of any changes in their contact information, financial circumstances, or investment objectives.

4. ADVISOR'S COVENANTS

4.1. The Advisor shall at all times act in good faith and in the best interests of the Client.

4.2. The Advisor shall maintain all necessary licenses and registrations required to provide investment advisory services in {{country}}.

4.3. The Advisor shall keep all Client information confidential, subject to legal and regulatory requirements.

4.4. The Advisor shall exercise reasonable care and diligence in performing its duties under this Agreement.

5. DISCLAIMER AND LIMITATION OF LIABILITY

5.1. The Client acknowledges that investments involve inherent risks, and there is no guarantee of future performance or return on investment.

5.2. The Advisor shall not be liable for any loss, damage, or expense arising from investment decisions made by the Client based on the Advisor's recommendations, unless such losses are a direct result of the Advisor's gross negligence, wilful misconduct, or breach of this Agreement.

5.3. In no event shall the Advisor's liability exceed the total advisory fees paid by the Client to the Advisor during the {{liability_period}} months preceding the event giving rise to the claim.

6. TERMINATION

6.1. This Agreement shall commence on the Effective Date and continue until terminated by either party.

6.2. Either party may terminate this Agreement by providing {{notice_period}} days' written notice to the other party.

6.3. In the event of termination, the Client shall pay all outstanding fees and expenses incurred up to the date of termination.

6.4. The Advisor may terminate this Agreement immediately upon written notice if the Client breaches any material term of this Agreement.

7. GOVERNING LAW AND DISPUTE RESOLUTION

7.1. This Agreement shall be governed by and construed in accordance with the laws of {{country}}.

7.2. Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or invalidity thereof, shall be settled by amicable negotiations between the parties.

7.3. If the dispute cannot be resolved amicably within {{negotiation_period}} days, it shall be referred to arbitration in accordance with the rules of the {{arbitration_institution}} in {{arbitration_city}}, {{country}}.

8. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether oral or written.

9. AMENDMENTS

No amendment or modification of this Agreement shall be valid unless made in writing and signed by both parties.

SIGNATURES

IN WITNESS WHEREOF, the parties have executed this Investment Advisory Agreement as of the Effective Date.

FOR THE CLIENT:

_____________________________

{{client_name}}

Date: {{client_signature_date}}

FOR THE ADVISOR:

_____________________________

{{advisor_company_name}}

Name: {{advisor_signatory_name}}

Title: {{advisor_signatory_title}}

Date: {{advisor_signature_date}}

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