Investment Management Contract Template for Germany

The Investment Management Contract is a crucial document used to establish a formal relationship between investment managers and their clients in Germany. It is required whenever a professional investment manager takes on the responsibility of managing client assets under German law. The contract must comply with strict regulatory requirements set out in German financial legislation, particularly the Kapitalanlagegesetzbuch (KAGB) and related regulations. This document covers essential elements including investment strategy, risk management, fee structures, reporting obligations, and regulatory compliance requirements. It is designed to protect both the investment manager and the client while ensuring transparency and compliance with German and EU financial regulations. The contract is particularly important given Germany's robust regulatory framework for financial services and the need for clear documentation of investment management relationships.

1. Parties: Identification of the investment manager and the client, including their legal status and contact details

2. Background: Context of the agreement and brief description of the services to be provided

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Appointment and Authority: Formal appointment of the investment manager and scope of their authority

5. Investment Objectives and Strategy: Agreed investment objectives, strategy, and any restrictions

6. Services: Detailed description of investment management services to be provided

7. Client's Representations and Warranties: Client's confirmations regarding their status, authority, and understanding of risks

8. Manager's Representations and Warranties: Manager's confirmations regarding licenses, capabilities, and compliance

9. Fees and Expenses: Management fees, performance fees, and other charges

10. Reporting and Valuations: Requirements for periodic reporting, portfolio valuations, and performance measurement

11. Risk Disclosures: Mandatory risk warnings and disclosures under German law

12. Compliance and Anti-Money Laundering: Compliance obligations and AML requirements

13. Confidentiality and Data Protection: Confidentiality obligations and GDPR compliance

14. Liability and Indemnification: Extent of manager's liability and indemnification provisions

15. Term and Termination: Duration of agreement and termination provisions

16. General Provisions: Standard legal provisions including notices, amendments, governing law, etc.