Mutual Fund Agreement Template for Nigeria

The Mutual Fund Agreement is a crucial document used in the Nigerian financial services sector when establishing and operating a collective investment scheme. It serves as the primary legal framework defining the relationships between fund managers, trustees, custodians, and investors, while ensuring compliance with the Investment and Securities Act 2007 and SEC regulations. The agreement is essential when launching a new mutual fund or restructuring an existing one, containing detailed provisions for fund management, investment policies, operational procedures, fee structures, and investor rights. This document is particularly important in the Nigerian context where the regulatory environment requires strict adherence to specific guidelines for investor protection and market stability. The agreement must address local regulatory requirements while maintaining international best practices in fund management and governance.

1. Parties: Identification of the Fund Manager, Trustee, and Custodian with their respective regulatory licenses

2. Background: Context of the agreement, purpose of the mutual fund, and regulatory framework

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Fund Structure and Objectives: Description of fund type, investment objectives, and strategies

5. Appointment and Authority: Formal appointment of Fund Manager, Trustee, and Custodian with their respective powers

6. Investment Policy and Restrictions: Detailed investment guidelines, restrictions, and compliance with SEC regulations

7. Unit Trust Structure: Details of unit trust creation, pricing, and valuation methodology

8. Subscription and Redemption: Procedures for investing in and withdrawing from the fund

9. Fees and Expenses: All fees, charges, and expenses related to fund management and operation

10. Risk Disclosures: Comprehensive disclosure of investment risks and market factors

11. Reporting and Valuation: Requirements for financial reporting, NAV calculation, and performance measurement

12. Rights and Obligations: Detailed responsibilities of all parties including unit holders

13. Compliance and Governance: Regulatory compliance requirements and governance structure

14. Term and Termination: Duration of the agreement and conditions for termination

15. General Provisions: Standard clauses including notices, amendments, and governing law