Fund Contract
This fund contract (hereinafter referred to as the “Contract”) is made between the undersigned parties, each party being referred to individually or collectively as the “Parties”.
1. Purpose
The Parties mutually agree to enter into this relationship to establish a mutual fund. The fund is being established to provide investment opportunities to individual and corporate investors commensurate with their objectives, preferences, and risks. The fund will seek to maximize its return to investors, while conforming to the Regulations of the Securities and Exchange Commission of the USA.
2. Objectives
The Parties agree to create a diversified portfolio that seeks to achieve capital appreciation, current income, and diversification. Stated goals will include preserving principal, providing diversification, preserving capital, and minimizing risk.
3. Initial Investment
The Parties agree that the initial investment will be provided as a single lump sum in US Dollars from the Party who is initiating the formation of the mutual fund. The amount of this initial investment shall be set forth in the fund prospectus and other documents related to the fund’s offering.
4. Contributions
The Parties agree that additional contributions may be made to the fund on a periodic basis, as outlined in the fund prospectus. Any additional contributions made to the fund shall be in US Dollars.
5. Investment Period
The Parties agree that the initial investment and any additional contributions made to the fund shall have a minimum investment term of one year. The fund will have regular review periods during which the Parties may decide to extend the investment period of the fund.
6. Investor Relations
The Parties agree to undertake all reasonable steps to provide investors with suitable information regarding the fund. These steps should include the development of a fund prospectus, regular statements of the fund’s performance, and other documents for investors that outline the fund’s objectives, performance, risks, fees, and other related topics.
7. Fund Manager
The Parties agree to appoint a mutual fund manager. It will be the responsibilities of the fund manager to ensure that investments are taking place in a prudent manner and in accordance with the fund’s stated objectives. The fund manager will also be responsible for setting up regular review periods to assess the fund’s performance.
8. Audit
The Parties agree to arrange for an independent financial audit of the mutual fund’s performance. This audit will take place at regular intervals, as outlined in the fund’s prospectus, and will be conducted by a certified public accountant.
9. Termination of the Fund
The Parties agree that the fund may be terminated at any time if it is determined that the fund is not performing as expected or if there are potential breaches of SEC regulations. Notice of the fund’s termination shall be provided to all investors.
10. Governing Law
This Contract and all of the terms and conditions hereof shall be interpreted, enforced, and governed by the laws of the State of New York, and any disputes shall be submitted to the jurisdiction of the courts of New York.
IN WITNESS WHEREOF, the Parties hereto have entered into this Contract on this day of _____________________
_____________________________ (Signature of Party 1)
_____________________________ (Signature of Party 2)
_____________________________ (Party 1)
_____________________________ (Party 2)
