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Investment Management Contract Template for Indonesia

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Key Requirements PROMPT example:

Investment Management Contract

"I need an Investment Management Contract under Indonesian law for a Jakarta-based asset management firm managing a retail client's portfolio of IDX-listed securities, with standard reporting requirements and a management fee of 2% per annum."

Document background
The Investment Management Contract serves as the primary legal framework for establishing and governing the relationship between professional investment managers and their clients in Indonesia. This document is essential when an individual or institutional investor wishes to engage a licensed investment manager to professionally manage their investment portfolio. The contract must comply with Indonesian Financial Services Authority (OJK) regulations, particularly OJK Regulation No. 43/POJK.04/2015 and No. 3/POJK.04/2021, which govern investment management services. It outlines crucial elements such as investment strategies, risk parameters, fee structures, reporting requirements, and regulatory compliance obligations. The document is typically used by asset management companies, investment firms, and financial institutions providing discretionary portfolio management services to both retail and institutional clients in Indonesia.
Suggested Sections

1. Parties: Identification of the Investment Manager and the Client, including registration details and licensing information

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Investment Objectives and Strategy: Detailed description of investment goals, strategy, and any investment restrictions

6. Services and Responsibilities: Specific services to be provided by the investment manager and their responsibilities

7. Client's Representations and Warranties: Client's confirmations regarding their legal capacity, understanding of risks, and source of funds

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

9. Fees and Expenses: All fees, charges, and expenses, including management fees, performance fees, and other costs

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

11. Risk Disclosures: Comprehensive disclosure of investment risks and market conditions

12. Compliance and Anti-Money Laundering: Obligations regarding regulatory compliance and AML requirements

13. Confidentiality: Provisions regarding the protection and handling of confidential information

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

15. Governing Law and Dispute Resolution: Choice of law and methods for resolving disputes

Optional Sections

1. Custodian Arrangements: Required when a third-party custodian is involved in holding client assets

2. Foreign Investment Provisions: Required when the investment strategy includes foreign investments

3. Shariah Compliance: Required for Islamic investment management services

4. Investment Committee: Required when an investment committee will be established to oversee investment decisions

5. Sub-Manager Provisions: Required when the investment manager may delegate responsibilities to sub-managers

6. Force Majeure: Optional provisions for extraordinary circumstances affecting contract performance

7. Special Investment Restrictions: Required when client has specific investment restrictions or preferences

Suggested Schedules

1. Investment Guidelines: Detailed investment parameters, restrictions, and benchmarks

2. Fee Schedule: Detailed breakdown of all fees, calculations, and payment terms

3. Risk Disclosure Statement: Comprehensive statement of risks as required by OJK regulations

4. Authorized Persons: List of persons authorized to give instructions on behalf of the client

5. Reporting Format: Templates and specifications for regular reporting

6. KYC Documentation: Required know-your-customer forms and documentation

7. Power of Attorney: Standard form of power of attorney for investment management activities

8. Service Level Agreement: Detailed service standards and performance metrics

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions















































Clauses








































Relevant Industries

Financial Services

Asset Management

Banking

Investment Banking

Wealth Management

Private Equity

Insurance

Pension Funds

Family Offices

Corporate Treasury

Relevant Teams

Legal

Compliance

Investment Management

Risk Management

Client Relations

Operations

Finance

Treasury

Portfolio Management

Wealth Management

Due Diligence

Investment Analysis

Relevant Roles

Investment Manager

Portfolio Manager

Chief Investment Officer

Compliance Officer

Legal Counsel

Risk Manager

Client Relationship Manager

Fund Manager

Investment Advisor

Chief Financial Officer

Treasury Manager

Operations Manager

Due Diligence Officer

Investment Analyst

Wealth Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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