Investment Trust Agreement for Malaysia

Investment Trust Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes and regulates an investment trust arrangement between parties. The agreement sets out the terms for the management and administration of investment assets, including the appointment of trustees, investment powers, beneficiary rights, and distribution policies. It incorporates compliance with Malaysian regulatory requirements, including the Trustee Act 1949 and Capital Markets and Services Act 2007, while potentially accommodating both conventional and Islamic investment structures. The document details risk management procedures, reporting requirements, and the specific duties of all parties involved in the trust arrangement.

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What is a Investment Trust Agreement?

The Investment Trust Agreement is a crucial document used in Malaysia when establishing a formal trust structure for investment purposes. It is particularly relevant when individuals or organizations wish to separate the legal ownership and management of investment assets from their beneficial ownership. The agreement complies with Malaysian trust and securities laws, including the Trustee Act 1949 and Capital Markets and Services Act 2007, and can be structured to accommodate both conventional and Islamic investment principles. This document is essential for wealth management, family office arrangements, and institutional investment structures, providing detailed provisions for investment management, risk controls, distribution policies, and reporting requirements. It establishes the rights and obligations of all parties involved, including trustees, investment managers, and beneficiaries, while ensuring appropriate governance and oversight mechanisms are in place.

What sections should be included in a Investment Trust Agreement?

1. Parties: Identifies the settlor, trustee(s), and beneficiaries of the trust

2. Background: Sets out the context and purpose of establishing the investment trust

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

4. Declaration of Trust: Formal establishment of the trust and transfer of initial assets

5. Trust Powers and Investment Authority: Details the investment powers, restrictions, and authority of the trustees

6. Investment Objectives and Strategy: Specifies the agreed investment objectives and permitted investment strategies

7. Trustee Duties and Responsibilities: Outlines the obligations and responsibilities of the trustees

8. Risk Management: Describes risk management procedures and investment risk parameters

9. Valuation and Reporting: Specifies how and when trust assets will be valued and reported

10. Distribution Policy: Details how and when investment returns will be distributed to beneficiaries

11. Fees and Expenses: Specifies all fees, charges, and expenses related to trust administration

12. Amendment and Termination: Procedures for modifying the trust agreement and circumstances for termination

13. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and jurisdiction for disputes

What sections are optional to include in a Investment Trust Agreement?

1. Shariah Compliance: Required for Islamic investment trusts, specifying Shariah supervisory arrangements and compliance requirements

2. Multiple Trustees Provisions: Required when more than one trustee is appointed, detailing coordination and decision-making processes

3. Investment Committee: Optional section establishing an investment committee, its composition and role

4. Unit Trust Provisions: Required for unit trust structures, detailing unit issuance, pricing, and unitholder rights

5. Foreign Investment Provisions: Required when foreign investments are contemplated, addressing currency and regulatory considerations

6. Protector Provisions: Optional section appointing a protector and defining their powers and duties

7. ESG Investment Criteria: Optional section specifying environmental, social, and governance investment criteria

What schedules should be included in a Investment Trust Agreement?

1. Schedule 1: Initial Trust Assets: Details of assets initially settled into the trust

2. Schedule 2: Investment Guidelines: Detailed investment parameters, restrictions, and asset allocation guidelines

3. Schedule 3: Fee Schedule: Comprehensive breakdown of all fees, charges, and compensation

4. Schedule 4: Valuation Methods: Detailed procedures for valuing different types of trust assets

5. Schedule 5: Distribution Rules: Detailed rules and procedures for calculating and making distributions

6. Schedule 6: Reporting Requirements: Templates and requirements for periodic reports to beneficiaries

7. Appendix A: KYC Requirements: Know Your Customer and due diligence requirements for beneficiaries

8. Appendix B: Risk Disclosure: Detailed disclosure of investment risks and risk management procedures

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Banking

Investment Management

Wealth Management

Islamic Finance

Asset Management

Private Banking

Family Office Services

Trust Services

Corporate Services

Relevant Teams

Legal

Compliance

Investment Management

Risk Management

Wealth Management

Trust Administration

Operations

Client Services

Islamic Banking

Portfolio Management

Private Banking

Corporate Advisory

Fund Administration

Relevant Roles

Trust Officer

Investment Manager

Legal Counsel

Compliance Officer

Wealth Manager

Financial Advisor

Portfolio Manager

Risk Manager

Trust Administrator

Fund Manager

Private Banking Relationship Manager

Corporate Trustee

Shariah Advisor

Investment Analyst

Chief Investment Officer

Trust Operations 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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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