Asset Management Contract Template for Philippines

The Asset Management Contract serves as the primary legal framework for establishing and governing the relationship between professional asset managers and their clients in the Philippines. This document is essential when an individual or institution wishes to delegate the management of their investment portfolio to a professional manager licensed under Philippine regulations. The contract comprehensively addresses investment mandates, risk parameters, fee structures, and reporting requirements while ensuring compliance with Philippine securities laws, BSP regulations, and anti-money laundering requirements. It's particularly crucial for financial institutions, high-net-worth individuals, and corporate entities seeking professional portfolio management services, incorporating specific provisions for investor protection and regulatory compliance under Philippine jurisdiction.

1. Parties: Identification of the asset manager and the client, including complete legal names, addresses, and registration details

2. Background: Context of the agreement, including client's intention to appoint the asset manager and the manager's qualifications and licenses

3. Definitions: Detailed definitions of technical terms, financial concepts, and other important terms used throughout the agreement

4. Appointment and Authority: Formal appointment of the asset manager and scope of delegated authority

5. Services and Obligations: Detailed description of asset management services to be provided and the manager's obligations

6. Investment Objectives and Strategy: Agreed-upon investment objectives, strategy, and any specific investment guidelines or restrictions

7. Fees and Expenses: Comprehensive fee structure, including management fees, performance fees, and other charges

8. Reporting and Valuation: Requirements for periodic reporting, performance measurement, and asset valuation methodology

9. Risk Disclosures: Mandatory risk warnings and disclosures as required by Philippine regulations

10. Representations and Warranties: Standard representations and warranties from both parties

11. Compliance and Regulatory Matters: Obligations regarding regulatory compliance, anti-money laundering, and other applicable laws

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

13. Confidentiality: Provisions for handling confidential information and client data

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

15. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes