The Asset Management Agreement serves as the foundational document for establishing a professional investment management relationship in Pakistan. It is used when clients wish to delegate the management of their investment portfolio to a licensed asset management company. The agreement must comply with the Securities and Exchange Commission of Pakistan (SECP) regulations, the Non-Banking Finance Companies Rules, and other relevant financial laws. It typically includes detailed provisions for investment strategy, risk management, fee structures, and reporting requirements, while also incorporating specific considerations for the Pakistani market, such as Shariah compliance options and foreign exchange regulations. This document is essential for both institutional and individual clients seeking professional portfolio management services and provides a clear framework for the fiduciary responsibilities of the asset manager.

1. Parties: Identification of the Asset Manager and the Client with full legal names and addresses

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

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

4. Appointment and Scope of Services: Formal appointment of the asset manager and detailed description of services to be provided

5. Investment Objectives and Strategy: Clear statement of investment goals, strategy, and any specific investment restrictions

6. Powers and Duties of the Asset Manager: Detailed outline of the asset manager's authority, responsibilities, and limitations

7. Client's Obligations: Responsibilities and obligations of the client, including information provision and cooperation

8. Fees and Expenses: Comprehensive breakdown of management fees, performance fees, and other charges

9. Reporting and Valuations: Requirements for periodic reporting, performance measurement, and valuation methods

10. Risk Disclosures: Mandatory risk warnings and acknowledgments as per SECP requirements

11. Compliance and Anti-Money Laundering: Regulatory compliance obligations and AML/KYC requirements

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

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

14. Indemnification and Liability: Limitations of liability and mutual indemnification provisions

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

16. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment