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Asset Management Proposal Template for Germany

A comprehensive document prepared under German law that outlines an asset manager's proposed investment strategy, services, and terms for managing a client's investment portfolio. The proposal complies with German financial regulations including the KWG (Banking Act), KAGB (Investment Code), and MiFID II implementation requirements. It details the investment philosophy, risk management approach, fee structure, reporting commitments, and regulatory disclosures required under German jurisdiction, while addressing specific client investment objectives and constraints.

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What is a Asset Management Proposal?

The Asset Management Proposal serves as a formal document presented to potential clients seeking professional investment management services in Germany. It forms the foundation for establishing an asset management relationship and must comply with strict German regulatory requirements, including the Kreditwesengesetz (KWG), Kapitalanlagegesetzbuch (KAGB), and MiFID II implementation. The proposal outlines the asset manager's investment approach, proposed strategy, risk management framework, fee structure, and service offerings, tailored to the client's specific investment objectives and requirements. It includes mandatory regulatory disclosures, risk warnings, and client protection information as required under German financial services law, while also serving as a marketing document that showcases the asset manager's expertise and competitive advantages.

What sections should be included in a Asset Management Proposal?

1. Parties: Identification of the asset manager and the potential client

2. Background: Context of the proposal and brief introduction of the asset manager's expertise

3. Definitions: Key terms used throughout the proposal

4. Investment Philosophy: Overview of the asset manager's investment approach and principles

5. Scope of Services: Detailed description of proposed asset management services

6. Investment Strategy: Proposed investment strategy tailored to client's needs

7. Risk Management: Description of risk management processes and controls

8. Fee Structure: Detailed breakdown of management fees, performance fees, and other costs

9. Reporting and Communication: Description of reporting frequency, content, and communication channels

10. Regulatory Disclosures: Required disclosures under German law and MiFID II

11. Data Protection: GDPR-compliant explanation of data handling practices

12. Termination Provisions: Conditions and process for terminating the service

What sections are optional to include in a Asset Management Proposal?

1. ESG Integration: Details of ESG investment approach when relevant for environmentally conscious clients

2. Specialized Asset Classes: Specific sections for alternative investments or specialized strategies if applicable

3. Currency Management: For international clients requiring currency hedging or management

4. Tax Considerations: Specific tax-related information for clients with special tax status or requirements

5. Digital Services: Description of online platforms and digital tools if offered

6. Family Office Services: Additional family office services if targeting UHNW clients

7. Sustainable Finance Disclosures: Additional disclosures required under SFDR if marketing sustainable investments

What schedules should be included in a Asset Management Proposal?

1. Schedule 1: Fee Schedule: Detailed breakdown of all fees, charges, and calculation methodologies

2. Schedule 2: Investment Guidelines: Detailed investment restrictions, limits, and permitted instruments

3. Schedule 3: Risk Disclosure Document: Comprehensive risk disclosures required by German regulations

4. Schedule 4: Client Profile Assessment: MiFID II compliant client profiling and suitability assessment

5. Schedule 5: Performance Track Record: Historical performance data and relevant benchmarks

6. Schedule 6: Team Biographies: Profiles of key investment professionals

7. Appendix A: Sample Reports: Examples of client reporting and communications

8. Appendix B: Operational Procedures: Details of operational processes and client onboarding

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Publisher

黑料视频

Cost

Free to use

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