A Sub-Advisory Agreement is an agreement between a company and an investment
advisor. The investment advisor creates and manages accounts of the company's
clients for the purposes of investing securities and capital of the client. This Agreement
contains both standard clauses as well as opportunities for customization to ensure that
the understandings of the parties are properly set forth. This Agreement can be used by
small businesses or other entities that want to hire an investment advisor to manage
This Subadvisory Agreement (this “Agreement”) is hereby entered into on this
____ day of ___________, 20___ by and between ____________________ (“Company”)
and _______________________ (“Subadvisor”).
WHEREAS, Company provides ____________________________ (the
“Services”) [Comment: insert brief description of the services of Company] to various
WHEREAS, Company has directed various clients to enter into an agreement
with Subadvisor to establish accounts (the “Accounts”), wherein the Subadvisor provides
management and record-keeping services of the Assets in the Accounts (“the Assets”);
WHEREAS, the clients have granted various powers to Company and Company
is desirous of retaining Subadvisor to provide money management and investment
services to Company on a discretionary basis in respect to the Assets held in such
NOW THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties hereto agree as follows:
I. SERVICES OF SUBADVISOR
A. Company hereby retains the Services of Subadvisor to manage the Assets
of the client (“Client”) on a discretionary basis, to commence on the date
of execution of this Agreement, and pursuant to the terms and conditions
B. Subadvisor hereby agrees to invest all securities and money of Client,
which Client deposits into the Account, without the prior consent of
C. Company hereby agrees to provide to Subadvisor a copy of the executed
agreement by Client, within ______ (___) days of such execution and
further agrees to provide to Subadvisor a copy of the Client’s investment
policy, which sets out the Client’s objectives.
D. Company and Subadvisor hereby agree that upon review by the
Subadvisor of the agreement executed by Client and the investment
policy, Subadvisor shall have the discretion to either accept or decline to
provide Services to Client.
E. Company and Subadvisor hereby agree that Subadvisor has no obligation
to Company or Client to investigate and/or obtain any non-public
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information about any issuer of securities in purchasing, selling, or
recommending the purchase and sale of the Account.
F. Company and Subadvisor hereby agree that Subadvisor shall be
responsible for the filing of all documents and reports with the Securities
and Exchange Commission in the applicable jurisdiction.
II. DIALOGUE WITH CLIENT
A. Company and Subadvisor hereby agree that any and all communications
with respect to Client shall be communicated between Company and
B. Subadvisor hereby agrees to provide to Company reports on the Accounts
on a ____________ [monthly/bi-monthly] basis for review or at such
other times as Company may reasonably request.
C. Company and Subadvisor hereby agree that Subadvisor will be available
to Company for any consultations during normal business hours.
III. CLIENT INFORMATION
A. Company and Subadvisory hereby agree that Company shall perform an
initial intake interview with all potential clients, to determine if the
potential client is suitable for Subadvisor’s services.
B. Company hereby agrees to provide all information and documentation on
Client to Subadvisor upon Company determining that Client is suitable for
C. Subadvisor hereby agrees that it shall keep all information, received by it
from Company and in respect of Client, confidential and shall not disclose
any information to any third party.
D. Client shall immediately notify Company and Subadvisor of any financial
change of Client or any wish of Client to change its financial objectives.
E. Company and Subadvisor hereby agree that should Subadvisor receive no
specific instructions in respect to the management of the Accounts,