The Investment Fund Mandate is one of the most important documents maintained by the fund management company. It sets out in detail how the investment fund operates. It is approved by the board of the fund management company having received input from appropriate parties. Approving and closely overseeing the Investment Fund Mandate is an important part of performing portfolio management and risk management.
The Investment Fund Mandate is mostly comprised of tasks identified in Part I of the Central Bank of Ireland’s Fund Management Company Guidance. Each section identifies the relevant delegate and Designated Person who will carry out and oversee tasks respectively.
The Investment Fund Mandate also includes those regulatory obligations from the AIFM and UCITS regimes that are described as ‘matters requiring design’ in the Fund Management Companies Guidance. The design features of those regulatory obligations are set out in Investment Fund Mandate, approved by the board and overseen on a day-to-day basis by the relevant Designated Person.
How to use this template
This template is designed to be used each time a new investment fund is being established by the Fund Management Company.
Part I sets out the items which need to be approved by the board for all new investment funds, regardless of whether they are AIFs or UCITS. Part I is divided into 3 sections. Section 1 deals with the investment approach, section 2 deals with the risk management framework and section 3 deals with the distribution strategy.
Part II sets out additional items which need to be approved by the board when a new AIF is being established. These are derived from requirements set out in the AIFM Regulations. Likewise, Part III sets out additional items for UCITS which are derived from the UCITS Regulations.