That is to say that no amount of risk control or performance measurement is guaranteed in the legal agreement a level of performance of the fund! On a practical level, I design these inhibitions in close collaboration with the fund managers` compliance department. It may even be possible to agree on a list of prescribed companies (perhaps by referring to EIRIS) – a regulation that is generally a little more satisfactory from a lawyer`s point of view! One might think that if a limited stock is available, a performance fee will create a temptation (and I say no stronger than that) for the manager to allocate the portfolio to funds subject to performance fees, unlike those that are not. In practice, the compliance officer for UK fund managers would „stamp“ such behaviour. How is the „clean“ tax clean? Does it include, for example, commissions, management fees for the manager`s internal investment funds and deposit fees? These are all questions they need to raise if you don`t have a clear position! Suddenly, after the announcement of disputes by the Unilever Pensionstreuh-nder, underperformance is a „hot topic“. Directors must now carefully assess how they assess the relative and absolute performance of managers on the basis of the performance criteria set out in the agreements. One approach is to ensure that clear, fairly innocuous basic principles are adopted that do not require the fund manager to do something that he or she would not do on the basis of financial criteria If there is a difficult decision, for example, if Nike shares are to be purchased or sold, do you want the manager to make the decision for financial reasons and not affect performance? Directors who are forced by members to engage in a particular policy – make sure that:- Other managers indicate that a performance fee is only superficially attractive to the fund. Yes – the manager will suffer some of the „pain“ for underperformance – but in the long run, the manager will manage the fund in a different way than he was on a standard tax. Child care is offered in a variety of ways. Some managers will enter into agreements with a bank or another part of their own group to provide child care.

For large funds with multiple managers, a separate single director is appointed. The Fund must decide what functions the manager or custodian will perform and who will be responsible if not.