Common use of Management of the Funds Clause in Contracts

Management of the Funds. The management of the funds concerns the increase of the profitability of the portfolio of the fund. By providing services of the management of the funds to a particular fund, there exists a possibility that the situations of the conflict of interest may arise:  between the funds, that are under the management of the Company in a case when the Company will exercise inappropriate separation of the assets, and the principle of the separation of the assets will create an unjustified advantage for the one fund over the other;  between the clients of the Company and the funds, that are under the management of the Company, when the Company as the manager of the fund is interested in the selling of the certificates of the investment funds to increase the commission for the management services, that is dependent on the amount of the emitted certificates of the investment fund, that is, from the amount of the assets of the fund.

Management of the Funds. The management of the funds concerns the increase of the profitability of the portfolio of the fund. By providing services of the management of the funds to a particular fund, there exists a possibility that the situations of the conflict of interest may arise:  ▪ between the funds, that are under the management of the Company in a case when the Company will exercise inappropriate separation of the assets, and the principle of the separation of the assets will create an unjustified advantage for the one fund over the other;  ▪ between the clients of the Company and the funds, that are under the management of the Company, when the Company as the manager of the fund is interested in the selling of the certificates of the investment funds to increase the commission for the management services, that is dependent on the amount of the emitted certificates of the investment fund, that is, from the amount of the assets of the fund.