For Financial Advisors
Affiliate Investment Management Option
When funds are referred to MSCF by brokers, banks and other investment managers, it is usually with the stipulation that the manager will not suffer the loss of invested assets due to the referral. This situation can be addressed by allowing the referral agent to serve as an “affiliate manager,” under the following conditions:
- Referred funds must equal, or add up to at least $500,000
- Intent should be for total fund referrals to reach $3 million within three years
- “Equivalent” amounts of funds are provided for management (rather than monies representing the actual fund that was referred)
- MSCF reserves the right to discontinue the affiliate management relationship if investment results do not measure up to other managers’ performance, over a reasonable (usually three year) period of time.
The benefits to affiliate managers include potential consideration, based upon performance, for additional deposits from MSCF, and the visibility resulting from serving in this capacity.
