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Investment advisory clause: Copy, customize, and use instantly

Introduction

An investment advisory clause outlines the terms and conditions under which an investment advisor provides advice to a party regarding investments. It defines the scope of the advisor’s services, the advisor’s duties, the compensation structure, and the obligations of both parties. This clause is essential for setting clear expectations and ensuring that the investment advisor adheres to applicable regulations while providing advice on asset management, financial strategies, and investment opportunities.

Below are templates for investment advisory clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.

Standard investment advisory clause

This variation applies when the investment advisor provides general advisory services.

[Party Name] agrees to engage [Advisor Name] as an investment advisor to provide advice on [investment strategy, asset allocation, or specific investment opportunities]. [Advisor Name] will use their expertise to recommend investments in line with [Party Name]’s investment objectives and risk tolerance. The advisor’s compensation will be [fixed fee/percentage of assets under management], payable [monthly/annually].

Investment advisory fee clause

This variation applies when the investment advisor’s fee structure is defined.

[Party Name] agrees to pay [Advisor Name] a fee of [X%] of the assets under management or a fixed fee of [$X] per year for investment advisory services. The fee will be payable [annually/monthly], and any additional fees for special services will be agreed upon separately.

Fiduciary investment advisory clause

This variation applies when the advisor is required to act in a fiduciary capacity.

[Advisor Name] agrees to act as a fiduciary in providing investment advice to [Party Name]. As a fiduciary, [Advisor Name] will always act in the best interests of [Party Name] and will avoid any conflicts of interest in recommending investments. [Advisor Name] will disclose any potential conflicts and ensure full transparency in all advice given.

Investment advisory with limited authority clause

This variation applies when the investment advisor’s authority is limited.

[Party Name] agrees to engage [Advisor Name] to provide investment advice on the following assets: [list assets]. [Advisor Name] will provide recommendations, but all final decisions regarding investments will be made by [Party Name]. [Advisor Name] will not have authority to make investment decisions on behalf of [Party Name] without prior approval.

Investment advisory with performance-based compensation clause

This variation applies when the advisor’s compensation is tied to performance.

[Party Name] agrees to pay [Advisor Name] a base fee of [$X] per year, plus a performance-based fee of [X%] of any returns exceeding [specified benchmark or return rate] on investments. The performance-based fee will be calculated annually and paid [annually/quarterly].

Investment advisory with client-directed transactions clause

This variation applies when the client directs transactions, and the advisor only provides advice.

[Party Name] engages [Advisor Name] to provide investment advice but retains full authority to direct transactions and make final decisions regarding investments. [Advisor Name] will offer recommendations but will not execute trades or investment decisions on behalf of [Party Name] unless explicitly authorized in writing.

Investment advisory with conflict of interest disclosure clause

This variation applies when the advisor must disclose conflicts of interest.

[Advisor Name] agrees to disclose any conflicts of interest that may arise during the provision of investment advisory services to [Party Name]. This includes, but is not limited to, any financial interests in recommended investments or relationships with investment firms. [Advisor Name] will disclose any conflicts in writing before recommending any investment.

Investment advisory with regular reporting clause

This variation applies when the advisor is required to provide regular reports to the client.

[Advisor Name] agrees to provide [Party Name] with regular reports on the performance of the investments, including asset allocation, returns, and any changes in the investment strategy. Reports will be delivered [monthly/quarterly], and a formal review of the portfolio will be conducted at least [annually/quarterly].

Investment advisory with third-party collaboration clause

This variation applies when the advisor works with third-party experts or firms.

[Advisor Name] is authorized to collaborate with third-party experts or firms, including legal and tax advisors, to provide comprehensive investment advice to [Party Name]. Any third-party expenses related to such collaboration will be disclosed and pre-approved by [Party Name].

Investment advisory with risk management clause

This variation applies when the advisor is responsible for managing investment risks.

[Advisor Name] agrees to provide investment advisory services with an emphasis on managing and mitigating risks associated with the portfolio. [Advisor Name] will assess the risk profile of [Party Name] and recommend a diversified portfolio designed to align with [Party Name]’s risk tolerance and investment goals.

Investment advisory with termination clause

This variation applies when the advisory agreement can be terminated.

Either party may terminate this investment advisory agreement with [X] days’ written notice. In the event of termination, [Party Name] will pay [Advisor Name] any fees earned up to the date of termination. Any outstanding fees will be due and payable within [X] days after the termination.

Investment advisory with compliance clause

This variation applies when the advisor must comply with relevant laws and regulations.

[Advisor Name] agrees to comply with all applicable laws, regulations, and industry standards when providing investment advice to [Party Name]. This includes adherence to the Securities and Exchange Commission (SEC) guidelines, FINRA rules, and any other applicable federal, state, or local regulations regarding investment advisory services.

Investment advisory with non-solicitation clause

This variation applies when the advisor agrees not to solicit investments from other clients.

[Advisor Name] agrees not to solicit investments or clients that are in direct competition with [Party Name] during the term of this agreement and for [X] months following its termination. This includes recommendations or referrals to any other individuals or entities engaged in similar investment activities.

Investment advisory with review clause

This variation applies when the investment strategy and advisory services are reviewed periodically.

[Party Name] agrees to review the investment strategy and advisory services with [Advisor Name] on an annual basis. During the review, both parties will assess the portfolio’s performance, the advisor’s services, and whether any changes to the investment strategy are required.

Investment advisory with legal compliance clause

This variation applies when the advisor must comply with specific legal obligations.

[Advisor Name] agrees to ensure that all investment advice and recommendations comply with all applicable securities laws, including the Investment Advisers Act of 1940 and relevant state regulations. [Advisor Name] will maintain all required licenses and certifications to provide legal investment advice.

Investment advisory with confidentiality clause

This variation applies when the advisor must maintain confidentiality.

[Advisor Name] agrees to maintain the confidentiality of all information provided by [Party Name] and any sensitive information obtained during the course of providing investment advisory services. [Advisor Name] will not disclose any confidential information to third parties without prior written consent from [Party Name], except as required by law.

Investment advisory with disputes resolution clause

This variation applies when disputes related to the advisory services must be resolved in a specific way.

In the event of any disputes arising from the investment advisory services provided, both parties agree to resolve the dispute through mediation or arbitration under the rules of the American Arbitration Association. The location of arbitration will be [specified location], and the decision of the arbitrator will be binding.

Investment advisory with delegation clause

This variation applies when the advisor is allowed to delegate certain responsibilities.

[Advisor Name] may delegate certain aspects of the investment advisory services to other qualified professionals or firms, such as asset managers or research analysts, provided that [Party Name] has been notified and consents in writing to such delegation. [Advisor Name] remains fully responsible for all recommendations and services provided.

Investment advisory with referral fee clause

This variation applies when the advisor is paid a referral fee for recommending other services.

[Advisor Name] agrees to disclose any referral fees or commissions received from recommending third-party services, such as financial planning or insurance products, to [Party Name]. Any such referral fees will be credited against the fees due to [Advisor Name] for investment advisory services, unless otherwise agreed upon.

Investment advisory with portfolio review clause

This variation applies when the advisor must conduct periodic reviews of the investment portfolio.

[Advisor Name] agrees to conduct periodic reviews of the investment portfolio at least once every [quarter/year]. The review will assess the performance of investments, ensure that the portfolio is aligned with [Party Name]’s investment objectives, and recommend any necessary adjustments based on market conditions.

Investment advisory with non-compete clause

This variation applies when the advisor agrees not to work with competing clients.

[Advisor Name] agrees not to provide investment advisory services to any clients that directly compete with [Party Name] during the term of this agreement and for a period of [X] months after the termination of the agreement. This restriction applies to clients in the same industry or sector as [Party Name].

Investment advisory with sole discretion clause

This variation applies when the advisor has sole discretion over investment decisions.

[Party Name] grants [Advisor Name] full discretion to make investment decisions on behalf of [Party Name] without prior approval, as long as those decisions align with the established investment objectives and risk profile of [Party Name]. [Advisor Name] will periodically report on the decisions made and the portfolio's performance.

Investment advisory with monthly reporting clause

This variation applies when the advisor is required to provide monthly reports.

[Advisor Name] agrees to provide [Party Name] with monthly reports detailing the portfolio’s performance, any changes in investments, and any recommendations for adjustments. These reports will be sent to [Party Name] on or before the [X] of each month.

Investment advisory with periodic review and adjustment clause

This variation applies when the investment strategy is reviewed and adjusted periodically.

[Party Name] agrees to periodically review and adjust the investment strategy with [Advisor Name]. The review will take place at least annually, and adjustments will be made to ensure that the strategy remains in line with [Party Name]’s evolving financial goals and market conditions.

Investment advisory with performance review clause

This variation applies when the advisor's performance is reviewed periodically.

[Party Name] agrees to conduct a performance review with [Advisor Name] annually to assess the effectiveness of the investment strategy, including portfolio returns and adherence to [Party Name]’s risk tolerance. Adjustments to the strategy may be made following the review if deemed necessary.

Investment advisory with periodic strategy updates clause

This variation applies when the advisor is required to provide updates on the investment strategy.

[Advisor Name] agrees to provide [Party Name] with periodic updates on the investment strategy, including any changes to asset allocation or investment recommendations. These updates will be provided quarterly or as significant market events occur.

Investment advisory with transaction cost disclosure clause

This variation applies when the advisor must disclose transaction costs associated with investments.

[Advisor Name] agrees to disclose any transaction costs or fees incurred as part of executing investment decisions. This includes brokerage fees, commissions, and other costs related to the purchase or sale of assets within the portfolio.

This variation applies when the advisor must consider socially responsible investing (SRI) criteria.

[Advisor Name] agrees to consider socially responsible investing (SRI) criteria when recommending investments, including environmental, social, and governance (ESG) factors. Any investment recommendation will align with [Party Name]’s values as communicated by [Party Name].

Investment advisory with withdrawal rights clause

This variation applies when the client has the right to withdraw from the advisory arrangement.

[Party Name] retains the right to withdraw from this investment advisory agreement at any time, with written notice to [Advisor Name]. In the event of withdrawal, [Party Name] will pay [Advisor Name] for services rendered up until the date of withdrawal, including any fees based on performance.

Investment advisory with tailored investment objectives clause

This variation applies when the advisory services are customized to the client’s objectives.

[Party Name] agrees to provide [Advisor Name] with specific investment objectives, including risk tolerance, income requirements, and growth targets. [Advisor Name] will customize the investment strategy to meet these objectives, with periodic adjustments as needed.

Investment advisory with tax planning clause

This variation applies when the advisor provides tax planning advice along with investment advice.

[Advisor Name] agrees to provide [Party Name] with tax-efficient investment strategies, including recommendations on tax-advantaged accounts and investments that minimize capital gains tax. Tax considerations will be integrated into all investment decisions where possible.

Investment advisory with advisory report clause

This variation applies when the advisor must provide formal advisory reports.

[Advisor Name] agrees to provide [Party Name] with formal investment advisory reports on a quarterly basis. These reports will include portfolio performance, asset allocation, market analysis, and recommendations for future investment adjustments.

Investment advisory with investment horizon clause

This variation applies when the advisor's recommendations are based on a defined investment horizon.

[Party Name] agrees to set a defined investment horizon for [Advisor Name]’s recommendations, whether short-term, medium-term, or long-term. [Advisor Name] will tailor the investment strategy to fit the agreed-upon time frame and objectives.

Investment advisory with diversification strategy clause

This variation applies when the advisor must recommend a diversified portfolio.

[Advisor Name] agrees to recommend a diversified investment strategy, allocating assets across various sectors, geographic regions, and asset classes to minimize risk and maximize potential returns. The diversification strategy will be reviewed annually to ensure it remains in line with [Party Name]’s goals.

Investment advisory with client notification clause

This variation applies when the advisor must notify the client about significant changes.

[Advisor Name] agrees to notify [Party Name] of any significant changes in the market or portfolio that may affect investment decisions. These notifications will include recommended actions to mitigate any risks or take advantage of opportunities.

Investment advisory with performance benchmarking clause

This variation applies when performance is measured against a benchmark.

[Advisor Name] agrees to benchmark portfolio performance against relevant indices or market benchmarks. The performance will be reviewed quarterly, and adjustments to the investment strategy will be made to align with the target benchmark.

Investment advisory with dispute resolution clause

This variation applies when a method for resolving disputes is outlined.

Any disputes arising out of or in connection with this investment advisory agreement shall be resolved through mediation or binding arbitration. Both parties agree to submit to the jurisdiction of [specified arbitration body] in the event of any disagreements.

Investment advisory with investor protection clause

This variation applies when the advisor is required to follow investor protection regulations.

[Advisor Name] agrees to comply with all relevant investor protection laws and regulations, including those set forth by the SEC and FINRA. The advisor will ensure that all advice and transactions adhere to the highest standards of fiduciary duty and investor protection.

Investment advisory with asset class-specific advisory clause

This variation applies when the advisor focuses on specific asset classes.

[Party Name] engages [Advisor Name] to provide advice primarily focused on [specific asset class], such as equities, fixed income, or alternative investments. [Advisor Name] will provide recommendations based on market conditions and the performance of the chosen asset class.

Investment advisory with conflicts of interest management clause

This variation applies when the advisor must manage conflicts of interest.

[Advisor Name] agrees to manage any potential conflicts of interest that may arise during the provision of investment advisory services. If a conflict arises, [Advisor Name] will disclose it immediately to [Party Name] and take appropriate measures to avoid compromising the advisor’s fiduciary duties.

Investment advisory with periodic portfolio rebalancing clause

This variation applies when the advisor is required to rebalance the portfolio periodically.

[Advisor Name] agrees to periodically rebalance the investment portfolio, at least once every [quarter/year], to ensure that it remains aligned with [Party Name]’s investment goals and risk tolerance. The rebalancing process will include buying and selling securities as necessary to maintain the target asset allocation.

Investment advisory with transaction execution authority clause

This variation applies when the advisor has authority to execute transactions on behalf of the client.

[Party Name] grants [Advisor Name] authority to execute investment transactions on its behalf, including the purchase and sale of securities. [Advisor Name] will execute transactions in the best interests of [Party Name], considering factors such as cost, timing, and market conditions.

Investment advisory with asset protection clause

This variation applies when the advisor focuses on protecting the client’s assets.

[Advisor Name] agrees to prioritize asset protection when providing investment advice to [Party Name]. This includes recommending low-risk strategies and safeguarding investments against market downturns and economic volatility.

Investment advisory with client-specific guidelines clause

This variation applies when the advisor must follow specific client guidelines.

[Party Name] provides [Advisor Name] with a set of specific guidelines, including ethical considerations, industry preferences, and financial restrictions. [Advisor Name] will tailor investment recommendations to align with these guidelines, ensuring compliance with [Party Name]’s values and requirements.

Investment advisory with monitoring of external factors clause

This variation applies when the advisor must consider external factors in the investment strategy.

[Advisor Name] agrees to monitor external factors, such as interest rates, inflation, and global economic conditions, when providing investment advice. The advisor will incorporate these factors into the investment strategy and recommend adjustments as needed to mitigate risks.

Investment advisory with client approval clause

This variation applies when the advisor requires client approval before acting.

[Advisor Name] agrees to obtain written approval from [Party Name] before executing any investment transactions or making significant changes to the investment strategy. This ensures that all actions are consistent with [Party Name]’s goals and preferences.

Investment advisory with performance-based bonuses clause

This variation applies when the advisor can earn a bonus based on performance.

[Party Name] agrees to provide [Advisor Name] with a performance-based bonus of [X%] of any returns exceeding a defined benchmark. The bonus will be paid annually and will be calculated based on the portfolio’s performance relative to the agreed-upon benchmark.

Investment advisory with termination of services clause

This variation applies when the advisory services can be terminated.

Either party may terminate this investment advisory agreement at any time with [X] days’ written notice. Upon termination, [Party Name] will pay any outstanding fees for services rendered up to the termination date.

Investment advisory with privacy and confidentiality clause

This variation applies when confidentiality is required.

[Advisor Name] agrees to maintain the confidentiality of all information shared by [Party Name] and any sensitive information regarding the investments. No personal or financial details will be shared with third parties without written consent from [Party Name], except as required by law.

Investment advisory with audit clause

This variation applies when the advisor is subject to audits.

[Party Name] agrees to have [Advisor Name]’s investment activities and portfolio management practices audited annually by an independent third-party auditor. The results of the audit will be shared with [Party Name] for transparency and compliance verification.

Investment advisory with tax implications consideration clause

This variation applies when the advisor must consider tax implications.

[Advisor Name] agrees to take tax implications into account when providing investment advice, ensuring that recommended investments are tax-efficient for [Party Name]. The advisor will provide recommendations for maximizing after-tax returns in light of applicable tax laws.

This variation applies when the advisor needs client consent before making certain decisions.

[Advisor Name] agrees to obtain [Party Name]’s written consent before making any significant changes to the investment strategy or executing any transactions that involve substantial risk. The advisor will provide detailed explanations for the proposed changes.

Investment advisory with strategic asset allocation clause

This variation applies when the advisor recommends specific asset allocations.

[Advisor Name] agrees to recommend an asset allocation strategy that aligns with [Party Name]’s financial objectives, risk tolerance, and investment time horizon. The strategy will be reviewed periodically and adjusted to account for changes in market conditions and [Party Name]’s goals.

Investment advisory with cash management clause

This variation applies when the advisor is responsible for managing cash balances.

[Advisor Name] agrees to manage [Party Name]’s cash holdings in a manner that optimizes returns while maintaining adequate liquidity. This includes recommending short-term investments or cash-equivalent instruments that align with the investment strategy.

Investment advisory with monitoring of economic indicators clause

This variation applies when the advisor monitors economic indicators to inform recommendations.

[Advisor Name] agrees to monitor relevant economic indicators, such as inflation rates, interest rates, and employment data, and adjust the investment strategy accordingly. These indicators will be considered in the decision-making process to manage risks and capitalize on opportunities.

Investment advisory with client reporting and review clause

This variation applies when the advisor must provide detailed client reports and reviews.

[Advisor Name] agrees to provide [Party Name] with monthly reports detailing portfolio performance, including changes in asset values, dividends, and interest income. The advisor will also schedule a quarterly review to discuss any necessary adjustments to the strategy.

Investment advisory with multi-asset class diversification clause

This variation applies when the advisor focuses on diversifying investments across multiple asset classes.

[Advisor Name] agrees to recommend a diversified investment portfolio that includes a mix of asset classes, such as equities, bonds, real estate, and alternative investments. The goal is to spread risk and improve the potential for returns.

Investment advisory with regulatory compliance clause

This variation applies when the advisor must comply with regulatory requirements.

[Advisor Name] agrees to comply with all applicable regulations set forth by the Securities and Exchange Commission (SEC) and other relevant authorities, ensuring that all investment strategies, recommendations, and transactions are fully compliant with securities laws.

Investment advisory with advisor liability limitation clause

This variation applies when the advisor’s liability is limited in certain cases.

[Party Name] agrees that [Advisor Name] will not be liable for any losses incurred due to market fluctuations or circumstances beyond the advisor's control. [Advisor Name] will only be held responsible for losses resulting from gross negligence or breach of fiduciary duty.

Investment advisory with periodic strategy reevaluation clause

This variation applies when the advisor is required to periodically reassess the investment strategy.

[Advisor Name] agrees to reevaluate the investment strategy at least annually, considering any changes in [Party Name]’s financial goals, market conditions, and risk appetite. The advisor will provide recommendations for adjustments based on the results of the reevaluation.

Investment advisory with portfolio risk management clause

This variation applies when the advisor must manage portfolio risk.

[Advisor Name] agrees to implement risk management strategies designed to mitigate potential losses in [Party Name]’s portfolio. This includes setting risk limits, diversifying investments, and utilizing hedging strategies where appropriate.

Investment advisory with tax optimization clause

This variation applies when the advisor is responsible for tax optimization of investments.

[Advisor Name] agrees to structure [Party Name]’s investment portfolio in a manner that minimizes tax liabilities. This may include investing in tax-advantaged accounts, tax-efficient funds, and taking advantage of tax-loss harvesting opportunities.

Investment advisory with conflict resolution clause

This variation applies when a mechanism for resolving conflicts is included.

In the event of a conflict between [Advisor Name] and [Party Name] regarding investment recommendations or strategy, both parties agree to engage in mediation to resolve the dispute amicably. If mediation fails, the dispute will be resolved through binding arbitration.

Investment advisory with ethical investing clause

This variation applies when the advisor recommends ethical or socially responsible investments.

[Advisor Name] agrees to recommend investments that align with [Party Name]’s ethical and social values, including investments in companies that meet environmental, social, and governance (ESG) criteria. The advisor will provide periodic updates on the ESG performance of the portfolio.

Investment advisory with asset liquidation clause

This variation applies when the advisor can liquidate assets within the portfolio.

[Party Name] authorizes [Advisor Name] to liquidate assets within the investment portfolio as necessary to meet the investment objectives or raise funds for specific needs. Liquidation will be done in the best interests of the portfolio and in accordance with [Party Name]’s goals.

Investment advisory with client-restricted investments clause

This variation applies when certain investments are restricted for the client.

[Party Name] provides [Advisor Name] with a list of restricted investments, including any sectors, companies, or asset classes that are not acceptable for investment due to ethical or legal reasons. The advisor agrees to adhere to these restrictions when making recommendations.

Investment advisory with portfolio liquidity requirements clause

This variation applies when the advisor must maintain a specific level of liquidity in the portfolio.

[Advisor Name] agrees to maintain a certain level of liquidity within the portfolio, as determined by [Party Name], to ensure that funds are available for any potential short-term needs or opportunities. The liquidity level will be reviewed annually and adjusted as needed.

Investment advisory with international market exposure clause

This variation applies when the advisor is responsible for recommending investments with international market exposure.

[Advisor Name] agrees to recommend investments that provide exposure to international markets, including both developed and emerging markets. The advisor will assess geopolitical risks, currency fluctuations, and other international factors when making these recommendations.

Investment advisory with income-generating investments clause

This variation applies when the advisor focuses on generating income for the client.

[Advisor Name] agrees to recommend income-generating investments, such as dividend-paying stocks, bonds, or real estate investment trusts (REITs), to meet [Party Name]’s income requirements. The advisor will adjust the strategy as needed to optimize income while maintaining risk management.

Investment advisory with liquidity event planning clause

This variation applies when the advisor assists in planning for liquidity events.

[Advisor Name] agrees to provide guidance on planning for liquidity events, such as the sale of assets or a business, to ensure that [Party Name]’s financial goals are met. The advisor will recommend strategies to maximize the proceeds from such events and minimize any potential tax impact.

Investment advisory with diversification across sectors clause

This variation applies when the advisor focuses on sector diversification.

[Advisor Name] agrees to recommend investments that diversify across various sectors, including technology, healthcare, finance, and consumer goods. The advisor will adjust the portfolio to reflect sector performance and market trends.

Investment advisory with customized reporting clause

This variation applies when the advisor provides customized reports based on client needs.

[Advisor Name] agrees to provide customized reports to [Party Name] on a quarterly or monthly basis, tailored to [Party Name]’s specific preferences and financial goals. These reports will include detailed information on portfolio performance, asset allocation, and market conditions.

Investment advisory with regular portfolio rebalancing clause

This variation applies when the advisor is required to rebalance the portfolio regularly.

[Advisor Name] agrees to rebalance [Party Name]’s investment portfolio on a quarterly basis or more frequently, if necessary, to maintain the target asset allocation. Rebalancing will take into account changes in market conditions and the performance of individual investments.

Investment advisory with continuous communication clause

This variation applies when the advisor must maintain continuous communication with the client.

[Advisor Name] agrees to maintain continuous communication with [Party Name], providing updates on portfolio performance and recommending adjustments as needed. The advisor will be available for regular calls or meetings to discuss the portfolio and any changes in investment objectives.

Investment advisory with comprehensive risk assessment clause

This variation applies when the advisor must conduct a comprehensive risk assessment.

[Advisor Name] agrees to perform a comprehensive risk assessment of [Party Name]’s portfolio, taking into account factors such as market risk, credit risk, and liquidity risk. The advisor will adjust the portfolio to ensure that the risk level aligns with [Party Name]’s tolerance and goals.

Investment advisory with strategic investment review clause

This variation applies when the advisor is required to conduct a strategic review.

[Advisor Name] agrees to conduct a strategic review of [Party Name]’s investment portfolio at least once a year. The review will evaluate the overall strategy, performance, and alignment with [Party Name]’s long-term financial goals. Adjustments will be recommended if needed.

Investment advisory with withdrawal fee clause

This variation applies when a withdrawal fee is imposed.

[Party Name] agrees that if funds are withdrawn from the investment portfolio within [X] months of the initial investment, a withdrawal fee of [Y%] of the total amount withdrawn will be charged to cover transaction and advisory costs.

Investment advisory with capital gains strategy clause

This variation applies when the advisor helps plan for capital gains taxes.

[Advisor Name] agrees to develop and implement a strategy to minimize capital gains taxes on [Party Name]’s investments. This includes recommending tax-loss harvesting and other strategies to offset gains with losses, ensuring the most tax-efficient portfolio possible.

Investment advisory with quarterly market review clause

This variation applies when the advisor conducts a quarterly market review for the client.

[Advisor Name] agrees to provide [Party Name] with a quarterly review of market conditions, discussing the performance of relevant sectors, asset classes, and investment strategies. The advisor will provide insights on market trends and recommend adjustments to the investment strategy if necessary.

Investment advisory with performance reporting clause

This variation applies when the advisor provides detailed performance reports.

[Advisor Name] agrees to deliver detailed performance reports to [Party Name] on a quarterly basis, outlining portfolio returns, any deviations from expected performance, and the impact of market changes. The report will also include an analysis of the portfolio's alignment with investment goals.

Investment advisory with sustainability-focused strategy clause

This variation applies when the advisor provides sustainable investment strategies.

[Advisor Name] agrees to recommend investments that align with [Party Name]’s sustainability goals, including investments in environmentally and socially responsible companies. This strategy will prioritize companies with strong environmental, social, and governance (ESG) practices.

Investment advisory with customized investment goals clause

This variation applies when the advisor customizes the strategy to meet specific investment goals.

[Party Name] agrees to provide [Advisor Name] with specific investment goals, including return targets, time horizon, and risk tolerance. [Advisor Name] will tailor the investment strategy to meet these customized goals and will update the strategy as needed to align with [Party Name]’s evolving objectives.

Investment advisory with real-time portfolio tracking clause

This variation applies when real-time portfolio tracking is provided.

[Advisor Name] agrees to provide real-time tracking of [Party Name]’s portfolio performance, allowing access to live updates on asset allocation, performance metrics, and any changes in the portfolio. This feature will be available via [platform or software] that allows [Party Name] to monitor the portfolio at any time.

Investment advisory with diversification review clause

This variation applies when the advisor reviews the diversification of the portfolio.

[Advisor Name] agrees to review the portfolio's diversification annually, ensuring that the assets are spread across a range of sectors, geographic regions, and asset classes. The advisor will recommend adjustments to improve diversification and reduce concentration risks.

Investment advisory with strategy realignment clause

This variation applies when the advisor realigns the investment strategy periodically.

[Advisor Name] agrees to reassess and realign [Party Name]’s investment strategy at least once per year, considering any changes in [Party Name]’s financial circumstances, investment goals, or market conditions. The realignment will ensure the strategy remains effective and aligned with long-term objectives.

Investment advisory with direct involvement clause

This variation applies when the client has direct involvement in decision-making.

[Party Name] agrees to work closely with [Advisor Name] in the decision-making process for major investment decisions, including reviewing the advisor's recommendations and making final choices regarding the portfolio’s composition. [Advisor Name] will guide the process with their expertise.

Investment advisory with alternative asset class inclusion clause

This variation applies when the advisor includes alternative investments.

[Advisor Name] agrees to recommend alternative investment options, such as private equity, real estate, hedge funds, or commodities, as part of the investment strategy. The inclusion of alternative assets will be discussed with [Party Name] and tailored to their risk profile.

Investment advisory with ongoing monitoring clause

This variation applies when the advisor is responsible for monitoring investments on an ongoing basis.

[Advisor Name] agrees to continuously monitor the performance of investments within the portfolio, assessing both short-term and long-term changes in market conditions. The advisor will make necessary adjustments based on ongoing analysis to optimize performance.

Investment advisory with capital preservation focus clause

This variation applies when the advisor focuses on preserving capital.

[Advisor Name] agrees to prioritize capital preservation in managing [Party Name]’s investments, focusing on low-risk strategies that aim to minimize losses while providing reasonable returns. The advisor will recommend investments with a low risk of principal loss.

Investment advisory with high-growth strategy clause

This variation applies when the advisor recommends high-growth investments.

[Advisor Name] agrees to focus on high-growth investment strategies, including investments in emerging markets, technology stocks, and other high-potential sectors. The strategy will aim for maximum capital appreciation, with higher risk and return expectations.

Investment advisory with liquidity management clause

This variation applies when the advisor is responsible for managing liquidity in the portfolio.

[Advisor Name] agrees to maintain an adequate level of liquidity in the portfolio to meet any short-term cash needs. This includes maintaining investments in cash equivalents, short-term bonds, or other easily liquidated assets to ensure that funds are readily available when required.

Investment advisory with cross-border investment clause

This variation applies when the advisor makes cross-border investment recommendations.

[Advisor Name] agrees to include cross-border investments in the strategy, recommending opportunities in foreign markets and considering the associated risks such as currency fluctuations, geopolitical factors, and international regulations. [Party Name] will review and approve such investments prior to execution.

Investment advisory with risk-adjusted return strategy clause

This variation applies when the advisor recommends a strategy focused on risk-adjusted returns.

[Advisor Name] agrees to recommend an investment strategy that focuses on achieving the best possible returns for the level of risk that [Party Name] is willing to accept. This strategy will aim to maximize returns while minimizing volatility and ensuring that investments are in line with risk tolerance.

Investment advisory with tax-advantaged investment recommendations clause

This variation applies when the advisor recommends tax-efficient investments.

[Advisor Name] agrees to recommend tax-efficient investments to minimize [Party Name]’s tax liability. This includes investing in tax-advantaged accounts like IRAs, Roth IRAs, and 401(k)s, as well as utilizing strategies such as tax-loss harvesting to reduce taxable gains.

Investment advisory with holistic financial planning clause

This variation applies when the advisor provides holistic financial planning along with investment advice.

[Advisor Name] agrees to offer holistic financial planning services, including retirement planning, estate planning, tax strategy, and investment management. This comprehensive approach will ensure that all aspects of [Party Name]’s financial situation are considered when making investment decisions.

Investment advisory with quarterly review of investment strategy clause

This variation applies when the advisor conducts a quarterly review of the investment strategy.

[Advisor Name] agrees to review the investment strategy on a quarterly basis to assess the performance of the portfolio and ensure that the strategy is still aligned with [Party Name]’s financial goals. Any necessary changes will be recommended to ensure continued success.

This variation applies when the advisor recommends investments with social impact goals.

[Advisor Name] agrees to prioritize social impact investing, recommending opportunities that generate positive social or environmental outcomes alongside financial returns. Investments will be selected based on their ability to drive positive change in areas such as renewable energy, healthcare, or education.

Investment advisory with forward-looking market analysis clause

This variation applies when the advisor conducts forward-looking market analysis.

[Advisor Name] agrees to conduct forward-looking market analysis and make investment recommendations based on predicted trends, emerging technologies, and future economic shifts. This analysis will guide strategic decisions in line with anticipated market conditions.

Investment advisory with fund-of-funds structure clause

This variation applies when the advisor recommends a fund-of-funds structure.

[Advisor Name] agrees to recommend a fund-of-funds structure as part of the investment strategy, allowing [Party Name] to invest in multiple funds managed by various investment professionals. This strategy offers diversification and access to different asset classes and investment strategies.

Investment advisory with ESG-focused portfolio clause

This variation applies when the advisor focuses on environmental, social, and governance (ESG) criteria.

[Advisor Name] agrees to build an ESG-focused portfolio for [Party Name], recommending investments in companies that meet environmental, social, and governance standards. This strategy aligns with [Party Name]’s values while seeking strong financial returns.

Investment advisory with real estate investments clause

This variation applies when the advisor recommends real estate investments.

[Advisor Name] agrees to recommend real estate investment opportunities, including direct property investments, real estate investment trusts (REITs), or property funds. These investments will be evaluated based on expected returns, risk, and market conditions.

Investment advisory with pension fund management clause

This variation applies when the advisor is responsible for managing a pension fund.

[Advisor Name] agrees to manage [Party Name]’s pension fund in accordance with [Party Name]’s objectives, ensuring the fund is invested in a diversified portfolio that meets both short-term income needs and long-term growth targets. The advisor will provide periodic reports on fund performance.

Investment advisory with private equity investment clause

This variation applies when the advisor recommends private equity investments.

[Advisor Name] agrees to recommend private equity investments as part of the investment strategy, focusing on high-growth, high-risk opportunities in privately held companies. These investments will be made with the understanding that liquidity may be limited and capital will be tied up for an extended period.

Investment advisory with inflation protection clause

This variation applies when the advisor focuses on protecting against inflation.

[Advisor Name] agrees to recommend investments designed to protect [Party Name] from inflation, including inflation-protected securities, commodities, and real estate. The advisor will monitor inflation trends and adjust the portfolio to hedge against rising prices.

Investment advisory with flexible withdrawal options clause

This variation applies when the advisor offers flexible withdrawal options for the client.

[Advisor Name] agrees to provide [Party Name] with flexible withdrawal options from the investment portfolio, allowing [Party Name] to access funds as needed without significant penalties. Withdrawals will be managed to minimize tax implications and preserve the integrity of the portfolio.

Investment advisory with annual strategic review clause

This variation applies when the advisor conducts an annual strategic review.

[Advisor Name] agrees to conduct an annual strategic review of [Party Name]’s investment portfolio to assess progress toward financial goals. The review will include an analysis of market conditions, asset performance, and recommended adjustments to the strategy.

This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.

Last updated 18 Apr 2025