The fund should clearly choose its management model before launch. Investors need to know whether management will be rewarded through a profit share or through an agency fee.
The prospectus is the practical place to disclose this. By subscribing with knowledge of the prospectus, investors are treated as agreeing to the disclosed management arrangement.
Opening interactive controls...
Equity Funds: Purification and Fund Management
The fund should clearly choose its management model before launch. Investors need to know whether management will be rewarded through a profit share or through an agency fee.
The prospectus is the practical place to disclose this. By subscribing with knowledge of the prospectus, investors are treated as agreeing to the disclosed management arrangement.