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what is investment management agreement the mutual fund or any private fund while appointing the fund manager to maintain the funds assets write an agreement called investment management agreement or ima with the fund manager for the period and on the terms set forth in the agreement and the fund manager accepts such appointment the ima contains the below information one authority and duties of the fund manager two fees that the fund will pay to the fund manager as compensation for the services rendered three expenses that the fund manager shall bear its own operating and overhead expenses for reports and other information the fund and the fund manager agree to furnish to each other like prospectuses proxy statements reports to members financial statements 5. scope of liability and indemnification that the fund manager in the absence of willful misfeasance bad faith or gross negligence on the part of the investment manager or reckless disregard of its obligations and duties the invest