This Client Agreement (“Agreement”) establishes the framework under which 5R Partners engages with clients to deliver investment services. It formalizes the mutual understanding between 5R Partners and the Client, providing clarity regarding services, responsibilities, and expectations. By entering into this Agreement, the Client acknowledges the comprehensive nature of the services provided by 5R Partners and consents to the principles that guide the collaboration.
5R Partners operates on the belief that trust, transparency, and partnership are the pillars of successful long-term investments. This Agreement ensures that both parties are aligned in pursuit of shared goals, while allowing flexibility to adapt to changing market conditions, regulatory shifts, and evolving client objectives.
5R Partners offers a wide array of services tailored to the specific financial goals and investment profiles of its clients. These services include, but are not limited to, portfolio management, startup financing, strategic investment planning, risk analysis, and capital allocation for both small enterprises and large-scale infrastructure projects.
5R Partners will regularly review the Client’s portfolio to ensure ongoing alignment with market dynamics and the Client’s evolving priorities. Additional services such as economic forecasting, asset reallocation, and sector-specific advisory can be requested by the Client at any stage during the Agreement. The scope of services is dynamic, allowing for expansion or refinement as the Client’s portfolio grows or diversifies.
The Client agrees to provide complete and accurate disclosures regarding their financial standing, investment objectives, and any external obligations that may influence the management of their portfolio. The Client further acknowledges that the accuracy of these disclosures is fundamental to the success of the investment strategy developed by 5R Partners.
It is the responsibility of the Client to notify 5R Partners of any material changes, including shifts in income, tax obligations, or liquidity requirements. Timely and open communication is essential to ensure that investment strategies remain relevant and effective. Failure to fulfill these responsibilities may result in suboptimal investment outcomes for which 5R Partners cannot be held liable.
5R Partners adopts a diversified and evidence-based approach to investment. While diversification and strategic planning are key elements in mitigating risk, the Client acknowledges that all investments inherently carry an element of uncertainty. Economic downturns, market volatility, geopolitical events, and unforeseen circumstances can impact returns.
By entering into this Agreement, the Client consents to the implementation of risk-mitigating strategies, including but not limited to asset diversification, market hedging, and phased capital deployment. The Client further acknowledges that no investment can be entirely devoid of risk, and that 5R Partners’ role is to minimize risk exposure to the greatest extent possible without sacrificing potential returns.
The Client agrees to compensate 5R Partners based on the established fee structure, which reflects the level and complexity of services provided. This fee structure may include management fees, success fees, and performance-based incentives tied to portfolio growth.
Payments are to be made on a quarterly basis, and 5R Partners retains the right to deduct fees directly from managed assets unless otherwise stipulated. In cases of late payments, accrued interest will be applied, ensuring continued engagement without disruption to the Client’s portfolio. Fee adjustments may occur, subject to prior notice and mutual agreement.
Confidentiality lies at the core of 5R Partners’ operations. The Client’s personal information, financial data, and investment records will be protected under strict confidentiality protocols. 5R Partners will not disclose or share any Client information with third parties, except as required by law or regulatory authorities.
Similarly, the Client agrees not to disclose proprietary methodologies, strategies, or insights shared by 5R Partners during the course of engagement. This mutual confidentiality clause reinforces trust and safeguards sensitive information critical to maintaining competitive advantage.
This Agreement is structured to continue indefinitely, ensuring the longevity and continuity of the partnership between 5R Partners and the Client. However, either party may terminate the Agreement by providing written notice at least 30 days prior to the desired termination date.
Upon termination, 5R Partners will ensure that the Client’s assets are managed in accordance with existing directives until final transfer or liquidation occurs. The Client acknowledges that outstanding fees and associated costs will remain payable even after the conclusion of services.
The Client will receive comprehensive investment reports on a quarterly basis, outlining performance metrics, sector allocations, and forward-looking projections. 5R Partners will maintain open lines of communication, offering the Client access to dedicated investment advisors and analysts.
Regular review meetings will be scheduled to reassess the Client’s portfolio, ensuring continued alignment with evolving financial objectives. The Client may also request ad-hoc reports or updates to address specific inquiries.
In the event of a dispute, both parties agree to engage in good-faith negotiations to reach a resolution. If such negotiations fail, the matter will be referred to arbitration conducted by an impartial third party, whose decision will be binding.
Disputes will be handled professionally, with the aim of preserving the relationship and minimizing disruption to ongoing investment activities.
5R Partners commits to adhering to all financial regulations and ethical standards governing the investment landscape in South Africa. The Client agrees to cooperate in providing any documentation necessary to ensure full compliance with these regulations.
All investment decisions surpassing pre-defined thresholds will require the Client’s explicit approval. 5R Partners reserves discretionary authority to implement smaller-scale investments that align with pre-agreed strategies.
5R Partners shall not be held liable for failure to perform duties resulting from circumstances beyond reasonable control.
The Client agrees to indemnify 5R Partners from liabilities arising due to misrepresentations or actions taken outside the scope of this Agreement.
Reports, analyses, and strategies provided by 5R Partners remain proprietary.
5R Partners will establish clear performance benchmarks to measure the success of the Client’s portfolio. These benchmarks will be derived from industry indices, peer group comparisons, and customized targets based on the Client’s financial objectives. Benchmarks will be reviewed on an annual basis to reflect shifts in market dynamics and evolving investment strategies.
The Client acknowledges that benchmarks serve as guiding indicators rather than fixed guarantees. While 5R Partners strives to exceed performance targets, the Client accepts that market volatility and unforeseen economic factors may result in periods where performance temporarily deviates from expectations.
In addition to standard reporting, 5R Partners will conduct performance reviews bi-annually to provide the Client with an in-depth analysis of returns, portfolio rebalancing recommendations, and projections for future growth.
5R Partners is committed to acting in the best interests of the Client at all times. Any potential or actual conflicts of interest arising during the course of the relationship will be disclosed to the Client immediately. This may include situations where 5R Partners, its affiliates, or employees have a financial interest in the same investments or sectors as the Client.
Where conflicts of interest are identified, 5R Partners will propose mitigation strategies, such as the assignment of independent advisors or the recusal of involved personnel. The Client retains the right to terminate this Agreement if conflicts are deemed to compromise the integrity of the investment process.
5R Partners further ensures that employees adhere to strict ethical guidelines prohibiting personal trading practices that conflict with Client investments.
For the duration of this Agreement and for a period of 12 months following its termination, the Client agrees not to directly or indirectly solicit, hire, or engage any employee or contractor of 5R Partners without prior written consent. This clause is designed to protect the intellectual capital and human resources that contribute to the success of 5R Partners and its services.
In the event of a breach of this clause, the Client agrees to compensate 5R Partners with an amount equivalent to the employee’s annual salary or contracted remuneration. This measure reflects the significant investment made by 5R Partners in developing its personnel.
Neither 5R Partners nor the Client may assign or transfer their rights and obligations under this Agreement to a third party without the express written consent of the other party. Any unauthorized attempt to transfer or delegate responsibilities shall render the Agreement voidable at the discretion of the non-breaching party.
Assignment requests must be submitted in writing and outline the proposed transferee’s credentials, background, and alignment with the objectives of the Agreement. 5R Partners reserves the right to reject assignments if the proposed party does not meet the requisite standards or ethical requirements.
5R Partners’ liability to the Client, whether in contract, tort, or otherwise, shall not exceed the aggregate fees paid by the Client during the preceding 12 months of the Agreement. 5R Partners shall not be liable for indirect, incidental, or consequential losses arising from investment decisions made in good faith.
The Client agrees to indemnify and hold harmless 5R Partners from third-party claims, tax liabilities, penalties, or damages resulting from misrepresentations, incomplete disclosures, or breaches of this Agreement by the Client.
In cases of negligence or gross misconduct by 5R Partners, liability limitations may not apply, and the Client reserves the right to seek full redress through arbitration or legal channels.
This Agreement shall be governed by and construed in accordance with the laws of South Africa. Any legal action or dispute resolution proceedings arising from this Agreement will be conducted within the jurisdiction of South Africa’s courts or arbitration bodies.
5R Partners and the Client agree to submit to the exclusive jurisdiction of these courts and waive any objections related to venue or convenience. Should any provision of this Agreement be deemed unenforceable by a court, the remaining provisions will remain valid and binding.