New York Distribution Agreement regarding the continuous offering of the Fund's shares

• Category: Corporations - Public - Distribution
• State: Multi-State
• Control #: US-EG-9373
• Format: Word; Rich Text

Description

Distribution Agreement between Prudential Tax-Managed Growth Fund and Prudential Investment Management Services, LLC regarding the continuous offering of the Fund's shares in order to promote the growth of the Fund and facilitate the distribution of the New York Distribution Agreement: A Comprehensive Overview of Continuous Offering of Fund's Shares In the realm of financial investments, the New York Distribution Agreement holds significant importance in facilitating the continuous offering of a fund's shares. This agreement serves as a legally binding contract between the fund's management (including the investment adviser or sponsor) and the distribution partners, typically broker-dealers, financial institutions, or registered representatives. Keywords: New York Distribution Agreement, continuous offering, Fund's shares, investment adviser, sponsor, distribution partners, broker-dealers, financial institutions, registered representatives. Outlined below are the key components and types of New York Distribution Agreements relevant to the continuous offering of a fund's shares: 1. Pre-Determined Distribution Agreement: This type of New York Distribution Agreement outlines the terms and conditions for offering the fund's shares to specific distribution partners. It includes provisions such as share distribution limitations, commission structure, duration of the agreement, and obligations of each party involved. These agreements are typically negotiated based on the anticipated demand and target market for the fund's shares. 2. Open-Ended Distribution Agreement: Unlike the pre-determined agreement, an open-ended New York Distribution Agreement allows for multiple distribution partners to participate without any predetermined limitations. This agreement is suitable for funds looking to widen their distribution network and reach a larger investor base. The agreement highlights provisions related to commission structure, payment terms, marketing support, and termination conditions. 3. Institutional Distribution Agreement: Institutional investors often require a separate New York Distribution Agreement due to distinct terms and requirements. Such agreements focus on catering to the specific needs of institutional investors, including the terms related to minimum investment amounts, fee structure, reporting requirements, and any customization requests. Additionally, these agreements may discuss confidentiality clauses and the ability to negotiate on pricing and expenses. 4. Non-Exclusive Distribution Agreement: A non-exclusive New York Distribution Agreement allows the fund's management to engage multiple distribution partners simultaneously. This type of agreement is preferred when the fund seeks to attract investors from diverse channels and maximize its reach. The terms of the agreement typically address commission rates, marketing efforts, reporting requirements, and termination conditions if distribution targets and performance metrics are not met. 5. Exclusive Distribution Agreement: In contrast to the non-exclusive agreement, the exclusive New York Distribution Agreement grants the contracted distribution partner the exclusive right to distribute the fund's shares within a specific territory or channel. This agreement contemplates provisions related to exclusivity periods, sales targets, marketing support, and penalties for breach of exclusivity terms. The exclusive distributor enjoys certain advantages, such as being the sole point of contact for investors within the designated region, thereby increasing market penetration. Regardless of the type, a New York Distribution Agreement plays a significant role in facilitating the ongoing offering of a fund's shares. It ensures a systematic approach to distribution, strengthens the relationship between the fund's management and distribution partners, and provides clarity on the rights and obligations of each party involved. The agreement ultimately contributes to the overall growth and success of the fund by expanding its investor base and maintaining regulatory compliance.

New York Distribution Agreement: A Comprehensive Overview of Continuous Offering of Fund's Shares In the realm of financial investments, the New York Distribution Agreement holds significant importance in facilitating the continuous offering of a fund's shares. This agreement serves as a legally binding contract between the fund's management (including the investment adviser or sponsor) and the distribution partners, typically broker-dealers, financial institutions, or registered representatives. Keywords: New York Distribution Agreement, continuous offering, Fund's shares, investment adviser, sponsor, distribution partners, broker-dealers, financial institutions, registered representatives. Outlined below are the key components and types of New York Distribution Agreements relevant to the continuous offering of a fund's shares: 1. Pre-Determined Distribution Agreement: This type of New York Distribution Agreement outlines the terms and conditions for offering the fund's shares to specific distribution partners. It includes provisions such as share distribution limitations, commission structure, duration of the agreement, and obligations of each party involved. These agreements are typically negotiated based on the anticipated demand and target market for the fund's shares. 2. Open-Ended Distribution Agreement: Unlike the pre-determined agreement, an open-ended New York Distribution Agreement allows for multiple distribution partners to participate without any predetermined limitations. This agreement is suitable for funds looking to widen their distribution network and reach a larger investor base. The agreement highlights provisions related to commission structure, payment terms, marketing support, and termination conditions. 3. Institutional Distribution Agreement: Institutional investors often require a separate New York Distribution Agreement due to distinct terms and requirements. Such agreements focus on catering to the specific needs of institutional investors, including the terms related to minimum investment amounts, fee structure, reporting requirements, and any customization requests. Additionally, these agreements may discuss confidentiality clauses and the ability to negotiate on pricing and expenses. 4. Non-Exclusive Distribution Agreement: A non-exclusive New York Distribution Agreement allows the fund's management to engage multiple distribution partners simultaneously. This type of agreement is preferred when the fund seeks to attract investors from diverse channels and maximize its reach. The terms of the agreement typically address commission rates, marketing efforts, reporting requirements, and termination conditions if distribution targets and performance metrics are not met. 5. Exclusive Distribution Agreement: In contrast to the non-exclusive agreement, the exclusive New York Distribution Agreement grants the contracted distribution partner the exclusive right to distribute the fund's shares within a specific territory or channel. This agreement contemplates provisions related to exclusivity periods, sales targets, marketing support, and penalties for breach of exclusivity terms. The exclusive distributor enjoys certain advantages, such as being the sole point of contact for investors within the designated region, thereby increasing market penetration. Regardless of the type, a New York Distribution Agreement plays a significant role in facilitating the ongoing offering of a fund's shares. It ensures a systematic approach to distribution, strengthens the relationship between the fund's management and distribution partners, and provides clarity on the rights and obligations of each party involved. The agreement ultimately contributes to the overall growth and success of the fund by expanding its investor base and maintaining regulatory compliance.