Who runs an investment fund?
Three distinct functions exist. The promoter is the person or company who established the fund and markets it; the manager is the person or company who runs it from day to day and the custodian is the person or company who holds the investment assets on behalf of the subscribers. In some jurisdictions, these functions have to be exercised by separate bodies, but in many, two or more can be combined. All three functions are rewarded with fees, usually based on the value of the fund, but sometimes they are success-based.