An investment fund is a collective investment scheme vehicle and is often referred to as a mutual fund, managed fun or simply a fund. A fund can be in the form of a company, partnership, unit trust or other similar bodies, and is made up of a pool of funds collected from multiple investors for the purpose of investing in securities, such as stocks, bonds, money market instruments and similar assets. Investors are effectively shareholders in the funds in proportion to their investment. The combined holdings of stocks, bonds and other assets is known as a portfolio. A fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus.

Choosing the right region to setup the fund is a very important process. Depending on the objective and nature of operations, the pros and cons of various offshore regions needs to well understood before setting up the fund.

A Typical Investment Fund Structure would comprise of:

A Fund Manager (or Investment Manager) who manages the investment decisions and attempts to produce capital gains and income for the fund’s investors.

A Fund Administrator who manages the trading, valuation and unit pricing.

A Board of Directors who safeguard the assets and ensure compliance with laws, statutory rules and regulations Shareholders (or unit holders) who own or have rights to the assets and associated income While terminology varies from country to country, investment funds can further be classified as private funds, professional funds and public funds.

A Private Fund would mean an investment fund which has less than fifty investors and the constitutional documents of which prohibit the offering of its shares to the general public.

A Professional Fund would mean an investment fund which is only offered to professional investors and the initial investment in which, in respect of each investor, is not less than a certain amount prescribed by a regulator (normally, US$100,000 or its equivalent in another currency). A Professional Investor is a person that has a net worth in excess of one million US Dollars (or its equivalent in another currency) or whose ordinary business involves the acquisition or disposal of property of the same kind as the property, or a substantial part of the property of the fund.

A Public Fund would mean an investment fund which is neither a private nor professional fund and which offers any shares it issues for subscription or purchase to the general public.

Investment fund vehicles can be established in various jurisdictions; however the most popular tend to be the British Virgin Islands, Cayman Islands, Belize, Bermuda, Mauritius, and Seychelles. Setting up an investment fund can be a complex process, however, our experienced consultants will do their best to simplify the process and guide you through all aspects of fund establishment and administration in the most effective way.

The Service that are provided by our firm include, but are not limited to:

  • Assistance with the selection of an appropriate entity and jurisdiction for the fund
  • Advice in relation to jurisdictional regulations
  • Advice on the fund structure
  • Assistance with the preparation of constitutional documents
  • Incorporation and licensing of the fund company
  • Incorporation and licensing of the fund management company
  • Drafting the fund prospectus/offering documentation and agreements
  • Maintaining the principal accounting books and liaising with auditors
  • Disbursement of dividends, fees, directors’ salaries, overheads
  • Holding and keeping minutes of shareholders’ and board of directors’ meetings
  • Addressing and providing regulatory compliance
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