Mutual Fund / Hedge Fund

Mutual Fund/Hedge Fund is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing. It is one of the most popular methods of investing throughout the world because it diversifies the risk among the investors.

Constitution of an Offshore Mutual Fund

Mutual Funds can be constituted as a;                                        
Limited Partnership.

Significant features of Offshore Mutual Funds                              
Most offshore funds are fully exempted from taxes on total fund’s income.
    They are also exempt from withholding tax and stamp duty.
Most jurisdictions also allow Umbrella funds to operate (i.e. a fund that invests
     in a range of different fund or sub-funds). This is achieved using Protected
     Cell Companies (PCC) /Segregated Portfolio Companies (PCC) as the
      underlying company.
Offshore Mutual funds can be administered by a local licensed fund administrator
     or by an approved foreign fund administrator.
Accounts for mutual funds may be audited by a local licensed auditor or
     an approved foreign auditor. The audited annual accounts ought to be
     submitted to the Authorities.

Typical Classifications of Offshore Funds

Private Funds                                                                               
No more than 50 investors
Prohibits any invitation to the public to subscribe for shares
No minimum or maximum investment required

Public Funds                                                                                 
Designed to be mass marketed
Applicant needs to furnish a detailed offering document
The authority will need to be satisfied that all risks and plans of the fund are
     disclosed upfront to the investors
No minimum and maximum initial investment
No minimum or maximum number of investors

Professional Funds                                                                       
Available to professional investors or high net worth investors,
Initial minimum investment per investor being USD 100,000.
Examples of professional investors: Banks, Mutual Funds, Insurance Companies,
     Securities Dealers and High Net Worth Individuals.
No minimum or maximum number of investors

Time to Establish                                                                          
4-12 weeks depending on the jurisdiction and complexity

Popular jurisdictions for setting up Mutual Funds/Hedge Funds  
We specialise in setting up Hedge Funds/Mutual Funds in the following jurisdictions:
Cayman Islands
Hong Kong