Key Features / Characteristics
|Investment Strategy||Equities, bonds, currency forwards, futures, options. Approximate lines of stock held at any one time: 50 – 70. Volume of trading: fifteen to twenty trades per week. Prices readily verifiable e.g. Bloomberg.||The investment strategy will have a bearing on Fund Administration costs and set-up fees. For example the more complex the strategy and higher volume of trading, the greater the costs.|
|Number of Investors / Shareholders||Ten to twenty.||The greater number of investors will require more transfer agency work (aka shareholder dealing) which in turn will increase the Fund Administration fee.|
|Net Asset Value Requirements||Monthly NAV calculation to include performance fee calculations.||The frequency of NAV will have an impact on Fund Administration fees, i.e. monthly NAVs will be more expensive than annual.|
|NATURE OF EXPENSE||DETAILS||PRICE|
|Directors Fees||An EIF must appoint two locally Licensed Directors to the Board of Directors. Fiduciary Fund Administration can provide suitably Licensed Directors either from our in-house resources or third party individuals.||The fee for provision of a Licensed EIF Director will be £6,000 per Director, per annum.|
|Depositary||An open-ended EIF must have a depositary. The depositary may be outside of Gibraltar.||This will be in line with the selected custodian/depositary's scale of fees.|
|Fund Administrator||An EIF must appoint a Gibraltar resident Collective Investment Scheme Administrator. It is possible to employ the services of a "foreign" fund administrator however certain conditions must be met. Further details can be provided upon request.||Based on assumptions given above, the annual cost of this service would be £15,000. (Additional costs are incurred due to the regulatory reporting required for an EIF.)|
|Legal / Set-Up Fees||An EIF must produce an Offering Document and registration must be accompanied by legal opinion from a senior Gibraltar counsel.||Legal fees for production of an offering document and various other related tasks are likely to be in the region of £15,000 to £25,000.|
|Reporting||An EIF is required to have an annual audit.||Audit fees will be in the region of £5,000 to £7,000 per annum.|
|Company Secretary||Annual fee for this service will be £1,500.|
|Financial Services Commission (FSC) Costs||The application fee for an EIF is £2,500 and an annual fee of £840 is payable to the FSC.|
*ALL PRICING INDICATIVE AT TIME OF GOING TO PRINT.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.