Key Features / Characteristics
Assumptions
CRITERIA | DETAILS | NOTES |
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, set-up fees and dictate whether a custodian will be required. 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. |
Costs
NATURE OF EXPENSE | DETAILS | PRICE |
Directors Fees | A private fund can be managed by a single Director, either an individual or a Gibraltar Limited Company. It should be borne in mind that "management and control" should be seen to emanate from Gibraltar and therefore it would be prudent to appoint a Director to the Board with Gibraltar connections or set up a Gibraltar Limited Company to perform this role. |
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Depositary | The nature of the investment strategy will dictate whether a custodian is required but there is no requirement to appoint one. It will be necessary to have a bank account opened in order to process subscriptions, redemptions and settle operating expenses. | This will be in line with the selected custodian/depositary's scale of fees. |
Fund Administrator | Please note this is not a legal requirement however it is recommended an Administrator is appointed to co-ordinate transfer agency, payments and receipts, preparation of NAV and so on. The appointment of an Administrator removes the burden of administration from the Investment Manager/Operator and ensures shareholders are treated equitably, in turn mitigating risk. | Based on assumptions given above, the annual cost of this service would be £12,000. |
Legal / Set-Up Fees | It is not a requirement to appoint a lawyer to draw up the Offering Document however it is recommended that one is prepared. Additionally it is advantageous to have Directors, Fund Administration and Company Management Agreements in place. | Appointing a lawyer to produce these
documents is likely to cost in the region of £8,000 to
£12,000. Fiduciary Fund Administration are able to prepare standard Offering Documents and Agreements for a fee of £2,500 however these will not be reviewed by a lawyer unless specifically requested by the client. |
Reporting | Accounts are required to be published at Companies House but a Private Fund is exempt from appointing an Auditor. | Preparation of annual accounts is captured under the Fund Administration fee. Should the client wish to have audited accounts an additional fee of between £5,000 to £7,000 will be charged by the auditor. |
Company Secretary | Annual fee for this service will be £1,500. |
*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.