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, 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.


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.
  • A Gibraltar Limited Company will cost circa £1,600 to set up and incur approximately £600 in annual fees.
  • Fiduciary can appoint a corporate entity to perform this role, cost of which would be around £1,500 per annum.
  • The underlying client may select their own Director(s) and decide how they will be remunerated.
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.


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.