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.|
|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.||
|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
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.