The Fund

The closed-end fund structure described on this site consists of a Company limited by shares incorporated in the British Virgin Islands (BVI). A closed-end fund is different from an open-ended fund in that investment units are redeemable at the discretion of the fund manager or in accordance with the terms agreed upon with the investors of the fund rather than redeemable on demand as in the case of a Mutual Fund. Closed end funds are not subject to the license and supervisory requirements of the Mutual Funds Act.

An unregulated fund of this type is often referred to as a Hedge Fund, a term originating from the investment strategy of spreading risk through hedging. The term Hedge Fund has however become synonymous with investment vehicles for sophisticated investors and exempt from regulation rather than with vehicles applying any specific investment strategy. A Hedge Fund can be used for any type of investing and the exemption from the license and supervisory regime gives the fund manager complete freedom and flexibility when tailoring the investment strategy of the fund.

The top offshore hedge fund jurisdictions in the world are Cayman Islands and British Virgin Islands. An estimated USD 2.6 Trillion is held under management in some 9000 funds worldwide. You do not have to manage hundreds of millions in order to benefit from operating your own fund however. The fund can generate management fees and performance fees without any restrictions and the ongoing operational costs can be very moderate. The total setup costs including legal and government registration fees and Prospectus can be as low as USD 15,000.00.

Click here for information on how to proceed with the formation of your own Fund.

Click here to visit Banking4Bankers.com where you can access information about other fund management options and how to start your own international bank.