Mutual & Hedge Funds

Mutual Fund is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing. It is one of the most popular methods of investing throughout the world because it diversifies the risk among the investors.

Seychelles Mutual Fund

Seychelles Mutual Fund & Hedge Fund Act offers an excellent and tax effective structure for fund business through offshore investing. Mutual Fund in Seychelles can be constituted as a company, trust or a partnership. The most common structure for investment in mutual fund is International Business Company, or Protected Cell Company.

Significant features of Seychelles Mutual Funds:

  • Seychelles licensed funds are exempted from taxes on total fund’s income. They are also exempt from withholding tax and stamp duty.
  • Seychelles mutual fund law also allows Umbrella funds to operate (i.e. a fund that invests in a range of different fund or sub-funds).
  • A broad range of fund vehicle options are available to choose from. E.g., IBC (International Business Company, CSL (Special License Company), Trust, and PCC (Protected Cell Company).
  • Mutual fund in Seychelles can be administered in Seychelles by a Seychelles Licensed fund administrator or outside of Seychelles by approved foreign administrator.
  • Accounts for mutual funds can be prepared overseas and audited by approved overseas auditors

Mutual Fund Administration:

As per the Act, Seychelles mutual fund may be administered:

  • From within Seychelles by a Seychelles licensed fund administrator or
  • From outside of Seychelles by an approved foreign administrator

Types of funds

Private Fund

Private Fund is a kind of a Mutual Fund, which is not open for subscription for everybody. The number of investors is restricted and does not require the details to be made public.

Key Features:

  • No more than 50 investors
  • Private business connection
  • Aimed at the professional adviser looking to gather together a consortium of investors
  • Prohibits any invitation to the public to subscribe for shares
  • No minimum or maximum investment required

Public Fund

Public Fund is a mutual fund other than a Private Fund or a Professional Fund. The Fundis designed to be mass marketed and needs to provide the detailed information to public in the offering document.

Key Features:

  • A Mutual Fund that is not a Private Mutual Fund or a Professional Fund
  • Designed to be mass marketed
  • Applicant needs to furnish a detailed offering document
  • The authority will need to be satisfied that all risks and plans of the fund are disclosed upfront to the investors

Professional Fund

Professional Fund is a mutual fund the shares in which are only made available to professional investors or high net worth investors, with the initial minimum investment per investor being USD 100,000. Recognized Banks, Mutual Funds, Insurance Companies, Securities dealers, etc., are considered as professional investors.

Key Features:

  • Aimed for Professionals or high net worth investors with the initial minimum investment per investor being US $ 100,000
  • Recognized Banks, Mutual Funds, Insurance Companies, Securities dealers, etc. are considered professional investors

Exempt Foreign Fund

The Act also permits foreign investment funds from a recognized jurisdiction to conduct business from Seychelles without needing a Seychelles Fund license. This is provided the fund is already licensed as a mutual fund in a recognized jurisdiction; administered by a Seychelles licensed fund administrator and is either listed on a stock exchange or provides for a minimum investment of not less than USD 100,000.

Key Features:

  • Already licensed as a mutual fund in a recognized jurisdiction
  • Need not hold Seychelles fund license
  • Must be administered by a Seychelles licensed fund administrator
  • Is either listed on a stock exchange or provides for a minimum investment of not less than US $ 100,000

THE ABACUS ADVANTAGE

Abacus has been the preferred solution provider in Seychelles due to our experience in customising the products in the portfolio according to the individual needs of our clients worldwide. If you are interested in finding out how Abacus solutions can help you make the most of mutual funds, please call us at +248 461 0780, to talk to us. We would be happy to help!