The closed-end fund structure consists of a business company limited by shares. A closed-end fund is different from an open-ended fund (mutual 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 FSC.
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 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.
Major differences with a closed-end fund:
• The investors can redeem their shares only at the investment manager’s discretion.
• There is a fixed number shares/units available for sale.
Our BVI Closed-End Fund package includes:
(price includes BVI BC formation fee, BVI Business Company filing fee, and the registered agent/office fee)
• BVI company licence Fee
• registered agent/office (upon incorporation and annually thereafter)
• communication/courier/company seal costs
• name check
• preparation of the company memorandum of association
• preparation of the company articles of association
• preparation of company registration forms
• filing with the BVI registrar of companies
• certificate of incorporation
• share certificates
• minutes of the first board meetings
• register of directors
• register of members
• company seal
• preparation of full colour offering documents and fund agreements
• payment of first year BVI Registered Agent/Office (annual)
• payment of first year BVI Business Company Licence Fee (annual)
• courier service (1 time)
Annual fees would include:
• Registered agent/office
• BVI business company registration Fee