Hedge funds

Hedge funds

hedge fundsKnown also as alternative investments, hedge funds and private equity have received rapid growth recently and are drawing mounting interest from all sectors. Many new investment opportunities are beginning to surface as emerging markets become stronger, especially those in little known areas such as Eastern Europe and South Asia. Healy Consultants help to capitalize on these opportunities by providing specialized knowledge in an extensive range of financial services, other alternative vehicle structures and strategies, and the regulatory issues involved.

Hedge funds services include:

  • Fund setup;
  • Calculation of net asset value;
  • Financial administration;
  • Tax record keeping;
  • Hedge funds servicing.
  • Tax haven hedge fundsJerseyBritish Virgin IslandsCayman Islands
    Total hedge funds incorporation costs (excl. Government fees)US$21,900US$21,900US$21,900
    Subsequent renewal costsUS$10,700US$11,010US$13,150
    Types of fund• Unclassified Fund
    • Expert Fund
    • Unregulated Eligible Investor Fund
    • Professional Fund
    • Private Fund
    • Public Fund
    • Licensed Fund
    • Administered Fund
    • Registered Fund
    • Exempt Fund
    How long to incorporate a hedge fund?24 hours24 hours24 hours
    How long to launch the hedge fund?• 12 weeks for Unclassified
    and Expert Funds
    • 4 weeks for Unregulated Funds
    • 8 weeks for Public Funds
    • 4 weeks for others
    • 12 weeks for Licensed Funds
    • 4 weeks for others
    Do you visit the country for hedge fund incorporation?NoNoNo
    Minimum investment• Unclassified Funds: none
    • Expert Fund: US$100,000 or “Expert Investors”
    • Unregulated Eligible Investor Fund:
    US$1,000,000 or “Eligible Investors”
    • Professional Fund: US$100,000
    • Private Fund: none
    • Public Fund: none
    • Licensed Fund: none
    • Administered Fund: none
    • Registered Fund: US$100,000
    • Exempt Fund: none
    Regulatory AuthorityJersey Financial Services Commission (JFSC)BVI Financial Services Commission ("FSC")Cayman Islands Monetary Authority ("CIMA")
    Incorporation subject to Government approval?No unless is a “collective investment fund”Open-ended vehicles: yes
    Close-end vehicles: no
    Open-ended vehicles: yes, but exceptions.
    Close-end vehicles: no
    Local registered address required?YesYesYes
    Local directors required?YesNoNo
    Resident registered agent required?NoYesNo
    Resident manager required?YesNoNo
    Legal considerations
    Minimum number of directors required?• Unclassified and Expert Fund: 2
    • Unregulated Eligible Investor Fund: not regulated
    22
    Minimum number of resident directors required?• Unclassified and Expert Fund: 2
    • Unregulated Eligible Investor Fund: not regulated
    00
    Corporate directors allowed?YesYes, except for public fundsYes
    Individual directors allowed?YesYesYes
    Minimum number of managers required?• Unclassified Fund: 2
    • Expert Fund: 1
    • Unregulated Eligible Investor Fund: not regulated
    00
    Resident manager required?• Unclassified Fund: 2
    • Expert Fund: 0
    • Unregulated Eligible Investor Fund: not regulated
    00
    Must the managers have a license?• Unclassified Fund: no
    • Expert Fund: yes
    • Unregulated Eligible Investor Fund: not regulated
    YesNo
    Minimum number of representative required?010
    Minimum number of resident representative required?010
    Public register of shareholders and directorsYesNoNo
    Tax and accounting considerations
    Corporate tax payable000
    Audited financial statementsYesYesYes
    Local audit firm required?NoNoYes
    Annual tax return to be submittedYesYesYes
    Access to how many double tax treaties3120
    Withholding tax payable000
    Can the hedge fund hire expatriate staff in the country?YesYesYes
    Logistic considerations
    Can invoice/sign sales contracts with local clientsNoNoNo
    Can rent office premises in the countryNoNoNo
    Employment visa feesUS$3,950US$3,950US$3,950
    Average monthly salary in Hedge FundsUS$75,000US$75,000US$75,000
    English spoken rate94.6%75%95%
    Literacy rate (%)-98%99%
    Computer literacy rate (%)48.6%46.9%70.6%
    GDP per capitaUS$57,000US$42,300US$43,800
    Population (in million)95,73231,91253,737
    Unemployment rate1.7%8.7%4%
    Inflation rate (2013)3.7%2.2%1.2%
    Estimate of engagement costs
    Healy Consultants engagement feesUS$19,200US$19,200US$19,200
    Company secretary and legal registered office feesUS$2,700US$2,700US$2,700
    Estimate of Government registration feesUS$570 + US$1,624
    (applicable only to unclassified
    and Expert Funds)
    For Professional and Private Funds
    • under 50,000 shares: US$2,050
    • above 50,000 shares: US$2,800
    US$4,391
    Estimate of total outgoings in Year 1US$22,470US$23,950US$26,291
    Estimate of costs (pdf)

  • Offshore hedge fundsSingaporeLuxembourgAustralia
    Summary at a Glance
    Total hedge funds incorporation costs (excl. Government fees)US$44,700US$20,900US$20,900
    Subsequent renewal costsUS$16,450US$10,700US$10,338
    Types of fund• Registered Fund Management Companies (FMCs)
    • Licensed Accredited/Institutional FMCs
    • Licensed Retail FMCs
    • UCITS – Part I of 2002 (N/A)
    • UCIs – Part II of 2002 law
    • SIF Law → Hedge funds
    • Managed Investment Schemes
    • Registered v Unregistered
    How long to incorporate a hedge fund?1 week1 weekprocess
    How long to launch the hedge fund?4 months3 months4 months
    Do you visit the country for hedge fund incorporation?NoNoNo
    Minimum investmentUS$200,312US$167,888US$46,504
    Regulatory AuthorityMASCSSFASIC
    Incorporation subject to Government approval?NoNoNo
    Local registered address required?YesYesYes
    Local directors required?YesNoNo
    Resident registered agent required?NoYesNo
    Resident manager/representative required?YesNoNo
    Legal considerations
    Minimum number of directors required?21No
    Minimum number of resident directors required?1No for SIFNo
    Corporate directors allowed?YesYesYes
    Individual directors allowed?YesYesYes
    Minimum number of managers required?222
    Resident manager required?NoNoNo
    Must the managers have a license?YesYesYes
    Minimum number of representative required?21NA
    Minimum number of resident representative required?21NA
    Public register of shareholders and directorsYesYesYes
    Tax and accounting considerations
    Corporate tax payableNoNoNo
    Audited financial statementsYesYesYes
    Local audit firm required?NoYesNo
    Annual tax return to be submittedYesYesNo
    Access to how many double tax treaties696744
    Withholding tax payable15%20%
    (exempt for foreigners making <100,000 and UCIs)
    10%
    Can the hedge fund hire expatriate staff in the country?YesYesYes
    Logistic considerations
    Can invoice/sign sales contracts with local clientsYesYesYes
    Can rent office premises in the countryYesYes (to confirm)Yes
    Employment visa feesUS$2,950US$3,950US$3,950
    English spoken rate80%60%100%
    Literacy rate92.5%100%99%
    Computer literacy rate94.7%75%90%
    GDP per capitaUS$51,709US$57 billionUS$67,036
    Population5.3 million531,441 (<1 million)22.86 million
    Unemployment rate2.1%5.5%5.7%
    Inflation rate (2013)1.9%1.5%2.2%
    Estimate of engagement costs
    Healy Consultants engagement feesUS$42,000US$18,200US$18,200
    Company secretary and legal registered office feesUS$2,700US$2,700US$2,700
    Estimate of Government registration feesUS$2,000US$2,650US$2,650
    Estimate of total outgoings in Year 1US$46,700US$23,550US$23,550
    Draft Hedge Fund invoice

  • Offshore hedge fundsNew Zealand
    Unit trusts
    Mauritius
    (GBL1 - Global funds)
    Bahamas
    Summary at a Glance
    Estimate of total hedge funds set up costsUS$29,150US$21,900US$19,900
    Estimate of annual administrative costsUS$11,925US$15,475US$11,925
    Types of fund allowed• Unit trusts
    • Superannuation schemes
    • Local funds
    • Global funds
    • Professional fund
    • Standard Fund
    • Foreign fund
    • SMART fund
    How long to get Government license approval?1 week1 week1 week
    How long to get Government license approval?4 weeks4 weeks4 weeks
    How long to open a corporate bank account?3 weeks3 weeks3 weeks
    Minimum paid up share capitalUS$1US$1US$1
    Burden of regulatory complianceHighLowLow
    Does our Client need to travel?NoNoNo
    Minimum investmentNo• Manager: US$31,250
    • Administrator: US$15,625
    • Investor: US$100,000
    vary
    Regulatory AuthorityFinancial Market Authority (FMA)Financial Services Commission (FSC)Securities Commission of the Bahamas (SCB)
    Required to have local office premisesYesYesYes
    Required to hire local employeesNoNoNo
    Local registered address required?YesYesYes
    Local directors required?YesYesNo
    Resident custodian required?NoYesYes
    Resident manager required?NoYesYes
    Legal considerations
    Minimum number of directors required?122, subject to changes
    Minimum number of resident directors required?12No
    Corporate directors allowed?NoYesYes
    Individual directors allowed?YesYesYes
    Resident manager required?01, subject to exceptionsYes, subject to exceptions
    Must the managers have a license?YesYesYes
    Minimum number of representative required?12, one custodian and one local administrator1 custodian
    Minimum number of resident representative required?11, the manager. Subject to exceptionsNo
    Public register of shareholders and directorsYes--
    Tax and accounting considerations
    Corporate tax payable28%3No
    Audited financial statementsYesYesYes
    Local audit firm required?NoYesNo
    Annual tax return to be submittedYesYesYes
    Access to how many double tax treaties383830
    Withholding tax payableYesResident or non-resident investors in a resident fund: No
    Non-resident investing in a resident fund: 15%
    None
    Can the hedge fund hire expatriate staff in the country?YesYesYes
    Logistic considerations
    Can invoice/sign sales contracts with local clientsNoNoNo
    Can rent office premises in the countryYesYesYes
    Employment visa fees (US$)US$3,950US$3,950US$3,950
    Average monthly salary in Hedge Funds (US$)US$75,000US$75,000US$75,000
    English spoken rate98%1%98%
    Literacy rate (%)99%89%95.6%
    Computer literacy rate (%)88%95.6%57%
    GDP per capita (US$)US$40,884US$6,712US$30,959
    Population (in million)4.461.320.3
    Population (in million)6.7%8.2%13.7%
    Inflation rate (2013)1.1%3.5%2.5%
    Estimate of engagement costs
    Healy Consultants engagement feesUS$26,450US$19,200US$17,200
    Company secretary and legal registered office feesUS$2,700US$2,700US$2,700
    Estimate of Government registration feesUS$1,875US$4,400US$1,875
    Estimate of total outgoings in Year 1US$31,025US$26,300US$21,775
    Draft Hedge Fund invoice

Contact us

For additional information on our hedge funds services, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Seth Ochieng, directly:
client relationship officer - Seth