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Advantages of Anguilla mutual funds
A mutual fund as defined by the Act means a company incorporated, a partnership formed, a unit trust organized or other similar body formed under the laws of Anguilla of any other jurisdiction that collects and pools investor monies for the purpose of investing collectively. The fund must also issue shares that entitle the holder of those shares to receive on demand or within a specified period after demand an amount calculated by reference to the value of a proportionate interest in the whole or in a part of the net assets of the company, partnership, the unit trust or similar body. The definition of a mutual fund includes an umbrella fund whose shares are split into a number of different class funds or sub-funds. The definition also includes a fund that has single investor which is a mutual fund not registered or recognized under this Act.
Which type of mutual funds are provided for under the Act?
- Public fund. The Act defines a public fund as a fund that is not a private or professional fund. In practical terms a public fund is one that offers shares in the entity used to form it to the general public through the issuance of a prospectus. A prospectus is a document which purpose is to make an invitation to the public or any section to subscribe for or purchase shares issued by a public fund. A public fund must issue a prospectus.
- Private fund. The private fund is constituted of no more than 99 investors. The constitutional documents must state this. The fund must not make any invitations to the public to subscribe for or purchase shares issued by the fund.
- Professional fund A professional fund is a fund, the shares of which are made available only to professional investors and the initial investment in which, in respect of each of the persons constituting a majority of such investors, is not less than US$100,000 or its equivalent in another currency. This minimum initial investment shall not apply in respect of an investment made by the manager, administrator, promoter or underwriter of the professional fund. A professional investor means a person whose ordinary business involves dealing in investments or who has signed a declaration that he, whether individually or jointly with his spouse, has a net worth in excess of US$1 million or its equivalent in any other currency and that he consents to being treated as a professional investor.