Key Features / Characteristics
Assumptions
CRITERIA | DETAILS | NOTES |
Investment Strategy | Equities, bonds, currency forwards, futures, options. Approximate lines of stock held at any one time: 50 – 70. Volume of trading: fifteen to twenty trades per week. Prices readily verifiable e.g. Bloomberg. | The investment strategy will have a bearing on Fund Administration costs and set-up fees. For example the more complex the strategy and higher volume of trading, the greater the costs. |
Number of Investors / Shareholders | Ten to twenty. | The greater number of investors will require more transfer agency work (aka shareholder dealing) which in turn will increase the Fund Administration fee. |
Net Asset Value Requirements | Monthly NAV calculation to include performance fee calculations. | The frequency of NAV will have an impact on Fund Administration fees, i.e. monthly NAVs will be more expensive than annual. |
Costs
NATURE OF EXPENSE | DETAILS | PRICE |
Directors Fees | An EIF must appoint two locally Licensed Directors to the Board of Directors. Fiduciary Fund Administration can provide suitably Licensed Directors either from our in-house resources or third party individuals. | The fee for provision of a Licensed EIF Director will be £6,000 per Director, per annum. |
Depositary | An open-ended EIF must have a depositary. The depositary may be outside of Gibraltar. | This will be in line with the selected custodian/depositary's scale of fees. |
Fund Administrator | An EIF must appoint a Gibraltar resident Collective Investment Scheme Administrator. It is possible to employ the services of a "foreign" fund administrator however certain conditions must be met. Further details can be provided upon request. | Based on assumptions given above, the annual cost of this service would be £15,000. (Additional costs are incurred due to the regulatory reporting required for an EIF.) |
Legal / Set-Up Fees | An EIF must produce an Offering Document and registration must be accompanied by legal opinion from a senior Gibraltar counsel. | Legal fees for production of an offering document and various other related tasks are likely to be in the region of £15,000 to £25,000. |
Reporting | An EIF is required to have an annual audit. | Audit fees will be in the region of £5,000 to £7,000 per annum. |
Company Secretary | Annual fee for this service will be £1,500. | |
Financial Services Commission (FSC) Costs | The application fee for an EIF is £2,500 and an annual fee of £840 is payable to the FSC. |
*ALL PRICING INDICATIVE AT TIME OF GOING TO PRINT.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.