BERMUDA INVESTMENT FUNDS – NON-POOLED PRODUCTS
Advantages of Bermuda <ul><li>As a “tax-neutral” jurisdiction, Bermuda is an ideal location to domicile a non-pooled inves...
Segregated Accounts Companies <ul><li>Segregated Accounts Company Act, 2000 </li></ul><ul><li>A single company is permitte...
Segregated Account Companies <ul><li>Accounts are not separate legal entities but are given statutory protection. No recou...
Segregated Accounts Company <ul><li>Advantages of SAC’s: </li></ul><ul><ul><li>Legislative framework for asset protection ...
Trusts <ul><li>Strong legal framework in Bermuda for trusts. </li></ul><ul><li>Bermuda  Trust (Special Provisions) Act , 1...
Trusts <ul><li>Advantages of trusts: </li></ul><ul><ul><li>Flexible structure </li></ul></ul><ul><ul><li>Asset protection ...
Questions? <ul><li>Note:  </li></ul><ul><li>While the information in this presentation is believed to be accurate, it is g...
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Bermuda: Investment Funds - Non-Pooled Products

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Bermuda: Investment Funds - Non-Pooled Products

  1. 1. BERMUDA INVESTMENT FUNDS – NON-POOLED PRODUCTS
  2. 2. Advantages of Bermuda <ul><li>As a “tax-neutral” jurisdiction, Bermuda is an ideal location to domicile a non-pooled investment fund for HNW’s. </li></ul><ul><li>The Bermuda government does not impose any: </li></ul><ul><ul><li>Income, corporations or profit tax </li></ul></ul><ul><ul><li>Capital Gains tax </li></ul></ul><ul><ul><li>Tax on dividends or interest </li></ul></ul><ul><ul><li>Withholding tax </li></ul></ul><ul><ul><li>Estate duty or inheritance tax on shareholders (other than Bermuda residents) </li></ul></ul><ul><ul><li>Exchange controls (for exempted companies) </li></ul></ul>
  3. 3. Segregated Accounts Companies <ul><li>Segregated Accounts Company Act, 2000 </li></ul><ul><li>A single company is permitted to create multiple “segregated accounts” in order to segregate the assets and liabilities attributable to a particular class or series of shares. </li></ul><ul><li>Assets and liabilities of each “account” held exclusively for the benefit of the account holder and counterparty linked to that account. </li></ul><ul><li>Avoids need to create separate companies. </li></ul>
  4. 4. Segregated Account Companies <ul><li>Accounts are not separate legal entities but are given statutory protection. No recourse to other accounts. </li></ul><ul><li>Each investor receives a separate class or series of shares reflecting their investment. </li></ul><ul><li>Investor places funds in a segregated account which are then invested in a tailored investment portfolio of underlying funds. </li></ul><ul><li>Administration and investment management typically outsourced to third party service providers. </li></ul>
  5. 5. Segregated Accounts Company <ul><li>Advantages of SAC’s: </li></ul><ul><ul><li>Legislative framework for asset protection </li></ul></ul><ul><ul><li>Strong foundation in corporate law –i.e. concept of “shares” is universally understood </li></ul></ul><ul><li>Disadvantages: </li></ul><ul><ul><li>Legal concept of a SAC is not well-known and not tested in the courts. </li></ul></ul><ul><ul><li>Distribution of shares must comply with local securities laws. </li></ul></ul>
  6. 6. Trusts <ul><li>Strong legal framework in Bermuda for trusts. </li></ul><ul><li>Bermuda Trust (Special Provisions) Act , 1989 provides asset protection to certain trusts – e.g. no “forced heirship”. </li></ul><ul><li>Can provide an ideal platform for a non-pooled investment product – master/feeder - trust/sub-trust structure </li></ul>
  7. 7. Trusts <ul><li>Advantages of trusts: </li></ul><ul><ul><li>Flexible structure </li></ul></ul><ul><ul><li>Asset protection – use of individual sub-trusts </li></ul></ul><ul><ul><li>Confidentiality – no public record </li></ul></ul><ul><li>Disadvantages: </li></ul><ul><ul><li>Trusts not well-understood in some countries – e.g. civil law jurisdictions </li></ul></ul><ul><ul><li>Investors don’t “own” anything - i.e. no shares issued </li></ul></ul>
  8. 8. Questions? <ul><li>Note: </li></ul><ul><li>While the information in this presentation is believed to be accurate, it is general in nature and should not be construed as legal advice. </li></ul><ul><ul><ul><ul><ul><li>Sarah Moule </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Appleby </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>1-441-298-3291 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>[email_address] </li></ul></ul></ul></ul></ul>

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