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BELIZE
MUTUAL FUNDS IN BELIZE REGISTRATION - LICENSING – ADMINISTRATION FEATURES AND FEES
MUTUAL FUNDS WHAT IS A MUTUAL FUND? A properly structured international financial services fund offers a number of features that distinguish it from a traditional mutual fund. The follow outlines these distinguishing features: A lower level of regulation makes it easier to establish and administer the funds. Consequently, formation and operating costs are significantly reduced. Lower costs means funds can be offered at zero or low load and with competitive management fees from the investor's point of view. Furthermore, greater flexibility is generally available, in terms of both fund structure and the investment portfolio. Tax exempt status in the offshore jurisdiction enables the fund to reinvest the amount of taxes on profits and gains that would otherwise be payable in high tax jurisdictions, without the need to obtain investment company of similar status. Therefore, taxes may be deferred until the investor receives a return on his investment. Tax advice should be sought in the jurisdictions of the sponsor/manager and each investor to determine any potential tax liability. No big back office operation is required, since all administration, execution and shareholder relations can be subcontracted out. Further, by having clients invest in a fund in which they buy and hold shares rather than, for example, a discretionary managed account, all of the contract notes, advices, statements and other client transaction paperwork may be dispensed with. Mutual funds provide a greater degree of liquidity than most types of investments. In most cases, investors may redeem their shares on any business day at the, then, current Net Asset Value (which can be more or less than the original purchase price). Shareholders typically have the option to reinvest fund dividends and capital gains distributions allowing the fund to purchase additional shares without any sales charge. ADVANTAGES OF A MUTUAL FUND Professional Management- Investment professionals actively manage mutual funds. In turn, portfolios are continually monitored and adapted to match the funds objectives. Diversification- Mutual funds invest in many different types of securities. Own a number of securities can provide an investor higher returns while reducing market volatility. Diversification is difficult for the average investor to achieve individually. Liquidity- Generally, shares in open-end mutual funds may be redeemed on any business day. Selling your mutual fund is simple. The transaction is usually complete within one business day. Tax-Minimization Advantages- Usually, international financial mutual funds are exempt from all income, capital gains, withholding and estate taxes. Prospective investors should consult a tax advisor about their particular situation. Confidentiality- With the absence of reporting regulations, international financial funds, generally provide confidentiality for investors. Our clientele can rely on our integrity, our professionalism and our commitment to confidentiality we exemplified in our decade in international financial services. Affordability- Investors can participate in mutual funds with a modest initial investment. A mutual fund portfolio costs a fraction of what it would cost to develop a diversified portfolio of stocks or bonds on your own. SETTING UP A MUTUAL FUND IN BELIZE Preparation of the investment plan; Note: Our role in setting up of a mutual fund would be in providing services associated in the setting up an international business company as the vehicle for the mutual fund as well as in assisting the client in obtaining the necessary licenses. THE MUTUAL FUND ACT OF 1999 As is defined under the Mutual Fund Act, the expression “carrying on business from within Belize” includes carrying on business outside of Belize from a place of business or from a registered office within Belize. For the purpose of “carrying on business as a mutual fund”, a manager or administrator, shall, if carrying on business anywhere outside of Belize, be deemed to be carrying on business from within Belize. A Public Mutual Fund is allowed to conduct business only after its official prospectus has been inspected by the Registrar of Mutual Funds for official recognition and registration. A public fund is further required by law to maintain a custodian for the day-to-day activities involved in the safekeeping of the fund property that is separate and apart from the activities of the Fund Manager and Administrator. The custodian’s role is to ensure that investors’ interests are protected by checking that the Manager’s actions are in line with the fund regulations and with the particulars of the investment scheme. A licensed trustee is often the custodian for the fund’s underlying property. PRIVATE, PUBLIC AND PROFESSIONAL MUTUAL FUNDS A Private Mutual Fund is prohibited from the offering up of its common stock for subscription by the general public. Consequently, this type of fund is limited only to private stock offerings after it has first applied for and received official recognition from the Registrar of Mutual Funds. Thereafter, it can commence its operations with a closed-end group of investors (less than fifty). Certain private funds are designed primarily to provide capital growth while others are intended to preserve capital. The Professional Mutual Fund is solely able to offer up its shares for subscription or purchase only to investment professionals. A professional investor is specified as being one whose ordinary business involves the acquisition/disposal of shares in an investment fund or who has a declared net worth of one million United States dollars. The initial investment in respect of each investor in a professional fund is a minimum of one hundred thousand United States dollars (US$100,000) or its equivalent in any currency as is designated by the mutual fund regulations. The professional fund must first receive official recognition from the Registrar of Mutual Funds before it can commence its business operations from Belize. ADMINISTRATORS, MANAGERS AND CUSTODIANS TAX EXEMPTION The following fee summary outlines the Government Fees, disbursements and other costs associated in setting up a mutual fund. FEE STRUCTURE:
Government/Registration Fees:
Optional Services:
For any further questions or matter you may discuss with us, please do not hesitate to contact us with your relevant questions.
OFFSHORE INCORPORATION SERVICES FREE CONSULTANCY
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