Hedge Fund Services
With its modern regime for establishing funds that is recognised by both fund managers and investors, Mauritius is commonly used for investment structuring into Asia and Africa. Funds set up in Mauritius enjoy a low tax regime and have access to its network of double tax treaties.
Global Funds are licensed as GBC1s, where public funds are pooled for the collective investment by fund and investment managers. Structured as a company, a trust, a protected cell company or in any other legal form as approved by the FSC, Global Funds can take the form of either a Collective Investment Scheme (CIS) with a variable share capital, or a Closed-end Fund (CEF) with a fixed share capital.
There are five types of CIS:
- Fully Regulated CIS – largely offered to the public and commonly do not hold a GBC licence
- Regulated Global Scheme – authorised by the Financial Services Commission (FSC), with a GBC1 licence, and may be regulated in another jurisdiction
- Professional CIS – offer shares to sophisticated investors or by way of a private placement
- Specialised CIS – invest in real estate, derivatives, commodities or other products authorised by the FSC
- Expert Fund – a CIS can apply to be authorised by the FSC if the scheme is only available to expert investors, who make a minimum initial investment of not less than USD100,000 or qualify as sophisticated investors
Fully Regulated CIS and Regulated Global Schemes are required to have a prescribed prospectus detailing a minimum amount of subscription. At least 5% of the total amount must be raised within 6 months or risk being returned to the investors. Professional CIS, Specialised CIS and Expert Funds need only an offering document in order to be licensed by the FSC.
A Protected Cell Company (PCC) enables a GBC 1 to have one or more cells. It permits the flexibility to divide the assets into various cells with the objective of protecting the assets of one cell against the failure of another cell.
The option of limited partnerships are the vehicle of choice for fund structures in many foreign jurisdictions and are significant to the funds industry in Mauritius. Being more more flexible than companies, Limited partnerships may therefore be more attractive to investment vehicles such as hedge funds, private equity funds and joint ventures.
The Stock Exchange of Mauritius (SEM) previously catered only for investment companies, unit trusts and open-ended funds. In 2010 the listing regulations were amended to include regulated global schemes, professional CIS, specialised CIS, expert funds and CEFs.
Our Service offerings includes fund accounting and net asset value calculations, investor relations services, anti-money laundering compliance, corporate & legal services, and various other ad-hoc services such as tax reporting and financial statement preparation. Osiris’s accountancy software offers an extensive suite of reports to provide clients with the tools they need to operate efficiently and effectively.
Experienced accounting and investor services professionals, coupled with leading technologies which are deployed in an innovative manner, are at the core of our ability to deliver superior fund administration solutions.
Osiris will assist in the decision making process with regards a suitable jurisdiction and structure.
We have an existing list of functionaries and preferred suppliers, however, we are certainly able to embrace new relationships with client specified suppliers and functionaries. Our dedicated back office will ensure that relationships are put in place efficiently and timeously.
Osiris, along with customer input, will oversee the following:
- Registration of structure
- Drafting of prospectus / offering memorandum / memorandum and articles of association
- Full Secretarial function, including providing directors and active management where required
- Appointment of Key Role Players and Service Providers including bankers, legal advisors, auditors, custodians, brokers and managers
- Drafting of all necessary interparty agreements
- Due diligence
- Financial Services Approval Process
- Obtaining Listing Approval (as needed)
Ongoing Fund Accounting
- Reconcile cash, trade positions, and total equity to prime broker statements (where traditional prime brokers or custodians are utilised)
- Provide monthly final RORs/NAVs reporting and P&L
- Calculate management fees and incentive allocations
- Price portfolio in accordance with the Fund’s offering memorandum
- Review and disburse distributions and expenditures for legal fees, accounting fees and any other third party fees
- Prepare investor statements
- Prepare monthly economic distributions, by investor
- Maintain accounting books and records
- Assist auditors with annual audit
- Ensure adherence to accounting policies and procedures
- Maintain investor registers along with all statutory registrars
- Communicate with investors, as directed;
- Publish and/or furnish RORs/NAVs, as directed
- Accept new subscriptions and process redemptions
- Take other necessary and reasonable actions for the administration of the fund
- Attend to all statutory filings and disburse payments in connection with Regulatory adherence
- Maintain minute books
- Maintain principal corporate records
- All compliance in line with Osiris’s compliance manual overseen by our compliance officer.
- Anti-money laundering ; know your client (KYC) and similar work will be detailed upon request only