In addition to stand alone funds, Maltese Law allows promoters to set up 'umbrella' or 'multi fund' company whereby the share capital may be divided into different classes of shares and where one class or group of classes of shares constitute a distinct sub-fund of the company. In this way, the scheme may operate a number of separate sub funds each having investment objectives, strategies and policies. The advantages of such a structure are the following:

  • Separate distinct personality
    Assets and liabilities of each sub fund are treated as a patrimony separate from the assets and liabilities of each other sub fund of the company
  • Varying dividends payments
    The investors in each investment sub fund will benefit from varying dividend returns depending upon the performance of each particular sub fund
  • Wide variety of strategies and business models
    Each sub fund can have its own investment strategy without affecting the performance and outcome of the other sub funds
  • Wider pool of assets to invest in
    The minimum threshold is applicable on a per scheme basis rather than per sub fund basis. Effectively this means that an investor investing the minimum threshold can spread his investment across a number of sub funds as opposed to just one fund as is the case when investing in a stand alone fund
  • Separate ISIN and NAV
    Each sub fund will have its own ISIN which can enable the investors to trace and monitor the performance of each individual sub fund. Each sub fund will also have its own net asset value calculated in line with its offering supplement
  • Set up and Operational costs
    The cost of setting up and managing a sub fund is relatively lower than that of a stand alone fund because the costs will be shared amongst all the sub funds
  • Timeframes
    The time to set up a sub fund is generally six weeks which is less than the forteen week period generally required to set up a stand alone fund.

 

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SVR9035, Malta

Tel: +356 2779 0100
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Email: info@alleybe.com
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